About 1850 the ocean steamer was rapidly re placing the sailing vessel. The Cunard line of steamers, running to New York and Boston, was subsidized by the British government, doubtless a profitable venture for Britain, but appearing to Canadians as an additional handi cap for the Saint Lawrence route. Canada was constrained to subsidize a line of its own,— the Allan — for weekly service, at an annual cost to the country of $225,000.
The American boom in railroad building, and railroad activity, convinced the Canadians that they must have railroads to supplement their canals. They desired independent winter outlets on the Atlantic, and connection with American markets to which the attention of Canada was now turning. While absorbed in their canals the Canadians had given little prac tical attention to railroads. Hence, before 1840 only 16 miles of railroad had been built, con necting Montreal with Saint John's on the Champlain route to New York. Much discus sion took place and many charters were obtained during the forties, but little of a serious nature was attempted. In 1849 the Canadian govern ment, chiefly under the influence of Mr. (after ward Sir) Francis Hincks, adopted a vigorous railroad policy by undertaking to guarantee 6 per cent interest on a sum not to exceed half the cost of any railroad of not less than 70 miles in length. Among the first lines to be undertaken was the Saint Lawrence and Atlan tic, connecting Montreal with Portland, and opened in 1853. In western Canada the North ern Railway, from Toronto to Collingwood, was the first to be built, being begun in 1850 and opened in 1853. The Great Western Railway, between Niagara and Detroit, was the next to be undertaken, and was opened in 1854. Under
the fostering direction of Mr. Hincks, the Grand Trunk Railroad was chartered in 1852, as the great central line of Canada. In 1853 it leased the Saint Lawrence and Atlantic, and when, in 1856, the main line was opened from Toronto to Montreal, the chief commercial districts of Can ada were connected with the Atlantic by a Canadian line.
The railroad boom lasted from 1849 to 1857, involving an immense outlay of capital, chiefly British. Both the central government and the municipalities were deeply pledged in support of the numerous lines undertaken. The crisis of 1857 brought the movement to a close, and the pecuniary embarrassments of most of the lines effectively discouraged further railroad enter prises for the next 10 years. In Nova Scotia and New Brunswick large projects were also afoot to connect Halifax and Saint John with the New England States, and also with Canada. But, beyond small sections of these plans, chiefly for local traffic, little was accomplished before Confederation. The general situation is reflected in the following figures. In 1840 there were in the British North American provinces 16 miles of railroad; in 1850, 66 miles; in 1860, 2,065 miles, and in 1870, 2,617 miles.
Tariffs and Expansion of With regard to tariffs, the central feature of the period between 1850 and Confederation, in 1867, was the Reciprocity Treaty with the United States, signed in 1854 and abrogated in 1866. It established reciprocal free trade between the British North American provinces and the United States, in all natural products. This se cured free entry to the United States for prac tically everything which the British provinces had to sell. (See CANADA - RECIPROCITY WITH