Confederation and the National Policy
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Questions and Answers

Ontario Hydro Electric Power Commission was formed as the world’s first publicly owned ______.

power authority

By 1914, Canada experienced an economic slowdown partly due to dropping wheat yields caused by ______.

drought

In 1876, British Columbia introduced a personal ______ tax.

income

The Trades and Labour Congress of Canada (TLC) replaced the Knights of Labor in ______.

<p>1886</p> Signup and view all the answers

By the end of the war, domestic bonds had raised $______ billion.

<p>2</p> Signup and view all the answers

The Finance Act of 1914 allowed increased banknote issuance and took Canada off the ______ standard.

<p>gold</p> Signup and view all the answers

Labour shortages arose despite increased war ______.

<p>production</p> Signup and view all the answers

In 1916, Canada introduced a business ______ tax.

<p>profits</p> Signup and view all the answers

The ______ Pact signed in 1965 made vehicles and parts duty-free between Canada and the U.S.

<p>Auto</p> Signup and view all the answers

The Canada-U.S. Free Trade Agreement (FTA) was signed in ______.

<p>1989</p> Signup and view all the answers

In ______, Canada adopted its current national flag.

<p>1965</p> Signup and view all the answers

The discovery of residential school graves in ______ raised global awareness of Indigenous issues in Canada.

<p>2021</p> Signup and view all the answers

Same-sex marriage was legalized in Canada in ______.

<p>2005</p> Signup and view all the answers

Ottawa had the power to tax through both direct and indirect means, while provinces were limited to ______ taxation.

<p>direct</p> Signup and view all the answers

The Dominion Lands Act of 1872 offered settlers land at $10 for ______ acres.

<p>160</p> Signup and view all the answers

The Klondike Gold Rush in the 1890s led to significant population growth in the ______.

<p>Yukon</p> Signup and view all the answers

By the late 1870s, Canada adopted high ______ as a solution to economic slumps and bank failures.

<p>tariffs</p> Signup and view all the answers

Macdonald’s National Policy of 1879 aimed to protect domestic industry, construct a railway, and settle the ______.

<p>west</p> Signup and view all the answers

The construction of the Canadian Pacific Railway was crucial for connecting the ______ to the rest of the country.

<p>west</p> Signup and view all the answers

In 1870, Britain transferred the Hudson’s Bay Company lands to Canada, leading to the creation of the ______ Territories.

<p>Northwest</p> Signup and view all the answers

Tariff protection created an east-west trade pattern to support the economy through ______ traffic and tariff revenues.

<p>railway</p> Signup and view all the answers

Heavy debtloads worsened under ______ pressures.

<p>deflationary</p> Signup and view all the answers

Wheat was Canada’s largest ______ facing collapsing prices due to overproduction.

<p>export</p> Signup and view all the answers

The U.S. raised interest rates, causing global money supply ______.

<p>reductions</p> Signup and view all the answers

The global commodity gluts further depressed ______.

<p>prices</p> Signup and view all the answers

Bennett’s Conservatives enacted ______ hikes and public works projects.

<p>tariff</p> Signup and view all the answers

The unemployment rate over 20% in Canada disproportionately impacted ______-collar workers.

<p>blue</p> Signup and view all the answers

Relief camps for unemployed men offered ______ cents a day for labor.

<p>20</p> Signup and view all the answers

The ______ View emphasizes the banking system failures as root causes of the Depression.

<p>Austrian</p> Signup and view all the answers

Unionism increased under sympathetic government ______.

<p>policies</p> Signup and view all the answers

Rationing of food, gasoline, and imported goods like ______ occurred during wartime.

<p>sugar</p> Signup and view all the answers

Unemployment dropped to ______% as the economy improved.

<p>4</p> Signup and view all the answers

Heavy manufacturing, steel production, and aircraft building flourished, particularly in ______ Canada.

<p>Central</p> Signup and view all the answers

Goals of post-war planning included a smooth transition from war to peace without economic ______.

<p>shocks</p> Signup and view all the answers

The ______ Conference in 1944 established the International Monetary Fund.

<p>Bretton Woods</p> Signup and view all the answers

The St. Lawrence Seaway was established in ______, revolutionizing trade logistics.

<p>1954</p> Signup and view all the answers

The ______ Highway was a major post-war infrastructure project.

<p>Trans Canada</p> Signup and view all the answers

Canada's exports recovery began improving in ______, driven by U.S. stabilization.

<p>1932</p> Signup and view all the answers

The Treaty of ______ imposed harsh reparations and restrictions on Germany.

<p>Versailles</p> Signup and view all the answers

Hitler was appointed Reich Chancellor in ______.

<p>1933</p> Signup and view all the answers

The ______ Act gave the Canadian government control over wages, prices, industries, and strikes.

<p>War Measures</p> Signup and view all the answers

Canada officially declared war on Germany on ______.

<p>September 10, 1939</p> Signup and view all the answers

Hitler staged the invasion of ______ in 1939 to justify war.

<p>Poland</p> Signup and view all the answers

Labour shortages in Canada arose as more Canadians ______.

<p>enlisted</p> Signup and view all the answers

The ______ was introduced to finance the war, raising $9 billion through bonds.

<p>sale of bonds</p> Signup and view all the answers

Flashcards

Confederation's Fiscal Arrangements

Ottawa assumed provincial debts and provided annual grants, aiming for fiscal equity and economic growth among the provinces.

National Policy of 1879

Aimed at boosting Canadian industry, building the railway, and settling Western territories through tariffs, land grants, and immigration.

Economic Union Goal

The goal of Confederation was to create a unified Canadian economy, with equal opportunities despite limited geographic distances.

Canadian Pacific Railway (CPR)

A crucial railway connecting the East and West of Canada, significantly impacting trade and western settlement.

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Tariff Protection (National Policy)

To safeguard Canadian businesses, high tariffs were imposed to block foreign goods, boosting domestic production.

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Northwest Territories Creation

Britain transferred land to Canada, leading to a new territory (1870) and influencing Canada's growth.

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Manitoba's Provincehood

Manitoba became a Canadian province (1870) after Canadian acquisition of land, with protections for the Métis.

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Western Expansion Challenges

Early western expansion faced obstacles, with settlement areas sometimes far from transport routes.

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Ontario Hydro Electric Power Commission (1905)

The world's first public power authority, established in 1905 in Ontario, Canada.

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Pre-WWI economic slowdown

Reduced wheat yields due to drought, and job losses in railway-related sectors.

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Canadian WWI military involvement

20% of Canada's pre-war workforce joined the military.

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Increased Canadian exports in WWI

Canadian exports rose to 41% of GNP by 1917.

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Financing the war (domestic bonds)

Canada raised $2 billion through domestic bonds.

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WWI business profits tax

A business profits tax was introduced in 1916.

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Imperial Munitions Board (IMB)

An organization established to streamline war production in 1915.

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1914 Finance Act

This act allowed for increased banknote issuance and took Canada off the gold standard.

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Canada-US Auto Pact (1965)

Agreement that made vehicles and parts duty-free, boosting Canada's auto industry.

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1989 Canada-U.S. Free Trade Agreement (FTA)

Trade deal between Canada and the U.S., removing tariffs on goods.

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National Energy Program (NEP)

Canadian policy in 1970s-80s that aimed to control energy resources.

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Indigenous land rights movement

Indigenous groups demanding better treatment and control over land rights in Canada during the 1970s

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Marijuana legalization (2018)

Canada legalized recreational marijuana use in 2018.

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Canada's Great Depression Wheat Dependency

Wheat was Canada's top export. Overproduction and crop failures from droughts and dust storms led to collapsing wheat prices, hurting farmers and the economy.

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Gold Standard Impact

Fixed exchange rates connected nations to US monetary policy. US interest rate hikes reduced global money supply, depressing global commodity prices further.

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Protectionism during Depression

Countries raised tariffs which hurt international trade, especially for Canadian exports.

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US leaving the Gold Standard

In 1933, the US stopped using the gold standard, which helped stabilize their economy, leading to recovery for Canadian exports later that decade.

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Provincial Limitations (Depression)

Provinces were responsible for services like welfare and education, but lacked the resources and funding to address the economic crisis properly.

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Bennett's Conservative Policies

Bennett's government tried to aid through tariffs, public projects, and relief acts, but high deficits ultimately created issues.

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Keynesian Economic View

This view argued that a lack of total demand crippled the economy, suggesting government intervention like public works could fix it.

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Canadian Unemployment Rates

Unemployment soared over 20% in Canada during the depression, impacting blue-collar workers, men, and older individuals disproportionately.

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Wartime Economic Growth

Canada's economy boomed during World War II due to increased industrial output, specifically in manufacturing, steel, and aircraft production, as well as agricultural and resource sectors.

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Post-War Planning Goals

Post-war planning aimed to avoid economic shocks after the war and to improve societal systems. This included initiatives to support veterans and boost the economy.

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Bretton Woods Conference

A 1944 conference creating the International Monetary Fund (IMF) with a fixed exchange rate system pegged to the US dollar.

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Trans-Canada Highway

A major post-war infrastructure project boosting transportation and trade across Canada.

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GATT

Agreement signed in 1947, fostering international trade.

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1950s economic growth

Canada experienced economic growth in the 1950s driven by resource development (oil, gas) following discoveries and the Korean War.

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St. Lawrence Seaway

Established in 1954, significantly improved trade logistics across Canada.

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Baby Boom

A period of high birth rates after World War II, impacting housing, cars, and consumption trends.

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Canada's post-1932 export recovery

Canada's export sector started improving in 1932, boosted by stabilization in the US economy.

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Canada's economic vulnerability in 1930s

Canada's reliance on exports made it susceptible to US economic downturns, like the 1937 slump.

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Treaty of Versailles's impact on Germany

The Treaty of Versailles imposed harsh penalties on Germany, including reparations, territorial losses, and military restrictions, leading to economic instability and hyperinflation.

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Fascism's appeal in the 1930s

Fascism attracted support by opposing free markets and communism, promising militarism, nationalism, and centralized control.

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Hitler's rise to power

Hitler became Chancellor of Germany in 1933 and disregarded the Treaty of Versailles by rebuilding the military and re-occupying the Rhineland.

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War's start (1939)

The invasion of Poland in 1939 triggered World War II when Britain and France declared war on Germany.

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Canada's war declaration (1939)

Canada formally declared war on Germany on September 10, 1939, after initial hesitation.

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Economic impact of WWII on Canada

WWII spurred shifts in Canadian production, shifting efforts from civilian to military needs using government controls over industry, financed by war bonds and taxes.

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Study Notes

Confederation and the National Policy

  • Prior to Confederation, the Canadas (Ontario and Quebec) operated as a customs union with a common external tariff, but lacked a unified internal tariff.
  • Nova Scotia and New Brunswick favored free trade with the U.S., while the Canadas and Prince Edward Island opposed it.
  • The Maritimes were concerned about high tariffs in the Canadas and proposed alternative unions before joining.
  • Colonies experienced significant debt from canal and railway projects.
  • Britain's interest in defending the colonies decreased, while colonies desired to secure western territory.
  • Newfoundland's interest in Confederation was low, and Maritime merchants feared higher tariffs and neglect.
  • Central Canada was a driving force in Confederation, with businesses confident they could capture Maritime markets and develop the west.
  • Promises included a railway and the assumption of provincial debt by the federal government.
  • The British North America Act (BNA) established Canada, comprising Quebec and Ontario alongside Nova Scotia and New Brunswick.
  • Canada became a Dominion on July 1, 1867, led by Sir John A. Macdonald.
  • The BNA Act established a federal system of government with powers divided between federal and provincial governments.
  • Section 91 outlines federal powers, including trade, taxation, defense, currency, and criminal law.
  • Section 92 outlines provincial powers, including property rights, education, and direct taxation.
  • Section 95 grants concurrent jurisdiction over agriculture and immigration, while Section 132 gives Ottawa power over treaties.

Influences on the Early Canadian Economy

  • British precedents and Central Canada influenced early economic regulations.
  • Tariffs included duties on manufactured goods but reduced rates for Maritime provinces to appease them.
  • The Bank Act of 1871 granted banks the right to issue notes, establishing national branch banking.
  • Ottawa had direct and indirect tax powers, offsetting provincial debts through annual grants.
  • The goal was an economic union to balance fiscal equity and ensure economic development.
  • Britain transferred the Hudson's Bay Company lands to Canada, leading to the creation of the Northwest Territories and the province of Manitoba in 1870.
  • Manitoba's establishment addressed concerns raised by Louis Riel's armed uprising regarding Métis rights.
  • The Dominion Lands Act of 1872 offered settlers land, though transportation accessibility was a challenge.
  • British Columbia joined Confederation in 1871, with promises of east-west railway completion by 1885. The Klondike Gold Rush later increased Yukon's population.
  • Prince Edward Island joined in 1873.
  • The National Policy of 1879 aimed to protect domestic industries, build a railway, and facilitate western settlement.
  • Tariffs were implemented to protect domestic industries and facilitate railway construction, supporting an east-west trade pattern.
  • The Canadian Pacific Railway (CPR) was crucial for connecting the west, and Chinese laborers played a significant role.
  • The Canadian government encouraged western settlement via land grants, railway land, and school lands, attracting immigrants from Europe and the US.
  • By 1911, western Canada contributed significantly to Canada's wheat production.
  • The prairie wheat boom (1896-WWI) was characterized by lower transportation costs, increased capital, new technologies, and government support.
  • Wheat varieties like Marquis improved crop yields, making wheat a key economic driver in Canada by WWI.
  • The wheat industry interconnected Canada's economic regions.
  • Growing wheat demand spurred the development of machinery and services.
  • Federal grain policies favored domestic trade.

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Econ 2K03 PDF - Confederation and National Policy

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Explore the complexities of Canadian Confederation and the National Policy. This quiz covers the economic concerns, regional interests, and political dynamics that shaped the unification of the Canadas, New Brunswick, and Nova Scotia. Test your knowledge on the historical context and decisions influencing Canada's journey towards Confederation.

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