CANADA HISTORY

Prince Edward Island

The entry of Prince Edward Island (PEI) into Confederation in 1873 was a pivotal moment in Canadian history. Although PEI initially resisted joining the Dominion of Canada in 1867, the unique circumstances and challenges faced by the small colony—particularly the issue of absentee landowners, economic struggles, and external pressures—ultimately led to its decision to become the seventh province of Canada. This decision was shaped by a complex interplay of internal and external factors, and its importance cannot be overstated, as it solidified the Confederation project and reinforced Canada’s independence in the face of potential American influence.

The Absentee Landowner Issue: A Longstanding Grievance

One of the central issues that prevented PEI from becoming one of the founding provinces of Confederation in 1867 was the question of absentee landownership. This issue had deep historical roots, dating back to when the island, originally part of French Acadia, was ceded to Britain in 1763 following the Treaty of Paris. The British government, under Captain Samuel Holland, decided in 1766 to divide the island into 67 lots. These lots were granted to wealthy British and English landowners, many of whom had little or no interest in the island’s development or its settlers.

Most of the landowners were absentee landlords who had never set foot on PEI. They treated the island as a source of income, renting land to settlers at high rates while refusing to sell their holdings. This system created immense frustration and instability for the island's settlers, who were mostly poor farmers. Unable to own the land they worked, the settlers faced a precarious existence, vulnerable to the whims of distant landlords. Efforts by the colonial government and residents to resolve this issue were largely unsuccessful, leading to widespread dissatisfaction.

At the Charlottetown Conference in 1864, when the idea of Confederation was first seriously discussed among British North American colonies, PEI’s delegates were already wary of joining the larger provinces of Ontario, Quebec, New Brunswick, and Nova Scotia. While the potential benefits of Confederation were debated, the island’s delegates were adamant that the issue of absentee landownership needed to be resolved for PEI to consider joining. However, during the subsequent Quebec Conference, this matter was not adequately addressed, and PEI’s leadership became increasingly disillusioned with the idea of Confederation.

Economic Independence and the Railway Disaster

Following the Quebec Conference, PEI decided to pursue its own path rather than join Confederation. The colony embarked on a project to build a railway to boost its economy, improve internal transportation, and connect its scattered settlements. This railway was intended to provide a vital service for the island's inhabitants, allowing for better communication and the transportation of goods within PEI. The project was seen as a way to assert economic independence from both the mainland and the absentee landowners.

However, the railway quickly turned into a financial disaster. The small island lacked the resources to complete and operate such an ambitious project without plunging itself into deep debt. Construction costs skyrocketed, and the island government was soon overwhelmed by the fiscal burden. The railway's failure underscored PEI’s economic vulnerability, making the need for external support more urgent. By the early 1870s, the island’s economy was faltering, and the once-distant possibility of Confederation now appeared as a viable solution to PEI's pressing problems.

Renewed Negotiations and External Pressures

As the economic situation in PEI deteriorated, the colony faced another challenge: communication with the mainland was unreliable. The island's geographic isolation made it difficult to maintain regular contact with the other British North American colonies, further hampering economic and political integration. This sense of isolation, combined with the worsening financial crisis, prompted many islanders to reconsider their opposition to Confederation.

Meanwhile, external pressures were mounting. The British government, eager to solidify the unity of its North American colonies and establish a strong counterbalance to the United States, began to apply diplomatic pressure on PEI to join Confederation. This was part of a broader imperial strategy to maintain British influence in North America after the United States had completed its westward expansion and absorbed new territories. For Britain, a united Canada was essential to preserving its foothold on the continent.

At the same time, the United States had its own designs on PEI. American expansionism, driven by the doctrine of Manifest Destiny, had led some American politicians to view PEI as a potential target for annexation. Informal delegates were sent to the island to promote the idea of joining the United States, promising economic opportunities and better communication links with the mainland. While this proposal gained some traction, the majority of islanders were reluctant to sever ties with Britain, fearing the loss of their identity and political autonomy.

The Confederation Deal

In 1873, with the economic crisis deepening and the future of the island hanging in the balance, Canada re-opened negotiations with PEI about the possibility of Confederation. This time, the terms offered by the Canadian government were far more favorable than those in 1867. Recognizing the urgent need to address PEI's financial woes and the absentee landowner issue, Canada made significant concessions. The new terms included:

Absorption of PEI’s Debt: Canada agreed to absorb PEI's crippling railway debt into the national debt, providing immediate financial relief to the island's government.

Land Purchase: The Canadian government promised to provide funding to buy out the absentee landowners, a move that would allow the settlers to finally gain ownership of their land and put an end to the long-standing grievances surrounding land tenure on the island.

Reliable Transportation: Canada committed to establishing a reliable communication and transportation link between PEI and the mainland. This would eventually take the form of a ferry service, ensuring that PEI was no longer isolated from the rest of the country.

These concessions addressed the island’s most pressing issues, and with the added pressure from Britain, the leadership in PEI decided to accept the terms. On July 1, 1873, Prince Edward Island officially joined Canada, becoming the seventh province of the Dominion.

The Significance of PEI’s Entry into Confederation

The entry of PEI into Confederation was significant for several reasons. First, it solidified Canada’s territorial integrity. By bringing PEI into the union, Canada ensured that the island would not fall under American influence or annexation. This was a critical step in reinforcing Canada’s independence and securing its place as a distinct political entity in North America.

Second, the resolution of the absentee landowner issue was a major victory for the settlers of PEI, who had struggled for decades under the oppressive system of land tenure. By buying out the absentee landlords, the Canadian government helped to stabilize the island's economy and provided a sense of ownership and security for the settlers. This move also demonstrated the flexibility and responsiveness of the Canadian government, which was willing to adapt its policies to meet the specific needs of its new provinces.

Third, PEI’s entry into Confederation highlighted the importance of infrastructure and transportation in the development of the Canadian nation. The promise of a reliable communication link with the mainland was crucial in persuading PEI to join, and it underscored the role that transportation networks played in fostering economic growth, political unity, and national identity in the vast Canadian landscape.

Finally, PEI’s decision to join Confederation was a reflection of the broader geopolitical dynamics of the time. The island’s leaders recognized that remaining outside of Confederation left them vulnerable to external pressures, particularly from the United States. By joining Canada, PEI not only secured economic and political stability but also reaffirmed its place within the British Empire, aligning itself with a larger vision of Canadian unity and imperial strength.

The inclusion of Prince Edward Island in Confederation in 1873 was a pivotal moment in Canadian history, marking the resolution of long-standing economic and political challenges on the island and reinforcing the unity of the new Canadian nation. The issues that had kept PEI out of Confederation in 1867—absentee landownership, economic vulnerability, and concerns over political autonomy—were effectively addressed through negotiation and compromise. In the end, PEI’s entry into Confederation strengthened Canada’s territorial integrity, secured its independence from American influence, and contributed to the development of a national identity that embraced regional diversity within a unified political framework.