he Board of Trade when a communication from Lord
Egremont, the "Southern" secretary of state, directed his particular
attention to this subject.

The North American colonies--or, as they were commonly called,
plantations--labored in those days, in their relation with the
home-country, under the inconveniences of a system of dual government.
The Board of Trade was the working colonial office, framed instructions
to the governors, gave information and advice, and carried on the
every-day colonial business generally; but the secretary of state for
the southern department, whose sphere of supervision embraced all the
colonies wherever situate, had always a permanent right to interfere in
and control the conduct of colonial affairs. It was in virtue of this
right that in May, 1763, Secretary Lord Egremont took the initiative in
setting the Board of Trade to work to solve the problem of how best to
arrange for the administration of the wide area of North American
territory that the peace had transferred from French to British rule.
His instructions were short and pointed. "The questions (he wrote) which
relate to North America in general are--1st, What new governments should
be established there? what form should be adopted for such a government?
and where the capital or residence of each governor should be fixed?
2dly, What military establishment will be sufficient? what new forts
should be erected? and which, if any, may it be expedient to demolish?
3dly, In what way, least burdensome and most palatable to the colonies,
can they contribute toward the support of the additional expense which
must attend their civil and military establishments upon the arrangement
which your lordships shall propose?" Mark the "3dly." It is interesting,
as illustrating the ideas and circumstances which led to the famous
Stamp Act, to see how completely Lord Egremont's question assumes not
only the right of the mother-country to tax her colonies, but the
probable expediency of her actually exercising that right. In his reply,
Shelburne, while admitting the revenue question to be a "point of the
highest importance," practically evaded it on the plea of the inability
of the board to form a satisfactory opinion without further materials.
With regard to the new territory, his advice, which was followed, was,
in effect, not to attempt to annex the whole of the north-western
acquisitions, but to form a new colony of Canada, limited by definite
geograp