Economic Factors that Supported the push for Confederation (PROs)

1. Britain Cancels the Corn Laws -Law that placed high taxes on grain and corn coming into Britain from other countries *This law did not apply to British Colonies in North America Once the law was cancelled, farmers from the colonies selling grain and corn to Britain had to compete with grain and corn being sold from other countries =Less profit for colonial farmers = Taxes$$$

END of corn laws caused the colonies to go into economic depression Long-term decline in economic activity, resulting in a major decrease in income ($) and production Economic activity= activity that produces money! Why did this impact the economy of the colonies so much?.......

Colonies = Mercantile Economies This type of system made the Colonies dependent on Britain for manufactured goods Dependent on selling grain exports to Britain BRITISH NORTH AMERICA BRITAIN

2. Confederation would encourage colonies to manufacture their own goods and trade with each other Less reliant on Britain Joining the colonies under one country would create larger markets, more industry, and better transport system

3. An independent Canadian gov’t could create its own economic policies These policies would serve Canada rather than Britain and help strengthen the economy

4. Canada would prosper if trade barriers and tariffs between colonies ended -Tariff: A tax paid on imported items -Lower tariffs or no tariffs = more free/open trade

5. Trade would also be improved by a new national railway CANADIAN PACIFIC RAILWAY -Could be built and paid for if all the colonies came together -Would go across Canada, all the way to the Colony of BC Began building 1881, completed 1885

6. Access to Halifax would benefit Central Canada Ice free port in winter = good for sending items to Europe Halifax = Nova Scotia