that as regards the conditions of material
prosperity, they would be raised to a level with their neighbours. But
if this be not achieved, if free navigation and reciprocal trade with
the Union be not secured for us, the worst, I fear, will come, and
that at no distant day.

[Sidenote: Political discontent.]

Unfortunately, powerful interests in the one case, indifference and apathy
in the other, prevented these indispensable measures, as he always
maintained them to be, from being carried for many years; and in the
meantime a most serious fever of political discontent was in effect worked
up, out of a heat which ought to have been as transient as the cause of it
was intrinsically unimportant.

[Sidenote: Rebellion Losses Bill.]

Irritated by loss of office, groaning under the ruin of their trade,
outraged moreover (for so they represented it to themselves) in their best
and most patriotic feelings by seeing 'Rebels' in the seat of power, the
Ex-ministerial party were in a mood to resent every measure of the
Government, and especially every act of the Governor-General. When
Parliament met on January 18, he took advantage of the repeal of the law
restricting the use of the French language, to deliver his speech in French
as well as in English: even this they turned to his reproach. But their
wrath rose to fury on the introduction of a Bill 'to provide for the
indemnification of parties in Lower Canada whose property was destroyed
during the Rebellion in 1837 and 1838:' a 'questionable measure,' to use
Lord Elgin's own words in first mentioning it, 'but one which the preceding
administration had rendered almost inevitable by certain proceedings
adopted by them' in Lord Metcalfe's time. As the justification of the
measure is thus rested on its previous history, a brief retrospect is
necessary before proceeding with the account of transactions which formed
an epoch in the history of the colony, as well as in the life of the
Governor.

[Sidenote: History of the measure.]

Within a very short time after the close of the Rebellion of 1837 and 1838,
the attention of both sections of the colony was directed to compensating
those who had suffered by it. First came the case of the primary sufferers,
if so they may be called; that is, the Loyalists, whose property had been
destroyed by Rebels. Measures were at once taken to indemnify all such
persons,--in Upper Canada, by an Act passed in the last session o