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Lecture 5

History 2125F/G Lecture Notes - Lecture 5: Laurier Liberals, Include Directive, Scientific Management


Department
History
Course Code
HIS 2125F/G
Professor
Peter Krats
Lecture
5

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NEW NATION -- NEW BUSINESS ?
THE NATIONAL POLICY &
CANADIAN BUSINESS
Canada In Its First Decade -- The Setting:
3.5 million persons
Population about 80 % rural // 20 % urban
"rough" society // few if any legal protections for women, labour, those deemed
"others"
virtually no "welfare state" - only miserly private aid to absolutely helpless
education facilities tiny; education levels very low
localized, simple lives linked by a vaguely phrased Act of the British parliament
[BNA Act]
Nation Building And National Policy
how to meld these separate elements into a "nation" ? policies collectively termed
NATIONAL POLICY -- dealt with here in its broadest possible "reading"
CONSIDERING THE POLICIES (snapshots)
1. "Creating Canada" -- British North America Act
i) Federal govt holds residual powers for "peace, order and good government"
ii) Provinces: powers in areas "of a merely local or private nature" (education,
health, social welfare)
iii) Financial Arrangements / Bank Act
a] Federal government revenues via any mode of taxation [direct/indirect]
b] Provinces can only tax directly or sell/lease natural resources
National Policy in Outline :

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1. Physical Expansion -- motto "A Mari Usque Ad Mare" (from sea to sea) not yet true
-- revealed optimism & expansive thinking
2. "Reaching Sea to sea" - Government $$ for more and more Railways
3. "Filling the New Lands" - Immigration Policy
4. Financial / Commercial strategies
i) the 1871 Bank Act - creating a national economy - the Act set
conditions that virtually precluded small, local banks, instead
encouraging large "national" institutions
ii) more significant : Protective Tariffs seeking “Import Substitution
Industrialization”
************************
The National Policy at Work: Toward The "Great Transformation"
NATIONAL POLICY shapred Canadian policy from 1870s to 1930s
built momentum from the 1870s:
1. manufacturing rose from 19.5 % of the GNP (1870) to 24.5 % (1890)
2. the industrial workforce essentially doubled between 1871 & 1891
3. Economic output also rose sharply:
Year
Production
Value
Value Added by Manufacture
1871
Primary
$ 90 million
$ 22 million
1891
Primary
$ 150 "
$ 52 "
1871
Secondary
$ 145 "
$ 75 "
1891
Secondary
$ 310 "
$ 155 "
Growth areas to 1890s included:
1. Agricultural: meat packing, butter-cheese; implements
2. Transport : railway equipment
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