This Article is an attempt to reopen the question of the role of government in the economic life of Upper Canada before 1840. It stems from certain problems encountered in connection with a history of the Welland Canal Company, and material relating to the Welland Canal and to the career of William Hamilton Merritt, its promoter, will be used to illustrate the argument. The central problem to which we shall address ourselves is, quite simply: what difference did the political and social state of Upper Canada in this period make to the way in which the Welland Canal Company was founded and managed?
The general outlines of Upper Canada's political organization and social structure will already be familiar to most readers. Other historians have dealt more than adequately with such matters as the origin of the dominant élite which we know as the Family Compact, the slow development of the idea of responsible or parliamentary government, and the aims, grievances, and methods of the colonial reformers. It is to be regretted that our knowledge of Upper Canada's economic development in this period is less detailed, but the main features are clear enough for present purposes.
The few attempts that have been made to analyse the interaction of economic, political, and social factors in the history of Upper Canada, particularly in connection with the rebellion of 1837, suggest the fruitfulness of such an approach. The present essay is to be taken as a case-study in this type of analysis.