The Thirties: A Decade of Despair PDF

Chapter04 11/05/2004 8:52 AM Page 74 4 The Thirties: A Decade of Despair FOCUS ON What was the federal government’s immediate response to the...

Chapter04 11/05/2004 8:52 AM Page 74 4 The Thirties: A Decade of Despair FOCUS ON What was the federal government’s immediate response to the economic crisis of the 1930s? Which parts of Canada suffered most from the Depression? What remedies did the federal and provincial governments use to try to deal with the Depression? What were the programs of new political parties that arose in response to the Depression? What steps did the government take to try to protect Canadian culture? What events led to World War II? Counterpoints Issue How involved should the government be in the economy during a depression? Recluse by Bertram Brooker. Brooker was born in England and moved to Canada at the age of seventeen. He lived in Manitoba and Saskatchewan before moving to Toronto in 1921. Recluse was painted in 1939. Expressing ideas What does Brooker’s painting say about life in the Depression? How does the title relate to social and economic conditions in the 1930s? 74 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 75 Introduction 1929 N.Y. Stock Market crashes on Wall Street. 1930 R.B. Bennett becomes prime minister. James Gray was a young man at the beginning of 1931 Severe drought devastates the Prairies. the Depression. This account of his family’s strug- City dwellers outnumber rural population for the gle to survive those difficult years is a vivid pic- first time in Canada. ture of the hardships endured by ordinary Japan invades Manchuria. Canadians in the bleakest decade of the twentieth century: 1932 Cooperative Commonwealth Federation (CCF) established. For two months, half a million farm people hud- 1933 Unemployment hits highest level. dled around stoves and thought only of keeping Federal relief camps established. warm. If food supplies ran low they ate less. Only when fuel reached the vanished point would they Hitler comes to power in Germany. venture to town for a load of relief coal.… Winter 1935 On-to-Ottawa Trek occurs. ended with a thaw … and presently we were into Mackenzie King is elected prime minister. summer which was much worse…. There was no Italy invades Abyssinia (Ethiopia). escape from the heat and wind and dust of the summer of 1936…. From Calgary to Winnipeg 1936 Canadian Broadcasting Corporation there was almost nothing but dust, in a bowl that established. extended clear down to Texas. Within the bowl Germany sends troops into the Rhineland. was stifling heat, as if someone had left all the fur- 1937 Royal Commission on Dominion Provincial nace doors open and the blowers on. Relations created. Source: James Gray, The Winter Years (Toronto: 1938 Kristallnacht takes place in Germany, as Nazi Macmillan, 1966, 1976), 108–111. followers attack Jewish businesses. Germany annexes Austria. 1939 Germany invades Czechoslovakia. Germany and Soviet Union sign non-aggression Falling Off the Economic treaty. Edge Germany invades Poland. The end of the economic boom came as a sur- prise to many Canadians. With only 4.2 per cent When some cautious investors started selling unemployment in 1929, it looked as if the good their stocks in order to cash in on high profits, times would continue far into the future. Activity other investors rushed to follow their lead. Sellers on the U.S. and Canadian stock exchanges was panicked as the value of stocks fell dramatically. feverish. Between 1922 and 1926, Canadian com- On October 29, 1929, the New York Stock Market panies issued new shares to a value of $700 mil- collapsed, followed by the Toronto and Montreal lion. Virtually every company’s profits went up in stock markets. The effects of the collapse were these years, and share values went up too. Many devastating. Investors who had borrowed heavily investors were buying “on margin,” that is, buy- to buy shares went bankrupt in a single day. The ing shares with only a 10 per cent down payment. collapse of the stock market was the beginning It was assumed that when the prices of the stocks of the Depression, a period of severe economic increased, as they had for ten years, the remaining and social hardship, massive unemployment, and 90 per cent would be paid. Loans for stocks were terrible suffering. The stock market crash con- easy to obtain, and the rush to get rich quickly tributed to the severity of the Depression, but it had driven the price of stocks up beyond their did not cause it. There were several reasons for real value. the Depression. Chapter 4 The Thirties: A Decade of Despair 75 Chapter04 11/05/2004 8:52 AM Page 76 This decrease in production led to layoffs in fac- 500 tories, which meant less income for families, and less spending on consumer goods. 450 To make matters worse, the United States 400 had imposed high tariffs on foreign goods com- Value of Investment ($) 350 ing into the country. These tariffs were meant to protect the U.S. domestic market by making for- 300 eign items more expensive. However, this pro- 250 tectionism had harmful effects, as other countries imposed their own tariffs in response to the 200 United States’ actions. Tariffs caused a slowdown 150 in world trade as opportunities for export shrank. Another factor that contributed to the 100 Depression was Germany’s inability to meet its 50 financial obligations under the 1919 peace agree- 0 ment. After World War I, Germany’s economy was 1921 ’22 ’23 ’24 ’25 ’26 ’27 ’28 ’29 ’30 ’31 ’32 in ruins. The enormous reparations—payments Year (December) it was obligated to make to Great Britain and France to compensate for war damages—stunted Figure 4-1 Value of $100 investment in industrial its ability to recover even more. At the same time, companies’ stock, Canada, 1921–1932. Note that most France and Great Britain counted on German Canadians bought shares after 1927. reparations to pay back their own war debts owed Using evidence Suggest why most Canadians bought to the United States. Britain and France also bor- shares after 1927. Why would people who had bought rowed from the United States after the war, and shares later in the decade have suffered more than the United States was demanding repayment of those who bought shares before 1927? these loans as well. Canada and the Depression The Depression illustrated a major weakness in Leading Up to the the Canadian economy: its dependency on the Depression export of primary resources. Two exports in par- ticular—wheat from the prairie provinces, and One sign that the North American economy was newsprint from British Columbia, Ontario, and in trouble appeared in 1927 when the price of Quebec—made Canada extremely vulnerable to wheat on the world market began to fall. More changes in world markets. Canada supplied 40 wheat was being produced than was being sold. per cent of the world demand for wheat and 65 Canadian and U.S. wheat farmers had depended per cent of the demand for newsprint. on foreign markets, but many countries were pro- As international markets reduced their de- ducing their own wheat. As sales decreased, the mand for these products, people in Canada’s income of farmers dropped. Soon many were un- wheat and paper industries lost their jobs. Without able to meet their mortgage and loan payments. jobs, they could no longer afford to buy such items Many industries in the United States and as cars, radios, or telephones. Without customers, Canada were experiencing a similar problem of the people who worked in the factories produc- overproduction. More goods were being produced ing these goods also lost their jobs. Within a year, than were being sold. At first, manufacturers millions of Canadians were out of work. continued to stockpile goods; then, they began Canada’s economy was hit particularly hard cutting back on the goods they were producing. because of its close ties to the U.S. economy. The 76 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 77 Figure 4-2 Unemployed men of all ages line up at a soup kitchen in Vancouver, for food provided by a private charity. Thinking critically Do you think the men in this photograph are accustomed to this situation? How would you describe this scene? United States had become Canada’s biggest trad- Source: Barry Broadfoot, Ten Lost Years, ing partner and largest investor. Consequently, 1929–1939 (Toronto: Doubleday, 1973), 17. when the U.S. economy “crashed,” Canada’s econ- omy was bound to feel the effects. Thousands existed on “pogey”—government relief payments given to those who had no alter- native source of income. The government did not make getting relief easy. People had to wait in line Desperate Years for hours and then publicly declare their finan- While some wealthy and middle-class Canadians cial failure. They also had to swear that they did with secure jobs noticed little change in their not own anything of value and prove that they lifestyle, many people working in factories lost were being evicted from their home. If the appli- their jobs. One by one, factories and businesses cants met these requirements, they received closed their doors. People were evicted from their vouchers that could be used to buy food. The homes because they couldn’t afford to pay rent. vouchers were never enough to cover expenses, The loss of a job also meant the loss of respect, as and obtaining them was always a humiliating ex- this one man explained in an interview years later: perience. Private charities also helped those who were I never so much as stole a dime, a loaf of bread, a desperate, providing used clothing and meals. gallon of gas, but in those days I was treated like a Soup kitchens were set up to help the hungry and criminal. By the twist in some men’s minds, men in homeless. But for some people, the economic high places, it became a criminal act just to be poor, hardships were too much to bear. One Winnipeg and this percolated down through the whole struc- man returned home to discover that his wife, who ture until it reached the town cop or railway “bull” had been living on relief, had drowned their son, and if you were without a job, on the roads, wan- strangled their daughter, and poisoned herself. dering, you automatically became a criminal. It was The note she left said, “I owe the drugstore forty- the temper of the times. four cents. Farewell.” Chapter 4 The Thirties: A Decade of Despair 77 Chapter04 11/05/2004 8:52 AM Page 78 towns were often referred to as “jungles.” Sydney Hutcheson, a young unemployed man in the sum- mer of 1932, recalls what life was like during these years: …I made Kamloops my headquarters as there were hundreds of men in the jungles on the north side of the Thompson River right across from town…. I made three round trips across Canada that sum- mer by boxcar…. I carried my packsack with a change of clothes, razor, a five pound pail and a collapsible frying pan that a man made for me in the jungles in Kamloops in exchange for a pair of socks. I also had a little food with me at all times such as bacon ends, flour, salt, baking powder and anything else I could get my hands on. Source: Sydney Hutcheson, Depression Stories (Vancouver: New Star Books, 1976), 64–65. Drought on the Prairies The Depression affected the entire country, but conditions in the prairie provinces were particu- larly severe. The collapse of the wheat market had Figure 4-3 As the Depression grew worse, more and left families struggling to survive. At the same more people found themselves out of work and time, the Prairies were hit by a disastrous drought destitute. that started in 1928 and lasted almost eight years. Developing understanding Why was In 1930, the winds began; by mid-spring of 1931, unemployment a humiliating experience for there were almost constant dust storms. Millions Canadians? What does the sign in this photo mean? of hectares of fertile topsoil blew away. Dust sifted in everywhere. It piled in little drifts on window sills, and got into cupboards and closets. In a bad windstorm, people could not see the other side of the street. The semi-arid area in southern Alberta and Saskatchewan, known as Palliser’s As economic growth drained away, the Triangle, was especially badly hit. Depression deepened. By the winter of 1933, As if this were not enough, a plague of more than one-quarter of Canada’s workforce was grasshoppers descended on the Prairies. They unemployed. The country was filled with young, stalled trains and buses, clogged car radiators, and jobless, homeless men drifting from one place to almost choked a dental patient to death while he another, looking for work that was never there. had his mouth open. Penniless, they travelled across the country by In 1935, the federal government passed the “hopping” freight trains. Some men even rode on Prairie Farm Rehabilitation Administration Act, the roof or clung to the rods underneath the train. which helped farmers build irrigation systems and After “riding the rods,” the men would stay a reservoirs. But by this time, drought and poverty day or two in the many shanty towns that sprung had forced many families to leave their farms and up in and around cities. These sprawling shanty move elsewhere. 78 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 79 Figure 4-4 Windstorms like this one turned the Prairies into a “dust bowl” during the Depression years.Overcultivation of fields and poor land-use practices prior to the 1930s contributed to the erosion of the soil. ACTIVITIES Using evidence What does this photograph tell you 1. a) What factors contributed to the Depression? about life on the Prairies in the 1930s? b) Show how a reduction in consumer spending can result in a slowdown in the economy. 2. Why was the Depression so severe in Canada? What part of the country was hardest hit? Why? one man argued that the Depression had two 3. Reread James Gray’s description of the 1930s. Write causes: a first-person account of the summer of 1936 on the …overproduction and the employment of women. Prairies. Starting some Monday morning, every woman gain- fully employed shall stay home and permit her near- est male relative to take over her job and her pay. The Disadvantaged Canadians who had difficulty earning a decent Aboriginal families on relief got only five dol- wage when times were good suffered even more lars a month. They were expected to “live off the during the Depression. For women, there were land,” even though conditions on the reserves few jobs other than domestic work, which paid were so poor that they had been unable to do so just a few dollars a week. Some critics believed for decades. In Vancouver, the Chinese popula- working women actually contributed to the tion suffered greatly and by 1932, many were Depression. In an article in Chatelaine magazine, starving. One author writes: Chapter 4 The Thirties: A Decade of Despair 79 Chapter04 11/05/2004 8:52 AM Page 80 building your skills Using Statistics in History S tatistics are a primary source of evidence that his- torians rely upon to provide a picture of the past. were jobless in different years, how much income was reduced over time, or how different parts of the coun- Analysing statistics can help us understand the terrible try were affected by the Depression. hardships people suffered during the Depression. Examine the four sets of statistics below to get a Analysis allows us to compare data and see how situ- better understanding of Canada in those years. Then, ations changed over a certain period of time, or from answer the questions that follow. place to place. Statistics can tell us how many Canadians Source 2 Source 1 Total Relief Expenditures, 1930–1937 Annual Unemployment Rate, Canada, 1928–1939 Year Relief Percentage Year Per Cent Year Per Cent ($ millions) National Income 1928 2.6 1934 20.6 1930 18.4 2.2 1929 4.2 1935 19.1 1931 96.5 4.9 1930 12.9 1936 16.7 1932 95.0 6.0 1931 17.4 1937 12.5 1933 97.9 6.6 1932 26.0 1938 15.1 1934 158.5 8.4 1933 26.6 1939 14.1 1935 172.9 8.4 Source: J.H. Thompson and Allen Seager, Canada 1936 160.3 7.6 1922–1939 (Toronto: McClelland & Stewart, 1985), 350. 1937 165.1 7.3 Source: Rowell–Sirois Report, Book 1, 174. By destitute Chinese men, most of them Immigrants were viewed with hostility when elderly, were begging in the street…. The first … they competed for scarce jobs. Jews in par- Chinese deaths from starvation finally forced the ticular were targeted, and they suffered from provincial government to show some concern. It anti-Semitism—prejudice specifically against funded the Anglican Church Mission’s soup Jews. Many professions were closed to them, kitchen…, but it expected a Chinese to be fed at and employers often posted signs forbidding half of what it cost to feed a white man on relief. them to apply. In cities, many clubs and or- Some destitute Chinese said they’d rather starve ganizations forbade Jewish membership. than accept relief. Almost 10 000 immigrants were deported Source: Denise Chong, The Concubine’s Children from Canada in the first half of the (Toronto: Penguin, 1994), 61–62. Depression. In 1931, the government put a complete stop to immigration. 80 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 81 Source 3 Decline in Provincial per Capita Incomes, from 1928–1929 to 1932 1928–29 Average 1932 Percentage $ per Capita $ per Capita Decrease Canada 471 247 48 Saskatchewan 478 135 72 Alberta 548 212 61 Manitoba 466 240 49 British Columbia 594 314 47 Prince Edward Island 278 154 45 Ontario 549 310 44 Quebec 391 220 44 New Brunswick 292 180 39 Nova Scotia 322 207 36 Source: Michael Horn, The Dirty Thirties (Toronto: Copp Clark, 1972), 175. Source 4 Applying the Skill 1. a) Which years had unemployment rates of over 15 Canadian Wheat Price per Bushel, 1925–1937 per cent? Year Price Year Price b) Which three years had the highest expenditure 1925 $1.43 1932 $0.35 on relief? 1926 $1.09 1933 $0.49 1927 $1.00 1934 $0.61 2. With a partner, calculate the total national income 1928 $0.80 1935 $0.61 for 1930–1937. What happened to the national in- 1929 $1.05 1936 $0.94 come between 1931–1935? 1935–1937? 1930 $0.49 1937 $1.02 3. Use the tables to help you determine the two worst 1931 $0.38 years of the Depression. List and explain the evi- Source: A.E. Safarian, The Canadian Economy in the dence you used in reaching your decision. Depression (Toronto: McClelland & Stewart, 1970), 196. 4. Which province do you consider was hardest hit by the Depression? Explain. Responding to the the Depression, however, had bankrupted many municipalities. When asked by the Conservative Depression opposition why some provincial governments were not being helped by the federal government, King Prime Minister Mackenzie King was totally un- said he wouldn’t contribute “a five-cent piece” to prepared to deal with a crisis on the scale of the a Tory provincial government. Depression. He believed the situation was tem- King never lived down this impulsive remark. porary and that, in time, the economy would re- He failed to understand that unemployment was cover. When desperate Canadians turned to the a major issue for Canadian voters. King’s attitude federal government for financial help, King told cost him the election of 1930. He lost to R.B. them this was the responsibility of municipal and Bennett, leader of the Conservatives. provincial governments. The financial strain of Chapter 4 The Thirties: A Decade of Despair 81 Chapter04 11/05/2004 8:52 AM Page 82 Bennett’s Response called a “Bennett barnyard”; a newspaper was a “Bennett blanket.” Roasted wheat was “Bennett Prime Minister Bennett was no more in favour of coffee,” and “eggs Bennett” referred to boiled government relief than Mackenzie King had been. chestnuts. He once told a group of students that “one of the The growing number of jobless, homeless greatest assets a man can have on entering life’s men drifting across the country frightened many struggle is poverty.” Nevertheless, his government middle-class Canadians. Prime Minister Bennett gave the provinces $20 million for work-creation also feared these men would come under the in- programs. In spite of this spending, the economy fluence of the Communist Party. In 1931, the did not improve. government banned the Communist Party and Bennett had pledged to “use tariffs to blast arrested several of its leaders, including Tim Buck, a way” into world markets and out of the the party’s general secretary. Depression. Bennett’s “blast” was to raise tariffs by The federal government also decided to create 50 per cent to protect Canadian industries. This work camps for unemployed, single men. In enormous increase in tariffs did provide protec- British Columbia, the provincial government had tion for some Canadian businesses, but in the already established work camps, and these were long run, it did more harm than good, as other absorbed into the federal ones. nations, in turn, erected trade barriers against Canada. As the situation in Canada grew worse, Prime Working for Twenty Cents a Day Minister Bennett became a target for people’s Work camps were usually located deep in the anger and frustration. A deserted prairie farm was woods, so the men were completely isolated. Men Figure 4-5 High tariffs were meant to protect a country’s domestic market. Interpreting a cartoon What is this cartoon saying about Canada’s protective tariffs? How did tariffs contribute to the stockpiling of goods? To the slowdown in world trade? 82 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 83 worked on projects such as building roads, clear- Under the leadership of their union, the Relief ing land, and digging drainage ditches. They were Camp Workers Union, the men decided to take paid twenty cents a day and given room and board. their complaints to Ottawa. Thus began a protest The food was terrible, and the bunks were often that became known as the On-to-Ottawa Trek. bug-infested. Over 170 000 men spent some time Crowding into and on top of freight cars, the in these camps. Red Walsh was one of those men. trekkers rode through the Prairies, picking up He described the conditions of the camp this way: more and more supporters along the way. When the protesters reached Regina, the RCMP con- We lived in a bunkhouse. So many men to a fined them in a local stadium, allowing only the bunkhouse. Tar-paper shacks. Hard-board beds leaders to proceed to Ottawa. without a mattress. No sheets, just blankets. And The union leaders who met with Prime the meals were very poor. The food itself we were Minister Bennett had great hopes of being heard, eating could not be sold over the counter in a but Bennett made his position clear immediately. store…. There was nothing to do. You’d work your He attacked the leaders as radicals and trouble- eight hours a day every day. There was nothing makers. When he called one leader, Slim Evans, else. No recreation. No sports. Nothing like that. a “criminal and a thief,” Evans shouted back, “And Source: Red Walsh, “On to Ottawa.” In Gloria you’re a liar, Bennett, and what is more, you’re Montero, We Stood Together (Toronto: Lorimer, not fit to run … a great country like Canada.” The 1979), 24–25. delegation was hustled out of the prime minis- ter’s office at once. Back in Regina, the RCMP were ordered to The On-to-Ottawa Trek clear all the trekkers from the stadium. The In 1935, over a thousand men left the camps in trekkers resisted, battling the RCMP and the local the interior of British Columbia in protest against police for two hours. One man was killed, many camp conditions. They congregated in Vancouver. were injured, and 130 men were arrested. Figure 4-6 The On-to-Ottawa Trekkers. Gathering information Write three questions you could ask to find out more about the scene shown here. Chapter 4 The Thirties: A Decade of Despair 83 Chapter04 11/05/2004 8:52 AM Page 84 chats,” he built up their confidence in the U.S. econ- omy. The New Deal didn’t pull the United States out of the Depression. It did, however, help millions to sur- counterpoints vive, and it gave hope for the future in a time of national despair. Not everyone agreed with Roosevelt’s actions. The How Involved Should the Republican Party, for example, criticized Roosevelt’s New Deal: Government Be in the The New Deal Administration … has been guilty Economy During a of frightful waste and extravagance, using public funds for partisan political purposes…. It has cre- Depression? ated a vast multitude of new offices, filled them with its favorites, set up a centralized bureaucracy, Before the Depression, North American governments and sent out swarms of inspectors to harass our kept their involvement in the economy to a minimum. people. It has bred fear and hesitation in commerce This policy was known as laissez-faire. During the and industry, thus discouraging new enterprises, 1930s, however, governments were overwhelmed by preventing employment and prolonging the the economic crisis of the Depression. They came under Depression…. increasing pressure by the public to create work pro- Source: Quoted in N. Barber, A New Nation: The grams for the unemployed as well as to provide money American Experience (Toronto: McGraw-Hill to help those who were unable to help themselves: the Ryerson, 1989), 278. poor, the sick, and the elderly. John Maynard Keynes was a leading British econ- To these critics, the New Deal meant a bigger and omist who believed that, during a depression, the gov- more intrusive government, higher taxes, and unnec- ernment needed to “jump start” the economy by essary restrictions on business activities. Most signifi- spending money on programs that would put people cant, perhaps, was the criticism that the New Deal was back to work. Once working, people would spend a waste of taxpayers’ money and that the debt would be money on consumer goods, which would increase the left to future generations to pay down. demand for these goods. Increased demand would Prime Minister Mackenzie King did not support in- mean people would be hired to produce goods, thus creased government spending during the Depression, creating more jobs, more spending, and so on. Relief believing that, in time, the economy would improve on payments to the poor and destitute would also be ben- its own. King also felt that spending money on social eficial, as this money would work its way back into the programs during a depression did not make economic economy. sense, that it was better to wait until the economy was The U.S. president, Franklin Roosevelt, supported strong before introducing these expensive programs. Keynes’s theory. After he took office in 1933, Roosevelt As he said in a radio interview in 1935: introduced a “New Deal” that created numerous public work programs for the unemployed and for farmers. His A house is not built from the top down. It is con- most drastic action was the introduction of the Social structed from the ground up. The foundation must Security Act. This act provided several social assistance be well and truly laid, or the whole edifice will crum- programs, such as old age pensions for workers sixty-five ble. To seek to erect an ambitious program of social years of age and older, unemployment insurance, and services upon a stationary or diminishing national in- financial assistance for dependent mothers and children. come is like building a house upon the sands. Under the New Deal, the U.S. federal government Source: Quoted in R.C. Brown and M.E. Prang, spent billions of dollars to get the economy working Confederation to 1949 (Toronto: Prentice Hall, again. Roosevelt’s easy-going manner appealed to vot- 1966, vol. 3), 249. ers, and in a series of radio talks known as “fireside 84 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 85 Bennett promised Canadians a fairer tax system, unemployment insurance, workplace reforms, revised old age pensions, and support for farmers. Many voters regarded Bennett’s change in policy as a desperate at- tempt to win more votes and not as a shift in his view of the role of government in the economy. Since the Depression, the role of the government in Canada’s economy has been an important debate. Some Canadians believe that, even if the country is not experiencing a depression, it is the government’s duty to provide basic services such as education, health, un- employment benefits, and other kinds of social assis- tance to those who need it. These people believe in a welfare state, where the government should actively look after the well-being of its citizens. Other Canadians support a competitive state, where the role of govern- ment is to create an atmosphere of healthy competi- tion for businesses by cutting spending on social programs and reducing taxes. Most Canadians believe in a mixed economy where the role of government is to provide a certain level of social services, yet not be Figure 4-7 Roosevelt priming the New Deal pump. overly intrusive in planning and running the economy. Thinking critically What is the message of this cartoon? Why has the cartoonist chosen the image of Analysing the Issue priming a pump to describe Roosevelt’s New Deal? 1. Draw a flow chart to illustrate Keynes’s theory of how government spending could lift a country out Prime Minister Bennett, as well, did not support of a depression. Keynes’s theory of government spending during a de- 2. In a two-column organizer, summarize the arguments pression. Bennett was convinced that “…government for and against government intervention in the econ- is not here to subsidize idleness.” omy: In a series of radio addresses leading up to the 1935 election campaign, however, Bennett surprised a) in a period of economic slowdown listeners, and his Cabinet colleagues, by coming up with b) in a period of economic growth. his own version of a New Deal: 3. How did Roosevelt’s New Deal reflect Keynes’s the- …In my mind, reform means Government inter- ories? Bennett’s ”new deal“? vention. It means Government control and regula- 4. What did Bennett mean by “the government is not tion. It means an end of laissez-faire. here to subsidize idleness”? *** 5. Canadian governments spent the 1990s trying to re- In what way and to what extent must the govern- duce government spending and cut national and ment intervene? That is a difficult question. All I provincial debts. Research the view of the major po- can tell you is that we will go just as far as neces- litical parties on the issue of government spending. sary to reform the system and to make it effec- Decide which party you might be inclined to support tively work again. on this issue, and list your reasons for doing so. Source: Quoted in R.C. Brown and M.E. Prang, Share your findings with the class. Confederation to 1949 (Toronto: Prentice Hall, 1966, vol. 3), 244, 245. Chapter 4 The Thirties: A Decade of Despair 85 Chapter04 11/05/2004 8:52 AM Page 86 Trouble in Vancouver days there were battles between police and the “sitdowners,” causing much damage to storefronts One of the last protests by the unemployed during in the area. the Depression was in Vancouver. When the fed- eral government closed relief camps in 1937 and the provincial government reduced relief pay- ACTIVITIES ments, many men were left destitute. In protest against the lack of government support, these men 1. What seemed to be the government’s attitude to- would conduct “sit-ins” at various buildings until wards those people who had lost their jobs? Why the government responded to their complaints. do you think this was the case? Do you think this at- In April, 1600 protesters occupied the Vancouver titude exists today towards the unemployed? Art Gallery, the main post office, and the Georgia 2. What did people have to do to qualify for “pogey”? Hotel. Most of the protesters were convinced to Why do you think people were given vouchers in- end their sit-in without incident. At the post office, stead of cash? however, the men refused to leave; they were 3. Why did Mackenzie King fail to win the election in eventually evicted with tear gas. For the next two 1930? Write a press release from the prime minis- ter’s office explaining why Prime Minister King is not in favour of relief payments. Include initiatives his government has taken to fight employment. 4. Write a paragraph describing conditions in Vancouver’s Chinese district during the Depression. Explain why conditions were so harsh. Include in- formation you have learned from earlier chapters. Politics of Protest As Ottawa struggled to find ways of coping with the Depression, some Canadians looked to al- ternative parties for solutions. One party formed in the West in 1932 was the Cooperative Commonwealth Federation (CCF). It appealed to a wide variety of Canadians who were dissatis- fied with the government’s response to the Depression. They included farmers, labourers, so- cialists, intellectuals, and discontented Liberals. Their leader was J.S. Woodsworth. The CCF was a socialist party. In its platform, the Regina Manifesto, the party stated its support for public ownership of key industries. It also sup- ported social programs to assist people in need of money: the elderly, the unemployed, the home- less, the sick, and other citizens unable to sup- port themselves. Woodsworth also urged the Figure 4-8 Relief camps like this one in British government to spend money on public works in Columbia were established by the federal order to create employment. The CCF did not government between 1932 and 1936. win many seats in the 1930s, but it did provide a clear alternative to the policies of the mainstream 86 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 87 Figure 4-9 William Aberhart came to power based on the popularity of his theory of social credit. Interpreting a cartoon What is this cartoonist’s opinion of the soundness of social credit? parties. The CCF was the forerunner of the New Court. Despite this setback, the popularity of the Democratic Party. Social Credit Party never dimmed. It remained In the 1935 election in Alberta, the Social in power in Alberta until 1971 under Aberhart’s Credit Party, led by William Aberhart, won a land- successors, Ernest Manning and Harry Strom. slide victory. “Bible Bill” Aberhart was a charis- matic preacher and high school teacher in Calgary. He publicized the social credit theory in his weekly Provincial Solutions radio program, “Voices of the Prairies.” Social During the Depression, many voters expressed credit was based on the belief that capitalism was their dissatisfaction with government inaction by a wasteful economic system. Under capitalism, voting out ruling provincial parties. In Ontario, banks hoarded money, preventing customers from the provincial Liberals came to power in 1934, buying the abundant goods that capitalism pro- the first time in twenty-nine years. The Liberal duced. Aberhart felt that the government should leader was a populist farmer, Mitch Hepburn, release money into the economy so that people who won wide support by championing the causes could spend it. The theory of social credit ap- of “the little man.” He railed against big business pealed to many people from Alberta because the and was fond of flamboyant gestures, such as the Depression had devastated their economy and sale of the provincial fleet of automobiles. they resented the power and control of the banks Hepburn was at heart a conservative, however, in Central Canada. and did little for the unemployed. He was also in- Aberhart promised each citizen a “basic divi- volved in the ruthless suppression of strikes. dend” of twenty-five dollars a month to buy ne- In Quebec, Maurice Duplessis, a former cessities. The federal government challenged the Conservative, brought the newly formed Union right of a province to issue its own currency, and Nationale party to power in 1936. The Union social credit was disallowed by the Supreme Nationale was a nationalistic French-Canadian Chapter 4 The Thirties: A Decade of Despair 87 Chapter04 11/05/2004 8:52 AM Page 88 party that relied upon the support of the Roman States. He introduced reforms to shorten the work Catholic Church and rural voters. Duplessis day, increase the minimum wage, and increase blamed many of Quebec’s social and economic relief payments by 20 per cent. Public works pro- problems on the English minority in Quebec, jects were launched, most notably the Fraser River which controlled the province’s economy. During bridge at New Westminster and a new city hall his first term, however, Duplessis’s promises of for Vancouver. Pattullo’s projects were short lived, reform evaporated, and he did little to improve however, as the federal government challenged economic and social conditions in Quebec. With his authority to introduce programs that were con- one interruption, he remained premier until sidered to be in the federal domain. 1959. In British Columbia, Premier Dufferin Pattullo, a Liberal, was elected in 1933. Pattullo, A Change in Government too, was a strong believer in greater provincial spending power. He promised voters a “Little New By 1935, voters were fed up with Bennett’s in- Deal,” based on the New Deal in the United ability to deal with the crisis of the Depression. In the federal election, they returned Mackenzie King to power. Five years in opposition did little to change King’s stand on government intervention in Figure 4-10 Vancouver’s city hall was built as part of a public works project. 88 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 89 up close Mackenzie King and R.B. Bennett William Lyon Mackenzie King was one of the most dominant political leaders in Canadian history. He was prime minister of Canada for twenty-two years, from 1921 to 1930, save for a few months in 1926, and from 1935 to 1948. King was a highly educated man who had studied political economy at Harvard University. In his day, King was notorious for dull and ambiguous speeches that blurred the issues and seemed to promise everything to every- one. These speeches infuriated many listen- ers. In fact, King was a skilled negotiator who wanted desperately to keep Canada united— French and English, the different regions, so- cial classes—and his vague manner was a Figure 4-11 Mackenzie King Figure 4-12 R.B. Bennett. and his dog Pat. deliberate technique to try to please every- one. King was Canada’s prime minister dur- ing World War II; his friendships with British Prime Minister Winston Churchill and U.S. President Franklin Dear Sir, — I am a girl thirteen years old and I have Roosevelt helped strengthen the relationship among to go to school every day its very cold now already the Allies. and I haven’t got a coat to put on. My parents can’t After King’s death, it was discovered that this ap- afford to buy me anything for this winter. I have to parently colourless man had led a secret life. He had walk to school four and a half miles every morning kept a detailed personal diary from his student days in and night and I’m awfully cold every day. Would the 1890s to his death in 1950. His diaries revealed that you be so kind to send me enough money so I King was a believer in spiritualism. He held seances in could get one. which he spoke to the dead, especially to his mother and his dog Pat. Secretly, Bennett sent many of these people five Richard Bedford Bennett, Canada’s prime minister dollars of his own money—a significant sum in those during the darkest days of the Depression, was a mil- days. His generosity was uncovered in his private papers lionaire. Like King, he too was a bachelor; he made his only after he died. home in Ottawa in a suite occupying a whole floor of the Questions luxurious Château Laurier Hotel. It was small wonder that poverty-stricken Canadians felt little affection for 1. Do you think King’s interest in spiritualism affected him. his ability to function as prime minister? Is it neces- Bennett was hated by many for his failure to find a sary to know such private details to evaluate his role solution to the bad times. After his death, however, in Canadian history? proof of his compassion appeared. Thousands of des- 2. How was Bennett perceived by Canadians during perate Canadians had written to the prime minister ask- the Depression? Do you think this image of him was ing for help, with letters like the following: justified? Explain your answer. Chapter 4 The Thirties: A Decade of Despair 89 Chapter04 11/05/2004 8:52 AM Page 90 the economy. His views clashed with the findings ACTIVITIES of a commission he had set up to examine the state of unemployment in Canada in 1936. The 1. List the political parties that were started during the National Employment Commission found that Depression. State who were the parties’ support- unemployment was a national problem, and it rec- ers; their leaders; and their policies. ommended the federal government spend mil- 2. How did federal–provincial relations make it difficult lions of dollars on job creation and training for provincial governments to deal with the prob- programs. King ended up spending only a frac- lems of the Depression? Give examples from British tion of what the commission had recommended Columbia and Alberta. on job-creation schemes. 3. What were the main recommendations of the Rowell–Sirois Commission? Why did the wealthier provinces dislike these recommendations? Increased Tension in Federal–Provincial Relations King created another Royal Commission in 1937. Distractions from Despair The Rowell–Sirois Commission, named after its two chairpersons, was to examine the thorny issue Through the Depression, there was one aspect of of federal–provincial relations. life that changed little: entertainment. Movies, The unemployment crisis of the Depression magazines, and the radio remained enormously had caused a great deal of tension between the popular. They provided romance, adventure, and federal and provincial governments. There was glamour to millions of people whose lives had be- disagreement over which government had the right come a series of hardships. to collect tax money and which government should Radio was particularly popular during the pay for social and employment assistance. The Depression. Initially, Canadian audiences pre- Rowell–Sirois Commission recommended that ferred syndicated U.S. shows, such as a western the federal government have more control over entitled “The Lone Ranger” and big-band enter- taxation. The federal government would then give tainment programs, because they were more so- the poorer provinces grants or equalization pay- phisticated than Canadian programs at that time. ments to ensure that every province was able to In an effort to win over Canadian listeners, the offer its citizens the same level of services. The federal government created a public radio service, Commission also recommended that the federal which became the Canadian Broadcasting government bear the responsibility of unemploy- Corporation (CBC) in 1936. The CBC ran ment insurance and other social benefits such as Canadian-produced music and entertainment pro- pensions. grams in French and English. French program- The wealthier provinces did not like the idea ming in Quebec was very popular, but many of equalization payments because they did not English-speaking listeners still tuned in to popu- want their tax dollars going to other provinces. lar U.S. shows. The provinces also felt that many of the In 1934, the birth of the Dionne quintuplets Commission’s recommendations would mean brought a welcome distraction from the grim re- a loss of provincial power. By the time the alities of the Depression. Born in Corbeil, north- Commission made its report, the economy had ern Ontario, they quickly became an international started to turn around. More people were finding sensation. When their poverty-stricken parents jobs, and there was a mood of cautious optimism were judged incapable of looking after the “mira- throughout the country. Canada’s involvement cle babies,” the five girls were taken into the care in World War II meant most of the Commission’s of the Ontario government. recommendations were either pushed aside in- The Dionne girls were put on display to the definitely or adopted many years later. public, and over three million people visited the 90 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:52 AM Page 91 Figure 4-13 The establishment of a public radio service provided an opportunity for Canadian talent to develop. One particularly popular program was “The Happy Gang,” a variety show that was broadcast from coast to coast from 1937 to 1959. specially built hospital where they were raised. Visitors could watch the daily lives of the quints behind a one-way screen. The Ontario govern- ment earned millions of dollars from this tourist at- traction. Hollywood fictionalized the Dionnes’ story in three different movies, and hundreds of businesses used images of the quints to endorse their products. Decades later, it became clear that the quints had been denied normal lives and had seen little of the money the government had sup- posedly set aside for them. The conservationist Grey Owl was another Canadian figure who achieved popularity and world fame. When he died in Saskatchewan in 1938, however, the secret of his life became known: the famous “Apache” naturalist was ac- Figure 4-14 Grey Owl credited his wife, Anahareo, tually an Englishman named Archie Belaney. He with convincing him to stop trapping and work for the had moved to Canada at age seventeen in 1906 preservation of the beaver and the wilderness that and took on the identity of a Canadian Aboriginal. was its habitat. He wore buckskin clothing, darkened his skin, and married an Iroquois woman, one of a num- ber of women he married in his lifetime. Grey Owl devoted the latter part of his life to the most famous Canadian of his day. His books, the preservation of the northern Canadian forests such as The Adventures of Sajo and Her Beaver and the disappearing beaver. His writings and People, became best-sellers. He made movies, and speaking tours promoting conservation made him dined with prime ministers and royalty. Chapter 4 The Thirties: A Decade of Despair 91 Chapter04 11/05/2004 8:53 AM Page 92 The Rise of Dictatorships guilt” clause that required it to make reparations to other countries. The German economy had As Canada and the United States struggled to been ruined by the war; in order to make repara- cope with economic hardship during the tions, the government had begun printing large Depression, other countries were experiencing amounts of money in the early 1920s. As a result, enormous political and social upheaval. The the value of the German currency declined and economies of most European countries never re- inflation spiralled. In other words, German money covered from World War I, and the Depression became worth less and less, while the prices of made matters even worse. Unemployment was basic goods increased rapidly. high, food was often scarce, and lawlessness be- To control this inflation, Britain, France, and came a major problem. People became divided the United States agreed to give better terms for over how these problems should be solved. Some Germany’s reparation payments. Germany made a believed communism was the only solution to modest recovery. When world stock markets col- the economic and social suffering. Others ab- lapsed in 1929, however, the weakened German horred the idea of public ownership, believing a economy was affected more than most countries. strong military was needed to restore law and order. The result was the rise of several leaders who, once in power, proved to be powerful dic- tators who suppressed all forms of opposition and dissension. In the Soviet Union, Josef Stalin took over as leader of the Communist Party after the death of Lenin, the leader of the 1917 Revolution. Stalin, “the man of steel,” was a ruthless and cruel leader whose agricultural and economic policies caused the death of millions of Soviet workers. Under his leadership, the Soviet Union became a totalitar- ian state, with every aspect of people’s lives con- trolled by the Communist Party. In Italy, Benito Mussolini, or Il Duce (“the leader”) came to power in 1922. Mussolini cre- ated a fascist government. Fascist governments are opposed to democracy, are extremely nation- alistic, and rely on military and police power to maintain absolute control. They control all media, and use propaganda to promote the ideals of the state. Soon, there were fascist parties based on Mussolini’s system in many countries. The most powerful fascist party, however, was the German National Socialist party, or Nazi Party, under the leadership of Adolf Hitler. Figure 4-15 This photograph, taken in 1923, shows a Germany After the War German woman using several million marks to fuel her stove. Since the end of World War I, Germany had Using evidence What can you conclude about the grown increasingly unhappy with the terms of the value of German currency from this photograph? Treaty of Versailles. It bitterly resented the “war 92 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:53 AM Page 93 Hitler Comes to Power the German people, unemployment went down and the economy started to improve. Since 1923, Hitler and his followers had been At the same time, the Nazis abolished all other gathering support by criticizing the weak German political parties in the country. Trade unions were government and the humiliating terms of the Treaty banned. Hitler became known as der Führer (“the of Versailles. It was the Depression, however, that leader”). Like Stalin and Mussolini, Hitler was a provided the conditions for his rise to power. Hitler ruthless dictator who ruled his country through and his Nazi Party claimed they had the solutions intimidation and fear. Not all Germans supported to bring Germany out of the Depression and make him, but no one was free to oppose him or his it a great nation again. In January 1933, Hitler be- party without risking severe punishment. came Chancellor of Germany, and by March, his The Nazi Party was deeply racist. Its mem- party had won control of the German parliament. bers believed that the German people were a Once in power, the Nazi government defied the terms of the Treaty of Versailles by stopping all reparation payments. It also started a massive ex- pansion of the armed forces, an action that vio- lated the terms of the peace treaty. Hitler Figure 4-16 The Nazis were brilliant propagandists, subsidized farmers to help rebuild their farms, and presenting selected information and using symbolism poured money into public projects such as the and pageantry to appeal to the emotions of the building of the Autobahn, a network of express- public. ways running across the country. To the delight of Gathering information What methods did the Nazis use at their rallies? What atmosphere or mood do you think they were trying to create? Chapter 4 The Thirties: A Decade of Despair 93 Chapter04 11/05/2004 8:53 AM Page 94 “master race” composed of Aryans, a supposedly Italy had no oil of its own, and had it been un- “pure” race of northern Europeans. Non-Aryans, able to import oil, its war machine would have who included Jews, Roma (Gypsies), and Slavs, run down very quickly. France and Great Britain were considered to be inferior. People with men- were reluctant to punish Italy, however, as they tal or physical disabilities were despised because wanted Italy’s support in case of a new war with they destroyed the image of the “master race.” Germany. The Nazis persecuted these groups. Communists and homosexuals were also targeted. For exam- ple, the government prohibited these people from Germany on the Offensive teaching or attending schools and universities, In 1936, Hitler ordered his troops into the holding government office, practising professions, Rhineland, an area along Germany’s western bor- or writing books. The Nazis also encouraged mobs der that was demilitarized by the Treaty of to assault members of these groups and destroy Versailles. Hitler counted on little resistance from their property. world leaders to this occupation, and he believed One of the most notable of these occasions his actions would go unpunished by the League of was November 9, 1938, when Nazi mobs attacked Nations. He was right. Jewish businesses across Germany. Afterwards, That same year, General Francisco Franco and sidewalks in many parts of the country were cov- his Falange (fascist) followers led an attack on ered with broken glass from windows, giving the Spain’s government. The result was a civil war be- attack the name Kristallnacht or “Crystal Night.” tween the elected socialist government and the The Nazis also set up concentration camps to im- rebel forces of General Franco. Franco, with mili- prison and isolate non-Aryans from German so- tary support from Hitler and Mussolini, won the ciety. Eventually, they decided to purge their war and became the ruler of Spain. The democra- nation altogether of people they considered un- tic governments around the world chose not to get desirable in the Holocaust (see Chapter 5). involved in the conflict, although socialist sup- porters from several countries went to Spain to join in the fight against Franco and fascism. Canadian On the Road to War volunteers, called the Mackenzie–Papineau Battalion (the Mac-Paps), numbered over 1200. In 1931, Japan invaded the Chinese industrial One of the volunteers was Dr. Norman Bethune, province of Manchuria. The Chinese government a surgeon and political activist from Ontario. appealed to the League of Nations to take punitive action against Japan. The League, established by the Treaty of Versailles, was supposed to help The Policy of Appeasement maintain world peace, but it proved a much Throughout the 1930s, Western democracies weaker body than originally intended. It con- adopted a policy of appeasement in response to demned Japan’s action and tried to negotiate, but Germany’s aggression. Because no one wanted to Japan responded by withdrawing its membership fight another war, many leaders were willing to from the League. make concessions to Hitler to maintain peace. In the spring of 1935, Italy attacked Abyssinia Appeasement, however, simply made Hitler bolder. (now Ethiopia). Ethiopia was one of the few in- In March 1938, he took over neighbouring Austria, dependent African nations. The Ethiopians, who a German-speaking country. He then demanded had never been colonized, fought hard against the the right to take over the Sudetenland, the Italian invasion and won support around the world. German-speaking region in western Czecho- This time the League immediately voted to im- slovakia. In September 1938, at a conference in pose trade sanctions against Italy. Oil, a crucial Munich, Britain and France agreed to this de- import for Italy, was not included in the sanctions. mand. In turn, Hitler pledged that this would be his last territorial claim. 94 Unit I Canada in the Twentieth Century Chapter04 11/05/2004 8:53 AM Page 95 Figure 4-17 Japan’s USSR aggression by 1934. In 1931, Japanese troops invaded China’s resource- rich province of Manchuria. Japan needed these resources in order Mongolia to expand its empire. By Manchuria 1934, the invasion of Manchuria was complete. PACIFIC Reading a map What SEA OF OCEAN resources did Japan JAPAN JAPAN acquire after its invasion of KOREA Manchuria? How would (Japanese) the invasion of Manchuria YELLOW CHINA SEA assist Japan in its later 0 400 800 km invasion of China? EAST CHINA Japan 1890 SEA Territory added by 1918 Territory added by 1934 Iron ore Coal Gold Petroleum Figure 4-18 Route of Italian troops invading ATLANTIC OCEAN Ethiopia, 1935. Mussolini BLACK SEA wanted to create his own ITALY CASPIAN SEA empire and in 1935 he invaded the country of Ethiopia (Abyssinia). MEDITERRANEAN SEA Thinking critically With Suez Canal the invasion of Ethiopia, what advantage would LIB Y A EGYPT Italy have should war break out in northern RED SEA Africa? Italian attacks SUDAN ERITREA