Canada Between the Wars 1919-1929

Canada Between the Wars 1919-1929

Canada Between The Wars 1919-1929 Chapter 3- Canada and the Twenties The Economy Post War Economic Problems OBU

MANY SMALL UNIONS Wartime manufacturing ended and factories retooled for peace time. 350,000 veterans returned to the workforce.

Unions attempted to consolidate strength gained during the war. Labour demands for One Big Union frightened government and business. Post War Economic Problems II The government refused a veteran

demand for a $2000 bonus. Farmers were upset by government prices for wheat. Inflation, after 1917, resulted in rising interest rates. Winnipeg General Strike

Workers demanded the right to bargain with employers. 30,000 workers set up picket lines on May 15, 1919. The strike showed signs of spreading beyond Winnipeg. A frightened

government brought a violent end to the strike. Winnipeg General Strike Railways Bankrupt railway lines established during the Laurier era were consolidated by the government as the Canadian National Railway

system. To meet costs the CNR raised freight rates on the Maritime section of the line imposing severe hardship on industry in this region. The Election of 1921 The Election of 1921 The new Conservative

leader after 1920 was Arthur Meighen. The Liberals elected William Lyon Mackenzie King to lead their party. Discontent among farmers resulted in a new federal political party - The Progressives.

Arthur Meighen The Election of 1921 II The Progressives supported free trade, lower taxes and cheap freight rates. The Liberals also supported free trade.

The Conservatives continued to support high tariffs and this cost them the election. Mackenzie King formed government in 1921. Mackenzie King The Election of 1921 III

Liberal seats Progressive seats Conservative seats Progressive strength in the West combined with Liberal support in Quebec and the Maritimes swept the Conservatives from power. Canadian Autonomy

The Growth of Canadian Autonomy 1914 -1919 Decision making for much of World War I was entirely British. In 1917 the British War Cabinet was expanded to become the Imperial War Cabinet which included all of the Dominion prime ministers. In 1919 Canada placed her own signature on the Treaty of Versailles and took a

separate seat on the League of Nations. Mackenzie King and The Empire Mackenzie King did not support military expansion and wished to distance himself from the Empire. He cut the defence budget and appointed O.D. Skeleton to direct Canadas foreign policy.

Kings policies were popular in the West and in Quebec. King and Canadian Autonomy Liberal nationalism was demonstrated by The Chanak Crisis of 1922 King refused to support Britains request for troops in case of a war with Turkey.

The Halibut Treaty of 1923 For the first time Canada signed an international treaty without British support. The Statute of Westminster 1931 In 1923 at the Imperial Conference Mackenzie King and J.B.M. Herzog of South

Africa proposed that the foreign policy of each dominion should be completely independent of British control. The King-Herzog Principle led to the Statute of Westminster of 1931 which established Canada as an autonomous community

within the British Empire. The King-Byng Affair The Election of 1925 Between 1921 and 1925 economic conditions in most of Canada improved but The Progressive party was

weakened by internal disagreement and The Liberals had failed to keep all the promises of 1921. They were now vulnerable in the Maritimes because of Freight Rates and Tariffs.

The Election of 1925 II Conservative seats Liberal seats Progressive seats Mackenzie King lost the election but called on the support of the Progressive Party and refused to resign. The King-Byng Affair 1926

A scandal in the Liberal government forced Mackenzie King to ask Lord Byng, the GovernorGeneral, for dissolution. Lord Byng would not grant this request because Meighen led the largest party. An election had just

taken place in 1925. Lord Byng The King-Byng Affair 1926 II A reluctant Arthur Meighen now formed government. King accused Lord Byng and the Conservatives of twisting the Constitution. The Progressives continued to support the

Liberals and Meighen was quickly defeated. An election called for September 14, 1926 returned King and the Liberals to power. The Persons Case From the war Women worked overseas as: Nurses, Ambulance

drivers At home: Factories, banks, police forces Womens role is in the home not corrupted by politics to support the husband

Women wouldnt vote even if they could understand how Nellie McClung Women gained provincial suffrage: Manitoba January 1916 Saskatchewan March 1916

British Columbia April 1917 Women gained federal suffrage: May 1918 Agnes Macphail First female Member of Parliament

Famous Five Alberta anger Emily Murphy Nellie McClung Henrietta Muir Edwards Louise McKinney Irene Parlby Louise McKinney

Henrietta Muir Edwards Irene Parlby Emily Murphy - 1916 First female judge Other lawyers challenged her

She was not a person Emily Murphy First Female Judge in British Empire! (1916) Her cause united others

= The Famous Five The issue Did the word person in the British North America Act include women Took this issue to the supreme

Court of Canada Women no persons - 1927 Supreme Court said no 1928 Famous Five take the Issue to

Britain Privy Court Persons Case 1929 Privy Court Decision Women are persons Women can become members of the Senate

Legacy Allowed for the greater participation of women in public life None of the Famous Five made it to the Senate though Cairine Wilson, 1930 The Great Depression

Canadian Economic Expansion in the 1920s Primary industries such as pulp and paper and mining had experienced growth during the war and continued to expand through the 1920s. Wheat did well during the war but the price fell in 1921 and did not recover until after 1924.

Manufacturing had also expanded and after the war began to produce a variety of consumer goods. Chapter 3- Canada and the Twenties Do Activity Sheet- 3-1, 3-2 Know the time line on page 49 Do Activities:

Page Page Page Page Page

51:1-4 56: 1-4 61: 1-3 65: 1-4 72: 1-4 Problems in The Canadian Economy Canadian prosperity in

the 1920s depended mostly on resource industries such as pulp & paper and mining. The Canadian economy was too closely linked to the United States and to European recovery. Many Canadians and some parts of Canada

did not share in the prosperity of the 20s. Canada and the Crash of 1929 There was little market for the 1928 wheat crop and drought killed the 1929 crop. As consumer spending slowed Canadian factories began to close and unemployment increased.

Mackenzie King and the Liberals had few solutions. The Business Cycle Successive stages of prosperity followed by depression and then recovery are normal for the economy. The 1920s were marked by unprecedented prosperity.

It was to be expected that prosperity would be followed by a recession. The Business Cycle International Economic Problems High tariffs brought on by excessive economic

nationalism restricted the flow of exports. Goods were overproduced for the domestic economy and unable to be sold abroad. Easy credit practices made ordinary people vulnerable to fluctuations in the economy. Buying stocks on credit or margin encouraged speculation. Psychological Problems There was a belief that Canada

and the United Sates had entered an era of perpetual prosperity. Many Canadians, including farmers, shared neither the prosperity nor the optimism. Even some factory workers found themselves unable to afford the goods they produced. The Market Crashes

Prices of consumer goods remained too high in spite of indications that the market was slowing. Artificially inflated stock prices did not represent the true value of the shares. Sales of many consumer products slowed resulting in less production and layoffs.

Investors stopped buying stocks and began to sell off their shares. The Stock Market Crash On Tuesday October 29, 1929 panicky investors dumped over 16 million shares on the New York stock market. These shares were sold for rock bottom prices. Black Tuesday was

the culminating event in several weeks of falling market values. It was not the cause of the Great Depression but marked the beginning of a period of economic decline which was to last until 1939.

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