Canada Between The Wars Chapter 3- Canada and the Twenties

The Economy

Post War Economic Problems Wartime manufacturing ended and factories retooled for peace time. 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

Post War Economic Problems II The government refused a veteran demand for a $2000 bonus. Farmers were upset by government prices for wheat. Inflation, after 1917, resulted in rising interest rates.

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

Winnipeg General Strike

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.

The Election of 1921

The new Conservative leader after 1920 was Arthur Meighen. The Liberals elected William Lyon Mackenzie King to lead their party.Mackenzie King Discontent among farmers resulted in a new federal political party - The Progressives. Arthur Meighen

The Election of 1921 II The Progressives supported free trade, lower taxes and cheap freight rates. The Liberals also supported free trade. The Conservatives continued to support high tariffs and this cost them the election. Mackenzie King formed government in Mackenzie King

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.

Canadian Autonomy

The Growth of Canadian Autonomy Decision making for much of World War I was entirely British. In 1917 the British War Cabinet was expanded to become the Imperial War Cabinet which included all of the Dominion prime ministers. In 1919 Canada placed her own signature on the Treaty of Versailles and took a separate seat on the League of Nations.

Mackenzie King and The Empire Mackenzie King did not support military expansion and wished to distance himself from the Empire. He cut the defence budget and appointed O.D. Skeleton to direct Canada’s foreign policy. King’s policies were popular in the West and in Quebec.

King and Canadian AutonomyCanadian Autonomy Liberal nationalism was demonstrated by The Chanak Crisis of 1922  King refused to support Britain’s request for troops in case of a war with Turkey. The Halibut Treaty of 1923  For the first time Canada signed an international treaty without British support.

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.”

The King-Byng Affair

The Election of 1925 The Progressive party was weakened by internal disagreement and The Liberals had failed to keep all the promises of They were now vulnerable in the Maritimes because of Freight Rates and Tariffs. Between 1921 and 1925 economic conditions in most of Canada improved but

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.

The King-Byng Affair 1926 A scandal 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 Lord Byng

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.

The Person’s Case

From the war Women worked overseas as: Nurses, Ambulance drivers At home: Factories, banks, police forces

Women’s role is… in the home not corrupted by politics to support the husband Women wouldn’t… vote even if they could understand how

Nellie McClung Women gained provincial suffrage: Manitoba January 1916 Saskatchewan March 1916 British Columbia April 1917 Women gained federal suffrage: May 1918

Agnes Macphail First female Member of Parliament

Famous Five – Alberta anger Emily Murphy Nellie McClung Henrietta Muir Edwards Louise McKinney Irene Parlby

Louise McKinney

Henrietta Muir Edwards

Irene Parlby

Emily Murphy First female judge Other lawyers challenged her She was not a “person”

Emily Murphy First Female Judge in British Empire! (1916) Her cause united others = The Famous Five

The issue Did the word “person” in the British North America Act include women Took this issue to the supreme Court of Canada

Women no person’s Supreme Court said no

1928 Famous Five take the Issue to Britain Privy Court Person’s Case

1929 Privy Court Decision Women are “persons” Women can become members of the Senate

Legacy Allowed for the greater participation of women in public life None of the Famous Five made it to the Senate though Cairine Wilson, 1930

The Great Depression

Canadian Economic Expansion in the 1920s Primary industries such as pulp and paper and mining had experienced growth during the war and continued to expand through the 1920s. Wheat did well during the war but the price fell in 1921 and did not recover until after Manufacturing had also expanded and after the war began to produce a variety of consumer goods.

Chapter 3- Canada and the Twenties Do Activity Sheet- 3-1, 3-2 Know the time line on page 49 Do “Activities:  Page 51:1-4  Page 56: 1-4  Page 61: 1-3  Page 65: 1-4  Page 72: 1-4

Problems in The Canadian Economy Canadian prosperity in the 1920s depended mostly on resource industries such as pulp & paper and mining. The Canadian economy was too closely linked to the United States and to European recovery. Many Canadians and some parts of Canada did not share in the prosperity of the 20s.

Canada and the Crash of 1929 There was little market for the 1928 wheat crop and drought killed the 1929 crop. As consumer spending slowed Canadian factories began to close and unemployment increased. Mackenzie King and the Liberals had few solutions.

The Business Cycle Successive stages of prosperity followed by depression and then recovery are normal for the economy. The 1920s were marked by unprecedented prosperity. It was to be expected that prosperity would be followed by a recession.

The Business Cycle

International Economic Problems High tariffs brought on by excessive economic nationalism restricted the flow of exports. Goods were overproduced for the domestic economy and unable to be sold abroad. Easy credit practices made ordinary people vulnerable to fluctuations in the economy. Buying stocks on credit or margin encouraged speculation.

Psychological Problems There was a belief that Canada and the United Sates had entered an era of “perpetual prosperity.” Many Canadians, including farmers, shared neither the prosperity nor the optimism. Even some factory workers found themselves unable to afford the goods they produced.

The Market Crashes Prices of consumer goods remained too high in spite of indications that the market was slowing. Artificially inflated stock prices did not represent the true value of the shares. Sales of many consumer products slowed resulting in less production and layoffs. Investors stopped buying stocks and began to sell off their shares.

The Stock Market Crash On Tuesday October 29, 1929 panicky investors dumped over 16 million shares on the New York stock market. These shares were sold for rock bottom prices. “Black Tuesday” was the culminating event in several weeks of falling market values. It was not the cause of the Great Depression but marked the beginning of a period of economic decline which was to last until 1939.