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Oct 27, 1500
Aboriginal Trade Network
Around 1500, the different nomadic and sedentary Aboriginal groups used the barter system, meaning they traded goods based on one's needs(The resources available to the Aboriginals varied based on where they lived). These goods were transported often great distances as they traveled to various regions on their trade routes.
Trade was essential to building and maintaining relationships between them. (For example: It was a way to formalize meetings between chiefs and helps peace negotiations.) -
Oct 27, 1500
European Fishing
Due to the influence of the Church, many people had to fast throughout the year, therefore not being allowed to have meat. However, they could eat fish(but they were running out due to high demand). European fishers quickly took control of the waters in Newfoundland when hearing of the massive amounts of fish that were there. They saw great profitability in selling fish. Every summer these men would set up temporary camps on the shores and dried the fish that they would then take back to Europe. -
Oct 27, 1500
Contact With Aborignals
When the Europeans dried their fish ashore, initial contact with Aboriginals was made. Objects made in Europe, such as metal tools, were gradually introduced to the Aboriginal communities. Native peoples valued these new objects and they circulated them throughout their own trade networks. In returns for these goods, European fishers received mostly furs from the Amerindians. When both European and Aboriginal groups profited from the trade a relationship was maintained between them. -
Period: Oct 27, 1500 to
Economy and Development
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Rise of the Fur Trade
In the late 16th century, the French realized that the beaver pelts that fishers exchanged with Aboriginal peoples had a far higher value in Europe than they had expected. The fur trade was now seen by French merchants as a new way to get rich. The French state therefore began to allow merchants and shipowners to invest large sums of money in building a network of fur trading posts in the colony. Competition between merchants began and they demanded that the state granted them a monopoly. -
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. The monopoly holders were in competition with each other to bring back furs to gain as much profit as possible. The monopoly holders did not even invest in settlement because only a few employees were needed to manage and send furs to the mother country and they did not want to lose profit. -
Company of 100 Associates
In 1627, the Company of One Hundred Associates was created due to the fact that the King made population a requirement. In exchange for the monopoly of the fur trade, they were required to populate and manage the territory. However, the Company didn't see populating as profitable so they didn't do it. The King dissolved the Company in 1663 due to the fact that they couldn't populate the territory. (Among other things, a boat containing 400 colonists was intercepted by a British boat.) -
Mercantilism
Mercantilism is based on a nation's accumulation of wealth (gold and silver). This was achieved by the French by colonizing the New France that had resources that the mother country could export. These resources would be then changed into products which the mother country could sell to colonists for profit. In addition, the production within the colony was restricted to increase demand for these products such as metal goods like nails, fur hats and other products. -
Economy Based On Timber
Napoleon sets up a naval blockade in 1860 preventing Britain's access to timber from the majority of Europe. Imposing a continental embargo increases demand greatly as Britain is lacking timber on their island. Therefore Britain uses its colony to their advantage as it had many resources. This creates new jobs such as lumberjacks and loggers. In addition, there was an improvement and development of transportation to get timber which led to the colonization of new regions, like the Saguenay. -
Quebec Act
In order to make the french happy so they didn't join the revolution of the Americans which the King is aware is beginning south of the border, the Quebec Act is adopted. 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 furs grew as there were new areas to search for furs. In 1779 the Northwest Company was created as a way to participate in the competitive trade. -
Corn Laws
The passing of the Corn Laws in the early 19th century guaranteed preferential tariffs to cereal merchants on the British market. These tariffs that increased the cost to sell to any other country than Britain which benefited the British merchants. It encouraged the growing and export of wheat within the colony. In 1846, Corn Laws were abolished, forcing the colony to find new trading partners. -
Fall Of The Fur Trade
The demand for furs in Europe gradually begins to decrease as the French regime is over. This is because fur trade falls into possession of the British and fur doesn't matter to them as much. The war is going on and Britain needs to focus more on that than on furs. This means that furs become less profitable and the economy shifts to a timber economy. The Timber trade becomes much more profitable in Britain due to Britain's lack of timber in their country and the abundance of it in the colony. -
Economic Causes Of Dominion
There are 4 economic factors that 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 trade with each other in order to compete with the new international competition.
-The first phase of industrialization, created great accessibility from one colony to the other because of the transportation networks built. -
Economic Causes Of Dominion (pt.2)
-In the 1860s, the United States was thinking of expanding their territory. Wanting the territories that were situated in the West of Canada, the colonies combined to prevent this from happening.
-In 1866, the United States cancelled the Reciprocity Treaty which allowed United Canada to trade raw materials with the US without having to pay tariffs. However, when this was cancelled, the colonies individually lacked trading partners and combining allowed them to expand their internal market. -
National Policy Of John A. MacDonald
Shortly after the creation of the Dominion, Canada fell under a period of economic recession. John A. MacDonald proposed a National Policy that he claimed would help the economy. His policy consisted of 3 points:
-Increase customs/duties which would protect and promote Canadian industries by ensuring Canadians bought goods within the colony.
-Building railways which would make trade easier.
-Encourage immigration to Western Canada because a bigger population meant a bigger domestic market. -
Urbanisation
The emergence of new industries causes the beginning of urbanization, which is the movement from rural areas to the city. Many people seeking jobs moved to the cities. In order to fit the many workers that worked in the factories, working class neighbourhoods were created. They were often built close to factories to make traveling easy and living conditions were often horrible there. Most working-class houses were made of wood and did not have running water, electricity or toilets. -
Causes Of Industrialisation
Many factors encouraged industrialization in Quebec.
-There was a lot of British capitol used to finance new industries.
-Immigrants from rural areas and from Europe provided cheap labor.
-The Saint-Lawrence River, the canals and the recently made railways formed a good transportation system.
-The rivers and Lachine canal provided water power for driving machinery.
-The new Dominion of Canada provided a bigger internal market. -
First Phase of Industrialisation
Industrialization came to Quebec in the last third of the nineteenth century. During this period there was a change from the old style cottage industry, where skilled craftsmen used slow costly methods to produce goods. This was replaced by factory assembly line work, which was more efficient, but boring and dangerous. Factories employed cheap, unskilled labour to work and mass-produce goods quickly at a low cost. They did this so that uncooperative workers could easily be replaced. -
Manufacturer's Act
In 1885, the Manufacturer's Act issued clauses that provided protection for the workers concerning their health and security. Laws introduced in this Act include:
-A minimum wage for factory workers of 12 year old boys and 14 for girls.
-A limit of 72.5 work hours per week and 60 hours for women.
Despite the introduction of this Act, the workers were still powerless towards their boss and conditions in the factory remained unsafe. This led to the creation of labor organizations(AKA Unions). -
Second Phase Of Industrialisation
Canadian industries experienced growth as a result of the National Policy(Mostly because of the protectionist policy). From 1900 to 1929 this second phase of industrialization was characterized by the quick expansion of industrial sectors. This expansion was because of 2 new available resources: hydroelectricity and oil. A few factors were to blame for the rapid development of the Canadian companies. -
Second Phase of Industrialization (pt.2)
The success of these companies depended on the fact that they could sell their merchandise. Due to the competition created by other companies, they were led to decrease their production costs in order to be competitive. To achieve this, business established themselves near sources of energy. In addition, the recently made railways contributed to limiting production costs, as it made resources readily accessible and they sped up the distribution of manufactured goods. -
The Great Depression
Buying Victory loan bonds from the Second World War got people accustomed to investing and as the values of companies kept on increasing in value, people became confident in the market. They therefore borrowed money from the bank to invest in companies in order to gain profit (Buying on margin). The companies that were being invested in produced tons of their products to sell. They over predicted the amount they would sell and inventory stood unsold in warehouses. -
The Great Depression (pt.2)
Investors became concerned as the value of companies fell and took out their stocks and tried to sell them, which made the companies worth less and less. Because the bank had borrowed money and couldn't get it back because the people had lost their stock value, the banks closed as people began going bankrupt. Because of this companies couldn't get loans buy new inventory or pay workers, so they went slowly bankrupt as well, laying off workers which increased the unemployment rate. -
Wartime Economy
The economic crash of the 1930s was put to an end by World War II. Canada had a crucial role in the war effort which was supplying the Allied troops. The government regulated the supply of certain products necessary for war production and it raised taxes. Due to the fact that the government lacked funds, the public was offered Victory Loan Bonds. People could lend money to the government with the promise of a return of their money with interest(The money was invested in the war effort.). -
Quiet Revolution
In the late 1950 to the late 1960s, Quebec experienced major social, political and economic changes. The government took charge of certain programs and created jobs, making it a welfare state. In order to prevent American Imperialism, the government bought out several companies in order to nationalize them. At this time, the tertiary sector continued to expand as it did after the Second World War. -
Economic Nationalism
Quebecers feared American Imperialism, so they looked to take control of their economy in resource management and industrial companies. In 1962, the Government of Quebec bought all the electricity companies that were private and combined them into Hydro Quebec in order to nationalize electricity in regards to its production and distribution. With the progressive increase in demand for electricity due to industrialization, Hydro-Quebec played an important role in Quebec's economic development. -
Economic Fluctuations
Throughout the 1970s the economic fluctuations stopped the prosperity that was in the 1960s. In 1973 and again in 1979, OPEC curbed oil production and raised their prices, causing an economic slowdown. Maintaining the companies that the government privatized was expensive. The rise in price of goods concerns them and with debt only getting larger, they decide to privatize the companies that they had nationalized previously. They sell these companies to private owners in order to gain money. -
Free Trade Agreement
In 1989 the Canada-United States Free Trade Agreement came into effect, eliminating almost all customs between Canada and the US for 10 years. The treaty was renegotiated before its expiry date in order to include Mexico which led to the creation of the North American Free Trade Agreement (AKA NAFTA) in 1994. This agreement is just a step in the goal of a global economy where there are no tariffs.
