The bill providing for the vesting of the proceeds of the reserves in the Imperial Parliament, to which I have referred in the preceeding chapter, was not sanctioned by Her Majesty. This was "a sore blow and a heavy discouragement" to those who had laboured so assiduously to carry such a bill through the local Legislature. The objection raised to it by Lord John Russell was twofold. The chief reason, however, was thus expressed:—

It appeared to Her Majesty's Government that strong objections existed to this delegation to Parliament by a subordinate authority of the power of legislation. The proceeding should have been by address to the three estates of the Realm, asking them to undertake the decision of the question.

Thus by a stroke of Lord John Russell's pen, the whole of the pet scheme of the ruling party, devised after three months' anxious local legislation, was irrecoverably lost. And yet it was not lost, for by the after careful manipulation of Lord John and his colleagues by Bishop Strachan, Lord Seaton (Sir John Colborne) and Sir George Arthur, that bill afterwards proved to be, for ten years, the basis of a far more sweeping and unjust measure than even the most reckless and partizan member of the Legislature in Upper Canada would have ventured to propose.

When it was known that Her Majesty had declined to sanction Sir George Arthur's bill, steps were taken by the Governor-General to devise such a measure as would meet with the approval of the great mass of the people in Upper Canada. To aid him in accomplishing this desirable end, Mr. Poulett Thompson privately sought the aid of leading public men in the Province. Having obtained their assistance, he, with the advice of his Council, prepared a compromise measure which was designed to be just and equitable to all parties concerned.

On the 6th January, 1840, the Governor-General sent a message to the House of Assembly, in which he thus outlines the measure which, with his sanction, Hon. Solicitor-General Draper submitted to the House:—

The Governor-General proposes that the remainder of the land should be sold, and the annual proceeds of the whole fund, when realized, be distributed [one half to the Episcopal and Presbyterian Churches, and the other half among other religious bodies desiring to share in it] for the support of religious instruction within the Province, and for the promotion there, of the great and sacred objects for which these different bodies are established or associated.

On this bill, Dr. Ryerson remarked:—

From this message, the hopelessness of success in any further attempts to get the annual proceeds of the reserves appropriated to exclusively secular objects, is apparent.... Up to the present time I have employed my best efforts, by every kind of argument, persuasion and entreaty, to get the proceeds applied simply and solely to educational purposes.... This is unattainable, and is rendered so by an original provision of our Constitution (of 1791), as stated by the Governor-General.

The bill was fiercely attacked by the then newly-appointed Bishop of Toronto. He denounced it as—