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It was one of the complaints of the reformers that there were in the house of assembly a number of postmasters who voted not according to their own convictions, but according to the orders of Stayner.

As the result of the discussion, it was resolved to present an address to the king, asking that an annual statement of the revenue and expenditure of the department be laid before the legislature; that newspapers should be distributed throughout the province free of postage; that the correspondence of the members of the legislature should pass free during sessions; and finally, that in the event of a surplus being obtained, the postage rates should be reduced, or that the surplus should be devoted to the improvement of the roads.

Stayner, in sending to the postmaster general, copies of the addresses from Upper and Lower Canada, expressed his gratification that the assemblies in both provinces appeared to have dropped the idea of independent provincial establishments, and gave it as his opinion that the legislatures would look for nothing further than such reasonable modifications of existing laws and regulations as the imperial government might determine.

That some changes were necessary Stayner was quite convinced. The postage on newspapers, for instance, could not long remain in its present position, as regards either the amount of the charges or the mode in which the revenue therefrom was disposed of. As for the request of the legislatures that newspapers should be distributed by the post office free of charge, there seemed no sound reason why this should be done. A moderate rate should be fixed, and some arrangement made for the disposal of the revenue from this source. The present plan aroused dissatisfaction, and indeed the amount collected was fast becoming too large to be appropriated in the existing manner.

The postmaster general expressed his satisfaction with Stayner's report, and indeed it appeared at that moment to be of more than usual consequence to him that the colonies should be well affected towards the post office.

It will be remembered that when the Baldwin report reached England in 1821, the postmaster general was sufficiently impressed with the cogency of the argument against the legal standing of the British post office in the colonies, to call for the opinion of the law officers upon it. When the case was prepared by the solicitor for the post office, it was still more impressive, and the postmaster general thought better of his desire to have a definite opinion upon it, as it appeared more than probable that the opinion might be against the post office. He accordingly directed that the papers should be put away, and they lay undisturbed for eleven years.

But the repeated remonstrances of the colonial assemblies, joined to the rising dissatisfaction with the general political conditions in Upper and Lower Canada, made it desirable to remove any real grievances which might be found to exist in the control and management of the postal system.

The first step taken in this direction was to ascertain whether there was any foundation for the contention of the assemblies that the whole system rested on an illegal basis, and that the revenues collected by the post office in the colonies were taken in violation of the fundamental principle governing the relations between the mother country and the colonies.

The case was accordingly submitted to the attorney general and the solicitor general in 1832; and on the 5th of November of that year a decision was given, upholding the colonial contentions on all points.[220]

The questions upon which the opinions of the law officers were required were (first) whether the power to establish posts, and the exclusive right to the conveyance of letters given by the acts of 1711 and 1765, had the force of law in the Canadas, and (second) whether the postage received for the inland conveyance of letters within those provinces ought to be paid into the exchequer and applied as part of the revenue of the United Kingdom, or whether it ought to be devoted to the use of the province in which it is raised.

The law officers gave the case the attention its importance called for.

It appeared, they stated, to involve practical considerations of the highest political importance, bringing directly into question the principle of the declaratory act of 1778, respecting internal taxation of the colonies by the mother country.

Their opinion was that the rates of internal postage could not be considered as within the exception of duties imposed for the regulation of commerce, but that if they could be so considered, they would by the terms of that act be at the disposal of the province, instead of constituting a part of the revenues appropriated for the general purposes of the empire.

It had been contended, as a question of law, that since the act of 1765, by which the colonial rates were finally determined, was in operation at the time of the declaratory act of 1788, it had not been annulled by the latter act, the language of which was, not that rates then existing should be no longer levied, but that after the passing of the act of 1778, no tax or duty should be levied. But the law officers had no great confidence in the argument. In their own words they were of opinion that "it would not be safe to agitate the question as a question of law with the colony, and if it could be so discussed, it would not succeed, and that it could not be enforced."

The opinion of the law officers could not have been unexpected, but it gave the postmaster general much concern. In a note appended to the decision, he accepted the opinion of the law officers as conclusive. The department, he said, was beaten off its first position, and his view was that a plan should be drawn up by which the post office should relinquish to the provinces any surplus revenue after the expenses were paid, and permit an account of the receipts and expenditures to be laid on the tables of the legislatures. While forced to concede this much the postmaster general was convinced that the appointment of the officers of the department should remain with the crown. Otherwise he foresaw the ruin of the colonies, so far as correspondence was concerned; for the postmaster general and legislature of Upper Canada would be at perpetual strife with the postmaster general and legislature of Lower Canada.

However, he concluded that before taking any step in the matter he would consult Goderich, the colonial secretary.

It was not until the following March that the postmaster general saw Goderich respecting the post office. The interview was quite satisfactory. The colonial secretary agreed to the propositions.

Legislation would be necessary, and to that end Stayner was called to London to give his assistance.

At this time the government received assurances from an unexpected source that the plan settled upon would be satisfactory to the Canadian people. William Lyon Mackenzie, and Denis Benjamin Viger, representing as they maintained, the body of the public in the two provinces, visited England for the purpose of laying before the government the grievances of the Canadian people.

On reaching London, Mackenzie and Viger wrote to the secretary of the post office, requesting an interview with the postmaster general. The request was refused on the ground that the postmaster general did not feel authorized to communicate with any person but the colonial secretary on colonial matters. The delegates then addressed themselves to Goderich, who cordially invited them to lay their case before him.

Mackenzie, thus encouraged, prepared a statement, which, though long and detailed, was studiously moderate in tone.[221] On all other points of colonial policy, Mackenzie declared, people would be found to differ, but as regards the post office there was absolute unanimity. There must be a change. Stayner himself admitted that the arrangements were imperfect.

The colonial governments were in favour of separate establishments, but Mackenzie was of Stayner's opinion that such would be impracticable. His own belief was that the only feasible scheme would be to bring all the colonies of British North America under one deputy postmaster general, who should be responsible to the postmaster general of England.

Mackenzie apparently would be quite satisfied to see the office of deputy postmaster general vested in Stayner, whom he described as a persevering, active officer.

The other suggestions of Mackenzie were in line with the more conservative recommendations of the colonial assemblies. On one subject, however, he expressed himself strongly. He said the packet service between the Canadian provinces and the mother country was so indifferent that it went far to convince Canadians that Great Britain desired as little correspondence with Canada as possible.

As an instance of the inferiority of the packet service, Mackenzie told Goderich that he had shortly before received a letter by the Halifax packet, which was sixty-five days on the way, and which cost five shillings and fourpence-halfpenny for postage, and another by way of New York, which was only thirty-four days in coming, and cost only one shilling and fourpence-halfpenny. The announcement of the arrival of the English mail by the Halifax packet was scarcely heeded, whereas no sooner was it known that the Liverpool mail had arrived from New York than the Montreal post office was crowded. Mackenzie's statement on this point was fully confirmed by Stayner on his arrival in London in June.

Stayner, when informed of the opinion of the law officers, was not disposed to acquiesce in it as readily as the postmaster general had done. Colonial lawyers, always more imperial and more conservative than the Eldons and Lyndhursts in London, had assured him that the necessity of imperial control of the colonial post office was the strongest reason for believing that parliament never intended to divest itself of the power by the act of 1778. The conviction of the necessity of imperial control was held by all persons qualified to have an opinion, and, Stayner declared, by the legislatures themselves.

The firm belief of Stayner was that, if the imperial parliament failed to legislate on the present critical situation then they must give up all idea of ever having the question settled. The several colonies could never be brought to concur in their views on this or any other subject.

They knew this, and did not ask to have the matter submitted to their own legislation.

Stayner certainly overstated the reluctance of the legislatures to deal with the question of the provincial post office. But, as his opinion had the support of so ultra a radical as Mackenzie, the postmaster general could not be blamed for accepting, and, as far as possible, acting upon it.

There was, however, a difficulty. Indeed, the way back into right courses seemed beset with difficulties. The postmaster general was quite willing to furnish the legislatures with annual statements of the revenue and expenditure, to leave with the colonies all surplus revenues, and to satisfy all the reasonable desires of the provinces.

But by what steps should he proceed, to legalize the course he proposed?

If the necessary legislation could be enacted by the imperial parliament, all would be well. With a free hand, he would have no trouble in satisfying all the interests concerned. But if the bills had to originate with the provincial legislatures, the postmaster general would despair of bringing the matter to a successful conclusion, as he was convinced that the requisite action on the part of the several provincial legislatures would never be taken. The postmaster general again turned to the law officers. It was essential that they be consulted on the question.

The points on which opinion was desired were two. The first was whether, without any further authority of parliament, the surplus of any postal revenue raised within the colonies under the act of 1765, could be appropriated and applied under the direction of the respective legislatures for the use of the province in which such surplus might arise.

The second was whether it would be competent for the British parliament to fix a new set of rates for the colonies, or whether the acts of 1778 and 1791 made it necessary that the authority for such rates should proceed from the respective colonial legislatures.

Both of these questions were answered adversely to the hopes of the postmaster general.[222] The law officers had no doubt that the act of 1778 was applicable to the Canadas, and that, if objections were raised in the provinces to the payment of postages fixed by the British parliament, whether by the act of 1765 or by an act to be thereafter passed, the legality of the charges could not be maintained, nor could payment of them be enforced in the absence of authority from the legislature of the province concerned.

The proper procedure to be followed, in the opinion of the law officers, was for the British parliament to repeal the act of 1765, and leave it to the provinces to establish a new set of rates. The law officers were aware of the difficulties which would arise, if after the act of 1765 had been repealed, the colonial legislatures failed to agree on a scheme of rates or on the necessary arrangements for a uniform postal system throughout the provinces. In such a case, there would be a period in which there would be not even the semblance of legal authority for the postal service within the colonies.

After a further interchange of correspondence between the postmaster general and the law officers, it was decided to introduce into the imperial parliament a bill repealing the act of 1765, but making the operation of the bill contingent upon suitable legislation being adopted by the legislatures of the several provinces. In order to facilitate the passage of identical legislation by each of the legislatures, a draft act was prepared by the solicitor of the general post office, and a copy was sent to the lieutenant governor in each of the provinces for submission to his legislature.

The act of the imperial parliament was passed and received the king's assent on the 26th of March, 1834.[223] It contained but two clauses.

The first provided for the repeal of the imperial act of 1765, so far as that act authorized the collection of postage in the colonies, but stipulated that it should not become operative until acceptable legislation had been adopted in the several provinces, authorizing the collection of postage and making suitable arrangements for a postal service throughout the provinces.

The second clause stipulated that, in the event of the revenues from the colonial post offices exceeding the expenditures, the surplus should no longer be sent to London to form part of the revenues of the United Kingdom, but should be divided among the several colonies in the proportion of their gross revenues.

The draft bill, prepared by the solicitor of the general post office, provided for a complete postal system in each of the provinces.[224]

Under this bill, the postmaster general at St. Martin's-le-Grand was to be the head of each provincial system, and the appointment of a deputy postmaster general in each province, who should reside in the province and manage the system therein, was to be in his hands.

The postage rates were to be the same in the several provinces; and in the case of correspondence between the provinces, the charge for postage was to be fixed in accordance with the entire distance the articles were carried, without regard to provincial boundary lines.

It will be seen that if the provincial legislatures adopted the bills framed in London for them, there would be no change whatever in the practical working of the colonial system. The postmaster general in London would, as theretofore, control the arrangements, and the charges were fixed, regardless of provincial boundaries. As the imperial act stipulated that any surplus which should arise from the system should be distributed among the colonies, so the proposed provincial bills provided for the contingency of a deficit in its operations.

Each provincial bill empowered the postmaster general to demand from the legislature the amount, which it was agreed that the province should be held responsible for, to make up the deficit. Upper and Lower Canada were to bind themselves to pay in such a case up to 2000 from each province. Nova Scotia was to pay up to 1200; New Brunswick up to 600; and Prince Edward Island up to 200.

In anticipation of the adoption of the bills by the several legislatures, the postmaster general appointed an accountant, who should have general charge of the financial transactions of all the colonies.

He was to be established at Quebec. His position in relation to the deputy postmaster general of Lower Canada was somewhat peculiar. While, in general, he was subordinate to the deputy postmaster general, in all matters touching the accounts, he was independent of the deputy, and responsible only to the postmaster general in London.

There were also appointed two travelling surveyors or inspectors in the Canadas, one of whom was stationed at Quebec, and the other at Toronto.

Nothing could have been more necessary for the proper administration of the service, and for the expansion of the system to meet the requirements of the new settlements. It was impossible for Stayner to give personal attention to the duty of supervising postmasters, or to inquiries into the merits of the numerous applications from all parts of the country for new post offices.

The necessity for assistance in this direction was impressed on Stayner by a number of robberies which took place on the grand route between Montreal and Toronto--episodes in post office economy which he was helpless to investigate.

Two of these robberies have incidents connected with them, which are deserving of mention. In February 1835, on a stormy night, the mail bag dropped off the courier's sleigh somewhere in the neighbourhood of Prescott, and it could not be found. As the contents of the bag included banknotes to the value of from 10,000 to 12,000, a reward of 200 was offered for the conviction of the thief and the recovery of the money.

Within half an hour after the placard was on view in Prescott, a man who heard it read, exclaimed excitedly: "I know all about it, I have the bag at home." It turned out that this man had found the bag, rifled it, and used part of the money, and, carried away with the prospect of the large reward, had actually informed on himself.

The other case is noteworthy on account of the energy displayed by the loser of a valuable letter, in pursuing and securing the conviction of the thief. The letter, which contained 200, was posted in Toronto, and addressed to a gentleman living near L'Original. As the department, owing to the lack of effective aid, was limited in its efforts to advertising the loss in the newspapers and by placards, the loser of the letter took the inquiries into his own hands.

He spent nearly a year in his investigations, travelling up and down the country between Montreal and Toronto, and in the state of New York, covering a distance of upwards of two thousand one hundred miles. It is satisfactory to be able to say that he managed to locate and secure the arrest and conviction of the thief. So well had he done his work, that the deputy postmaster general adjudged him to be entitled to the 50 reward offered by the department.

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