1. Canada Between The Wars 1919-1939

2. Post War Economic Problems Wartime manufacturing ended and factories retooled for peace time. During the war labour unions agreed to keep low wages (owners made profit) 350,000 veterans returned to the workforce. Unions attempted to consolidate strength gained during the war. Labour demands for “One Big Union” frightened government and business. OBU MANY SMALL UNIONS

3. Post War Economic Problems II The government refused a veteran demand for a $2000 bonus. No military pensions, no services for the wounded Farmers were upset by government prices for wheat. Inflation, after 1917, resulted in rising interest rates.

4. Winnipeg General Strike Workers demanded the right to bargain with employers. 30,000 workers set up picket lines on May 15, 1919. The strike showed signs of spreading beyond Winnipeg. A frightened government brought a violent end to the strike.

5. Winnipeg General Strike

6. Railways Bankrupt railway lines established during the Laurier era were consolidated by the government as the Canadian National Railway system.Canadian National Railway To meet costs the CNR raised freight rates on the Maritime section of the line imposing severe hardship on industry in this region.

7. Maritime Provinces In the 1920’s the Maritime Provinces found that their influence in national politics was declining. Since the population of the Maritimes was small they had fewer seats in Parliament, and some of the bigger businesses were moving to Ontario or Quebec. Oil was replacing coal as fuel, and the Maritimes had a lot of coal, but no oil.

8. Prairie Provinces The people in the Prairies and Ontario had their own problems as well. They were upset by the National Policy that imposed tariffs on foreign products, because it meant that they had to buy Canadian-made machinery, but their products were traded on the open-world market.

9. The Farmers Because of this discontent, farmers began to form their own political parties. In 1919, the federal Progressive Party was created, led by Thomas Crerar. The Progressive Party wanted a new National Policy based on free trade and public ownership of the railways.

10. Arthur Meighen Meighen was a brilliant debater and long- standing Member of Parliament who was chosen to replace Borden as the leader of the Conservatives. Meighen believed in principles over compromise, and didn’t care who might be offended by his stand on issues.

11. Liberal Party Following the death of Sir Wilfred Laurier in 1919, the party chose William Lyon Mackenzie-King as his successor.

12. Election Time In the 1921 Federal Election the Liberals became a minority government, which meant that they needed the support of some opposition members to pass legislation.

13. The Election of 1921 III Liberal seats Progressive seats Conservative seats Progressive strength in the West combined with Liberal support in Quebec and the Maritimes swept the Conservatives from power.

14. Canada’s Growing Independence After WW1 Prime Minister Borden had taken a number of important steps that raised Canada’s profile internationally. When King became prime minister, he did the same. In 1922 he refused to support Britain’s plans to invade Turkey (Chanak Crisis) The next year he insisted that Canada be allowed to sign an international treaty without the signature of a British representative. (Halibut Treaty) In 1926 King publicly challenged Britain over it’s influence on Canada’s international policies in what became known as the King-Byng crisis He participated in the Imperial Conference that led to the Balfour Report.

15. King-Byng Crisis

16. The Election of 1925 II Conservative seats Liberal seats Progressive seats Mackenzie King lost the election but called on the support of the Progressive Party and refused to resign.

17. The King-Byng Affair 1926 A liquor- smuggling scandal in the Customs Department in the Liberal government forced Mackenzie King to ask Lord Byng, the Governor- General, for dissolution. Lord Byng would not grant this request because  Meighen led the largest party.  An election had just taken place in 1925. Lord Byng

18. The King-Byng Affair 1926 II A reluctant Arthur Meighen now formed government. King accused Lord Byng and the Conservatives of “twisting the Constitution.” The Progressives continued to support the Liberals and Meighen was quickly defeated. An election called for September 14, 1926 returned King and the Liberals to power.

19. The Balfour Report (From Empire to Commonwealth) At the 1926 Imperial Conference the British Dominions (Including Canada) requested formal recognition of their autonomy, the freedom to govern themselves. A special committee, under the leadership of Lord Balfour agreed, and the recommendations of the Balfour Report became law in 1931, making the former British Empire into the British Commonwealth. Canada was now a country equal in status with Britain and entitled to make its own laws.

20. The Statute of Westminster 1931 In 1923 at the Imperial Conference Mackenzie King and J.B.M. Herzog of South Africa proposed that the foreign policy of each dominion should be completely independent of British control. The King-Herzog Principle led to the Statute of Westminster of 1931 which established Canada as an “autonomous community within the British Empire.”