Curiously enough, it was Mr. Lowe who was most successful in winning popularity for the Ministry during the recess. The police found in him a zealous defender. The working-classes heard with pleased surprise a rumour to the effect that he had drafted a Bill conceding the demand of Trade Unionists for a reform of the Labour Laws. His manner of receiving deputations had suddenly become bland and suave. When, for example, the representatives of the Licensed Victuallers went to complain to him of the Licensing Laws, he was so sympathetic that the leader of the deputation sent a graphic account of the interview to the Press. He explained how he and his colleagues had waited on the new Home Secretary in fear and trembling, but how delighted they were to find that “the great scholar and debater cheered the meeting with many sunny glimpses of his own Anti-puritanic nature.”
Still, in spite of Mr. Bright and Mr. Lowe, the Liberal cause was waning among the electors. Every day Mr. Chamberlain was driving deeper and deeper into the heart of the Liberal Party the wedge of Dissenting dissension, that ultimately split its electoral organisation in twain. On the whole, the bye-elections favoured the Conservatives. But Mr. Henry James, the new Attorney-General, carried Taunton, and Captain Hayter, owing to an imprudent letter which Mr. Disraeli wrote in support of the Tory candidate, was successful at Bath.[62]
A Colonial scandal and a Colonial war also attracted much attention during the recess, and though the scandal did not affect the Ministry, the war somewhat chilled the sympathies of many of their strongest supporters.
The story of the scandal was as follows:--The Canadian Government had decided to construct a Pacific Railway that would bridge the wildernesses by which Nature had separated those Provinces, which were united by the British North American Act. The project was deemed so hopeless as a commercial undertaking that the money to carry it on could not be raised. But during the negotiations which ended in the Treaty of Washington, Canada, at the instance of the British Commissioners, made certain concessions, in return for which the British Government undertook to guarantee a loan for the construction of the Canadian Pacific Railway. The money was then raised without delay, and Sir Hugh Allen, the richest capitalist in Canada, formed a syndicate, who applied for and obtained the contract for constructing the railway from the Government of Sir John Macdonald, which then held office in the Dominion. It was soon alleged that Sir John Macdonald and his colleagues in the Canadian Cabinet had been bribed to “job” away the contract into Sir Hugh Allen’s hands. The Canadian House of Commons believed in the charge, insisted on an investigation, and appointed a Committee of Inquiry. Vigorous efforts were made to hush up the scandal, and by means of the veto of the Crown the Committee was paralysed. An Act authorising it to examine witnesses on oath was passed by the Dominion Parliament, but was vetoed by the Crown on technical grounds. The Members of the Opposition, however, defeated this attempt to stifle effective inquiry, by refusing to serve on what they declared would be a sham tribunal, and public opinion was so incensed that the Government were compelled to appoint to the vacant seats in the Committee persons of high judicial position. When under examination by the Commissioners Sir Hugh Allen admitted that he paid Sir John Macdonald £36,000 in order to secure the election of candidates pledged to support his Ministry in the Canadian Parliament. Sir John Macdonald and his colleagues admitted that they received this money, and that they had used it to carry seats in the Province of Ontario for their faction. After the money was paid the contract was given to Sir Hugh Allen. But in this transaction Sir John Macdonald denied that there was any taint of bribery. Like his celebrated countryman, Sir Pertinax Macsycophant, he said, “Dinna ca’t breebery. It ’s juist geenerosity on the ae haun’, an’ grawtitude on the ither.” In Canada and England a different view was taken of the matter. The Macdonald Ministry was driven from office amidst public execration, and even Lord Dufferin the Governor-General, and the Colonial Office did not escape censure, when it became clear that they were at least privy to the matter.