1. The CPR

2. The CPR & BC
In 1871, British Columbia entered Confederation with the promise of a rail link to the rest of Canada
However, there was no clear idea of the route the railway would take across the West, how much it would cost, or who was going to pay for it.

3. Who Showed the Money Sir Hugh Allan
Canadian who had made his fortune in shipping, manufacturing, and railways in eastern Canada
Allan formed the Canadian Pacific Railway Company (CPR) in 1871.
However, while its name would suggest Canadian ownership, the CPR was actually controlled by Americans

4. John A. Macdonald & The Pacific Scandal
A national railway was always Macdonald’s dream…
In 1872 Macdonald called a general election
Allan was guaranteed railway contract if re-elected
In 1873, American involvement in Allan’s Canadian Pacific Railway were made public..
Resulted in Macdonald’s resignation
Connection between big business and politics

5. Mackenzie & BC
In 1873 Alexander Mackenzie led the Liberals to power during a major economic depression
American companies dumped low priced goods on the Canadian market.
Canadian manufacturers struggled to sell their own goods and still make a profit.
Disinterested in building the railway but was bound by Macdonald’s promise.
BC threatened to secede from Confederation if it was not completed

6. Enter Macdonald’s National Policy
Macdonald managed to gain office again in 1878.
The National Policy had three main parts: a system of protective tariffs, increased immigration, and the CPR
New investors: George Stephen, president of the Bank of Montreal, Donald Smith of the Hudson’s Bay Company, and James J. Hill
CPR Syndicate
$25 million in cash, a land grant of 25 million acres, and a monopoly west of Lake Superior for 20 years. In return, the new CPR Syndicate was to complete the railway within 10 years.

7. Completing the CPR Money was constantly a problem
the government paid only when each section of the line was completed, so in the meantime the CPR could not generate any revenue.
The investors used their personal fortunes
Another bill had to be passed to give the CPR another $22.5 million
William Van Horne was put in charge and brought about huge change

9. Results of the Money Troubles
Temporary wooden trestles and bridges to carry the line over difficult terrain
Cheap labour came in the form of thousands of Chinese workers who faced poor wages, terrible living conditions, and continual discrimination

11. The Last Spike
The Northwest Uprising allowed troops to be transported quickly however the CPR was unfinished
Troops were having to cross the gaps on foot
Seeing the benefits of the CPR the naysayers quickly jumped on board and parliament approved yet another grant
The CPR was completed in November 1885—five years ahead of schedule.

12. The Final Route

13. Your Task
Read 240 – 241 in Revisited and answer the following questions:
Look at the three components of the National
Policy: protective tariffs, increased immigration, and
the CPR. In a chart, summarize the social, political, and economic impact each of these had on the development of Canada.
Tariffs
Immigration
CPR
Social
Political
Economic

14. Tariffs
Immigration
CPR
Social
Political
Economic