ABSTRACT
Chancellors of the Exchequer, considered that the Canadians had themselves to blame for the preference given to United States securities. I In the end, however, he won them over; and the effect of Howe's operations upon opinion was seen when in February Stanley came out boldly, in a discussion in the House of Lords, in favour of the guarantee. On 10 March, after delay due to a political crisis, the negotiations with Howe were brought to a conclusion. The Imperial Government agreed on certain conditions to Howe's request for an Imperial guarantee to a loan of £800,000, the estimated expense of the part of the projected line passing through Nova Scotia, on condition that satisfactory arrangements of a similar kind were made with Canada and New Brunswick. The Government would not feel justified in asking Parliament to pledge the credit of the country for any object not of Imperial importance, but would not insist on the Robinson line. 'It is also to be understood', the letter added, 'that Her Majesty's Government will by no means object to its forming part of the plan ... that it should include a provision for establishing a communication between the projected railway and the railways of the United States'. The loans were to be made a first charge on the provincial revenues after the existing debts and civil lists, and secured on special taxes, and were to be expended by the Colonial Governments under the superintendence of Imperial Commissioners. Convicts might be employed, but only on express application from the Provincial Legislatures.z
Grey and Howe between them, then, had overcome the inertia of the Cabinet on the one hand, the hostility of the City on the other. For the City looked suspiciously at this heresy of a laissez-faire Government. 'It is impossible to conceal that t.he argument used by Nova Scotia and New Brunswick, that they have a right to the same help as has already been accorded from time to time to Canada, may be used by every other colony; that the original departure from the principle of leaving all these things to the natural course of private enterprise was consequently erroneous .... Of all the pleas put forth on behalf of
The Government, however, had committed themselves. Grey commended the scheme to the Governors, and Howe went back to commend it to the peoples of British North America.
