the practicability of arranging a reciprocity treaty with the Dominion of Canada is clearly stated in the letter of Mr. Blaine, and was anticipated, I think, by him and by every other thoughtful American who had considered the subject.  A reciprocity treaty limited to the exchange of natural products would have been such only in form.  The benefits of such a treaty would have inured almost wholly to Canada.  Previous experiments on this line had been unsatisfactory to this Government.  A treaty that should be reciprocal in fact and of mutual advantages must necessarily have embraced an important list of manufactured articles and have secured to the United States a free or favored introduction of these articles into Canada as against the world; but it was not believed that the Canadian ministry was ready to propose or assent to such an arrangement.  The conclusion of the Canadian commissioners is stated in the report of Mr. Blaine as follows: 

In the second place, it seemed to be impossible for the Canadian government, in view of its present political relations and obligations, to extend to American goods a preferential treatment over those of other countries.  As Canada was a part of the British Empire, they did not consider it competent for the Dominion government to enter into any commercial arrangement with the United States from the benefits of which Great Britain and its colonies should be excluded.

It is not for this Government to argue against this announcement of Canadian official opinion.  It must be accepted, however, I think, as the statement of a condition which places an insuperable barrier in the way of the attainment of that large and beneficial intercourse and reciprocal trade which might otherwise be developed between the United States and the Dominion.

It will be noticed that Mr. Blaine reports as one of the results of the conference “an informal engagement to repeal and abandon the drawback of 18 cents a ton given to wheat (grain) that is carried through to Montreal and shipped therefrom to Europe.  By the American railways running from Ogdensburg and Oswego and other American ports the shippers paid the full 20 cents a ton, while in effect those by the way of Montreal pay only 2 cents.  It was understood that the Canadian commissioners, who were all three members of the cabinet, would see to the withdrawal of this discrimination.”

From the report of the recent conference by Mr. Foster it will be seen that the Canadian commissioners declare that this statement does not conform to their understanding, and that the only assurance they had intended to give was that the complaint of the Government of the United States should be taken into consideration by the Canadian ministry on their return to Ottawa.  Mr. Foster, who was present at the first conference, confirms the statements of Mr. Blaine.  While this misunderstanding is unfortunate, the more serious phase of the situation