Note 204 — Chapter V · LORD DORCHESTER AND THE CANADA ACT OF 1791

The above statement represents the general effect and intent of the Act, but a long and complicated controversy arose subsequently as to the disposal of the taxes raised under the Imperial Act of 1774 (14 Geo. III, cap. 88), ‘to establish a fund towards further defraying the charges of the Administration of Justice and support of the Civil Government within the Province of Quebec in America.’ It was contended that the effect of the Declaratory Act of 1778, together with the Constitution Act of 1791, was to hand over the proceeds of these taxes to be disposed of by the provincial legislatures. The contention had no real basis, and the Law officers of the Crown reported it to be unfounded, but eventually, by an Act of 1831 (1 and 2 Will. IV, cap. 23), the legislatures of the two Canadas were empowered to appropriate the revenues in question.