Wilfrid Laurier

D

Boundary Dispute

Two setbacks affected the government in 1903. One was the final solution of a dispute over the boundary between Canada and Alaska. A commission was set up consisting of three members from the United States, two from Canada, and the British lord chief justice, Lord Alverstone. Although its members were supposed to act impartially, President Theodore Roosevelt's appointees were all passionate supporters of the U.S. claims. Alverstone sided with the Americans. Canada believed that it had been betrayed by England, and Laurier declared that his country must have greater power to deal with such problems independently of Britain.

E

Development of the West

The second setback was the resignation of Laurier's minister of railways over Laurier's decision to build a second transcontinental line to compete with the Canadian Pacific Railway that the Conservatives had built. Even with a large flow of immigrants to the Canadian west, the line was not needed, and it was built at a huge cost to the country's taxpayers. A third transcontinental railway, the Canadian Northern, was built before Laurier left office in 1911.

Despite these problems, the main factor in the election of 1904 was Canada's continued prosperity and expansion. The result was a triumphant success for Laurier. The Liberals carried every province except Prince Edward Island and won the election by a large margin.

The Liberals had a much larger majority than they had had in 1896. At the same time, however, they had become essentially a one-man party. Laurier was indispensable and there seemed no likely successor. The years to follow showed a steady decline in the government's effectiveness and the party's fortunes.

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With the formation of Alberta and Saskatchewan provinces from the Northwest Territories, another Catholic-Protestant dispute over the question of church schools broke out in 1905. Laurier proposed to follow the Ontario system, which supported separate Roman Catholic schools through taxes. That time the Protestants objected. Laurier's minister of the interior, Clifford Sifton, returned from holiday to protest and resigned. A compromise proposal was worked out, although it again cost Laurier the support of Bourassa. Sifton was not invited to rejoin the cabinet, and he, too, became Laurier's enemy.

In 1906 the government was beset by a succession of scandals, and some ministers were forced to resign. Laurier's own integrity was never questioned, but he had a tendency to put problems off. Once forced to act, however, he was usually decisive.

F

Imperial Conferences

The Imperial Conference of 1907, another meeting of British Commonwealth members, was a happier occasion. A Liberal government was in power in Britain, and it agreed with Laurier's view of the empire. In a remark at the conference Laurier summed up this view in the words: “We are all His Majesty's governments.” At the 1911 Imperial Conference, Laurier won British agreement to his proposal that Canada would not be bound by any British treaty without its consent. Two years before, he had established a department of external affairs for Canada.

In spite of constant disputes between extremists, Laurier continued to draw support from a balance of moderate opinion throughout Canada. The election of 1908 was fought mainly on the issue of government corruption, but a vigorous campaign by Laurier carried the country against the Conservatives.

G

Navy Bill

The first challenge after the election came quickly. The British were alarmed by the German arms buildup, and Canada was forced to define its naval policy at a defense conference in 1909. Ontario wanted Canada to contribute to the British navy, but Québec wanted no part of it. As so often before, Laurier sought a compromise, proposing the creation of a Canadian navy to be built and trained in accordance with British naval requirements and placed under British command if Canada chose to enter a war as an ally of Britain. This proposal satisfied no one.

During debate on Laurier's navy bill it became increasingly clear that a curious alliance was forming between the imperialist Conservatives under Robert Borden and the anti-imperialist Nationalists under Bourassa. Bourassa was a power in Québec, with a large following among young French Canadians. Although he had given support to Laurier in 1904, he had continued to build his own party. In July 1910 he made a final break. In November, when a by-election was held to fill open seats in Drummond and Arthabaska, Bourassa ran an obscure Nationalist candidate against the Liberals. The Nationalists won.

H

Trade Issues

It seemed that the Nationalists could capture Québec and that the Conservatives, on completely opposite grounds, could capture the rest of Canada. One last chance to save Laurier came in 1911. The United States was ready to change its views on trade between the two countries. It seemed possible, after years of failure, to agree on a free trade agreement. An agreement was worked out with the administration of President William Howard Taft, its terms being highly favorable to Canada.

However, industrial and railway interests in Canada had come to believe that their success was due to tariffs and their trade with England, rather than with the United States. The initial Canadian approval of free trade turned to anger against it. In Parliament the Conservatives stalled, and Laurier decided to go to the people and campaign on the issue of free trade. The result was catastrophic. The Liberals retained only 88 seats, the number of opposition seats in the previous Parliament.

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