The Sun.
London, England, 1865-08-25 00:00:00

THE SUN, LONDON, FRIDAY EVE A MUST 25, 1865.

our annual industry were to be found not in floating
wealth, but in the increased value of our farms and mines
—and that, at this moment specially, from the failure of
successive,crops, the effects of the American civil war on
our commercial relations, and the feeling of insecurity as
to our position (greatly aggravated by statements of the
defencelessness of the country in the British Parliament
and by portions of the British press)—Canada was labour-
ing under a temporary but serious depression. We pointed
out that, while fully recognising the necessity and pre-
pared to provide for such a system of defence as would
rester e confidence in our future at home and abroad, the
best ultimate defence for British America was to be found
in the increase of her population as rapidly as possible,
and the husbanding of her resources to that end ; and,
without claiming it as a right, we ventured to suggest that
by enabling us to throw open the north-western territories
to free settlement, and by aiding us in enlarging ourcanals
and prosecuting internal productive works, and by pro-
-1 -meting an extensive plan of emigration from Europe into
the unsettled portions of our domain—permanent security
would be more quickly, and surely, and economically
secured than by any other means. We did not fail topoint li
out how this might be done without cost or risk to the
British Exchequer, and how greatly it would lighten the
new burden of defence proposed to be assumed at amoment
of depression by the people of Canada.
"Much discussion ensued on all these points, and the
result arrived at was that if the people of Canada under-
took the works of defence at and west of Montreal, and
agreed to expend in training their militia until the union
of all the provinces was determined, a sum not less than is
now expended annually for that service, her Majesty's Go-
vernment would complete the fortifications at Quebec, pro-
vide the whole armament for all the works, guarantee a loan
for the sum necessary to construct the works undertaken
by Canada, and in the event of war undertake the defence
of every portion of Canada with all the resources of the

empire.
" The question having arisen as to the time and order in
which these propositions should be submitted for the ap-
proval of the Imperial and Provincial Legislatures, it ap-
peared that no action could be taken upon them during the
present year; and it was, therefore, deemed inexpedient to
complicate the Confederate question by changing the basis
of the Quebec conference resolutions, which might result
from the present adoption of these propositions. The fur-
ther consideration of the defensive works was accordingly
deferred for the action of the Government and Legislature
of tho proposed British North American Confederation—
but the assurance of her Majesty's Government was at the
same time given, that if circumstances arose to render an
application expedient by Canada alone for the immediate
prosecution of the works of defence, such application would
be received in the most friendly spirit.
" On the subject of the American Reciprocity Treaty we
entered into full explanations with the Imperial Ministers.
We explained how advantageously the treaty had worked
for Canada, and the desire of our people for its renewal ;
but we showed at the same time how much more advan-
tageously it had operated for American interests—and we
expressed our inability to believe that the United States'
Government seriously contemplated the abolition of an
arrangement by which they had so greatly increased their
foreign commerce, secured a vast and lucrative carrying
trade, and obtained free access to the St. Lawrence and
to the invaluable fishing-grounds of British America—
and that on the sole ground that the Provinces had
also profited by the treaty. We explained the im-
mediate injury that would result to Canadian interests
from the abrogation of the treaty ; but we pointed out at
the same time the new and ultimately more profitable
channels into which our foreign trade must in that event
be turned, and the necessity of preparing for the change,
if indeed it was to come. We asked that the British
Minister at Washington might be instructed testate frankly
to the American Government the desire of the Canadian
people for a renewal of the treaty, and our readiness to
discuss and favourably entertain any just propositions that
might be made for an extension or modification of its con-
ditions ; we requested that the views of the American
Government should be obtained at the earliest convenient
date, and that his Excellency Sir Frederick Bruce should
act in concert with the Canadian Government in the matter.
The Imperial Government cordially assented to our sug-
gestions.
"The. important question of opening up to settlement
and cultivation the British territories on the north-west
borders of Canada next obtained the attention of the con-
ference. Your Excellency is aware that the desire of the
Government of Canada for a satisfactory and final adjust-
ment of this matter has been often formally expressed. In
your Excellency's despatch of the 19th of January, 1864, to
the Colonial Secretary, the anxious desire of the Canadian
Government was communicated 'for some speedy, inex-
pensive, and mutually satisfactory plan,' for settling defi-
nitely 'the north-western boundary of Canada,' and the
claim of Canada was asserted to ' all that portion of Central
British America which can be shown to have been in the
possession of the French at the period of the cession in
1763.'
"In reply to this despatch Mr. Cardwell, on the Ist of
July, 1864, requested to be informed whether the Govern-
ment of Canada was prepared to assist in negotiations with
the Hudson's Bay Company, with the view of accepting any
portion of the territory now claimed by that company and
providing the,means of local administration therein ; and
he suggested that, if so prepared, it would be desirable that
some person duly authorised to communicate the views of
the Canadian Government should be rent to England for
that purpose.
"On the 11th of November, 1864, a minute of Council
was approved by your Excellency, in reply to Mr. Card-
well's speech. It set forth that the Government of Canada
was ready and anxious to co-operate with the Imperial Go-
vernment in securing the early settlement of the north-
west territories, and the establishment of local government
in its settled portions ; but that in its opinion the first step
towards that end was the extinction of all claim by the
Hudson's Bay Company to proprietary rights in the soiland
exclusive rights of trade. It suggested that it was for the
Imperial Government, and not for the Government of
Canada, to assume the duty of bringing to an end a mono-
poly originating in an English charter, and exercised so
long under Imperial sanction ; but that when the negotia-
tions were brough to a close, the Government of Canada
would be ready to arrange with the Imperial Government
for the annexation to Canada of such portions of the ter-
ritory as might be available for settlement, as well as
for the opening up of communications into the territory,
and providing means of local administration. Or, should
the Imperial Government prefer to erect the territory into
a Crown colony, the Canadian Government would gladly
co-operate in the opening up of communication into the ter-
ritory, and the settlement of the country. The minute
finally suggested that the Hon. President of the Council
while in England would communicate more fully to Mr.
Cardwell the views of the Canadian Government.
" The negotiations that followed on this despatch antis-
led us of the impossibility of enforcing the end sought by
Canada without tong-protracted, vexatious, and costly liti-
gation. The Hudson's Bay Company were in possession,
and, if time were their object, could protract the proceed-
ings indefinitely ; and her Majesty's Government appeared
unwilling to ignore pretensions that had frequently re-
ceived the quasi-recognition from the Imperial authorities.
Calling to mind, therefore, the vital importance to Canada
of having that great and fertile country opened up to
Canadian channels ; remembering also the danger of large
grants of laud passing into the hands of mere moneyed cor-
porations and embarrassing the rapid settlement of the
country ; and the risk that the recent discoveries of gold
on the eastern slope of the Rocky Mountains might throw
into the country large masses of settlers unaccustomed to
British institutions we arrived at the conclusion that the
quickest solution of the question would be the best for
Canada. We accordingly proposed to the Imperial Minis-
ters that the whole British territory east of the Rocky
Mountains and north of the American or Canadian lines
should be made over to Canada, subject to such rights as
the Hudson's Bay Company might be able to establish, and
that the compensation to that company (if any were found
to be due) should be met by a loan guaranteed by Great
Britain. The Imperial Government consented to this, and
a careful investigation of the case satisfies us that the com-
pensation to the Hudson's Bay Company cannot, under any
circumstances, be onerous. It is but two years since the
present Hudson's Bay Company purchased the entire pro-
perty of the old company ; they paid £1,500,000 for the en-
tire property and assets—in which were included a large
sum in cash on hand, large landed properties in British
Columbia and elsewhere not included in our arrangement,
a very large claim against the United States Government
under the Oregon Treaty, and ships, goods, pelts, and busi-
ness premises in England and Canada, valued at £1,083,569.
The value of the territorial rights of the company, in the
estimation of the company itself, will be
easily arrived at.
" The result of our communications with the committee
of her Majesty's Government were placed by Mr. Cardwell
in the form of a despatch to your excellency. That docu-
ment bears date the 17th of June, 1865, and has already
reached your excellency's hands. It contains a correct
statement of the result of the conference.

" Although the subject was not specially referred to us,
we did not fail to call the attention of the Colonial Minister

to the anomalous position of foreigners who have settled in
Canada, and become naturalised subjects under our provin-
cial statutes. Mr. Cardwell at once admitted the hardship

of the case, and stated that it was the desire of her Ma-

jnsty's Government to remedy it, and that with that view
he had referred the subject to the law officers of the Crown
for their opinion as to the best mode of doing so.

"It will be gratifying to many devoted subjects of her
Majesty throughout British America, whose fears have been
. _

excited by tho language too often hoard of late years on

tho subject of colonial connexion, that we received from
her 31ajesty's Ministers tho assurance that tho British Go-

vernment acknowledge the obligation of defending every
portion of Canada with all the resources at its command.
" Such in brief is the outline of our communications with
her Majesty's Government, and we cannot conclude this
report without gratefully acknowledging the distinguished
consideration extended to us as the representatives of
Canada,' not only by the Ministers with whom we were
brought more directly in contact, but by many eminent
personages with whom we had the honour of conferring on
the object of our mission. To Mr. Cardwell we are espe-
cially indebted for unremitting kindness and attention.
We are happy to believe that the result of our visit to