The Act of 1846 provided that the Municipal Councils of Toronto and Kingston were to have the same powers in school matters as the District Councils. Toronto had at this time twelve school sections, each with its own Trustee Board, and each fixing its own textbooks and course of study. Such a system was cumbersome, wasteful, and inefficient, and the practical mind of Ryerson devised a remedy. In 1847, the Cities and Towns Act was passed. This Act required the Municipal Councils of cities and towns to appoint a School Board of six members. These six, together with the Mayor of the Corporation, had full control of all schools and school property. They could determine the number and kind of schools and the texts to be used, but they had no power either to levy an assessment upon property or to collect rate bills from parents. Any funds needed by the School Board in addition to the Legislative and Municipal grants were to be levied upon the taxable property of the city or town by the Municipal Council. But the Act did not say that the Municipal Council must grant the sums asked for by the Board of Trustees. In Toronto the Council of 1848 refused to levy the necessary assessment, and the School Trustees were compelled to close the schools from July to December.

The Toronto Globe[78] declared that Ryerson was introducing a Prussian despotism into Canada. Ryerson said that he desired nothing Prussian in the Canadian schools except the method of schoolroom instruction, and claimed that his new School Bill was almost a literal transcript of that in force in the State of New York. Ryerson then set forth the chief advantage of the new Bill, viz.: that it gave to the poor man the right to have his children, however numerous, educated, whereas the rate bill system compelled him in many cases to claim free schooling only on the ground of his poverty. The new School Act was to enable a poor man to educate his children and still maintain his self-respect. The school tax was to be levied not upon the children of the section, but upon the real property. Ryerson concluded as follows: "Wealthy selfishness and hatred of the education of the poor and labouring classes may exclaim against this provision of the law, but enlightened Christian philanthropy and true patriotism will rejoice at its application."

Commenting on Ryerson's letter, the following issue of the Globe said: "The Doctor makes a great fuss about the cruel position of a man who cannot 'brook to say he was a pauper' under the old system and the delightful and 'enlightened Christian philanthropy' of his new system which 'places the poor man and his children upon equal footing with the rich man and his children.' All bunkum, Dr. Ryerson. If it is hard to have ten or fifty or one hundred scholars as paupers at present, will it improve the matter to make the children of the common schools all paupers? If one class keep their children away now because the schools are above their means, and pride won't let them submit to state the fact to a trustee, will there not hereafter be a much larger class whose pride will prevent them sending their children to what even Dr. Ryerson admits will be pauper schools?... Is it not melancholy that so crooked, so visionary a man as this should be at the head of the literary institutions of the country?"

But Ryerson was fighting for free schools. He knew that thousands of children were growing up ignorant, especially in the large towns. He was able to show that in the city of Toronto, out of 4,450 children of school age in 1846, only 1,221 were on the common school registers and that the average attendance was scarcely one thousand. Even if it were granted that another thousand were in attendance at private and church schools, the fact remained that not more than half the children in Toronto were being educated.

In October, 1848, Ryerson submitted to the Government a draft School Bill, designed to remedy the defects in the legislation of 1846-1848. In a report[79] which he submitted with his draft Bill he says: "No law which contemplates the removal of grovelling or selfish ignorance and the elevation of society by means of efficient regulations and general taxation for schools ever has been, or ever will be, popular with the purely selfish or the listlessly ignorant. All such laws must be sustained for a time at least by the joint influence of the Government and the intelligent and enterprising portion of the community."

The outcry against free schools and taxation of property to educate the children of the poor showed clearly that the time had not yet come for the realization of his plans, and Ryerson in his draft Bill restored to towns and cities the right to impose rate bills upon parents, at the same time declaring his faith in the ultimate triumph of free schools.

In February, 1849, Ryerson submitted additions to his draft Bill of the previous October. Among other changes he recommended additional Superintendents for Districts of more than 150 schools; District Boards of Examiners who would replace the District Superintendent and school visitors[80] in issuing teachers' certificates; Teachers' Institutes for lectures and professional training of teachers; provision for separate schools for coloured children; school libraries for each section, and also township libraries; township School Boards; a School of Art and Design, connected with the Normal School; provincial certificates for Normal School graduates; making trustees personally responsible for a teacher's salary; the distribution of school funds on a basis of actual attendance, rather than on the number of children in the section; better provision for fixing school sites; more equitable division of the $200,000 legislative grant between Upper and Lower Canada, and provision for the admission into the common schools of pupils from sixteen to twenty-one years of age.

The Baldwin Government entrusted the handling in the Legislature of the School Bill of 1849 to the Honourable Malcolm Cameron. It should be borne in mind that the Legislature met in Montreal and that the Education Office for Upper Canada was in Toronto. Dr. Ryerson was, therefore, not in direct communication with the Government, nor was he officially informed from day to day as to the progress of the Bill. It should further be borne in mind that during this session the Parliament Buildings were burned, the Governor-General mobbed, and party feeling strongly aroused, thus creating conditions favourable for hasty and careless legislation. It seems to have been taken for granted by the Legislature that the Bill as brought in was prepared by Ryerson. As a matter of fact, Ryerson's Bill had, with Cameron's assent, been so mutilated by an enemy of the Superintendent that its essential provisions were destroyed. As soon as Ryerson learned its real nature, he protested on several grounds, but especially because it aimed to destroy the usefulness of the Chief Superintendent; excluded clergymen from being school visitors; destroyed the provincial nature of the school system; injured the prospects of a Normal School; would subject teachers to serious loss in collecting their salaries; re-established school sections in towns and cities; made no provision for uniform textbooks, and because it was cumbersome and unworkable. After an elaborate analysis of the Bill, Ryerson intimated that he would not attempt to administer the law as passed and that sooner than do so he would resign. The Government soon ascertained that the Bill was unsatisfactory to everybody and intimated to Ryerson that it would not be brought into operation. This course was followed, and in the meantime Ryerson perfected his plans for a new Bill to go before the Legislature in 1850.

As the Cameron Act of 1849 was never given effect, it has no interest for us, except in so far as it shows the evolution of the Act of 1850. During the Parliamentary recess, 1849-50, the Government issued circular letters to School Superintendents, ministers and other official persons, to secure suggestions as to school legislation. The replies were handed to Dr. Ryerson by the Hon. Francis Hincks, who had charge of the School legislation for 1850.

Ryerson's draft of the Bill of 1850 is a tribute to his practical common sense and is sometimes called the Charter of the Ontario School System. Ryerson knew the people of Upper Canada as few knew them, and he was quick to see the dividing line between that which seemed highly desirable and that which was possible. He moved steadily toward a distant goal, but was ever educating public opinion to move with him and seldom showed impatience over the slow pace of travel, so long as there was actual progress. He wished to see free schools, but in this Act contented himself with securing permissive legislation, which he believed would soon lead to the adoption of a free system.