1. Heartland, Hinterland, and the Staple Trade
Hinterland - Heartland
Staples
The Staple Thesis
Preferential Trade Status and the Reciprocity Treaty

2. Hinterland - Heartland
Under mercantilism – the colonial economic system – European nations sought to control and develop colonies with vast resources
The hinterland was the captive colonial market with access to these resources
The sole purpose was to benefit the homeland, or heartland creating prosperity, prestige and power

3. Staples A staple is a product that dominates an economies exports
The main staples of the colonies were cod fish, beaver fur, timber or lumber, and wheat
Each of these became staples when the demand for the product became great (remember supply and demand?)

4. The Staple Thesis Developed by Harold Innis
Innis argues that European expansionism was motivated by the desire to export staples to enrich the homeland (heartland). Staples production in the hinterland developed economies and settlement patterns.
Innis further explains there are three ways a staple-based economy can develop with varying degrees of success (see next slide):

5. The Staple Thesis
An economy is most successful when it moves past staples production into manufacturing that supports staples industries. In time manufacturing becomes more important than staples production and the economy ceases to be a staples producer.
An economy is moderately successful when it is flexible and can shift from one staple to another based on demand.
An economy is unsuccessful when it continues to rely on staples even when there are no longer enough staple products to provide adequate income.

6. Preferential Trade Status and the Reciprocity Treaty
Since 1796 the colonies were given preferential trade status from Britain – no tariffs (taxes) on goods coming from the colonies to the heartland
The colonies benefited greatly from this arrangement, but it was eventually repealed from pressure within the British government to develop better trading practices with other countries
Tariffs were charged on products exported from the colonies – the colonies were facing a depression
The colonies looked to the U.S. for a possible solution to this important economic problem

7. Preferential Trade Status and the Reciprocity Treaty
Britain negotiated the Reciprocity Treaty of 1854 as a solution to the economic problems of British North America
The treaty allowed natural resources to pass tax free between the U.S. and British North American Colonies
The benefits were immediate and lasted until after the American Civil War (1861 –1865) when demand for staples products went down
The U.S. then cancelled the treaty

8. Case Study 10 Please read chapter 8 and record vocabulary.
In a graphic organizer (chart) show the main staples of BNA, why they were in demand, and the impact of each staple on the heartland and hinterland. (see sample chart on next slide).
Based on your reading of this chapter, where would you place British North America on Innis’ levels of success in his Staples Trade Thesis? Why? (See page 99).
Please answer the connections block on page 101 in the lower right corner.

9. Question 2 sample chart Staple Reason for Demand Impact Heartland
Impact Hinterland