motion in Parliament. I have never proposed an increase, but a readjustment.' The election, which was held on September 17, resulted in an overwhelming defeat for the government. In Ontario, in Quebec and in Nova Scotia the conservative majority was two to one. British Columbia, Manitoba and Prince Edward Island were almost solidly conservative, and New Brunswick alone stood by the government. The government resigned on October 16, 1878, and on the following day the new ministry was formed as follows: JOHN A. MACDONALD, prime minister and minister of the Interior. SAMUEL L. TILLEY, minister of Finance. CHARLES TUPPER, minister of Public Works. J. H. POPE, minister of Agriculture. J. C. POPE, minister of Marine and Fisheries. R. D. WILMOT, without portfolio. CANADA UNDER MACDONALD, 1878-1891 THE NEW TARIFF ILLEY'S first budget, introduced on March 4, 1879, was a thoroughgoing measure of protection. He compared the prosperity and the abundant revenues of the Macdonald administration with the ruin and disaster which had overtaken every industry in Canada after 1873. He deplored the large volume of imports and the heavy balance of trade against Canada, which had been made a slaughter market by American manufacturers. He promised that the additional two millions of revenue would be levied on foreign products, not on imports from Great Britain, and that duties would be levied on many imports from the United States then on the free list. Although the United States had not responded to Canadian overtures for reciprocity, the budget contained an offer of reciprocity in natural products. Specific duties were largely substituted for ad valorem duties. The opposition went squarely on record against the new policy. Sir Richard Cartwright denounced it as framed in the interest of rings and of political partisans, whose influence would be more potent than ability, inventiveness and industry. Mackenzie moved that the house regards the scheme now under consideration as calculated to distribute unequally and therefore unjustly the burdens of taxation; to divert capital from its natural and most profitable employment, and to benefit special classes at the expense of the whole community; tending towards rendering futile the costly and persistent efforts of this country to secure a share of the immense and growing carrying trade of this continent, and to create an antagonism between the commercial policy of |