The National Policy

Chapter 9
After Confederation (after
1867)
 Canada’s 1st Prime Minister was
Conservative party leader, John
A. MacDonald
 His first term as PM lasted till
1873, when he resigned due to
a political scandal (yes, they had
them then, too), and the Liberals
won the next election.
Worldwide Depression

 But for the next four years, the

Canadian economy really suffered
because there was a depression all
over the world
 This meant high unemployment,
many businesses failing, and
financial institutions losing the
confidence of the people
 In the election in 1878,
MacDonald attacked the Liberals
policy of low import tariffs
Election platform

 He felt that if there were high import

tariffs, people would buy Canadian
products, which would help our
businesses and economy.
 Business leaders really liked this
 Also, the Liberals hadn’t built the
railway that had been promised to
BC if they joined Confederation. This
kept them in fear of American
expansionism (remember Manifest
Destiny?)
National Policy-first initiative

 Protective tariffs against foreign

goods
 Highest tariffs were to be on
manufactured goods, such as carriages,
agricultural machinery, railway cars, and
woolen clothing
 They were intended to protect the
industries that were producing them in
Canada
 Lesser revenue tariffs were on other
items not produced in Canada
 National Policy-second
initiative
 Building the Canadian Pacific
Railway
 World markets for wheat, timber,
and fish (staples) were
disappearing
 Exports fell by 20% in six years
 So many believed that the
economy needed to diversify
(include lots of other types of
businesses) to survive
So…

 Lands of the Canadian West

were vulnerable to the
Americans
 Settlers didn’t want to go there
 Investors in the railway wanted
to think that the railway would
eventually pay for itself (needed
to think businesses would use it
to ship products and goods)
National Policy-third initiative

 Greater immigration and

settlement in the West
 To occupy lands so Americans
wouldn’t focus on them
Summary of Purpose

 The National Policy was a

means to produce growth in
the Canadian economy using
the 3 initiatives
The National Policy - Effects

 The National policy’s most

immediate result was the creation
of the Canadian Pacific Railway
 Creation of an industrial Heartland
in Central Canada (Ontario and
Quebec) that has existed for over
100 years
 Canada was no longer Europe’s
Hinterland
Canadian Heartland and
Hinterland
 The National policy
created a Canadian
Heartland, but also a
Canadian Hinterland

 The Maritimes and the

West became that
Hinterland
The Maritimes

 At the time (1878), Nova Scotia

was expecting a great economic
boom as the result of the National
policy and it’s ice free harbour
 The Maritimes experienced
prosperity, but it did not last
 Many companies based in the
Heartland cared only for profit -
not the economic well being of the
Maritimes
The West

 Immigration in the West did not

increase as expected, but
eventually picked up
 The West took advantage of both
the railway and federal subsidies
for the wheat industry
 Conflicts with the Aboriginal and
Métis communities over Treaty
rights caused great difficulty for
all involved
 Effects of Industrialization:
Working Conditions
 Work conditions were harsh with
long days
 Failure to meet demands resulted in
lost wages and even corporal
punishment
 Lack of health and safety standards
resulted in many injuries and spread
of disease
 Many workers were often exposed to
harmful chemicals and dangerous
working conditions
 Effects of Industrialization:
Standard Of Living

 The standard of living at this time

would cross between second and
first world
 Many poor families
 High infant mortality rates (IMRs)
 Poor access to healthcare for
most
 Lack of electricity, refrigeration
and clean water
 Effects of Industrialization:
Social Response
 Many of those in the middle-
class took initiatives to help
the poor
 This resulted in new
hospitals, better health care,
public sanitation, and useful
legislation to promote the
rights of workers
 Effects of Industrialization:
Response of Workers
 Workers in new industrial
factories generally responded in
one of two ways:
1. Development of trade unions to
fight for profit sharing, benefits,
and better wages through strike
action.
2. More radical approach was to
join together to restructure
capitalism.