The National Policy and John A

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					The National
and John A.
  Chapter 9

       By Leah Cheverie
                                -First Prime Minister of Canada
                                and served for 19 years
                                -January 11th 1815-June 6th 1891
                                -Born in Scotland
                                -Leader of the Tory Conservative

•   The National Policy was a Canadian economic program introduced
    by John A. Macdonald’s Conservative Party in 1876 and put into
    action in 1879.
The National Policy consisted of
     three initiatives:

1.   Protective tariffs against foreign
2.   A transcontinental railway.
3.   Greater immigration and
     settlement of the West.
Manufactured goods had the highest tariffs.
A duty of more than 40 percent was levied on products such as
   carriages, agricultural machinery, railway cars, and woollen clothing.
These duties were intended to be protective tariffs, they were placed on
   products that were being produced by some of Canada’s growing
   industries but leaving our country to sell to other markets. Macdonald
   wanted to keep business in Canada to keep our markets healthy.
• The depression of the 1870s led many Canadians to believe that the
  country’s economy had become overly dependent upon the exploitation of
  staples products including lumber, coal, steel, fish, and fur.
• Many of the markets for Canadian timber, wheat, and fish were
  disappearing due to a decrease in spending brought about by a worldwide
  economic downturn.
• As a result between 1873 and 1879, Canadian exports fell by 20 percent.
• Business leaders believed that the economy needed to diversify to include
  more secondary manufacturing. Business owners wanted to not only
  produce primary products, they wanted to manufacture them.
• Business leaders also feared a growing manufacturing sector would not
  survive American competition, which had the advantage of large-scale
  production facilities, lower transportation costs, and a transcontinental
• They were convinced that lower-priced American goods had to be kept out
  of Canada in order to keep Canadian markets strong.
Essential to this economic strategy was the building of the
  Canadian Pacific Railway (CPR), which Macdonald had
  promised during his first term in office.
Take out a piece of
  loose leaf.
Write down something
  you learn from
  watching the following
Take 5 minutes.

10 minutes
Canadian Pacific Railway
There were many immigrants involved in the building of
  the railway.
• When the Liberals came to power, they made little
  progress with the railway.
• When Macdonald came back to power in 1878, he
  wanted to complete the building of the railway as soon
  as possible because the lands to the west were
  considered vulnerable to American political and
  economic expansion.
• Since acquiring the western territories, the Canadian
  government had been relatively unsuccessful in
  attracting settlers.
• The railway was needed to move settlers west.
• Investors needed assurances that the railway would
  eventually pay for itself.
• The National Policy’s
  blueprint for prosperity
  was designed: it would
  establish a strong
  manufacturing base in
  central Canada that
  received its supplies
  from the rich natural
  resources of the East
  and West.
  The Effects of the National Policy
• The National Policy’s
  most immediate and
  concrete result was the
  completion of the
  Canadian Pacific
• To the federal
  government, this
  ambitious project
  represented the
  backbone of a new
  national economy.
• To facilitate it’s construction, the government offered
  concessions to a new Canadian Pacific Railway
• Among these concessions were $25 million in grants,
  $25 million acres of land, tax-exempt status, and a 20
  year guarantee against competition from other railways.
• These terms were generous, but Macdonald viewed
  them as the price to be paid to compensate for the
  risks of building the world’s largest railway.
• Once major investments in the project had been made
  (ironically, by Americans), construction on the railway
•   Describe the features of this
    political cartoon.
•   What is the issue (s) being
•   What supporting evidence is there?
•   What is the opinion or perspective
    of the cartoonist?
•   How do these issues impact

    Halifax, Canada, and the world?
• Most of the labourers came from Canada, the
  United States, and Ireland, but the most
  dangerous jobs, such as planting explosives,
  were assigned to Chinese workers, thousands of
  whom died during construction.
• Heritage Moment
• By 1885, the work was done and the visionary
  CPR was complete.

Do you think appreciation and credit was given to
 individuals who worked on the railway?
(CPR found in B.C.)
“Wherever it went, the railway quickened the
  pace of economic life and laid the
  foundations for a national economy
  dominated by the banks and businesses in
  Montreal and Toronto”
-Alvin Finkel and Margaret Conrad,
     The Creation of an Industrial

• Heartland-A region that is the economic centre of
  a country.
• The National Policy led to the creation of an
  industrial heartland in central Canada, with the
  nation’s primary manufacturers centered in
  Toronto and Montreal.
• Tariff protection provided security for investment
  capital and allowed Canadian entrepreneurs to
  establish new industries that were not affected
  by American competition.

• The completion of the railway ensured that
  central Canada had easy access to markets in
  both the East and the West.
• By 1901, half of the country’s manufacturing was
  located in Ontario, with an additional one-third
  located in Quebec.
• Central Canada’s role as the industrial heartland
  has remained an economic reality for over 100
       The National Policy in the
• Hinterland-A region that provides the resources
  needed by the heartland.
• If the National Policy made central Canada the
  country’s financial and industrial heartland, it
  made the Maritimes and the West the nation’s
• In the beginning the CPR promised to bring new
  trade possibilities to Atlantic Canada.
• Nova Scotians anticipated an increase in
  commerce or business through the province’s
  ports due to the new railways.
• In theory, the ice-free
  Halifax harbour would
  be the port of call for
  ships that could not
  navigate the St.
  Lawrence River during
  the winter.
• Incoming and outgoing
  goods would pass
  through Halifax as they
  connected with the rail
  links to and from
  Montreal and Toronto.
• It appeared that the National Policy and the
  railway did indeed stimulate financial growth in
  the Maritimes, which saw growth in capital
  investments in the 1880s and 1890s.
• Recognizing the potential for large markets in
  central Canada and the West, Maritime
  entrepreneurs invested the money they had
  made in the shipping business in a variety of
  manufacturing ventures.
• Towns located along
  the Inter-colonial
  Railway, such as
  Moncton, Amherst,
  Truro, New Glasgow,
  and Sydney, became
  the hubs of this new
• Factories producing everything from iron and
  steel to textiles and pianos sprung up in these
• Maritime prosperity did not last.
• Some historians suggest that the consolidation
  of Maritime businesses by central Canada and
  international business interests led to the
  economic decline.
• Management decisions were based on profit and
  loss rather than economic well-being of Maritime
• Central Canadian firms began absorbing Maritime
  financial institutions and moving them to Toronto and

• This loss of important financial institutions was
  connected with the flight of investment away from the
• Another cause of economic decline in the Maritime provinces
  centred on the coal industry.

• In the late nineteenth century, the growth of Canadian urban
  centres increased the demand for coal.

• Once the manufacturing sector declined, the Nova Scotia
  economy turned to coal mining and other related industries of
  iron and steel.

• This industry was supported by protective tariffs

• In the early twentieth century, however, these protectionist
  measures were eliminated, allowing the industrial heartland of
  central Canada to import virtually all of its coal tariff-free while
  the domestic coal industry suffered.
• As prosperity in the Maritimes began to lag further
  behind economic success in other parts of Canada, a
  growing number of people began to move away from
  the region.

• Between 1881 and 1931, the Maritimes suffered a
  steady net migration: more than 500 000 people left in
  search of better opportunities south of the border in
  the Boston states also known as New England.
Does this out migration sound familiar?
The Impact in the West
•   Like the Maritimes, prairie communities did not develop into industrial centres that
    could compete with Montreal and Toronto.

•   Distance from the large markets of central Canada was a major factor in the growth of
    competitive industries.

•   Also, the immigration thought to follow after the completion of the railway did not
    happen immediately.

•   In fact, there was a net loss of migration.

•   The economic depression of the 1870s and 1880s reduced the demand for Canadian
    wheat in international markets.

•   This, along with the easy availability of land in the American West, temporarily slowed
    settlement on the Canadian prairies.

•   It was not until the changing fortunes of the 1890s and 1900s that the potential of the
    West began to be realized!
• The West did take advantage both of the railway and
  of federally subsidized shipping rates in order to
  develop its considerable wheat and grain-growing

• As a hinterland region, its primary role, like the East,
  was to provide a market for manufactured goods
  produced in the heartland.
•   The building of the railway and western settlement also impacted
    Aboriginal peoples and the Metis.

•   New settlers encroached on the lands that had been reserved for
    the Metis in the Manitoba Act of 1870, forcing them to move
    westward from Manitoba to Saskatchewan.

•   Accustomed to the way of life associated with following the buffalo,
    the Metis and First Nations found it difficult to adjust to farming on
    the small areas of land reserved for them as permanent settlements.

•   These people felt that the completion of the railway and expansion
    and settlement of the West, violated their treaties.
•   Metis family in 1908
A People’s Canada
     Ocean to Ocean
       Episode 10
        Scene 13
        8 minutes
•   Ocean to Ocean 1886
•   John A. Macdonald brought a _____________ to Crow Foot leader
    waiting his arrival.
•   What does Crow Foot really want? _____________.
•   The Aboriginal children were forcibly taken to _______________
•   How did Crow Foot’s 8 children die? ____________________.
•   Macdonald is brutally frank about _______________________ in
    the West.
•   How many times did Macdonald visit the West? __________.
•   What date did Macdonald die? _____________________.
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