Economy and development

  • 1500

    The Europeans fisheries

    The Europeans fisheries
    -John Cabot discovered Newfoundland in 1497
    Bretons and Basques fished cod near Labrador and Newfoundland
    -This happened in the 16th century
    -Catholics weren’t allowed to eat meat for almost 100 days (abstinence days)
    -Fishermen weren’t able to transport fresh fish back to Europe because it was too far
    -They had to dry and salt the fish
    -The Basque whale-hunters went to Newfoundland to render the animals’ fat to make oil
    -They met up with Amerindians and made trades
  • 1500

    Trades between the Amerindians'

    Trades between the Amerindians'
    -Iroquois gave farming surplus
    -Algonquians gave their hunting surplus
    -The trades happened on the Algonquian bands’ summer camps
    -They were great merchants
    -They were middlemen for the trades
    -These trades happened in the Great Lakes region, the Outaouais, the St. Maurice Valley and the James Bay
  • Period: 1500 to

    Economy and development

  • Fur trades

    Fur trades
    -The Amerindians traded fur and animal pelts (moose, otter, fox, bear)
    -The European traded metal objects
    -The Amerindians and Europeans had different values
    -The profit generated by sales of pelt is superior to the profit generated by fishing
    -The King named him “ship owner” in the St. Lawrence Valley
    -He made a trading post in Tadoussac in 1600 which was deserted in 1601
    -They became outnumbered by the Amerindians
    -They couldn't establish in the territory and develop it (alliances)
  • The economy of fur

    The economy of fur
    -1600-1663: King of France granted a monopoly in the fur trade to merchant companies (French formed alliances with Aboriginals)
    -1663: King cancelled the monopoly because there were too many difficulties during the fur trades
    -1670: the French trade network went westward and south of the Great Lakes (the French built forts -- trading posts)
    -1690: too many colonists were involved in the fur trades, which threatened the seigneuries and the cost of the pelts fell
    -This caused a crisis
  • The Company of One Hundred Associates

    The Company of One Hundred Associates
    -Cardinal Richelieu founded this company in 1627
    -It was financed by 100 French shareholders (Samuel de Champlain and others)
    -The company rebuilt the Québec training post
    -The finances never recovered from the attack though
    -1628: a large convoy of men and merchandise was attacked by the British
    -1629: they seized Québec
  • The Compagnie des Habitants

    The Compagnie des Habitants
    -It got created by merchants
    -It got created in New France
    -This company took back the monopoly from The Company of One Hundred Associates from 1645-1663
    -It encountered difficulties due to lack of experience
  • The French West India Company

    The French West India Company
    -It was founded by Jean-Baptiste Colbert, who was a minister for Louis XIV (1664)
    -This company took over the trade monopoly and beaver pelt exports
    -There was now poor management and strong competition from the Dutch companies
    -The company dissolved in 1674
    -After that point on, no other company had a monopoly on fur trade and fur exports
  • Hudson's Bay Company

    Hudson's Bay Company
    -Pierre-Esprit Radisson and Médard Chouart Des Groseilliers explored Hudson Bay
    -They tried to establish fur trades
    -In 1670, they founded "Hudson's Bay Company" because the French didn't support them
    -They built trading posts throughout the whole region
    -They engaged trades with the Cree nation
    -France and Great Britain had a big rivalry (fur trades)
    -Their rivalry ended with a series of land and sea battles
  • The beaver crisis

    The beaver crisis
    -The beaver economy was in crisis
    -Fur was passé
    -The demand for beaver pelts decreased
    -Fur trading was too intense and too stressful
    -The pelts started piling up in warehouses in France
    -The King demanded them to slowdown the fur trades
    -After 1715, the trades increased again because the previously stored furs were ruined by rodents and insects
  • The expansion of the territory

    The expansion of the territory
    -In order to find fur, many people started exploring the North American continent
    -Adventurers travelled on the waterways
    -They later on explored the Great Lakes, the Prairies (until the Rocky Mountains), Hudson Bay, the Ohio Valley and the Mississippi River (until Louisiana)
    -The British fought with the French over many new discovered regions
    -They each built forts to protect its commerce against their opponents
  • Agriculture during the French Regime

    Agriculture during the French Regime
    -Most people were involved in agriculture
    -It was a subsistence activity
    -Most people ate wheat, which explains why wheat was the main crop
    -The population slowly increased
    -The cultivated territory expanded as well, while the population increased
    -Children, especially from larger families spent their time clearing new lands in lots that the lord gave them
  • Currency

    Currency
    -New France used the currency of France (the pound divided into 20 sold and 240 deniers)
    -Sometimes, there was no cash for them to exchange, so they exchanged animal pelts and wheat
    -Jacques de Meulles issued the card currency which consisted of playing cards
    -The intendant would usually put a value which could be exchanged for cash when the ships arrived from France
    -1760: the Conquest
    -Canadians couldn't get their paper money reimbursed by France
    -Canadians received 1/4 of its value
  • Obstacles to diversification

    Obstacles to diversification
    -New industries suffered many problems
    -They had higher production costs, a lack in capitals, a weakness of local markets and rare specialized labour
    -This made it more expensive to buy certain things, such as ships in New France compared to France
    -Most of the metals for ships had to be imported from France
  • Change of Empire + Economic Impact

    Change of Empire + Economic Impact
    -After the Conquest: Great Britain merchants + the 13 colonies settled in Québec and Montréal (colonial economy + fur trade)
    -1783: treaty of Paris
    -Great Britain gave up areas south of the Great Lakes to the United States
    -Montréal marchants created the Northwest Company to compete with the Hudson's Bay Company (west of the Great Lakes)
    -Montréal was the capital of the fur trades
    -1821: the two companies merged
  • Decline in the fur economy

    Decline in the fur economy
    -After the Conquest: Scottish, English and American merchants settled inMontréal for the fur trades
    -They had better financial means than the French Canadians
    -They hired French Canadian voyageurs who were very knowledgeable about the territory and the Amerindians
    -They increased they fur supply in the Great Lakes region and in the Ohio and higher Mississippi Valleys
  • Capitals

    Capitals
    -The means of production were concentrated in the hands of a small number of companies
    -These companies were so powerful that no one could compete
    -These capitalist owners formed the industrial bourgeoisie
    -Companies borrowed money from banks to build infrastructures
    -End of 19th century: the banks merged
    -American investments grew while Great Britain declined
    -This helped the economic and industrial growth
    -They depended on the States
    -The States also helped Canada with its exports
  • Transportation infrastructure

    Transportation infrastructure
    -There was a great need to build transportation infrastructures at the beginning of the 19th century
    -The Great Lakes region (Upper Canada) experienced difficulties shipping its farming surpluses to Lower Canada because of the rapids between Lake Ontario and Montréal
    -1825: the built the Erie Canal in the United States
    -The Canadian government started financially supporting private initiatives to build these transportation infrastructures
  • Economic impact of industrialization (1st phase)

    Economic impact of industrialization (1st phase)
    -The 1st phase (1860-1896) depended on coal
    -The 1st period was characterized by the mechanization of labour and the growth of the manufacturing industry
    -A railway was built and canals were created
    -1880: industrial ares appeared along the Lachine Canal
    -Workers were given low wages and worked in difficult conditions
    -The business class kept on growing
    -1890: workers fought for their rights to improve working conditions

    -This was the beginning of unionization
    -Labour unions were created
  • Transformation of agriculture

    Transformation of agriculture
    -Great Britain could no longer produce enough food to meet its needs
    -It started buying food from Canada, especially wheat
    -Upper Canada produced wheat
    -Lower Canada cultivated oats, potatoes, barley and hemp
    -There was a growth of animal husbandry and dairy production
    -Milk, butter and cheese industries developed closer to the cities and to the railroads
    -Agriculture also developed in the regions of Saguenay Lac St. Jean and the Mauricie
  • Expansion of timber economy

    Expansion of timber economy
    -1806: Great Britain could no longer import from northern Europe because of Napoleon's Continental Blockade
    -British merchants invested in the Lower Canada logging industry and opened the first banks in Montréal and Québec
    -1810: timber exports from Lower Canada exceeded fur exports
    -1820-1850: lots of constructions (canals, locks, railways and roads)
    -Many trades with the United States happened and the amount of domestic trades continuously increased
  • Work Relations

    Work Relations
    -Industrialization created the working class
    -Workers formed unions because of horrible working conditions
    -1872: the federal government authorized unionization
    -1885: the government refused to legislate because of the economic growth
    -1885: Government of Québec adopted the Provincial Manufacturing Law which limited the # of hours workers worked and imposed a minimum age for workers
    -20th century: they started training workers which made education an essential condition of employment
  • Economic liberalism from protectionism

    Economic liberalism from protectionism
    -1815: United Kingdom introduced protectionist policies
    (favouring the purchase of raw materials for the factories)
    -1846: British adopted free trade
    -Canada found a new economic partner: the United States
    -1854: Canada and the United States signed a free trade agreement, the Reciprocity Treaty
    -1865: the Reciprocity Treaty ended
    -1867: the dominion of Canada was created with the United Canadas, New Brunswick and Nova Scotia
  • The creation of canals

    The creation of canals
    -Waterways were unnavigable
    -They decided to create canals facilitated the the circulation of steamboats
    -The first canal was the Lachine Canal in Montréal (1821-1825) on the St. Lawrence River
    -This area later on became a major industrial zone
    -Then, there was the Rideau Canal between Ottawa and Kingston (1826-1832) connecting the Ottawa River to Lake Ontario
    -Finally, there was the Chambly Canal on the Richelieu River at St. Jean (1833-1843)
  • The merge of the companies

    The merge of the companies
    -Montréal merchants joined and formed the Northwest Company which redirected the fur trade to the northwest and competed against the Hudson's Bay Company
    -The goal of all this was to expand the territory
    -It eventually reached the Arctic Ocean, the Rocky Mountains and the Pacific Ocean
    -All these companies started competing
    -There was lots of rivalry
    -1821: the two companies merged
    -The fur trade was based in Hudson Bay and no longer Montréal
  • The railroad

    The railroad
    -It met the same needs as canal construction
    -The first railroad route was created in 1836 connecting the South Shore of Montréal to St. Jean of Richelieu (short distance)
    -In the coming years many bigger railroads were created
    -1848: a railroad connecting Montréal to Portland, Maine which allowed Montréal to access the sea all year long
    -1851: "Great Trunk Railroad" which connected Sarnia, Ontario to Montréal and Rivière-du-Loup
  • Economic development

    Economic development
    -Until the 19th century: Canada's economy relied on timber, agriculture and fishing industries
    -Most products were produced in Great Britain or in the United States, which meant there were fewer processing industries
    -1850: industrialization expanded rapidly
    -Early 20th century: a second phase began
  • National Policies

    National Policies
    -Canada's first Prime Policy was put into place
    -The national policies were
    -- encouraging immigration, especially in Western Canada to stimulate growth
    --Improve railway transportation to assure better circulation of goods and people
    --Impose custom tariffs of 25% to 30% on the importation of manufactured goods in order to protect Canadian industries from competition and to finance the construction of railway lines
  • Economic impact of industrialization (2nd phase)

    Economic impact of industrialization (2nd phase)
    -Hydroelectricity was one of the main discoveries during the second phase of industrialization
    -Hydroelectricity helped heavy industries (metalworks and pulp and paper mills) and many electrical consumers (light bulbs and radios) increase
    -Americans played a big role during the second phase of industrialization, by investing in multiple capitals after World War 1
  • The primary sector

    The primary sector
    -Agriculture didn't always meet people's needs
    -1930's: mechanization of farm
    -After World War 2: the countryside was electrified and got electric power and electric appliances (refrigerators)
    -Mechanical milk extraction devices also appeared
    -Agriculture became diversified
    -Farmers became specialized in dairy production or even animal husbandry
    -The # of farmers decreased while production increased
    -Natural resources were developed
    -Many mines were opened
  • The secondary sector

    The secondary sector
    -Light industries producing leather, shoes, clothing, tobacco and food were discovered
    -1900's: other industries which were export-oriented also got discovered; the pulp and paper and other wood-processed products (newsprints); ore processing (aluminum); transportation material (for railroads)
    -The textile and the clothing industries suffered from strong competition from other countries such as India, China and Mexico
  • The tertiary sector

    The tertiary sector
    -Jobs in the fields of administration and finance were numerous
    -A new class of work was created: the office work
    -Consumption increased, retail activities multiplied and retail chain stores opened competing against small merchants
    -This created many social services, health and education jobs
    -Tourism and leisure developed
    -These were all concerned in the urban sector
    -Many of these jobs required fewer qualifications and were not well-paid
    -Women were generally salespeople or cashiers