CO885(1-2) — Page 195

PUBLIC RECORD OFFICE

C.O.

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885

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PUBLIC RECORD OFFICE, LONDON

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of commercial distress, occasioned by the change of the commercial policy of this country, which has already been adverted to, contributed much to in- crease the bitterness of feeling against the Govern- ment, more particularly in Montreal, that town having suffered most from the change.

This commercial distress and the circumstance that corn has been selling considerably lower within the British territory than over the American boun- dary, under the combined influence of the change of our Corn Law, and of a defective harvest in some of the northern States of the Union while there was a good one in Canada, has given rise to a rather serious movement in favour of separating Canada from this country, in order to annex it as an addi- tional State to the Union. But this movement has been almost confined to the mercantile classes, who, however, are by no means unanimous, and princi- pally to the city of Montreal and to its vicinity. In Upper Canada it has met with scarcely any sup- port; and from the last accounts it would appear that it is beginning to be very generally regarded as a failure. The Governor-General has, by the advice of his Executive Council, called upon officers of militia and others holding appointments at the plea- sure of the Crown, whose names have appeared as having signed the address to the people of Canada in favour of this dismemberment of the empire, to say whether they have really done so, and those who have not denied it have been dismissed. This measure, of which intelligence has only just In been received, it is intended to approve. consequence of the events of last summer, the Ilouse of Assembly by an address to the Go- vernor-General, requested him to remove the scat ⚫of Government from Montreal, and to establish it for alternate parliaments, at Toronto and at Quebec. This has been done accordingly, and the residence of the Governor-General and the public offices have just been transferred to Toronto. Lord Elgin re- ports this measure to have been highly successful already.

In other respects, Canada is very prosperous: there has been a good harvest, a large and success- ful immigation; industry is most actively carried on; the new canals, affording an easy passage for sea-

4, and 5.

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going ships of 300 or 400 tons, from Quebec to the western lakes, are in successful operation; and there is every prospect that, with the facilities afforded by the repeal of the Navigation Laws, this line of inter- nal navigation will carry off a very large proportion of the trade between the sea board and the western States of the Union.

The movement in favour of annexation has par- tially extended itself from Canada to New Bruns wick, where the pressure of commercial distress has been also felt, and has created some desire for the adoption of the policy of "protection" which has shown itself in supporting the scheme of annexation. Politically, however, the state both of New Bruns- wick and of Nova Scotia is upon the whole patis- factory, that of Nova Scotia highly so.

In Newfoundland the administration of Sir Gaspard Lo Marchant continues to be energetic and prosperous, and he seems to have successfully solved that most difficult problem of arresting a system of relief which was rapidly plunging the population into pauperism, without producing violent discontent or any severe distress.

II. At the Cape of Good Hope the unfortunate differences with regard to the reception of convicts have interrupted the otherwise satisfactory progress of the colony in prosperity. For an explanation of the measures which have been adopted upon this Appendix, Nos. 3, subject, I must refer to the despatches lately addressed to Sir H. Smith. I have to add, that there is no reason, as I trust, to suppose that the excitement which has been created will be more than temporary, and it has not been regarded as affording any sufficient reason for arresting the mea- sures for the establishment of Representative Go- vernment in that colony which have been for some time under consideration, and which it is hoped To the valuable will now be speedily completed. dependency of the Cape, the settlement of Natal, a considerable stream of emigration has within the last year been directed; it seems likely to be soon resorted to by a large number of settlers of the best class; and the cultivation of cotton, which has been commenced with much success, seems likely to become a very important branch of industry.