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Lecture 4

History 2125F/G Lecture Notes - Lecture 4: Donald Mann, Northern Ontario, Price Fixing

Course Code
HIS 2125F/G
Peter Krats

of 3
HIST 2125f National Policy: Lecture 4 September 27, 2012
National Policy
- Creating Canada (BNA Act)
o Names Ottawa the capital
- Bank Act of 1871
o Government controls currency, continues/expands “centralized” banking (few
firms/many branches)
o Prohibits foreign ownership of banks
o Strong regulation of banks and bank charters
o Dominion Note Act of 1970 says government paper if less than $4.00 and private
currency ends in 1930
- Physical Expansion
o 1867 still small, our motto is “from sea to sea”
o First step: seize lands from First Nations and Metis and when they complain, they hoped
to use force to push them to the Pacific
o Rail: close the Eastern “Gap”
First rail built was intercolonial railroad, public sector railway
For British Columbia to join, were promised a railway built to join them to rest
of Canada so 1871, they agreed and signed
CPR: N.P. rich contract (huge amount of money at time)
25 million was contract won by Montreal company, sales land, tax breaks, 25
years no Western competition was promised, east railways
Last spike put in place 1885
City of Vancouver grows quickly with introduction of railroad
o Wanted to build two more railways
o 1890s William MacKenzie and Donald Mann bought rights to one railway, borrowed
enough money to buy small length of rail, went to government and proposed a national
o Government to keep Quebec City happy created railway from Manitoba to east
(public) and Prince Rupert made private railway from Manitoba West
o Boom in Prairies, Maritimes, Northern Ontario
o Well-funded by the government (45% of government expenditures) plus a good majority
of economic development and debt (which were all directed to railways)
- Controlling the West
o A government-ordered taking of the land (checkerboard style)
o For settlers to expand farms, were given free plot but had to buy next plot because they
were staggered/surrounded by owned land
o Started advertising land and homes for Europeans to come live in Canada; the “last best
west” with homes for millions
o Immigration to Canada immense
o Needed at least $300 to be able to establish themselves out west; half would arrive but
not rich enough so they can’t settle; forced into cheap labour
- New Staple created, new farm frontier farm equipment
HIST 2125f National Policy: Lecture 4 September 27, 2012
o From 1850 to 1890: labour per acre cut about 50%; less need for agricultural help
more cheap labour
o Winnipeg becomes essential city
- Transportation
Beyond Western Settlement: a great transformation?
- “Protecting the Economy”
o Older resources protected and take advantage of new resource boom
o Help us go from manufacturing to industrialization
o Trying to move beyond logs, the “manufacturing condition” (Canada only benefitting
from workers’ wages of those cutting down trees because US were taking them all back
to their country where all profits went to them)
o New resources: pulp and paper (staple on industrial scale), coal, cobalt, mining
becoming increasingly industrial
o New wealth from nature: oil springs; oil companies established
o New science gives us new staples (some overlap, such as minerals)
o Niagara Falls a source of power, beginning in 1907, hydroelectric turbines generate
millions of horsepower
o Exporting heavily to USA, still lots to Great Britain
Toward Industrialization
- Land- sufficient staples; ready power resources
- Transportation infrastructure
- Sufficient investment
- Large pool of cheap labour
- Protection for home industry (tariffs)
- Tariffs celebrated by Canadian Manufacture to protect Canadians profit from American
- Larger operations
o Food processing
o Retails modern forms
o Securing bigger firms: limited liability, price fixing, mergers, elite control
- Toronto has national goals
o Eatons is “Canada’s Store”
- Tariff at work? The Auto Sector
o American companies could choose to pay 35% tariff OR buy Canadian company
o Henry Ford created branch plants
o If you could sell to Canada, could easily sell to British Empire as well
o Canadian companies that got into building cars revert to old manufacturing product or
go bankrupt
Not a national result?
- Largely southern Ontario; most gains between Montreal and Windsor
- Montreal grows, big works, belching money
- Toronto manufacturing, clothing
HIST 2125f National Policy: Lecture 4 September 27, 2012
- Bank assets in Montreal and Toronto
Therefore, people in west and Maritimes feel that they feed the national policy, Toronto, Ottawa, and
Montreal get the goods, and the Maritimes get very little
- Going into debt every year to create railways, creating tariffs to limit manufacturing to Canadian