The selection of Kingston by Lord Sydenham in 1840 as the seat of government of the united provinces of Canada was a boon to the town. Real property advanced in price, some handsome buildings were erected, apart from those used as public offices, and a general improvement in the matter of pavements, drains, and other public utilities became manifest. Meanwhile, however, Toronto had far outstripped its sometime rival. In 1824 the population of Toronto (then York) had been less than 1700, while that of Kingston had been about 3000, yet in 1848 Toronto counted 23,500 inhabitants to Kingston's 8400. Still, Kingston jogged along very comfortably, and Macdonald added steadily to his reputation and practice. On September 1, 1843, he formed a partnership with his quondam student Alexander Campbell, who had just been admitted to the bar. It was not long before Macdonald became prominent as a citizen of Kingston. In March 1843 he was elected to the city council for what is now a portion of Frontenac and Cataraqui wards. But a higher destiny awaited him.

The rebellion which had broken out in Lower Canada and spread to the upper province, while the future prime minister was quietly applying himself to business, had been suppressed. In Upper Canada, indeed, it had never assumed a serious character. Its leaders, or some of them at any rate, had received the reward of their transgressions. Lord Durham had come to Canada, charged with the arduous duty of ascertaining the cause of the grave disorders which afflicted the colony. He had executed his difficult task with rare skill, but had gone home broken-hearted to die, leaving behind him a report which will ever remain a monument no less to his powers of observation and analysis than to the clearness and vigour of his literary style.[[1]] The union of Upper and Lower Canada, advocated by Lord Durham, had taken place. The seat of government had been fixed at Kingston, and the experiment of a united Canada had begun.

We have seen that Macdonald, at the outbreak of the rebellion, hastened to place his military services at the disposal of the crown. On the restoration of law and order we find his political sympathies ever on the side of what used to be called the governor's party. This does not mean that at any time of his career he was a member of, or in full sympathy with, the high Toryism of the 'Family Compact.' In those days he does not even seem to have classed himself as a Tory.[[2]] Like many moderate men in the province, Macdonald sided with this party because he hated sedition. The members of the 'Family Compact' who stood by the governor were devotedly loyal to the crown and to monarchical institutions, while the violent language of some of the Radical party alienated many persons who, while they were not Tories, were even less disposed to become rebels.

The exacting demands of his Radical advisers upon the governor-general at this period occasionally passed all bounds. One of their grievances against Sir Charles Metcalfe was that he had ventured to appoint on his personal staff a Canadian gentleman bearing the distinguished name of deSalaberry, who happened to be distasteful to LaFontaine. In our day, of course, no minister could dream of interfering, even by way of suggestion, with a governor-general in the selection of his staff. In 1844, when the crisis came, and Metcalfe appealed to the people of Canada to sustain him, Macdonald sought election to the Assembly from Kingston. It was his 'firm belief,' he announced at the time, 'that the prosperity of Canada depends upon its permanent connection with the mother country'; and he was determined to 'resist to the utmost any attempt (from whatever quarter it may come) which may tend to weaken that union.' He was elected by a large majority.

In the same year, the year in which Macdonald was first elected to parliament, another young Scotsman, likewise to attain great prominence in the country, made his début upon the Canadian stage. On March 5, 1844, the Toronto Globe began its long and successful career under the guidance of George Brown, an active and vigorous youth of twenty-five, who at once threw himself with great energy and conspicuous ability into the political contest that raged round the figure of the governor-general. Brown's qualities were such as to bring him to the front in any labour in which he might engage. Ere long he became one of the leaders of the Reform party, a position which he maintained down to the date of his untimely death at the hands of an assassin in 1880. Brown did not, however, enter parliament for some years after the period we are here considering.

The Conservative party issued from the general elections of 1844 with a bare majority in the House, which seldom exceeded six and sometimes sank to two or three. Early in that year the seat of government had been removed from Kingston to Montreal. The first session of the new parliament—the parliament in which Macdonald had his first seat—was held in the old Legislative Building which occupied what was afterwards the site of St Anne's Market. In those days the residential quarter was in the neighbourhood of Dalhousie Square, the old Donegana Hotel on Notre Dame Street being the principal hostelry in the city. There it was that the party chiefs were wont to forgather. That Macdonald speedily attained a leading position in the councils of his party is apparent from the fact that he had not been two years and a half in parliament when the prime minister, the Hon. W. H. Draper, wrote him (March 4, 1847) requesting his presence in Montreal. Two months later Macdonald was offered and accepted a seat in the Cabinet.

Almost immediately after Macdonald's admission to the Cabinet, Draper retired to the bench. He was succeeded by Henry Sherwood, a scion of the 'Family Compact,' whose term of office was brief. The elections came on during the latter part of December, and, as was very generally expected,[[3]] the Sherwood Administration went down to defeat. In Lower Canada the Government did not carry a single French-Canadian constituency, and in Upper Canada they failed of a majority, taking only twenty seats out of forty-two. In accordance with the more decorous practice of those days, the Ministry, instead of accepting their defeat at the hands of the press, met parliament like men, and awaited the vote of want of confidence from the people's representatives. This was not long in coming; whereupon they resigned, and the Reform leaders Baldwin and LaFontaine reigned in their stead.

The events of the next few years afford a striking example of the mutability of political life. Though this second Baldwin-LaFontaine Administration was elected to power by a large majority—though it commanded more than five votes in the Assembly to every two of the Opposition—yet within three years both leaders had withdrawn from public life, and Baldwin himself had sustained a personal defeat at the polls. The Liberal Government, reconstituted under Sir Francis Hincks, managed to retain office for three years more; but it was crippled throughout its whole term by the most bitter internecine feuds, and it fell at length before the assaults of those who had been elected to support it. The measure responsible more than any other for the excited and bitter feeling which prevailed was the Rebellion Losses Bill. There is reason to believe that the members of the Government, or at any rate the Upper-Canadian ministers, were not at any time united in their support of the Bill. But the French vehemently insisted on it, and the Ministry, dependent as it was on the Lower-Canadian vote for its existence, had no choice. The Bill provided, as the title indicates, for compensation out of the public treasury to those persons in Lower Canada who had suffered loss of property during the rebellion. It was not proposed to make a distinction between loyalists and rebels, further than by the insertion of a provision that no person who had actually been convicted of treason, or who had been transported to Bermuda, should share in the indemnity. Now, a large number of the people of Lower Canada had been more or less concerned in the rebellion, but not one-tenth of them had been arrested, and only a small minority of those arrested had been brought to trial. It is therefore easy to see that the proposal was calculated to produce a bitter feeling among those who looked upon rebellion as the most grievous of crimes. It was, they argued, simply putting a premium on treason. The measure was fiercely resisted by the Opposition, and called forth a lively and acrimonious debate. Among its strongest opponents was Macdonald. According to his custom, he listened patiently to the arguments for and against the measure, and did not make his speech until towards the close of the debate.

Despite the protests of the Opposition, the Bill passed its third reading in the House of Assembly on March 9, 1849, by a vote of forty-seven to eighteen. Outside the walls of parliament the clamour grew fiercer every hour. Meetings were held all over Upper Canada and in Montreal, and petitions to Lord Elgin, the governor-general, poured in thick and fast, praying that the obnoxious measure might not become law. In Toronto some disturbances took place, during which the houses of Baldwin, Blake, and other prominent Liberals were attacked, and the Reform leaders were burned in effigy.