CHAPTER IV.

CANADA.

DISCONTENT--REBELLION LOSSES BILL--OPPOSITION TO IT--NEUTRALITY OF THE
GOVERNOR--RIOTS AT MONTREAL--FIRMNESS OF THE GOVERNOR--APPROVAL OF HOME
GOVERNMENT--FRESH RIOTS--REMOVAL OF SEAT OF GOVERNMENT FROM
MONTREAL--FORBEARANCE OF LORD ELGIN--RETROSPECT.


[Sidenote: Commercial depression.]

The winter of 1848 passed quietly; but the commercial depression, which was
then everywhere prevalent, weighed heavily on Canada, more especially on
the Upper Province. In one of his letters Lord Elgin caught himself, so to
speak, using the words, 'the downward progress of events.' He proceeds:--

The downward progress of events! These are ominous words. But look at
the facts. Property in most of the Canadian towns, and more especially
in the capital, has fallen fifty per cent. in value within the last
three years. Three-fourths of the commercial men are bankrupt, owing
to Free-trade; a large proportion of the exportable produce of Canada
is obliged to seek a market in the States. It pays a duty of twenty
per cent. on the frontier. How long can such a state of things be
expected to endure?

Depend upon it, our commercial embarrassments are our real difficulty.
Political discontent, properly so called, there is none. I really
believe no country in the world is more free from it. We have, indeed,