Canada’s Great Depression IB History of the Americas

What were the causes of the Great Depression in Canada? –Compare and contrast the causes of the Great Depression in Canada with the US –To what extent did the economic crisis in the US cause the downturn in Canada Guiding Questions

The Causes of the Great Depression in Canada

Overproduction and Expansion Canada's companies expanded their industries so they could meet war demand (WWI) Canada's companies expanded their industries so they could meet war demand (WWI) As European industry recovered, Canadian industry and agriculture were overproducing causing prices to fall.

Dependence on Commodity Exports Canada's economy was overly dependent on commodity exports (example: wheat, timber) As U.S. and European demand fell it created a significant drop in sales causing an economical depression. As U.S. and European demand fell it created a significant drop in sales causing an economical depression.

Dependence on the United States The US was one of Canada’s largest buyers of timber and minerals. Also, US corporations were buying shares of Canadian industries, linking the stock markets of the two.

High Tariffs In a effort to prop up Canadian products, the national government raised tariffs. The protectionist strategy backfired when other countries imposed retaliatory tariffs in Canadian goods… The protectionist strategy backfired when other countries imposed retaliatory tariffs in Canadian goods… Like Smoot- Hawley tariffs made the problem worse.

Too Much Credit Canadians bought too much on lease and credit including stocks. Therefore when the stock market crashed (partly due to the margin buying), Canadians were in debt and faced a trying time as they attempted to sell their personal belongings or were having their half paid-off possessions repossessed.

The Dust Bowl The Prairies were hit extremely hard by several years of drought. Dust storms swept across the prairies, making it impossible for farmers to grow wheat. Thus, since the farmers had frequently bought their seed and machinery by using credit, when they couldn't pay off their debts, the farmers were often bankrupted and rural banks failed.

Characteristics of the Depression in Canada

The Dirty 30s: Unemployment Not once in the decade prior to the Depression did the unemployment rate drop below 12%. It peaked in 1933, at 26.6%. Those figures did not include the thousands of out-of-work farmers and fishers, who were not counted in government statistics. Nor did it include the thousands who had simply given up looking for work. Nor did it include the thousands who had simply given up looking for work.

As the depression carried on, 1 in 5 Canadians became dependent on government relief. Approximately ¼ (25%) of the population was unemployed Current Unemployment Rate in Canada 6- 8%

Finding Work At that particular time there was no such thing as unemployment insurance or welfare. People lost their homes, were thrown on the streets, lived in shantytowns, rode the rails, and survived as best they could. All people and all areas suffered. Unskilled workers suffered more than skilled workers. Young people found it virtually impossible to enter the labor market. University students were also dropping out all over the country because tuition was too much to pay. University students were also dropping out all over the country because tuition was too much to pay.

Single-industry towns such as Windsor, Sudbury, and Oshawa - all in Ontario - suffered more than areas that were more diversified. Similarly, more diversified farming areas, such as the mixed farms of eastern and central Canada fared better than those solely reliant on a single crop, such as wheat on the Prairies. Because it was deemed socially unacceptable for a woman to hold a job instead of a man, working women suffered significantly.

The home workers of the houses had to find part time jobs to "make ends meet.“ Almost 30,000 immigrants were forced to go back to their home country due to illness and unemployment. The birth rate dropped from 13.1 live births per 100 in 1930 to 9.7 in The death rate also rose due to poor living conditions, starvation, and disease.

Imports/Exports/Relief In Saskatchewan, over 200,000 people are forced to leave their farms. 70% of their population was dependent upon social assistance (very basic). Overall in Canada, the incomes of families fell by over 50% Imports fell by 55%; exports by 25%. Out of a total population of 10 Million, 2 million Canadians were living off relief handouts (e.g. soup kitchens). A “Soup Kitchen” during the Depression

Bennett More on the politics later… BUT - On July 28 th, 1930 R.B. Bennett became Prime Minister of Canada. He believed in capitalism and the free-enterprise system (i.e. leave the economy alone and everything will work out in the end)

Canada’s Reaction R.B. Bennett’s plans made the depression worse as his protectionism cut off Canadian exports. Many Canadians could not afford to put gasoline in their cars. Instead, their cars were pulled by horses! Canadians called these cars “Bennett Buggies” The “Bennett Buggy”

Relief Camps

In October, 1932, Canada was faced with massive unemployment. Many of the unemployed consisted of men “riding the rails” out west to seek work. British Columbia saw a huge influx of unemployed. The BC provincial government requested help.

Relief Camps (cont’d) On the recommendation of General Andrew McNaughton, Bennett created relief camps. This was a nationwide system of camps to house and provide work for single, unemployed, homeless Canadian males. The camps were placed under the Department of National Defense, but run by civilians.

Relief Camps (cont’d) Men in the camps could neither vote nor organize into unions. The camps were voluntary, but men who resisted could be arrested for vagrancy. The camps were located in remote areas, such as the interior of B.C. and northern Ontario.

Relief Camps (cont’d) Typical jobs that men would perform were: –Clear bush –Build roads –Plant trees –Build public buildings In return, men received: –Room and board –Medical care –20 cents a day (one-tenth of what an employed person would make doing the same work)

On To Ottawa – The Trekkers Instead of easing the unrest felt by the Depression, the camps became a focal point for the men’s anger. In April 1935, 1,500 men went on strike. On June 3, 1935, the number had grown to 1,800 The communist inspired group Relief Project Worker’s Union organized a massive “On to Ottawa Trek” to take their complaints to Ottawa.

Strikers from unemployment relief camps en route to Eastern Canada during “On to Ottawa Trek"

Trekkers, as they were called, picked up protesters along the way. On June 14, the group arrived in Regina with about 2000 men. Bennett viewed this as a threat to law and order, and supported a railway order refusing access to the trains.

The Delegation The Trekkers decided to send a delegation of 8 people on to Ottawa. This included Arthur ‘Slim’ Evans, leader of the Communist Party’s union. The delegation met with Bennett on June 22.

The meeting didn’t go very well… Evans presented the strikers demands. –Strikers’ demanded: > Adequate first aid in the camps > Extension of the Workmen’s Compensation Act to camp workers > Repeal of Section 98 of the Criminal Code (used to outlaw the Communist Party in Canada) bans “unlawful associations” > Right for camps workers to vote in federal elections. Bennett accused Evans of being a thief and an extortionist. Evans called Bennett a liar. The delegation was escorted from the building.

The Regina Riot Upon returning to Regina, Evans found that Bennett had broken a promise that all men would receive 3 meals a day. The Trekkers had run out of funds for meals. On June 28, the Regina Police announced that anyone who assisted the strikers would be arrested.

On July 1, the leaders organized an ‘open- air’ meeting in downtown Regina. Bennett decided to arrest the leaders. There were over 1500 people in attendance, only about 300 of which were Trekkers. At 8 pm, a whistle was blown, and the Regina Police charged the square. The Agitators

The riot that ensued involved fighting with sticks, stones and hands. The police fired their revolvers in the air, and used tear gas bombs. 120 protestors were arrested. One policemen and one protestor died.

On July 4, the Saskatchewan government assisted the marchers on their way, and most returned to Vancouver. Bennett characterized the On-to-Ottawa Trek as "not a mere uprising against law and order but a definite revolutionary effort on the part of a group of men to usurp authority and destroy government." The Riot

Aftermath of Regina Discredited the Bennett government, 1935 elections Conservatives went from 134 seats in Parliament to 39. Public sympathy for the Trekkers (strikers) spilled over to the Communist Party which organized the protest. The military camps were dismantled and replaced with smaller camps managed by provincial governments with slightly better pay using federal funds Public support set the tone for social welfare reforms to take place after WWII.