79 
HISTORY OF CANADA, LoHAP. 
perity, which had been increasing for some years, suddenly 
ceased ; merchants became insolvent ; the banks refused 
to pay coin, and even refused to pay their own notes. 
The two provinces were affected by this crisis, and in 
Lower Canada the banks followed the example of those in 
the United States. But in Upper Canada they pursued & 
different course, redeemed their notes, contracted their 
business, and boldly met the ‘hard times.” Sir Francis 
at once assembled Parliament to take into consideration 
the condition of the country, and although many advised 
that their banks should pursue the same course as those 
in Lower Canada, the Governor thought not, and the 
House supporting his view of the matter, allowed the 
banks to continue as they had begun. "The storm was 
weathered, and the good name of the province maintained. 
19. The population of Upper Canada was, at this time, 
about three hundred and ninety thousand. During the 
year letters passed between Papineau and Mackenzie, and 
both continued their appeals to the people to throw off 
their allegiance to Great Britain, and seek independence. 
They found much syımpathy for their scheme, although 
the greater part of the people sided with loyalty and 
order,