In 1849, Lord James Bruce, the 8th Earl of Elgin and Governor General of the Province of Canada, faced a period of political and economic turbulence that would test both his leadership and the fragile stability of British North America. The Depression in Montreal that year was more than an economic downturn; it was a moment of social upheaval, political violence, and a deepening divide between the French and English populations. Lord Elgin’s response to the crisis, particularly his handling of the controversial Rebellion Losses Bill, would have far-reaching implications not only for Montreal but for the future of responsible government and the Canadian Confederation. This was a defining moment in Canadian history, one in which the forces of political reform, economic change, and cultural tension converged in a dramatic and often violent manner. Lord Elgin’s measured yet resolute response to the Depression and the events surrounding it would leave an indelible mark on the emerging political fabric of Canada.
The roots of the Depression in Montreal in 1849 can be traced back to the broader economic and political context of the time. Montreal, then the largest city in British North America, was an economic hub, particularly for trade and commerce along the St. Lawrence River. However, the city’s economy had been deeply affected by the political instability of the preceding decade, particularly the Rebellions of 1837-38 in both Upper and Lower Canada. These rebellions, sparked by demands for political reform and responsible government, had been crushed by British military forces, but they left behind a legacy of division and unrest. The economic disruption caused by the rebellions, coupled with the slow recovery of trade and the agricultural downturn in the region, created a fragile economic environment in Montreal by the late 1840s.
Montreal’s depression was compounded by political tension. By 1849, the movement for responsible government had gained significant traction in the Province of Canada, particularly among reform-minded politicians in both Canada West (modern-day Ontario) and Canada East (modern-day Quebec). Lord Elgin, appointed Governor General in 1847, was tasked with navigating these political waters. He was a firm believer in the principles of responsible government, which meant that the executive government would be accountable to the elected legislative assembly rather than to the colonial governor. Elgin understood that political reform was essential for maintaining stability in the colony, and he sought to implement these reforms while maintaining the delicate balance between the French and English populations.
The Rebellion Losses Bill, introduced in the legislative assembly in 1849, became the focal point of the political and economic crisis in Montreal. The bill proposed compensating residents of Lower Canada who had suffered property losses during the Rebellions of 1837-38. For many French-Canadians, who had supported the Patriote cause during the rebellion, the bill was a long-overdue recognition of their grievances and a step toward reconciling the French and English populations. However, for many English-speaking residents of Montreal, particularly the business elite, the bill was seen as a reward for treason. They viewed the Patriotes as rebels who had sought to overthrow British rule, and the idea of compensating them for their losses was an affront to their loyalty and their economic interests.
As the debate over the Rebellion Losses Bill intensified, so did the political and social tensions in Montreal. The city, already struggling with economic depression, became a hotbed of unrest. English-speaking merchants, many of whom were deeply involved in Montreal’s economic life, were outraged by the proposed legislation. They feared that the compensation would further drain the colony’s already strained finances, and they viewed it as a betrayal of their loyalty to the British Crown. The opposition to the bill quickly took on a violent tone, with protests and riots breaking out across the city. The political divide between the French and English populations in Montreal, always present, became more pronounced, as each side saw the bill as either a vindication of their rights or a grave injustice.
Lord Elgin, despite the volatile situation, remained committed to the principles of responsible government. He believed that as the representative of the British Crown, his role was not to veto legislation passed by the duly elected assembly, even if he personally disagreed with it or if it was unpopular with certain segments of the population. This commitment to responsible government was a critical moment in the development of Canadian democracy, as it set the precedent that the colonial governor would respect the will of the elected assembly, even in the face of fierce opposition. On April 25, 1849, Elgin gave royal assent to the Rebellion Losses Bill, an act that would have profound consequences for Montreal and the future of the colony.
The response to Elgin’s decision was immediate and violent. That same day, a mob of angry English-speaking protestors gathered in Montreal, furious at what they saw as the governor’s betrayal. The crowd descended on the Parliament buildings, which were then located in Montreal, and set them ablaze. The Parliament building, along with its irreplaceable archives, was destroyed in the fire. This act of violence was a stark symbol of the deep divisions that existed within the colony and the lengths to which some were willing to go to resist political change. The burning of Parliament shocked the colony and the British government, highlighting the fragility of the political and social order in British North America.
For Lord Elgin, the aftermath of the riots was a test of his resolve. He refused to back down from his commitment to responsible government, even as calls for his resignation grew louder. His stance was not without personal cost; Elgin was physically attacked by angry mobs on more than one occasion, and he faced intense pressure from the British colonial elite in Montreal. Yet, Elgin understood that yielding to the demands of the protestors would set a dangerous precedent, one that would undermine the very principles of responsible government that the colony had fought to achieve. By standing firm, Elgin helped to solidify the concept of responsible government in Canada, demonstrating that the will of the elected assembly would prevail over mob violence and political pressure.
The long-term implications of the Depression in Montreal and the events of 1849 were significant for both the city and the Province of Canada as a whole. The destruction of the Parliament buildings in Montreal marked the end of the city’s role as the political capital of the Province of Canada. In the years that followed, the capital was moved between Toronto and Quebec City before finally settling in Ottawa in 1857. Economically, Montreal eventually recovered from the depression, but the events of 1849 left a lasting mark on the city’s political landscape. The riots and the burning of Parliament deepened the divide between the French and English populations, reinforcing a sense of alienation and mistrust that would continue to shape the city’s political culture in the years to come.
More broadly, the events of 1849 were a crucial moment in the development of Canadian political institutions. Lord Elgin’s decision to uphold the principles of responsible government in the face of intense opposition set a lasting precedent for the relationship between the executive and the legislature in Canada. His actions demonstrated that the governor’s role was not to impose his own will on the colony, but to respect the decisions of the elected representatives of the people. This was a significant step toward the establishment of a more democratic and self-governing Canada, one in which the power of the colonial elite was gradually replaced by the authority of elected assemblies.
The Rebellion Losses Bill and the events surrounding it also had a profound impact on the French-Canadian population. For many French-Canadians, the passage of the bill was a symbolic victory, a recognition of the injustices they had suffered during the Rebellions of 1837-38. It helped to foster a sense of political inclusion among French-Canadians, who had long felt marginalized by the British colonial administration. However, the violent reaction to the bill by the English-speaking elite in Montreal also reinforced the cultural and political divide between the two groups, a divide that would continue to shape Canadian politics for decades.
In conclusion, Lord Elgin’s handling of the Depression in Montreal and the Rebellion Losses Bill in 1849 was a defining moment in Canadian history. His steadfast commitment to responsible government, even in the face of violent opposition, helped to establish the principles of democracy and political accountability that would become the foundation of Canada’s political system. The events of 1849 highlighted the deep cultural and political divisions within the colony, but they also demonstrated the resilience of Canadian political institutions in the face of crisis. Elgin’s legacy, though controversial at the time, would endure as one of the key moments in Canada’s journey toward self-government and political maturity. His actions, and the violent reactions they provoked, underscored the challenges of governing a diverse and divided society, but they also laid the groundwork for the eventual creation of a unified Canadian nation.
On Monday last when I went into Montreal to receive the address of the Assembly I was brutally assaulted. Almost all the leaders in these commotions are bankrupts - desperate men who are looking to annexation as a last resource - Sir A. McNab, Cayley and others of the political clique are also ruined men. I think that in a few days U. C. will speak out with great unanimity in favor of order and of my policy. Already addresses from that quarter are beginning to pour in. Of course all French Lower Canada is with us but the great object is to keep them quiet and to prevent collision between the races. The only advice I can venture to give you is to take time and wait for further intelligence before you decide upon the course you will follow. Montreal is rotten to the core and if all Canada be like it the sooner we have done with it the better. I hope however for better things. The orangemen are powerful only in the towns, where their organization enables them to act at once. Petitions are being signed praying for my recall, I wish to God they had nothing more mischievous in hand.
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Source: NAC/ANC, Elgin-Grey Papers