You are sufficiently acquainted with Canadian history to be aware of the fact, that these unfortunate Clergy Reserves have been a bone of contention ever since they were set apart. I know how very inconvenient it is to repeal the Imperial Act which was intended to be a final settlement of the question; but I must candidly say I very much doubt whether you will be able to preserve the Colony if you retain it on the Statute Book. Even Lafontaine and others who recognise certain vested rights of the Protestant churches under the Constitutional Act, advocate the repeal of the Imperial Act of 1840: partly because Lower Canada was not consulted at all when it was passed; and, secondly, because the distribution made under that Act is an unfair one, and inconsistent with the views of the Upper Canadian Legislature, as expressed at the time but set aside in deference, as it is alleged, to the remonstrances of the English bishops. Some among the Anglo-Saxon Liberals, and some of the Orange Tories, I suspect, share these views. A considerable section is for appropriating the proceeds of the reserves at once, and applying them to education, without any regard to the rights either of individuals or of churches. These persons are furious with the supporters of the address for proposing to preserve the life interests of incumbents. The sentiments of the remainder are pretty accurately conveyed by the terms of the address. * * * * * _To the Earl Grey._ Toronto, July 19, 1850. [Sidenote: Reasons for agreeing.] The 'Clear Grit' organs, which have absorbed a large portion of the 'Annexationists,' talk very big about what they will do if England steps in to preserve the 'Clergy Reserves.' That party would be only too glad to get up a quarrel with England on such a point. It is, of course, impossible for you to do anything with the Imperial Act till next session. A little delay may perhaps enable us to see our way more clearly with respect to this most perplexing subject. Lord Sydenham's despatch of January 22,1840, is a curious and instructive one. It accompanies the Act on the 'Clergy Reserve' question, which he induced the Parliament of Upper Canada to pass, but which was not adopted at home; for the House of Lords concocted one more favourable to the Established Churches. He clearly admits that the Act is against the sense of the country, and that nothing but his own great personal influence got it through, and yet he looks upon it as a settlement of the question. I confess I see few of the conditions of finality in measures which are passed under such circumstances. * * * * * _To the Earl Grey._ Toronto, March 18,1851.