A result of this correspondence has been the definite refusal of the Crown to renew the exclusive license to trade in Indian territory. The license had been twice granted to the Company, under an act of Parliament authorizing it, for periods of twenty-one years,—once in 1821, and again in 1838. It expired on the 30th of May, 1859. In consequence of this refusal, the Company must depend exclusively upon the terms of their charter for their special privileges in British America. The charter dates from 1670,—a grant by Charles II. to Prince Rupert and his associates, "adventurers of England, trading into Hudson's Bay,"—and is claimed to give the right of exclusive trade and of territorial dominion to Hudson's Bay and tributary rivers. By the expiration of the exclusive license of Indian trade, and the termination in 1859 of the lease of Vancouver's Island from the British government, the sway and influence of the Company are greatly restricted, and the feasibility of some permanent adjustment is proportionately increased.

There is no necessity for repeating here the voluminous argument for and against the charter of the Hudson's Bay Company. The interest of British colonization in Northwest America far transcends any technical inquiry of the kind, and the Canadian statesmen are wise in declining to relieve the English cabinet from the obligation to act definitely and speedily upon the subject. The organization of the East India Company was no obstacle to a measure demanded by the honor of England and the welfare of India; and certainly the parchment of the Second Charles will not deter any deliberate expression by Parliament in regard to the colonization of Central British America. Indeed, the managers of the Hudson's Bay Company are always careful to recognize the probability of a compromise with the government. The late letter of Mr. Barens to Lord Caernarvon expressed a willingness, at any time, to entertain proposals for the surrender of franchises or territory; and in 1848, Sir J.H. Pelly, Governor of the Company, thus expressed himself in a letter to Lord Grey:—"As far as I am concerned, (and I think the Company will concur, if any great national benefit would be expected from it,) I would be willing to relinquish the whole of the territory held under the charter on similar terms to those which it is proposed the East India Company shall receive on the expiration of their charter,—namely, securing the proprietors an interest on their capital of ten per cent."

At the adjournment of the Canadian Parliament and the retirement of the
Derby Ministry, in the early part of 1859, the position and prospects of
English colonization in Northwest America were as follows:—

1. Vancouver's Island and British Columbia had passed from the occupation of the Hudson's Bay Company into an efficient colonial organization. The gold-fields of the interior had been ascertained to equal in productiveness, and greatly to exceed in extent, those of California. The prospect for agriculture was no less favorable,—while the commercial importance of Vancouver and the harbors of Puget's Sound is unquestionable.

2. The eastern slope of the Rocky Mountains and the valleys of the Saskatchewan and Red River were shown by explorations, conducted under the auspices of the London Geographical Society and the Canadian authorities, to be a district of nearly four hundred thousand square miles, in which a fertile soil, favorable climate, useful and precious minerals, fur-bearing and food-yielding animals, in a word, the most lavish gifts of Nature, constituted highly satisfactory conditions for the organization and settlement of a prosperous community.

3. In regard to the Hudson's Bay Company, a disposition prevailed not to disturb its charter, on condition that its directory made no attempts to enforce an exclusive trade or to interfere with the progress of settlements. All parties anticipated Parliamentary action. Letters from London spoke with confidence of a bill, drafted and in circulation among members of Parliament, for the erection of a colony between Lakes Superior and Winnipeg and the eastern limits of British Columbia, with a northern boundary resting on the parallel of 55°; and which, although postponed by a change of ministry, was understood to represent the views of the Duke of Newcastle, the successor of Sir E.B. Lytton.

4. In Canada West, a system of communication from Fort William to Fort Garry, and thence to the Pacific, was intrusted to a company—the "Northwest Transit"—which was by no means inactive. A mail to Red River, over the same route, was also sustained from the Canadian treasury; and Parliament, among the acts of its previous session, had conceded a charter for a line of telegraph through the valleys of the Saskatchewan, with a view to an extension to the Pacific coast, and even to Asiatic Russia.

Simultaneously with these movements in England and Canada, the citizens of the State of Minnesota, after a winter of active discussion, announced a determination to introduce steam-navigation on the Red River of the North. Parties were induced to transport the machinery and cabins, with timber for the hull of a steamer, from the Upper Mississippi, near Crow Wing, to the mouth of the Cheyenne, on the Red River, where the boat was reconstructed. The first voyage of the steamer was from Fort Abercrombie, an American post two hundred miles northwest of Saint Paul, down north to Fort Garry, during the month of June. The reception of the stranger was attended by extraordinary demonstrations of enthusiasm at Selkirk. The bells of Saint Boniface rang greeting, and Fort Garry blasted powder, as if the Governor of the Company were approaching its portal. This unique, but interesting community, fully appreciated the fact that steam had brought their interests within the circle of the world's activities.

This incident was the legitimate sequel to events in Minnesota which had transpired during a period of ten years. Organized as a Territory in 1849, a single decade had brought the population, the resources, and the public recognition of an American State. A railroad system, connecting the lines of the Lake States and Provinces at La Crosse with the international frontier on the Red River at Pembina, was not only projected, but had secured in aid of its construction a grant by the Congress of the United States of three thousand eight hundred and forty acres a mile, and a loan of State credit to the amount of twenty thousand dollars a mile, not exceeding an aggregate of five million dollars. Different sections of this important extension of the Canadian and American railways were under contract and in process of construction. In addition, the land-surveys of the Federal government had reached the navigable channel of the Red River; and the line of frontier settlement, attended by a weekly mail, had advanced to the same point. Thus the government of the United States, no less than the people and authorities of Minnesota, were represented in this Northwest movement.

Still, its consummation rests with the people and Parliament of England. Sir Edward Bulwer Lytton was prepared with a response to his own memorable query,—"What will he do with it?" Shall the Liberal party be less prompt and resolute in advancing the policy, announced from the throne in 1858, of an uninterrupted series of British colonies across the continent of North America? This will be determined by the Parliamentary record of 1860.