One of the most important questions with which the Mackenzie government was called upon to deal was the construction of the Canadian Pacific railway. It was first proposed to utilise the "water-stretches" on the route of the railroad, and in that way lessen its cost, but the scheme was soon found to be impracticable. The people of British Columbia were aggrieved at the delay in building the railway, and several efforts were made to arrange the difficulty through the intervention of the Earl of Carnarvon, colonial secretary of state, of the governor-general when he visited the province in 1876, and of Mr., afterwards Sir, James Edgar, who was authorised to treat with the provincial government on the subject. At the instance of the secretary of state the government agreed to build immediately a road from Esquimalt to Nanaimo on Vancouver Island, to prosecute the surveys with vigour, and make arrangements for the completion of the railway in 1890. Mr. Blake opposed these terms, and in doing so no doubt represented the views of a large body of the Liberal party, who believed that the government of Canada had in 1871 entered into the compact with British Columbia without sufficient consideration of the gravity of the obligation they were incurring. The commons, however, passed the Esquimalt and Nanaimo bill only to hear of its rejection in the senate, where some Liberals united with the Conservative majority to defeat it. When the surveys were all completed, the government decided to build the railway as a public work; but by the autumn of 1878, when Mr. Mackenzie was defeated at a general election, only a few miles of the road had been completed, and the indignation of British Columbia had become so deep that the legislature passed a resolution for separation from the Dominion unless the terms of union were soon fulfilled.