Economic Causes of Economic Causes of ConfederationConfederation

Central Canadian Self-interest or Central Canadian Self-interest or Grand Canadian Scheme?Grand Canadian Scheme?

Shortage of LandShortage of Land

Upper Canada was out of good land in 1862Upper Canada was out of good land in 1862 Canadian Shield difficult for farming and Canadian Shield difficult for farming and

transportationtransportation Emigration to the United States for farmland Emigration to the United States for farmland

and from Lower Canada after the Rebellionsand from Lower Canada after the Rebellions Rise in wages in the USARise in wages in the USA Lack of public works especially in Lower Lack of public works especially in Lower

CanadaCanada High prices of crown lands for farmingHigh prices of crown lands for farming

Map of Canada WestMap of Canada West

Expansion to the North WestExpansion to the North West

George Brown of Upper Canada led the George Brown of Upper Canada led the Canadian Reform Party based on Rep by pop, Canadian Reform Party based on Rep by pop, acquisition of the North West, free tradel and acquisition of the North West, free tradel and an end to gov’t financing of Railwaysan end to gov’t financing of Railways

Settle the North West before the Americans doSettle the North West before the Americans do

Canada in 1850Canada in 1850

Railway ConstructionRailway Construction The challenge presented by the rapid construction of The challenge presented by the rapid construction of

the American railroads to the Great Lakes and into the American railroads to the Great Lakes and into the far west were economic, political and militarythe far west were economic, political and military

The Grand Trunk railway had received considerable The Grand Trunk railway had received considerable sums of money from the Canadian gov’tsums of money from the Canadian gov’t

The Grand Trunk was too expansive and too The Grand Trunk was too expansive and too expensive to depend solely on Canadian industry and expensive to depend solely on Canadian industry and population it needed to go from the Atlantic to the population it needed to go from the Atlantic to the PacificPacific

An inter-colonial railway was also discussed so as to An inter-colonial railway was also discussed so as to relieve the dependence on American railwaysrelieve the dependence on American railways

A.A. Dorion and George Brown were opposedA.A. Dorion and George Brown were opposed

Grand Trunk RailwayGrand Trunk Railway

British Trade PolicyBritish Trade Policy The favourable reception of colonial products in the The favourable reception of colonial products in the

U.K. between 1815 and 1850 stimulated British U.K. between 1815 and 1850 stimulated British North American economic expansion (mercantilism)North American economic expansion (mercantilism)

Heavy industrialization in Britain led to the desire for Heavy industrialization in Britain led to the desire for Free tradeFree trade

The loss of colonial preference reduced Canada’s The loss of colonial preference reduced Canada’s exports and caused an economic depressionexports and caused an economic depression

Farmers abandoned farms for the American west, Farmers abandoned farms for the American west, flour mills became idle and the railway boom came to flour mills became idle and the railway boom came to a temporary halta temporary halt

Tories felt abandoned by the “Mother Country”Tories felt abandoned by the “Mother Country”

Canadian/American Trade Canadian/American Trade PolicyPolicy

Canada needed to avoid American trade barriers in order to Canada needed to avoid American trade barriers in order to penetrate a new market for exportspenetrate a new market for exports

There was talk of annexation to the US especially in Upper There was talk of annexation to the US especially in Upper CanadaCanada

Fishing boundaries of 1818 were disputed by the Maritimes Fishing boundaries of 1818 were disputed by the Maritimes and the US, the US got wider privileges in exchange for and the US, the US got wider privileges in exchange for Reciprocity for 10 yearsReciprocity for 10 years

Goods entered freely and each got access to the other’s Goods entered freely and each got access to the other’s fisheriesfisheries

The Civil war and perceived greater benefit to Canada caused The Civil war and perceived greater benefit to Canada caused many Americans to want to repeal Reciprocitymany Americans to want to repeal Reciprocity

In 1865 the American Government gave notice of its intention In 1865 the American Government gave notice of its intention to end Reciprocityto end Reciprocity

The MaritimesThe Maritimes

State of Colonial TradeState of Colonial Trade

The British North American colonies lost their The British North American colonies lost their protected market in Britain in the 1840sprotected market in Britain in the 1840s

Feared the Reciprocity treaty of 1854 with the U.S. Feared the Reciprocity treaty of 1854 with the U.S. might not be renewedmight not be renewed

Free trade between the colonies might help the Free trade between the colonies might help the economyeconomy

Hostile tariffs were in place between the coloniesHostile tariffs were in place between the colonies A united Canada would be more attractive to A united Canada would be more attractive to

investment and be better able to make commercial investment and be better able to make commercial agreements with other countriesagreements with other countries

Economic Condition of Eastern Economic Condition of Eastern ColoniesColonies

Economic Golden Age for the MaritimesEconomic Golden Age for the Maritimes Ship-buildingShip-building FisheriesFisheries TimberTimber For advocates of Confederation in the Atlantic Region, and For advocates of Confederation in the Atlantic Region, and

Nova Scotia and New Brunswick in particular, union would Nova Scotia and New Brunswick in particular, union would ensure greater economic growth through secure markets and ensure greater economic growth through secure markets and better railway links. better railway links.

Growth was strong, and the region had one of British North Growth was strong, and the region had one of British North America's most extensive manufacturing sectors. America's most extensive manufacturing sectors.

Economic Condition of Central Economic Condition of Central CanadaCanada

ManufacturingManufacturing IndustrializationIndustrialization For Quebec and Ontario manufacturers, For Quebec and Ontario manufacturers,

Confederation would, in addition to creating Confederation would, in addition to creating new markets, impose import duties that would new markets, impose import duties that would help protect their industries from outside help protect their industries from outside competition competition

Central Canadian Self-Interest or Grand Central Canadian Self-Interest or Grand Canadian Scheme?Canadian Scheme?

Shortage of Shortage of landland xxRailway Railway ConstructionConstruction xx

British Trade British Trade PolicyPolicy xx

Canadian/ Canadian/ American American TradeTrade

xx

State of State of Colonial Colonial TradeTrade

xx

Economics of Economics of Eastern Eastern ColoniesColonies

xx

Economics Economics of Central of Central CanadaCanada

xx