Canada was affected detrimentally by losing for a time the prestige consequent on being backed up by British ironclads and regiments, every available soldier and every vessel of war being required for the protection of British interests nearer home.
The harvest again in 1886 was below the average. Trade and finance had not recovered from the shock of the previous year. The outlook was certainly gloomy.
A Conservative government was in power at Ottawa. The Premier and his government were, however, in great straits, owing to the prevailing depression throughout the Dominion, for the hard times were seized upon by the opponents of the government as a means whereby to thwart and distract the ministers, and stir up discontent among the people. The States were pointed to by the Reformers as the only country in the world where security and prosperity co-existed. British connection was held up to scorn as a tie whose supposed advantages had proved worthless. A less able or a less determined ministry would have collapsed under the strain. The winter of 1886-7 was very severe, and discontent began to be noisy and aggressive. To make matters worse, a @Fenian organization was going on in the States with the avowed object of invading Canada in the coming spring. The heads of the movement were well-known politicians of a low order, having considerable funds at their command, and much influence in certain quarters. Their emissaries were known to be working all over Canada, freely distributing American gold and holding secret meetings. The position of affairs was one of increasing gravity owing to the connivance of the American authorities and the powerlessness of the Home Government. So matters progressed until the spring of 1887, when the situation became one of extreme tension. The Conservatives were taunted with having ruined the country financially and with pursuing a "Jingo" policy certain to end in bloodshed. Reformers "stumped" the country, calling on their excited audiences to march to Ottawa and compel the Premier and his infatuated followers to resign. Annexation was openly advocated as the only sensible way to be relieved from the overwhelming surrounding difficulties.
A ray of hope to buoy up the sorely tried loyalists appeared, when Canadians who had been domiciled in all parts of the States returned to defend their native land on hearing of the great danger she was undoubtedly in. Having lived many years under the shadow of the Stars and Stripes, they knew well enough all that it amounted to; the glamour of accumulated successes had not turned their heads for they had had opportunities of observing the sinister influences at work in American affairs, beneath the attractive exterior. @Quebec rallied to a man, and the latent military strength of the province was developed under efficient leaders to a formidable degree. Invaders would have met with a warm reception in this quarter. @Manitoba and the whole Northwest were up and ready, prepared to fight, more to preserve their own independence, however, than the integrity of the Dominion, as there was then considerable difference in sentiment between the Northwest and the Eastern Provinces. The @Manitobans, too, though the @Irish element had become very strong, did not intend to succumb to Fenian raiders, however well organized and backed up. The weakest points were the @Maritime Provinces, Ontario, and British @Columbia; not that the feeling in British Columbia was not loyal to the Dominion, but that some 30,000 rowdies who had assembled and organized in San @Francisco were preparing for a descent upon her poorly fortified ports. Now was the turning point in the destinies of the country. If the ministers at Ottawa had not stood firmly to their guns, all our subsequent career, instead of being the golden century of magnificent progress and peace that it has been, would have been linked with all the turbulence and the alternate advance and retrogression of the States.
A general election for the Dominion had been timed to take place in the beginning of June, and the day was looked forward to by all the noisy demagogues of Ontario as the day when the bloodthirsty @Tories were to be hurled from power by the people in righteous wrath, and the country saved from the horrors of war.