ce claimed, as a result of this settlement, exclusive control of the
whole immense region from Acadia west to Lake Superior, and down the
Mississippi to the Gulf of Mexico. But the control of this region was
not uncontested. England claimed it by right of prior discovery, based
mainly on the discovery of Newfoundland in 1497 by John Cabot.

In the north the charter granted in 1670 by Charles II to Prince Rupert
to found the Hudson's Bay Company, with exclusive rights of trading in
the Hudson Bay basin, was maintained till 1869, when, on a payment of
$1,500,000, their territory was transferred to the newly created
Dominion of Canada. A long struggle was carried on between England and
France for the dominion of the North American continent, which ended in
the cession of Acadia by the treaty of Utrecht in 1713, and the cession
of Canada by the treaty of Paris in 1763. Of all its Canadian dependency
France retained only the Islands of St. Pierre and Miquelon, off the
coast of Newfoundland, and the vexatious French-shore rights.

During the war of American Independence Canada was invaded by the
Americans, and the end of the war saw a great influx of loyalists from
the United States, and the formation of two new colonies--New Brunswick
and Upper Canada (now Ontario). The treaty of peace in 1783 took away
from Canada territory now included within Minnesota, Michigan, Ohio,
Indiana, Illinois and Wisconsin. In 1791, owing to differences of race,
Upper Canada was separated from Lower Canada; but discontent resulted in
rebellion in 1837-8 which occasioned Lord Durham's mission and report.
The results of that were the granting of responsible government to the
colonists, and in 1840 the reunion of the two provinces. But the
different elements, British and French Canadians, worked no better
together than they had done while separated; and in 1867, as an escape
from the deadlocks which occurred, confederation was consummated. After
the War of Independence the history of Canada is chiefly concerned with
the gradual removal of the commercial preferences she had enjoyed in the
English market, and the gradual concession of complete powers of
self-government.

The half-breeds of the north-west broke out in rebellion in 1869-70, but
it collapsed as soon as the forces led by Colonel Wolseley reached Fort
Garry on Winnipeg. Riel, the leader, escaped, to return later and foment
another outbreak in 1885. This proved more dangerous but was even