Who was to succeed him? For the moment the leadership was put into commission, a committee of eight being nominated to tide matters over.

The Ontario Liberals had always been the backbone of the party, and among them Sir Richard Cartwright and David Mills stood pre-eminent in experience and ability. Yet it was neither of these veterans whom Mr Blake recommended to the party 'caucus' as his successor, but Wilfrid Laurier; and on the motion of Sir Richard Cartwright, seconded by Mr Mills, Mr Laurier was unanimously chosen as the new chieftain.

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It was with much difficulty that Mr Laurier was induced to accept the leadership. On both personal and political grounds he hesitated. He had his share of ambition, but he had never looked for more than success in his profession and a place in politics below the highest.

It was not that he underestimated the greatness of the honour; on the contrary, it was his high sense of the responsibilities of the post that gave him pause. He was not of strong physique, and he knew that the work meant ceaseless strain and pressure. Though his profession now gave him an ample income, he was not a rich man, and much if not most of his law practice would have to be abandoned if he became leader;[1] and parliament had not yet awakened to the need of paying the leader of the Opposition a salary.

On political grounds he was still more in doubt. Would Canada, would the one-time party of George Brown, welcome a leader from the minority?

The fires of sectional pa.s.sion were still raging. In Ontario he would be opposed as a French Canadian and a Catholic, the resolute opponent of the Government on the Riel question. And though it might be {93} urged that the pendulum was swinging toward the Liberals in Quebec, while in Ontario they were making little ground, the irony of the situation was such that in Quebec he was regarded with suspicion, if not with open hostility, by the most powerful and aggressive leaders of the Church.

Yet the place he had won in parliament and in the party was undeniable.

His colleagues believed that he had the ability to lead them out of the wilderness, and for their faith he accepted. At first he insisted that his acceptance should be tentative, for the session only; but by the time the session ended the party would not be denied, and his definite succession to the leadership was announced.

The Canada of 1887, in which Wilfrid Laurier thus came to high and responsible position, was a Canada very different from the land of promise familiar to young Canadians of the present generation. It was a Canada seething with restlessness and discontent. The high hopes of the Fathers of Confederation had turned to ashes. On every hand men were saying that federation had failed, that the new nation of their dream had remained a dream.

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At Confederation men had hoped that the Dominion would take high place in the Empire and among the nations of the world. Yet, twenty years later, Canada remained unappreciated and unknown. In Great Britain she was considered a colony which had ceased to fulfil the princ.i.p.al functions of the traditional colony, and which would probably some day go the way of all colonies: in the meantime the country was simply ignored, alike in official and in private circles. In the United States, in those quarters where Canada was given a thought at all, curious misconceptions existed of her subordination to Great Britain, of her hopelessly Arctic climate, and of her inevitable drift into the arms of the Republic. Elsewhere abroad, Canada was an Ultima Thule, a barren land of ice and snow, about as interesting and important as Kamchatka and Tierra del Fuego, and other outlying odds and ends of the earth which one came across in the atlas but never thought of otherwise.

Twenty years earlier glowing pictures had been painted of the new heights of honour and of usefulness which the new Dominion would afford its statesmen. The hard reality was the Canada of gerrymanders and political {95} trickery, of Red Parlor funds and electoral bribery.

The canker affected not one party alone, as the fall of Mercier was soon to show. The whole political life of the country to sank low and stagnant levels, for it appeared that the people had openly condoned corruption in high places, and that lavish promises and the 'glad hand'

were a surer road to success than honest and efficient administration.

Sectional discontent prevailed. That the federation would be smashed 'into its original fragments' seemed not beyond possibility. We have seen that a racial and religious feud rent Ontario and Quebec. Nova Scotia strained at the leash. Her people had never forgotten nor forgiven the way in which they had been forced into Confederation.

'Better terms' had failed to bribe them into fellowship. A high tariff restricted their liberty in buying, and the home markets promised in compensation had not developed. In the preceding year the provincial legislature had expressed the prevalent discontent by flatly demanding the repeal of the union.

Manitoba chafed under a thirty-five per cent tariff on farm implements, and complained of the retention by the Dominion of the vacant lands in the province. And her {96} grievances in respect to transportation would not down. The Canadian Pacific Railway had given the much desired connection with the East and had brought tens of thousands of settlers to the province, but it had not brought abiding prosperity or content. The through rate on wheat from Winnipeg to Montreal was ten cents a bushel more than from St Paul to New York, an equal distance; and, from the farm to Liverpool, the Minnesota farmer had fifteen cents a bushel the advantage of his Manitoba neighbour. Local rates were still heavier. 'Coal and lumber and general merchandise cost from two to four times as much to ship as for equal distances in the eastern provinces.'[2]

Why not bring in compet.i.tion? Because the Dominion Government blocked the way by its veto power. In the contract with the Canadian Pacific Syndicate a clause provided that for twenty years the Dominion would not authorize a competing road between the company's main line and the United States border running south or southeast or within fifteen miles of the boundary; it was provided also that in the formation of any new provinces to {97} the west such provinces should be required to observe the same restriction. It was urged by the railway authorities that foreign investors had demanded a monopoly as the price of capital, and that without the a.s.surance of such a monopoly the costly link to the north of Lake Superior could never have been built. The terms of the contract did not bar Manitoba from chartering railways: the Dominion had indeed no power to forbid it in advance, and it was explicitly stated by Sir John Macdonald at the time that Manitoba was not affected. Yet when Manitoba sought to charter one railway after another, the Dominion disallowed every act and repeatedly declared that it would use its veto power to compel Manitoba to trade with the East and by the Canadian Pacific Railway. A more effective means of stirring up ill-feeling between East and West and of discouraging immigration to the prairies could hardly have been devised.

Against these conditions Manitoba protested as one man. The Winnipeg Board of Trade denounced the policy of 'crushing and trampling upon one hundred thousand struggling pioneers of this prairie province to secure a purely imaginary financial gain to one soulless corporation.' Every Conservative candidate {98} for the House of Commons in the province pledged himself to vote for a motion of want of confidence if the Macdonald Government persisted in its course. The Conservative administration of the province was overthrown because it did not go fast or far enough in the fight. At last, in 1888, Ottawa gave way and bought off the Canadian Pacific by a guarantee of bonds for new extensions. After some further negotiations the Northern Pacific was brought into Canada; and if this did not work all the miracles of cheap rates that had been expected, Manitoba at least knew now that her ills were those which had been imposed by nature and geography and not by her sister provinces.

It was not only in Manitoba that economic depression prevailed, though nowhere else were the grievances so concrete and so irritating.

Throughout the Dominion the brief gleam of prosperity which dawned with the eighties had vanished. After the completion of the Canadian Pacific Railway stagnation was everywhere the rule. Foreign trade, which had reached a total of $217,000,000 in 1873, was only $230,000,000 in 1883 and $247,000,000 in 1893; these were, however, years of falling prices. Bank discounts, the {99} number of tons of freight moved, and other records of general business activity showed creeping progress and sometimes actual falling back. Homestead entries had risen to nearly seventy-five hundred in 1882, when the construction of the Canadian Pacific was bringing on the first western boom, but a great part of these had been cancelled, and up to the middle nineties entries averaged fewer than three thousand a year in the whole vast West.

The movement of population bore the same melancholy witness. Even the West, Manitoba and the North-West Territories, grew only from 180,000 in 1881 in 250,000 in 1891, whereas Dakota alone grew from 135,000 to 510,000 in the same period. The Dominion as a whole increased at less than half the rate of the United States, and Sir Richard Cartwright had little difficulty in establishing the alarming fact that in recent years one out of every four of the native-born of Canada had been compelled to seek a home in the Republic, and that three out of every four immigrants to Canada had followed the same well-beaten trail.

There were in 1890 more than one-third as many people of Canadian birth and descent in the United States as in Canada itself. Never in the world's history, save in {100} the case of crowded, famine-stricken, misgoverned Ireland, had there been such a leakage of the brain and brawn of any country.

Perhaps no incident reveals more clearly the stagnation and lack of constructive courage of this period than the break-down of the negotiations carried on in 1895 for the entrance of Newfoundland, then still more nearly bankrupt, into Confederation, because of the unwillingness of the Canadian Government to meet the financial terms Newfoundland demanded. For the sake of a difference of fifty thousand dollars a year the chance to round out the Dominion was let slip, perhaps never to recur. Ten years later fifty thousand a year looked small. To each generation the defects of its qualities; in one prudence degenerates into parsimony, in another courage runs wild in extravagance.

[1] After 1887 he rarely, and after 1892 never, appeared in court.

[2] _Plain Facts regarding the Disallowance of Manitoba Railway Charters_, by the Winnipeg Board of Trade.

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CHAPTER VI

LOOKING TO WASHINGTON

Canada and the States--The fisheries dispute--Political union--Commercial union--Unrestricted reciprocity--Jesuits'

estates--Unrestricted reciprocity

For desperate ills, desperate remedies. It is little wonder that policies looking to revolutionary change in political or commercial relations now came to take strong hold on the public mind. To many it appeared that the experiment in Canadian nationality had failed. Why not, then, frankly admit the failure and seek full political incorporation with either of the great centres of the English-speaking people, of whose political prestige and commercial success there was no question? Annexation to the United States, Imperial Federation, with a central parliament in the United Kingdom, each found a small but earnest company of supporters. Or, if the ma.s.s of the people shrank from one and held the other an impracticable dream, why not seek the closest possible commercial tie with either nation? Thus Commercial Union, or a _zollverein_ between Canada and the United {102} States, and Imperial Preferential Trade, or a _zollverein_ between Canada and the United Kingdom and the other parts of the British Empire, came into discussion. What British and American conditions and opinion met these Canadian movements, and what changes were made in the programmes first urged, may next be reviewed. Canadian relations with the United States will be noted first.

In the decade from 1886 to 1896, when the Venezuela episode opened a valve for the steam to blow off, the relations between Canada and the United States were continuously at high tension. It was an era of friction and pinp.r.i.c.ks, of bl.u.s.ter and retaliation. The United States was not in a conciliatory mood. It was growing in wealth and numbers and power, in unprecedented ways. Its people were one and all intensely proud of their country and satisfied with themselves. The muckraker had not yet lifted his voice in the land. The millionaire was still an object of pride and emulation, _Exhibit A_ in the display of American superiority over all creation. No foreign danger threatened, no foreign responsibility restrained the provincial swagger. In short, the United States was 'feeling its oats.'

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Towards Great Britain it was specially p.r.o.ne to take an aggressive att.i.tude. Still fresh was the memory of 1776 and 1812, fed by text-book rhetoric and thrown into relief by the absence of other foes.

Still rankled the hostility of the official cla.s.ses of Great Britain during the Civil War and Tory attacks upon American manners and American democracy. Irish-Americans in millions cherished a natural if sometimes foolishly directed hatred against the country that had misgoverned Erin and made it lose half its people. The rejection of Home Rule by the House of Commons in 1886, confirmed by the results of the general elections which followed, intensified this feeling.

Canada, the nearest British territory, had to bear much of this ill-will, though she had no share of responsibility for its creation, just as she had borne the brunt of invasion in wars which were none of her making.

There were, however, other sources of trouble for which Canada was more directly responsible. She had followed the example of the United States in setting up a high tariff wall. Inevitably the adoption of protection by both countries led to friction. The spirit of which it was born and which in turn it {104} nourished, the belief that one country found its gain in another's loss, made for jealousy, and the rankling sense on Canada's part that her policy had not succeeded made the feeling the sorer.

But the immediate occasion of the most serious difficulty was the revival of the northeastern fisheries dispute. The century-long conflict as to the privileges of American fishermen in Canadian and Newfoundland waters, under the Treaty of 1783 and the Convention of 1818, had been set at rest during the era of Reciprocity (1854-66) by opening Canadian fishing-grounds to Americans, practically in return for free admission of Canadian natural products to the United States.

Then once more, by the Treaty of Washington in 1871, access to the insh.o.r.e fisheries was bartered for free admission of fish and fish-oil plus a money compensation to be determined by a commission. The commission met at Halifax in 1877, Sir A. T. Galt representing Canada, and the award was set at $5,500,000 for the twelve years during which the treaty was to last. The United States condemned the award with much heat, and took occasion to abrogate the clause of the treaty on the earliest date for which notice could be given, July 1, 1885. {105} For that season the fishing privileges were extended, but with the next year the whole dispute revived. The Canadian authorities insisted on restricting American fishermen rigidly to the letter of treaty privileges as Canada interpreted them. American fishing vessels were not only barred from fishing within the three-mile limit but were forbidden to enter a Canadian port to ship cargoes or for any other purpose, save for shelter, wood, water, or repairs. Several American boats were seized and condemned; and Canadian fishery cruisers patrolled the coasts, incessantly active. A storm of genuine if not informed indignation broke out in the United States. The action of the Canadian authorities was denounced as unneighbourly and their insistence on the letter of ancient treaties as pettifogging; and, with more justice, it was declared that the Canadian Government used the fishing privileges as a lever, or rather a club, to force the opening of the United States markets to all Canadian products.

President Cleveland sought a friendly solution by the appointment of a joint commission. Congress, more bellicose, pa.s.sed unanimously (1887) a Retaliatory Act, empowering the president, if satisfied that American vessels {106} were illegally or vexatiously hara.s.sed or restricted, to close the ports and waters of the United States against the vessels and products of any part of British North America. The president declined to fire this blunderbuss, and arranged for the commission on which Joseph Chamberlain, Sir Lionel Sackville-West, and Sir Charles Tupper were the British representatives. The draft treaty which the commission framed failed to pa.s.s the United States Senate, but a _modus vivendi_ was arranged permitting American vessels port privileges upon payment of a licence fee. This, together with more considerate conduct on both sides, eased the tension.

Once Congress had taken the drastic step of threatening complete non-intercourse With Canada, a reaction set in, and many Americans began to consider whether some more pacific and thoroughgoing solution could not be found. Two were suggested, political union and commercial union.

The political union of the two democracies of the continent has always found advocates. In the United States many believed it was 'manifest destiny' that some day the Stars and Stripes should float from Panama to the Pole. At times Canadians here and there {107} had echoed this belief. It seemed to them better to be annexed at one stroke than to be annexed piecemeal by exodus, at the rate of fifty or a hundred thousand Canadians a year. In St John and Halifax, in Montreal and Toronto, and on the Detroit border, a few voices now called for this remedy, which promised to give commercial prosperity and political security instead of commercial depression and sectional, racial, and religious strife. Yet they remained voices crying in the wilderness.

As in 1849, when men of high rank in the Conservative party--notably three,[1] who are known in history as colleagues of Sir John Macdonald and one of them as prime minister of Canada--had joined with Quebec _Rouges_ in prescribing the same remedy for Canada's ills, so now, in the late eighties, the deep instinct of the overwhelming ma.s.s of the people revolted from a step which meant renouncing the memories of the past and the hopes of the future. Imperial and national sentiment both fought against it. It was in vain that Goldwin Smith gave his life to the cause, preaching the example of the union between Scotland and England. It {108} was in vain that British statesmen had shown themselves not averse to the idea. In 1869, when Senator Sumner proposed the cession of Canada in settlement of the _Alabama_ claims, and Hamilton Fish, the American secretary of state, declared to the British amba.s.sador that 'our claims were too large to be settled pecuniarily and sounded him about Canada,' the amba.s.sador had replied that 'England did not wish to keep Canada, but could not part with it without the consent of the population.'[2] Wanted or not, the people of Canada had determined to stay in the Empire; and did stay until different counsels reigned in London. Even in cold-blooded and objective logic, Canada's refusal to merge her destinies with the Republic could be justified as best for the world, in that it made possible in North America two experiments in democracy; possible, too, the transformation of the British Empire into the most remarkable and hopeful of political combinations. But it was not such reasoned logic that prompted Canadians. They were moved by deeper instincts, prejudices, pa.s.sions, hopes, loyalties. And in face of their practically solid opposition the solution of the 'Canadian Question'

had to {109} be sought elsewhere than in political union with the United States.

Commercial union, or a _zollverein_ between Canada and the United States, involved absolute free trade between the two countries, common excise rates, a common customs tariff on the seaboard, and the pooling and dividing according to population of the revenue. This was not a new proposal; it had been suggested time and again in both countries, from its advocacy by Ira Gould of Montreal in 1852 down to its advocacy by Wharton Barker of Philadelphia--a strong opponent of reciprocity--in 1886. But now, for the first time, the conjuncture of political and economic conditions on both sides of the line ensured it serious attention; and, for the first time, in Erastus Wiman, one of the many Canadians who had won fortune in the United States, the movement found an enthusiastic and unflagging leader. In 1887 Congressman b.u.t.terworth introduced a bill providing for free entrance of all Canadian products into the United States whenever Canada permitted the free entrance of all American products, and received a notable measure of support. In Ontario, under the leadership of Erastus Wiman and Goldwin Smith and Valencay {110} Fuller, the latter a leading stock breeder, the movement won remarkably quick and widespread recognition: in a few months it had been endorsed by over forty Farmers' Inst.i.tutes and rejected by only three. Much of this success was due to the powerful and persistent advocacy of leading Toronto and Montreal newspapers. Needless to say, the movement met with instant and vigorous opposition from the majority of the manufacturers and from the Canadian Pacific Railway.

The movement had begun entirely outside the ordinary party lines, but its strength soon compelled the party leaders to take a stand for or against it. Neither party endorsed it, though both went far towards it. The Conservatives had long been in favour of a measure of free trade with the United States. The National Policy had been adopted partly in the hope that 'reciprocity in tariffs' would compel the United States to a.s.sent to 'reciprocity in trade,' and many who, like Goldwin Smith, had voted for protection in 1878, now called upon the Government to follow its own logic. But commercial union, with its discrimination against Great Britain and its joint tariffs made at Washington, did not appeal to Sir John Macdonald and his {111} following. They were, however, prepared to go far. More than half the time of the Fisheries Commission of 1887, which sat for three months, was spent on tariff matters; and Sir Charles Tupper made the most thoroughgoing offer of free trade with the United States ever made by any Canadian Government--'an unrestricted offer of reciprocity.'

Congress, however, would not consent to discuss trade under pressure of fishery threats, and no terms were made.

The Liberal party was equally uncertain as to its policy. It was much more strongly in favour of freer trade than its opponents, and being in opposition, would be more likely to take up a policy opposed to the _status quo_. Sir Richard Cartwright in October 1887 came out clearly in favour of commercial union. What of the new leader of the party?

Mr Laurier's first public address after his election to the leadership was given at Somerset, Quebec, in August 1887. After reviewing the deplorable discontent which pervaded the Dominion, due mainly to the Government's policy, he referred to the trade issue. The restriction policy practised for a decade had led to a reaction, he declared, 'which has not stopped within moderate {112} bounds; on the contrary, it has gone to extremes, and at this very hour the great majority of the farmers of Ontario are clamoring for commercial union with the United States.... For my part, I am not ready to declare that commercial union is an acceptable idea.' The root of the commercial union movement, he continued, was the desire for reciprocity with the United States in some form, and to that policy the Liberal party had always been, and still remained, favourable.

In the following session the Liberal party made clear its position on the question. It definitely rejected by a large majority the proposal for commercial union. Adopting a suggestion of Mr J. D. Edgar, it advocated reopening negotiations with Washington to secure full and unrestricted reciprocity of trade. Under this policy, if carried to its full extent, all the products of each country would enter the other free, but each would continue in control of its own tariff, and the customhouses along the border would also remain. Sir Richard Cartwright opened the debate with a vivid summary of the backward and distracted condition of Canada, and of the commercial advantages of free access to the large, wealthy, and convenient market to the south.

{113} He concluded with a strong appeal to Canada to act as a link between Great Britain and the United States, and thus secure for the mother country the ally she needed in her dangerous isolation. Mr Laurier followed some days later. He emphasized the need of wider markets, of a population of consumers that would permit large-scaled industry to develop, and contended that any manufacturing industries which deserved to survive would thrive in the larger field. The same terms could not be offered England, for England had not a tariff in which to make reciprocal reductions. Canada would not always be a colony; what she wanted, however, was not political independence, but commercial independence. The opponents of the proposal had appealed to the country's fears; he appealed to its courage, and exhorted all to press onward till the goal should be reached.

In parliament the discussion led to little result. The Government took its stand against unrestricted reciprocity, on the ground that it would kill infant manufacturing industries and lead to political absorption in the Republic, and the division followed party lines. Meanwhile in the country interest slackened, for the time. In the presidential {114} campaign of 1888 the Republicans, by a narrow margin, won on a high-tariff platform, so that reciprocity seemed out of the question.

In Canada itself a new issue had arisen. Once more race and religion set Quebec and Ontario in fierce antagonism.