Quebec City is the capital of the associated confederation of Quebec. The city was founded by Samuel de Champlain in 1608, and served as the capital of New France and the base for many raids against New England during the various wars between France and Great Britain between 1690 and 1763. During the Seven Years' War of 1754 - 1763, Quebec City was conquered by the British in September 1759. By the terms of the Treaty of Paris, France ceded Canada to the British, who organized it into the Province of Quebec.
During the North American Rebellion, the rebellious colonists sent an army under General Richard Montgomery and Colonel Benedict Arnold in the fall of 1775 to attempt to conquer Quebec. However, they were unable to take Quebec City during an attack on 31 December, and were forced to retreat before the army of General Sir Guy Carleton in the early months of 1776.
Following the defeat of the Rebellion in 1778, the Britannic Design was created by Parliament to serve as an instrument of government for British North America. Under Carleton's influence, Quebec was incorporated into the Design, with Manitoba and Indiana being split off to form their own confederations. Quebec City remained the capital of the reduced Confederation of Quebec, and Carleton was sworn in there as Governor-General of the confederation on 2 July 1782.
A group of Quebec's wealthiest citizens centered in Quebec City formed the confederation's Liberal Party in 1811. The Liberals sought to make Quebec a center of industrialization and commerce, and sought closer ties with bankers and merchants in London and New York City. The Liberals were opposed by both the Conservative Party, based in Montreal, and the Free Quebec Party.
Following the Panic of 1836, Louis Papineau formed a resistance group called the Patriotes which sought a complete separation from the Confederation of North America. On 21 September 1839, Papineau led an army of 3,800 men against Quebec City. After they entered the city, Papineau's army was destroyed by a force led by Governor Henry Scott, and Papineau was killed.
Quebec City remained the capital of Quebec after the confederation voted to accept associated status in the Quebec Plebiscite of 6 July 1889.
After passage of Governor-General Douglas Watson's reform of the National Financial Administration in 1930, a local branch of the N.F.A. was established in Quebec City. The local branch was independently financed, and was designed to serve the needs of people of Quebec. In the Panic of 1936, the Quebec City N.F.A. suffered bankruptcy on 16 March.