(Continued from first page.)

p. 451; Cong. Globe, 1864-65 second session, part 1; Canadian Monthly, XVIII, part 1.

I. A Customs Union would be detrimental to the national finances. (a) It will decrease the revenue. (b) It will increase smuggling.

II. A Customs Union would be inconvenient in case of war. (a) It would leave the frontier in a bad condition. (b) An immediate increase of revenue would be impossible.

III. A Customs Union would be economically harmful. (a) American and Canadian products are not supplementary but competitory. (b) Cheaper wages and cheaper raw material would be an inducement for our capital to move to Canada. (c) The result would be lower wages for the American.

IV. A Customs Union is undesirable from a Canadian standpoint. Canadan is industrially far behind the United States. A tariff policy framed by the larger and more powerful nation would necessarily be unfit for the weaker.