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

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

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?)

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):

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.

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coming from the colonies to the heartland The colonies benefited greatly from this arrangement, but it was eventually repealed from pressure within the British government to develop better trading practices with other countries Tariffs were charged on products exported from the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

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

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.

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