States and Canada. During the Civil War between the North and South the English authorities had carelessly allowed some vessels, fitted out in British ports, to escape to sea, where they were used by the South to attack and plunder the merchant vessels of the North. The most notorious of these vessels was the “Alabama,” which did a great deal of harm to the shipping of the North. After the war was over, the United States claimed damages for injuries caused by this vessel, and the matter was left for peaceable settlement to a “Joint High Commission” of which Sir John A. Macdonald was a member. Canada was greatly interested in this Commission, for she had claims against the United States for injuries inflicted by the Fenians. Besides, the ownership of San Juan, an island on the Pacific coast, and the boundary line between Canada and Alaska were in dispute. The Americans, too, were anxious, now that the Reciprocity Treaty was no longer in force, to get fishing privileges in Canadian waters. The Commission met, in 1871, at Washington, and agreed to submit the Alabama Claims to arbitration, the result being that the United States received $15,500,000 for the supposed injuries inflicted by the Alabama on her commerce. The claims of Canada for damages on account of the Fenian raids were not even considered; but England, as a slight compensation, agreed to guarantee for Canada, a loan of £2,500,000.
The dispute about the island of San Juan was left to the Emperor of Germany for his decision, which was given the next year in favor of the United States. The Treaty also gave the United States the use of Canadian fisheries for twelve years, in return for the use of their fisheries, and the right to sell fish and fish-oil in United States markets. As this was not considered enough for the use of the valuable Canadian fisheries, a commission was to meet at Halifax later on and decide what sum of money should be paid the Dominion by the United States as an equivalent. This Halifax Commission met in 1878, during the Mackenzie Administration, and awarded $5,500,000 to Canada; the success of this negotiation being due largely to the fact that it was conducted on behalf of Canada by Canadians; Sir Alexander Galt being the principal Canadian representative.
The other cause of political feeling, the building of the Pacific Railway, arose out of the agreement with British Columbia, when that province entered Confederation, that an all-rail route should
