Canada under British Rule 1760-1900

by John George Bourinot

On the 4th November, 1873, Sir John Macdonald placed his resignation in the hands of the governor-general, the Earl of Dufferin; and the first ministry of the Dominion came to an end after six years of office. The circumstances of this resignation were regrettable in the extreme. In 1872 two companies received charters for the construction of the Canadian Pacific railway—one of them under the direction of probably the wealthiest man in Canada, Sir Hugh Allan of Montreal, and the other under the presidency of the Honourable David Macpherson, a capitalist of Toronto. The government was unwilling for political reasons to give the preference to either of these companies, and tried to bring about an amalgamation. While negotiations were proceeding with this object in view, the general elections of 1872 came on, and Sir Hugh Allan made large contributions to the funds of the Conservative party. The facts were disclosed in 1873 before a royal commission appointed by the governor-general to inquire into charges made in the Canadian house of commons by a prominent Liberal, Mr. Huntington. An investigation ordered by the house when the charges were first brought forward, had failed chiefly on account of the legal inability of the committee to take evidence under oath; and the government then advised the appointment of the commission in question. Parliament was called together in October, 1873, to receive the report of the commissioners, and after a long and vehement debate Sir John Macdonald, not daring to test the opinion of the house by a vote, immediately resigned. In justice to Sir John Macdonald it must be stated that Sir Hugh Allan knew, before he subscribed a single farthing, that the privilege of building the railway could be conceded only to an amalgamated company. When it was shown some months after the elections that the proposed amalgamation could not be effected, the government issued a royal charter to a new company in which all the provinces were fairly represented, and in which Sir Hugh Allan appears at first to have had no special influence, although the directors of their own motion, subsequently selected him as president on account of his wealth and business standing in Canada. Despite Sir John Macdonald's plausible explanations to the governor-general, and his vigorous and even pathetic appeal to the house before he resigned, the whole transaction was unequivocally condemned by sound public opinion. His own confidential secretary, whom he had chosen before his death as his biographer, admits that even a large body of his faithful supporters "were impelled to the conclusion that a government which had benefited politically by large sums of money contributed by a person with whom it was negotiating on the part of the Dominion, could no longer command their confidence or support, and that for them the time had come to choose between their conscience and their party."

The immediate consequence of this very unfortunate transaction was the formation of a Liberal government by Mr. Alexander Mackenzie, the leader of the opposition, who had entered the old parliament of Canada in 1861, and had been treasurer in the Ontario ministry led by Mr. Blake until 1872. He was Scotch by birth, and a stonemason by trade. He came to Canada in early manhood, and succeeded in raising himself above his originally humble position to the highest in the land. His great decision of character, his clear, logical intellect, his lucid, incisive style of speaking, his great fidelity to principle, his inflexible honesty of purpose, made him a force in the Liberal party, who gladly welcomed him as the leader of a government. When he appealed to the country in 1874, he was supported by a very large majority of the representatives of the people. His administration remained in office until the autumn of 1878, and passed many measures of great usefulness to the Dominion. The North-west territories were separated from the government of Manitoba, and first organised under a lieutenant-governor and council, appointed by the governor-general of Canada. In 1875, pending the settlement of the western boundary of Ontario, it was necessary to create a separate territory out of the eastern part of the North-west, known as the district of Keewatin, which was placed under the jurisdiction of the lieutenant-governor of Manitoba. This boundary dispute was not settled until 1884, when the judicial committee of the privy council, to whose decision the question had been referred, materially altered the limits of Keewatin and extended the western boundaries of Ontario. In 1878, in response to an address of the Canadian parliament, an imperial order in council was passed to annex to the Dominion all British possessions in North America not then included within the confederation—an order intended to place beyond question the right of Canada to all British North America except Newfoundland. In the course of succeeding years a system of local government was established in the North-west territories and a representation allowed them in the senate and house of commons.

As soon as the North-west became a part of the Dominion, the Canadian government recognised the necessity of making satisfactory arrangements with the Indian tribes. The policy first laid down in the proclamation of 1763 was faithfully carried out in this great region. Between 1871 and 1877 seven treaties were made by the Canadian government with the Crees, Chippewas, Salteaux, Ojibways, Blackfeet, Bloods and Piegans, who received certain reserves of land, annual payments of money and other benefits, as compensation for making over to Canada their title to the vast country where they had been so long the masters. From that day to this the Indians have become the wards of the government, who have always treated them with every consideration. The Indians live on reserves allotted to them in certain districts where schools of various classes have been provided for their instruction. They are systematically taught farming and other industrial pursuits; agents and instructors visit the reserves from time to time to see that the interests of the Indians are protected; and the sale of spirits is especially forbidden in the territories chiefly with the view of guarding the Indians from such baneful influences. The policy of the government for the past thirty years has been on the whole most satisfactory from every point of view. In the course of a few decades the Indians of the prairies will be an agricultural population, able to support themselves.

The Mackenzie ministry established a supreme court, or general court of appeal, for Canada. The election laws were amended so as to abolish public nominations and property qualification for members of the house of commons, as well as to provide for vote by ballot and simultaneous polling at a general election—a wise provision which had existed for some years in the province of Nova Scotia. An act passed by Sir John Macdonald's government for the trial of controverted elections by judges was amended, and a more ample and effective provision made for the repression and punishment of bribery and corruption at elections. A force of mounted police was organised for the maintenance of law and order in the North-west territories. The enlargement of the St. Lawrence system of canals was vigorously prosecuted in accordance with the report of a royal commission, appointed in 1870 by the previous administration to report on this important system of waterways. A Canada temperance act—known by the name of Senator Scott, who introduced it when secretary of state—was passed to allow electors in any county to exercise what is known as "local option"; that is to say, to decide by their votes at the polls whether they would permit the sale of intoxicating liquors within their respective districts. This act was declared by the judicial committee of the privy council to be constitutional and was extended in the course of time to very many counties of the several provinces; but eventually it was found quite impracticable to enforce the law, and the great majority of those districts of Ontario and Quebec, which had been carried away for a time on a great wave of moral reform to adopt the act, decided by an equally large vote to repeal it. The agitation for the extension of this law finally merged into a wide-spread movement among the temperance people of the Dominion for the passage of a prohibitory liquor law by the parliament of Canada. In 1898 the question was submitted to the electors of the provinces and territories by the Laurier government. The result was a majority of only 14,000 votes in favour of prohibition out of a total vote of 543,049, polled throughout the Dominion. The province of Quebec declared itself against the measure by an overwhelming vote. The temperance people then demanded that the Dominion government should take immediate action in accordance with this vote; but the prime minister stated emphatically to the house of commons as soon as parliament opened in March, 1899, "that the voice of the electorate, which has been pronounced in favour of prohibition—only twenty-three per cent. of the total electoral vote of the Dominion—is not such as to justify the government in introducing a prohibitory law." In the premier's opinion the government would not be justified in following such a course "unless at least one-half of the electorate declared itself at the polls in its favour." In the province of Manitoba, where the people have pronounced themselves conclusively in favour of prohibition, the Macdonald government are now moving to give effect to the popular wishes and restrain the liquor traffic so far as it is possible to go under the provisions of the British North America act of 1867 and the decisions of the courts as to provincial powers.

For two years and even longer, after its coming into office, the Mackenzie government was harassed by the persistent effort that was made in French Canada for the condonation of the serious offences committed by Riel and his principal associates during the rebellion of 1870. Riel had been elected by a Manitoba constituency in 1874 to the Dominion house of commons and actually took the oath of allegiance in the clerk's office, but he never attempted to sit, and was subsequently expelled as a fugitive from criminal justice. Lepine was convicted of murder at Winnipeg and sentenced to be hanged, when the governor-general, Lord Dufferin, intervened and commuted the sentence to two years' imprisonment, with the approval of the imperial authorities, to whom, as an imperial officer entrusted with large responsibility in the exercise of the prerogative of mercy, he had referred the whole question. Soon afterwards the government yielded to the strong pressure from French Canada and relieved the tension of the public situation by obtaining from the representative of the crown an amnesty for all persons concerned in the North-west troubles, with the exception of Riel and Lepine, who were banished for five years, when they also were to be pardoned. O'Donohue was not included, as his first offence had been aggravated by his connection with the Fenian raid of 1871, but he was allowed in 1877 the benefit of the amnesty. The action of Lord Dufferin in pardoning Lepine and thereby relieving his ministers from all responsibility in the matter was widely criticised, and no doubt had much to do with bringing about an alteration in the terms of the governor-general's commission and his instructions with respect to the prerogative of mercy. Largely through the instrumentality of Mr. Blake, who visited England for the purpose, in 1875, new commissions and instructions have been issued to Lord Dufferin's successors, with a due regard to the larger measure of constitutional freedom now possessed by the Dominion of Canada. As respects the exercise of the prerogative of mercy, the independent judgment of the governor-general may be exercised in cases of imperial interest, but only after consultation with his responsible advisers, while he is at liberty to yield to their judgment in all cases of local concern.

One of the most important questions with which the Mackenzie government was called upon to deal was the construction of the Canadian Pacific railway. It was first proposed to utilise the "water-stretches" on the route of the railroad, and in that way lessen its cost, but the scheme was soon found to be impracticable. The people of British Columbia were aggrieved at the delay in building the railway, and several efforts were made to arrange the difficulty through the intervention of the Earl of Carnarvon, colonial secretary of state, of the governor-general when he visited the province in 1876, and of Mr., afterwards Sir, James Edgar, who was authorised to treat with the provincial government on the subject. At the instance of the secretary of state the government agreed to build immediately a road from Esquimalt to Nanaimo on Vancouver Island, to prosecute the surveys with vigour, and make arrangements for the completion of the railway in 1890. Mr. Blake opposed these terms, and in doing so no doubt represented the views of a large body of the Liberal party, who believed that the government of Canada had in 1871 entered into the compact with British Columbia without sufficient consideration of the gravity of the obligation they were incurring. The commons, however, passed the Esquimalt and Nanaimo bill only to hear of its rejection in the senate, where some Liberals united with the Conservative majority to defeat it. When the surveys were all completed, the government decided to build the railway as a public work; but by the autumn of 1878, when Mr. Mackenzie was defeated at a general election, only a few miles of the road had been completed, and the indignation of British Columbia had become so deep that the legislature passed a resolution for separation from the Dominion unless the terms of union were soon fulfilled.

During the existence of the Mackenzie government there was much depression in trade throughout the Dominion, and the public revenues showed large deficits in consequence of the falling-off of imports. When the elections took place in September, 1878, the people were called upon to give their decision on a most important issue. With that astuteness which always enabled him to gauge correctly the tendency of public opinion, Sir John Macdonald recognised the fact that the people were prepared to accept any new fiscal policy which promised to relieve the country from the great depression which had too long hampered internal and external trade. In the session of 1878 he brought forward a resolution, declaring emphatically that the welfare of Canada required "the adoption of a national policy which, by a judicious readjustment of the tariff will benefit the agricultural, the mining, the manufacturing and other interests of the Dominion … will retain in Canada thousands of our fellow-countrymen now obliged to expatriate themselves in search of the employment denied them at home … will restore prosperity to our struggling industries now so sadly depressed … will prevent Canada from being made a sacrifice market … will encourage and develop an interprovincial trade … and will procure eventually for this country a reciprocity of trade with the United States." This ingenious resolution was admirably calculated to captivate the public mind, though it was defeated in the house of commons by a large majority. Mr. Mackenzie was opposed to the principle of protection, and announced the determination of the government to adhere to a revenue tariff instead of resorting to any protectionist policy, which would, in his opinion, largely increase the burdens of the people under the pretence of stimulating manufactures. As a consequence of his unbending fidelity to the principles of his life, Mr. Mackenzie was beaten at the general election by an overwhelming majority. If he had possessed even a little of the flexibility of his astute opponent he would have been more successful as a leader of a party.

One of Lord Dufferin's last official acts in October, 1878, was to call upon Sir John Macdonald to form a new administration on the resignation of Mr. Mackenzie. The new governor-general, the Marquess of Lorne, and the Princess Louise, arrived in Canada early in November and were everywhere received with great enthusiasm. The new protective policy—"the National Policy" as the Conservatives like best to name it—was laid before parliament in the session of 1879, by Sir Leonard Tilley, then finance minister; and though it has undergone some important modifications since its introduction it has formed the basis of the Canadian tariff for twenty years. The next important measure of the government was the vigorous prosecution of the Canadian Pacific railway. During the Mackenzie administration the work had made little progress, and the people of British Columbia had become very indignant at the failure to carry out the terms on which they had entered the confederation. In the session of 1880-81 Sir Charles Tupper, minister of railways, announced that the government had entered into a contract with a company of capitalists to construct the railway from Montreal to Burrard's Inlet. Parliament ratified the contract by a large majority despite the vigorous opposition made by Mr. Blake, then leader of the Liberal party, who had for years considered this part of the agreement with British Columbia as extremely rash. Such remarkable energy was brought to the construction of this imperial highway that it was actually in operation at the end of five years after the commencement of the work—only one-half of the time allowed in the charter for its completion. The financial difficulties which the company had to encounter in the progress of the work were very great, and they were obliged in 1884 to obtain a large loan from the Dominion government. The loan was secured on the company's property, and was paid off by 1887. The political fortunes of the Conservative administration, in fact, were indissolubly connected with the success of this national enterprise, and from the moment when the company commenced the work Sir John Macdonald never failed to give it his complete confidence and support.

One of the delicate questions which the Macdonald government was called upon to settle soon after their coming into office was what is known as "the Letellier affair." In March, 1878, the lieutenant-governor of the province of Quebec, Mr. Letellier de Saint-Just, who had been previously a member of the Mackenzie Liberal government, dismissed the Boucherville Conservative ministry on the ground that they had taken steps in regard to both administrative and legislative measures not only contrary to his representations, but even without previously advising him of what they proposed to do. At his request Mr., now Sir, Henry Joly de Lotbinière formed a Liberal administration, which appealed to the country. The result was that the two parties came back evenly balanced. The Conservatives of the province were deeply irritated at this action of the lieutenant-governor, and induced Sir John Macdonald, then leader of the opposition, to make a motion in the house of commons, declaring Mr. Letellier's conduct "unwise and subversive of the sound principles of responsible government." This motion was made as an amendment on the proposal to go into committee of supply, and under a peculiar usage of the Canadian commons it was not permitted to move a second amendment at this stage. Had such a course been regular, the Mackenzie government would have proposed an amendment similar to that which was moved in the senate, to the effect that it was inexpedient to offer any opinion on the action of the lieutenant-governor of Quebec for the reason that "the federal and provincial governments, each in its own sphere, enjoyed responsible government equally, separately, and independently"—in other words, that the wisest constitutional course to follow under the circumstances was to allow each province to work out responsible government without any undue interference on the part of the Dominion government or parliament. As it happened, however, Mr. Mackenzie and his colleagues had no alternative open to them but to vote down the motion proposed in the commons; while in the Conservative senate the amendment, which could not be submitted to the lower house under the rules, was defeated, and the motion condemning the lieutenant-governor carried by a large party vote.

In 1879, when the Macdonald government was in office, the matter was again brought before the house of commons and the same motion of censure that had been defeated in 1878 was introduced in the same way as before, and carried by a majority of 85. The prime minister then informed Lord Lorne that in the opinion of the government Mr. Letellier's "usefulness was gone," and he recommended his removal from office; but the governor-general was unwilling to agree hastily to such a dangerous precedent as the removal of a lieutenant-governor, and as an imperial officer he referred the whole matter to her Majesty's government for their consideration and instructions. The colonial secretary did not hesitate to state "that the lieutenant-governor of a province has an indisputable right to dismiss his ministers if, from any cause, he feels it incumbent to do so," but that, in deciding whether the conduct of a lieutenant-governor merits removal from his office, as in the exercise of other powers vested in him by the imperial state the governor-general "must act by and with the advice of his ministers." After further consideration of the subject, the Canadian government again recommended the dismissal of Mr. Letellier, and the governor-general had now no alternative except to act on the advice of his responsible ministers. It was unfortunate that the constitutional issue was obscured, from the outset, by the political bitterness that was imported into it, and that the procedure, followed in two sessions, of proposing an amendment, condemnatory of the action of the lieutenant-governor, on the motion of going into committee of supply, prevented the house from coming to a decision squarely on the true constitutional issue—actually raised in the senate in 1878—whether it was expedient for the parliament or government of Canada to interfere in a matter of purely provincial concern.