The Search for Economic Well-being: The National Policy

National Policy The proponents of Confederation had argued that a political union would promote economic growth and prosperity for all regions of the new nation. Confederation was now a reality and a strategy was needed to achieve the promised growth and prosperity. That strategy rested on two goals: securing access for Canadian products and resources to the markets of the world developing a viable national economy that would generate economic activity and significantly contribute to the national well-being.

Cont… With the ending of reciprocity, attention focused on developing a national economy. The economic paradigm, as embodied in the National Policy, envisaged a nation-wide economy that integrated the resources of the nation's regions. Both geography and politics were to influence the economic role assigned to each region. This economic role was influenced by the region's resources that were deemed valuable and readily available.

Cont… National political decision makers had to consider the political influence and power of Central Canada, home to most of the nation's electorate, when developing economic strategies and policies. The nation's manufacturing and industrial "heartland" would be located in Central Canada where most of the nation's population and the largest consumer market were located. The West and the Atlantic region would serve two functions: supply the industries of Central Canada with raw resources and serve as markets for the products of those industries.

Cont… Macdonald's government had two objectives when it introduced a high tariff policy, namely: to protect fledging Canadian industries from U.S. and foreign competition; and, to encourage U.S. firms to by-pass the tariffs by establishing Canadian branch plants and employing Canadian workers. While protecting Canadian industry from its American competitors was essential, it was also essential to develop a domestic market for industry.

The Canadian West and the Euro-Canadian Vision

Look Westward A populated Prairies, with an agricultural-based economy, could supply resources for both the domestic and export markets, and serve as a protected market for the manufactured products of Central Canada.

The Goal It was necessary to complete a number of tasks in order for the West to fulfil its economic role. Those tasks included: acquiring Rupert's Land from the Hudson's Bay Company, and asserting Canadian sovereignty to fend off any Americans (December 1, 1869) settling the West with Euro-Canadians, who would develop an agricultural-based economy avoiding resistance to Euro-Canadian settlement by concluding treaties with the First Nations of the region constructing a railway that would unite the West, including British Columbia, with Central Canada.

Rupert’s Land The acquisition of Rupert's Land involved more than a land transaction. The resident populations in Rupert's Land were concerned about their futures as new citizens within a new Nation. The two largest Prairie populations, the First Nations peoples and the Métis, were largely not consulted in the process. The incorporation of the North West into the new nation, and the economic vision for that region, revealed existing societal assumptions about the nation's Aboriginal population.

Securing the Canadian West: New Canadians and Their Well-being

Moving West As early as September, 1868 surveyors began laying out roads to facilitate settlement The Métis were worried the Canadians meant to take their land and culture away There fears were realized when surveyors began to plan rectangular townships This would destroy the Seigniorial type system practiced by the Red River inhabitants

Red River Settlement Most of the people lived along the Red River The Canadians agitated for a Union with Canada They called themselves the Canadian Party

Moving West When the sale was finalized the Canadians at the settlement welcomed it hoping for an influx of settlers from Ontario The Métis felt that this would lead to a destruction of their culture

Louis Riel Louis Riel believed in the Métis cause and was a natural leader for the opposition to Canada’s plan for the Red River settlement

Resistance Begins Ottawa was quite aware of the growing tensions in the Red River but was unconcerned On October 11, 1869 Riel and his men stopped a government survey near the Red River

Resistance Begins The Lieutenant-Governor, William MacDougal, was denied entry to the Red River Colony from the United States Thinking that MacDougal would attempt an immediate take over Riel seized Fort Garry

Resistance Begins On December 1 MacDougal proclaimed his authority This declaration was ineffectual Riel stepped in and set up a provisional government and introduced a “Bill of Rights”

Resistance Intensifies The Canadian Party’s resistance to the provisional government caused them to be imprisoned One of the men imprisoned was Tomas Scott, an Ontario Orangeman Scott abused his guards and threatened the life of Riel Scott was charged and found guilty of abusing his guards and inciting violence

Resistance Intensifies On March 4, 1869 he was executed

Reactions in Canada The rebellion raised sympathies in Quebec where Riel was a patriot standing up for the rights of French-Catholics In Ontario protestant Orangemen worked against the privileges sought by the Métis Prime Minister Macdonald refused to recognize the provisional government He sent negotiators to deal with the Legislative assembly – to which Riel was made President

Reactions in Canada Macdonald was pressured in Ontario to order troops into the Red River to crush the rebellion Eventually he did order troops into the area The journey took over ninety days The soldiers had to march the entire way

The Manitoba Act On May 12, 1870 the Province of Manitoba was created The Act embodied most of the points from Riel’s Bill of Rights Separate Protestant and Catholic schools French and English were both official languages A Bicameral legislature $30,000 yearly subsidy and 80¢ per capita grant until the population reached 400,000

The Manitoba Act To ensure the power of the Provincial Government Macdonald sent troops to Manitoba The troops arrived on August 23

Overview Manitoba became a province much sooner than planned because of Riel’s leadership The government had to recognize the claims of the Métis The division between French and English intensified

Review Questions How were the concerns of the Métis in 1870 similar to those of the French in 1791? How was the execution of Tomas Scott important?

From Sea to Sea: British Columbia and Prince Edward Island

A Nation from Sea to Sea The BNA Act (1867) united The Province of Canada, New Brunswick, and Nova Scotia into the Dominion of Canada

A Nation from Sea to Sea There were still parts of British North America outside of the Dominion British Columbia Newfoundland Prince Edward Island Rupert’s Land

British Columbia In 1867 the colony of British Columbia expressed an interest in joining Confederation This was impossible because of the stretch of land

British Columbia When Rupert’s Land was purchased the way seemed open for BC to join confederation There were several points of view on the issue A small group favored annexation by the United States Others wished to remain a British Colony

British Columbia There was a strong movement to join confederation This was led by newspaper owner William Alexander Smith

British Columbia Annexationist then sent a petition to President Grant of the United States asking him to annex BC This combined with the purchase of Alaska led to a feeling that confederation was the only way for survival for British Columbians In 1870 a delegation met with Prime Minister Macdonald to discuss a union with Canada

British Columbia The agreement hinged on a promise to complete a trans-continental railway to join BC to the rest of Canada The Government also assumed all of the debt of the colony BC received $35,000 in a yearly subsidy and a per capita grant of 80¢ until the population reached 400,000 On July 20, 1871 British Columbia became Canada’s sixth province

PEI Prince Edward Island’s reluctance to join confederation was soon overshadowed by realistic problems PEI was stagnating and in heavy debt They also had trouble raising funds as they owed in New York and London In 1872 Macdonald suggested that PEI join Canada

PEI Canada assumed the debt of the colony Canada contributed $80,000 to purchase land from the absentee landlords The federal government also guaranteed communication through a telegraph line they would establish and a year round ferry to the mainland PEI received Provincial status and received grants similar to those of BC and Manitoba

A Little Perspective Under the leadership of Sir John A. Macdonald seven on the ten Provinces of modern Canada had joined confederation in only six years

Review As we know Alberta and Saskatchewan became provinces in 1905. Create a flow chart to explain the emergence of modern Canada since 1867.

The Canadian Pacific Railway: An Alliance of Government and Business

The Iron Horse The transcontinental railway scheme was first proposed by Macdonald in the early 1870s. After a competition, the construction contract was awarded to George Stephen and Donald Smith. The terms of the contract were attacked by the opposition Liberals, as being too generous, and led to the Pacific Scandal of 1873 that brought down Macdonald's government.

The Iron Horse The succeeding Liberal regime of Alexander Mackenzie attempted to build the railway under public ownership, in stages as financing permitted, and as economic necessity dictated. During the 1878 federal election, Macdonald championed the urgency of constructing an all-Canadian railway to the Pacific in order to secure the West from American annexation. The project ran into financial difficulties on several occasions and had to be rescued from bankruptcy by further government grants. The transporting of Canadian troops, during the 1885 North West "Rebellion," convinced the Canadian public of the railway's value. The railway was completed in 1885.

Treaties and the Indian Act

MacDonald’s Dream

Here They Come… Before a Euro-Canadian population could establish an agricultural-based economy arrangements had to be made to extinguish First Nations' title to most of the fertile lands of the southern Prairies. Solution: The Indian Act 1876

Indian Act The Act was to be the instrument to effect a policy of assimilation. It permitted the government to supervise the economy, politics, education, land and many personal decisions of First Nations peoples. Regulated most aspects of the lives of First Nations: the election of chiefs and band councils taxation and legal rights Trading between First Nations and non-First Nations peoples establishment of schools

Treaties Between 1871 and 1877, treaties were negotiated which resulted in Canada acquiring virtually all lands from Lake Superior to the Rocky Mountains. All the Western treaties included provision for farming equipment and livestock. In Treaties No. 1 through 11, the government committed itself to providing either teachers or schools for each reserve. The treaties indicated the terms of the land transfer and created reserves.

Can You Say… Assimilation?

Assimilation and Agriculture One goal of the Indian Act was to have the nomadic First Nations adopt an agriculture-based lifestyle, thereby hastening their assimilation. First Nations farmers faced the same difficulties as the early settlers - frost, drought, hail and poor markets. Much of the reserve lands proved to be unsuitable for agriculture and provisions of crucial resources such as oxen, implements and seed, were inadequate.

What’s Next? Agricultural aid was often slow in coming, and in an effort at cost-cutting, the government reduced food rations just as the buffalo were disappearing. Such policies contributed to the death of nearly 3,000 First Nations peoples between 1880 and 1885.

The Peasant Farming Policy Designed by Indian Affairs deputy superintendent Hayter Reed, helped to make the 1890s a disastrous decade for First Nations farmers. Reed believed that individual private ownership of land would instill an acceptance of European values and practices. Reserve land was to be subdivided into separate farms and given to individual reserve members.

Cont… The amount of land given to an individual would be restricted to an amount that could be worked solely by the members of individual families. The active contribution of all the family members would be crucial because the Department of Indian Affairs restricted First Nations farmers from purchasing farm machinery.

Cont… The ban on the sale of machinery to First Nations farmers also had less philosophical motivations. In 1888, the residents of Battleford, petitioned the government, complaining of competition of First Nations farmers for the limited markets in the North West.

Political Cartoon Identify the symbols in the cartoon and then tell me what it all means?

Discussion What were the reasons that the First Nations signed the treaties? Does the assimilation attempt work? What impact do the treaties have on Canada today? Is there anyway to reverse this effect? What is in store for the future?

Unrest in the West: Riel and National Unity

Discontent By the early 1880s, there was wide-spread discontent among both the First Nations and the Métis. The Cree chief, Big Bear, sought to create an united front of First Nations, in an attempt to force the Canadian government into renegotiating the treaties, and providing the First Nations with firm assurances of their Aboriginal rights. Big Bear's attempts to form an alliance with the Blackfoot were unsuccessful. In 1884, 2 000 Crees, from a number of reserves, gathered outside Battleford, the capital of the North West Territories.

Louis Riel and National Unity The Métis living along the South Saskatchewan River were also frustrated with their dealings with the Canadian government. This leads to the North West Rebellion

The Prairies: Economics and Immigration

The necessity of using military force to subjugate the First Nations and Métis during the 1880s did not cause the federal government to deviate from its long-term policies and goals. After 1896, the Department of Indian Affairs promoted the surrender of reserve lands. The policy further reduced the likelihood of agriculture forming the basis of life for First Nations. Without a means to secure their economic well-being, the First Nations of the Prairies, were to continue to endure frequent starvation, disease, inadequate housing and the other ills that accompany poverty.

The Laurier federal government, of the early 1900s, adhered to the policy of populating the Prairies with Euro-Canadians and European immigrants. Despite the increased immigration, the consumer market that developed on the Prairies was not large enough to support the manufacturers and industries of Central Canada. In the early 1900s there was renewed interest in seeking a reciprocity agreement with the United States.