In 1875 the Mechanics Bank and the Banque Jacques Cartier suspended payment. The industries were very few and could not compete with those of the States, and agriculture was feeble. There were heavy duties to pay for the many goods coming from the States. There was little population and many crossed the border line. Work was scarce; there was great distress. People were starving and free public soup kitchens were established for poor relief by the charitable agencies. Funds were too low for more liberal treatment. Politicians placed the blame on the free trade policy of Mr. McKenzie’s party then in power. This was opposed to the genius and the needs of a young country feeling its industrial way. While the Americans had a duty at that time of twenty to seventy per cent the Canadians for purely revenue purposes had only something like fifteen per cent, and nothing for protection. The occasion was one that demanded practical relief and not finely strung political theories, built on the experience of the custom prevailing in England. But nothing was done so that the people became hopeless and gloomy and there was a project about this time, as already recorded, for annexation, encouraged by the American party in Montreal for business reasons. Meanwhile the city saw, in June and July, of 1878, the Orange troubles and the shooting of Hackett, a state of excitement no doubt caused by the general unsettled state of affairs. The great hope of this time was the national policy which Sir John A. Macdonald began to make public. The effect was magical at the start. In March, 1878, he expressed his opinion that to be prosperous Canada must adopt a “national policy” for the protection of home industries. It had to be fought out at the polls. There was now hope in every breast. Financial men began to look out for sites upon which to build mills and factories, the sugar refineries were reopened, the people took heart and when the policy carried at the polls in September by a tremendous majority and was ratified by a formal vote in the house, and when the national policy was introduced March 14, 1879, going into effect next day, it was felt that Montreal and Canada were saved. It was the remembrance of this that caused the older men to vote against reciprocity when before the public in 1911. A social event of this year was the investiture by the Marquis of Lorne, Governor-General of Canada, authorized by Her Majesty, of the six knights of the most distinguished Order of St. Michael and St. Gregory.