At the time of the American Civil War, Canada did not yet exist as a federated nation. Instead, British North America consisted of the Province of Canada (parts of modern southern Ontario and southern Quebec) and the separate colonies of Newfoundland, New Brunswick, Prince Edward Island, Nova Scotia, British Columbia and Vancouver Island, as well as a crown territory administered by the Hudson's Bay Company called Rupert's Land. Britain and its colonies were officially neutral for the duration of the war. Despite this, tensions between Britain and the United States were high due to incidents on the seas, such as the Trent Affair and the Confederate commissioning of the CSS Alabama from Britain.
Canadians were largely opposed to slavery, the preservation of which was the main goal of the Confederate States of America, and Canada had recently become the terminus of the Underground Railroad. Close economic and cultural links across the long border also encouraged Canadian sympathy towards the Union. Between 33,000 and 55,000 men from British North America enlisted in the war, almost all of them fighting for Union forces. The conservative press in Canada East supported the secession and ridiculed the Yankees as lacking in morality. There was talk in London in 1861–62 of mediating the war or recognizing the Confederacy. Washington warned this meant war, and London feared Canada would quickly be seized by the North.