During the existence of the Mackenzie government there was much depression in trade throughout the Dominion, and the public revenues showed large deficits in consequence of the falling-off of imports. When the elections took place in September, 1878, the people were called upon to give their decision on a most important issue. With that astuteness which always enabled him to gauge correctly the tendency of public opinion, Sir John Macdonald recognised the fact that the people were prepared to accept any new fiscal policy which promised to relieve the country from the great depression which had too long hampered internal and external trade. In the session of 1878 he brought forward a resolution, declaring emphatically that the welfare of Canada required "the adoption of a national policy which, by a judicious readjustment of the tariff will benefit the agricultural, the mining, the manufacturing and other interests of the Dominion ... will retain in Canada thousands of our fellow-countrymen now obliged to expatriate themselves in search of the employment denied them at home ... will restore prosperity to our struggling industries now so sadly depressed ... will prevent Canada from being made a sacrifice market ... will encourage and develop an interprovincial trade ... and will procure eventually for this country a reciprocity of trade with the United States." This ingenious resolution was admirably calculated to captivate the public mind, though it was defeated in the house of commons by a large majority. Mr. Mackenzie was opposed to the principle of protection, and announced the determination of the government to adhere to a revenue tariff instead of resorting to any protectionist policy, which would, in his opinion, largely increase the burdens of the people under the pretence of stimulating manufactures. As a consequence of his unbending fidelity to the principles of his life, Mr. Mackenzie was beaten at the general election by an overwhelming majority. If he had possessed even a little of the flexibility of his astute opponent he would have been more successful as a leader of a party.