The Causes of the Great Depression: A Canadian Focus The information contained in the next 6 slides is adapted from Ross Jopling, Glen Forest Secondary School, Mississauga, Ontario.

The Stock Market Crash of 1929 The Stock Market had been doing very well. (In January you could buy a hundred shares of Home Oil for $350 with a down payment of less than $50 and sell them in March for $1575) The Stock Market had been doing very well. (In January you could buy a hundred shares of Home Oil for $350 with a down payment of less than $50 and sell them in March for $1575) Then in October 4, the Toronto Stock Exchange lost $200 million in value Then in October 4, the Toronto Stock Exchange lost $200 million in value This led to people selling their shares because they were worried they would lose value This led to people selling their shares because they were worried they would lose value

The Stock Market Crash Most stocks sold at a loss as sellers began to panic Most stocks sold at a loss as sellers began to panic On October 29 (known as “Black Tuesday”), the price of stocks in New York, Montreal, and Toronto plummeted as sellers tried to cut their losses On October 29 (known as “Black Tuesday”), the price of stocks in New York, Montreal, and Toronto plummeted as sellers tried to cut their losses Some people lost everything Some people lost everything

Too Much Buying on Credit People bought things they could not pay for, and went deep into debt. People bought things they could not pay for, and went deep into debt. With interest, the products ended up costing far more. When people got sick or were laid off, they could not keep their goods. With interest, the products ended up costing far more. When people got sick or were laid off, they could not keep their goods. Many people lost everything. Many people lost everything.

Over Production and Over Expansion Demand was very high for most products, so businesses expanded and over- produced Demand was very high for most products, so businesses expanded and over- produced When the stock market crashed manufacturers slowed down production and laid off workers When the stock market crashed manufacturers slowed down production and laid off workers No one had money to spend and couldn’t buy products No one had money to spend and couldn’t buy products

Canada's Dependence on Primary Products Canada depended on the sale of wheat, fish, minerals and pulp and paper products Canada depended on the sale of wheat, fish, minerals and pulp and paper products After stock market crashed demand for these products decreased After stock market crashed demand for these products decreased Drought in Western Canada Drought in Western Canada

Wheat Crop Crash Price of wheat was dropping due to competition from other countries Price of wheat was dropping due to competition from other countries By 1931 large areas of farmland in the West had been hit by drought, dust storms, and high temperatures due to poor rainfall By 1931 large areas of farmland in the West had been hit by drought, dust storms, and high temperatures due to poor rainfall In 1936 the conditions were particularly terrible, and 14,000 farmers who had no crops to harvest and no money to make their mortgage payments abandoned their farms In 1936 the conditions were particularly terrible, and 14,000 farmers who had no crops to harvest and no money to make their mortgage payments abandoned their farms

Canada's Dependence on the USA 65% of all imports were bought from USA, 40% of exports went to the USA. 65% of all imports were bought from USA, 40% of exports went to the USA. When the depression hit the USA, industries collapsed, and they stopped buying our primary products. When the depression hit the USA, industries collapsed, and they stopped buying our primary products.

High Tariffs Europe needed to recover from WWI, so they added taxes, or tariffs, on many products sent from Canada, driving up the prices. Europe needed to recover from WWI, so they added taxes, or tariffs, on many products sent from Canada, driving up the prices. They also could not afford to buy many products. They also could not afford to buy many products.

Too Much Credit Buying on Stocks People wanted to get rich quickly, so they gambled in the stock market. People wanted to get rich quickly, so they gambled in the stock market. People even borrowed money to gamble, sometimes even buying on margin. This means they bought a stock by paying only 10% of the value of the stock. People even borrowed money to gamble, sometimes even buying on margin. This means they bought a stock by paying only 10% of the value of the stock.

The Great Depression Hits Many people lost their jobs and could not pay their debts Many people lost their jobs and could not pay their debts 10,000 jobless in Toronto, 8500 in nine prairie cities 10,000 jobless in Toronto, 8500 in nine prairie cities By 1933 almost 1/3 of all Canadians were unemployed By 1933 almost 1/3 of all Canadians were unemployed Many people lived near starvation, lacking the necessities like clothing and shelter Many people lived near starvation, lacking the necessities like clothing and shelter

Great Depression Impact on Canadians Many Canadians relied on government relief to get by (financial assistance) Many Canadians relied on government relief to get by (financial assistance) Cities had to appeal to the provincial and federal governments to keep up with the number of people needing assistance Cities had to appeal to the provincial and federal governments to keep up with the number of people needing assistance People wrote to their government leaders asking for help People wrote to their government leaders asking for help

The Great Depression Hits Farmers and companies that sold to the US were hard hit Farmers and companies that sold to the US were hard hit In Regina the weekly relief bill had soared from $10,000 in December 1929 to $40,000 in January 1930 In Regina the weekly relief bill had soared from $10,000 in December 1929 to $40,000 in January 1930