[Sidenote:  Commercial depression.]

The winter of 1848 passed quietly; but the commercial depression, which was then everywhere prevalent, weighed heavily on Canada, more especially on the Upper Province.  In one of his letters Lord Elgin caught himself, so to speak, using the words, ‘the downward progress of events.’  He proceeds:—­

The downward progress of events!  These are ominous words.  But look at the facts.  Property in most of the Canadian towns, and more especially in the capital, has fallen fifty per cent. in value within the last three years.  Three-fourths of the commercial men are bankrupt, owing to Free-trade; a large proportion of the exportable produce of Canada is obliged to seek a market in the States.  It pays a duty of twenty per cent. on the frontier.  How long can such a state of things be expected to endure?

Depend upon it, our commercial embarrassments are our real difficulty.  Political discontent, properly so called, there is none.  I really believe no country in the world is more free from it.  We have, indeed, national antipathies hearty and earnest enough.  We suffer, too, from the inconvenience of having to work a system which is not yet thoroughly in gear.  Reckless and unprincipled men take advantage of these circumstances to work into a fever every transient heat that affects the public mind.  Nevertheless, I am confident I could carry Canada unscathed through all these evils of transition, and place the connection on a surer foundation than ever, if I could only tell the people of the province that as regards the conditions of material prosperity, they would be raised to a level with their neighbours.  But if this be not achieved, if free navigation and reciprocal trade with the Union be not secured for us, the worst, I fear, will come, and that at no distant day.

[Sidenote:  Political discontent.]

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

[Sidenote:  Rebellion Losses Bill.]

Irritated by loss of office, groaning under the ruin of their trade, outraged moreover (for so they represented it to themselves) in their best and most patriotic feelings by seeing ‘Rebels’ in the seat of power, the Ex-ministerial party were in a mood to resent every measure of the Government, and especially every act of the Governor-General.  When Parliament met on January 18, he took advantage of the repeal of the law restricting the use of the French language, to deliver his speech in French as well as in English:  even this they turned to his reproach.  But their wrath rose to fury on the introduction of a Bill ’to