The functions of this council are very similar to those of our House of Peers, and consist, to a great extent, in registering the decrees of the Lower House. The "third estate" is denominated the House of Assembly, and consists of 130 members, 65 for each province. [Footnote: The members of the Legislative Council and the House of Assembly receive six dollars (24_s._ sterling) a day for their attendance. The members of the Executive Council are paid at the rate of 1260_l._ per annum.] The qualification for the franchise has been placed tolerably high, and no doubt wisely, as, in the absence of a better guarantee for the right use of it, a property qualification, however trifling in amount, has a tendency to elevate the tone of electioneering, and to enhance the value which is attached to a vote. The qualification for electors is a 50_l._ freehold, or an annual rent of 7_l._ 10_s._ Contrary to the practice in the States, where large numbers of the more respectable portion of the community abstain from voting, in Canada the votes are nearly all recorded at every election, and the fact that the franchise is within the reach of every sober man gives an added stimulus to industry.

The attempt to establish British constitutional government on the soil of the New World is an interesting experiment, and has yet to be tested. There are various disturbing elements in Canada, of which we have little experience in England; the principal one being the difficulty of legislating between what, in spite of the union, are two distinct, nations, of different races and religions. The impossibility of reconciling the rival, and frequently adverse claims, of the Upper and Lower Provinces, has become a very embarrassing question. The strong social restraints, and the generally high tone of public feeling in England, which exercise a powerful control over the minister of the day, do not at present exist in Canada; neither has the public mind that nice perception of moral truth which might be desired. The population of Upper Canada, more especially, has been gathered from many parts of the earth, and is composed of men, generally speaking, without education, whose sole aim is the acquisition of wealth, and who are not cemented by any common ties of nationality. Under these circumstances, and bearing in mind the immense political machinery which the Papacy can set to work in Canada, the transfer of British institutions to the colony must at present remain a matter of problematical success. It is admitted that the failure of representative institutions arises from the unworthiness of constituencies; and if the efforts which are made by means of education to elevate the character of the next generation of electors should prove fruitless, it is probable that, with the independence of the colony, American institutions, with their objectionable features, would follow. At present the great difficulties to be surmounted lie in the undue power possessed by the French Roman Catholic population, and the Romanist influences brought to bear successfully on the Government.

There is in Canada no direct taxation for national purposes, except a mere trifle for the support of the provincial lunatic asylums, and for some other public buildings. The provincial revenue is derived from customs duties, public works, crown lands, excise, and bank impost. The customs duties last year came to 1,100,000_l._, the revenue from public works to 123,000_l._, from lands about the same sum, from excise about 40,000_l._, and from the tax on the current notes of the banks 30,000_l._ Every county, township, town, or incorporated village, elects its own council; and all local objects are provided for by direct taxation through these bodies. In these municipalities the levying of the local taxes is vested, and they administer the monies collected for roads, bridges, schools, and improvements, and the local administration of public justice.

According to the census taken in 1851, the population of Upper Canada was 952,000 souls, being an increase since 1842 of 465,945. That of Lower Canada amounted to 890,000, making a total of 1,842,000; but if to this we add the number of persons who have immigrated within the last four years, we have a population of 2,012,134.

Of the population of Lower Canada, 669,000 are of French origin. These people speak the French language, and profess the Romish faith. The land is divided into seigneuries; there are feudal customs and antiquated privileges, and the laws are based upon the model of those of old France. The progress of Lower Canada is very tardy. The French have never made good colonists, and the Romish religion acts as a drag upon social and national progress. The habitans of the Lower Province, though moral and amiable, are not ambitious, and hold their ancient customs with a tenacity which opposes itself to their advancement. The various changes in the tariff made by the Imperial Government affected Lower Canada very seriously. On comparing the rate of increase in the population of the two provinces in the same period of twelve years, we find that for Upper Canada it was 130 per cent., for Lower Canada only 34 per cent. The disparity between the population and the wealth of the two provinces is annually on the increase.

The progress of Upper Canada is something perfectly astonishing, and bids fair to rival, if not exceed, that of her gigantic neighbour. Her communication between the Lake district and the Atlantic is practically more economical, taking the whole of the year, and, as British emigration has tended chiefly to the Upper Province, the population is of a more homogeneous character than that of the States. The climate also is more favourable than that of Lower Canada. These circumstances, combined with the inherent energy of the Anglo-Saxon races which have principally colonised it, account in great measure for the vast increase in the material prosperity of the Upper Province as compared with the Lower.

In 1830 the population of Upper Canada was 210,437 souls; in 1842, 486,055; and in 1851 it had reached 952,004. Its population is now supposed to exceed that of Lower Canada by 300,000 souls. It increased in nine years about 100 per cent. In addition to the large number of emigrants who have arrived by way of Quebec, it has received a considerable accession of population from the United States; 7000 persons crossed the frontier in 1854. The increase of its wealth is far more than commensurate with that of its population. The first returns of the assessable property of Upper Canada were taken in 1825, and its amount was estimated at 1,854,965_l._ In 1845 it was estimated at 6,393,630_l_; but in seven years after this, in 1852, it presents the astonishing amount of 37,695,931_l._! The wheat crop of Upper Canada in 1841 was 3,221,991 bushels, and in 1851 it was 12,692,852; but the present year, 1855, will show a startling and almost incredible increase. In addition to the wealth gained in the cultivation of the soil, the settlers are seizing upon the vast water-power which the country affords, and are turning it to the most profitable purposes. Saw-mills, grist-mills, and woollen-mills start up in every direction, in addition to tool and machinery factories, iron- foundries, asheries, and tanneries.

Towns are everywhere springing up as if by magic along the new lines of railway and canal, and the very villages of Upper Canada are connected by the electric telegraph. The value of land is everywhere increasing as new lines of communication are formed. The town of London, in Upper Canada, presents a very remarkable instance of rapid growth. It is surrounded by a very rich agricultural district, and the Great Western Railway passes through it. Seven years ago this place was a miserable-looking village of between two and three thousand inhabitants; now it is a flourishing town, alive with business, and has a population of 13,000 souls. The increase in the value of property in its vicinity will appear almost incredible to English readers, but it is stated on the best authority: a building-site sold in September, 1855, for 150_l._ per foot, which ten years ago could have been bought for that price per acre, and ten years earlier for as many pence.

In Upper Canada there appears to be at the present time very little of that state of society which is marked by hard struggles and lawless excesses. In every part of my travels west of Toronto I found a high degree of social comfort, security to life and property, the means for education and religious worship, and all the accessories of a high state of civilization, which are advantages brought into every locality almost simultaneously with the clearing of the land. Yet it is very apparent, even to the casual visitor, that the progress of Canada West has only just begun. No limits can be assigned to its future prosperity, and, as its capabilities become more known, increasing numbers of stout hearts and strong arms will be attracted towards it.

The immense resources of the soil under cultivation have not yet been developed; the settlers are prodigal of land, and a great portion of the occupied territory, destined to bear the most luxuriant crops, is still in bush. The magnificent districts adjoining Lake Huron, the Georgian Bay, and Lake Simcoe, are only just being brought into notice; and of the fertile valley of the Ottawa, which it is estimated would support a population of nine millions, very little is known. Every circumstance that can be brought forward combines to show that Upper Canada is destined to become a great, a wealthy, and a prosperous country.