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traders from the American territory, by every species of vexation; and they must soon succeed, if His Majesty's Government does not take up their cause with decision; for it was with feelings of a very unpleasant kind, that they found the negociators with America appointed under the late Ministry, postpone the discussion of their grievances (although fully represented) to an indefinite period, without any stipulation for the cessation of those fiscal extortions under which they were and are in the meantime suffering.

The Memorialists, therefore, take the liberty of impressing upon Your Excellency's attention, for the information of His Majesty's Ministers, the following considerations:

That the Indian trade within the American Limits must speedily be abandoned by British subjects, if not protected against interruptions of free navigation of the Lakes, fiscal extortions and various other vexations: that if once abandoned, it can never be regained and with its abandonment, will finish British influence with the Indian Nations residing within the limits of Canada: that British Traders have materially aided in preserving that influence hitherto, the conviction of which is the strong motive with the American Government for wishing, by every means they can devise, to exclude such traders.

If therefore, the minds of His Majesty's Ministers shall be made up to the loss of that portion of Indian Trade carried on within the American territory (which indeed is nearly the whole, except the North West) and to the extinction of influence amongst the Indian Tribes, as aforesaid, then, in such case, it will only be necessary to obtain reimbursements to British Traders of past fiscal extortions and indemnity for the losses and damages consequent upon the late seizure of the property of the Michilimackinac Company, as also a consideration for the abandonment of their Establishment in the Indian Country.

But if His Majesty's Government shall consider such trade and influence as fit to be preserved, that can only be done by obtaining reimbursement and indemnity forthwith, in respect to the past, and assurance of exemption from impositions and vexations in future.

And further, the memorialists are of opinion that if British traders do not obtain the right of going to the West side of the Mississippi, to trade as heretofore (the exclusion from which the Americans are now rigidly enforcing, upon pretext of that country not being comprehended in the treaty of 1794) they must, in any

event, soon abandon the trade to the East of the Mississippi as an object not worth pursuing.

The Memorialists consider it proper to add, that they are able to substantiate the various facts herein set forth; they therefore, most respectfully entreat Your Excellency to lay their complaint and observations before His Majesty's Ministers that such measures may be adopted as in their wisdom shall seem meet for obtaining the needful redress in the premises.

And they will ever pray &c.

MONTREAL, 20th Oct. 1808.

FORSYTH, RICHARDSON & Co.
MCTAVISH, MCGILLIVRAY & Co.
JAMES & A. MCGILL & Co.
PARKER, GERRARD OGILVIE & Co.

Estimate of the Loading of eight Batteaux or Boats the property of the Michilimackinac Company seized on the waters of Lake Ontario and in the entrance of Niagara River by John Lees Collector of the American Customs of the Port of Niagara on the 21st May 1808, with the various Expences and Damages incurred in consequence of the said seizure.

Prime cost and charges at Montreal of the Goods... Expence of these Boats including men's wages, provisions, &c....

Expences incurred by desertion of men in consequence of the seizure; men, wages to replace, deserters, provisions, &c..-.

Expenses incurred by Messrs. Michaels and Nicholl on their mission to Washington, and Mr. Bleakley to Niagara. ---

Injury sustained by the seizure in derangement of the trade, vizt:

Our business was at a stand for a considerable time, not knowing whether the rest of the boats might not meet the same fate; the progress of our affairs was thereby arrested at St. Joseph's, and the whole of the goods to make out our outfits eventually dis-assorted, which were in consequence made very deficient and incomplete,

£ S. D. 5218. 11. 5

826.

6

570. 13. 7

225.

more particularly with respect to guns, gunpowder, & Blankets, Articles indispensible in our trade; from this circumstance resulted many doubts in the minds of the people in general, and particularly the Indians, with respect to our rights within the American Jurisdiction, threw a damp on our credit, in the country & led to the most injurious consequences_.

MONTREAL, 20th Octr. 1808.

£ 8. D.

20. -.

Sterling £26,842 - 5 - 6

F. R. & Co.

McT., McG. & Co.
J. & A. McG. & Co.

P., G., O. & Co.

[Q 130-2, p 238]

[No. 37.]

MY LORD,

SIR JAMES H. CRAIG, K. B., TO LORD CASTLEREAGH.

QUEBEC, 29th October 1808.

I have the honor herewith to transmit to Your Lordship a copy of a Memorial which I have recently received from the Merchants of Montreal who are concerned in the Trade with the Indians within the Territory of the United States. I understand the subject of this memorial to be of great importance to the Trade carried on by these Gentlemen with the value of which Your Lordship is too well acquainted for it to be necessary that I should enlarge upon it. Having already had occasion to write to Mr. Erskine, His Majesty's Minister at Washington on the same subject, I inclose also copies of my Letters to him respecting it. I have the honor to be

My Lord

Your Lordship's

most obedient

humble Servant

J. H. CRAIG.

The Rt. Honble Lord Castlereagh, &c. &c. &c.

Endorsed: Lower Canada, 29th. Octobr. 1808.

Sir James Craig. No. 37.

R. 5th Decemr. (Three Inclosures.)

*For Letters see pages 241, 248.

LETTER TO SIR JAMES H. Craig, K. B.

[No. 19.]

DOWNING STREET, 8th April 1809.

To Gen. Sir J. H. Craig, K. B., &c. &c. &c.
SIR,

I have written to you a separate Dispatch recommending to you to investigate the circumstances of the Indians Inhabiting or frequenting Upper or Lower Canada, I am to advert to your Letter on the subject of the Indian Tribes as viewed in a political Light. Under an undefined Relation with the United States of America I entirely concur in your position, that attention must be kept up to conciliate the Indian Tribes upon the following principle, that if in a contest they are not employed to act with us they will be engaged to act against us; and we are to consider, not so much their use as allies as their destructiveness of Enemies.

I shall therefore be ready to support the temporary arrangements you may find it necessary to make in this view.

Should an amicable adjustment take place with the American States it is possible that some joint system as to the treatment of the Indian Nations may be agreed upon which would form the basis of a permanent arrangement with them.

Whilst you remain in the Government of Lower Canada and Lieutenant Governor Gore acts so perfectly in concert with your suggestions, there does not seem any immediate necessity for altering the system for paying the expences of the Indian Department, tho I agree with you in considering that the vesting the controul of that Dept. in the Civil Administration and making the payment of it flow from the Military Chest is liable to much objection. I wish however to defer any alteration of system till I receive a more detailed statement respecting the Indian Tribes, the nature & extent of assistance which is proper to be afforded them and the manner in which that assistance should be given and the Department conducted.

In the meantime I am to express His Majesty's approbation of your reappointing Mr. Elliott for the reasons you have stated to succeed Captain McKee and of allowing Captain McKee to receive till further orders, his allowance at the Rate of Ten Shillings a day.

Endorsed: Dft.

To General Sir J. H. Craig, K. B., &c. &c. &c. No. 19. April 1809.

[Q 109, p 99]

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MEMORANDA OF THE COMMITTEE OF TRADE AT MONTREAL.

[No. 2.]

Memorandum of Points, wherein Canada has an Interest which may come into discussion in the approaching Negociation with the United States of America and which are most respectfully submitted to the consideration of His Majesty's Minister Plenipotentiary.

That vessels belonging to the United States should as heretofore be entirely prohibited from entering the River St Lawrence by Sea, or departing therefrom. As upon the continuance of this prohibition or exclusion, essentially depends the importance of the Canadas to the Mother Country. On no account (even by the offer of any equivalent) should this principle of vital Interest to these Colonies be departed from else the consequences will be most serious. Upon this point attempts will be made to obtain concessions, which are the more necessary to be guarded against at the very threshold of the negociation, if introduced because an able pamphlet appeared about two years ago, written by a well informed American Gentleman, recommending that the free navigation of the River St Lawrence to, and from the Sea, should be insisted upon, as a sine qua non, in the case of a future Treaty, by reason of the immense quantities of Lumber, Potash, Pork, Wheat, Flour, and probably of Hemp, which the settlements daily forming by the American People on the borders of Lake Champlain, and on the banks of the St Lawrence, to the South of the Boundary Line of 45 Degrees north Latitude, are capable of producing, and which they would wish to carry to a market in their own shipping.

The reasons adduced for such a wish on the part of the States, are precisely those which should operate with us for rigidly excluding their navigation by that River to and from the Sea, and of permitting none to the north of the Line of 45, but such as is allowed by the treaty of 1794 to American Vessels between Montreal and Quebec under such regulations as it may be found necessary to adopt to prevent illicit trade.

This Indulgence coupled with the practical admission to entry, of American produce conveyed in British Bottoms from Canada to British and Colonial ports, upon the same scale of duties as if the actual produce of Canada is sufficiently liberal and ought not to be extended further, even if they were to offer a free trade to all the Indian Country, within their territory as hereinafter more particularly remarked upon. Indeed such Indulgence, and such admission

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