1. Agenda For Today Review Quiz # 2
Notes  The Pacific Scandal and National Policy
C:APH  ‘For the Good of this Dominion’, ‘Fancy Paper City’, ‘That Little Wooden Box’
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2. Review From Last Day John A Macdonald and the CPR First Nations
Sir Hugh Allen
Macdonald was kicked out of office
The National Policy
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3. Quiz # 2
Who was the magistrate in the area where the Métis re-located? /1
Give 2 reasons as to why life was hard in this new area (Saskatchewan). /2
Who wanted to build a railway from “sea to sea”? /1
Give a reason as to why the Northwest Mounted Police were created. /1
Treaties were signed on the prairies to open up the land for white settlement. How many treaties were signed with the First Nations? /1
Give 3 promises First Nations would receive for signing the treaties. /3
Macdonald and Sir Hugh Allan were mixed up in what is known as the _____________. /1
What was Mackenzies’ contribution to the CPR? /1
Who was in charge of financing and building the CPR after Macdonald was re- elected? /1
When would the CPR finally be completed? (give a year) /1
The building of the CPR would become known as the ‘National _____’ 1
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4. Quiz # 2 - Answers
Who was the magistrate in the area where the Métis re-located? Lawrence Clarke
Give 2 reasons as to why life was hard in this new area (Saskatchewan). Harsh winter, buffalo declining
Who wanted to build a railway from “sea to sea”? Macdonald
Give a reason as to why the North West Mounted Police were created? Stop the whisky traders; make friends with the FNs; collect custom duties…
Treaties were signed on the prairies to open up the land for white settlement. How many treaties were signed with the First Nations? 7
Give 3 promises First Nations would receive for signing the treaties. Farming techniques, tools, reserve land, equipment
Macdonald and Sir Hugh Allan were mixed up in what is known as the _Pacific Scandal_.
What was Mackenzies’ contribution to the CPR? Only allowed a survey; no building
Who was in charge of financing and building the CPR after Macdonald was re-elected? CPR Syndicate
When would the CPR finally be completed? (give a year) 1885
The building of the CPR would become known as the ‘National _Dream_’
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5. The National Policy
Page 186
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6. 5.5 The National Policy
The Pacific Scandal In April 1873, the government of Sir John A. Macdonald was charged with accepting illicit funds from Sir Hugh Allan. In return for these payments, Allan was assured that he would be awarded the lucrative contract to construct the CPR. When evidence of the agreement was made public by Opposition members of Parliament and published in newspapers across Canada, the episode became known as the “Pacific Scandal."
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7. 5.5 The National Policy
During the election campaign of 1872, large sums were contributed to individuals such as George Etienne Cartier. A telegram from Macdonald to Allan's legal adviser, John J.C. Abbott, provided the scandal's most sensational evidence, as it read: “I must have another $10, 000; Will be the last time of calling; Do not fail me; Answer today."
A Royal Commission was appointed in August 1873 to examine the matter, and in November Macdonald's government finally resigned.
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8. Canada in 1882 seeking a Dominion from Sea to Sea
5.5 The National Policy
Canada in 1882 seeking a Dominion from Sea to Sea
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9. 5.5 The National Policy
Macdonald and the conservative government want a railroad to unite British Columbia to the rest of Canada.
BC joined confederation in 1871 with the promise of a railway being built within 10 years.
The Canadian government cannot afford to build it so they look for investors.
1876: Macdonald develops ‘National Policy’ election campaign for 1878 election
promises to bring nation together
1878: Macdonald and Conservatives win majority in election and return to office
Policy dealt with three main problems:
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10. …enter the CPR Syndicate
5.5 The National Policy
John A. Macdonald’s National Policy
Protective Tariffs
Taxes that must be paid on products entering Canada from abroad…this protects Canadian producers and manufacturers by ensuring they have a market.
Western Settlement
Build farms and make money selling to other countries. These farmers would then support Eastern Canada by buying their goods.
The Canadian Pacific Railroad
A way to move farmers west and to move the agricultural goods out of the prairies to sell to the world
The CPR would be the government’s TOP PRIORITY
How will they pay you ask?
…enter the CPR Syndicate
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11. System of Protective Tariffs
Dump: to sell goods at a low price
American companies dumped cheap goods in Canadian markets . Canadian companies couldn’t produce goods so cheaply, and couldn’t compete
Solution:
Introduce tariffs (taxes) on incoming American goods to protect Cdn manufacturing, mining, and agriculture. This made American goods too expensive to buy and promoted Cdn economy

12. Western Settlement
Wanted European farmers to settle in prairies to grow agriculture.
Agriculture could be exported (sold abroad)
No manufacturing in prairies to people in prairies would have to be buy goods from eastern Cda.
Solution: Promote immigration of farmer in the prairies. Agriculture from prairies exported, farmers buy Canadian products from Canada East.

13. The CPR Cornerstone of “National Policy”
West could not develop until transportation could bring grains from prairies east, and manufactured goods from E Cda to prairies.
Solution: B.C. would join Canada if they could be connected by a railway.

14. Paragraph Question:
How was John A. Macdonald’s National Policy essential to the development of Canada? In your groups, draft reasons and be ready to share!

15. How was John A. Macdonald’s National Policy Essential to the development of Canada?
BC joins Canada under the condition of CPR in 10 years
Gave people jobs – encourage agriculture (Prairies) and manufacturing (Cnd East) districts
Develop economically – encourage more trade in Canada and stays in Canada
Helped Canada work within itself – remove America from the picture
Tax – helps prevent depression strengthens Canadian economy – don’t buy American!
CPR – every province feels connected <3
Speed up trade
Defense – transport weapons, troops faster
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16. Does this sound like a good deal to you?
5.5 The National Policy
In 1880, John Macdonald proposed a deal:
In return for completing the railway within 10 years, the syndicate would receive:
$25 million
A land grant of 25 million acres, and
A monopoly on all rail traffic west of Lake Superior for the next 20 years
The trio agreed and the railway was underway.
Does this sound like a good deal to you?
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17. CPR Syndicate
As soon as the contract was approved – the Syndicate changed the route of the railway
Supposed to move through fertile Saskatoon
Many land speculators bought land they hoped would be near the rail line
But the syndicate wanted control and move the line 300 miles south to an area not occupied by homesteaders or speculators – allowing the CPR to control location of new towns and stations
What would this mean for the information collected by the Canadian Pacific Survey?
The information for the Canadian Pacific Survey was now irrelevant
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18. The Route (South) Edmonton Calgary Winnipeg Regina Socials 10
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19. 5.4 The National Dream Moving the CPR South….Why? Plus
Southern area was better for farming.
Minus
It remained unclear how the railway would pass through the Rockies.
Interesting
Canada’s future is determined by a small group of rich men.
Big cities like Calgary, Brandon, Moose Jaw would arise because of the southern route.
The Trans-Canada Highway also follows this route.
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20. 5.4 The National Dream Moving the CPR South….Why? Plus
Only way the CPR syndicate would agree to build a railway.
Southern area was better for farming.
Whole new area would be open for settlement.
Minus
Proved that Syndicate had all the power.
Homesteaders and speculators bought northern land for nothing.
This would displace more FNs in the south.
It remained unclear how the railway would pass through the Rockies.
Interesting
Canada’s future is determined by a small group of rich men.
Big cities like Calgary, Brandon, Moose Jaw would arise because of the southern route.
The Trans-Canada Highway also follows this route.
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21. 5.5 The National Policy
Progress of the CPR was slow, (about 230 km in the first year) and would not meet the deadline. James Hill searched for a new general manager for the railway.
His choice was William Van Horne – Van Horne would spend the next 4 years pushing the CPR to completion. Under him, they would meet the deadline if they had the money.
By 1883 – the company was running out of money. Even Donald Smith and George Stephen could no longer support it! All the money had been spent before they reached BC…
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22. 5.5 The National Policy Cutting Costs and Corners
In 1882, John A. Macdonald hired William Van Horne as General Manager of the CPR. He would finish the CPR on time by:
1. Hiring cheap labour
-Many Chinese Immigrants
2. Cut corners on the construction of bridges
-Start with wood and go to iron later
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23. 5.5 The National Policy Salaries were reduced to meet costs
Conditions for workers
Salaries were reduced to meet costs
Living conditions: insects, dust from dynamite blasts, over-crowding, filthy bunk houses, no plumbing, unhealthy diets, dangerous work conditions
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24. Map # 2 Rogers Pass Kicking Horse Pass Surveyed Route Actual Route
The CPR line eventually crossed the Rockies at Kicking Horse Pass. Van Horne had the line descend at twice the grade that safety allowed, so it crossed multiple times, using at times 4 miles of track to cover one mile of distance.
Kicking Horse Pass
Surveyed Route
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Actual Route
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26. 5.5 The CPR Saves the Nation!
March 1885 – the Northwest Rebellion breaks out (as a result of issues from beginning of Chapter) in Saskatchewan
Gov’t was able to get troops to the Northwest quickly due to CPR (within 5 days)
Made it look like the Federal Gov’t could react quickly to a crisis and send troops efficiently
Convinced many Canadians that transportation link was necessary and received more money to finish the CPR. It was completed 5 years ahead of schedule in 1885!
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41. The Last Spike
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42. Doanld Smith, one of the railway architects, drives the last spike of the CPR at Craigellechie in BC Nov
Did you know: this famous photograph was not the original. The spike Donald had struck broke so they recreated the moment for this picture.
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45. The Northwest Rebellion 1885
Next Day
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