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1500
Trading System
The trading system was called the Barter system signifying simple trading of goods. The Europeans traded metal tools, beads, etc. for furs from aboriginals. Beaver pelts were of much higher quality than what is in Europe. The fishers received mostly furs, which they could easily sell on the European market and which became a second source of profit for them. Between the aboriginals Iroquoians traded their agricultural surplus for caribou hides, pelts or meat surpluses from the Algonquians. -
1500
First Occupants
In the 1500 the Europeans start sailing West because Eastern land routes are too dangerous, They hit NA, thought it was Asia and start basic trading with some aboriginal groups along the coast. Every summer these men would set up temporary camps on the shores and dried the fish that they would then take back to Europe.The Europeans fished for cod in Newfoundland and St. Lawrence.
This Leads to trade networks with aboriginals. Aboriginal people also contracted diseases carried by Europeans. -
Triangular Trade
Triangular trade was a french way of trading between France and its colonies such that ressources (raw materials) are sent to France to be processed into manufactured goods and sold back to the colony. France would send manufactured goods to New France and Antilles. New France would give fur, wood and fish to Antilles and France. Antilles would give sugar, rum, molasses and tobacco to France and would give sugar, rum, coffee and molasses to New France. -
Commerce and Exploration
Throughout the 17th century, the french sent many exploratory expeditions around Great Lakes and further south such as Mississippi and Ohio rivers. They built trading posts and forts on the banks of main waterways. These settlements served as warehouses, trade sites and military bases. Some administrators, such as Jean Talon, were in favour of this expansion b because they saw it as a way to guarantee French domination of the fur trade and helped contain the expansion of Britain’s 13 colonies. -
Company of the 100 associates
In 1627 the company of 100 associates controlled the fur trade. They were an association of 100 shareholders that invested Start-up capital. Each shareholder received a share of the profits from the fur trade. In exchange the company was required to populate and manage the territory. The king takes over in 1663 because the french state wanted to create a market in NF where it could sell it finished products and exploit the colony’s resources. This is mercantilism. -
King Louis XIV
King Louis XIV gets rid of the company of 100 associates in 1663. He does this in order to gain control over the economic activities in New France. He had two objectives: he wants to assert territorial claims in North America and he wants to set up crown corporations which were companies that were accountable to him, such as the Dutch West India Company. -
Jean Talon
After the establish of Royal Government, agriculture was the economic activity involving the largest number of people. Intendant Jean Talon wanted to therefore diversify the economic activities and reduce imports from france. He encouraged the inhabitants to diversify their agricultural production, he increased the number of seigneuries to increase the amount of farmed land,
he distributed weaving looms to some homes so they could make fabric and he encouraged the growing of linen and hemp. -
Creation of the Hudson's Bay
In 1659 two coureur de bois, Groseillier and Radisson decided to go to the territories northwest of the Great Lakes. to trade with a group of Aboriginals they had come to know well. They brought back high-quality furs but France was not interested in financing a commercial expedition to Hudson Bay. They went to the English Crown and funded a maritime expedition to Hudson Bay in 1668 creating the Hudson’s Bay Company in 1670. -
Beaver Crisis
Various groups explored the territory in the 16th century and developed trading relationships with the First Nations people. The fur trade became the main economic activity in New France. This will permit the expansion of the territory, but in the 1690s the beaver economy was in crisis. Fur-related fashion was not in demand. The demand for beaver pelts decreased. Fur trading was too intense and the pelts piled up in warehouses in France resulting in the King to order a slowdown of the fur trade. -
British Takeover
The 13 Colonies was smaller in territory with a larger population. Northwest company is created in 1783 to compete with the Hudson's Bay company. The fur demand declines, so the Northwest Company merges with the Hudson's Bay Company in 1823. Under the protectionist policy the colony will trade exclusively with the mother country (1760-1840’s) therefore rich French merchants leave and go back to France opening up opportunities for the British merchants coming in or some “Canadiens” who stayed. -
Important Acts in the 1800's
In 1846, Cron laws, which were duties and tariffs on imported agricultural products, designed to favour domestic producers were abolished. This caused a stop on preferential treatment towards British cereal merchants which forced wheat farmers to compete. In 1849, the navigation act was abolished allowing any merchant ship to have access to British ports. -
Napoleon Comes to Power
Napoleon had the desire to take over the whole world. He sets up a Naval Blockade around Britain which blocks the route to mainland Europe and is a problem for Britain because they need wood. Britain turns to British North America for ressources but BNA declines fur trade. Timber then becomes the main economic ressource. -
Bank of Montreal
The first bank in British north America was created in 1817. It is known as the Bank of Montreal. Since it allows access to credits business men can borrow money and get a loan to start a new business. -
Agriculture diversification
Family farms were still in existence but many now had a surplus or had to diversify their crops to sell on the market. In 1830’s/40’s dairy production rises which leads to the transformation of Quebec Agriculture in the 1900’s. Agriculture will experience many difficulties in the beginning of the 19th century. Great Britain will slowly stop buying wheat from Lower Canada. Outdated farming techniques, poor soil and poor weather conditions will cause an economic crisis in Lower Canada. -
First Phase of Industrialization
From 1850 to 1900 the first phase of industrialization occurred. Craftsmen take too long and are too costly therefore factories and assembly lines were introduced since they are more efficient and faster. Unions were looked down upon and it took a while for working conditions to improve. The first industries were powered by coal and steam engines. This created a movement of people from rural areas to urban areas, which is called urbanization. -
Reciprocity Treaty
In 1840 Great Britain abandoned its protectionist policies and adopted free trade. This affected the colonies because their economy depended on exports to Great Britain. The colonies must find new markets therefore they turned to the United States and signed the Reciprocity Treaty in 1854. This ensured a 10 year deal between British North America and the United States. British North America now has access duty and tariff free. -
Economic Crisis
In 1873 there was an economic crisis since the Canadian market was flooded with US goods. Several Canadian manufactures were unable to compete with the american market. In 1879, Prime Minister John A Macdonald tried to fix the situation by proposing The National Policy. Under this policy Canada will impose custom tariffs on imported manufactured goods. For Canadian consumers, local goods will cost less, therefore, more people will buy “made in Canada” which will stimulate the Canadian economy. -
The National Policy
In 1879, John A macdonald implemented the national Policy for 3 objectives. The first was an increase in protectionist tarrifs to protect Canadian industry. Secondly, the expansion of the railway network to help industrialization and transportation of immigrants to new regions. Lastly to stimulate immigration by creating a new consumer market and jobs and encouraging settlement in Western Canada. -
Second Phase of Industrialization
This phase lasted until 1929. Several favourable conditions helped this phase such as how Québec has many natural resources, many rivers to help with the making of hydroelectricity, and an abundant work force. New industries will flourish such as hydroelectricity, aluminium, minerals, pulp and paper. The energy used in this phase is hydroelectricity. Further regions besides the city will also expand and become more industrialized. The majority of foreign investors come from the United States. -
The Timber Trade
In 1900 timber replaces the fur trade.The lumber industry became the engine of the Canadian economy. In order to prevent the British from obtaining supplies on the European continent, Napoleon, imposed a continental embargo, forcing Great Britain to find a new source to obtain forest products. Great Britain quickly turned to BNA for timber supplies. Britain implemented preferential rates and the timber trade was so profitable, that a bank was created, The Bank of Montreal. -
The Great Depression
The Great Depression lasted 10 years from 1929 to 1939. In 1929 the New York Stock Market Crash will affect the economy of most of the countries of the modern world. Banks and factories closed their doors, many bankruptcies occurred, the number of unemployed workers grew and grew and we estimate that 25% of the population was out of work. During the Depression the government intervened little in the economic development but in the 1930's the state put economic and social measures which helped. -
New Deal by Benett
The New Deal by Bennett created an economic growth after the Depression. The Federal government increased duties and tariffs, created public works, subsidies to the unemployed, grants and subsidies to companies and work camps for bachelors. The Church had soup kitchens for the poor, free milk for kids and YMCA which was a place to sleep for the night. The Provincial government had direct Aid, law encouraging people to go back to the land and law reducing the amount of working hours in a week. -
War Production
The war production lasted from 1939 to 1945. Allies relied on Canadian industries to supply them with foodstuffs and military equipment. With the declaration of war, the economic crisis of the 1930s disappeared. Women started working in factories and goods were rationed. There was also a decline in the unemployment rate which means people were now getting jobs. -
Quiet Revolution
Québec experienced major political, social, cultural and economic changes. The state took charge of the management of education and health, and thus became a welfare state. The state invested sums to construct new institutions and public infrastructures. The government pumped funds into the economy, enhanced the purchasing power of consumers and created jobs. In the 1960s and 1970s Quebecers gradually became aware of the domination of their province’s economy by foreign companies. -
North American Free Trade Agreement (NAFTA)
In response to the recessions of the 1980s, the Canadian market was not large or competitive enough to sustain economic growth. To enlarge markets the Canadian government wanted to increase trade with the United States. In 1989, the Canada-United States Free Trade Agreement (CUSFTA) came into effect eliminating all customs duties between Canada and the United States. The treaty was renegotiated to include Mexico and the North American Free Trade Agreement (NAFTA) came into effect in 1994.
