JUDGE SAMUEL NELSON of the Supreme Court of the E. R. HOAR of Massachusetts. GEORGE H. WILLIAMS of Oregon. Macdonald accepted a place on the commission with misgivings. The original proposal was that there should be three members on each side. The increase to five weakened his position, but on the advice of his colleagues he adhered to his acceptance. Still he wrote to Sir John Rose: 'If anything goes wrong I shall be made the scapegoat, at least so far as Canada is concerned.' He felt himself in a delicate position, having to steer between the danger of neglecting the special interests of Canada and the danger of taking a view too exclusively Canadian, regardless of general imperial interests. Canada at this time was eager for reciprocity in trade with the United States, and in exchange for limited reciprocity would have made concessions in regard to the fisheries. To this the Americans were opposed, preferring to give a money equivalent for the fisheries. Macdonald told Lord de Grey it would be out of the question for Canada to surrender her fisheries for all time for any cash compensation. He regarded the value of the catch as less important than the leverage which the fisheries gave for improving the position of Canada as a maritime power. Early in the negotiations Macdonald took the precaution of instructing his government to cable the Colonial Office that Canada considered the inshore fisheries as her property, which could not be sold without her consent. The Colonial Office assented, but finally gave instructions to proceed subject to ratification by the parliament of Canada. Macdonald was embarrassed by this instruction. If overruled by his colleagues in the commission he must either protest and withdraw, thus disclosing a conflict between Canada and Great Britain, or remain and be attacked for sacrificing Canada's rights; or possibly be compelled to vote against the treaty in the Canadian parliament. The Canadians expected that their claim for compensation for the Fenian raids would be brought before the commission. It was contended that Canada's case on this account was clearer than the Alabama case; that the escape of the Alabama was due to a momentary lapse of vigilance; while the preparations for the Fenian raids were open and extended over a long period of time. But when the commission met, it was found that these claims had not been included in the terms of reference. The Gladstone government decided not to press the point; but they admitted its justice and suggested a money compensation to Canada. Sir John Macdonald dissented, and on his suggestion it was agreed that Great Britain should guarantee a loan for Canadian works of defence. The San Juan dispute was also eliminated from the negotiations by a reference to the award of the German Emperor.1 This dispute arose out of the Oregon Treaty of 1846. The question was whether the Island of San Juan between Vancouver Island and the mainland was British or American territory. The Americans rejected a British proposal for full reciprocity in return for the use of the fisheries. An American offer of one million dollars for the fisheries in perpetuity, and a British proposition for free fish, salt, lumber, coal, and reciprocity in the coasting trade were also rejected. The British commissioners next proposed to concede the right to fish inshore for a term of years in exchange for the admission of coal, salt, lumber and fish into the United States. Against this Macdonald formally protested. He said that the proposed consideration for the fisheries was not adequate. The arrangement would be highly distasteful to Canada and hard to justify in the Canadian parliament. Earl de Grey, to whom this protest was addressed, said that it would compel him to inform the United States commissioners that the negotiations were at an end. Macdonald, unwilling to make Canada responsible for the failure of the negotiations, consented to modify his expression as to the probable action of the Canadian parliament. The attitude of the British commissioners caused Sir John to say in a letter: 'I must say that I am greatly disappointed at the course taken by the British Commissioners. 1 See 'Boundary Disputes and Treaties' in this section. VOL, VI D They seem to have only one thing on their minds, that is, to go home to England, with a treaty in their pockets, settling everything no matter at what cost to Canada.' Earl de Grey having decided that the time had come to communicate his position to the home government, Macdonald went on record thus: Sir John Macdonald objects to any arrangement based on a moneyed consideration only, or with free fish added, and adheres to the proposition that Canadian coal, salt, fish and lumber should be admitted into the United States, to be supplemented by a money payment. If this cannot be obtained, he would desire that an arrangement should be made as to the headland question, and as to the admission of American vessels into Canadian ports for trading purposes, leaving Canada in possession of the inshore fisheries. He protested against the mingling of various international questions as prejudicial to Canada. Canada was asked to make sacrifices upon some points in order to procure a settlement of other questions in which England was more vitally interested. The right to the inshore fisheries was not a point of difference between the United States and Canada. Canada's right was undisputed. The Americans, he said, were simply attempting to bully her into a surrender of her rights by speaking of possible collisions and bloodshed. If it appeared that England was afraid or unwilling to protect Canada, annexation sentiment would be strengthened. In April Macdonald wrote to his colleague Dr Tupper, advising him that the commission had agreed to a settlement of the inshore fisheries on terms of free trade in fish and a money compensation to be fixed by arbitration.1 As finally settled and signed on May 8, 1871, the treaty provided : That the settlement of the Alabama claims should be left to a Board of Arbitration, to meet at Geneva. That the Canadian fisheries were to be opened to the Americans for at least twelve years; the question of money compensation to Canada to be left to a commission to meet at Halifax. 1 See 'The Fishery Arbitrations' in this section. That the Americans should have free navigation of the St Lawrence in perpetuity and the canals for a similar period. That salt-water fish and fish oil should be admitted into the United States free of duty for a similar period. That Canada should have the right of free navigation of Lake Michigan, and of the rivers Yukon, Stikeen and Porcupine on the Pacific coast. That Canadians should have the right to transport goods in bond through the United States, and that Americans should have the same right in Canada. That the settlement of the San Juan boundary should be left to the German Emperor. Macdonald contemplated the possibility of the Canadian parliament rejecting the treaty, and he advised the British government to get the decision in the Alabama case promptly before the Canadian parliament met, so that the Alabama settlement would not be prejudiced by the rejection of the fishery articles. But when parliament met he had decided that it was his duty to accept the treaty. He said: 'I believe that the sober second thought of this country accords with the sober second thought of the government, and we come here and ask the people of Canada through their representatives to accept this treaty; to accept it with all its imperfections, to accept it for the sake of peace, and for the sake of the great Empire of which we form a part.' The two houses of the New Brunswick legislature passed resolutions condemning the treaty. But it was on the whole favourably received by the Nova Scotia fishermen. It was highly unpopular in Ontario, a sentiment which was due partly to failure to press for compensation for the Fenian raids. The result of the arbitration as to the cost of fisheries was unexpectedly favourable to Canada. The arbitrators in 1877 awarded Canada $5,500,000 for the excess in value of the Canadian over the American fisheries. The American commissioner dissented with emphasis, and was strongly supported in the press and in Congress, but the sum was paid. The Geneva Arbitration in 1872 awarded $15,500,000 to the United States for the Alabama losses. The German Emperor in the same year decided that the Island of San Juan belonged to the United States. IN VI FALL OF THE MACDONALD GOVERNMENT [N the period between 1867 and 1872 much of the work of laying the foundations of the new nationality was done. By the inclusion of British Columbia the boundaries of Canada were extended to the Pacific coast. Provision was made for communication from ocean to ocean. A federal government and parliament were organized and set in motion, and provincial legislatures and governments were formed. The difficulties that arose in Nova Scotia and the Red River territory were incidents of the new responsibilities that the young Confederation had assumed. At Washington a Canadian statesman is found dealing with an important question of external relations, and having to reconcile Canadian with imperial interests; to consider the position of Canada as a part of the British Empire and as a part of the continent of America. The fortunes of public men and of parties, though of minor importance, are interwoven with the history of the nation. It has been seen that at the outset Macdonald chose a coalition as his instrument of government, not only for the Dominion of Canada, but for the Province of Ontario. In these combinations he showed his weakness and his strength. He could induce liberals of ability to join his coalition, but he could not induce the masses of the liberal party to accept McDougall, Howland, Aikins, Hincks or Sandfield Macdonald as their leaders. The bringing of Joseph Howe into the cabinet weakened Howe's influence, but added no strength to Macdonald. In Ontario the liberals, under George Brown, Alexander Mackenzie and Edward Blake, attacked the coalition in Ontario and battered it down in four years. In May and June of 1870, while much important business relating to the new province of Manitoba was under dis |