The question was, Who was to succeed? In the ordinary course Mr. Foley, the a.s.sumed leader of the Opposition, would have been sent for. It was the opinion of the Honorable John Ross that he ought to have been. But the Governor, considering, I suppose, that the scanty majority was led by Sandfield Macdonald, sent for him. All sides believed that it would be a ministry of a month. But this astute descendant of Highlanders managed to stay in for nearly two years: two years of no good: two years of plausible postponement of all that the Duke had been so loyally working for in the interest of Canada. Personally, I had no reason to complain as regarded Grand Trunk legislation. Sandfield Macdonald promised to carry our Bill, and he honourably fulfilled his promise. The Bill pa.s.sed; Lady Watkin and I sailed from Boston for England on the 7th June.

But the refusal of the Canadian Parliament to vote money for defence had created a very bad impression in England. England had made large sacrifices in filling Canada with troops and stores, at a critical time--and it was naturally said, in many quarters, "Are these people cowards? Are they longing for another rule?" Sir E. Bulwer Lytton, when Mr. Rose and I called upon him at his lodgings, in St. James's Place, during my short stay in London, said, "I do not see what we can do. Had Canada helped us at all, we could have succeeded. Now every one will say, What is the use of helping such people?" And Mr. Disraeli said, in the House, answering a statement that the vote of the Canadian Parliament did not represent the feeling of the people: "I decline to a.s.sume that the vote of a popular a.s.sembly is not the vote of those they represent." All this was awkward. But I resolved I would never give in. So I went to Canada again in the autumn of 1862.

Mr. Joseph Howe came from Halifax to Canada to meet me. He did all he could to induce Sandfield Macdonald to settle the long out-standing postal claim on Canada of the Grand Trunk; but in vain. He never would settle it, just and honest as it was. Mr. Howe tried to induce the Government to take up the Intercolonial question where we had left it in the previous autumn: and in this he so far succeeded that it was agreed a delegation from Canada should meet delegations from Nova Scotia and New Brunswick before the end of this year--1862--in London.

Messrs. Howland and Sicotte were the Canadian delegates; Mr. Howe for Nova Scotia, and Mr. Tilley for New Brunswick. We set to work to carry both the Intercolonial guarantee, and the Pacific transit scheme, the moment these gentlemen arrived in England.

Meeting Messrs. Rowland and Sicotte at their hotel, in Jermyn Street, on the 2nd December, 1862, and discussing matters all round, they certainly led me, unsuspectingly, to believe they had the same desire to carry the Intercolonial as that entertained by Messrs. Howe and Tilley; and further, that if a road and telegraph project could be carried on the broad lines laid down in so many discussions, their arrangements on both questions would be cordially welcomed and approved by their colleagues. I very soon found out, however, that they were "riding to orders," and those orders, no doubt, being interpreted, were: "Refuse nothing, discuss everything, but do nothing."

On the 8th December we met the Canadian delegates at the bank of Messrs. Glyn, in Lombard Street, and we drew up a proposal, which these gentlemen corrected. We adopted their corrections and sent in the paper, as an agreed paper, to the Duke.

Two days afterwards, for better a.s.surance, we received the following memorandum:--

"With a view of better enabling the gentlemen whom they met yesterday at 67, Lombard Street, to take immediate measures to form a Company for the object of carrying out the construction of a telegraph line, and of a road to establish frequent and easy communication between Canada and the Pacific, and to facilitate the carrying of mails, pa.s.sengers, and traffic, the undersigned have the honour to state, that they are of opinion that the Canadian Government will agree to give a guarantee of interest at the rate of four per cent, upon one-third of the sum expended, provided the whole sum does not exceed five hundred thousand pounds, and provided also that the same guarantee of interest will be secured upon the other two-thirds of the expenditure by Imperial or Columbian contributions.

"If a Company composed of men of the standing and wealth of those they had the pleasure to meet is formed for the above purposes, under such conditions as will secure the interests of all parties interested, and the accomplishment of the objects they have in view, such an organization will be highly favourable to the settlements of an immense territory, and, if properly administered, may prove to be also of great advantage to the trade of England.

"London, 10 Decr. 1862.

"L. V. SICOTTE, "W. P. HOWLAND.

"To MM.

Glyn, Benson, Chapman, Newmarsh, Watkin, &c. &c. &c."

A few days afterwards these Canadian delegates started an objection.

The Imperial Government merely gave land and did not take one-third of the proposed guarantee, and the following further memorandum was sent to me:--

"Although little disposed to believe that Her Majesty's Government will not accede to the proposal of co-operation they have made in relation to the opening of communication from Canada to the Pacific, the undersigned have the honour to state, in answer to the letter of Mr.

Watkin of the 17th instant, that in their opinion the Government of Canada will grant to a Company organised as proposed in the papers already exchanged, a guarantee of interest, even on one-half of the capital stated in these doc.u.ments, should the Imperial Government refuse to contribute any portion of this guaranteed sum of interest.

"In answer to another demand made in the same letter, the undersigned must state that the guarantee of the Canadian Government of this payment of interest ought to secure the moneys required at the rate of four per cent, and that they will not advise and press with their colleagues a higher rate of interest as the basis of the arrangement.

"London, 20 December, 1862.

"L. V. SICOTTE, "W. P. ROWLAND.

"ED. WATKIN, Esq., London."

So much, and so far, for the Pacific affair. But in the Intercolonial discussion there was an undercurrent. The only points left for discussion with the Duke and Mr. Gladstone were the question of survey, which was easily settled, and the question of a sinking fund for the loan to be made on the credit of Great Britain. At first Mr. Gladstone insisted on such a short term of repayment, and therefore so heavy a put-by, that his terms took away the pecuniary value of the guarantee itself: that is to say, that what the Colonies would have annually to pay, would have amounted to more than the annual sum for which they could have borrowed the money themselves. I suggested a longer term, and also, that the interest on the annual put-by, to acc.u.mulate, should be altered so as to alleviate the burden. In answer to a letter written with the a.s.sistance of Messrs. Howe and Tilley, I received the following from the Duke:--

"CLUMBER, "8 _Decr_. 1862.

"MY DEAR SIR,

"I am sorry to say your letter confirms the impression I have entertained from my first interview with the Canadian delegates--an impression strengthened by each subsequent meeting--that Mr. Sicotte is a traitor to the cause he has come over to advocate. I am unable to make out whether he is playing false on his own account or by order of his colleagues; but I cannot say I have any reason to a.s.sociate Mr.

Howland with the want of faith in any dealings with me.

"You can have no idea how I have been compelled to forbear and to fence with Mr. S. to prevent his breaking off upon every possible occasion and upon any almost impossible pretext. His whole aim has been to find some excuse for throwing up the railroad and saying it was the act of the Imperial Government. As for Mr. Gladstone being 'all powerful,' he knows that in the financial details alone Mr. G. interferes, and I presume Mr. Rowland would tell him that this is the duty of a Finance Minister.

"Nothing struck me more than Mr. S.'s objection to _your_ being present at our meetings. When you did 'drop in' I felt obliged to say nothing about it till your card was brought, and on that occasion I particularly remarked that his usual obstructiveness was suspended.

"The _one_ point now in dispute between the delegates and the Treasury is really of no importance to either party. I hope and expect that Mr. G. will give way; but I suspect if he does Mr. S. will be (by no means for the first time) much disappointed.

"Have you seen a remarkable letter in the 'Standard' of the 6th, signed 'A British Canadian,' commenting upon Mr. Sicotte going over to Paris and dictating to the editor of 'La France' an article upon a despatch of mine to Canada on the subject of the Militia? The article in 'La France' can _only_ come from _a_ member of the present Canadian Government.

"Do not at present get up any new deputation or go to Lord Palmerston.

Considering Mr. G.'s strong opposition to the whole scheme on principle, I cannot say I think he has shown any desire to thwart by obstacles in details a measure upon which his views have been overruled, and it would be ungracious to show distrust where none at present has been merited. I may differ with him on some points; but he has certainly conceded more to me than I to him, and I could be no party to attempting to supersede his proper functions of the financial watch-dog!

"I am anxious not to be brought up to town _unnecessarily_, for I am conscious that I want _comparative_ rest, and that my health is not very fit for the commencement of a Session; but whenever you are pa.s.sing between London and Manchester I shall always be happy to see you, and glad if you can stay a day or two--only invite yourself.

"Yours very sincerely, "NEWCASTLE."

The next day I had the following:--

"CLUMBER, "9 _Decr_. 1862.

"MY DEAR SIR,

"It is no easy matter to give any advice as to what should be done, especially as I do not know whether Mr. Gladstone is still in London, though I rather imagine he has left for Hawarden.

"If Mr. Sicotte were anywhere but here (where he never ought to have been), I should advise Messrs. Howe and Tilley to see Mr. Gladstone, perhaps with you; but I can neither recommend them to see him _with_ or _without_ Mr. Sicotte, so long as he is here.

"As I wrote to you yesterday, the business ought to have been closed three days ago, for though I think. Mr. Gladstone's stipulation wrong, it ought not to have been allowed to interfere with a final arrangement.

"I agree with you that the new phrase about an 'uncovered loan' is not very intelligible, but I put the same interpretation upon it that you do.

"I am not without hope that whilst I am writing some 'leeway' may have been recovered through Sir F. Rogers and Mr. Anderson, but, as the best thing I can do, I propose this:

"I _ought_ to go down to Surrey, to attend Mrs. Hope's funeral on Thursday morning, but being far from well, I was inclined to excuse myself from so long a railway journey, which I find injurious, but my decision is altered by your difficulty. I will be at Thomas' Hotel to- morrow night at 10 o'clock, if you can meet me at that time, and if you like to appoint Howe and Tilley a quarter of an hour later, I will see them and discuss what we ought to do.

"I feel very confident we can yet set matters right, if we can only prevent Mr. Sicotte upsetting the coach.

"I cannot see you on Thursday, as, being in London, I must go by the 9 a.m. train to attend the funeral at Deep Dene, and I may be late in returning to town in the evening.

"I am, yours sincerely, "NEWCASTLE."

_Memorandum from my diary of 10th December, 1862._

"To the Duke (_of Newcastle_), at 10 p.m.--(Thomas Hotel), by request. Saw Howe (_representing Nova Scotia_), and Tilley (_representing New Brunswick_)after. Very satisfactory. Duke said Gladstone had expressed strong approval of Pacific, &c. affair--and had added, 'that it was one of the grandest affairs ever conceived, and he hoped it would be completed in Duke's time--and it should have his hearty support.' Good."

Messrs. Sicotte and Rowland suddenly went home, and we appeared to be at a dead lock. After several letters and suggestions, the Duke sent me this letter:--