"We must now briefly sketch the history of the discussions and events which more immediately preceded the notice of the 17th March, 1865, given by the United States Government and Senate, to put an end to the treaty. Subsequent to the treaty (1854) Great Britain (1859) founded the Colonies of British Columbia and Vancouver's Island on the North Pacific. For this we are indebted to the then colonial minister, Sir E. Bulwer Lytton. The first gave a new gold field; the second contains all the bituminous coal to be found on the west side of the great North American Continent. These new countries were not embraced in the operation of the treaty; nor does it seem that after Sir E. Bulwer Lytton left office, any effort was made to enlarge the operations of the treaty. But of course American commerce was anxious to extend itself, and Californian and American cruisers in the Pacific wanted the coal of Vancouver. Hence a party in the States was formed for an extension of the area of the treaty. Then Canada, having established her railway system by the aid of British capital, and having expended large sums to promote public works generally, got into debt and had to raise her taxation; and as import duties are, and must always be, most easy of collection in a new country, and the most popular, or rather the least unpopular, mode of taxation, she raised her import duties generally to a scale as high on many articles, if not higher, than the import duties of the United States. This led to complaint; and hence a party was formed in the United States for an extension of the 'free list,' or list of articles to be admitted duty free into Canada. It is but fair to bear in mind that the Canadian import duties on United States goods were the same as those on _British_ goods; so that whatever ground of complaint might be set up, Great Britain had the right to the largest share of it, because she had the ocean freights to add to the duty, and _pro tanto_ was at a disadvantage in competing for Canadian custom with the manufacturers of the States. "In 1861 the Chamber of Commerce of New York moved Congress on the whole subject. Their object was the extension of the area and purposes of the treaty: in no sense its termination. Congress, hereupon, referred the matter to the 'Committee on Commerce,' Mr. Ward being chairman. That committee reported in February, 1862, in a most able document, usually known as Mr. Ward's report. This report also recommended a more extended area, and _more_ extended purposes; but in no sense the abrogation of the treaty.