forward not by a company, but as a government work. Under this
arrangement British Columbia became exceedingly restive, holding the
Dominion to the engagement by which it had been induced to enter the
union. A representative of the government, Mr (later Sir James) Edgar,
sent out to conciliate the province by some new agreement, failed to
accomplish his object, and all the influence of the governor-general,
Lord Dufferin, who paid a visit at this time to the Pacific coast, was
required to quiet the public excitement, which had shown itself in a
resolution passed by the legislature for separation from the Dominion
unless the terms of union were fulfilled.

Economic "national policy."

Meanwhile a policy destined to affect profoundly the future of the
Dominion had, along with that of the construction of the Canadian
Pacific railway, become a subject of burning political discussion and
party division. During the period of Mr Mackenzie's administration a
profound business depression affected the whole continent of America.
The Dominion revenue showed a series of deficits for several years in
succession. The factories of the United States, unduly developed by an
extreme system of protection, sought in Canada a slaughter market for
their surplus products, to the detriment or destruction of Canadian
industries. Meanwhile the republic, which had for many years drained
Canada of hundreds of thousands of artisans to work its factories,
steadily declined to consider any suggestion for improving trade
relations between the two countries. In these circumstances Sir J.
Macdonald brought forward a proposal to adopt what was called a
"national policy," or, in other words, a system of protection for
Canadian industries. Mr Mackenzie and his chief followers, whose
inclinations were towards free trade, pinned their political fortunes to
the maintenance of a tariff for revenue only. After some years of fierce
discussion in parliament and throughout the country the question was
brought to an issue in 1878, when, with a large majority of followers
pledged to carry out protection, Sir John Macdonald was restored to
power. The new system was laid before parliament in 1879 by the finance
minister, Sir Leonard Tilley; and the tariff then agreed upon, although
it received considerable modification from time to time, remained, under
both Conservative and Liberal administrations, the basis of Canadian
finance, and, as Canadians generally beli