By far the greater part of the trade to the lakes is at present centered at Montreal; for the British merchants not only can convey their goods from thence to the lakes for one third less than what it costs to convey the same goods thither from New York, but they can likewise afford to sell them, in the first instance, considerably cheaper than the merchants of the United States. The duties paid on the importation into Canada of refined sugar, spirits, wine, and coffee, are considerably less than those paid on the importation of the same commodities into the United States; and all British hardware, and dry goods in general, are admitted duty free into Canada, whereas, in the United States, they are chargeable, on importation from Europe, with a duty of fifteen per cent. on the value. To attempt to levy duties on foreign manufactures sent into the states from Canada would be an idle attempt, as from the great extent of their frontier, and its contiguity to Canada, it would at all times be an easy matter to send the goods clandestinely into them, in order to avoid the duties. The trade carried on from Montreal to the lakes is at present very considerable, and increasing every year. Already are there extensive settlements on the British side of Lake Ontario, at Niagara, at Toronto, at the Bay of Canti, and at Kingston, which contain nearly twenty thousand inhabitants; and on the opposite shore, the people of the states are pushing forward their settlements with the utmost vigour. On Lake Erie, and along Detroit River also, the settlements are increasing with astonishing rapidity, both on the British and on the opposite side. [Sidenote: MONTREAL.] The importance of the back country trade, and the trade to the lakes is in fact the back country trade, has already been demonstrated; and it has been shewn, that every seaport town in the United States has increased in size in proportion to the quantum it enjoyed of this trade; and that those towns most conveniently situated for carrying it on, were those that had the greatest share of it; as, therefore, the shores of the lake increase in population, and of course as the demand for European manufactures increases amongst the inhabitants, we may expect to see Montreal, which of all the sea-ports in North America is the most conveniently situated for supplying them with such manufactures, increase proportionably in size; and as the extent of back country it is connected with, by means of water, is as great, and also as fertile as that with which any of the large towns of the United States are connected, it is not improbable but that Montreal at a future day will rival in wealth and in size the greatest of the cities on the continent of North America. ------------------------------------------------------------------------ _LETTER _ XXX.