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1500
Amerindian Trading
The Iroquois and Algonquins used the barter system, which means they traded and exchanged good with one another. The Iroquois would supply things like corn, squash, and tobacco whereas the Algonquins would supply furs and dried meats. They mainly traded things that were more difficult to get in their respective territories. Most of the trades were done by the Huron-Wendat who acted as middlemen. -
Period: 1500 to
Economy and Development
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Foundation of Tadoussac
Due to the increasing popularity of fur trade between the Europeans and Aboriginal people, Pierre de Chauvin (A French merchant) and and Pierre de Chauvin de Tonnetuit (A French navy captain) established a permanent trading post at Tadoussac. The fur trade took over the colonial economy. Pelts from numerous animals (mainly beavers) were sent to France, where they served could be turned into things like hats or jackets. -
European Fishing grounds
In this time, Peoples lives were controlled by the church. The church didn't like the population eating too much red meat so fishing became a necessity. They went to the Maritimes and fished so they would have things to eat instead of the red meat. The Amerindians grew angry because they felt it was their fish out of their food supply. -
Company of 100 Associates
Founded in 1627 by Cardinal de Richelieu. Roughly one hundred people financed the company and became shareholders. The company was granted monopolization, which meant that they would manage the fur trade for the New-France if they helped develop the colony (they failed). In 1628, one of the convoys was attacked by the British and they soon also attacked Quebec in 1629. The company wished to rebuild the Quebec trading post, however, their finances never recovered from the attack. -
The Compagnie des Habitants
The company was created by a group of merchants who lived in New-France in 1645. They eventually took over the monopoly of the company of 100 associates from 1645-1663. The company was inexperienced and was poor in its administration. It was eventually attacked by the Iroquois causing many more difficulties. -
Economic policy of Mercantilism
Mercantilism is the financial system where you export more than you import therefore accumulating more riches. This theory encourages the accumulation of gold and silver. France wanted to sell its manufactured goods without competition from its own colonies and export the greatest quantity of goods. -
Growth of Triangular Trade
The Triangular trade allowed France to get rich by taking advantage of the natural resources of its colonies and by selling manufactured goods to its colonies in exchange. Boats could not leave a port empty-handed and must be full of products or resource. -
Hudson's Bay Company
Pierre-Esprit Radisson and Médard Chouart Des Groseilliers explored Hudson Bay, where they attempted to establish a fur trade there. France refused to help them establish this fur trade so the men knocked on Britain's door who helped them found Hudson's Bay Company in 1670. They built numerous trading post in the area to prompt the fur trade. -
The Beaver Crisis
In 1690 the beaver economy was in trouble. Many people didn't want fur anymore because it was considered old fashion and the need for beaver pelts decreased however they were all piled up in warehouses in France. King made the merchants slow down the trade and eventually it regained its strength in 1715 because the fur was ruined by rodents and insects. -
Expansion of territory
Fur was gaining popularity, therefore, they needed more of it. To get the fur they needed, they would have to expand their territory. They expanded to the Great Lakes, the Prairies to the Rocky Mountains, Hudson Bay, the Ohio Valley and the Mississippi River to Lousiana. -
British Merchants Control The Fur Trade
After the Conquest, Scottish, English and American merchants settled in Montreal to practice the fur trade. They were able to take the fur trade from the french as they had much larger financial means to do so. -
Napoleon's blockade
Great Britain always got its wood from northern European countries. In 1806 French Emperor Napoleon I wanted to conquer all of Europe and due to his continental blockade, Britain could not get its timber. Great Britain had to go to Canada for its timer supply. -
Timber trade replaces fur trade
The timber trade replaces the fur trade and became the engine of the Canadian economy. This will cause the development of new regions and increase the influence of the British merchants class. It will also supply new jobs like loggers and workers for the sawmills. (farmers would do these during winter.) -
British Protectionism
Protectionism is an economic policy established by the government in order to protect the economy of the country or empire from foreign competition. Great Britain maintained the protectionism policy that favored the purchasing of resources from within their own colonies. -
Creation of the Bank of Montreal
The Bank of Montreal was created in order to encourage British merchants to increase their credit and invest. They could use this credit to grow their businesses and over time, gain more money. -
Reciprocity Treaty
The Reciprocity Treaty was signed in 1854 because of New-France needing a new trading partner. New-France and the United States signed a treaty to allow trade between the two countries. In 1864 the treaty ended and Canada had to look again for a new trade partner. Instead, they created the Dominion of Canada in 1867. -
First Phase of Industrialization
Skilled craftsmen were out of jobs as production lines took over. The work was long and boring, repeating the same task over and over. The machines they used where steam/coal engines. There were numerous new industries such as textiles and dairy (cheese). -
Second Phase of Industrialization
The second phase was helped by the conditions such as Quebec having many natural resources, Many rivers to help with the making of Hydroelectric and an abundant workforce. This resulted in the exploitation of natural resources and rapid expansion of industrial sectors. This phase was very big during 1914 to 1918 due to Canada's participation in the war effort, which stimulated the economy. (Last 1896-1929) -
Crash of the New York Stock Market
Over time, surplus accumulated in warehouses. To help the situation, companies started to produce less and proceeded to fire workers. This sequence of events caused the New York Stock Market to crash. This is what started the Great Depression. -
The Great Depression
The New York Stock Market Crash affected the economy of most of the countries of the modern world. It started a cycle of poverty that seemed inescapable. people got fired from jobs because bosses couldn't pay them but in reality, the bosses could pay because there was nobody buying, because nobody had jobs. The only people who were not too screwed over were farmers as they could still feed their families. -
World War II
World War II was a global tragedy however, it was wonderful for the economy. This is because with the war going on, countries needed people manufacturing the resources like weapons for the soliders to use. With the need for weapons, this created jobs and even over time, kick-started the economy. -
The Quiet Revolution
The quiet revolution started in Quebec after the defeat of the Union Nationale by Jean Lesage. It brought changes to Quebec. Afterwards, Agriculture became the most important and the main economic practice. This allowed farmers to make more money and become a more popular profession. -
Nationalization of Hydro-electricity
The government of Quebec decided to buy out most of the private electric companies and slowly integrated them into Hydro-Quebec and slowly nationalize the hydro-electric power. -
The Oil Crisis
The energy crisis leads to an increase in the price of oil. Many companies raise their prices causing an economic slowdown in the western world. It also caused an economic recession in 1981, ending it. -
NAFTA
NAFTA (North American Free Trade Agreement) was a treaty signed by the Canada, the US, and Mexico. It allowed free trade throughout the 3 countries in order to increase the economy of the countries.
