1. Canada and the Great Depression

2. Overview There is debate about what caused the Great Depression
It was a combination of events and decisions that caused the Great Depression.
(Rasmussen, Hannah )

3. The Economic Impact of WWI
After WWI ( ) Europe was trying to rebuild
Many European countries struggled to pay their war debts and reparations
Most owned a lot of money to American banks
These loans were so high the countries could not pay them
Economic problems in many countries in
Europe
(Rasmussen, Hannah )

4. The Economic Impact of WWI
The US government would not reduce/ forgive debts
The US economy began to slow down
European countries began to find it difficult to
borrow money.
USA also had high tariffs
Europeans could not make money selling their products in the US market
Countries began to default on their loans. (Rasmussen, Hannah )
In Germany by 1922 their bank notes were of so little value people burned them to keep warm
The American government refused to lower or forgive the debts
The American economy began to slow down and European countries began to find it difficult to borrow money.
At the same time the United States had high tariffs so that the Europeans could not make money selling their products in the United States markets
The countries began to default on their loans.
After the 1929 stock market crash banks tried to stay afloat

5. Here in Canada in the post WWI era
Prices were on the rise , for example, 1lb of beef cost $0.10 in but by 1918 it was $0.39.
The Communist Revolution in Russia had started with labor unrest/strikes
Canadians worried as many here threatened to strike
Soldiers returned from war to few job opportunities
The government offered support temporarily but cut programs in many disabled veterans were unemployed
Protests followed- unions were formed- strikes followed (Winnipeg 1919)

6. The Roaring Twenties The 1920s were a boom time in Canada.
There was a high demand for raw materials (forestry, mining, pulp & paper) and industries developed mass production techniques-
Exports such as wheat became of primary importance in the Canadian economy
Unemployment was low and earnings
for individuals and companies were high.

7. The Roaring Twenties
People were able to spend and consume huge amounts.
Foreign investment in Canadian
markets increased
USA accounted for 58% of
foreign investment in Canada)
Credit as a way to buy things was introduced- impact on how people played the stock market
But prosperity came to a halt with the stock market collapse around the world in October 1929.
Urbanization increased
Streetcars and road systems
Telephones and telegraphs
Political power of urban centers increased and that of rural areas decreased
Department store like Eatons sent ous catalogues
High rates of consumerism for things like toasters, irons, sewing machines, fashionable clothes
Radio was popular- 80% of programming came from USA
Credit as a way to buy things was introduced/ payment plans…not just for food and fuel as in prevoius eras but for non-essentials and items like cars too

8. THE CRASH of ’29 (Black Tuesday)
Uncontrolled buying = shares above “true” value.
Big investors see this and sell.
Panic selling occurs with smaller investors
Bank reserves drop
Consumers put off purchases
Production of goods slows down –manufacturers had large inventories they could not sell
People are laid off
Uncontrolled buying forces prices of shares above their “true” value. Big investors see this and sell.
Share prices fall drastically as panic selling occurs with smaller investors
investors were forced to use money they had borrowed to buy shares > used up peoples’ savings > banks’ reserves go down
consumers lose confidence in the future > put off purchases > production of goods slows down > people are laid off >even more people are laid off e.g. unemployment in 1929 = 3%; 1933 = 23%
In Canada the TSE lost 200 million dollars on October 4th 1929
On October 28 the value of shares on the TSE fell 1 million dollars per minute

9. In Canada 1928 wheat crop crash Work money and food began to run low
Federal Department of Labor that a family needed between $1200 and $1500
At that time, 60% of men and 82% of women made less than $1000 a year.
GNP fell from $6.1 billion in 1929 to $3.5 billion in 1933
"The Great Depression of Canada Homepage”

10. Effect on Canadian Economy
Canadian economy dependent on exports (trade with other nations (Europe and USA)
Foreign countries stopped
buying
Countries imposed tariffs
1930 – 1939 severe winter with little snow
drought in western Canada = crop failures
Canadian economy was heavily dependent on exports.
Foreign countries stopped buying = no sales of Canadian goods.
Countries imposed tariffs (taxes) to try and protect their industry.
1930 – 39 severe winter with little snow and drought in western Canada > crop failures

11. Effect on average citizens
Those who do still work have to take pay cuts
Canada had many employed in staple trades and manufacturing
Many lose jobs
The unemployed begin to default on mortgage payments.
Banks have to repossess houses, cars etc. BUT prices have fallen drastically (when people have no money, prices fall as sellers try to get rid of their goods) > with no reserves and many repossessions, banks fail (9000 banks failed in the US between 1929 – 33)

12. Effect on average citizens

13. Roaring Twenties- Dirty Thirties:
The 1930’s are referred to as the dirty thirties
Suffering, unemployment, and homelessness.
Sandstorms- also known as the “Dust Bowl”
Soil very fine- drought- no rain to keep topsoil in place
Soil easily picked up to blow across the countryside
Conditions were very bad in the Prairie Provinces.

14. Dust Storm
Link to crop prices

15. Grasshoppers: Clouds of grasshoppers would black out the sky.
They would pass by and eat anything in their way
The things that they did not eat they would spoil so that it would become useless

16. Grasshoppers

17. Riding the Rods/ Riding the Rails:
Jobless and homeless men were on the move- looking for work
Hide under trains for a free ride
Unable to leave once the train is in motion.
Incredibly dangerous
Each box-car there are 8-10 steel rods underneath. There is about 2-3 feet where a man could lay, but once they are on they would be unable to leave once the train is in motion. - Men would be able to rid the rails as a free means of traveling across the country. - Men who rode the rails were seen as threat to the way of citizens and property. Hobo’s Jungle: - Near every city “jungles” formed where thousands of homeless men made their headquarters before passing through to the next town. - They would travel by riding the rails - The conditions in these camps were deplorable and there concerns over the sanitation.

18. Riding the Rods/ Riding the Rails:

19. Hobos’ Jungle: Near every city “jungles” formed
Thousands of homeless men made their camp before passing through to the next town.
Conditions in these camps were deplorable
Concerns over sanitation.

20. Hobos’ jungle

21. Hobos’ symbols not a safe place Kind man lives here
Dangerous neighborhood
Kind woman here- tell a sad story
These marks were made with chalk or charcoal on fences, walls and railway bridges to tell others of conditions in neighborhoods
Good place for a handout
Nasty dog here

22. Work Camps/ Relief Camps
Intended to handle 2000 men within a year some had 11,000
By the end of the depression 170, 248 men had been taken in.
Workers worked 8 hours a day, 4 hours on Saturday for .20 cents a day.
The physical and psychological conditions within the camps were poor.
Work Camps:

23. Work Camps/ Relief Camps

24. Families Families who could not afford food or lodging were broken up
Link to family budget
Parents would sometimes barter their children away to pay for essentials
they could not afford to support them

25. Unemployment in Canada 1926-1950
1929= 2.5% /40
1933= 30.0% 1/3
1939=14.8% 1/7
1945= 1.6% 1/63
What portion of the Canadian population was unemployed in the following years? Please express each answer as a fraction!

26. On to Ottawa Trek
April – June men left the relief camps and gathered in Vancouver
Started a march to Ottawa
They were going to demand better wages and working conditions

27. The On to Ottawa Trek 1935

28. The Regina Riots June 14, 1935 2000 trekkers in Regina
Prime Minister R.B. Bennett (Conservative)
proposed a meeting with the leaders- all others
would have to stay behind
Bennett offered nothing to them and said the camps were fine
The police attempted to arrest the leaders when the returned to Regina-a riot ensued
I officer died many protesters and police were injured- nothing changed
Bennett was not re-elected and
William Lyon Mackenzie King’s
Liberal government returned to power

29. The Regina Riots

30. Government Response
Before the Depression the government interfered as little as possible with the economy
Believed that a free market would take care of the economy
Churches and communities would take care of societal issues
During the depression the government had to step in and create the following:
minimum hourly wages
standard work week
unemployment insurance

31. Works Cited
" Extension History, Since 1909." UThink: Blogs at the University of Minnesota. Web. 16 May <
"The Depression - Tracking Time - Canada, by Train - Library and Archives Canada." Welcome to the LIBRARY AND ARCHIVES CANADA Website | Bienvenue Au Site Web BIBLIOTHÈQUE ET ARCHIVES CANADA. Web. 16 May <
"Don River Valley Historical Mapping Project." Map & Data Library ? Map and Data Library. Web. 16 May <
"Great Depression." Jazz Street Vancouver :: The History of Vancouver Jazz. Web. 16 May <
"The Great Depression of Canada Homepage." Yukon Education Student Network - Home. Web. 16 May <
"Hard Times." CBC.ca - Canadian News Sports Entertainment Kids Docs Radio TV. Web. 16 May <
"Hard Times? Not so Much - Emma Peel - Open Salon." Open Salon: You Make the Headlines. Web. 16 May <
Rasmussen, From Hannah. "A Student's Guide to the Great Depression." Economics at About.Com -- Your Portal to the World of Economics. Web. 16 May <
"R.B. Bennett, 1930." Newfoundland and Labrador Heritage/Patrimoine De Terre-Neuve Et Du Labrador--Entry Page: Newfoundland and Labrador Heritage. Web. 13 May <
"What Caused the Great Depression?" Millionaire Acts. Web. 17 May <
"William Lyon Mackenzie King Collection | Laurier Library." Laurier Library. Web. 13 May <