l secretary, whom he had chosen before his death as
his biographer, admits that even a large body of his faithful supporters
"were impelled to the conclusion that a government which had benefited
politically by large sums of money contributed by a person with whom it
was negotiating on the part of the Dominion, could no longer command
their confidence or support, and that for them the time had come to
choose between their conscience and their party."

The immediate consequence of this very unfortunate transaction was the
formation of a Liberal government by Mr. Alexander Mackenzie, the leader
of the opposition, who had entered the old parliament of Canada in 1861,
and had been treasurer in the Ontario ministry led by Mr. Blake until
1872. He was Scotch by birth, and a stonemason by trade. He came to
Canada in early manhood, and succeeded in raising himself above his
originally humble position to the highest in the land. His great
decision of character, his clear, logical intellect, his lucid, incisive
style of speaking, his great fidelity to principle, his inflexible
honesty of purpose, made him a force in the Liberal party, who gladly
welcomed him as the leader of a government. When he appealed to the
country in 1874, he was supported by a very large majority of the
representatives of the people. His administration remained in office
until the autumn of 1878, and passed many measures of great usefulness
to the Dominion. The North-west territories were separated from the
government of Manitoba, and first organised under a lieutenant-governor
and council, appointed by the governor-general of Canada. In 1875,
pending the settlement of the western boundary of Ontario, it was
necessary to create a separate territory out of the eastern part of the
North-west, known as the district of Keewatin, which was placed under
the jurisdiction of the lieutenant-governor of Manitoba. This boundary
dispute was not settled until 1884, when the judicial committee of the
privy council, to whose decision the question had been referred,
materially altered the limits of Keewatin and extended the western
boundaries of Ontario. In 1878, in response to an address of the
Canadian parliament, an imperial order in council was passed to annex to
the Dominion all British possessions in North America not then included
within the confederation--an order intended to place beyond question the
right of Canada to all British North America except Newfoundland