Zollverein: German for ‘customs union’. Established in 1834 under Prussian leadership; was created as a free-trade area throughout much of Germany and is often seen as an important step in German reunification. ________________________________________________________________________
Commercial Union
As of 1887, Canada had been suffering and not only in terms of trade and immigration.(1) The prices of Canadian goods kept plummeting and the “home markets had not expanded with the increase of manufacturing establishments”.(1) The French were outraged by the execution of Louis Riel and Canadians (with the exception of Quebec) disagreed with the separation of French and English in schools.(1) This is why commercial union with the United States began increasing in Canada in 1887; most prominently in Ontario.(1) Many were opposed to commercial union while others fought bravely for it.(1) Yet, it was through compromise that commercial union with the United States became a reciprocity policy through which Canada prospered.(1)
Earlier, Congressman Butterworth of Ohio submitted a bill to Washington’s House of Representatives, stating Zollverein should reach a settlement between Canada and the United States.(1) During all of the discourses, a Canadian by birth living in New York named Eratus Wiman, went to great lengths to forge an alliance.(1) Mr. Wiman fought valiantly for Congressman Butterworth’s bill and regularly came to Canada to discuss the possibility of a commercial union.(1) As well, in Canada, one Goldwin Smith was the first to become active in the discussions.(1) Being the charismatic writer that he was, Mr. Smith was able to press upon Canadians many “unpopular opinions”.(1) Moreover, those in favor of commercial union had one of Canada’s most influential newspapers on their side.(1) With the Toronto Mail supporting commercial union, a commercial Union League was created with Mr. Smith acting as president.(1)
Firstly, the Commercial Union League targeted agricultural communities; namely the Farmers’ Institutes.(1) This prompted Mr. Wiman to present a manifesto to the representatives of these institutes, declaring the abolition of US-Canada trade restriction, either by reciprocity or commercial union.(1) Gaining tremendous success from the farmers showed definite support for commercial union.(1)
Next, fisheries became the great dispute.(1) The Toronto Mail stressed the need for a custom union for fisheries.(1) There was an ebbing fear that even though commercial union would greatly benefit Canada, it would sever ties with Britain.(1) The Mail goes on to say how an adjustment would assist in commercial relations with the United States and Britain on the basis of Zollverein.(1)
Furthermore, the proposal was brought before the Toronto Board of Trade and debated upon quite frequently.(1) Henry W. Darling, president of the Toronto Board of Trade, encouraged the debates and pushed so that the Board accepted a resolution that said if: “a commercial treaty, creditable and advantageous alike to both parties, could be framed in such a spirit of fairness as would afford the best guarantee for its perpetuity; but that, while in favour of all laudable means to serve an end so much desired, the Board must disapprove of any proposal to discriminate against Great Britain.”(1)
Mr. Darling furthermore pointed out that a Zollverein would also benefit Britain, since a commercial union would open up the market to England as well.(1) He also stated, that this was to be a commercial, not a political union.(1) The Commercial Union League added: “our national honour [is not] threatened any more than our loyalty to Great Britain.(1) Every nation in making a commercial treaty or agreement of any kind must resign to that extent, and for so long a time as the treaty lasts, its control over its own tariff.(1) Great Britain herself does this when she makes a commercial treaty with France… Canada did it when she made with the United States the Reciprocal Treaty of 1854.”(2)
Yet, through all the praise for commercial union, there were a few key political figures that were opposed to it.(1) Mr. Blake, for one, refused to make commercial union a policy of the Liberal party and Wilfrid Laurier, leader of the Liberal party, clearly stated his distaste for commercial union with the United States, preferring a trade alliance with Great Britain.(1) Mr. Edgar M.P, disputed reciprocity of tariffs between Canada and the United States could be carried on without ending our customhouses.(1) He further designated that under the Elgin Treaty of 1854, Canada and the United States traded with each other often and Canada was not forced to take up American custom duties.(1) He went on to indicate that some articles were “mutually admitted free of duty” thus passing through the boarder as free goods.(1)
As it turns out, at the Interprovincial Conference in the autumn of 1887, leaders agreed upon a declaration in favour of free trade with the United States and Mr. Butterworth’s bill made no headway in Congress.(1) Mr. Wiman still went around Canada, preaching the ways of commercial union, yet by this time, the policy of unrestricted reciprocity was irrevocably adopted.(1) In the end, Liberal leaders took up the task of educating the country to acceptance of the proposition or reciprocity in which Mr. Laurier was predominantly active, and Canada prospered from trade with the United States as well as Great Britain, without, proverbially, stepping on any toes.(1)
Foot Notes
(1) Willison, John, Sir. Sir Wilfrid Laurier and the Liberal Party: A Political History.
London: J. Murray, 1903; pg. 119-150.
(2) See Toronto Globe and Mail, February 14th, 1891.
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