CANADA HISTORY

Liberal Interlude

In April of 1873, Sir John A. Macdonald, the first Prime Minister of Canada, faced a serious political crisis over the Pacific Railway scandal. Accusations surfaced that his Conservative Party had accepted bribes in exchange for political favors related to the construction of the Canadian Pacific Railway, a vital national project intended to link eastern Canada with British Columbia. Before the vote of censure could be taken in Parliament, Macdonald resigned, marking a dramatic fall from grace for the man who had been instrumental in crafting Canada’s Confederation.

With Macdonald’s resignation, Alexander Mackenzie was called upon by the Governor General to form a government. Mackenzie, a stonemason turned politician and a leader of the Liberal Party, accepted the role and quickly moved to assert his leadership. However, recognizing the need for a fresh mandate, Mackenzie called a general election in 1874. The election was fought mainly on the back of the Pacific Railway scandal, and Mackenzie secured a landslide victory, with his Liberals winning 173 seats to the Conservatives' 33.

However, Mackenzie’s triumph was short-lived. Almost immediately after his victory, a worldwide recession set in. This economic downturn would define much of his time in office and prove to be an insurmountable obstacle for his government. The recession led to decreased demand for Canadian goods abroad, and the Canadian market was flooded with excess foreign products, leading to economic stagnation and hardship. As if this was not enough, poor crop yields exacerbated the situation, particularly in the agricultural heartlands, further undermining the economy. The Mackenzie government found itself forced into difficult decisions to try to combat the financial crisis.

One of Mackenzie’s first moves was to try to renew some form of reciprocity with the United States, a trade agreement that had historically benefited Canadian agricultural producers by giving them access to American markets. In 1874, he dispatched prominent politician George Brown to Washington to negotiate a new deal. However, the effort was a failure, and the U.S. was not interested in restoring the arrangement. Without reciprocity, Mackenzie reluctantly had to raise protective tariffs on imports to safeguard Canadian industries from being overwhelmed by foreign goods, even though this approach was contrary to the free-trade principles many Liberals supported.

Mackenzie’s financial conservatism extended to cost-cutting measures in government spending, which soon targeted the most ambitious project of all: the transcontinental railway. The railway had been a central promise made to British Columbia when it agreed to join Confederation in 1871, with the understanding that the railway would be completed within 10 years. However, Mackenzie did not believe that the country could afford to build the railway in one go, especially during a severe economic downturn. Instead, he proposed an interim solution of building short sections of the railway between natural water transportation routes, essentially delaying the full construction of the railway.

This decision had serious political consequences. British Columbia, already geographically isolated from the rest of Canada, had viewed the completion of the railway as essential for its economic development and integration into the new Confederation. When Mackenzie’s government slowed progress on the railway, discontent in the province grew. Calls for secession from Confederation began to emerge as British Columbians became increasingly disillusioned with the federal government’s handling of the railway project. Mackenzie attempted to renegotiate the terms of the railway agreement with British Columbia, but this only inflamed the situation further.

Realizing that the crisis was threatening to tear the young nation apart, the Governor General, Lord Dufferin, personally traveled to British Columbia in an attempt to mediate the situation and reassure the province that Canada remained committed to building the railway. His efforts, combined with some concessions from the federal government, managed to prevent British Columbia from leaving Confederation, but the damage to Mackenzie’s political standing had been done.

Despite the difficulties surrounding the railway, Mackenzie’s government did achieve significant progress in several other areas. One of the most important legacies of his time in office was the establishment of the Supreme Court of Canada in 1875. This institution became the highest court in the land, providing a crucial mechanism for the interpretation of Canadian law and ensuring that the country’s legal system would develop independently of Britain.

Mackenzie also undertook significant reforms to the electoral system. His government passed legislation requiring financial accountability for campaign expenditures and eliminating property ownership requirements for those seeking to run for Parliament. These reforms aimed to make the political process more transparent and accessible, marking an important step forward in the democratization of Canadian politics.

During Mackenzie’s administration, the North-West Mounted Police (which would later become the Royal Canadian Mounted Police, or RCMP) were also established. This force was critical to maintaining law and order in the newly acquired western territories, especially as the government sought to integrate these areas into Canada and encourage settlement. The creation of the Northwest Territories Act during this period laid the groundwork for the governance of the vast lands to the west, ensuring that they would be under the control of the federal government and setting the stage for future development.

Mackenzie’s government also passed the Homestead Act, which was designed to encourage settlement in the West by offering 160 acres of land to any settler willing to live on and improve the land. This policy was instrumental in the eventual settlement of the Prairies, though its immediate impact was limited by the economic challenges of the time.

In the realm of foreign policy, Mackenzie sought to expand Canadian participation in international negotiations. He insisted that Canadians be included in any discussions with foreign powers that directly affected the country, marking a significant step towards Canadian autonomy in diplomatic matters. This principle had been championed by Macdonald during the negotiations for the Washington Treaty, and Mackenzie continued to assert Canada’s right to a voice in its own affairs on the international stage.

One of the more contentious battles of Mackenzie’s tenure was the struggle to limit the powers of the Governor General. Mackenzie was deeply offended when Lord Dufferin intervened in both the railway issues in British Columbia and in the handling of the executioners of Thomas Scott, a key figure in the Red River Rebellion. Mackenzie argued that the Governor General should not interfere in the domestic policies of a self-governing Dominion, and ultimately the British government agreed, instructing Lord Dufferin to limit his involvement in Canadian domestic matters. This marked an important precedent in the gradual reduction of British influence over Canadian governance.

As the next election approached in 1878, Mackenzie’s popularity had waned considerably. The economic hardships brought on by the global recession, the discontent in British Columbia over the railway, and the general sense that his government had been unable to revive the country’s fortunes weighed heavily on the electorate. Meanwhile, John A. Macdonald, who had remained active in politics and led the Conservative Party, was staging a political comeback. Macdonald’s charisma and ability to connect with voters, combined with the Liberal Party’s struggles, led to a decisive Conservative victory in the 1878 election, and Mackenzie’s government was swept from power.

In conclusion, Alexander Mackenzie’s time as Prime Minister was marked by significant achievements in the areas of judicial reform, electoral transparency, and the establishment of key institutions like the Supreme Court and the North-West Mounted Police. However, his tenure was also plagued by economic difficulties and political missteps, particularly with regard to the transcontinental railway and relations with British Columbia. His government laid important foundations for Canada’s development, but the combination of economic challenges and his cautious fiscal policies ultimately led to his defeat in 1878. Mackenzie’s government, though short-lived, played a crucial role in shaping Canada’s political landscape and advancing the country’s path towards greater autonomy and nationhood.