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1500
Barter System
The natives used the barter system. They bartered for resources the could not find on their own piece of land or for items they could not make themselves.Through barter, they also forged alliances that were both economically and politically beneficial. This trade network extended all over the North American continent. -
1500
The Snow Shoe
A snowshoe is a footwear for walking over snow. Snowshoes work by distributing the weight of the person over a larger area so that the person's foot does not sink completely into the snow. This mode of transportation mad it easier for the natives to survive the winter's in Canada and helped them hunt and chase after animals without sinking. -
1500
The Canoe
the canoe was the Natives' only mean of water transportation. They were made big to carry furs across rivers and to store belongings and to fit many people inside. That's why it was important that people setting up permanent settlements or trading posts built their permanent settlements or trading posts near water so the Natives could easily access it. The birch tree was indispensable to the Indian and the voyageur. Its bark made the best canoes. -
Period: 1500 to
Economy and Development
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Mercantilism System
Mercantilism is an economic theory. There is a fixed amount of wealth in the world and that a nation's prosperity depends on its success in accumulating wealth by exporting more than it imports, thereby earning profits from its exports. They would be more wealthy if the imported as much as they exported or even importing for than they exported. -
One Hundred Associates
Charted company system based on privileges. The people who worked for these companies where the only ones who were allowed to hunt and kill animals for the fur trade. They also had obligations like develop the colony, but they failed. -
The Hudson’s Bay Company
Pierre-Esprit Radisson and Médard Chouart Des Groseilliers explored Hudson Bay where they tried to establish a fur trade. They created the company because of the lack of support from France while they tried to establish the fur trade. The company built trading posts throughout the entire region to engage in trade with the Cree nation. -
The beaver crisis
In 1690, the beaver economy was in crisis. Fur-related fashion became an old trend and the demand for beaver pelts decreased. Beaver pelts began to pile up in warehouses in France. The king then ordered a slow down of the fur trade, however, it regained it's strength after 1715 when the old stored furs were ruined by insects and rodents. -
Creation Of The North West Company
Founded in 1783, the North West Company was a major force in the fur trade from the 1780s to 1821. Managed primarily by Highland Scots who migrated to Montréal after 1760, or came as Loyalists escaping the American Revolution. The North West Company was created in order to compete against the Hudson's Bay Company. -
Decline of the fur trade
The decline of the fur trade had multiple causes: (1) There was no longer demand for it in Britain, (2) there was war in Europe and less focus on commerce, (3) Britain was more interested in timber than fur, (4) the growth of the timber trade reduced the hunting grounds, (5) the union of the North West Company and the Hudson's Bay Company hurt the relations with the Natives, who were their main source of fur. -
Timber Industry -- Blockade by Napoleon
Great Britain could no longer import timber from Northern Europe because of Napoleon's Continental Blockade. British merchants invested in the Lower Canada logging industry to encourage the timber trade. They also opened the first banks in Montréal and Québec. Around 1810, timber exports from Lower Canada exceeded fur exports. The fur trade was now in decline. -
The Development Of New Regions
The timber trade affected the territory of Canada because it encouraged the colonization of new regions, such as Outaouais, Saguenay, Lac St. Jean, and Mauricie. They were also crossed by waterways that allowed for timber transportation and activating sawmills to get hydraulic energy. -
Creation of the Bank of Montreal
The Bank of Montreal was created in order to allow the British merchants to have access to credit and investment. They could use this credit to grow their business and eventually to industrialize. -
The Lachine Canal
The Lachine Canal was built in Montréal in Saint-Henri on the St. Lawrence River. This canal was very useful because ships were bringing in goods and goods where being exported as well. It was very beneficial for Québec's economy and in fact, this Canal helped develop the economy. -
Reciprocity Treaty
The United States became Canada's trading partner because it had a rapidly growing economy and a lot of demand for timber and farming produce. The Treaty of Reciprocity solidified this deal and was a free trade agreement between them. It lasted for ten years until it was canceled by the United States. -
First Phase Of Industrialization
depended on coal as a source of energy. This phase was characterized by the mechanization of labor and the growth of the manufacturing industry. A vast railway system was build during the first phase and canals were widened to facilitate the distribution of goods. Workers during this time lived horrible conditions with low pay and the business middle class grew rich. -
Contemporary Period
Exploitation of resources by sector and by the period (agriculture, forest, mining, hydroelectricity, etc.). natural resources are exploited (ore, pulp & paper)
Birth of Crown corporations which are government owned by the British. -
National Policies
John A. Macdonald, the first prime minister of Canada attempted to fix the economic crisis started in 1873 with a 3-part policy.
1. Increase Custom Duties: Protect/Promote Canadian Industries by ensuring Canadians bought Canadian goods.
-Build Railways: The Canadian Pacific Railway was to run coast to coast, unify people, increase trade.
-Encourage Immigration: Especially in Western Canada, bigger population = bigger market. -
The Dairy Industry
Agriculture developed and modernized a lot with industrialization, as farmers started using more efficient tools. The sector that developed the most was dairy, which was sold locally and exported (to Britain and the US mainly). Farmers produced milk, butter, cheese, and cream. The dairy industry came after the meat industry. -
Second Phase Of Industrialization
This phase depended on hydroelectricity. thanks to this source of energy-heavy industries like metal works and pulp and paper mills emerged and the variety of electrical consumer goods increased which was great for the economy. Industrialization led to increasing urbanization. Also during the second phase, airplanes were invented! -
The roaring twenties
The twenties were a time of economic prosperity. After the first world war, industrial production was up and Europeans were pumping money into the world economy. At the time, many new products were on the market, like the radio and nice cars and people were making a lot of purchases, making the companies more successful. This resulted in companies producing more products to respond to the buying demand. -
The Great Depression
This event caused major economic consequences. Many companies went bankrupt, factories and companies closed down and many jobs were lost. This period marked the beginning of state intervention in the economy. Foods were scarce and people were starving. -
Government solutions towards the great depression
Governments financed major public works, work camps, direct aid, and encouraged farming. However, it was the Second World War that really solved the economic crisis. -
Second World War
This war ended the Great Depression. Canada had allies (like Great Britain) in Europe, and they sent food and military supplies. This stimulated the economy, increasing industrial production. The government also raised taxes and introduced victory bonds (people lend money to the government that's paid back with interest). There's the expansion of textiles, food, iron, and other natural resources. -
Quiet Revolution
La Révolution Tranquille began in Quebec in 1960 with the electoral defeat of the Union Nationale by Jean Lesage and his Liberal Party. The Quiet Revolution undoes all the changes Maurice Duplessis did, which were all good things like making agriculture the number one export in Québec and the main economic activity, so farmers were always working and making money. -
Hydro Québec
The main sector that the economy of Quebec was focused on was Hydroelectricity, because Quebec had a lot of waterways, so it was ideal for this. So, to encourage Quebec business, the government integrated private companies into one public company: Hydro-Quebec which is government-run. Québec became the world leader in hydroelectricity. -
Oil Crisis
The energy crisis leads to an increase in the price of oil. Unemployment is increased due to the lack of this crucial resource. A recession took place in 1981 to end the crisis.
