The immediate consequence of this very unfortunate transaction was the formation of a Liberal government by Mr. Alexander Mackenzie, the leader of the opposition, who had entered the old parliament of Canada in 1861, and had been treasurer in the Ontario ministry led by Mr. Blake until 1872.  He was Scotch by birth, and a stonemason by trade.  He came to Canada in early manhood, and succeeded in raising himself above his originally humble position to the highest in the land.  His great decision of character, his clear, logical intellect, his lucid, incisive style of speaking, his great fidelity to principle, his inflexible honesty of purpose, made him a force in the Liberal party, who gladly welcomed him as the leader of a government.  When he appealed to the country in 1874, he was supported by a very large majority of the representatives of the people.  His administration remained in office until the autumn of 1878, and passed many measures of great usefulness to the Dominion.  The North-west territories were separated from the government of Manitoba, and first organised under a lieutenant-governor and council, appointed by the governor-general of Canada.  In 1875, pending the settlement of the western boundary of Ontario, it was necessary to create a separate territory out of the eastern part of the North-west, known as the district of Keewatin, which was placed under the jurisdiction of the lieutenant-governor of Manitoba.  This boundary dispute was not settled until 1884, when the judicial committee of the privy council, to whose decision the question had been referred, materially altered the limits of Keewatin and extended the western boundaries of Ontario.  In 1878, in response to an address of the Canadian parliament, an imperial order in council was passed to annex to the Dominion all British possessions in North America not then included within the confederation—­an order intended to place beyond question the right of Canada to all British North America except Newfoundland.  In the course of succeeding years a system of local government was established in the North-west territories and a representation allowed them in the senate and house of commons.

As soon as the North-west became a part of the Dominion, the Canadian government recognised the necessity of making satisfactory arrangements with the Indian tribes.  The policy first laid down in the proclamation of 1763 was faithfully carried out in this great region.  Between 1871 and 1877 seven treaties were made by the Canadian government with the Crees, Chippewas, Salteaux, Ojibways, Blackfeet, Bloods and Piegans, who received certain reserves of land, annual payments of money and other benefits, as compensation for making over to Canada their title to the vast country where they had been so long the masters.  From that day to this the Indians have become the wards of the government, who have always treated them with every consideration.  The Indians live on reserves allotted to them in certain