Political structure of Upper Canada Many of the grievances which underlay the rebellion involved the provisions of the
Constitutional Act 1791, which had created
Upper and
Lower Canada's political framework. The
Family Compact dominated the government of Upper Canada and the financial and religious institutions associated with it. They were the leading members of the administration: executive councillors, legislative councillors, senior officials and some members of the judiciary. Their administrative roles were intimately tied to their business activities. For example,
William Allan "was an executive councillor, a legislative councillor, president of the Toronto and Lake Huron Railroad, governor of the British American Fire and Life Assurance Company, and president of the Board of Trade." Members of the Family Compact utilized their official positions for monetary gain, especially through corporations such as the
Bank of Upper Canada and the two land companies (the
Clergy Corporation and the
Canada Company) that between them controlled nearly 30% of the land in the colony. Lacking the minimum capital needed to found the bank, the corporate leaders persuaded the government to subscribe for a quarter of its shares. During the 1830s, a third of the bank's board were legislative or executive councillors, and the remainder were magistrates. Despite repeated attempts, the elected legislature which had chartered the bank could not obtain details on the bank's workings. Politician and former journalist
William Lyon Mackenzie saw the bank as a prop of the government and demanded farmers withdraw the money they had deposited in the bank, and public confidence in the bank decreased.
Demographic changes The government of Upper Canada feared a growing interest in American-inspired
republicanism because of the increase in immigration of American settlers to the colony. The large number of migrants led American legislators to speculate that bringing Upper Canada into the American fold would be a "mere matter of marching". After the
War of 1812 the colonial government prevented Americans from swearing allegiance, thereby making them ineligible to obtain land grants. Relations between the appointed
Legislative Council and the elected
Legislative Assembly became increasingly strained in the years after the war, over issues of immigration, taxation, banking and land speculation. The
Reformers won a majority in the elections held in 1834 for the Legislative Assembly of the
12th Parliament of Upper Canada, but the Family Compact held the majority in the Legislative Council. The union was reorganized as the Canadian Alliance Society in 1835 and adopted much of the platform of the
Owenite National Union of the Working Classes in
London, England, that were to be integrated into the
Chartist movement in England. In pursuit of this democratic goal, the Chartists eventually staged a similar armed rebellion, the
Newport Rising, in Wales in 1839. The Canadian Alliance Society was reborn as the Constitutional Reform Society in 1836 and was led by the more moderate reformer
William W. Baldwin. The society took its final form as the Toronto Political Union in 1837, and they organized local "Vigilance Committees" to elect delegates to a Constitutional Convention in July 1837. This became the organizational structure for the rebellion, and most of the rebel organizers were elected Constitutional Convention delegates.
Francis Bond Head and the elections of 1836 as the
Lieutenant Governor of Upper Canada was initially warmly greeted, though his administration was later met with controversy. Sir
Francis Bond Head was appointed as
lieutenant governor, and the Reform movement believed he would support their ideas. After meeting with Reformers, Head concluded that they were disloyal to the British Empire and allied himself with the Family Compact. He refused proposals to bring
responsible government to Upper Canada, responding in a sarcastic tone that belittled reformers. The Reform-dominated Assembly responded by refusing to pass the
money bill, which halted the payment of salaries and pensions to many government workers. Head then refused to pass any legislation from that government session including major public works projects. This caused a recession in Upper Canada. The movement was disappointed when Head made it clear he had no intention of consulting the Executive Council in the daily operations of the administration. The Executive Council resigned, provoking widespread discontent and an election in 1834. Unlike previous lieutenant governors, Head actively supported
Tory candidates and utilized
Orange Order violence in order to ensure their election. He appealed to the people's desire to remain part of the British Empire and a paternalistic attitude of the Crown providing goods for the people. Reformers such as Mackenzie and
Samuel Lount lost their seats in the Legislature, and they alleged that the election was fraudulent. They prepared a petition to the Crown protesting the abuses, carried to London by
Charles Duncombe, but the Colonial Office refused to hear him. The new Tory-dominated legislature passed laws that exacerbated tensions including continuing the legislative session after the death of the king, prohibiting members of the legislature from serving as executive councillors, making it easier to sue indebted farmers, protecting the Bank of Upper Canada from bankruptcy, and giving legislative councillors charters for their own banks.
Collapse of the international financial system , to the approval of the
Uncle Sam like figure to the right, and annoyance of the bank's president, shown as the Devil himself On July 10, 1832, US President
Andrew Jackson vetoed a bill for the refinancing of the
Second Bank of the United States, causing a
depression in the Anglo-American world. This was worsened in Upper Canada by poor wheat harvests in 1836 and farmers were unable to pay their debts. Most banks, including the Bank of Upper Canada, suspended payments by July 1837 and successfully obtained government support while ordinary farmers and the poor did not. One fifth of British immigrants to Upper Canada were impoverished, and most immigrant farmers lacked the capital to pay for purchased land. Debt collection laws allowed them to be jailed indefinitely until they paid their loans to merchants. In March 1837 the Tories passed a law making it cheaper to sue farmers by allowing city merchants to sue in the middle of harvest. If the farmer refused to come to court in Toronto, they would automatically forfeit the case and their property would be subjected to a sheriff's sale. Among the more than 150 lawsuits they launched that year, the Bank of Upper Canada sued Sheldon, Dutcher & Co., a foundry and Toronto's largest employer with over 80 employees, bankrupting the company. Mackenzie's first plan for rebellion involved calling on Sheldon & Dutcher's men to storm the city hall, where the militia's guns were stored.
Budget of Upper Canada The Reformers were incensed at the debt that the Family Compact incurred as the results of general improvements to the province, such as the
Welland Canal. The Upper Canada legislature refused to pass a
supply bill in 1836 after Head refused to implement
responsible government reforms. In retaliation, Head refused to sign any bills passed by the assembly, including public work projects. This contributed to economic hardship and increased unemployment throughout the province. ==Planning==