Domestic policy Manitoba Schools Question One of Laurier's first acts as prime minister was to implement a solution to the Manitoba Schools Question, which had helped to bring down the Conservative government of Charles Tupper earlier in 1896. The Manitoba legislature had passed a law eliminating public funding for Catholic schooling. Supporters of Catholic schools argued that the new statute was contrary to the provisions of the
Manitoba Act, 1870, which had a provision relating to school funding, but the courts rejected that argument and held that the new statute was constitutional. The Catholic minority in Manitoba then asked the federal government for support, and eventually, the Conservatives proposed remedial legislation to override Manitoba's legislation. Laurier opposed the remedial legislation on the basis of provincial rights and succeeded in blocking its passage by Parliament. Once elected, Laurier reached a compromise with the provincial premier,
Thomas Greenway. Known as the Laurier-Greenway Compromise, the agreement did not allow separate Catholic schools to be re-established. However, religious instruction (Catholic education) would take place for 30 minutes at the end of each day, if requested by the parents of 10 children in rural areas or 25 in urban areas. Catholic teachers were allowed to be hired in the schools as long as there were at least 40 Catholic students in urban areas or 25 Catholic students in rural areas, and teachers could speak in French (or any other minority language) as long as there were enough Francophone students. This was seen by many as the best possible solution in the circumstances, however, some French Canadians criticized this move as it was done on an individual basis, and did not protect Catholic or French rights in all schools. Laurier called his effort to lessen the tinder in this issue "sunny ways" ().
Railway construction Laurier's government introduced and initiated the idea of constructing a second
transcontinental railway, the
Grand Trunk Pacific Railway. The first transcontinental railway, the
Canadian Pacific Railway, had limitations and was not able to meet everyone's needs. In
the West, the railway was not able to transport everything produced by farmers and in
the East, the railway did not reach into
Northern Ontario and
Northern Quebec. Laurier was in favour of a transcontinental line built entirely on Canadian land by private enterprise.
Provincial and territorial boundaries On September 1, 1905, through the
Alberta Act and the
Saskatchewan Act, Laurier oversaw
Alberta and
Saskatchewan's entry into
Confederation, the last two provinces to be created out of the
Northwest Territories. Laurier decided to create two provinces, arguing that one large province would be too difficult to govern. This followed the enactment of the
Yukon Territory Act by the Laurier Government in 1898, separating the
Yukon from the Northwest Territories. Also in 1898, Quebec was enlarged through the
Quebec Boundary Extension Act.
Immigration Laurier's government dramatically increased immigration to grow the economy. Between 1897 and 1914, at least a million immigrants arrived in Canada, and Canada's population increased by 40 percent. Laurier's immigration policy targeted the
Prairies as he argued that it would increase farming production and benefit the
agriculture industry. The British Columbia electorate was alarmed at the arrival of people they considered "uncivilized" by Canadian standards, and adopted a whites-only policy. Although railways and large companies wanted to hire Asians, labour unions and the public at large stood opposed. Both major parties went along with public opinion, with Laurier taking the lead. Scholars have argued that Laurier acted in terms of his racist views in restricting immigration from China and India, as shown by his support for the Chinese
head tax. In 1900, Laurier raised the Chinese head tax to $100. In 1903, this was further raised to $500, but when a few Chinese did pay the $500, he proposed raising the sum to $1,000. This was not the first time Laurier showed racially charged action, and over the course of his time as a politician, he had a history of racist views and actions. In 1886, Laurier told the House of Commons that it was moral for Canada to take lands from “savage nations” so long as the government paid adequate compensation. Laurier also negotiated a limit to Japanese immigration into Canada. In August 1911, Laurier approved the
Order-in-Council P.C. 1911-1324 recommended by the
minister of the interior,
Frank Oliver. The order was approved by the cabinet on August 12, 1911. The order was intended to keep out Black Americans escaping segregation in the American south, stating that "the Negro race...is deemed unsuitable to the climate and requirements of Canada." The order was never called upon, as efforts by immigration officials had already reduced the number of Blacks migrating to Canada. The order was cancelled on October 5, 1911, the day before Laurier left office, by cabinet claiming that the minister of the interior was not present at the time of approval. , in 1907
Social policy In March 1906, Laurier's government introduced the ''Lord's Day Act'' after being persuaded by the Lord's Day Alliance. The act became effective on March 1, 1907. It prohibited business transactions from taking place on Sundays; it also restricted Sunday trade, labour, recreation, and newspapers. The act was supported by organized labour and the French Canadian Catholic hierarchy but was opposed by those who worked in the manufacturing and transportation sectors. It was also opposed by French Canadians due to them believing the federal government was interfering in a provincial matter; the Quebec government passed its own
Lord’s Day Act that came into effect one day before the federal act did. In 1907, Laurier's government passed the
Industrial Disputes Investigation Act, which mandated conciliation for employers and workers before any strike in public utilities or mines, but did not make it necessary for the groups to accept the conciliators’ report. In 1908, a system was introduced where by annuities may be purchased from the government, the aim of which was to encourage voluntary provision for old age.
Foreign policy United Kingdom On June 22, 1897, Laurier attended the
Diamond Jubilee of Queen Victoria, which was the 60th anniversary of her accession. There, he was knighted, and was given several honours, honorary degrees, and medals. In 1899, the British government requested Canadian troops to serve in the
Second Boer War. Laurier was caught between demands for support for military action from English Canada and a strong opposition from French Canada. Laurier eventually decided to send a volunteer force, rather than the
Canadian Militia as expected by Britain. Roughly 7,000 Canadian soldiers served in the force. Outspoken
French Canadian nationalist and Liberal MP
Henri Bourassa was an especially vocal opponent of any form of Canadian participation in the Boer War and thus resigned from the Liberal caucus in October 1899. On June 1, 1909, Laurier's government established the
Department of External Affairs for Canada to take greater control of its foreign policy. The
Anglo-German naval arms race escalated in the early years of the 20th century. The British government requested financial and material resources to assist in expanding the
Royal Navy, precipitating a heated political division in Canada. Many English Canadians wished to send as much as possible; many French Canadians and those against wished to send nothing. Aiming for compromise, Laurier advanced the
Naval Service Act of 1910 which created the
Royal Canadian Navy. The navy would initially consist of five
cruisers and six
destroyers; in times of crisis, it could be made subordinate to the British navy. However, the idea faced opposition in both English and French Canada, especially in Quebec where Bourassa organized an anti-Laurier force.
Alaska boundary dispute In 1897 and 1898, the
Alaska-Canada border emerged as a pressing issue. The
Klondike Gold Rush prompted Laurier to demand an all-Canadian route from the gold fields to a seaport. The region being a desirable place with lots of gold furthered Laurier's ambition of fixing an exact boundary. Laurier also wanted to establish who owned the
Lynn Canal and who controlled maritime access to the Yukon. Laurier and US President
William McKinley agreed to set up a joint Anglo-American commission that would study the differences and resolve
the dispute. However, this commission was unsuccessful and came to an abrupt end on February 20, 1899.
Tariffs and trade Though supportive of
free trade with the United States, Laurier did not pursue the idea because the American government refused to discuss the issue. Instead, he implemented a Liberal version of the Conservatives' nationalist and protectionist
National Policy by maintaining high tariffs on goods from other countries that restricted Canadian goods. However, he lowered tariffs to the same level as countries that admitted Canadian goods. In 1897, Laurier's government impelemented a preferential reduction of a tariff rate of 12.5 percent for countries that imported Canadian goods at a rate equivalent to the minimum Canadian charge; rates for countries that imposed a protective duty against Canada remained the same. For the most part, the policy was supported by those for free trade (due to the preferential reduction) and those against free trade (due to elements of the National Policy remaining in place). Also in 1907, Laurier's
minister of finance,
William Stevens Fielding, and
minister of marine and fisheries,
Louis-Philippe Brodeur, negotiated a trade agreement with France which lowered import duties on some goods. In 1909, Fielding negotiated an agreement to promote trade with the
British West Indies.
Election victories Laurier led the Liberal party to three re-elections in
1900,
1904, and
1908. In the 1900 and 1904 elections, the Liberals' popular vote and seat share increased whereas in the 1908 election, the party's popular vote and seat share went down slightly.
Quebec stronghold By the late 1800s, Laurier built up Quebec as a base for the Liberal Party. Quebec had been a Conservative stronghold for decades due to the province's
social conservatism and to the influence of the
Roman Catholic Church, which distrusted the Liberals'
anti-clericalism. The growing alienation of
French Canadians from the Conservative Party due to its links with anti-French, anti-Catholic
Orangemen in English Canada aided the Liberal Party. After the collapse of the
Conservative Party of Quebec, Laurier built a stronghold in French Canada and among Catholics across Canada. However, Catholic priests in Quebec repeatedly warned their parishioners not to vote for Liberals. Their slogan was "" ("heaven is blue, hell is red", referring to the Conservative and Liberal parties' traditional colours).
Reciprocity and defeat In 1911, controversy arose regarding Laurier's support of trade
reciprocity with the United States. His long-serving minister of finance,
William Stevens Fielding, reached an agreement allowing for the free trade of natural products. The agreement would also lower
tariffs. This had the strong support of agricultural interests, particularly in Western Canada, but it alienated many businessmen who formed a significant part of the Liberal base, many whom shifted their support to the
Conservatives. Official Opposition leader
Robert Laird Borden and the Conservatives denounced the deal and played on long-standing fears that reciprocity could eventually lead to weakened ties with Britain and a Canadian economy dominated by the United States. They also campaigned on fears that this would lead to the Canadian identity being taken away by the US and the American annexation of Canada. Laurier's government was unable to pass the reciprocity agreement due to an unruly caucus within the House of Commons, led by vocal disapproval from Liberal MP
Clifford Sifton. Laurier called
an election to settle the issue of reciprocity. The Conservatives were victorious and the Liberals lost over a third of their seats. The Conservatives' leader, Borden, succeeded Laurier as prime minister. Over 15 consecutive years of Liberal rule ended. ==Opposition and war (1911–1919)==