"I have received a despatch from the Secretary of State for the Colonies, enclosing copies of a correspondence between Her Majesty's Government and the agent of the 'Atlantic and Pacific Transit and Telegraph Company,' in reference to a proposal made by that Company for the establishment of a telegraphic and postal communication between Lake Superior and New Westminster, in British Columbia. The importance of such an undertaking to the British North American Provinces, both in a commercial and in a military point of view, induces me to commend the subject to your consideration. Copies of the correspondence shall be laid before you, and I feel assured that should any proposal calculated to effect the establishment of such communication on terms advantageous to the province be submitted to you, it will receive encouragement at your hands."] But whatever may be the extent or the value—as to which latter point I fear my opinion does not, as I regretted to find, quite coincide with yours—of the sympathy and support of Canada, any new bias in favour of your projects, as promised in your prospectus, has been mainly aided by the belief which, entertaining it, I inculcated, that without loss of time, and with the promptness and energy of English merchants, the new Government of the Hudson's Bay Company would establish, with the aid of the provinces east and west of the Hudson's Bay territory, but without shirking its own share of duty, telegraphic and postal communication in British interests, available for commercial, and requisite for other and even more serious, purposes. That the works would be begun at once, and that the Hudson's Bay Company, so long obstructive, would now set an example of despatch, and that that which had long been hoped for and promised by others, would now be accomplished by them as the pioneer works of an early settlement of the cultivatable portions of the country.

"It is obvious that, unless materials are supplied and plans arranged before the end of September, the overland operations must wait a year's time. Therefore, apparently under a misapprehension of your wishes or policy, as our interview of yesterday showed, I looked out for the best practical man I could find fit to undertake the construction of a telegraph and system of posts, enabling postal and telegraphic service to be worked together. I found that man in Mr. O. S. Wood, an American settled in Canada, the engineer and manager of the 4,000 miles of telegraph owned by the Montreal Telegraph Company, which pays 23 per cent, upon its capital of 100,000l.; and believing him to be exactly the man for the occasion, I agreed with him, subject to your sanction, to superintend and be responsible for the erection and operation of a telegraph and system of posts between Fort Garry and Jasper House. I do not trouble you with the document, as it is to be cancelled, so far as your Company is concerned; but I may shortly state that it proposed the completion of the works by October, 1864, and in addition to a liberal, but not excessive, payment for Mr. O. S. Wood's work, responsibility, and experience, it awarded a percentage upon all savings on the total sum of L30,000l., the outside estimate taken for the whole job, and a small premium for all time saved in the completion of the work. These payments were to be so made that the integrity, completeness, and success of the work would be their main condition.

"I also made a very important conditional agreement with this Montreal Telegraph Company, under which they were to extend a new and independent, or precautionary, line of telegraph from Halifax (Nova Scotia) to Mirimichi and on to Father Point, connecting with the other existing telegraphs up to Arnprior (Ottawa), and another telegraph from Arnprior to the Sault St. Marie, where you have a trading port. On the other hand, subject to the aid of Canada and British Columbia, your Company were to extend, or obtain the extension of, a telegraph from the Sault by Lake Superior to Fort Garry, and another by Jasper House to Fort Langley. All these telegraphs were to be completed by October, 1865. The Montreal Company were also to obtain the extension of the Minnesota telegraph to your boundary near Pembina, you extending your telegraph to that point. Thus, assuming the Fort Carry and Jasper House telegraph to be completed by October, 1864, and knowing that this, and the telegraph from Fort Langley to Jasper House, could be finished as easily, a complete and independent Atlantic and Pacific telegraph, stretching for more than 1,000 miles through your territory, might have been secured,—always assuming that this season of 1863 were saved, which was the great practical object before me. I obtained, as a condition, that in dividing the rates paid for messages, your telegraphs should have a bonus of 33 per cent. so long as your capital did not pay a clear 10 per cent. dividend.

"To this end, I advised you to confirm the order of 175 tons of charcoal wire and of the insulators, post pins, batteries, and instruments needed for the length between Fort Garry and Jasper House (the wire from England, and the other material from Canada and the United States), at a total cost, already given you in complete detail, estimated, when delivered at Fort Garry, as not to exceed 10,000l.. This statement of cost, and a reference to my past statements, will answer the question in Mr. Fraser's letter of the 13th, as to whether I had calculated the heavy expense of carriage— 20l. per ton to Fort Garry. The question shows that it had not been calculated in Fenchurch Street that the poles and timber would be got in the country, and that the whole weight of material to be sent to Fort Garry was about 200 tons at the most.

"I may pause, however, in answer to another similar question, about the relative prices of American and English wire, &c., to say, that the best market for wire is England; and the best market for the less important articles is the United States, while the proper prices chargeable for the best article by the best houses are known to all practical men. I may add, as I am asked what is the weight per mile of telegraphic wire, that 'best charcoal No. 9 electric wire' is 320 lbs. to the mile of 1,760 yards.

"On leaving this subject, I may add, that if on further consideration you determine to store the material above named (cost and carriage 10,000l.) at Fort Garry, there is yet time to get it out to St. Paul, and some, if not all, may go through to Fort Gany. There is a post three days per week to Fort Garry, and posts go through all parts of your own territory regularly, the 'Winter Express' leaving Fort Garry on Christmas Day. Though, in my humble opinion, not the best thing, still the transmission and storage of that material would be looked upon as an evidence of your intentions, and would help to keep you right in Canada and in your own territory, as also in British Columbia, and would expedite a final and favourable decision as to the proposed subsidy. So strong is my opinion, that I am ready to join any four or five gentlemen of your Committee feeling an interest in the work, in providing and paying for the material itself, if you will send it through at once.

"It will, I assume, be apparent to you how necessary it is to keep the section of telegraph in your own special district in your own hands. Your organization, also, will enable you to convey and erect material very cheaply. As to all details, I refer to the papers already sent over containing full particulars, and showing quantities, kind, cost, means of conveyance, and, more important than all, character of country and proposed route; the latter from the personal experience and knowledge of the country of Governor Dallas and Mr. Hopkins, whose reliability and capacity as advisers no one will question.

"While in Upper Canada, I received proposals for the establishment of steamers on your rivers and lakes: and no doubt these could be arranged for; but as the telegraph is to stand over for the present, I do not add to the length of this paper by any statement on this head.

"I would call attention, however, to the exploration of Dr. Hector, on behalf of the Canadian Government, of the lands adjoining Lakes Huron and Superior. Dr. Hector has surveyed a line of road all the way up to Dog Lake; and Mr. McDougal, the present Commissioner of Crown Lands, appears ready to recommend the gradual, but rapid, construction of roads throughout this territory, and onwards to that of the Hudson's Bay Company. Possibly you may consider the suggestion which I made in reference to obtaining an independent outlet to Lake Superior, in the direction of Superior City, as well worthy of consideration.

"As respects the alleged discoveries of gold, upon which some doubt is thrown in Mr. Fraser's letter of the 13th, I have merely to add that the testimony of Governor Dallas is important, and that the report of Professor Hind appeared to me to contain valuable evidence and reasoning, which can be tested by the further explorations of a geographical commission, for which purpose either Professor Hind, or Sir William Logan, or Mr. Sterry Hunt, or all these well known Canadians, are at once available. Professor Hind's suggestion as to the supply of quicksilver by the Company to miners, may or may not be valuable to a Company desiring to retain the lead of trade in portions of its own territory; but a reference to his report will show that it was not proposed to you as an immediate measure, as surmised. In any case, it is undoubted that gold exists in districts east of the primary rocks of the east flanks of the Rocky Mountains, and that persons are seeking for it in greater or less numbers. We have yet to learn how far the information has spread, and what influence it may have upon the movement of the American population. But, great or small, it is a fact affecting the settlement of the community, which enlarges the general pressure for a decision as to how large tracts of your territory, suitable beyond doubt for human habitation, are hereafter to be governed for the good of the people who may come, and so as to preserve British ascendency in your part of the Continent. Both Governor Dallas and myself have had many discussions as to this, and you have before you already both his views and mine. But the paper gives a resume of the general case as presenting itself to many thoughtful persons, known to you in Canada, and belonging to the various political parties. It was desirable to record their ideas, and I present them for what they may be worth, wishing you to understand that the proposal for federation and a joint Custom-house is the view of Mr. George Brown. On the other hand, Mr. Cartier, and even Mr. Sandfield Macdonald, desire to see a separate Crown Colony established.

"I now come to the all-important matter of the wise, economical, and efficient working of the business of the Company in America. The paper drawn up under the instructions of Governor Dallas by Mr. Hopkins, and discussed at length between us, is offered to you as an attempt to solve a difficulty which must be got rid of if more business is to be done at less cost, and if the competition around you is to be met, as it easily may be, with thorough success. The deed poll is an arrangement standing in the way of change and extension of your operations: it covers legal questions which some day may give you trouble; and it may be modified in some such manner as that suggested by your assent in the first place, and by the judicious action of Governor Dallas, who should receive your instructions soon, consequent thereon.

"The proposal to substitute a contingent and temporary interest in so much stock of the Company for the 40 per cent. of profits now given to the chief factors and traders, may assist you in placing your unissued shares, in a mode leading to a very large annual saving, to be accompanied by an evident increase of efficiency. For, able as your staff is in general, there are many useless, and even mischievous, persons under pay or profits; and the unfortunate propensities of Sir George Simpson did not lead in his latter years, I fear, to the improvement of the moral tone of your servants. There are cases of favouritism and abuse not at all creditable, such as that of the employment of Sir George's illegitimate son, and the retention of a chief trader notoriously useless and drunken, for many years after the chief factor of his district had reported his demerits to the local governor. But the service is popular, and there can be no difficulty in keeping up a staff fully able to cope with the sharp and energetic men employed by the American traders,—your permanent rivals in business.

"It is perhaps unnecessary further to explain the reasons of my not proceeding to Red River. As before stated, I had expected to do so in company with Captains Glyn and Synge, without whom I should have hesitated to undertake the more extended and responsible task at first proposed. I did not in any event expect that Governor Dallas would come to Canada prior to the receipt of your official letter of the 6th July, and for which I had been waiting from the 30th June until the 20th July; and when he arrived, and especially when I found that the purposes of my proposed journey had been in great measure previously fulfilled by him, it became a question of whether it ought not to be postponed. He had already folly advised the Governor and Committee of the 'state of the Red River Settlement,' of its 'suitability for settlement,' and of the general and highly favourable features of the tracts, over which he had travelled for 1,800 miles in various directions. The best route for a telegraph could be, and was, suggested, to you from his own observations, corroborated and added to by the personal experience of Mr. Hopkins and others, who had often traversed the districts, and had resided for years therein. The entire feasibility of constructing a telegraph across the Continent was not only confirmed by these experiences, but by the practical views of persons consulted, who had set up lines through even more difficult and wilder tracts of country.

"Therefore the objects you appeared to have before you were realized, if not directly through me, yet through the colleague you had selected for me, your own local governor, of whom I cannot express too high an opinion, having been his almost constant companion for above a month, during which every detail, so far as we could grasp it, was thoroughly discussed.

"Having given my best attention and labours to the whole subject for some years, and believing that I might be of more service to you here, since Governor Dallas could not be spared to come home, and could not prudently have left Canada until he had put all your business there in order, I exercised no unwise discretion in returning to England.

"I have now to ask your forgiveness for the length of this paper, and to express my readiness to give any further explanations in my power, while wishing you and your colleagues quite to understand that I have no desire whatever—but far the contrary—to obtrude myself upon you in the control of an enterprise which I honestly believe can be made completely successful by the exercise of even ordinary energy and skill, and which ought to be safe and certain in such experienced and able hands as yours.

"I have the honour to be, dear Sir, "Yours faithfully, "EDWD. W. WATKIN.

"Sir E. W. HEAD, Bart., "Governor of the Hudson's Bay Company."

One other object I desired to accomplish, was an exchange of boundary between the Hudson's Bay and the United States, with the view to Superior City being brought into British territory by a fair payment and exchange of land. The negociation looked very hopeful at one time, but it was not followed up in London, and it fell to the ground. There are few people who understand that it is not only desirable to do the right thing, but to do it at the right time—that is, when circumstances favour the doing.

I am entitled to say that, owing to the non-acceptance, at the time, of our proposals, much delay in realizing the great object of settling the government and colonizing the territory arose: inadequate terms for the sale and purchase of the vast landed estate of the Company had to be accepted from Canada; and the "wintering partners," not made real partners, as recommended by Governor Dallas and myself, but held at arm's length, had, at last, to be compensated for giving up the old "deed poll" with a sum of 107,055l., paid in 1871—ten years after the date of our report to Sir Edmund Head.

But, "all's well that ends well," and the great work is, at last, accomplished.



CHAPTER XII.

The Hudson's Bay Company and the Select Committee of 1748-9.

The history of the old co-partnery, the "Governor and Company of Adventurers of England trading into Hudson's Bay," ought to be written by some able hand. Samuel Smiles or Goldwin Smith, with the aid of the archives held by the Governor and Committee, would make a book which would go round the world. To publish such a record is a duty incumbent upon Mr. Eden Colville and his colleagues. From no merit or prevision of theirs, a happy and profitable transformation has been made of their undertaking. The individuals, as well as Canada as a State, and the Empire, also, have gained largely. The monopoly has been broken up, under liberal and generous treatment of the monopolists—monopolists who had deserved their monopoly by their able administration; and those who ran the risk, paid the cost, and incurred the anxiety, neither complain nor ask for the credit of their work. The merchant adventurer trading to the Eastern Indies, and the merchant adventurer trading into Hudson's Bay, each on his side of the world, has preserved vast territories to the Crown and people of England. Their conquests have cost the taxpayers of England nothing; while the trade and enterprise they promoted have enriched millions, and have opened careers, often brilliant, for men of courage and self denial, many of whose names will go down to posterity in fame and honour.

The Hudson's Bay Company was constituted under a charter of Charles the Second. That charter began thus: "Charles the Second, by the grace of God King of England, Scotland, France, and Ireland, Defender of the Faith, to all to whom these presents shall come greeting:

"Whereas our dear intirely beloved cousin, Prince Rupert, Count Palatine of the Rhine, Duke of Bavaria and Cumberland; George Duke of Albemarle, William Earl of Craven, Henry Lord Arlington, Anthony Lord Ashley, Sir John Robinson, and Sir Robert Vyner, Knights and Baronets; Sir Peter Colleton, Baronet, Sir Edward Hungerford, Knight of the Bath, Sir Paul Neele, Sir John Griffith, Sir Philip Carteret, and Sir James Hayes, Knights; John Kirke, Francis Millington, William Prettyman, John Fenn, Esquires, and John Portman, citizen and goldsmith of London, have at their own great costs and charges undertaken an expedition for Hudson's Bay, in the Northwest parts of America, for the discovery of a new passage into the South Sea, and for the finding of some trade for furs, minerals, and other considerable commodities; and by such their undertaking have already made such discoveries as do encourage them to proceed farther in pursuance of their said design, by means whereof there may probably arise great advantage to us and our kingdom:

"And whereas the said undertakers, for their further encouragement in the said design, have humbly besought us to incorporate them, and grant unto them, and their successors, the whole trade and commerce of all those seas, streights, and bays, rivers, lakes, creeks, and sounds, in whatsoever latitude they shall be, that lie within the entrance of the streights commonly called Hudson's Streights; together with all the lands, countries, and territories upon the coasts and confines of the seas, streights, bays, lakes, rivers, creeks, and sounds aforesaid, which are not now actually possessed by any of our subjects, or by the subjects of any other Christian Prince or State."

And the adventurers were made "one body corporate and politic, in deed and in name," by the name of "The Governor and Company of Adventurers of England trading into Hudson's Bay."

They were granted "the sole trade and commerce" of "all those seas," &c., &c., "in whatever latitude they shall be;" "together with all the lands and territories upon the countries, coasts, and confines of the seas, bays, lakes, rivers, creeks and sounds aforesaid;" "with the fishing of all sorts of fish, whales, sturgeons, and all other royal fishes;" "together with the royalty of the sea upon the coasts within the limits aforesaid, and all mines royal, as well discovered as not discovered, of gold, silver, gems, and precious stones, to be found and discovered within the territories, limits, and places aforesaid; and that the land be from henceforth reckoned and reputed as one of our plantations or Colonies in America, called Rupert's Land."

All this was to be "holden" "of us, our heirs and successors, as of our manor of East Greenwich, in the County of Kent, in free and common soccage, and not in capite or by knight's service; yielding and paying yearly to us, our heirs and successors, for the same, two elks and two black beavers, whensoever and as often as we, our heirs and successors, shall happen to enter into the said countries, territories, and regions hereby granted."

The adventurers were further granted "not only the whole, intire, and only liberty of trade and traffick, and the whole, intire, and only liberty, use and privilege of trading and traffick to and from the territories, limits, and places aforesaid, but also the whole and intire trade and traffick to and from all havens, bays, creeks, rivers, lakes, and seas into which they shall find entrance, or passage by water, or land, out of the territories, &c. aforesaid; and to and with all the natives and people, inhabitants, or which shall inhabit within the territories, &c."

The charter proceeds to grant the fullest powers for the government of the countries by the adventurers; every power, in fact, provided the laws in force in England were administered. And then it authorizes "free liberty and license, in case they conceive it necessary, to send either ships of war, men, or ammunition, into any of their plantations, forts, factories, or places of trade," "for the security and defence of the same." "And to choose commanders and officers over them, and to give them power and authority, by commissions under their common seal, or otherwise, to continue, or make peace or war with any prince or people whatsoever, that are not Christians, in any places where the said Company have plantations, forts, or factories, or adjacent thereunto, as shall be most for the advantage and benefit of said Governor and Company, and of their trade;" "and also to right and recompense themselves upon the goods, estate, or people of those parts."

Thus, the adventurers had exclusive rights of trade, exclusive possession of territories, exclusive powers of government, and the right to make war, or conclude peace.

By an Order of Council of 4th February, 1748, a petition from one Arthur Dobbs, Esq., and from members of a committee appointed by the "subscribers for finding out a passage to the Western and Southern Ocean of America," was referred to the consideration of "A. Ryder" and "W. Murray," who heard counsel for and against the Hudson's Bay Company, and finally decided that, "Considering how long the Company have enjoyed and acted under this charter without interruption or encroachment, we cannot think it advisable for his Majesty to make any express or implied declaration against the validity of it till there has been some judgment of a court of justice to warrant it."

On the 24th April, 1749, a Select Committee of Parliament reported, through Lord Strange, upon "the state and condition of the countries adjoining to Hudson's Bay, and the trade carried on there." The report begins by stating—

"The Committee appointed to inquire into the state and condition of the countries adjoining to Hudson's Bay, and the trade carried on there; and to consider how those countries may be settled and improved, and the trade and fisheries there extended and increased; and also to inquire into the right the Company of Adventurers trading to Hudson's Bay pretend to have, by charter, to the property of lands, and exclusive trade to those countries;—have, pursuant to the order of the House, examined into the several matters to them referred, and find the particular state thereof to be as follows:—

"Your Committee thought proper, in the first place, to inquire into the nature and extent of the charter granted by King Charles the Second to the Company of Adventurers trading to Hudson's Bay; under which charter the present Company claim a right to lands, and an exclusive trade to those countries; which charter being laid before your Committee, they thought it necessary, for the information of the House, to annex a copy thereof to this Report, in the Appendix No. 1. Your Committee then proceeded to examine the following witnesses:—

"The witnesses were Joseph Robson, who had been employed in Hudson's Bay for six years as a stonemason; Richard White, who had been a clerk at Albany Fort and elsewhere; Matthew Sergeant, who had been employed in the Company's service, and 'understood the Indian language'; John Hayter, who 'had been house-carpenter to the Company for six years, at Moose River'; Mathew Gwynne, who 'had been twice at Hudson's Bay'; Edward Thompson, who had been three years at Moose River, as surgeon; Enoch Alsop, who had been armourer to the Company at Moose River; Christopher Bannister, who had been armourer and gunsmith, and had resided in the Bay for 22 years; Robert Griffin, silversmith, who had been five years in the Company's service; Thomas Barnett, smith, who went over to Albany in 1741; Alexander Brown, who had been six years at Hudson's Bay as surgeon; Captain Thomas Mitchell, who had commanded a sloop of the Company's; Arthur Dobbs, 'Esquire,' 'examined as to the information he had received from "a French Canadese Indian" (since deceased), and who was maintained at the expense of the Admiralty, on a prospect of his being of service on the discovery of a North-west Passage,' 'and who informed your Committee that the whole of that discourse is contained in part of a book printed for the witness in 1744, to which he desired leave to refer'; Captain William Moore, who 'had been employed in Hudson's Bay from a boy'; Mr. Henry Spurling, merchant, who 'had traded chiefly in furs for 28 years past, during which time he had dealt with the Hudson's Bay Company'; Captain Carruthers, who had been in the Hudson's Bay service 35 years ago; Arthur Slater, who had been employed by the Company on the East Main."

It will be seen that one object aimed at in granting a charter to the Hudson's Bay Company was to further the discovery of the "North-west Passage." Beginning in 1719, and ending, probably in despair, in 1737, the Hudson's Bay Company fitted and sent out in the whole six separate expeditions, which the Committee record in their Appendix, as follows (The instructions to the commanders usually ended, "So God send the good ship a successful discovery, and to return in safety. Amen"):—

A List of Vessels fitted out by the Hudson's Bay Company for Discovery of a North-West Passage.

1719. Albany, frigate, Captain George Berley, sailed from England on or about 5th June. Never returned.

1719. Prosperous, Captain Henry Kelsey, sailed from York Fort, June 19th. Returned 10th August following.

Success, John Hancock, master, sailed from Prince of Wales' Fort, July 2nd. Returned 10th August.

1721. Prosperous, Captain Henry Kelsey, sailed from York Fort, June 6th. Returned 2nd September.

Success, James Napper, master, sailed from York Fort, June 26th. Lost 30th of same month.

1721. Whalebone, John Scroggs, master, sailed from Gravesend 31st May, wintered at Prince of Wales' Fort.

1723. Sailed from thence 21st June. Returned July 25th following.

1737. The Churchill, James Napper, master, sailed from Prince of Wales' Fort, July 7th. Died 8th August, and the vessel returned the 18th.

The Mus-quash, Robert Crow, master, sailed from Prince of Wales' Fort, July 7th. Returned 22nd August.



It must be observed that, in 1745, Parliament had offered a reward of 20,000l. for the discovery of the North-west Passage. The Act was entitled "An Act for giving a publick reward to such person, or persons, His Majesty's subjects, as shall discover a North-west Passage through Hudson's Streights to the Western and Southern Ocean of America." In the evidence before the Committee, varied opinions were given as to this Northwest Passage. Mr. Edward Thompson, who had been a ship-surgeon, being examined as to the probability of a North-west Passage, said, "He had the greatest reason to believe there is one, from the winds, tides, and black whales; and he thinks the place to be at Chesterfield's inlet; that the reason of their coming back was they met the other boat which had been five leagues further, and the crew told them the water was much fresher and shallower there; but where he was the water was fifty fathoms deep, and the tide very strong; the ebb six hours and the flood two, to the best of his remembrance; that it is not common for the tide to flow only two hours; but he imagines it to be obstructed by another tide from the westward; that the rapidity of the tide upwards was so great, that the spray of the water flew over the bow of the schooner, and was so salt that it candied on men's shoes, but that the tide did not run in so rapid a manner the other way." Captain William Moore, being asked whether he believed there was a North-west Passage to the South Seas, said, "He believes there is a communication, but whether navigable or not he cannot say; that if there is any such communication 'tis further northward than he expected; that if it is but short, as 'tis probable to conclude from the height of the tides, 'tis possible it might be navigable; and it was the opinion of all the persons sent on that discovery that a north- west wind made the highest tides." Captain Carruthers said, "That he don't apprehend there is any such passage; but if there is, he thinks it impracticable to navigate it on account of the ice; that he would rather choose to go round by Cape Horn; and that it will be impossible to go and return through such passage in one year; and he thinks 'tis the general opinion of seamen that there is no such passage." Mr. John Tomlinson, merchant, of London, said, "He was a subscriber to the undertaking for finding a North-west Passage; which undertaking was dropped for want of money: that he should not choose to subscribe again upon the same terms; that he cannot pretend to say whether there is such a passage or not, or whether, if found, it could be ever rendered useful to navigation."

The merchant witnesses were in favour of throwing open the trade of Hudson's Bay; and this Mr. Tomlinson said more ships would be sent, and more people brought down to trade. "This is confirmed," he said, "by the experience of the Guinea trade, which, when confined to a company, employed not above ten ships, and now employs 150;" and "that the case of the Guinea trade was exactly similar (to the Hudson's Bay), where the ships near one another, and each endeavours to get the trade; and the more ships lie there, the higher the price of negroes."

The capital of the Hudson's Bay Company, increased by doublings and treblings of its nominal amount, was, in 1748, 103,950l., held by eighty-six proprietors.

The trade between London and Hudson's Bay was carried on in 1748, and for some previous years, by four ships. The cost of the exports was in 1748 5,102l. 12s. 3d., and the value of the sales of furs and other imports in that year amounted to 30,160l. 5s. 11dd. The "charge attending the carrying on the Hudson's Bay trade, and maintaining their factories," in 1748, is stated at 17,352l. 4s. 10d. The original cash capital was 10,500l. That capital was "trebled" in 1690, making the nominal capital 31,500l.; in August, 1720, it was proposed to augment the cash capital, and to make the nominal total 378,000l. But at a "General Court," held on the 23rd December, 1720, it was resolved to "vacate" the subscription "by reason of the present scarcity of moneys, and the deadness of credit." And it was further "Resolved, that in the opinion of this Committee, that each subscriber shall have 30l. stock for each 10l. by him paid in," "which resolutions were agreed to by this Court." Anyhow, the capital in 1748 is stated at 103,950l. A trade which, by sending out about 5,000l. a year, brought back a return of 30,000l., was no doubt worth preserving; and even taking the outlay for working and maintenance of forts and establishments, there was over 8 per cent, on the nominal capital left, or probably 40 per cent on all the cash actually paid in; not too great a reward for the benefits gained by the country from this trade.

Some particulars of the regulation of exchange of commodities may here be interesting.

The system of trade was simple barter. The equivalent of value was beaver skins; while skins of less value were again calculated as so much of each for one beaver. A kettle was exchanged for one beaver. A pound and a half of gunpowder, one beaver. One blanket, six beavers. Two bayonets, one beaver. Four fire-steels, one beaver. One pistol, four beavers. Twelve needles, one beaver. One four-foot gun, twelve beavers. Three knives, one beaver, and so on over a long list of various articles. Some of the things exchanged nearly 130 years ago, show that the Indians had a good knowledge of trade, and of objects used by civilised people. For example; brandy (English), one gallon, four beavers. Vermilion, one and a half ounces, one beaver; and combs, egg-boxes, files, glasses, goggles, handkerchiefs, hats (laced), hawk- bells, rings, scissors, spoons, shirts, shoes, stockings, and thimbles.

The factors were accused of imposing upon the Indians by using defective weights and measures; and it was said that the doubtful profit thus made, in opposition to the standards sent out from England, was called the "overplus-trade."

In the year 1748, the forts and settlements of the Hudson's Bay Company "in the Bay" were:—

Latitude

Moose Fort 51 28 Henley House, or Fort 52 The East Main House 52 10 Albany Fort 52 18 York Fort 57 10 Prince of Wales' Fort 59

This limited occupation contrasts in a marked manner with the area of posts, all over the continent, at this later date; see a list at pp. 222-226, and a map in front of this volume.

The skins and other articles imported, and sold at the Company's warehouse, in the City of London, by the "inch of candle"—a mode of auction common in those days (under which the bidding went on till the inch of lighted wax, candle went out)—fluctuated in the ten years between the years 1739 and 1748 very much. In that period the highest and lowest prices were for:—

L s d L s d_ Beaver (per lb ) 0 7 101/4 0 5 3 Martin (per skin) 0 6 8 0 5 11/4 Otter " 0 13 6 0 5 5 Cat " 0 18 0 0 10 101/4 Fox " 0 11 71/4 0 6 71/4 Wolverines " 0 7 0 0 5 5 Bear (per skin) 1 6 71/2 0 12 101/4 Mink " 0 4 8 0 2 0 Wolves " 0 18 11 0 9 01/4 Woodshock " 0 12 0 0 8 0 Elk " 0 11 7 0 6 1 Deer " 0 0 9 0 2 01/4 Bed feathers (per lb ) 0 1 41/4 0 1 0 Castorum " 0 13 21/4 0 6 1 Ivory " ————— 0 0 61/4 Whale Fins " 0 2 9 0 1 101/4 Wesakapupa " 0 2 4 0 0 61/4 Whale Oil (per tun) 18 13 0 10 1 0 Goose quills (per 1,000) 0 18 0 0 11 7

"Ivory" only appears once, viz. in the sale of 1738-9. This article may have been, simply, bones of the whale; and "whale oil" only appears four times in the ten years quoted.

The report of Lord Strange's Committee quotes many quaint and solid instructions, as well in times of war as of peace, to the governors and agents on the Bay. A letter from London, dated 10th May, 1744, says, "The English and French having declared war against each other, and the war with Spain still continuing, we do hereby strictly direct you to be always on your guard and to keep a good watch; and that you keep all your men as near home as possible. We do hereby further direct that you cut away all trees, hedges, bushes, &c., or any other cover for an enemy; and lay all level and open round the factory, further than cannon shot, which we compute to be a mile; in order to hinder the enemy from attacking you unawares, and from being sheltered from the factory's guns. But you are to keep up, and repair, your palisadoes, for your defence." ... "You are to fire point blank upon any ship, sloop, or vessel that shall come near the factory, unless they make the true signal, and answer yours. The letter proceeds to offer 30l. to the widow or children of any man killed in defence of the factory; to every one who should lose a leg, or an arm, 30l. Compensation to men receiving smaller wounds; and especial reward to such of the "chiefs, officers, and common men" as might specially distinguish themselves.

The 18th paragraph of this remarkable letter says: "In case you are attacked at Henley House, and, notwithstanding a vigorous resistance, you should have the misfortune to be overpowered, then you are to nail up the cannon, blow up the house, and destroy everything that can be of service to the enemy, and make the best retreat you can to the factory."

Grand old London merchants, these!



CHAPTER XIII.

The Hudson's Bay Posts—to-day.

In their Report of 28th June, 1872, the Governor and Committee report the details of the varied posts from Ocean to Ocean of the Hudson's Bay Company, as follows:—

Statement of Land belonging to the HUDSON'S BAY COMPANY, exclusive of their claim to one-twentieth of the Land set out for settlement in the "Fertile Belt," or the district coloured green in the accompanying Map [in front of this volume].

Acres District Post of Land LAKE HURON 1 La Cloche 6,400 TEMISCAMINQUE 2 Kakababeagino 10 SUPERIOR 3 Long Lake 10 UNITED STATES 4 Georgetown 1,133 MANITOBA, or } 5 Fort Garry 500 RED RIVER SETTLEMENT } 6 Lower Fort 500 } 7 White Horse Plains 500 MANITOBA LAKE 8 Oak Point 50 PORTAGE LA PRAIRIE 9 1,000 LAC LA PLUIE 10 Fort Alexander 500 11 Fort Frances 500 12 Eagles Nest 20 13 Big Island 20 14 Lac du Bennet 20 15 Rat Portage 50 16 Shoal Lake 20 17 Lake of the Woods 50 18 White Fish Lake 20 19 English River 20 20 Hungry Hall 20 21 Trout Lake 20 22 Clear Water Lake 20 23 Sandy Point 20 SWAN RIVER 24 Fort Pelly 3,000 25 Fort Ellice 3,000 26 Qu'Appelle Lakes 2,500 27 Touchwood Hills 500 28 Shoal River 50 29 Manitobah 50 30 Fairford 100 CUMBERLAND 31 Cumberland House 100 32 Fort la Corne 3,000 33 Pelican Lake 50 34 Moose Woods 1,000 35 The Pas 25 36 Moose Lake 50 37 Grand Rapid Portage 100 50 Acres at each end of Portage SASKATCHEWAN 38 Edmonton House 3,000 39 Rocky Mountain House 500 40 Fort Victoria 3,000 41 St Paul 3,000 42 Fort Pitt 3,000 43 Battle River 3,000 44 Carlton House 3,000 45 Fort Albert 3,000 46 Whitefish Lake 500 47 Lac la Biche 1,000 48 Fort Assiniboine 50 49 Lesser Slave Lake 500 50 Lac St Anne 500 51 Lac la Nun 500 52 St Albert 1,000 53 Pigeon Lake 100 54 Old White Mud Fort 50 ENGLISH RIVER 55 Isle a la Crosse 50 56 Rapid River 5 57 Portage da Loche 20 58 Green Lake 100 59 Cold Lake 10 60 Deers Lake 5 YORK 61 York Factory 100 62 Churchill 10 63 Severn 10 64 Trout Lake 10 65 Oxford 100 66 Jackson's Bay 10 67 God's Lake 10 68 Island Lake 10 NORWAY HOUSE 69 Norway House 100 70 Berens River 25 71 Grand Rapid 10 72 Nelson's River 10 ALBANY 73 Albany Factory 100 74 Martin's Falls 10 75 Osnaburg 25 76 Lac Seul 500 EASE MAIN 77 Little Whale River 50 78 Great Whale River 50 79 Fort George 25 MOOSE 80 Moose Factory 100 81 Hannah Bay 10 82 Abitibi 10 83 New Brunswick 25 RUPERT'S RIVER 84 Rupert's House 50 85 Mistassing 10 86 Temiskamay 10 87 Woswonaby 10 88 Meehiskun 10 89 Pike Lake 10 90 Nitchequon 10 91 Kamapiscan 10 KINOGUMISSEE 92 Matawagauinque 50 93 Kuckatoosh 10 LABRADOR 94 Fort Nascopie 75 95 Outposts do. 25 96 Fort Chimo (Ungava) 100 97 South River, Outposts 30 98 George's River 50 99 Whale River 50 100 North's River 25 101 False River 25 ATHABASCA 102 Fort Chippewyan 10 103 Fort Vermilion 500 104 Fort Dunvegan 50 105 Fort St John's 20 106 Forks of Athabasca River 10 107 Battle River 5 108 Fond du Lac 5 109 Salt River 5 MCKENZIE RIVER 110 Fort Simpson 100 111 Fort Liard 300 112 Fort Nelson 200 113 The Rapids 100 114 Hay River 20 115 Fort Resolution 20 116 Fort Rae 10 117 Fond du Lac 10 118 Fort Norman 10 119 Fort Good Hope 10 120 Peel's River 10 121 Lapierre's House 10 122 Fort Halkett 100

WESTERN DEPARTMENT

VANCOUVER'S ISLAND 123 Victoria, including Town Lots, about 70 124 Esquimault (Puget's Sound Company Land 2,300 125 Uplands Farm 1,125 126 North Dairy Farm 460 BRITISH COLUMBIA 127 Fort Alexander 100 128 Fort George 100 129 Fraser's Lake 100 130 Stuart's Lake 100 131 McLeod's Lake 100 132 Connolly's Lake 100 133 Babine 100 134 Chilcotin 100 Five other places 100 135 Fort Dallas 50 136 Fort Berens 50 137 Fort Shepherd 100 138 Fort Simpson 100 139 Salmon River 50 140 Langley and Langley Farm 2,220 141 Yale, sundry small blocks 142 Hope 5 143 Kamloops 1,976 144 Similkameen 1,140 Barkerville ) Town Quesnel ) Lots



CHAPTER XIV.

"Uncertain Sounds"

I may illustrate the consequences of vacillation and delay in the vigorous government of the Hudson's Bay territory, and in all distant parts of the Empire, by giving a verbatim copy of a Bill ordered to be "printed and introduced" in July, 1866, into the "House of Representatives" of the United States, at Washington, providing for relieving the Queen of her sovereign rights in the British territories between the Atlantic and Pacific Oceans. The only excuse—an excuse far from valid for so monstrous a proposal—was that no one knew what the British Government were inclined to do; and at Washington no one believed that John Bull would "make a fight of it;" while everyone knew that if a similar Bill, with the object of enabling the Southern States to come under the dominion of the Queen, had been introduced into the British House of Commons, the United States Ambassador "to the Court of St. James'" would have been recalled—to begin with. The British Ambassador took no notice, made no remonstrance; but the advent of Mr. Disraeli to power discouraged such outrages, and led in the following year to the passing of the Act for Confederation. In printing this Bill, my object is to show the mischief, mischief which half-a-dozen times in my lifetime has placed before my countrymen the alternative of ignominious concessions or war between English-speaking people, of "uncertain sounds." It is essential to continued peace, trade and prosperity, that it should be known to all the world that the broad lands between the two great oceans are an integral part of the Empire; that they will never be parted with without a struggle, in which all our forces will be amply used; and that either invasion, or the insidious agitations which from time to time are hatched in the United States with an eye to rebellion, will be put down by force.

Here is this insulting document printed verbatim. I challenge the quotation of any similar outrage on the part of any civilized nation at peace with the Empire attacked:—

"[Printer's No., 266. "39TH CONGRESS, 1ST SESSION. "H. R. 754. "IN THE HOUSE OF REPRESENTATIVES. "JULY 2, 1866. "Read twice, referred to the Committee on Foreign Affairs, and ordered to be printed. "Mr. BANKS, on leave, introduced the following Bill: "A BILL

"For the admission of the States of Nova Scotia, New Brunswick, Canada East, and Canada West, and for the organization of the Territories of Selkirk, Saskatchewan, and Columbia.

"Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby authorized and directed, whenever notice shall be deposited in the Department of State that the Governments of Great Britain and the Provinces of New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland, Canada, British Columbia, and Vancouver's Island have accepted the proposition hereinafter made by the United States, to publish by proclamation that, from the date thereof, the States of Nova Scotia, New Brunswick, Canada East, and Canada West, and the Territories of Selkirk, Saskatchewan, and Columbia, with limits and rights as by this Act defined, are constituted and admitted as States and Territories of the United States of America.

"SEC. 2. And be it further enacted, That the following articles are hereby proposed, and from the date of the proclamation of the President of the United States shall take effect, as irrevocable conditions of the admission of the States of Nova Scotia, New Brunswick, Canada East, and Canada West, and the future States of Selkirk, Saskatchewan, and Columbia, to wit:

"ARTICLE I.

"All public lands not sold or granted; canals, public harbors, light- houses, and piers; river and lake improvements, railway stocks, mortgages, and other debts due by railway companies to the provinces; custom-houses and post-offices, shall vest in the United States; but all other public works and property shall belong to the State governments respectively, hereby constituted, together with all sums due from purchasers or lessees of lands, mines, or minerals at the time of the union.

"ARTICLE II.

"In consideration of the public lands, works, and property vested as aforesaid in the United States, the United States will assume and discharge the funded debt and contingent liabilities of the late provinces, at rates of interest not exceeding five per centum, to the amount of eighty-five million seven hundred thousand dollars, apportioned as follows: to Canada West, thirty-six million five hundred thousand dollars; to Canada East, twenty-nine million dollars; to Nova Scotia, eight million dollars; to New Brunswick, seven million dollars; to Newfoundland, three million two hundred thousand dollars; and to Prince Edward Island, two million dollars; and in further consideration of the transfer by said provinces to the United States of the power to levy import and export duties, the United States will make an annual grant of one million six hundred and forty-six thousand dollars in aid of local expenditures, to be apportioned as follows: To Canada West, seven hundred thousand dollars; to Canada East, five hundred and fifty thousand dollars; to Nova Scotia, one hundred and sixty-five thousand dollars; to New Brunswick, one hundred and twenty-six thousand dollars; to Newfoundland, sixty-five thousand dollars; to Prince Edward Island, forty thousand dollars.

"ARTICLE III.

"For all purposes of State organization and representation in the Congress of the United States, Newfoundland shall be part of Canada East, and Prince Edward Island shall be part of Nova Scotia, except that each shall always be a separate representative district, and entitled to elect at least one member of the House of Representatives, and except, also, that the municipal authorities of Newfoundland and Prince Edward Island shall receive the indemnities agreed to be paid by the United States in Article II.

"ARTICLE IV.

"Territorial divisions are established as follows:—(1) New Brunswick, with its present limits; (2) Nova Scotia, with the addition of Prince Edward Island; (3) Canada East, with the addition of Newfoundland and all territory east of longitude eighty degrees and south of Hudson's Strait; (4) Canada West, with the addition of territory south of Hudson's Bay and between longitude eighty degrees and ninety degrees; (5) Selkirk Territory, bounded east by longitude ninety degrees, south by the late boundary of the United States, west by longitude one hundred and five degrees, and north by the Arctic circle; (6) Saskatchewan Territory, bounded east by longitude one hundred and five degrees, south by latitude forty-nine degrees, west by the Rocky Mountains, and north by latitude seventy degrees; (7) Columbia Territory, including Vancouver's Island, and Queen Charlotte's Island, and bounded east and north by the Rocky Mountains, south by latitude forty-nine degrees, and west by the Pacific Ocean and Russian America. But Congress reserves the right of changing the limits and subdividing the areas of the western territories at discretion.

"ARTICLE V.

"Until the next decennial revision, representation in the House of Representatives shall be as follows:—Canada West, twelve members; Canada East, including Newfoundland, eleven members; New Brunswick, two members; Nova Scotia, including Prince Edward Island, four members.

"ARTICLE VI.

"The Congress of the United States shall enact, in favour of the proposed Territories of Selkirk, Saskatchewan, and Columbia, all the provisions of the Act organizing the Territory of Montana, so far as they can be made applicable.

"ARTICLE VII.

"The United States, by the construction of new canals, or the enlargement of existing canals, and by the improvement of shoals, will so aid the navigation of the Saint Lawrence river and the great lakes that vessels of fifteen hundred tons burden shall pass from the Gulf of Saint Lawrence to Lakes Superior and Michigan: Provided, That the expenditure under this article shall not exceed fifty millions of dollars.

"ARTICLE VIII.

"The United States will appropriate and pay to 'The European and North American Railway Company of Maine' the sum of two millions of dollars upon the construction of a continuous line of railroad from Bangor, in Maine, to Saint John's, in New Brunswick: Provided, That said 'The European and North American Railway Company of Maine' shall release the Government of the United States from all claims held by it as assignee of the States of Maine and Massachusetts.

"ARTICLE IX.

"To aid the construction of a railway from Truro, in Nova Scotia, to Riviere du Loup, in Canada East, and a railway from the city of Ottawa, by way of Sault Ste. Marie, Bayfield, and Superior, in Wisconsin, Pembina, and Fort Garry, on the Red River of the North, and the valley of the North Saskatchewan river, to some point on the Pacific Ocean north of latitude forty-nine degrees, the United States will grant lands along the lines of said roads to the amount of twenty sections, or twelve thousand eight hundred acres, per mile, to be selected and sold in the manner prescribed in the Act to aid the construction of the Northern Pacific Railroad, approved July two, eighteen hundred and sixty-two, and Acts amendatory thereof; and in addition to said grants of lands, the United States will further guarantee dividends of five per centum upon the stock of the Company or Companies which may be authorized by Congress to undertake the construction of said railways: Provided, That such guarantee of stock shall not exceed the sum of thirty thousand dollars per mile, and Congress shall regulate the securities for advances on account thereof.

"ARTICLE X.

"The public lands in the late provinces, as far as practicable, shall be surveyed according to the rectangular system of the General Land Office of the United States; and in the Territories west of longitude ninety degrees or the western boundary of Canada West, sections sixteen and thirty-six shall be granted for the encouragement of schools; and after the organization of the Territories into States, five per centum of the net proceeds of sales of public lands shall be paid into their treasuries as a fund for the improvement of roads and rivers.

"ARTICLE XI.

"The United States will pay ten millions of dollars to the Hudson Bay Company in full discharge of all claims to territory or jurisdiction in North America, whether founded on the charter of the Company or any treaty, law, or usage.

"ARTICLE XII.

"It shall be devolved upon the Legislatures of New Brunswick, Nova Scotia, Canada East, and Canada West, to conform the tenure of office and the local institutions of said States to the Constitution and laws of the United States, subject to revision by Congress.

"SEC. 3. And be it further enacted, That if Prince Edward Island and Newfoundland, or either of those provinces, shall decline union with the United States, and the remaining provinces, with the consent of Great Britain, shall accept the proposition of the United States, the foregoing stipulations in favour of Prince Edward Island and Newfoundland, or either of them, will be omitted; but in all other respects the United States will give full effect to the plan of union. If Prince Edward Island, Newfoundland, Nova Scotia, and New Brunswick shall decline the proposition, but Canada, British Columbia, and Vancouver Island shall, with the consent of Great Britain, accept the same, the construction of a railway from Truro to Riviere du Loup, with all stipulations relating to the maritime provinces, will form no part of the proposed plan of union, but the same will be consummated in all other respects. If Canada shall decline the proposition, then the stipulations in regard to the Saint Lawrence canals and a railway from Ottawa to Sault Ste. Marie, with the Canadian clause of debt and revenue indemnity, will be relinquished. If the plan of union shall only be accepted in regard to the north western territory and the Pacific Provinces, the United States will aid the construction, on the terms named, of a railway from the western extremity of Lake Superior, in the State of Minnesota, by way of Pembina, Fort Garry, and the valley of the Saskatchewan, to the Pacific coast, north of latitude forty-nine degrees, besides securing all the rights and privileges of an American territory to the proposed territories of Selkirk, Saskatchewan, and Columbia."



So much for an outrage of a character unheard of and unparalleled. It was the result of "uncertain sounds;" of "duffer" government.

Let me give some illustrations. Before we began the, finally successful, movement for the Intercolonial Railway, the confederation of the Provinces of North America, and the final completion of a railway binding the coasts of the Atlantic and Pacific together, the Right Hon. C. B. Adderley, M.P., wrote a "letter to the Right Hon. B. Disraeli, M.P., on the present relations of England with the Colonies." It was a skinflint document, and here are a couple of quotations:—

Page 57.—"I would have the Canadian Government, in the right time and manner, informed that after a. certain date, unless war were going on, they would have to provide for their own garrisons, as well as all their requisite peace establishments, as they might deem fit; and that they should be prepared to hold their own in case of foreign attack, at least till the forces of the Empire could come to their aid."

Page 50.—"Let Canada, however, by all means look to England in the hour of peril also; but if the sight of English red-coats, at all times, has become a needful support of Canadian confidence, and English pay has ceased to be resented as a symptom of dependence, we must bow humbly under the conviction that Canada is no longer inhabited by men like those who conquered her."

Then I must quote my revered friend, Mr. Cobden, who, addressing his relative, Colonel Cole (at one time administrator of New Brunswick), on the 20th March, 1865, only thirteen days before his ever-to-be-lamented death, wrote about Canada: "We are two peoples to all intents and purposes, and it is a perilous delusion to both parties to attempt to keep up a sham connection and dependence, which will snap asunder if it should ever be put to the strain of stem reality. It is all very well for our cockney newspapers to talk of defending Canada at all hazards. It would be just as possible for the United States to sustain Yorkshire in a war with England as for us to enable Canada to contend against the United States. It is simply an impossibility. We must not forget that the only serious danger of a quarrel between these two neighbours arises from the connection of Canada with this country. In my opinion it is for the interest of both that we should, as speedily as possible, sever the political thread by which we are, as communities, connected, and leave the individuals on both sides to cultivate the relations of commerce and friendly intercourse as with other nations." ... "There is, I think, an inherent weakness in the parody of our old English constitution, which is performed on the miniature scenes of the Colonial capitals, with their speeches from the throne, votes of confidence, appeals to the country, changes of ministry, &c., and all about such trumpery issues that the game at last becomes ridiculous in the eyes of both spectators and actors."

Speaking in the House of Commons on the second reading of the British North America Bill, in 1867, Mr. Bright said: "Is this new State—or this new nation, as I think Lord Monck described it—to be raised up under the authority of an Act of Parliament—is everything to be done for it? Is it intended to garrison its fortresses by English troops? At present there are, I believe, in the Province 12,000 or 15,000 men. There are persons in this country, and there are some also in the North American Provinces, who are ill-natured enough to say that not a little of the loyalty that is said to prevail in Canada has its price. I think it is natural and reasonable to hope that there is in that country a very strong attachment to this country. But if they are constantly to be applying to us for guarantees for railways, and for fortresses, and for works of defence; if everything is to be given to a nation independent in everything except Lord Monck and his successors, and except in the contributions we make for these public objects, then I think it would be far better for them, and for us—cheaper for us, and less demoralising for them—that they should become an independent State, and maintain their own fortresses, fight their own cause, and build up their own future, without relying upon us. And when we know, as everybody knows, that the population of Canada, family for family, is in a much better position as regards the comforts of home than family for family are in the great bulk of the population of this country—I say the time has come when it ought to be clearly understood that the taxes of England are no longer to go across the ocean to defray expenses of any kind within the confederation which is about to be formed. The Right Honorable gentleman the Under-Secretary of the Colonies (Mr. Adderley) has never been an advocate for great expenditure in the Colonies by the Mother Country. On the contrary, he has been one of the members of this House who have distinguished themselves by what I will call an honest system to the Mother Country, and what I believe is a wise system to the Colonies. But I think that when a measure of this kind is being passed, having such stupendous results upon the population of these great Colonies, we have a right to ask that there should be some consideration for the Revenue and for the taxpayers of this country."

In speaking on the Canada Railway Loan Bill in the House on the 28th March, 1867, Mr. Gladstone, alluding to Canada, said: "We have carried it to this point, that as far as regards the Administration, I believe it may be said that the only officer appointed by the Colonial Secretary is the Governor; and I believe there cannot be a doubt that if it were the well-ascertained desire of the Colonies to have the appointment of their own Governor, the Imperial Parliament would at once make over to them that power."

I may, perhaps without presumption, here add two short speeches of mine in the House of Commons: one, in reply to Mr. Bright in the discussion on the Confederation, or British North America Bill, on the 28th February, 1867; the other, in reply to Mr. Lowe, on the Canada Loan Bill, on the 28th March, 1867.

Language affecting the relations between the Mother Country and the Colonies, such as I have quoted, does infinite mischief—more mischief than those who do not mix with the people can understand. It is as bad in its consequences as the unfortunate policy of Mr. Gladstone: the "Majuba Hill" policy.

[Hansard, vol. 185, page 1187, Feb. 28, 1867.]

"Mr. Watkin said he fully concurred in the statement of the right hon. gentleman (Sir John Pakington), that the House of Representatives and the Senate of Nova Scotia had approved the scheme of Confederation. The representative body approved it in 1861—not 1862, as the right hon. gentleman the First Lord of the Admiralty had stated.

"There was a general election in 1863, and the Prime Minister (Mr. Tupper) went through the country preaching this Confederation of the Provinces. It was brought under the notice of the electors at every polling-booth, and at every hustings the issue was distinctly raised. Well, after that general election, the plan of the Government was sustained by an enormous majority in the House of Representatives, and delegates were sent to the Conference to carry out the plan. If there was any question on which the British North American Provinces not only had enjoyed an opportunity of expressing, but had actually expressed, opinion, it was on this very question of Confederation.

"Mention having been made of the name of Mr. Howe, whose acquaintance he had the honour of possessing, he might state his own conviction that a man of purer patriotism, or one who had rendered more able and distinguished service to the Crown of this country, did not exist. He remembered the speech delivered by Mr. Howe some years ago at Detroit on the question of whether the Reciprocity Treaty should be continued or not; and he believed it was in no small degree owing to that remarkable speech—one of the most eloquent ever heard—that the unanimous verdict in favour of continuing the treaty had been arrived at. It was matter of surprise and regret to him that the valuable and life-long services of Mr. Howe had not received recognition at the hands of either the late or the present Government.

"The hon. member for Birmingham seemed dissatisfied with the phrase used by Lord Monck respecting the establishment of a new nation. Now he (Mr. Watkin) supported the Confederation, not as the establishment of a new nation, but as the confirmation of an existing nation. It meant this, that the people of the confederated colonies were to remain under the British Crown—or it meant nothing. He joined issue with those who said, 'Let the Colonies stand by themselves.' He dissented from the view that they were to separate from the control of the British Crown the territory of this enormous Confederation. But there was a vast tract beyond Canada, extending to the Pacific; and the House should bear in mind that more than half of North America was under British dominion.

"Did the hon. member (Mr. Bright) think that it was best for civilization and for public liberty that this half of the Continent should be annexed to the United States? If that were the opinion of the hon. gentleman, he did not think it was the opinion of that House. Every man of common sense knew that these territories could not stand by themselves; they must either be British or American—under the Crown or under the Stars and Stripes. The hon. member for Birmingham (Mr. Bright) might think that we should be the better for losing all territorial connection with Canada; but he could not agree with that doctrine. Extent and variety were amongst the elements of Imperial greatness.

"Descending to the lowest and most material view of the subject, he did not believe that, as a mere money question, the separation would be for our interest.

"Take, again, the question of defence. Our North American possessions had a coast line of 1,000 miles on the east, and 800 on the west, and possessed some of the finest harbours on that Continent, and a mercantile marine entitling it to the third rank among maritime nations. The moment these advantages passed into the hands of the United States, that country would become the greatest naval power in the world. In preserving commercial relations with the United States, the Canadian frontier line of 3,000 miles was likewise extremely useful.

"As long as British power and enterprise extended along one side of this boundary line, and as long as the tariff of extremely light duties was kept up by us, and that imposed only for the purposes of revenue, it would be impossible for the United States to pursue what might be called a Japanese policy.

"If England, therefore, desired to maintain her trade, even apart from other considerations, it was desirable for her to maintain her North American possessions.

They had lately had to pass through a cotton famine, and they had been taught the inconvenience of the prohibition of the export of cotton by the American Government.

"A large proportion of the corn imported into this country was brought from America, and in what state would England find herself if all the food exports of North America were placed under the control of the Government of Washington? If the frontier line became the sea coast, what might be looked for then? Scarcely three years had elapsed since Mr. Cobden declared that if there had not been a plentiful harvest in America he did not know where food could have been procured for the people of this country.

"Now, the corn-growing fields of Upper Canada alone ranked fifth in point of productiveness. Did England not wish to preserve this vast storehouse? Suppose that Canada belonged to America: in the event of a quarrel with England there was nothing to prevent the United States from declaring that not an ounce of food should leave its territories, which would then extend from the Arctic regions to the Gulf of Mexico. He had hoped that upon this Bill, not only both sides of the House, but every section of the House, might have been found in unison.

"It was no use blinking the question. This would not be a decision affecting Canada merely. We had sympathies alike with Australia and the other Colonies. If it were seriously proposed that England should denude herself of her possessions—give up India, Australia, North America, and retire strictly within the confines of her own Islands, to make herself happy there,—the same result might be brought about much more easily by those who wished it. They might become citizens of some small country like Holland, and realize their ideas of happiness in a moment. But he hesitated to believe that the people of England did really favour any such policy.

"If any one were to hoist the motto, 'Severance of the Colonies from the Crown,' he did not believe that one per cent. of the people would adopt it. He believed that the people of England felt a deep attachment to their Empire, and that not a barren rock over which the flag of England had ever waved would be abandoned by them without a cogent and sufficient reason. Every argument used in support of the necessity of giving up the Provinces, which lay within eight days of our own shores, would apply with equal force in the case of Ireland, if the people of the United States chose to demand possession.

"Was this country prepared to give up Gibraltar, Malta, Heligoland, all its outlying stations, merely because some strong power took a fancy to them? He did not believe that the people of England would ever act in such a spirit.

"As to the argument of expense, if Canada chose to pick a quarrel on her own account, clearly she ought to pay the bill; but if she were involved in war on Imperial considerations, then he maintained that the Imperial revenues might properly be resorted to.

"The British Empire was one and indivisible, or it was nothing. And what was the principle upon which the United States acted? If any portion of the territory of the Union was touched, were there one of its citizens who would not be ready and forward to defend it? Should we then be less determined to maintain intact the greatness and the glory of the British Empire?

"He, for one, would not give up the opinion that Englishmen were prepared to maintain, in its integrity, the greatness and glory of the Empire; and that such a feeling would find a hearty response in that House."



"CANADA RAILWAY LOAN.

"[March 28, 1867.]

"In reply to Mr. Lowe and others, "Mr. Watkin said that, in following the right hon. gentleman (Mr. Lowe), he felt very much as a quiet Roman citizen must have done on passing the chief gladiator in the street— inclined to pass over to the other side, and to have nothing to say to him, for fear of the consequences.

"But some years ago he was requested by the late Duke of Newcastle to make inquiries, which convinced him that the hobgoblin fears expressed that night in regard to the construction of this 375 miles of railway were unfounded.

"Let hon. members remember that Her Majesty's American dominions extended over an area equal to one-eighth of the habitable globe. This Railway gave us communication, not only with Canada and with 10,000 miles of American railways, but with the vast tract of British territory extending across to the Pacific. The consequence of making this Railway would be, that two days would be saved in going from England to the northern continent of America, including the great corn- growing district of the West.

"If the House had seen, as he had seen, the Canadian volunteers turn out in bitter winter to repel a threatened invasion, without a red-coat near them, they would think that the right hon. gentleman's taunts might have been spared.

"The British Provinces had taxed themselves 360,000l. a-year for the execution of these works, which Lord Durham had proposed in 1838, with the object of binding together, by the means of physical communication, the varied sections of the Queen's American dominions.

"The evidence of every military man, including Sir John Michell, the present Commander-in-Chief in Canada, was that this Railway was absolutely necessary for the military defence of the Colonies. It was, however, to be defended not only on that ground, but upon the ground of its great commercial advantages.

"There were now in the Government offices memorials from many of the large towns in the three kingdoms, concurring in the commercial necessity and advantages of the measure which the House was now asked to agree to. Therefore, originating as it did with Lord Durham,— sanctioned as it was by Lord Grey's proposals of 1851—adopted by the late and present Governments,—demanded for purposes of defence, as also for the more genial and generous objects of commerce and peace,— he hoped the House would support the construction of the Railway by a guarantee, which would not cost this country a shilling."

The motion for giving the guarantee was carried by 247 votes to 67—or by a majority of 180.



CHAPTER XV.

"Governor Dallas."

I should do injustice to my own loving memory of the man, if I did not publish some letters from the late Governor Dallas, which are, to my mind, especially interesting. Though some of his views, in 1863, as to the value of the Hudson's Bay lands, and their settlement, did not accord with my own, yet his experience should plead against mine. No one was more pleased than he to find that the country was in process— after many delays, over which he and I used to groan in concert—of successful colonization.

"MONTREAL, "17th August, 1863.

"DEAR SIR,

"With reference to our late conversations upon various matters connected with the past and future of the Hudson's Bay Company, I take the liberty of calling your attention to several points of the business requiring immediate attention, in a more explicit manner than I may have done in desultory conversation.

"The government of the territory is come almost to a dead-lock in the Red River Settlement, and nothing short of direct administration under the authority of the Crown will, in my opinion, remedy the evil. Two prisoners have been, in separate instances, forcibly rescued from jail, and they, with about thirty to fifty others implicated in the riots, are still at large, fostering discontent, and creating great disquiet. Their secret instigator controls the only paper published in the settlement, and its continued attacks upon the Company find a greedy ear with the public at large, both in the settlement and in Canada. The position of those in authority is so disagreeable that I have had great difficulty in persuading the magistrates to continue to act. Mr. William Mactavish, Governor of Assiniboin, has resigned his post, and I have only been restrained from following his example, for a short time, in the hope that a remedy would speedily be applied, and that I should be relieved from the unfair position in which I find myself placed, with all the responsibility, and the semblance of authority over a vast territory, but unsupported, if not ignored, by the Crown. In the absence of a just grievance, the cry of 'the Company' is quite a sufficient watchword amongst the ignorant and discontented.

"The open malcontents are few in number, and I had ample volunteer force at my back to protect the jail and support my authority, but, as I have already explained to you, I could exercise but little control over my friends, who were keen for what would have ended in a free fight, with the certain death of the sheriff and ringleaders on both sides, and led to endless animosities. It required more resolution on my part to follow the course I did, than to have resisted the rioters. For details of the transactions I refer you to my official letters to the Board, which you will find in the Hudson's Bay House.

"Of the settlers, the greater number, including the French Canadians, are our staunch personal friends, while the openly disaffected are but few. There is still, however, a considerable portion of the people who, though taking no open part, are yet dissatisfied. Some of these last named have real or imaginary grievances, of long standing to complain of, and nothing but the extinction of the governing powers of the Company will satisfy them. I came amongst them as free from prejudice as you can be, and determined to redress every grievance and meet their wishes in every reasonable way, but to no avail. I have already transmitted to the Board evidence in the 'Nor' Wester,' that our unpopularity arises entirely from the system of government, and not from any faults in its administrators.

"A continuance of this state of matters may lead to the formation of a provisional government by the people themselves, and to annexation to the United States, as have been threatened. With the opening up of the St. Paul's route, there has been a large increase of the 'American' element in the settlement; and in the enclosed copy of the 'Nor' Wester' of the 22nd July, you will observe that the United States Government is quietly recruiting for its army in British territory. This matter, I trust, may be in the meantime brought to the notice of the proper authorities pending further information upon my return to Red River.

"The trust which the Board has placed in my hands, and the confidence reposed in my ability to guide you in forming your plans for the future, impose on me no little responsibility and anxiety. I must relieve my shoulders of this weight by stating plainly my belief that the opening up of the country by waggon road and telegraph, and by the encouragement of settlement, must prove so far detrimental to the current commercial business of the Company as to render it difficult, if not impossible, to provide a fair dividend upon the portion of its capital embarked in the trade. I do not, however, the less recognize the necessity of opening up the country and its communications. It is not at all clear to my mind how you are to secure a remunerative dividend upon the extra sum to be embarked in the erection of the telegraph, formation of roads, &c., &c. In a commercial point of view, I do not consider it safe to enter upon these extended operations till secure of a sufficient subsidy from the different Governments interested.

"Upon a mature consideration of the whole subject, I entirely concur in the views expressed by Mr. Johnstone in his letter, of which I have already sent only an extract to Sir Edmund Head, viz., that with the government of the country the territorial right should also revert to the Crown, upon whatever terms might be arranged. Anything short of a full measure of this sort would fail to satisfy the settlers and the public at large, who seem inclined to view with distrust the present position of Her Majesty's Government in its supposed alliance with the new Board of Direction.

"It is a question for consideration whether the northern region of the country beyond the limits of probable settlement should not still remain under the control of the Company, with such a monopoly of trade as would induce them to undertake the responsibility of managing the Indian tribes, and excluding the introduction of ardent spirits. I make this suggestion solely on behalf of the Indians, upon whom free intercourse with white men will, in my opinion, be ultimately destructive.

"Having already impressed upon you the necessity of procuring from Her Majesty's Secretary of State for the Colonies such instructions to the Governors of Vancouver's Island and British Columbia as may put an end to all proceedings against us in the local courts, and place us in possession of proper titles to our lands, I have now, in reminding you of the importance of the matter, to hand you the enclosed extract of a private letter which I received yesterday from Mr. D. Mactavish, senior member of our Board of Management in Victoria, which speaks for itself.

"Though I have marked this communication 'private,' I shall be obliged by your laying it before Sir Edmund Head, as I am so very hurried that I have not time at present to write officially to the Board.

"I remain, dear Sir, yours faithfully, "A. G. DALLAS.

"E. WATKIN, Esq., London.

"P.S.—The undoubted discoveries of gold diggings in the Saskatchewan and other portions of the territory is another strong reason why the land should revert to and be administered by the Crown. Large grants to the Company would be looked upon with great disfavour by the public.

"A. G. D."



Extract private letter from D. Mactavish, Esq., to A. G. Dallas, dated Victoria, Vancouver's Island, 13th July, 1863:—

"We hear nothing of our land question from the Governor, and there is no getting him to give titles for the Company's lands at Hope, Yale, and Langley. Orders have come out for the Royal Engineers to go to England immediately after the new year, so that Colonel Moodie and his staff of surveyors will do no more work, their time being so nearly up—this is worrying, but cannot be helped. The Governor has so much to do, making roads and so forth in British Columbia, that there is no drawing his attention to our matters, and when we do call on him to act, his invariable answer is, that he cannot get Moodie to do anything, and I daresay there is some truth in it, as it is shrewdly surmised that His Excellency has had more to do with the recall of the Engineers home than anyone else, and they all feel that they are leaving under a cloud."



"MONTREAL, "17th Augt. 1863.

"MY DEAR MR. WATKIN,

"Along with this I send you a letter which, though marked private, treats only of our affairs, in such a manner that it may be laid before the Duke of Newcastle. It ought, I think, also to be laid before Sir Edmund Head, and I shall refer him to it for my views. It is very important that the whole of Johnstone's letter, and of my account of affairs at Red River, in regard to the Corbett riots, addressed to the Board, should be read along with the above letter. I do not think that we can ever make anything out of our lands, [Footnote: Experience has shown that this was an error.] and I am therefore strongly of opinion that they should be transferred to the Government upon certain terms, excepting only such lands around our forts as may be necessary for our business, and our farms, &c. in actual occupation.

"Although a great outcry has been raised against us on account of our being a 'stop in the way,' and enjoying a monopoly of trade, the cry is groundless. It may, therefore, be well for you to know that for a number of years past we have enjoyed no monopoly of trade whatever, and that there is no impediment to the settlement of the country by any one who pleases. A settler may squat wherever he thinks fit, without question, or being called upon to pay for lands yet unsurveyed, and of which the Indian titles are not yet extinguished. The small portion of surveyed land in the district of Assiniboin has been all long since occupied, though not paid for. With a recognized Government, there would be no difficulty in obtaining payment for these lands from the occupiers.

"In erecting the telegraph, the Indian titles to the land ought to be extinguished by annual payments; but the absence of a recognized and respected Government will be of itself a great bar to the successful erection of the apparatus, and the preserving it and the various stations in good order. Though, by increased energy and supervision, the fur trade may for a time be maintained, yet you must not count upon increased profits, as with the opening up of the country the furs are costing us more, and many of our posts are so distant that they cannot, from that and a variety of causes, be placed all at once upon a proper footing, and it is very difficult to exercise a proper supervision over them. It behoves the Company, therefore, to look out for other sources of profit. One of these is that of banking operations, both here and at Red River, and probably also at Victoria and at St. Paul, or other suitable locality in the U. S. On this head I may again address you from Red River, and Mr. Hopkins will afford you every information in regard to the prospects at this place, which are represented to be very great, when you come out in September.

"I am just about starting for Lake St. John's on the Saguenay River, and shall be absent about ten days. Upon my return I shall be ready to return to Red River—say, about the 1st September.

"Hoping you have had a pleasant passage, believe me, "Yours very truly, "E. WATKIN, Esq., London.

"A. G. DALLAS.

"P.S.—I do not see how the Company can make anything out of placer gold diggings in such a country. The miners must be encouraged, and mining licences cannot be expected to do more than pay the cost of collection, magistracy, police, &c. The surrender of all this territory to the Crown, however, is a question to be dealt with by the Board. My aim is to disabuse you of the idea that the Company can of itself turn the territory to profit by sale of lands, mining rights, making roads, telegraph, &c.

"A. G. D."



"MONTREAL, "18th August, 1863.

"MY DEAR MR. WATKIN,

"I left New York the evening of the day I parted from you, and reached this place on the Saturday night, via Boston and Portland, quite done up, having travelled two nights without undressing. The crowds were such as they were on the Hudson, and my mind often reverted to the good things I left at the door of the steward's pantry in the 'Scotia,'

"Brydges is not yet back from Quebec, and Hopkins and I start to-morrow for the Saguenay and St. John's Lake, where affairs require to be looked after.

"I have a letter to-day from St. Paul, in which Kittson says that the railroad gentry were anxiously expecting you, and making much capital out of the expected visit. He adds, 'The people of the State will not be so blind to their own interest as to decline to undertake to complete the portion of telegraph required. I have no doubt that a company could immediately be formed to accomplish the object.'

"Reverting to my grievance against the old Board, I wish to state what I complain of, viz., that I am charged with my passage across the Atlantic, and with a sum of L50, drawn to cover travelling expenses to Montreal. These were charged against me in February, 1862, and have borne interest against me since then.

"2ndly. I complain that I am charged interest on all sums drawn by me in each year—though within the amount of that year's salary. I surely am entitled to draw my pay from time to time to cover my expenditure? Officers in this country manage under the existing system of accounts to get the benefit of funds, even in excess of their pay, for two years without interest.

"3rdly. I had charge of the Puget Sound Company's affairs, which, with great labour, I placed upon a satisfactory footing—including the recovery of large sums from Government, and the terminating complicated and ruinous engagements with bailiffs or tenants and partners. I paid my expenses to Vancouver's Island, and devoted my whole time to the above matters, from 1st January, 1857, to the period of my leaving the Island in 1861, without having received one shilling of recompense. For the latter portion of the time I was paid by the H. B. Co., when I had the sole charge of its affairs during a most anxious and harassing period—constantly involved with all around me defending the rights of both companies.

"I say nothing as to my scale of pay under the old Board, but in making the changes which they did I think they ought not to have assumed that I should continue to act for the same remuneration.

"The pay was not my inducement to come to the country, but when overtures were first made to me, nothing being said to the contrary, I expected that I should at least receive the same pay and be placed on an equally good footing with the late Sir George Simpson, who for a number of years past lived at his ease at Lachine, and attended more, apparently, to his own affairs than to those of the Company. The latter bear evidence in every district of having been left entirely to themselves, while extreme discontent prevails in consequence of favouritism having regulated the promotions.

"Though not a ground of complaint, or a matter requiring redress—yet I may call attention to the inadequacy of my pay hitherto, when it is taken into account, that, from the unsettled life I have led in the Company's service, I have been obliged to neglect my private affairs. I have never received anything for outfit, and I was unlucky enough on my way out to have the most of our traps burnt the night before we embarked at Liverpool, in the Adelphi Hotel. The clothes ordered to replace these have all gone to the bottom in the 'Anglo Saxon.'

"I do not allude to these matters now with the view of obtaining higher pay for the future, as you know my intention is to return to England in the spring, and with the business in fair working order I can be of more avail there.

"It so happens that the fruits of my labours in America, both as regards the Hudson's Bay and Puget Sound Companies, will be reaped mainly by the present proprietors. At the same time, all such claims as the above ought to have been settled up to 31st May last by the old Board.

"A grumbling fellow is, I know, looked upon with great disfavour, especially when there is nothing more to be got out of him. This, therefore, is intended for your own eye alone. The substance of my complaint you may make use of as you see fit.

"Excuse this scrawl, and believe me in haste, "Very truly yours, "A. G. DALLAS.

"E. WATKIN, Esq., London."



"FORT GARRY, RED RIVER, "16th October, 1863.

"MY DEAR MR. WATKIN,

"I arrived here on the 9th instant, after a wet, cold, and very miserable ride on horseback, of 520 miles, from St. Cloud, and was not sorry to get home again.

"After parting from you I went to the Saguenay River and Lake St. John's, where I need say no more than that my presence was very much wanted. No practical supervision had ever been exercised over the posts in that district, so far as I could learn.

"Brydges accompanied me to St. Paul; but I could not induce him to come any further, as he said he had a wife, eleven hundred children, and six miles of railway (more or less of either) to look after.

"You will doubtless have seen what I have written to the Board in regard to the telegraph across the Continent. The more I consider the subject the more satisfied I am that next year's operations ought to be confined to a survey of the line, and to bring the material to Fort Garry. In addition to sending a practical man, I would recommend that Mr. Wood himself come to Fort Carry. By following the 'Crow Wing' route he will get a perfect idea of the difficulties to be encountered along the whole line, as perfectly as a pinch of flour would represent the contents of the whole sack.

"I wish to call your particular attention to a letter which I have this day addressed to the Board, upon the subject of Indian claims to lands, and the officious part taken by the editor of the 'Nor' Wester,' in the hope that you may be able to exercise some influence over the Duke of Newcastle in prevailing upon him to discourage such men in some marked manner. As my residence in that country will now be a very short one, and as I have no pecuniary interest in the Company or the country, I write disinterestedly, and this knowledge may induce his Grace to pay some attention to my warnings. There will be serious trouble hereafter with the Indians and half-breeds, unless the local government is better supported, and such men as Ross and others are discountenanced.

"My interest in the old Company was a nominal one, merely sufficient to qualify myself for a seat on the Direction. That interest I sold out on accepting my present appointment. During my residence at Vancouver Island and on this side, I have been working for honorary occupation—my pay having formed no inducement, and being quite inadequate in countries where, in matters of expenditure, a dollar passes for little more than a shilling in England, and liable, as I was, from my wandering life, and with a family—to the losses incurred by a frequent breaking up of establishment. I allude to these matters, not for the purpose of complaint, but in support of the position that, as a disinterested and impartial administrator of the affairs entrusted to my charge, I was actuated by no selfish or pecuniary motives.

"The formation of the colony of British Columbia could not have been carried on as it was but for the assistance rendered by the H. B. Co., and I considered I was acting as much for the Government as for the Company, in the services then rendered, which, being unofficial, have not been in any way recognized. The unscrupulous way in which Douglas wished to saddle all expenses on the Company, and his attempts to deprive us of the lands which he himself made over to me as Company's property, led to serious differences between him and me, and which may have caused me to be looked on with probably a hostile eye by the Government, when I was actuated by the most impartial motives, and did at the same time everything I could to help the local government in its elections and other views, where our influence was overwhelming.

"Since assuming office on this side, I have been thoroughly disheartened, in the midst of very trying and difficult circumstances, between the Americans, Sioux Indians, and local disturbances on one hand, and the want of any encouragement or support by Government on the other hand. We have been not only ignored, but the worst enemies of the country have direct access to the Colonial Office, and though, probably, not attended to, are yet encouraged, from the fact of their petitions being received. No temptation would induce me to continue longer in office, even were it considered desirable that I should continue to hold my appointment, which for the good of the country I ought not. At the same time. Her Majesty's Government cannot continue much longer to ignore this territory. By such a course they are only sowing the seeds of further trouble, which I shall not be sorry to escape.

"I am afraid I have let my pen run away with me; but in our isolation local matters absorb our whole energies, and we look upon the affairs of Europe, or even the fall of Charleston, as of minor importance.

"Believe me, yours very truly, "A. G. DALLAS.

"EDWARD WATKIN, Esq., London."



The extract from the "Grit" paper, the "Nor 'Wester" was as follows:—

"THE HUDSON'S BAY TERRITORY.

["From the 'Nor' Wester.']

"IMPORTANT STATEMENT OF PEGOWIS, THE INDIAN CHIEF.

"A few weeks ago, the venerable Chief of the Red River Indians, William King, or 'Pegowis,' left his home at the Indian Settlement—a most unusual thing for him—and came up to Fort Carry to make a formal statement, once for all, of the arrangement made by the late Earl of Selkirk with the Indians of this region in regard to their land. This statement, which he made voluntarily and deliberately, for the benefit of all whom it may concern, and for future reference if necessary, he desired to be published in this journal, and a copy thereof to be forwarded to the Duke of Newcastle. His immediate reason for doing this at present, is, he says, because he is now the only surviving Chief of the five who treated with Lord Selkirk, and as there have been many misrepresentations, he desires to see the facts placed on record before he passes off the earthly stage.