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But the immediate problem was that of union. In November 1839 Thomson called together the Special Council of the province and submitted his proposals of union. Despite the opposition of John Neilson, resolutions approving the basis of union were passed. The council’s terms included the provision for a permanent civil list, the preservation of the constitutional rights of the two provinces and the improvement of the St Lawrence by the united efforts of the provinces. The complete change in the conduct of Neilson was a result of the excesses of the rebellion. In the early years of the reform movement he had been its prophet. But the conduct of Papineau and his compatriots had shaken Neilson’s confidence in responsible government. His support had been based on theoretical considerations, which the practical issue demonstrated to be groundless. Immediately preceding the rebellion and during its progress he had acted with the moderate British constitutionalists. But he was gradually moving towards conservatism, and his opposition to the union proposals was based, not on union itself, but on the consequent introduction of responsible government—the principle for which he had formerly contended.

Thomson’s next move was to get Upper Canada in line for union, and accordingly he set out to meet the assembly which was called for December 3. Under the influence of the Compact party, and, supposedly, in the interests of British connection, Sir George Arthur had taken a strong position in opposition both to the union and to the introduction of responsible government. A very embarrassing situation was now created. If the lieutenant-governor were to be of practical assistance to Thomson in carrying out the policy of the British government, he must be prepared to act in contradiction to his past declarations. Arthur realized fully the force of the situation, and, after making a frank confession to Thomson, requested that he be not required to stultify himself by too glaring inconsistencies.

The situation in Upper Canada was in many respects more serious than in Lower Canada. The province was hopelessly divided into factions. Financial and commercial depression aggravated the prevalent discontent, and the benefit of British connection was seriously questioned. The province was insolvent and witnessed an annual deficit in excess of the income. ‘From all that I can hear or see, I would not give a year’s purchase for our hold of it, if some great stroke is not given which shall turn men’s thoughts from the channel in which they now run, and give a fresh impetus to public works, immigration, and the practical improvement of the country’s resources.’ The salvation of Upper Canada in Thomson’s view depended on union.

In presenting the scheme of union to the assembly of Upper Canada, its terms were for the first time definitely stated. In order to secure British dominance in the united legislature, the province was granted a representation equal to that of Lower Canada. The stability of the executive government and the independence of the judges were to be secured by a permanent civil list. The debt incurred by Upper Canada on public improvements was to be assumed by the united provinces. The contest over the bill resolved itself into a struggle between Thomson and the Compact party. The governor was certain of the support of the reformers, and the influence of his powers of persuasion brought to his side many of the erstwhile moderate opponents of union. By a substantial majority the union proposals were sanctioned by both the council and assembly.

The looseness of party structure in Upper Canada compelled Thomson to take an active part in the union struggle and consolidate the floating factions of reform into a definite union party. He was compelled to become his own prime minister and assume the leadership of a political party. No other course was open to him. Sir George Arthur had destroyed his own usefulness as an advocate of union and was glad to be excused from any connection with the issue. But the strange spectacle was presented of the virtual prime minister being opposed by his own attorney-general. The opposition to the union proposals in the assembly had in fact been led by Hagerman. Nothing could better demonstrate the necessity of a complete change before responsible government could be introduced. Thomson was impressed with the anomaly of the situation, and condoned such subversive principles only on the ground of the restraint which their previous conduct in opposition to union had placed upon the officers of government. From this time, however, Thomson began to organize his council on such a basis as would permit its conversion into a cabinet under a system of responsible government. Hagerman was appointed to the bench, Solicitor-General Draper succeeded him as attorney-general, and Robert Baldwin, the leader of the reform party, became solicitor-general.