One of Lord Dufferin's last official acts in October, 1878, was to call upon Sir John Macdonald to form a new administration on the resignation of Mr. Mackenzie. The new governor-general, the Marquess of Lorne, and the Princess Louise, arrived in Canada early in November and were everywhere received with great enthusiasm. The new protective policy--"the National Policy" as the Conservatives like best to name it--was laid before parliament in the session of 1879, by Sir Leonard Tilley, then finance minister; and though it has undergone some important modifications since its introduction it has formed the basis of the Canadian tariff for twenty years. The next important measure of the government was the vigorous prosecution of the Canadian Pacific railway. During the Mackenzie administration the work had made little progress, and the people of British Columbia had become very indignant at the failure to carry out the terms on which they had entered the confederation. In the session of 1880-81 Sir Charles Tupper, minister of railways, announced that the government had entered into a contract with a company of capitalists to construct the railway from Montreal to Burrard's Inlet. Parliament ratified the contract by a large majority despite the vigorous opposition made by Mr. Blake, then leader of the Liberal party, who had for years considered this part of the agreement with British Columbia as extremely rash. Such remarkable energy was brought to the construction of this imperial highway that it was actually in operation at the end of five years after the commencement of the work--only one-half of the time allowed in the charter for its completion. The financial difficulties which the company had to encounter in the progress of the work were very great, and they were obliged in 1884 to obtain a large loan from the Dominion government. The loan was secured on the company's property, and was paid off by 1887. The political fortunes of the Conservative administration, in fact, were indissolubly connected with the success of this national enterprise, and from the moment when the company commenced the work Sir John Macdonald never failed to give it his complete confidence and support.