after discussions extending over several weeks
signed what is known as the treaty of Washington. By the terms of this
treaty the "Alabama" claims and the San Juan boundary were referred to
arbitration; the free navigation of the St Lawrence was granted to the
United States in return for the free use of Lake Michigan and certain
Alaskan rivers; and it was settled that a further commission should
decide the excess of value of the Canadian fisheries thrown open to the
United States over and above the reciprocal concessions made to Canada.
Much to the annoyance of the people of the Dominion the claims for the
Fenian raids were withdrawn at the request of the British government,
which undertook, to make good to Canada any losses she had suffered. To
some of these terms the representative of Canada made a strenuous
opposition, and in finally signing the treaty stated that he did so
chiefly for imperial interests, although in these he believed Canadian
interests to be involved. The clauses relating to the fisheries and the
San Juan boundary were reserved for the approval of the Canadian
parliament, which, in spite of much violent opposition, ratified them by
a large majority. Under the "Alabama" arbitration Great Britain paid to
the United States damages to the amount of $15,500,000, while the German
Emperor decided the San Juan boundary in favour of the United States.
The Fishery Commission, on the other hand, which sat in Halifax, awarded
Canada $5,500,000 as the excess value of its fisheries for twelve years,
and after much hesitation this sum was paid by the United States into
the Canadian treasury. An imperial guarantee of a loan for the
construction of railways was the only compensation Canada received for
the Fenian raids.

Canadian Pacific railway question.

The second general election for the Dominion took place in 1872. It was
marked by the complete defeat of the Anti-Unionist party in Nova Scotia,
only one member of which secured his election, thus exactly reversing
the vote of 1867. While Sir John Macdonald's administration was
supported in Nova Scotia, it was weakened in Ontario on account of the
clemency shown to Riel, and in Quebec by the refusal to grant a general
amnesty to all who had taken part in the rebellion. Two important
members of the cabinet, Sir G. Cartier and Sir F. Hincks, were defeated.
Opposition to the Washington treaty and dread of the bold railway policy
of the government also contributed