Both Canadian and foreign groups of businessmen whole-heartedly invested in the railways which they believed would profit themselves and Canada. Charters for railways were issued to groups throughout Upper Canada. The initial capital usually came from the sale of stocks, such as this one for the Great Western Railway, but, frequently, the amount raised proved insufficient. Promoters like Sir Allan MacNab were very often prominent politicians as well. Such men convinced the government to provide monetary aid and land grants for the new railways. For instance, the Guarantee Act of 1849 provided for a guaranteed payment of interest on any bonds issued by railways which were projected to be at least seventy-five miles long should they fold. Millions of acres of land were granted to promoters regardless of their resource potential. Moreover, huge sums of money were loaned outright, with little hope of return. By 1858, the Canadian government had a standing debt of nearly $54 million. Loans to railways formed a large part of this debt.
