The village of Cardinal was founded by Captain Hugh Munro in the late 1700s. Many unfortunate events in Munro's life led to his settlement in Cardinal. After the death of his Major, Munro was held responsible for large debts incurred by supplying the soldiers with necessities. After joining the Loyalists, Munro was injured in the American Revolutionary War and saddled with more debt after supplying troops out of pocket. Munro petitioned the government for compensation, and it is believed he was granted the land in present-day Cardinal as a result. The land at Cardinal had much potential in the 1700s due to the adjacent river and the construction of Ontario Highway 2 through the village in 1790. The river provided a means of transportation and power while the highway led to increased traffic to the area, as it was the primary route between Montreal and Kingston. By 1794, Munro had constructed a saw and grist mill which the community subsequently grew around.