1 October 1993
2
3 John Palliser's Observations
4 on the Proposed Annexation of Rupert's Land
5 and
6 the Monopoly Rights of the Hudson's Bay Company
7
8
9 ....edited by Marijan Salopek
10
11 [Editor's Note: The text below is a true
12 representation of the original as penned by John
13 Palliser; obvious errors in usage, spelling,
14 punctuation, syntax, etc. have not been corrected.]
15
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17
18 Confidential Despatch to the Secretary of State for the Colonies
19
20 Registered CO Montreal March 13-1858
21 March 30, 1858.
22
23 Sir,
24 Although my mission from the Colonial office is merely an
25 exploring one yet much has come under my notice both from
26 experience in the country and intercourse with all classes
27 English, French, Canadian, Half Breeds and Indians inhabiting the
28 H.B. Territory. I therefore take the liberty of offering a few
29 remarks and suggestions valuable only perhaps because coming from
30 an impartial observer like myself.
31 The question which I now enter upon has been some time
32 before the Political world, both in England, and in Canada and I
33 do not think its solution has yet been arrived at either in The
34 House of Assembly in Canada, nor by the Committee of the House of
35 Commons last year. The Question is
36
37 "Is there a better Systim of Government for The
38 North American Indian Territories than that of The
39 Hudson Bay Company and if there be" "What is it"?
40
41 The object of the enquiry before the House of Assembly in Canada,
42 is, (as I understand it) to ascertain what government would be
43 best adapted to further the civilisation of the whole country at
44 present under the sway of The Hudson Bay Company.
45 The enquiry in England arose from the Hudson Bay Company
46 applying for a renewal of the license to trade in the British
47 Indian Possessions not comprised in the limits held by them under
48 the Charter of 1670. Before the Committee of the house of
49 Commons not only the monopoly of trade in the licensed territory
50 was brought under review but also that in the Chartered
51 territory. The Object of that committee was the same as that of
52 the House of assembly in Canada, with this modification of it,
53 that the House of Assembly took a Canadian view of it The House
54 of Commons an Imperial one.
55 It was attempted to show that these views were identical but
56 from the Nature of the Case it was not so --
57 While Canada asserted its rights to the occupancy of a
58 section of country fit for cultivation and plied the home
59 Government with arguments founded on a gigantic amplification of
60 their dominions to the shores of the Pacific and a visionary
61 commercial scheme that shd embrace The East Indies & China --
62 The Imperial Authorities felt the duty incumbent on them of
63 ascertaining the necessities of the People dwelling in the Indian
64 territories and of adopting the mode of Government which presents
65 the most favourable characteristics of progression in
66 civilisation.
67 I have no hesitation in expressing my conviction that no
68 Government which Canada is in the power of conferring could
69 succeed in attaining so desirable an object.
70 The Experience which I have obtained from personal
71 observation, and searches while conducting The North British
72 America Exploring Expedition, between lake Superior and Red River
73 Settlement convinced me that any route forced through that region
74 either by land or by water or by a combined means of both could
75 only be carried out at a vast expense and therefore never become
76 a reproductive expenditure.
77 The people of Canada too must now have some opportunities of
78 judging the nature of the difficulties of communicating with Red
79 River from the Surveying expedition which their Government sent
80 out there last year, and must be convinced that there are
81 physical obstructions of no common order independent of climate,
82 that stand in the way of their proposed Annexation of Red River,
83 when all these draw backs are ascertained (i e)
84
85 1st. The impossibility of governing a country at such a distance
86 from the seat of Government in Canada.
87 2nd. The utter hopelessness of the competition in trade in Hudson
88 Bay, which always can be cheaper done by the way of York Factory
89 with England than by Lake Superior with Canada
90 3rd. The great expense of opening up Roads & their uselessness
91 when complete
92 4th. The probability of Indian disturbances which wd. necessitate
93 the conveyance of troops from Canada and minor causes of
94 disquietude and outlay without any adequate compensation.
95
96 When these are fully known I think Canada will best forward
97 its own views and interests & stand on surer ground by advocating
98 some other cause in the laudable attainment of a Government
99 adapted to civilise Hudsons Bay.
100 If Canada give up all ideas of annexation (as I think it
101 must) the course left open for her to pursue will be to enquire
102 into and report to the Imperial government upon the most feasible
103 practical plan of fostering civilisation in a country bordering
104 her own.
105 This reduces the consederation of the subject to the
106 question -- "Is there a better System of government for the
107 Indian territories than that of the Hudson Bay Coy.;" and if
108 there be "What is it?"?
109 Admitting as a principle confirmed by long experience that a
110 monopoly of trade has been best conducive to the well being of
111 the Indian population, simply, as a wild population I shall
112 proceed to show that however desirable a monopoly may be, it is
113 unattainable now and for evermore!!
114 Perhaps it would not be too much to say, even were it
115 attainable, it would be a policy pregnant with no earthly good,
116 that Indian tribes, should have no ulterior object, than that of
117 hunting furs, for civilised communities.
118 It is well known that Opposition does exist in the Fur
119 territories. There would be no difficulty in ascertaining for
120 the Government how extensive that opposition is
121 It is sufficient for my purpose to know it as a fact that
122 cannot be denied, and that it brings with a train of evils simply
123 because the laws of a monopoly cannot cope with the illicit
124 trade.
125 Unfortunately for the monopoly, the people engaged in this
126 trade are inhabitants of the Indian land and born on its soil
127 These people most of them Half Breeds are British subjects and
128 whatever the rights and privileges of the Hudson Bay Company may
129 be under the Charter, They think it a very hard case that they
130 should be debarred from trading in the land of their birth, and
131 that Foreigners (as the British company undoubtedly are to them)
132 should have a vested priviledge which as British subjects the
133 inhabitants are not permitted to enjoy --
134 There appears to be a shadow of Justice in this complaint.
135 Just or not! -- the opposition exists and nothing short of
136 extirpating the people engaged in it can ever stop it
137 Unless legislation be adopted to the evils incidental to
138 this opposition, the country will become as unfit for sober
139 traders to live in, as it was in the time of the feuds of the
140 North West and Hudson Bay Companies. The trade however will be
141 characterised by this difference, that, in the former opposition
142 it was a company of traders opposed to another company of traders
143 -- each under well recognised systims, while on the present
144 occasion, it is a body of traders opposed to detached individuals
145 without a systim, who start off at a moments notice to a
146 desultary trade with Indians that are at the same time away from
147 the influence or inspection of the Company. This mode of trading
148 has a prejudicial effect morally on the Indian, It teaches him
149 duplicity to the Company, for the illicit trader and he mutually
150 understand that the transaction must be kept a secret from the
151 Company
152 Generally too, the trade is a spiritous liquor one and its
153 attendant immorality is too well known to need comment here.
154 To oppose this trade the Company also use spirits
155 To quash illicit trade seems impracticable
156 Force would only introduce the Elements of discord, the
157 passions of the rival traders would be roused, anger might result
158 in bloodshed and the end, none can see
159 As a trade that requires physical force to support it, is
160 not in consonance with the prevailing opinions respecting
161 commerce, the deduction naturally springing from the
162 consideration of the monopoly and its present opposition is to
163 annul the monopoly, and curb the opposition by wholesome
164 restraint or in other words so to legislate as to put the present
165 traders and their opponents on the same level
166 My own experience of the Fur traders is that they are honest
167 honorable men disliking above all things this systim of
168 opposition that compels them to resort to a factious trade
169 I feel persuaded that the Greatest Calamity that could befal
170 the Indian wd be to destroy the present Fur trade and its immense
171 ramifications
172 The traders thoroughly know their work and how to do it,
173 with their systim they convey within the reach of every Indian in
174 the territories the means of hunting and the necessaries for his
175 existence and their annihilation wd produce the misery and
176 distruction of thousands of Indians
177 Leaving this branch of the subject for a while I wd call
178 your attention to the constitution of the existing trade. It is
179 conducted on the principle of Capital being supplied by the
180 Stockholder: the whole expences of the trade inclusive of London
181 expences are charged against the trade every item is paid for by
182 the trade and 5 per cent per annum charged on the capital
183 besides, likewise paid by the trade
184 The whole outlay both Principal and interest is repaid
185 before the profit and loss sheet is struck -- Then the profits
186 are divided 4/10ths to the partners in the Indian country (called
187 wintering partners) and 6/10ths to the stockholders in England
188 whoever they may be. In other words 4/10ths are considered an
189 ample remuneration for all the active duties, and 6/10ths for all
190 the passive ones, so that -- shutting out the view of the
191 Chartered rights -- If the Wintering partners were working with
192 their own capital, -- at the same expence to the trade and
193 conducted on precisely the same principle, -- they would after
194 paying 5% p.c. for working capital be richer annually by 6/10ths
195 of the whole income of the Fur trade
196 Looking at this state of things in conjunction with the
197 leading idea that the Hudson Bay Company lay so much stress upon
198 in their application for a monopolitical license viz "That
199 Indians are unfit from their habits and want of education to mix
200 with white men" -- I would ask how it comes that there has been
201 no Systim of National education attempted by the Company --
202 Surely these 6/10ths (after paying what is considered a
203 sufficiency to active agents and all expences incidental thereto)
204 -- are -- Indian earnings and if (as the Company assert) the
205 Indians are not fit for the society of civilised beings, ought
206 not some portion of these 6/10ths to be devoted to their
207 education and benefit.
208 I emphatically deny the incapacity and want of intellect in
209 Indians and half breeds, or their incapacity for instruction, and
210 a settled life -- But this will not come in one day -- nor be
211 produced without an effort -- Why not make an effort of the Kind?
212 I do not condemn the Hudson Bay Company nor conceive that
213 they are acting wrongly in this absorption of 6/10ths of the
214 profits -- As merchants they are entitled to profits I only
215 advance this argument with the ulterior purpose of showing that
216 the Indians are entitled to an education fund, founded on their
217 own industry. --
218 All the rights and privileges of The Hudson Bay Company
219 under the Charter are marketable
220 Anyone with funds who is willing to buy, the market value is
221 ascertainable and the transfer is as easily effected as any
222 Government Stock or Public investment Were it not so I would not
223 have written so boldly on this great question and I have no other
224 desire than to act justly towards all parties interested in it.
225 From the foregoing considerations I arrive at the following
226 deductions
227 Let the British Government pay The Hudson Bay Company the
228 market price for their stock -- assume all their Assets and
229 liabilities and thus Abolish The Charter!
230 Let the Capital employed in the trade be transferred to the
231 existing body of Fur traders now known as The wintering partners
232 of the Hudson Bay Company and the Imperial Government give up to
233 them, all the present fur stations, the fur traders paying the
234 Government 5% for Capital until it be refunded to the Exchequer
235 That the whole country be opened to free trade with the
236 proviso that all fur traders (the present fur traders inclusive)
237 take out a license for every station or house in which the fur
238 trade is conducted
239 That the Fur trade be illegal except in such licensed
240 station or house
241 That spirits for Indian consumption be interdicted
242 That two distinct Colonial Governments be constituted, one
243 on The Pacific with the seat of Government at Victoria
244 Vancouver's Island, embracing for territory, the land on the West
245 side of the Rocky Mountains, Vancouvers Island and Queen
246 Charlotte's Islands -- The other -- all the lands east of the
247 Rocky Mountains with Head Quarters at Red River.
248 That an Indian council be appointed for protecting Indian
249 interests and superintending Indian Education in both colonies,
250 and to create a fund for national education
251 Let an average be taken since 1821 of the 6/10ths profits
252 and let this be the basis of the estimate of annual charges
253 hereafter on the resources of the two Colonies
254 As Vancouvers Island has already a representative government
255 it will only be necessary to enlarge its machinery, but Rupert's
256 land will require a new constitution embracing both the
257 legislative and executive departments --
258 These are not theories resulting from books and meditations
259 in a study but from experience on the shores of Lakes Superior &
260 Winnipeg, on the Red and Saskatchewan Rivers, also from
261 conversations with intelligent wintering Partners of the Hudson
262 Bay Company who have give me the benefit of their experience in
263 Canada Hudson Bay -- Vancouvers Island, and the Counting house in
264 London.
265 I hardly think that The Hudson Bay company in London will
266 altogether approve of this scheme, but the following paragraph
267 taken from Governor Shepherd's letter to the Rt. Honble H.
268 Labouche`re M P dated Hudson Bay House 18 July 1857. shows that
269 their opposition will not be factional. It is a noble tribute to
270 civilisation and an honor to the high minded writer.
271 "The Board will be ready to bow to any decision which her
272 Majesty's Govnt may consider it for the Public interest to take
273 with regard to the maintenance or abolition of the exceptional
274 rights and trade of The Hudson Bay Company relying confidently on
275 the justice of Her Majesty's Government and of Parliament for
276 just compensation to the present stockholders, and a due
277 consideration of their factor traders and servants in the Indian
278 Country if the time shall have arrived in the opinion of H. M.
279 Govt. for the abolition of the Monopoly" In conclusion I beg to
280 say that I have been induced to communicate with you on this
281 subject, by motives of interest for the Indians and half breeds,
282 who inhabit these territories, I feel myself so thoroughly
283 competent to do so being able to exercise on this subject a
284 judgment unbiassed by favour or prejudice -- for I am one of the
285 few that have ever traversed the country who have not either been
286 in the interests of, or at variance to The Hudson Bay Company.
287
288 I am
289 Sir
290 Yours Obedntly --
291
292 John Palliser, Captn
293 Commanding North British America Exploring Expedition
294
295
296 Source:
297
298 Britain, Public Records Office, Colonial Office 6/29 "P",
299 fos. 70-82.
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