At the onset of Confederation in 1867, political planners in Canada and Great Britain realized that Canada had substantial maritime interests to protect. Boasting the fourth largest Merchant Marine in the world, and deriving the majority of its foreign capital through maritime trading should have been enough to persuade the Canadian government of the strategic importance of the seas. Adding the fact that Canada was one of the great shipbuilding and ship-owning countries of the world, and it soon made the need for maritime protection obvious.Milner (1999), p. 5.

For Britain's Royal Navy, the Canadian merchant fleet represented a ready supply of vessels that could have been converted to auxiliary warships, with some help to procure the necessary armament should a crisis arise. Soon enough, though, sail gave way to steam, and Canada's mercantile fleet became inadequate to complement the British Navy. The British Parliament had passed the Colonial Naval Defence Act 1865, which enabled colonies to establish and maintain naval forces for foreign defence in the European theatre.Tucker (1952), p. 33. Canada's maritime interests needed to be safeguarded, and Britain wanted Canada to assume its fair share.

First tentative steps In 1878, Governor General Lord Dufferin stated in a dispatch to the Colonial Secretary (likely Michael Hicks Beach, 1st Earl St Aldwyn) that the government of Prime Minister John A. Macdonald 'would not be adverse to instituting a ship for training purposes if the Imperial Government would provide the ship'.Appleton (1969), p. 73. Thus began the first attempt to start a Canadian Navy with the allocation of the old wooden steam-auxiliary corvette in July 1881. This ship, acquired with the intent to train a Marine Militia provided for in the Militia Act of 1868, achieved notoriety when she broke her moorings in Saint John harbour and caused severe damage to the merchant vessels anchored in proximity. Her poor condition was also responsible for the death of two civilians who drowned in the harbour after falling through her rotten gangway.

As a result of the War of 1812 and the American War for Independence in 1775, the defensive focus in Canada was focused on the land forces and leaving the naval service to Britain. This made naval service less of a priority for the Dominion. Charybdis was the product of a shift in domestic policy stemming from a host of grievances the young Dominion of Canada had towards the British Empire's handling of its foreign affairs. The United States still represented Canada's surest enemy in the late 19th century, but Britain's attitude became more frequently one of laissez-faire towards that fast emerging economic and military giant. Canada often felt cheated when, militarily still dependent on the Empire, it failed to see conflicts resolved to satisfaction. One example was the imperial government's unwillingness to apprehend and prosecute American poachers contravening the fisheries articles of the Anglo-American Treaty of Washington of 1871,Hadley & Roger (1991), p. 7. and risk a quarrel with the US on behalf of the Dominion.

Another event that led to the acquisition of the training vessel was the looming crisis between Britain and the Russian Empire over the Russo-Turkish War of 1877–78. That predicament, which caused Britain to re-distribute its naval assets, demonstrated the relative vulnerability of Canada's Atlantic seaboard. Although this crisis was soon averted with the signing of the Treaty of Berlin, Canada still held on to the idea of making preparations for naval defence.Tucker (1952), p. 62. Public opinion of Charybdis in the years of her service to Canada labelled her a white elephant, with the population wondering what her purpose would be. The MP for Huron South Malcolm Colin Cameron made a motion in the House of Commons that she must be returned to the Royal Navy, an unfortunate solution that soon ensued. That this first attempt at building a Canadian Navy ended in a fiasco did not terribly bother the British one; the official position was that the Imperial Fleet should be as indivisible as the seas themselves.Morton (1985), p. 125.

Birth of the Canadian Navy

Since the British conquest of New France in 1763 and the establishment of the other colonies that would eventually form the Dominion of Canada, Britain and its taxpayers had assumed sole financial responsibility for the defence of the colonies. This was never debated since Canada and the other British colonies afforded Britain with secure supplies of natural resources and ready markets for finished products. The extent to which Britain was dependent on foreign trade for its survival is thus illustrated:McNeil (2000–2001), p. 12.

At the turn of the twentieth century, the rise of the Imperial German Navy under Kaiser Wilhelm II threatened to challenge Britain for supremacy of all maritime trade routes. Britain, feeling pressure to modernize and expand its already considerable fleet, asked that the former colonies assume a larger responsibility for the defence of the empire.Cook (1997), p. 404. The preferred choice of the Imperial government for the protection of the empire was the maintenance of a common military system, sustained by direct financial contributions from the former colonies. In return, the British Admiralty would be left responsible to defend Canada's coasts.

The Liberal cabinet of Prime Minister Sir Wilfrid Laurier had other plans in mind. At the Imperial Conference of 1902, Laurier refused direct contributions to the maintenance of the British fleet, and instead pushed for the development of a local navy under the Department of Marine and Fisheries.Milner (1999), p. 11. It was felt that Canadians providing the defence of their homeland was a more ambitious plan, and would directly contribute toward the collective security of the Empire. A strong sentiment of the day stated that Canada had no business sending soldiers for the Empire when it had no voice in imperial decisions.Morton (1985), p. 114.

When the British government announced in 1904 its intentions to abandon the Halifax and Esquimalt Dockyards by 1906, Laurier saw another compelling reason for the formation of Canada's naval service. The Dominion had the opportunity to avail itself of an existing infrastructure towards the maintenance of its own fleet. Strong feelings of discontent towards Britain were also felt because of the resolution of the Alaska boundary dispute, which saw Britain's representative side with the United States in 1903.Hadley & Roger (1991), p. 15. A precedent was set in 1906 when Australia received grudging approval to raise its own navy, although Britain still viewed the burgeoning Royal Australian Navy (RAN) as a local squadron of its own force.

Beginning In order to assert Canadian territorial sovereignty and curb American illegal fishing in territorial waters, the government had reactivated the Fisheries Protection Service in 1886. This was established under the auspices of the Department of Marine and Fisheries. The largest federal department by 1902, it was responsible for all affairs maritime from regulations to arctic sovereignty. The department had acquired since 1891 a force of eight armed cruisers, six icebreakers, and nearly twenty other vessels. The Fisheries Protection Service, were it militarised, would present a substantial start to a new national naval service. Raymond Préfontaine, the minister responsible, acted toward that end on orders from Laurier. Two ships were ordered for the Fisheries Protection Service in 1904 with the purpose of starting cadet training for the impending Canadian navy: Canadian Government Ships (CGS) and , for the east and west coasts respectively. CGS Canada was a 910-tonne steamship built to the naval specifications in 1903–1904. The naval legislation drafted by Préfontaine stated that these ships would form the nucleus of training for the Naval Militia. In Laurier's government there was proposal to establish a naval militia in Canada. As a result, Britain encouraged the Dominion for contributions to the arms race in Europe.

After the death of Préfontaine in 1905, Laurier appointed Louis-Philippe Brodeur as minister. Brodeur had the arduous task of re-organizing his department after a report by the Royal Commission on the Civil Service stated that its administration was characterized by "constant blundering and confusion", "with no visible sign of an intelligence purpose unless it be that of spending as much money as possible".Hadley & Roger (1991), p. 18. In order to investigate his department, Brodeur called for a Special Commission; on 1 April 1908 the Cassels Commission was formed.Brodeur (1982), p. 22.

As a result of the Cassels Commission, Brodeur instilled key changes to his department. George S. Desbarats replaced François Gaudreau as deputy minister.Brodeur (1982), p. 23. For Director of the Marine Service, Brodeur chose a Canadian who had served in the Royal Navy since 1869, Rear-Admiral (later Admiral Sir) Charles Kingsmill.Milner (1999), p. 23. Kingsmill replaced former Lieutenant Osprey George Valentine Spain, an inept administrator who had left the British naval forces "under a cloud which still makes it impossible for him to go aboard a British man-of-war".

As director, Kingsmill commanded the Marine and Fisheries fleet from 1908 to 1910. He subsequently served as the director of the Naval Service of Canada until his retirement in 1920. He received a knighthood in 1918.

After instilling these changes, Laurier believed he would get the unanimous support of parliament for his plans to militarise the Fisheries Protection Service into a navy proper. He especially hoped that the appointment of the francophones Brodeur and Desbarats as minister and deputy minister would appease the Canadiens in Quebec.

Laurier's two alternatives The British government was advised that Britain was losing the naval arms race against Germany. This shocking revelation, made on 16 March 1909, spread panic throughout the empire and led to several offers of funds for the construction of dreadnoughts from New Zealand and several Australian states' governments. Pressure was exerted by the Canadian imperialists to follow suit. This crisis changed the Canadian Navy question from a local issue to one encompassing the naval defence of the whole empire. The ensuing resolution was presented to the House of Commons by the one-time minister of Marine and Fisheries conservative MP Sir George Foster from New Brunswick and stated: "That in the opinion of this House, in view of her great and varied resources, of her geographical position and natural environments, and of that spirit of self-help and self-respect which alone benefits a strong and growing people, Canada should no longer delay in assuming her proper share of the responsibility and financial burden incident to suitable protection of her exposed coastline and great seaports."Tucker (1952), p. 122.

The two options were the establishment of the Canadian Navy or continued financial support of the one in Britain. The former became the position generally supported in the House. As the debate ensued, it became clear that Laurier's scheme of militarizing the Fisheries Protection Service was inadequate and would not garner unanimous support. The amended proposal was that of a small navy, given that "The House will cordially approve of any necessary expenditure designed to promote the speedy organization of a Canadian naval service".Tucker (1952), p. 127.