Mr. Wilson History 404

 After the Treaty of Paris – the furs from New England were sent to Britain.  The Fur trade remained the main economic activity up until the 19 th century and the Napoleonic Wars.  The Fur trade started to decline and Forestry (or timber) took over!

 Due to England war against France and INDUSTRIALIZATION, Britain needed wood in a big and bad way.  No problem, they had a whole colony full of nothing but trees.  The Quebec Act of 1774 and U.S. war of independence 1783 also had a big impact on the economy.

 The Scottish, the English and the Americans all started settling in Montreal to do business after the British conquest.  The French companies virtually disappeared as the British took over.  However the French Canadian Voyageurs were still highly recognised for their knowledge and contact with the Amerindians.

 Although the North and the West were still doing a lot of business in the Fur Trade, after 1783 – all of the southern territory was lost.  In 1783 several Montreal merchants combined to form the Northwest Company – which was responsible for a good amount of land prospecting in Canada.

 The Northwest Company and the HBC spent a lot of time and money competing in a market that was slowing down.  As a result, they merged in 1821 and the Fur Trade in Montreal basically stopped all together.

 During the 18 th century, England was getting its timber form Northern Europe (Russia, Prussia and Norway.)  Canada had a tough time breaking into this market due to the cost of transportation across the Atlantic.  However, this suddenly changed when Napoleon arrived on the scene!

 In 1806 – Napoleon, now Emperor of France, wanted to conquer ALL of Europe.  On land, Napoleon was the best, but in terms of naval power – the British still ruled the seas.  So Napoleon cut off England’s supply of timber, hoping that their navy would eventually be unable to repair itself.

 Napoleon’s blockade forced England to get its wood from its colonies.  In other words = fur trade out, timber in!  British investors started putting up huge amounts of CAPITAL in order to get the timber business rolling to help with the war effort.  Also, the number of ships going up and down the St-Laurence multiplied by 6 in a ten year period.

 Lower Canada (Quebec) produced mainly SQUARE-SAWN TIMBER – used for ship parts and construction.  New Jobs created:  Lumber Jack  Loggers or raftsmen  Stevedores or longshoremen  Carpenters and woodworkers  Labour for the lumber mills

 The new timber industry fuelled the expansion of territory – the Outaouais, Saguenay Lac-St-Jean and the Mauricie.  Due to the new jobs, the STANDARD OF LIVING also went up.  This increase naturally fuelled the rest of the economy.

 Most of the investor in this new economic activity were English.  They made so much money, the Bank of Montreal opened in 1817 to help them out.  It is Canada’s oldest bank.

 By the beginning of the 19 th century, England could no longer feed its population.  As a result, it started relying on Canada’s wheat production to help out.  Upper Canada produced most of the wheat, while Lower Canada produced more ANIMAL HUSBANDRY.

“Of course, Henry Ford’s greatest invention was not the Model T – but the assembly line that created it.” - From the movie Seabiscuit

 The 19 th century was a transition period for Canada as Industrialization picked up speed.  Master craftsmen were suddenly replaced by unskilled workers.  Industrial Capitalism also became an issue, and competition with local tradesmen started to become an issue.

 Another effect of industrialization was URBANIZATION.  Trois-Rivières, Quebec and especially Montreal, with its huge port – were developing quickly.  Investors were setting up industries in Montreal as that is where the wheat from Upper Canada was shipped.

 Protectionist Policy = where a government sets up customs and duties on its imports and exports in order to contain outside competition.  Thus, England supported business from its colonies over business from outside sources.

 Liberalism Policy = this is the belief that the government should not interfere with economics.  Issues like “Free Trade” are liberalist views on the economy.  The United States became Canada’s best partner, not only because of location, but because its increasing population meant it had a HUGE demand for resources.

 As industrialization started to change the demands of business – a better transportation network was needed.  The construction of the Erie Canal in 1825 (US) threatened to divert trading to New York.  Canada was then forced to invest into its transportation network in order to stay competitive.

 The Lachine Canal ( )  So steam boats could go around the Lachine Rapids  The Rideau Canal ( )  Connecting the Ottawa river to Lake Ontario  The Chambly Canal ( )  Connects the Richelieu River to Lake Champlain.

Workbook Pages: 73, 74,77