CHAPTER III

INTERNAL POLITICS

Riel's treatment.

In treating of the Canadian Pacific railway, we have reached as far as 1885; it remains to deal with some other events of an earlier period. The Red river rebellion was mentioned in the last book, so far as it related to the annexation of Manitoba by the Dominion. The question of Riel's treatment proved one of considerable difficulty; the provinces of Quebec and Ontario being at issue on the question. The French Canadians felt great sympathy for their compatriot, even when they disapproved his proceedings, while, so fierce was the feeling against Riel in Ontario, that the Legislature, at the request of the provincial Prime Minister, Mr. Edward Blake, offered a reward of $5,000 for his apprehension. Meanwhile the matter had become further complicated by the action of the Lieutenant-Governor of Manitoba, Mr. Archibald, who, in consideration of services rendered by Riel in 1871, when there was a prospect of a Fenian invasion, gave what was afterwards construed as a promise of indemnity for the offences committed during the Red river rebellion. At the general election of 1874, Riel was returned to the Dominion Parliament, and though he was under indictment in Manitoba for the murder of Scott, attended at Ottawa, and subscribed the oath. But although the Conservative Government had no intention of proceeding against him, it was impossible to tolerate his presence in Parliament. A motion was agreed to ordering him to attend in his place on the next day, and on his failure to appear he was sum

marily expelled. Whatever the exact terms of the promises made him, it would seem that their meaning was rightly interpreted by Lord Carnarvon, who wrote to Lord Dufferin that there could not be the slightest doubt that the impression left upon the mind both of Archbishop Taché and of the delegates of the Provisional Government was that a full and unconditional amnesty would be granted to the rebels if they recognized the authority of the Dominion. He further pointed out that, while a murder such as that of Scott could not be allowed to go unpunished on the ground that it was connected with political disturbance, yet, in so far as it did result from political circumstances, those who were guilty of it might be deemed to have earned a merciful consideration through their subsequent good services to the State; and that for these services their lives should be spared.

It was finally decided, in 1875, to give a full amnesty to all connected with the rebellion with the exception of Riel and two others. One of these had been the author of the Fenian rising already mentioned, and for him no measure of leniency was proposed; but Riel and the other rebel, named Lepine, were sentenced to five years banishment. Lepine had been already arrested and, having been convicted of complicity in the murder of Scott, had been sentenced to death; but Lord Dufferin, on his own initiative and responsibility, had remitted the death penalty, substituting a two years' imprisonment and forfeiture of political rights. The royal instructions, at the time, told the GovernorGeneral to decide in the case of pardons after consulting his Ministers, but at the instance of the Canadian Government they were afterwards amended; and in 1878 Lord Lorne was instructed not to give pardons or reprieves without receiving, in capital cases, the advice of the Dominion Privy Council, and, in other cases, the advice of one at least of his Ministers. The Mackenzie Government, which came into power upon the defeat of Sir John Macdonald in November,

Situation

1873, fell upon evil days, their period of office being a time of bad harvests and trade depression. The sterling worth of the Prime Minister greatly impressed Lord Dufferin, who bore witness to his strict integrity, his pure patriotism, his indefatigable industry, and noble aspirations; but he was without the art of managing men, which was the special gift of his great opponent. Neither was he quick to read the signs of the times, which to others portended defeat. In the case of a young and growing community questions of trade and material development mainly occupy the attention of men, and it was on an issue relating to trade that the cloud gathered which was to burst upon the heads of the Government party.

We have already noticed that, in spite of the protest of after repu- those best qualified to give an opinion, the Reciprocity diation of reciprocity Treaty of 1854 came to an end in 1866. The energies treaty. of Canada had been for twelve years largely directed to the supply of the American market, and the repeal of the treaty made it imperative to find new customers. We have seen that the intercolonial railway was at once undertaken at a cost of over twenty million dollars to secure direct communication with Europe. Commissioners were dispatched to the West Indies and to South America to promote the extension of direct trade. Existing canals were enlarged, and the navigation of the lakes and of the St. Lawrence was improved; the Bay Verte Canal, to connect the waters of the Bay of Fundy with the St. Lawrence, was constructed; ocean and river steamship lines were subsidized, and the shipbuilding and fishing interests were actively encouraged.

Nevertheless, the loss of the American market was felt for years as a severe blow, and continuous, though ineffectual, attempts were made by Canada to renew the treaty. In 1874, after the accession of the Liberals to office, George Brown was appointed plenipotentiary to act along with the British Minister, Sir Edward Thornton, in the negotiation

of a new treaty. The Canadian Government was willing to grant unlimited reciprocity in natural products and a limited reciprocity in manufactures. But the schedule Negotiations by of manufactures was only to include articles not produced Brown. in or exported from Great Britain to Canada, together with such other articles as the Imperial and Dominion Governments may eventually agree upon, or as may, by mutual arrangement, be entered at a fixed duty to be specified in the treaty'. Brown proposed that Americans should have the free use of the fisheries for twenty-one years, and that the fisheries arbitration under the Treaty of Washington should be abandoned; that the coasting trade should be thrown open to the shipping of either country, that the Welland and St. Lawrence canals should be enlarged, and that the Canadian and American canals, about which there had been question, should be thrown. open to both nations. Vessels built in either country should be entitled to the advantages of registry in the other; and joint commissions were to be appointed with regard to the lighting of inland waters and the protection of the fisheries. Duties on manufactures, which were eventually to be admitted free, were to be reduced under a sliding scale of one-third each year until complete abolition.

A draft treaty for twenty-one years was at last, upon these terms, agreed upon by the negotiators; but it never even reached the stage of being openly discussed by the American Senate. President Grant's message when forwarding it was not very hopeful. He contented himself with the expression of a pious wish that the Senate might be able to agree to a treaty either in the form proposed or in such other form as might seem more acceptable. The Senate was about to adjourn when the draft treaty reached it. It was, however, taken up in secret session, and the curt answer was returned that it was inexpedient to proceed with its consideration.

What might have been the fiscal future of the Dominion

servatives

and

had its overtures been met with more favour it is impossible The Con- to say. Sir John Macdonald and the Conservative leaders knew the advantage of American reciprocity to the Canadian reciprocity. producer. Indeed, one of the alleged advantages of a policy of protection was that moving, as it ought to do, in the direction of reciprocity of tariff with our neighbours, so far as the varied interests of Canada may demand, it will greatly tend to procure for this country eventually reciprocity of trade'.

The National Policy.

But, for the time being, the failure of the attempt to come to terms with the United States naturally led to the demand for a fiscal system which should make Canada more independent of its difficult neighbour.

6

There is some conflict of evidence as to the manner in which Sir John Macdonald became identified with the policy of protection for national industries. Expressions in his early speeches can be quoted foreshadowing such a policy; while, on the other hand, he is represented as late as 1878 as saying: You need not fear that I am going into that hole.' Macdonald, no doubt, was first and foremost a very keen and skilled politician, as well as an ardent patriot on behalf both of Canada and of the Empire, and economic questions probably interested him only in so far as they aided his main objects. But since 1876 he had been steadily advocating some form of protection, and in March, 1878, he moved the memorable resolution, which ran as follows:

'That this House is of opinion that the welfare of Canada requires the adoption of a National Policy which, by a judicious readjustment of the tariff, will benefit and foster the agricultural, the mining, the manufacturing, and other interests of the Dominion; that such a policy will retain in Canada thousands of our fellow-countrymen now obliged to expatriate themselves in search of the employment denied them at home; will restore prosperity to our struggling industries, now so sadly depressed; will prevent Canada from being