On his return to Nova Scotia, Howe found that the extreme repealers in the local legislature were talking secession and hinting at annexation to the United States. He could countenance neither. The son of the Loyalist was loyal at the last. The whole province was like tinder. A spark would have kindled a fire that would have ruined it, or thrown it back ten or twenty years. Howe trampled the spark under his feet.

Meanwhile, in Ottawa, an unrivalled political tactician was watching the situation. While the fever in Nova Scotia was at its height, Sir John Macdonald had refused to say a word. Now that the fever had run its course, now that the one able leader of the repeal cause realized the impasse into which he had brought his beloved province, Macdonald saw that it was the time for him 'from the nettle danger to pluck the flower safety.' He entered into negotiations with Howe, employing all his art and all his sagacity. Clearly he put the choice. Nova Scotia was in the Dominion, and the only way out led direct to Washington. Was not the only possible course for the greatest Nova Scotian to sink his personal feelings, and to join in giving to Nova Scotia her due part in a nation stretching from sea to sea and from the Arctic to the Great Lakes, puissant and loyal beneath the flag of Britain?

Against this conclusion Howe fought hard. It meant for him an act of inconsistency which he well knew his recent allies would stigmatize as apostasy. But the logic of the situation was too strong for him, and with noble self-sacrifice he faced it. In January 1869 he entered the Cabinet of Sir John Macdonald, and by so doing won for Nova Scotia the better financial terms which removed her most tangible grievance. By this time most of the leaders of the repeal party were ready for this step, even though their followers were not. Had Howe sunk his egoism and consulted them before he crossed the Rubicon, had there been no telegraph between Ottawa and Halifax, so that he could have come personally and have been the first to explain to them the improved financial terms which he had won, and the necessity of his entering the Cabinet as a pledge of his sincerity, they would probably have been satisfied. But the telegraph spoiled all, especially as there were men in the local legislature who were fretting against his leadership. They felt themselves to be in a false position, from which they could escape by making Howe the scapegoat. For ten days the only fact that was made to stand out before all eyes was that the leader of the anti-confederate and repeal party had taken office under Sir John Macdonald. The cry was raised, Howe has sold himself; Howe is a traitor. They condemned him unheard. When he returned to Halifax, old friends crossed the street to avoid speaking to him, and young friends, who once would have felt honoured by a word, walked as close before or behind him as possible that he might hear their insults. He was getting old; during his labours in 1866 in England bronchitis had fastened on him; and now the love and trust of the people—that which had been the breath of his nostrils—failed him utterly.

Having accepted Cabinet rank, he had to resign his seat in Hants county, and to appeal to his constituents for re-election. The result was the fiercest fight in the history of the province. Money was openly lavished by both sides. Howe fought well, but his health gave way, and for the first time in his life his buoyancy and courage deserted him. Finally, at a little village where he and a prominent opponent were to face each other, Howe broke down, and sent a friend to ask his antagonist to postpone the meeting.

'Why must it be postponed?' was the reply.

'Sir, to speak to-night would kill Mr Howe.'

'Damn him! that's what we want,' was the fierce reply, symbolic of the merciless spirit of the contest.

Howe dragged himself to the platform, too ill to stand. Eventually he gained his election, but his health was shattered, and he was never the old Joe Howe again.

Then came the end. In the Cabinet he was not a success. He represented a small province with few votes, and even so he shared the leadership with Tupper. To Sir John Macdonald, too intent on a few great ends to have any place for unprofitable sentiment, the weary Titan was of less account than half a dozen Quebec or Ontario members with less than one-tenth of his ability, but with twice the number of votes in their control. Howe chafed under Macdonald's drastic though kindly sway, and by impetuous outbreaks more than once got the government into trouble. Late in 1869 he was sent to the Red River Settlement, in the hope of smoothing out the difficulties there. He did no good, still further weakened his health, and on his return was involved in a bitter quarrel with one of his colleagues, the Hon. William M'Dougall.

In 1872 he shared with Tupper the triumph of carrying in favour of the Conservative party eighteen of the nineteen seats in Nova Scotia, and of finally silencing the cry of repeal. In May 1873 his failing health led to his being appointed lieutenant-governor of Nova Scotia. He died suddenly on the 1st of June 1873.