1 Sir John A. Macdonald: Nation-Building and Tensions with the United States

The relationship between Canada and the United States dates back to the nineteenth century. Even before Confederation in 1867, Canada’s political leaders found themselves negotiating with, adapting to, and responding to issues and challenges arising from the United States. The relationship was defined by a mixture of cooperation, rivalry, and cautious diplomacy. Sir John A. Macdonald, served as Canada’s first prime minister from 1867 to 1873 and again from 1878 until his death in 1891. Throughout the years, he managed numerous conflicts and concerns coming from the United States that tested Canada’s independence and national identity. Macdonald navigated a range of challenges that played an intricate role in shaping the development of the nation, lying as it does, next to a powerful and emerging behemoth. Among those challenges was growing a national economy, promoting democracy and a sense of national identity, securing the country’s sovereignty, and indeed, establishing a working and essential relationship with the United States. How did Macdonald respond to these issues from a political, economic, national, and even personal standpoint? How did he manage to lead under the pressure of American expansionism and trade concerns? And how did his tenure as prime minister influence the evolving relationship between Canada and the United States? Such questions are fundamental to understanding not only the birth of Canada but also the country’s early years as a new nation.

Before getting into the specific challenges that Macdonald faced with the United States, it is important to understand and consider his ideas, views, and beliefs. Macdonald’s interest in politics developed in the early 1840s after he had established a name for himself in law and business.^[1] He maintained an ambitious and enterprising mindset while seeking opportunities wherever he could. Macdonald was born in Scotland and immigrated to Upper Canada in hopes of pursuing his love and passion for politics while nurturing his new homeland’s British connection. His political views were influenced by his legal mentor, George Mackenzie, advocating for moderate conservatism, commercial expansion, and adherence to such traditional Tory notions as state support for religious institutions and leadership.^[2] Macdonald proved to be a genuine conservative, opposing responsible government, the secularization of the clergy reserves, the abolition of primogeniture, and extensions to the franchise. Such measures were considered un-British and could weaken the British connection or the authority of the government and also the necessary propertied element within government and society.^[3] Throughout his early career, Macdonald also understood the need to be a champion of the people, and he took measures in the Legislative Assembly to promote the interests of his constituency. He regularly presented petitions and introduced legislation dealing with such matters as Upper Canada’s educational and religious bodies.^[4] From the beginning, his approach to politics was primarily pragmatic, and circumstances were making it impossible for him, or any other conservative politician, to cling to political positions that were quickly becoming outmoded.^[5] As a strong believer in the British connection, Macdonald was determined that Canada and the other British colonies in North America had to remain British and prevent American expansion into the northern half of the continent. He strongly advocated for the independence and security of British North America and for preserving the ties with Great Britain that would both strengthen and unite British North America against any possible ultimatum that would affect their sovereignty. Such a feeling became critical for Macdonald in the decades leading up to Confederation.

The pre-Confederation era tested Macdonald’s leadership and governance. Creating a nation separate from Britain (even if it remained part of the British Empire) was inspired in part by fears that British North America would be dominated and even annexed by the United States following the American Civil War, which ended in 1865. Such concerns inspired Macdonald’s belief in the need for a strong central government and an increase in the connection with Britain to protect Canada from American aggression.^[6] The idea for confederation was also influenced by the notion of American Manifest Destiny, the idea that it was  the United States’ right and destiny to expand across all of North America, including to Rupert’s Land, which was the vast territory to the west and north of  the Province of Canada.^[7] American aspirations for expansion only made Canadians’ fears and tensions grow stronger as Americans wanted to expand their country and strengthen their military. This then led to the purchase of Alaska by the United States from Russia in 1867. A further step in the expansion of American territory which many Canadians feared would be to take the Northwest.^[8] Macdonald’s goal during this time was to protect Canada’s autonomy without provoking any conflict with the United States. One response by the British colonies was to unite, creating Canada as a country under the British flag and hopefully reducing the fear of annexation by the United States. As the American purchase of Alaska was being completed, the British North American colonies were in negotiations towards creating Confederation, which came in force on 1 July 1867. Four years later, in 1871, Macdonald extended Canada to the Pacific Ocean, when British Columbia joined Confederation, thereby thwarting any American aspirations for full control of the Pacific coast.^[9] However, Fear of American expansion did not end with the end of the Civil War, however, nor the purchase of Alaska, nor with the admission of British Columbia into Confederation.

Even before 1867, the rise of the Fenian Republican Brotherhood throughout America and fears of Fenian Raids into Canada had helped push the British North American colonies into Confederation. ^[10] The Fenians are one of the points where Irish, American, and Canadian history meet.^[11] The Fenian raids were a test of stamina, for both the Canadian militia and the Fenians.^[12] The Fenians were a part of an Irish Republican Brotherhood which expanded its political movement across America and impacted Canada as they believed they could capture Canada and exchange it with Britain for Irish independence.^[13] Between the years of 1866 and 1871, the Fenians launched numerous attacks on Canada and had a presence in other British overseas colonies.^[14] Canada took the threat posed by the Fenians very seriously and used spies across the country to gather information and to protect itself.^[15] Thousands of Canadian volunteers were called up for duty to act against any potential raids. It was clear that the Fenians had planned attempts to attack Canada. They had captured the undefended town of Fort Erie, Canada West, along with its railway, forcing Canadians to provide them with food and supplies.^[16] The attacks had advanced into the Quebec region and lasted nearly five years until the Canadian militia pushed back, defending the nation and bringing greater security along the border. These attacks were early tests of Canada’s ability to defend itself. In response, Macdonald strengthened Canada’s military forces and created the North-West Mounted Police in coordination with Britain to protect the autonomy of Canada and promote its national identity.^[17] Coping with Fenian Raids was, in many ways, an attempt to justify Confederation and then strengthen Canada’s government and military.^[18] When the attacks ended in 1871, both the United States and Canada attempted to resume previous negotiations to deal with outstanding issues that went back to the Civil War.

The Treaty of Washington, negotiated in 1871 and put into effect in 1873, was an agreement between the United States and Britain that gave the United States access to the inshore fisheries across Canada’s Maritime Provinces and Newfoundland.^[19] Macdonald, being one of the commissioners to represent British interests and representing Canada’s autonomy – despite being prime minister of the country – held little power during the deliberations; however, the treaty had profound implications for Canada.^[20] It resolved several longstanding disputes stemming from the American Civil War, especially the lingering tensions from the Alabama claims, where British-built ships had caused considerable damage to Union vessels.^[21] The treaty also addressed Canadian–American border issues, fishing rights, and territorial disputes, with Canada playing a key role in negotiations despite not being a fully independent nation at the time.^[22] For years, American and Canadian fishermen had clashed over access to Atlantic fisheries, especially in Newfoundland. The treaty granted US fishermen access to Canadian waters in exchange for compensation to Canada. The agreement was significant because it demonstrated Canada’s growing role in diplomatic negotiations, even though its foreign policy still largely rested with the British government. The treaty nonetheless highlighted the economic interdependence between Canada and the United States.^[23] Prime Minister Macdonald’s participation in the negotiations reflected Canada’s desire for greater control over its foreign relations and its emerging identity distinct from that of Great Britain.^[24]

One issue with the United States that Macdonald had to deal with, before Confederation, was the Reciprocity Treaty. In 1854, a free trade agreement had been negotiated between the United States and the British North American colonies. Moving towards fishing rights in later years following this treaty was one factor that contributed to future trade relations between Canada and the United States. In the years prior to the signing of the Treaty of Washington in 1873, the Reciprocity Treaty provided a period of economic growth and political realignment in Canada.^[25] Signed on 5 June 1854, and lasting until 1866, this treaty was aimed at reducing trade barriers, fostering closer economic ties, and easing tensions between the British North American colonies and the United States.^[26] The treaty allowed for the free exchange of natural resources, such as timber, fish, coal, and agricultural products, without the imposition of tariffs, while also addressing issues such as fisheries rights – leading into the Treaty of Washington in 1873.^[27] The Reciprocity Treaty sparked a period of unprecedented economic expansion for the Canadian colonies; it also had profound political implications, fueling discussions that would eventually lead to Confederation in 1867.^[28] The treaty helped stabilize the Canadian economy at a time when it was still heavily reliant on British markets, providing a much-needed boost to colonial industries that had been struggling in the wake of Britain’s shift towards free trade.^[29] The Reciprocity Treaty eventually came to end in 1866 when the United States turned towards more protectionist policies and did not renew it. This raised a challenge for Canada regarding the continuation of free trade or raising tariffs.^[30] The loss of US markets and the economic shock of the treaty’s cancellation prompted the need for a more unified and self-sufficient economic and political structure within British North America.^[31] Macdonald began to advocate for the unification of the British colonies into a single political entity.^[32] The logic of Confederation was, in part, an economic one: by joining together, the colonies could create a larger, more integrated domestic market, reducing reliance on external markets such as the United States.^[33] The idea of closer economic ties between the two countries remained a recurring theme in Canadian politics.^[34] Strong debate over free trade with the United States would resurface periodically throughout later Canadian history.

In 1878, Macdonald introduced his National Policy in the House of Commons, a landmark event that would shape Canadian economic and political history for decades.^[35] The National Policy was a comprehensive plan aimed at fostering domestic economic growth and strengthening Canada’s sovereignty.^[36] It called for the introduction of protective tariffs to shield Canadian manufacturers from foreign, particularly US competition, from 1878 onward and that would last until the Second World War when parts of it were eliminated or reduced by Prime Minister William Lyon Mackenzie King.^[37] The election of the Macdonald government in 1878 led to the implementation of the National Policy in the 1879 budget, which imposed widespread increases to import tariffs.^[38] Macdonald’s vision was not simply economic, it was also political. He saw the development of Canadian industry as essential to the nation’s future stability, believing that a robust industrial base would strengthen national unity by tying the provinces more closely together through mutual economic interests.^[39] Canada faced competition from the United States, and the National Policy represented a strategic response to these pressures, seeking to build an independent economic foundation for Canada and diminish Canada’s reliance on US trade.^[40] Macdonald’s National Policy also encouraged western expansion in Rupert’s Land, acquired by Canada in 1869, and promoted immigration for the development of agriculture and the settlement of territories that could otherwise be vulnerable.^[41] Cautiously fearful of American annexation of these lands, the National Policy protected Canada’s manufacturers from possible threats posed by the United States. Macdonald then stated, “I say that such a policy will retain in Canada thousands of our fellow countrymen now obliged to expatriate themselves in search of the employment denied them at home, will restore prosperity to our struggling industries, now so sadly depressed, will prevent Canada from being made a sacrifice market, will encourage and develop an active interprovincial trade, and moving in the direction of a reciprocity of tariffs with our neighbors.”^[42]

Macdonald believed that the National Policy’s proposed tariffs would improve Canada’s economy, which had been in recession, as well as discourage emigration to the United States, and promote trade between the east and the west.^[43] He hoped that the settlement of the prairies would help transform Canada into a transcontinental nation, while the tariff system would create the framework for the country’s economic independence from the United States.^[44] Increased funds from tariffs contributed to plans for a national railway. The construction of the Canadian Pacific Railway (CPR), a cornerstone of Macdonald’s National Policy, became a symbol of Canadian unity and ambition, allowing for the economic development of the west and securing Canadian sovereignty over its vast territories.^[45]

It was hoped that the railway connecting eastern and western Canada would encourage settlement in the prairies, facilitate trade, and assert Canadian sovereignty over the western territories, thereby reducing the likelihood of American annexation attempts.^[46] In the years that followed, tensions and fear of American annexation continued, nevertheless. The CPR, by connecting eastern Canada to British Columbia, both established unity within the country and allowed for the continuation of Macdonald’s National Policy and trade to expand westward. The National Policy, first introduced in 1879, was an economic strategy designed to unify the country economically and politically through protective tariffs imposed to protect Canadian industries from competition with the United States, and building a transcontinental railway that would facilitate the settlement of the west.^[47] This was, in Macdonald’s view, the key to establishing Canada as a self-sustaining and prosperous nation independent of US economic influence.^[48] Despite the railway’s completion, by the late 1880s, the flow of immigrants to western Canada had slowed dramatically. Many early settlers who had claimed land in the prairies found the harsh climate and the lack of infrastructure overwhelming, limiting access to markets which made farming difficult, and many of them began to move to the United States, where better conditions and more accessible markets awaited.^[49] Additionally, the high tariffs imposed between the two nations made Canadian grain less competitive in US markets. As a result, many farmers were unable to make a sustainable living, leading to dissatisfaction and calls to open up north to south trade routes to allow for easier access to US markets.^[50] The excitement and optimism that had accompanied the construction of CPR quickly gave way to disappointment as the economic realities set in. The anticipated prosperity failed to materialize, and many early settlers packed up and left for the United States.^[51] Macdonald’s perseverance in expanding the country westward and in reducing Americanism throughout Canada continued to be influential factors that would shape the future of the nation and the country’s national identity – next to its powerful southern neighbor.^[52]

Macdonald played an essential role with pre-Confederation Canada as well as in the years that followed. The post–American Civil War era inspired ideas for the necessity of a strong central Canadian government while maintaining a strong connection to Great Britain.^[53] Macdonald’s goal during this time was to protect Canada’s autonomy without provoking any further disputes with the United States. In the pre-Confederation era, Macdonald was a key figure in Canadian politics. His passion for shielding Canada from possible threats and retaining a close relationship with Britain were fundamental.^[54] His participation in the negotiation of treaties signed between Britain and the United States were major successes. As prime minister, Macdonald implemented numerous strategic, political, and economic policy ideals that both reinforced Canada’s identity and independence as well as its cooperation with Britain. How John A. Macdonald navigated challenges, adapted to changes within the country, and negotiated with the United States are extremely important to understanding the future of the nation. Nevertheless, despite his successes revolving around these specific issues, it was not always so simple. There were also limitations and certain consequences that were dealt with in a strategic and political manner.

With the fear of American expansion and annexation of Canada growing throughout the country, Macdonald had to make decisions that implicated the future development of the nation and as oftentimes happens, came with additional challenges and consequences in some instances. First, in order to protect Canadian territory from American expansionism and other foreign threats, it was critical that Macdonald maintained Canada’s relationship with Great Britain. This relationship both protected Canada and provided a sense of security to the nation, although the drive towards creating a nation independent from Britain became extremely important in future years.^[55] As the majority of negotiations between the United States and Canada were made by Britain, this would overall challenge Canada as an independent nation attempting to make decisions without its large collaborating partner. Although Britain was always cautious in negotiations and prominent in protecting its small Dominion, in many instances, tensions between Canadians and the government began to rise. Macdonald, as the leader of Canada, had to mediate disputes between Canadians regarding various issues and offer a counterargument that would allow Canada to remain somewhat independent. Specifically, Macdonald’s National Policy raised a number of problems even as it encouraged economic growth, settlement, and discouraged American expansionism, as it also impacted many Canadians and the economy that in later years would begin to struggle.^[56] Canada and the United States first emerged as strong competitors and remained so for many years before numerous negotiations were made to establish some sort of working relationship. As Macdonald’s government was the first to test the waters of the new country, it is important to note the limitations these challenges inflicted on the nation and the plausible outcomes that would emerge for Canada in later years.

Throughout the history of Canada, political leaders have been required to negotiate, adapt to, and challenge issues arising from the United States. Macdonald faced numerous difficulties that tested the country’s independence and national identity. As Canada’s first prime minister, he navigated a range of hardships. Challenging political views, growing an economy, promoting democracy and nationalism, protecting the newly birthed nation from arising threats, securing the country’s sovereignty, and attempting to establish a complex but essential relationship with the United States were foremost among the major factors contributing to Canada’s earliest challenges. Some of these emerged during Macdonald’s time in office. Further concerns in relation to American annexation of Canada involved the Irish Fenians who led an armed attack on both the United States and eventually Canada, as they sought Irish independence from Great Britain.^[57] Macdonald’s government formed a militia to counteract these raids, thereby protecting Canada’s autonomy. Macdonald introduced the construction of the Canadian Pacific Railway with the goals of facilitating trade and asserting Canadian sovereignty over its western territories.^[58] Numerous treaties were signed between Canada and the United States with regard to fishing rights, trade, and ultimately towards Canada’s independence from Britain. The era of the Reciprocity Treaty was a critical period of economic growth and political realignment in Canada. It not only sparked a period of unprecedented economic expansion for the Canadian colonies, but it also had profound political implications, fueling discussions that would eventually lead to Confederation in 1867.^[59] The Treaty of Washington in which Macdonald held little power in negotiations as a commissioner of Britain affirmed Canada’s national identity and made it an important factor moving forward with further negotiations between Canada and the United States.^[60] Macdonald’s National Policy was a landmark event that shaped Canadian economic and political history for decades.  It called for the introduction of protective tariffs to shield Canadian manufacturers from foreign, particularly American competitors.^[61] How Macdonald responded to disputes with the United States is fundamental to understanding the relationship between the two countries in the decades that followed.

The relationship between Canada and the United States dates back to the nineteenth century revolving around particular disputes and negotiations made between the two nations. Sir John A. Macdonald, Canada’s first prime minister, faced numerous conflicts that tested the country’s independence and national identity. As Canada’s leader, he navigated a range of hardships that played an intricate role in shaping the nation’s development as a growing, independent country next to its powerful southern neighbor. Macdonald served as Canada’s first Prime Minister from 1867 to 1873 and again from 1878 until his death in 1891.^[62] During his time in office, Sir John A. Macdonald challenged political views, and grew Canada’s economy, promoting democracy and nationalism, and ultimately protecting the nation from arising threats. He was committed to securing the country’s sovereignty and establishing a national identity for the new country. Macdonald was passionately determined and committed to creating a self-reliant Canada with its own national identity, all the while propelling the ambitious task of building the nation free from the expansionist and numerous other threats posed by the United States of America.

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–– Waite, P.B. 2006. “Treaty of Washington.” Treaty of Washington | The Canadian Encyclopedia