His ideas have in part been criticized in relation to Lord Sydenham's governor-generalship: in a sense, Sydenham was simply the Russell system incarnate. But it is well to examine these ideas as a whole. Russell was a Durhamite "with a difference." Like Durham he planned a generous measure of self-government, but he was a stricter constitutional thinker than Durham. He reduced to a far finer point the difficulty which Durham only slightly felt, about the seat of ultimate authority and responsibility; and his instructions to Sydenham left no doubt as to the constitutional superior in Canada. With infinitely shrewder practical insight than his prompter, he refused to simplify the problem of executive responsibility, by making the council subject to the Assembly in purely domestic matters, and to the Crown and its representative in external matters. "Supposing," he said, "that you could lay down this broad principle, and say that all external matters should be subject to the home government, and all internal matters should be governed according to the majority of the Assembly, could you carry that principle into effect? I say, we cannot abandon the responsibility which is cast upon us as Ministers of the Executive of this great Empire."[[34]] Ultimately the surrender had to be made, but it was well that Russell should have refused to consent to what was really a fallacy in Durham's reasoning. In consequence of this position, the Whig leader regarded Bagot's surrender as one, difficult perhaps to avoid, but unfortunate in its results, and he was an unflinching supporter of Metcalfe. He further declared that he thought Metcalfe's council had an exaggerated view of their power, and that to yield to them would involve dangers to the connection.[[35]] The novelty involved in his policy lay, however, outside this point of constitutional logic: it was a matter of practice, not of theory. Not only did he support Sydenham in those practical reforms in which the new political life of Canada began, but in spite of his theory he really granted all save the form of full responsibility. So completely had he, and his agent Sydenham, undermined their own imperial position, that when Peel's ministry fell in 1846, it was one of the first acts of Lord John Russell, now prime minister, to consent to the demolition of his own old theories. If he may not dispute with Grey the credit of having conceded genuine responsibility to Canada, at least he did not exercise his authority to forbid the grant.

It seems to me, indeed, that Russell definitely modified his position between 1841 and 1847. At the earlier date he had been a stout upholder of the supremacy of Britain in Canada, for he believed in the connection, and the connection depended on the retention of British supremacy. In the debate of January 16th, 1838, he argued thus for the Empire: "On the preservation of our colonies depends the continuance of our commercial marine; and on our commercial marine mainly depends our naval power; and on our naval power mainly depends the strength and supremacy of our arms."[[36]] It is worthy of note that Charles Buller took occasion to challenge this description of the pillars of empire—it seemed a poor theory to him to make the empire a stalking-horse for the commerce and interests of the mother country. But as events taught Russell surely that the casuistry of 1839 was false, and that Responsible Government was both a deeper and a broader thing than he had counted it, and yet inevitable, he accepted the more radical position. At the same time, he either came to lay less stress on the unity of Empire, or he was forced to acknowledge that, since Home Rule must be granted, and since with Home Rule separation seemed natural, Britain had better practise resignation in view of a possible disruption. The best known expression of this phase in Russell's thought is his speech on Colonial Administration in 1850: "I anticipate, indeed, with others that some of the colonies may so grow in population and wealth that they may say, 'Our strength is sufficient to enable us to be independent of England. The link is now become onerous to us; the time is come when we think we can, in amity and alliance with England, maintain our independence.' I do not think that that time is yet approaching. But let us make them as far as possible fit to govern themselves ... let them increase in wealth and population; and whatever may happen, we of this great empire shall have the consolation of saying that we have contributed to the happiness of the world."[[37]] It is possible to argue that because Russell admitted that the time for separation was not yet approaching he was therefore an optimist. But the evidence leans rather to the less glorious side. It was this speech which kindled Elgin into a passion and made him bid Grey renounce for himself and his leader the habit of telling the colonies that the colonial is a provisional existence. The same speech, too, extorted complaints from Robert Baldwin, the man whom Sydenham and Russell had once counted half a traitor. "I never saw him so much moved," wrote Elgin, to whom Baldwin had frankly said about a recent meeting. "My audience was disposed to regard a prediction of this nature proceeding from a Prime Minister, less as a speculative abstraction than as one of that class of prophecies which work their own fulfilment."[[38]] The speech was not an accidental or occasional flash of rhetoric. The mind of the Whig leader, acquiescing now in the completeness of Canadian local powers, and reading with disquiet the signs of the times in the form of Canadian turbulence, seems to have turned to speculate on the least harmful form which separation might take. Of this there is direct evidence in a private letter from Grey to Elgin: "Lord John in a letter I had from him yesterday, expresses a good deal of anxiety as to the prospects of Canada, and reverts to the old idea of forming a federal union of all the British provinces, in order to give them something more to think of than their mere local squabbles;[[39]] and he says that if to effect this a separation of the two Canadas were necessary he should see no objection to it. His wish in forming such a union would be to bring about such a state of things, that, if you should lose our North American provinces, they might be likely to become an independent state, instead of being merged in the Union."[[40]]

Russell moved then at this period through a most interesting development of views. His initial position was a blend of firm imperialism and generous liberal concession, the latter more especially inspired by Durham. As his genuine sympathies with liberty and democracy operated on his political views, these steadily changed in the direction of a more complete surrender to Canadian demands. But, since, in spite of his sympathies, he still remained logical, and since he had believed the connection to depend on the governor-general's supremacy, the modification of that supremacy involved the weakening of his hopes of empire. If the change seem somewhat to his discredit, his best defence lies in the fact that Peel, who made a very similar modification of his mind on Canadian politics, was also contemplating in these years a similar separation. "The utility of our connexion with Canada," he said in 1844, "must depend upon its being continued with perfect goodwill by the majority of the population. It would be infinitely better that that connexion should be discontinued, rather than that it should be continued by force and against the general feeling and conviction of the people."[[41]] Indeed, Russell seems to have been accompanied on his dolorous journey by all the Peelites and not a few of the Whigs. "There begins to prevail in the House of Commons," wrote Grey to Elgin in 1849, "and I am sorry to say in the highest quarters, an opinion (which I believe to be utterly erroneous) that we have no interest in preserving our colonies and ought therefore to make no sacrifice for that purpose. Peel, Graham, and Gladstone, if they do not avow this opinion as openly as Cobden and his friends, yet betray very clearly that they entertain it, nor do I find some members of the Cabinet free from it."[[42]]

Meanwhile, the direction of colonial affairs had fallen to the writer of the letter just quoted: from the formation of the Russell ministry in 1846 until its fall, Earl Grey was the dominant force in British colonial policy. Unlike Russell, Grey was not so much a politician interested in the great parliamentary game, as an expert who had devoted most of his attention to colonial and economic subjects. Consciously or unconsciously, he had imbibed many of Wakefield's ideas, and in that period of triumphant free trade, he came to office resolute to administer the colonies on free-trade principles. It said much for the fixity and consistency of his ideas of colonial administration that, unlike Russell, Buller, and others, he had not been misled by the Metcalfe incident. "The truth is," he said of Metcalfe, "he did not comprehend responsible government at all, nor from his Indian experience is this wonderful."[[43]]

The most comprehensive description of the Grey regime is that it practised laissez faire principles in colonial administration as they never had been practised before. Under him Canada first enjoyed the advantages or disadvantages of free trade, and escaped from the shackles of the Navigation Laws. Grey and Elgin co-operated to bring the Clergy Reserve troubles to an end, although the Whigs fell before the final steps could be taken. Grey secured imperial sanction for changes in the Union Act of 1840, granting the French new privileges for their language, and the colony free control of its own finances. But all these were subordinate in importance to the attitude of the new minister towards the whole question of Canadian autonomy, and its relation to the Imperial Parliament. That attitude may be examined in relation to the responsibility of the Canadian executive, the powers of the Imperial Parliament, the occasions on which these powers might be fitly used, and the bearing of all the innovations on the position of Canada within the British Empire.

Grey's policy with regard to Responsible Government was simple. As Canadians viewed the term, and within the very modest limits set to it by them, he surrendered the whole position. So much has already been said on this point in connection with Elgin, that it need not be further elaborated. Yet, since there might linger a suspicion that the policy was that rather of the governor than of the minister, Grey's position may be given in a despatch written to Sir John Harvey in Nova Scotia, before Elgin went to Canada.

"The object," wrote Grey, "with which I recommend to you this course is that of making it apparent that any transfer, which may take place, of political power from the hands of one party to those of another is the result, not of an act of yours, but of the wishes of the people themselves, as shown by the difficulty experienced by the retiring party in carrying on the government of the Province according to the forms of the Constitution. To this I attach great importance; I have therefore to instruct you to abstain from changing your Executive Council until it shall become perfectly clear that they are unable with such fair support from yourself as they have a right to expect, to carry on the government of the province satisfactorily, and command the confidence of the Legislature.... In giving all fair and proper support to your Council for the time being, you will carefully avoid any acts which can possibly be supposed to imply the slightest personal objection to their opponents, and also refuse to assent to any measures which may be proposed to you by your Council, which may appear to you to involve an improper exercise of the authority of the Crown for party rather than for public objects. In exercising however this power of refusing to sanction measures which may be submitted to you by your Council, you must recollect that this power of opposing a check upon extreme measures, proposed by the party for the time in the Government, depends entirely for its efficacy upon its being used sparingly and with the greatest possible discretion. A refusal to accept advice tendered to you by your Council is a legitimate ground for its members to tender to you their resignation—a course they would doubtless adopt, should they feel that the subject on which a difference had arisen between you and themselves was one upon which public opinion would be in their favour. Should it prove to be so, concession to their views must sooner or later become inevitable, since it cannot be too distinctly acknowledged that it is neither possible nor desirable to carry on the government of any of the British Provinces in North America, in opposition to the opinion of the inhabitants."[[44]]

In strict accordance with this plan, Grey gave Elgin the most loyal support in introducing responsible government into Canada, and, in a note written not long after Papineau had once more awakened the political echoes with a distinctly disloyal address, he expressed his willingness to include even the old rebel in the ministerial arrangement, should that be insisted on by the leaders of a party which could command a majority.[[45]]

Complete as was the concession made by Grey to local claims, it would, nevertheless, be a grave error to think that he left no space for the assertion of imperial authority. No doubt it was part of his system to reduce to a minimum the occasions on which interference should be necessary, but that such occasions might occur, and demand sudden and powerful action from Britain, he ever held. Even in matters of a character purely domestic, he believed, with Lord John Russell, that intervention might be necessary, and he desired to prevent danger, not by minimizing the powers of the imperial authority, but by exercising them with great discretion.[[46]] It was perhaps with this conservation of central power in view that he was willing to transfer to the British treasury the responsibility of paying the salary of the governor-general, provided the colonists would take over some part of the expenses and difficulties of Canadian defence. But the extent to which he was prepared to exalt the supremacy is best illustrated in the control of imperial commerce. A great change had just been made in the economic system of Britain. Free trade was then to its adherents not an arguable position, but a kind of gospel; and men like Grey, who had something of the propagandist about them, were inclined to compel others to come in. Now, unfortunately for Canada, free trade appeared there first rather as foe than as friend. As has already been seen, the measures of 1846 overturned the arrangement made by Stanley in 1843, whereby a preference given to Canadian flour had stimulated a great activity in the milling and allied industries; and the removal of the restrictions imposed by the Navigation Acts did not take place till 1849. At the same time the United States, the natural market for Canadian products, showed little inclination to listen to talk of reciprocity; and the Canadians, seemingly deprived of pre-existing advantages by Peel's action, talked of retaliation as a means of bettering their position, at least in relation to the United States. Grey, however, was an absolute believer in the magic powers of free trade. "When we rejected all considerations of what is called reciprocity," he wrote to Elgin, "and boldly got rid of our protective duties without inquiring whether other nations would meet us or not, the effect was immediately seen in the increase of our exports, and the prosperity of our manufactures."[[47]] Canada, then, in his opinion could retaliate most effectively, not by setting up a tariff against the United States, but by opening her ports more freely then before. He had a vision, comparable although in contrast, to that of believers in an imperial tariff, of an empire with its separate parts bound to each other by a general freedom of trade. Besides all this, he had a firm trust that the evils which other nations less free than Britain might for a time inflict on her trade by their prohibitions, would shortly end, since all would be convinced by the example of Britain and would follow it. Under these circumstances he set imperial policy against local prejudice, and wrote to his governor-general: "I do trust you will be able to prevent the attempt to enter upon that silliest of all silly policies, the meeting of commercial restrictions by counter restrictions; indeed it is a matter to be very seriously considered, whether we can avoid disallowing any acts of this kind which may be passed."[[48]]

In spite, then, of the present thoroughness of Grey's conversion to the Canadian position with regard to Home Rule, there was for him still an empire operating through the Houses at Westminster and the Crown ministers, and striking in, possibly on rare occasions, but, when necessary, with a heavy hand. To such a man, too, belief in the permanence of empire was natural. There are fewer waverings on the point in Grey's writings than in those of any of his contemporaries, Durham, Buller, and Elgin alone excepted. He had, indeed, as his private correspondence shows, moments of gloom. Under the strain of the Montreal riots, and the insults to Elgin in 1849, he wrote: "I confess that looking at these indications of the state of feeling there, and at the equally significant indications to the feelings in the House of Commons, respecting the value of our colonies, I begin almost to despair of our long retaining those in North America; while I am persuaded that to both parties a hasty separation will be a very serious evil."[[49]] Elgin's robust faith, and perfect knowledge, however, set him right. Indeed, in tracing the growth of Grey's colonial policy, it is impossible for anyone to mistake the evidences of Elgin's influence; and the chapter on Canada in his Colonial Policy owes almost more to Elgin than it does to the avowed author. His final position may be stated thus. The empire was to the advantage of England, for, apart from other reasons, her place among the nations depended on the colonies, and the act of separation would also be one of degradation. The empire was an unspeakable benefit to the colonies: "To us," he once wrote in a moment of doubt, "except the loss of prestige (no slight one I admit) the loss of Canada would be the loss of little but a source of heavy expense and great anxiety, while to the Canadians, the loss of our protection, and of our moderating influence to restrain the excesses of their own factions, would be one of the greatest that can be conceived."[[50]] But, apart from these lower loss and gain calculations, to Grey the British Empire was a potent instrument, essential to the peace and soundness of the world, and he expected the provinces to which he had conceded British rights, to rally to uphold British standards through a united and loyal imperial federation. Those were still days when Britain counted herself, and not without justification, a means of grace to the less fortunate remainder of mankind. "The authority of the British Crown is at this moment the most powerful instrument, under Providence, of maintaining peace and order in many extensive regions of the earth, and thereby assists in diffusing among millions of the human race, the blessings of Christianity and civilization. Supposing it were clear (which I am far from admitting) that a reduction of our national expenditure (otherwise impracticable) to the extent of a few hundred thousands a year, could be effected by withdrawing our authority and protection from our numerous Colonies, would we be justified, for the sake of such a saving, in taking this step, and thus abandoning the duty which seems to have been cast upon us?"[[51]]