Another wise measure for which Baldwin deserves no little praise is the Municipal Corporations Act. The title has a dry, legal look, and will suggest little or nothing to the general reader except, possibly, red tape. Moreover, the system by which the subdivisions of the country—the county, the township, the incorporated village—govern themselves seems so obvious and works so smoothly in actual practice that it seems part of the order of nature, and must have existed from the time beyond which the memory of man runneth not to the contrary. But the present extended system of home rule in Canada did not descend from heaven complete, like the Twelve Tables. It was a gradual growth, or evolution, from the old system, by which the local justices of the peace, sitting in quarter sessions, assessed the local taxes, with the difference that it was not an unconscious growth. The plant set by Sydenham's hand was tended, cultivated, and brought to maturity by Baldwin. The measure, as it became law in 1849, has proved to be of the greatest practical value; it has won the approval of competent critics; and it has served as a model for the organization of other provinces. Commonplace and humdrum as this measure may seem to Canadians in the actual domestic working of it, there are other parts of the Empire—Ireland, for example—which were to lag long behind. The lack of such privileges is a grievance elsewhere. Even to-day, the rural districts of England have not as extensive powers of self-government as the counties of Ontario. If the farmers of the Tenth Concession had to go to Ottawa and see a bill through the House every time they wanted a new school, if they had months of waiting for proper authorization, not to mention expenses of legislation to meet, they might appreciate more keenly the advantages they enjoy in virtue of this forgotten Act of 1849. The lover of the picturesque will not regret that terms with the historic colour of 'reeve' and 'warden' were made part and parcel of a democratic system in the New World.
It was a session of constructive statesmanship. The judicial system of the province needed to be revised, extended, and simplified; and these things were done. The economic condition of Canada was anything but satisfactory. For years the country had 'enjoyed a preference' in the British markets, in accordance with the old, plausible theory that mother country and colony were best held together by trade arrangements of mutual advantage, by which the colony should supply the mother country with raw material and the mother country should supply the colony with manufactured products. Suddenly all Canada's business was dislocated by Peel's adoption of free trade in 1846. In consequence Canada had no longer any advantage in the British market over the rest of the world, and Canadian timber-merchants and grain-growers had an undoubted grievance. The general commercial depression, which had set in at the time of the rebellions, became worse and worse. Lord Elgin's often-quoted words picture the deplorable state of the country: 'Property in most of the Canadian towns, and more especially in the capital, has fallen fifty per cent in value within the last three years. Three-fourths of the commercial men are bankrupt, owing to free trade; a large proportion of the exportable produce of Canada is obliged to seek a market in the United States. It pays a duty of twenty per cent on the frontier. How long can such a state of things be expected to endure?' For a remedy the active mind of Hincks turned to the obvious alternative of the British market, the natural market just across the line; and he opened up negotiations with the United States looking towards reciprocal trade. He could scarcely obtain a hearing. The way was blocked by the complete indifference of the United States Senate towards the whole project. Not until five years later did relief come; and it came through the initiative and personal diplomacy of Lord Elgin. To him belongs the credit for the famous Reciprocity Treaty of 1854. This signifies that for the twelve years during which the treaty was in force the artificial barriers to the currents of trade between adjacent countries were, to a large extent, removed, certainly to the great advantage of all British North America. It was a unique period in Canadian history. Never before had the trade relations between Canada and the United States been so friendly, and never have they been so friendly since.
In another great enterprise of national importance Hincks was more successful. The forties of the nineteenth century saw the first great era of railway building. This novel method of transportation was perceived to have immense undeveloped possibilities. In Britain, where steam traction was invented, companies were formed by the score and lines were projected in every direction. It was a time of wild speculation, in which emerged for the first time the new type of company promoter. From England the rage for railways spread to the Continent and to America. While Hincks was working at the problem in Canada, Howe was working at it in Nova Scotia. To link the East with the West, Montreal with Toronto, Montreal with the Atlantic seaboard, Montreal with the Lake Champlain waterways to the southward, was the general design of the first Canadian railways. It was in this period that the first sections were built of those Canadian lines which, in half a century, have grown into immense systems radiating across the continent. Hincks's idea was to aid private enterprise by government guarantees of the interest on half the cost of construction. Canada is now laced with iron roads from ocean to ocean. The man who laid the foundation of these immense systems in the day of small beginnings should never be forgotten.
So the busy session went on, until a measure was introduced which aroused a storm of opposition, threatened a renewal of civil war, and tested the principle of responsible government almost to the breaking strain. This was the Act of Indemnification, a part of the bitter aftermath of the rebellion twelve years before.
War, even on the smallest scale, means the destruction of property. In the troubles of '37 buildings were burned down in the course of military operations. For example, good Father Paquin of St Eustache had long to mourn the loss of his church and the adjoining school. As it stood on a point of land at the junction of two streams and was strongly built of stone, it was an excellent place of defence against the attack of Colborne's troops. On the fatal fourteenth of December 1837 it was stoutly held by Chenier and his men, until two British officers broke into the sacristy and overset the stove. Soon the fire drove the garrison out of the building, which was destroyed along with the new school-house near by. His parishioners were loyal, Father Paquin contended in a well-reasoned petition; it was not they but the discontented people of Grand Brulé who had seized the town; yet the result was ruin. In the affair of Odelltown in 1838 a citizen's barn was burnt down by orders of the British officer commanding because it gave shelter to the rebels. Near St Eustache the Swiss adventurer and leader of the rebels, Amury Girod, took possession of a farm belonging to a loyal Scottish family. His men cut down the trees about the farm-house, fortified it rudely, and lived in it at rack and manger until Colborne came to St Eustache. These were typical cases of loss, and surely, when order was again restored, they were cases for compensation. The loyal and the innocent should not have to suffer in their goods for their innocence and their loyalty.
Claims for compensation were made early. In the very year of the rebellion the Assembly of Upper Canada passed an Act appointing commissioners to inquire into the amount of damage done to the property of loyal citizens; and in the following year it voted a sum of £4000 to make good the losses. Men were paid for a cow driven off, or for an old musket commandeered. The Special Council of Lower Canada made similar provision, as was only natural and right; but its task was much harder than that of the Assembly's. Clearly, the property of loyalists destroyed or injured during the civil strife should be made good. This was mere justice. It was equally clear that the property of open rebels which had been destroyed or injured should not be made good. But there was a third category not so easy to deal with. There were those who were not openly in rebellion, but who were grievously suspect of sympathy with declared insurgents of their own race and religion. How far sympathy might have become aid and comfort to opponents of the government was hard to say. The village of St Eustache, for example, was set on fire the night following the fight; the troops turned out in the bitter cold to fight the fire, but did not master it until some eighty houses were burned. What claim could the owners have upon the government for their losses? In the winter of 1838 the sky was red with the flames of burning hamlets, says the Montreal Herald.
The law's delay is proverbial. Compensatory legislation dragged its slow length along for years, and the loyalists who had suffered in their pocket saw session after session pass, and their claims still unsatisfied. In 1840 the Assembly of Upper Canada passed an Act authorizing the expenditure not of four thousand, but of forty thousand pounds, to indemnify the loyalists who had lost by the 'troubles.' However, as the Assembly, at the same time, forbore to provide any funds for the purpose, the Act remained with the force of a pious wish. The claimants for compensation were none the better for it. Then came the union of the Canadas. Five more years rolled away, and, in spite of the usual siege operations of those who have money claims against a government, nothing was done. The various barns and cows and muskets were still a dead loss. Then in 1845 the Tory administration of Draper put the necessary finishing touch to the quaker act of 1840 by providing the sum of money required. By drawing on the receipts from tavern licences collected in Upper Canada over a period of four years, the government was in the possession of £38,000 for this specific purpose. But, after the Union, it was manifestly unjust to pay rebellion losses, as they came to be known, in Upper Canada and not in Lower Canada. The Reformers of Lower Canada pointed out with emphasis the manifest injustice of such a proceeding. It therefore became necessary to extend the scope of the Act. Accordingly, in November 1845, a commission consisting of five persons was appointed to investigate the claims for 'indemnity for just losses sustained' during the rebellion in Lower Canada. This commission was instructed to distinguish between the loyal and the rebellious, but, in making this vital distinction, they were not to 'be guided by any other description of evidence than that furnished by the sentences of the courts of law.' The commission was also given to understand that its investigation was not to be final. It was to prepare only a 'general estimate' which would be subject to more particular scrutiny and revision. Appointed in the end of November 1845, the commission had finished its task and was ready to report in April 1846. Its 'general estimate' was a handsome total of more than £240,000; it gave as its opinion that £100,000 would cover all the 'just losses sustained.' Of the larger amount, it is said that £25,000 was claimed by those who had actually been convicted of treason by court-martial. Not unnaturally an outcry rose at once against taking public money to reward treason. The report could not very well be acted upon; and the government voted £10,000 to pay claims in Lower Canada which had been certified before the union of the provinces. Another delay of three years followed, until LaFontaine took the matter up in the session of 1849.
His general idea was simply to continue and complete the legislation already in force, in order to do justice to those who had 'sustained just losses' in the 'troubles' of '37 and '38. The bill provided for a new commission of five, with power to examine witnesses on oath. In accordance with the finding of the previous commission, the total sum to be expended was limited to £100,000. If the losses exceeded that sum, the individual claims were to be proportionally reduced. The necessary funds were to be raised on twenty-year debentures bearing interest at six per cent. LaFontaine introduced and explained the bill, and Baldwin supported it in a brief speech. It was easy enough, with their unbroken majority, to vote the measure through; but the storm of opposition it raised might have made less determined leaders hesitate or draw back.