In 1875 the Mechanics Bank and the Banque Jacques Cartier suspended payment. The industries were very few and could not compete with those of the States, and agriculture was feeble. There were heavy duties to pay for the many goods coming from the States. There was little population and many crossed the border line. Work was scarce; there was great distress. People were starving and free public soup kitchens were established for poor relief by the charitable agencies. Funds were too low for more liberal treatment. Politicians placed the blame on the free trade policy of Mr. McKenzie’s party then in power. This was opposed to the genius and the needs of a young country feeling its industrial way. While the Americans had a duty at that time of twenty to seventy per cent the Canadians for purely revenue purposes had only something like fifteen per cent, and nothing for protection. The occasion was one that demanded practical relief and not finely strung political theories, built on the experience of the custom prevailing in England. But nothing was done so that the people became hopeless and gloomy and there was a project about this time, as already recorded, for annexation, encouraged by the American party in Montreal for business reasons.
Meanwhile the city saw, in June and July, of 1878, the Orange troubles and the shooting of Hackett, a state of excitement no doubt caused by the general unsettled state of affairs. The great hope of this time was the national policy which Sir John A. Macdonald began to make public. The effect was magical at the start. In March, 1878, he expressed his opinion that to be prosperous Canada must adopt a “national policy” for the protection of home industries. It had to be fought out at the polls. There was now hope in every breast. Financial men began to look out for sites upon which to build mills and factories, the sugar refineries were reopened, the people took heart and when the policy carried at the polls in September by a tremendous majority and was ratified by a formal vote in the house, and when the national policy was introduced March 14, 1879, going into effect next day, it was felt that Montreal and Canada were saved. It was the remembrance of this that caused the older men to vote against reciprocity when before the public in 1911.
A social event of this year was the investiture by the Marquis of Lorne, Governor-General of Canada, authorized by Her Majesty, of the six knights of the most distinguished Order of St. Michael and St. Gregory.
On January 1, 1880, the South Eastern Railway began the construction of a railway across the ice from the north side of the river to the station between Bellerive Park and Longueuil Ferry, across to Longueuil. The contractors were Auguste Laberge & Son, who had built the city hall, its promoters being Mr. Sénecal, A.B. Foster, Judge Mousseau, J.B. Renaud and others. On the 29th of January loaded cars were drawn across to Montreal. Next day an engine of 50,000 pounds avoirdupois crossed from Montreal. On March 15th horses replaced the engines; on March 31st twenty cars were on the ice railway, when it began to be found insecure so that the rails were removed from the ice on April 1st.
In September the Governor General visited the exhibition at Montreal, when 50,000 persons were present.
On October 1st the contract was signed for the Canadian Pacific Railway, but at midnight on December 10th it was placed before the House. On February 16th of the next year the company received its letters patent and on May 2d broke the first ground for the great transcontinental railway.
On December 23d of this year Sarah Bernhardt made her first appearance here.
On January 5th, 1881, the South Eastern Railway laid a railway again across the ice but it was shortly abandoned on the loss of an engine by the freight train breaking through, without the loss of life.
The next year, 1882, was one of intellectual progress in the city for this year, on May 25th, the Royal Society of Montreal was formed with Sir William Dawson, principal of McGill, as president.
On August 21st there were the meetings of the Forestry and Agricultural congresses and on August 23d the American Association for the Advancement of Learning again chose the city for its convention after twenty-four years’ absence.