for these reasons and others, the colonies of nova scotia, new brunswick and the two canadas agreed to merge into one dominion in 1867. while in name it was a confederation, the new constitution, the british north america act outlined a strongly centralized federation. the federal government had control of most of the taxation power, and was responsible for the largest expenditures, railroads, canals and the military. the provinces were given exclusive jurisdiction over what at the time seemed merely local or minor matters such as health care and education. the pledge to build the intercolonial railway of canada linking the maritimes to quebec and ontario was finally realized in the 1870s.