From various sources I gather the following particulars:—
From 1791 to 1819, the Clergy Reserves were in the hands of the Government, and managed by it alone. For years they yielded scarcely enough to defray the expenses of management. In 1817 the House of Assembly objected to such an appropriation for the clergy, as "beyond all precedent lavish," and complained that the reservations were an obstacle to improvement and settlement. In 1819, lands were taxed for the construction of roads, and it was contended that the reservations on the public roads should also be taxed.
In 1819, the question was first mooted, as to the right of Presbyterians to share in the reserves. In March, of that year, thirty-seven Presbyterians of the town of Niagara, petitioned Sir Peregrine Maitland, to grant to the Presbyterian congregation there, the annual sum of £100 in aid, out of the clergy reserves, or out of any other fund at the Governor's disposal. In transmitting this petition to the Colonial Secretary for instructions, Sir P. Maitland mentioned that "the actual product of the clergy reserves is about £700 per annum." In May, 1820, a reply was received from Lord Bathurst, stating that, in the opinion of the Crown officers, the provisions of the Act of 1791, "for the support of the Protestant clergy, are not confined solely to the clergy of the Church of England, but may be extended also to the clergy of the Church of Scotland," but not to dissenting ministers.
In 1819, on the application of Bishop Mountain, of Quebec, the clergy in each province were incorporated for the purpose of leasing and managing the reserves—the proceeds, however, to be paid over to the Government. On the appearance of a notice to this effect in the Quebec Gazette, dated, 13th June, 1820, the clergy of the Church of Scotland memorialized the King for a share in these reserves.
In 1823, the House of Assembly, on motion of Hon. William Morris, concurred in a series of resolutions, asserting the right of the Church of Scotland in Canada to a share in the reserves. These resolutions were rejected by the Legislative Council, by a vote of 6 to 5.
In April, 1824, Dr. Strachan was deputed by the Bishop of Quebec and Sir P. Maitland, to go to England and get authority from Lord Bathurst to sell portions of the reserves. In the meantime, the Canada (Land) Company proposed to purchase all the Crown and Clergy Reserve Lands at a valuation to be agreed on. The clergy corporation having desired a voice in this valuation, the Bishop of Quebec deputed Archdeacon Mountain to press this view on Lord Bathurst. Some misunderstanding having arisen between Lord Bathurst and Archdeacon Strachan, and the Canada Land Company, Dr. Strachan went to England in April, 1826, and was deputed by Lord Bathurst to arrange the differences with Mr. John Galt, Commissioner of the Company. This they did by changing the original plan. The clergy lands were exchanged for 1,000,000 acres in the Huron tract. Out of the moneys received from the Canada Company the Home Government appropriated £700 a year to the Church of Scotland clergy,[88] and the same amount to the clergy of the Church of Rome in Upper Canada.
In June, 1826, the Home Government, on the memorial of the Church of Scotland General Assembly, and an address from the House of Assembly, founded on the resolutions of 1823 (which, as introduced, had been rejected by the Legislative Council), acknowledged the rights of the Church of Scotland clergy to a share of the reserves. In January, 1826, the House of Assembly memorialized the King to distribute the proceeds of the reserves for the benefit of all denominations, or failing that to the purposes of education and the general improvement of the Province. The reply to this memorial was so unsatisfactory that the House of Assembly (December 22nd, 1826), adopted a series of eleven resolutions, deprecating the action of the Home Government in appropriating the clergy reserves to individuals connected with the Church of England "to the exclusion of other denominations"—that church bearing "a very small proportion to the number of other Christians in the province." The Assembly prayed that the proceeds of the reserves be applied to the support of district and common schools, a Provincial seminary, and in aid of erecting places of worship for all denominations of Christians. These resolutions passed by majorities of from 25 to 30; the nays being 2 and 3 only. The bill founded on these resolutions was negatived in the Legislative Council (January, 1827). In the year 1826, Dr. Strachan obtained a royal charter for King's College, with an endowment of 225,000 acres of land, and a grant of £1,000 for sixteen years. This charter was wholly in favour of the Church of England, and its obnoxious clauses remained unchanged until 1835.
In March, 1827, Hon. R. W. Horton introduced a Bill into Parliament to provide for the sale of the clergy lands, as asked for by the Bishop of Quebec. This led to a protracted discussion between the friends in the House of the English and Scotch Churches, and requests were made for information on the state of these Churches in Upper Canada. Archdeacon Strachan, then in England, furnished this information in his famous letter and Chart, dated, May 16th, 1827. Objection to giving the clergy corporation power to sell these lands having been made, Mr. Horton withdrew his original bill, and in a new one, which was passed, confined the exercise of this power to the Executive Government.
In March, 1828, the House of Assembly memorialized the King to place the proceeds of the reserves at the disposal of the House for the purposes of education and internal improvement. Mr. Morris' motion to strike out "internal improvement" was lost. In this year a committee of the House of Commons reported against continuing the reservation in mortmain of the clergy lands, as it imposed serious obstacles to the improvement of the colony.
In 1829, two despatches on the clergy reserve question were sent to the Colonial Secretary by Sir John Colborne. In one, dated 11th April, Sir John says: If a more ardent zeal be not shown by the Established Church, and a very different kind of minister than that which is generally to be found in this Province sent out from England, it is obvious that the members of the Established Church will be inconsiderable, and that it will continue to lose ground. The Methodists, apparently, exceed the number of the Churches of England and Scotland.... If the Wesleyan Methodists in England could be prevailed on to supply this Province with preachers, the Methodists of this country would become, as a political body, of less importance than they are at present.