The Great Depression in Canada. Background: Laurier, who had kept the country united, dies in 1919, and the liberal party splits. New political parties.

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Presentation transcript:

The Great Depression in Canada

Background: Laurier, who had kept the country united, dies in 1919, and the liberal party splits. New political parties develop in the 20’s (e.g. National Progressive Party, United Farmers of Ontario & United Farmers of Alberta), but only serve to introduce new issues: Regulation of industry Financial support for farmers Federal v. Provincial authority Social security

The Great Depression in Canada Economic Situation of 20’s 1.Cost of WW1 2.Dependence on US A.US mineral demands (Cu & Zn) B.Paper & Automotive demands 3.Increased global competition leads to greater supply and lower prices. Pictured below: U.S. branch plants inundated Canada so as to circumvent the high tariffs.

The Great Depression in Canada Impact of the Crash Imports drop by 25% Exports drop by 55% Wheat prices drop by 75% Unemployment at 27% Saskatchewan devastated by Dust Bowl Newfoundland reverts for colonial status during Depression King ousted due to his stance on federal role in relief: “not a five cent piece!” Above: The Dust Bowl affects the Canadian prairie. The photograph taken near Cadillac, Saskatchewan in 1937.

The Great Depression in Canada Response of R.B. Bennett (prime minister ) Increased tariffs by 50% (raises prices) & provided $20M in relief (helps cover cost of higher prices) Thus, no net gain. Relief programs Canadian Wheat Board Farmer’s Creditors Arrangement Act – loans to farmers Prairie Farm Rehabilitation Act Bank of Canada – 1 st nat’l bank Canadian Radio Broadcasting Commission Did not deal with causes! (Statute of Westminster 1931 – grants full autonomy to Canada)

The Great Depression in Canada Public Responses “Relief Camps” in the wilderness to deal with “Bennett Boroughs” Run as military camps Hotbed for radicals (e.g. Relief Camp Workers Union of 1935) “On To Ottawa Trek” in April 1935 by Arthur “Slim” Evans, but stopped in Regina. Led to violent confrontation with RCMP’s Struggle with provincial leaders for balance of authority (e.g. Mitchell Hepburn, Governor of Ontario and the Oshawa Strike of 1937) Pictured Left: A “Bennett Buggy”

The Great Depression in Canada Response of W. L. M. King (prime minister ) Elected in 1935 on “King or Chaos” Signs Reciprocal Trade Agreement in 1935 with U.S. Trans-Canada Airlines in Increasingly radical populist opposition parties gain power Communists (CPC of 1921) Socialists (CCF of 1932) Nationalists (Union Nationale) – ruled Quebec from 1936 on under leadership of Maurice Duplessis.

The Great Depression in Canada