Economy and Development

  • Oct 27, 1500

    First occupants

    First occupants
    The different nomadic and sedentary Aboriginal groups used the barter system, (they traded goods). These goods were transported often great distances, along traditional routes, taken with them as they travelled. In this way, peoples that lived along the St. Lawrence could obtain shells from the Gulf of Mexico or the Atlantic coast and copper from the north of Lake Superior.
  • Oct 27, 1500

    Fish becoming the main natural resource

    Fish becoming the main natural resource
    In the 15th and 16th centuries, the majority of Europeans were Catholics and observed fasting periods prescribed by the Church. On these days of abstinence they were not allowed to eat meat, but could have fish. In some parts of Europe there could be more than 100 days of abstinence every year. Therefore, fish quickly became popular protein.
  • Oct 27, 1500

    Fish

    Fish
    During the 16th century fishing boats from Spain, England and France travelled to the coast of North America, fishing primarily for cod and whale. Every summer these men would set up temporary camps on the shares and dried the fish that they would then take back to Europe
  • Oct 27, 1500

    North America's role in the European economic system

    North America's role in the European economic system
    In the late 16th century, the French realized that the beaver pelts that fishers exchanged with Aboriginal peoples had far higher value in Europe. The fur trade was now seen by French merchants as a new as to get rich. The French state therefore allowed merchants and ship owners to invest large sums of money in building a network of fur trading posts in the colony.
  • Oct 27, 1550

    A Trading Post Colony

    A Trading Post Colony
    Mercantilism and the need for resources led France to colonize North America. In the late 16th century, various groups explored the territory and developed trading relationships with the FNPs. After a few years of competition between merchants, the king decided to bring order to their activities. He granted commercial monopolies to individuals, who in turn had to protect France’s rights to the territories.
  • Commerce and exploration

    Commerce and exploration
    Throughout the 17th century, the French sent many exploratory expeditions around the Great Lakes and further south, along the 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.
  • Alliances and Rivalries

    Alliances and Rivalries
    The French had rivals in North America. Since the early 17th century, the English had supplied arms and goods to the Iroquois Confederacy, whose aim was to destroy the Huron, who were the French allies.
  • Commercial and Craft Activities

    Commercial and Craft Activities
    Beginning in the 17th century, crafts people first settled in the cities. As the population grew, a rural market developed. In the cities, a wider range of occupations emerged, such as wigmaker, gold and silversmiths and coppers.
    In the 18th century merchants began to settle in rural areas. Their stores offered a variety of products imported from Europe. Agricultural products that the merchants received as payment were often sent to the cities.
  • The Charter Company System

    The Charter Company System
    From 1601 to 1627, monopolies followed one after the other, but only a small handful of French people settled in the colony. Monopoly holders did not consider it profitable to invest in settlement because only a few employees were needed to manage and send furs to the mother country. The state made it requirement that the holders of fur trading monopolies must populate the St. Lawrence Valley.
  • Fur Trade

    Fur Trade
    The fur trade that would lead the French to settle permanently in the territory.
  • The Charter Company System

    The Charter Company System
    In 1627, the Company of One Hundred Associates was created. The Company Was an association of a hundred shareholders that invested startup capital. Each shareholder was to receive a share of the profits from the fur trade. In exchange, the Company was required to populate and manage the territory.
  • Alliances and Rivalries

    Alliances and Rivalries
    Divided and weakened by illness, the Huron were decimated through war with the Iroquois between 1648 and 1650. The Algonquians continued to trade furs with the French, but they too clashed with the Iroquois. The French and Iroquois entered into a peace treaty that spanned from 1667-1680. During this peace treaty the coureurs de bois, French merchants began to explore the Great Lakes region in search of less expensive furs.
  • Mercantilism

    Mercantilism
    The French state took over the administration of the territory. At the end of the 17th century the mother country adopted policies designed to increase the colonies population and diversify its economy. The French state wanted to create a market in New France where it could sell its finished products and exploit the colony's resources
  • Mercantilism (continuation)

    Mercantilism (continuation)
    Mercantilism is based on a nation's accumulation of wealth. This was achieved by colonizing territories that had resources that the mother country could export. These resources would be then changed into products which their mother country could sell to colonists for profit.
  • Diversified Economic Activities

    Diversified Economic Activities
    After the establishment of the Royal Government the population went from 3400 to 74000, thanks to the arrival of the Filles du Roi, soldiers and engages in the colony.
  • Hudson's Bay Company

    Hudson's Bay Company
    The two explorers returned with detailed information about the territory and brought back high-quality furs, but were unable to convince the French authorities to finance a commercial expedition to Hudson Bay. They therefore decided to offer their services to the English crown, which funded a maritime expedition to Hudson Bay in 1668, thus creating the Hudson’s Bay Company (HBC).
  • Shipbuilding and Ironworks

    Shipbuilding and Ironworks
    A royal shipyard was established in Quebec City, used primarily to build warships. The naval industry led to the creation of other industries related to boats, such as tar, rope and barrels.
    The availability of iron ore in the Trois-Rivieres region was the basis for the establishment of the Saint-Maurice ironworks. The number of the colony’s inhabitants grew steadily and their needs also grew. Like with the shipyard, the creation of ironworks lead to related industries.
  • Treaty of Paris

    Treaty of Paris
    The British took possession of the of the former French colonies.
    Now Quebec will get English policies.
  • Competition Between Two Trading Companies

    Competition Between Two Trading Companies
    In 1774 the British Parliament adopted the Quebec Act, expanding the territory to include the region around the Great Lakes. As the trading territory expanded, competition for the furs grew. In 1779 a few Montreal merchants established the Northwest Company as a way to participate in the competitive trade. The company consisted of English, Scottish and Canadien merchants whose main goal was to compete with the Hudson’s Bay Company.
  • Changes in Agriculture

    Changes in Agriculture
    After the passing of the Corn Laws in the early 19th century, tariffs encouraged the growing and export of wheat. In addition to increasing numbers of immigrants and new technologies, the farm system was pushed to diversify.
  • Economy Based on Timber

    Economy Based on Timber
    Napoleon sets up a naval blockade preventing Britain’s access to timber from mostly Europe.
  • Free Trade

    Free Trade
    Corn Laws were abolished which had guaranteed preferential tariffs to cereal merchants on the British market.
  • Free Trade

    Free Trade
    The Navigation Acts were also abolished, now merchant ships, regardless of their country of origin could have access to British ports
  • Economic Factors Related to Confederation

    Economic Factors Related to Confederation
    In 1867, the British colonies in North America joined together to form a confederation. Four economic factors would lead the colonies to unite to form the Dominion of Canada:
    Great Britain abandoned its protectionist policies and adopted free trade. The colonies would have to develop trade relations with one another in order to cope with international competition.
  • Economic Factors Related to Confederation (continuation)

    Economic Factors Related to Confederation (continuation)
    The first phase of industrialization, which began in the 1850s, strengthened economic ties between the colonies, since they now had access to a vast transportation network.
    In the 1860s, the United States wanted the territories situated in the west of United Canada. This threat of expansion encouraged the colonies to consolidate
    In 1866, the United States cancelled the Reciprocity Treaty. This treaty allowed United Canada to trade raw materials without having to pay customs duties
  • Economic Factors Related to Confederation (continuation)

    Economic Factors Related to Confederation (continuation)
    The political and economic institutions established in 1867 encouraged a concentration of capital that would ensure the financing of the construction of a railway network. The railway quickly became the center of the Dominion’s economic development. By connecting the provinces, it allowed for the settlement of new territories and the consolidation of the canadian presence near the American border. The railway network also made it possible to enlarge the Dominion’s domestic market
  • Economic Factors Related to Confederation (continuation)

    Economic Factors Related to Confederation (continuation)
    The railway made it easier to transport the good from the industrial centers and allowed for better distribution of those goods.
  • Railway

    Railway
    When Macdonald came to power in 1878, he made it a priority to complete the Canadian Pacific Railway (CPR) line.
    Connects Canada from East to West. The canadian government paid many subsidies to the companies in the charge of developing the railway. The CPR was completed in 1885 and became essential for the colonization of the territory in the west.
  • First Phase of Industrialization

    First Phase of Industrialization
    Mostly British capital used to finance the new industries
    Industrialization came to Quebec in the last third of the nineteenth century. Factories employed cheap, unskilled labour to operate machinery that mass-produced goods quickly at a low cost (Emergence of capitalism)
    Skilled craftsmen (too costly, too long)
    Shift to assembly line work (more efficient but boring and dangerous)
  • First Phase of Industrialization

    First Phase of Industrialization
    Several factors encouraged industrialization in Quebec. Both people moving to the cities from rural areas and immigrants arriving from Europe provided plenty of cheap labour. The Saint-Lawrence river, the canals, and the new railways formed a good transportation system. Raw materials such as wood, leather, and farm products were plentiful. The rivers and Lachine canal provided water power for driving machinery. The first manufacturing industries were powered by coal/steam engines.
  • First Phase of Industrialization

    First Phase of Industrialization
    The main types of early manufacturing industries were:
    Food and processing: flouring milling, sugar refining, meat packing, brewing, butter and cheese, Qc farms shift to dairy production.
    Leather: tanning, boots and shoes.
    Textiles: spinning and weaving, clothing.
    Tobacco: cigars, cigarettes and chewing.
    Transportation equipment: engines, bridges and railway materials.
    Wood: Sawmills produced lumber, pulp and paper, furniture, windows and doors
  • Development of Dairy Industry

    Development of Dairy Industry
    Dairy productions was the agricultural sector that experienced the greatest progress. In addition to milk, farmers produced butter, cheese and cream. More than 80% of cheese production was intended for export, whereas butter was mainly sold in the local market. To support the growth in the dairy industry , the government encouraged the establishment of specialized schools in areas like Saint-Denis.
  • The Manufacturers Act

    The Manufacturers Act
    It included clauses which provided for the protection of the health and security of workers.The Act also established a minimum age factory workers of 12 years old for boys and 14 for girls. It also forced employers to limit work hours to 72.5 hours per week for me and 60 hours for women. Workers were also powerless. The situation led to the creation of labor organizations.
  • Second phase of Industrialization

    Second phase of Industrialization
    Canadian industries, experienced growth as a result of the protectionist tariff policy started with the National Policy. This second phase of industrialization, which lasted from about 1900 to 1929, was primarily characterized by the quick expansion of industrial sectors which had developed due to new energy sources: hydroelectricity and oil.
  • Three conditions for industrialization

    Three conditions for industrialization
    1 Wheat Cultivation of wheat expands in the west
    Helps Canada recover from the economic crisis
    Access to cheaper means of transportation
    The availability of fertile land and the growth of the population pool due to immigration
  • Three conditions for industrialization

    Three conditions for industrialization
    2 Foreign Investment: Governments tried to support industrial development by attracting foreign investors, especially from Great Britain and the United States. Anyone deciding to invest in the natural resources sector enjoyed privileges. The supply of foreign capital led to the modernization of industrial infrastructures and the creation of jobs.
  • Three conditions for industrialization

    Three conditions for industrialization
    3 First World War The country became one of the major suppliers for the allied troops.
    During the war developed sectors such as mining, iron and steel, clothing, etc.
    The agricultural sector also benefited from the war as the demand for wheat and pork, intended primarily for the soldiers, grew rapidly.
    Modernization of factories.
    A consumer industry.
  • Electricity

    Electricity
    In the cities, electricity powered, among other things, the streetcar networks. Urban transportation became more accessible, while its coast decreased. People thus no longer needed to live near their place of work. Cities slowly encroached on the surrounding agricultural land. Electricity also offered greater comfort to wealthy residents who could buy lamps, ovens, vacuums, refrigerators, and other products.
  • Workers Demand

    Workers Demand
    In order to counter the influence of foreign unions, the Catholic Church decided to support the establishment of the Confederation of National Trade Unions.
  • The Great Depression

    The Great Depression
    The europeans pumped money into the world economy. Surpluses accumulated in the warehouses. Laid off workers, which lowered the value of the companies on the stock market. Investors stop investing. Black Tuesday 1929. The root of the crash was an overproduction problem. Beginning of a recession.
  • The Great Depression

    The Great Depression
    Beginning of a recession. Overproduction and accumulation - fall of prices - loss of investor confidence - decline in stock values - companies not profiting - production decline - layoffs and unemployment - weak consumer purchasing. The effects of the stock market crash were felt for almost a decade. Between 1929 and 1933 Canadian exports fell by 50%. In 1933, when the Great Depression was at its worst, more than a quarter of Canada’s active population were out of work.
  • The Great Depression

    The Great Depression
    Most sectors affected but wheat was hit really hard. Modernization of agriculture cause farmers to upgrade on credit/loans. Situation made worse by drought and plague of insects.
  • War production

    War production
    National resources mobilization act. Regulated the supply of certain products necessary for war production and it raised taxes. Victory Loan Bonds, by contributing to this program consumers could earn profits on their savings while lending money to the government, which it invested in the war effort. In Quebec, this rapid expansion was seen especially in textiles, food processing and iron and steel, as well as the extraction and processing of natural resources