affairs, weakening the formal military connection between Britain and {329} Canada. Canadian defence, from being part of imperial policy, had become a detail in the strife of domestic politics. "There can be no doubt," Monck reported, "that the proposed militia arrangements were of a magnitude far beyond anything which had, up to that time, been proposed, and this circumstance caused many members, especially from Lower Canada, to vote against it; but I think there was also, on the part of a portion of the general supporters of government, an intention to intimate by their vote the withdrawal of their confidence from the administration."[32] Even before 1867, then, it had become apparent that the imperial system administered on Home Rule principles was something entirely different from a federation like that of the United States, with carefully defined State and Federal rights. All the presumption, in the new British state, was in favour of the so-called dependency, and the British Tories were correct, when they prophesied a steady retrogression in the legal rights possessed by the mother country. But the element which they had ignored was that of opinion. Public feeling rather than constitutional law was to be the new foundation of empire. How did the {330} development of Canadian political independence affect public sentiment towards Britain? The new regime began under gloomy auspices. In 1849 Lord Elgin gave the most decisive proof of his allegiance to Canadian autonomy; and in 1849 a violent agitation for annexation to the United States began.[33] Many forces assisted in the creation of the movement, and many groups, of the most diverse elements, combined to constitute the party of annexation. There was real commercial distress, in part the result of the commercial revolution in Britain, and Montreal more especially felt the strain acutely. "Property," wrote Elgin to Grey in 1849,[34] "in most of the Canadian towns, and more especially in the Capital, has fallen 50 per cent. in value within the last three years. Three-fourths of the commercial men are bankrupt. Owing to free trade a large proportion of the exportable produce of Canada is obliged to seek a market in the States. It pays a duty of 20 per cent. on the frontier. If free navigation, and reciprocal trade with the Union be not secured for us, the worst, I fear, will come, {331} and at no distant day." Now, for that distress there seemed to be one natural remedy. Across the border were prosperity and markets. A change in allegiance would open the doors, and bring trade and wealth flowing into the bankrupt province. Consequently many of the notable names among the Montreal business men may be found attached to annexation proclamations.