Alexander Mackenzie becomes second Prime Minister of Canada

Background. The Pacific Scandal involved allegations that private interests paid large sums to the Conservative Party to influence railway bidding. This scandal weakened Macdonald's control over Parliament, leading to his resignation in November 1873. Mackenzie, who had become Liberal leader in mid-1873, was called upon by Governor General Lord Dufferin to form a new government.

Government Formation. Mackenzie formed a government and requested an election for January 1874. His administration faced the economic aftermath of the Panic of 1873, which limited progress on the transcontinental railway. Despite these challenges, Mackenzie's government achieved a remarkable record of reform legislation, including the establishment of the Supreme Court and the Royal Military College.

Legacy. Mackenzie remained Prime Minister until the 1878 election, when Macdonald's Conservatives returned to power. He was the first Liberal Prime Minister and the only one of Canada's first eight not to be knighted, refusing the offer three times due to his democratic ideals. His term was marked by economic depression that his government could not alleviate.