Though the treaty of peace left the Loyalists to the mercy—rather to the resentment (as the result proved)—of the American States, and as such received the censure of the House of Commons, British justice and honour recognized the claims of the Loyalists to compensation for their losses, as well as to gratitude for their fidelity to the unity of the empire. The King, at the opening of the session of Parliament, said: "I have ordered inquiry to be made into the application of the sum to be voted in support of the American sufferers; and I trust you will agree with me, that a due and generous attention ought to be shown to those who have relinquished their properties or professions from motives of loyalty to me, or attachment to the mother country." Accordingly, a Bill was introduced and passed without opposition in June, 1783, entitled "An Act Appointing Commissioners to Inquire into the Losses and Services of all such Persons who have Suffered in their Rights, Properties, and Professions, during the late Unhappy Dissensions in America, in consequence of their Loyalty to his Majesty and Attachment to the British Government."

The Commissioners named were John Wilmot, M.P., Daniel Parker Coke, M.P., Esquires, Col. Robert Kingston, Col. Thomas Dundas, and John Marsh, Esquire, who, after preliminary preparations, began their inquiry in the first week of October, and proceeded, with short intermissions, through the following winter and spring. The time for presenting claims was first limited by the Act to the 20th of March, 1784; but the time was extended by the renewal of the Act, from time to time, until 1789, when the Commissioners presented their twelfth and last report, and Parliament finally disposed of the whole matter in 1790, seven years after its commencement.

The Commissioners, according to their first report, divided the Loyalists into six classes, as follows: 1. Those who had rendered service to Great Britain. 2. Those who had borne arms for Great Britain. 3. Uniform Loyalists. 4. Loyal English subjects resident in Great Britain. 5. Loyalists who had taken oaths to the American States, but afterwards joined the British. 6. Loyalists who had borne arms for the American States, but afterwards joined the British navy or army. The reason for this classification is not very apparent; for all showed alike who were able to establish their losses, without reference to differences of merit, or the time or circumstances of their adhering to the Crown.

Every applicant was required to furnish proof of his loyalty, and of every species of loss for which he claimed compensation; in addition to which each claimant was put upon his oath as to his alleged losses; and if in any case perjury or fraud were believed to have been practised, the claimant was at once cut off from his whole claim. The rigid rules which the Commissioners laid down and enforced in regard to claimants, examining each claimant and the witnesses in his behalf separately and apart, caused much dissatisfaction, and gave the proceeding more the character of an Inquisition than of Inquiry. It seemed to place the claimants almost in the position of criminals on whom rested the burden of proof to establish their own innocence and character, rather than in that of Loyalists who had faithfully served their King and country, and lost their homes and possessions in doing so. Very many, probably the large majority of claimants, could not possibly prove the exact value of each species of loss which they had sustained years before, in houses, goods, stocks of cattle, fields with their crops and produce, woods with their timber, etc., etc. In such a proceeding the most unscrupulous would be likely to fare the best, and the most scrupulous and conscientious the worst; and it is alleged that many false losses were allowed to persons who had suffered no loss, while many other sufferers received no compensation, because they had not the means of bringing witnesses from America to prove their losses, in addition to their own testimony.

The chairman of the Commission admits the delay and difficulty caused by the mode of proceeding adopted by the Commissioners. He says: "The investigation of the property of each claimant, and of the value of each article of that property, real and personal, could not but be attended with a good deal of time as well as much caution and difficulty, each claim in fact branching out into so many articles, or rather distinct causes, in which the Commissioners were obliged to execute the office of both judge and jury, or rather of arbitrators between the nation on one side, and the individual on the other, whose whole patrimony as well as character depended on their verdict."[126]

The Act passed in 1783, authorizing the inquiry, being limited to two years, expired in July, 1785, but was renewed with some additions, one of which was a clause to empower the Commissioners to appoint proper persons to repair to America "to inquire into such circumstances as they might think material for better ascertaining the several claims which had been or should be presented to them under this or the former Act of Parliament." The Commissioners appointed John Anstey, Esq., a barrister-at-law, as agent to the United States, "to obtain information as to the confiscation, sale, and value of landed estates, and the total loss of the property of the claimants," respecting which he procured much valuable and authentic information and testimony. They sent Colonel Thomas Dundas and Mr. Jeremy Pemberton, two members of the Board, to visit Nova Scotia and Canada, "to inquire into the claims of such persons as could not without great inconvenience go over to Great Britain."

Before the 25th of March, 1784, the latest period allowed by the first Act for presenting claims, the number of claimants was 2,063, and the property alleged by them to have been lost, according to their schedules, amounted to £7,046,278, besides debts to the amount of £2,354,135. The sum was very large, but the losses were undoubtedly very great. The Commissioners made their first report in July, 1784; and after having detailed their assiduous proceeding in the fulfilment of their trust, and care in examining and deciding on individual cases, reported on the part of the cases submitted, and awarded £201,750 for £534,705 claimed, reducing the amount by more than half the amount claimed.

The second report of the Commissioners was made in December of the same year, and states that 128 additional cases had been examined and disposed of, the amount claimed being £693, 257, and the amount allowed was £150,935—less than one-fourth the amount claimed.

One hundred and twenty-two (122) cases were examined into and disposed of in May and July, 1785, according to the third and fourth reports—the amount claimed being £898,196, and the amount allowed being £253,613—less than one-third of the amount claimed.

In April, 1786, the fifth report of the Commissioners was presented, announcing that 142 other claims had been considered and decided, the claims amounting to £733,311, on which the Commissioners allowed £250,506—a little more than one-third of the amount claimed.