ADMS 1010 Chapter Notes -North West Company, Simon Mctavish, William Mcgillivray

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Published on 12 Apr 2013
School
York University
Department
Administrative Studies
Course
ADMS 1010
Professor
Page:
of 5
PART ONE
Laying the Foundations, 18501905
Introduction
Mid-19thc British North America
- United Province of Canada (Canada East and Canada West, modern-day Quebec and Ontario)
- Nova Scotia
- New Brunswick
- Prince Edward Island
- Newfoundland
- Vancouver Island
- interior of the northern part of BNA contained three territories: Rupert’s Land (largest and owned by the
Hudson’s Bay Company), North-West Territory, New Caledonia
Dominion of Canada
- Canadas, Nova Scotia, and New Brunswick
- acquired Rupert’s Land from the HBC in 1869
- ‘a great colony of the British Empire’ and was well on its way to becoming a nation by the early
twentieth century
- GDP/capita more than doubled between the mid-nineteenth and the early twentieth century, making it
the 10th-richest nation in the world: blend of public policy, a sound financial system, energetic
entrepreneurship, and the emergence of large non-financial corporations
STERN DIAMOND
ENABLING POLITICAL SYSTEMS
PUBLIC POLICY
BNA Act of 1867
- created the Dominion of Canada
- allocated responsibility between the federal and provincial authorities, giving the federal government
jurisdiction over areas such as regulation of commerce, currency, and banking as well as life insurance
- provisions relating to an intercolonial railway and to Rupert’s Land
National Policy
- settlement of the west
- building of a transcontinental railway
- adoption of a protective tariff (influenced both by the history of trade and by American policy)
- tariffs were raised to 35 per cent on manufactured imports
- protective tariff resulted in significant American investment in Canada as American corporations set up
branch plants to avoid the tariff wall
TRADE
1854 reciprocity treaty in natural, unprocessed goods with US
1860 protectionist US Republicans abrogated reciprocity
1897 imperial preference with Britain and its colonies
Reduced Tariffs within Canada
1. creation of Dominion of Canada
2. former Province of Canada agreed to reduce its tariffs to bring them closer into line with those in the
Maritime provinces
EFFECTIVE FINANCIAL SYSTEMS
Aspects of sound financial system:
1. Federal government’s jurisdiction over commerce, currency, banking, and insurance
avoided the quarrels between centralists and decentralists that occurred in US
2. Bank Act of 1871
ensured a sound currency and a nationally regulated banking system
required decennial revisions to determine whether it was still suitable and applicable to changing
times
3. 1875 - superintendent of insurance was appointed
4. 1870s - stock exchanges were incorporated in both Montreal and Toronto
5. 1890s - mining exchanges were formed in Toronto that merged into a single exchange (Standard Stock
and Mining Exchange)
consolidation - the number of banks with head offices in the Maritimes was reduced, and the concentration of
financial power in Montreal and Toronto became particularly pronounced.
Financial centre of Canada shift from Montreal to Toronto
mortgage loan companies
- second largest financial intermediary class since chartered banks were not allowed to lend money for
real property purchases (because the government believed the risks were too great)
life insurance companies
- deemed sufficiently important that the government appointed a superintendent of insurance to oversee
the industry in 1875
- regulations were changed to permit life insurance companies to invest in the burgeoning Canadian utility
industry in 1899 (liberated hundreds of millions of dollars for investing in this emerging sector with its
huge needs for capital)
By the early twentieth century, Canada had both a
legislative framework for a sound financial system and a
healthy number of financial corporations in operation
Both were necessary in meeting the demands for capital that entrepreneurs and growing corporations required to
carry on their activities.
VIBRANT ENTREPRENEURSHIP
Pierre-Esprit Radisson and Médard Chouart des Groseilliers
- helped establish the Hudson’s Bay Company
Simon McTavish and William McGillivray
- Montreal-based Scottish entrepreneurs who rebelled against the HBC’s monopoly and created a number
of fur-trading partnershipsincluding the North West Company, HBC’s major rival prior to the 1821
merger of the two companies
John Molson beer
Samuel Cunard and Hugh Allan shipping
Stephen and Donald Smith Bank of Montreal, Canadian Pacific Railway (CPR), and HBC
Hart Massey and Alanson Harris farm machinery
George Gooderham and Hiram Walker distilling
Timothy Eaton and Robert Simpson retail
William Mackenzie, Henry Pellatt, Frederic Nicholls, and James Ross railways and public utilities
William Neilson ice cream
SOPHISTICATED MANAGERIAL CAPABILITIES
LARGE NON-FINANCIAL CORPORATIONS
Agriculture - dominant role in the economy and was by far the largest employer in mid-nineteenth-century
British investors Grand Trunk Railway (GTR) and the HBC

Document Summary

United province of canada (canada east and canada west, modern-day quebec and ontario) Vancouver island interior of the northern part of bna contained three territories: rupert"s land (largest and owned by the. Canadas, nova scotia, and new brunswick acquired rupert"s land from the hbc in 1869. A great colony of the british empire" and was well on its way to becoming a nation by the early twentieth century. Gdp/capita more than doubled between the mid-nineteenth and the early twentieth century, making it the 10th-richest nation in the world: blend of public policy, a sound financial system, energetic entrepreneurship, and the emergence of large non-financial corporations. Bna act of 1867 created the dominion of canada allocated responsibility between the federal and provincial authorities, giving the federal government jurisdiction over areas such as regulation of commerce, currency, and banking as well as life insurance. Provisions relating to an intercolonial railway and to rupert"s land.