f the truly
loyal inhabitants of the province. Addresses came to the
governor-general from all parts to show him that the riots were
largely due to local causes, "especially to commercial distress acting
on religious bigotry and national hatred." He had also the
gratification of learning that his constitutional action was fully
justified by the imperial government, as well as supported in
parliament where it was fully discussed. When he offered to resign his
office, he was assured by Lord Grey that "his relinquishment of that
office, which, under any circumstances, would be a most serious blow
to Her Majesty's service and to the province, could not fail, in the
present state of affairs, to be most injurious to the public welfare,
from the encouragement which it would give to those who have been
concerned in the violent and illegal opposition which has been offered
to your government." In parliament, Mr. Gladstone, who seems never to
have been well-informed on the subject, went so far as to characterize
the Rebellion Losses Bill as a measure for rewarding rebels, but both
Lord John Russell, then leader of the government, and his great
opponent, Sir Robert Peel, gave their unqualified support to the
measure. The result was that an amendment proposed by Mr. Herries in
favour of the disallowance of the act was defeated by a majority of
141.

This action of the imperial authorities had the effect of
strengthening the public sentiment in Canada in support of Lord Elgin
and his advisers. The government set to work vigorously to carry out
the provisions of the law, appointing the same commissioners as had
acted under the previous ministry, and was able in a very short time
to settle definitely this very disturbing question. It was deemed
inexpedient, however, to keep the seat of government at Montreal.
After a very full and anxious consideration of the question, it was
decided to act on the recommendation of the legislature that it should
thereafter meet alternately at Toronto and Quebec, and that the next
session should be held at Toronto in accordance with this arrangement
This "perambulating system" was tried for several years, but it proved
so inconvenient and expensive that the legislature in 1858 passed an
address to Her Majesty praying her to choose a permanent capital. The
place selected was the city of Ottawa, on account of its situation on
the frontier of the two provinces, the almost equal division of its
populatio