arrange
satisfactory terms, has steadily held aloof, and so has proved the only
obstacle to the complete political unification of British North America.

[Illustration: CANADA]

Difficulties with the United States.

A signal proof was soon furnished of the new standing in the empire
which federation had given to the Canadian provinces. A heritage of
differences and difficulties had been left to be settled between
England, Canada and the American Union as the result of the Civil War.
In retaliation for the supposed sympathy of Canadians with the South in
this struggle the victorious North took steps to abrogate in 1866 the
reciprocity treaty of 1854, which had conferred such great advantages on
both countries. It followed that the citizens of the United States lost
the right which they had received under the treaty to share in the
fisheries of Canada. American fishermen, however, showed so little
inclination to give up what they had enjoyed so long, that it was found
necessary to take vigorous steps to protect Canadian fishing rights, and
frequent causes of friction consequently arose. During the progress of
the Civil War American feeling had been greatly exasperated by the
losses inflicted on commerce by the cruiser "Alabama," which, it was
claimed, was allowed to leave a British port in, violation of
international law. On the other hand, Canadian feeling had been equally
exasperated by the Fenian raids, organized on American soil, which had
cost Canada much expenditure of money and some loss of life. In,
addition to these causes of difference there was an unsettled boundary
dispute in British Columbia, and questions about the navigation of
rivers common to the United States and Canada. In 1869 the government of
Canada sent a deputation to England to press upon the imperial
government the necessity of asserting Canada's position in regard to the
fisheries, and the desirability of settling other questions in dispute
with the republic. The outcome of this application was the appointment
of a commission to consider and if possible settle outstanding
differences between the three countries. The prime minister of the
Dominion, Sir John Macdonald, was asked to act as one of the imperial
commissioners in carrying on these negotiations. This was the first time
that a colonist had been called upon to assist in the settlement of
international disputes. The commission assembled at the American capital
in February 1871, and