Negative freedom was achieved first. After 1877 Canada ceased to be bound by commercial treaties made by the United Kingdom unless it expressly desired to be included. As to treaties made before that date, the restrictions lasted longer. Most of these treaties bound Canada to give to the country concerned the same tariff and other privileges given to any other foreign power, and Canada in return was given corresponding privileges. Two went further. Treaties made in the sixties with Belgium and Germany—history discovers strange bedfellows—bound all British colonies to give to these countries the same tariff privileges granted to Great Britain or to sister colonies. In 1891 the Canadian parliament sent a unanimous address to Her Majesty praying for the denunciation of these treaties, but in vain. It was not until the Laurier administration had forced the issue six years later that the request was granted.

Positive freedom, a share in the making of treaties affecting Canada, came still more gradually. When in 1870 Galt and Huntington pressed for treaty-making powers, Macdonald opposed, urging the great advantages of British aid in negotiation. A year later, however, Macdonald gave expression to his changed view of the value of that aid. As one of the five British commissioners who negotiated the Washington Treaty (1871), he declared that his colleagues had 'only one thing in their minds—that is, to go home to England with a treaty in their pockets, settling everything, no matter at what cost to Canada.' In 1874 George Brown went to Washington as one of the two British commissioners in the abortive reciprocity negotiations of that year. In 1879 the Macdonald Government made Galt ambassador at large to negotiate treaties in Europe, but he was hampered by being compelled to 'filter' his proposals through the various resident British ambassadors. When in 1882 Blake moved in the House of Commons a resolution in favour of direct treaty-making powers, Sir John Macdonald opposed it as meaning separation and independence, ending his speech with the declaration, 'A British subject I was born, a British subject I hope to die.' Yet action moved faster than the philosophy of action. In 1883 Sir Charles Tupper signed the protocols of the Cable Conference in Paris on Canada's behalf; and at Madrid, in 1887 and 1889, the same doughty statesman represented Canada in the conduct of important negotiations. It was in 1891, only nine years after Sir John Macdonald's reply to Blake foreboding separation and independence, that the House of Commons and Senate of Canada, praying for the abrogation of the Belgian and German treaties, unanimously declared that 'the self-governing colonies are recognized as possessing the right to define their respective fiscal relations to all foreign nations.'

The first task had been practically achieved; freedom had been won; but it still remained to rise through freedom to co-operation, to use the newly won powers to work out a lasting partnership between the free states of the Empire. This was the harder task. There was no precedent to follow. Centralized empires there had been; colonies there had been which had grown into independent states. But of an empire which was not an empire, of colonies which had achieved self-government only to turn to closer union with the parent state, the world had as yet no instance.

It had not even a model in idea, a theory of how it should be done. Such a forecast as that already quoted from Sir John Macdonald[[2]] came as near as might be, but this long remained a peroration and no more. No man and no school divined absolutely the present fact and theory of empire. It has worked out of the march and pressure of events, aided by the clash of the oppositions which it has reconciled.

In the eighties and nineties four possible futures for the Dominion were discussed. The first was the continuance of the colonial status, the second Annexation, the third Independence, and the fourth Imperial Federation. Colonialism had only inertia in its favour. Annexation ran counter both to filial sentiment and to national hopes, but its discussion served to show the desperate need of change and forced the advocates of other ideals to set forth their creeds. Independence meant the complete severing of the ties which bound Canada to the rest of the Empire. Imperial Federation proposed to set up in London a new authority with representatives from all the white Dominions and with power to tax and bind. Each played its needed part. The advocates of Imperial Federation did much to prevent a drift towards Annexation which might otherwise have set in. The advocates of Independence expressed the national aspirations which must be satisfied in any solution that would be enduring. The resultant of these forces was of a character none had precisely anticipated. Empire and Independence were reconciled.

In this period the two most important steps towards co-operation were the appointment of a Canadian High Commissioner in London and the beginning of the Colonial Conferences.

The first step was taken on the initiative of the Macdonald Government in 1879. It was found necessary to appoint a Canadian representative in London both to act as ambassador at large in dealing with European states, and to serve as a link between the Canadian and British Governments. The latter purpose was especially significant. In the days of colonial subordination the governor-general had served as the only needed link. His duty was to govern the colony in accordance with the interest and policy of the mother country, and in carrying that out he was responsible to the British Government. Now he was becoming the representative, not of the British Government, but of the king, who was king of Canada as well as of the United Kingdom, and, like the king, he governed by the advice of the responsible ministers in the land where he resided. This change in the governor-general's status marked the ending of the old colonial relationship. The appointment of a commissioner to represent to one free government the wishes of another free government was one of the first steps in building up the new relationship.

The initiative in the second step came from the United Kingdom. A change was now apparent in the attitude of many Englishmen upon imperial questions. The present value of the colonies, their possible greater value in the future, and the need of all the help that could be had from them, were coming to be the leading articles in the creed of many fervent thinkers. The Imperial Federation League, founded in London in 1884, gave vigorous expression to these views; and its Canadian branch, formed at Montreal in the next year, to be followed by local branches from sea to sea, exercised a strong influence on the current of Canadian thought.

The new desire to bind the colonies closer was largely due to the revival of protection and of imperialism both in the United Kingdom and in foreign countries. Alike in trade and in defence, colonial aid was by many coming to be felt essential. Abroad, protection was in the ascendant. Cobden's prophecy of the world following Britain's example in free trade had not been fulfilled. France, Germany, Austria-Hungary, Italy, Russia, the United States, were rearing higher tariffs, threatening to shut out British goods. Even Canada and Victoria had done likewise. Moreover, France and Germany and the United States were becoming formidable rivals to Britain, as they turned more and more from farming to manufacturing. It was little wonder that a section of English opinion began to sigh for protected markets, for retaliatory tariffs to force down bars abroad, and for a revival of the old preference or monopoly in the markets of the colonies.

Defence, too, assumed a more anxious aspect. The nations of Europe were entering on a mad scramble for empire, for colonial possessions overseas. Russia pushed steadily westward to the Pacific and south to the gates of India. France sought territory in Africa and in Asia, Germany in Africa and the Pacific, Italy in Africa. Nationalism had gone to seed in imperialism. Long prevented by internal dissensions from competing with England in the acquisition of territory, the nations of Europe, now that national consolidation had been largely effected, turned to follow her example. England could not logically object to their desire for territory or to their plans for larger navies. Her Palmerstons and Disraelis had boasted of the might of the empire on which the sun never set; her Froudes and Seeleys were singing the glories of the 'expansion of England'; the man in the street felt the manifest destiny of the Anglo-Saxon to rule the 'lesser breeds'; while the American Mahan had made clear the importance of sea-power and had pointed the means to the end so glorified. None the less the rivalry was felt uncomfortable, the more so as these nations did not follow Britain's free-trade policy in their new possessions, and sometimes manifested a lack of scruple which boded ill for future peace. And so from some quarters in Britain came the demand for colonial contributions to the Army and Navy, or failing that, for some form of imperial federation which would set up a central parliament with power to tax and to control.