Chapter 2 – Economy & Development Mr. Wilson LMAC

TTreaty of Utrecht in 1713 TThe Deportation of the Acadians TThe Battle on the Plains of Abraham TThe Treaty of Paris 1763

 The Fur trade remained the main economic activity until…  The British were suddenly involved in the Napoleonic Wars – which led to a need for…  As a result – the Fur Trade was replaced by…

 The Scottish, the English, the Americans set up businesses Montreal – Why?  The French companies disappear – Why?  French Canadian Voyageurs – are they still around? Why?

 In the North and the West = Fur Trade.  In 1783 = the Northwest Company is formed (Land Prospecting).  Fur Trade almost over – very low demand.  HBC combines with the NWC.  But by 1821 – The Fur Trade in Montreal stops completely.

The Northwest Company!

Why did the Economic focus change so drastically under the British? (And as Historians – there is never just ONE answer!)

 The Quebec Act of 1774  U.S. War of Independence  The Napoleonic Wars  INDUSTRIALIZATION

 Made provisions for the French living in the British colony.  Made it legal to be Catholic, own land and run a business.  Reinstated French Civil Law (marriages, disputes, etc.) while maintaining English Common Law (Administration, criminals, etc.)

 18 th century – England got it’s wood from…  Why didn’t they buy timber from their colonies in North America?  However, this suddenly changed when Napoleon arrived on the scene!

 1806 – Napoleon’s Goal.  Napoleon’s Grande Armée  British Navy – The best  To invade England, what does Napoleon have to do first?

 Forces England to get its wood from its colonies.  Impact on New England’s economy?  British investors – war effort.  Ships using the St-Laurence – increases by… 600%

 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

 Expansion of territory: the Outaouais Saguenay Lac-St-Jean and the Mauricie  Lots of work = Increased STANDARD OF LIVING  What happens to the GDP?

 Investors were obviously…  War is generally good for business.  The Bank of Montreal opened in  It is Canada’s oldest bank.

 Early 19 th century - England could no longer feed its population (i.e.: the Blockade)  As a result, the Brits started relying on Canada’s wheat production to help out.  Upper Canada produced most of the wheat, while Lower Canada produced more ANIMAL HUSBANDRY. Why?

 The 19 th century = Industrialization.  Master craftsmen suddenly replaced by unskilled workers.  Industrial Capitalism starts to compete with local tradesmen.

 Industrialization = URBANIZATION.  People start moving to the cities for work.  Trois-Rivières, Quebec and especially Montreal, with its huge port – were developing quickly. Why?  Montreal – the largest in-land sea port in the world!

 Protectionist Policy = where a government sets up customs and duties on its imports and exports in order to contain outside competition.  So England would do business with its colonies…

 Liberalism Policy = this is the belief that the government should not interfere with economics.  Hence the idea of “Free Trade”  Naturally, who become Canada’s biggest business partner? Reasons: Proximity Large population = Large demand

 Industrialization changed business.  Transportation suddenly becomes extremely important.  1825 The construction of the Erie Canal in the U.S.  Canada starts investing in its transportation network.

 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.