Chancellor of the Exchequer that this was no new proposal; that, in
fact, the Provinces had been led to believe that if they would find the
money, the State would guarantee the interest under proper precaution,
as the State had guaranteed the capital for the Canadian canals, every
shilling expended on which had been honourably repaid." In fact, "this
work was not a mere local work, but satisfied military and other
Imperial conditions." The end of this, and many other, interviews, at
the Colonial Office and at the Duke's residences, was complete
concurrence in the following programme:--(I) the Intercolonial
guarantee must be carried by the Duke; (2) measures must be taken to
start Pacific transit, in the first instance, and as a pioneer work, by
roads and telegraphs; (3) Confederation must be pushed on; and (4) that
the difficulties arising from the position of the Hudson's Bay Company
must be gravely considered with a view to some solution.

Mr. Van Koughnet, accompanied by Mrs. Van Koughnet, was, unfortunately,
wrecked off Anticosti, in the Allan steamer "North Briton." Happily
every one, after a time of great peril, was landed in safety, while
losing personal baggage and almost everything else. At a critical
moment Sir Allen McNab, who was on board the ship, also on his way to
England, when the vessel was expected to go down, said to Van Koughnet,
"Come with me and bring your wife, and we will go down together, away
from this crowd of frightened people"--alluding to the mass of steerage
passengers jostling about in panic.

On the 11th November Mr. Howe and Mrs. Howe, and Mr. Tilley arrived:
and I took the delegates to the Duke's house in London on the 14th. The
Duke received these delegates with very great cordiality. He had made,
already, an appointment with Lord Palmerston, the Prime Minister, and
had spoken to Mr. Gladstone. So, armed with a letter from the Duke, we