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Period: Jan 1, 1490 to
Economy and Development
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Jan 1, 1497
European Exploration
Christopher Columbus, financed by Spain, arrived in North America in 1492. This leads to further exploration and in 1497 John Cabot reaches Newfoundland.
Since the majority of Europeans were Catholics, fasting periods were set. On these days, they were not allowed to eat meat, but could have fish. Since fish became very popular in Europe, after the King heard of Cabot’s fish, the King finances more trips, for Cabot to bring cod and whale. -
Jan 1, 1499
The Fisheries
The sailors had two preserving techniques: Green fish and Dried Fish
Green: preserving the fish in salt.
Dried: They would put fish on the roofs of wooden structures so the sun and wind can dry it. Since the drying method was used on shore, and the FNP were living there, there was the first meeting between Europeans and FNP. There was some minor trading, mostly getting furs, which provided a second source of profits for the fishermen, when they were sold in Europe. -
Jan 1, 1500
The Barter System
Around 1500, the different nomadic and sedentary Aboriginal groups used the barter system, which means that they traded goods. These goods, were transported, often great distances, along with traditional routes, taken with them as they travelled. They only traded for what they needed (trade to others what the others need too). They traded for obsidian tools a lot. To get to their trade partners, the would walk in summer, use snowshoes in winter, and they used Canoes. -
Jan 1, 1501
Algonquian Division of Labour
Algonquian Division of Labour Women:
Gathering food
Fishing and hunting small game
Cooking, Butchering, housekeeping
Crafts (sewing, basketry, birch bark crafts etc…)
Care and Education of children Men:
Hunting and fishing
Cutting down trees, construction, and woodworking
Trade
War -
Jan 1, 1502
Iroquois Division of Labour
Iroquoian Division of Labour Women:
Agriculture (planting, harvesting, etc…)
Gathering food
Fishing and hunting small game
Cooking, Butchering, housekeeping
Crafts (sewing, basketry, birch bark crafts etc…)
Care and Education of children Men:
Clearing the land
Construction (houses, fences)
Seasonal hunting and fishing
Crafts (weapons, tools)
Trade
War and diplomatic relations -
Jan 1, 1503
Inuit Division of Labour
Inuit Division of Labour Women:
Gathering food
Fishing and hunting small game
Cooking, Butchering, housekeeping
Sewing
Care and Education of children Men:
Hunting and fishing
Construction
Making weapons, tools, boats and sleds They were very resourceful, and they used all of the parts of the animals. Caribou meat, skin and bones were used as tools. Also sea mammal fat was used as oil for light and heat. -
Jan 1, 1508
Slash and Burn Agriculture
The slash and burn agriculture means exactly that, slashing the plants around them and then burn it to prepare the land for cultivation.
By burning the vegetation, nutrients needed for vegetation would be in the ground.
When the land was depleted (non-usable) the Iroquoians abandoned the area and set up in another part of the territory. -
The Arrival of the French
The fur trade lead the French to settle permanently in 1608. The expansion of their colonial empire in North America in which the fur was the main trade between French-Aboriginal alliances. In 1663, the French took over the administration of the colony. At the end of the 17th century, France adopted policies to increase the population and diversify the economy of the colony. The French created a market in New France, where they could sell products and exploit the colony's resources. -
Fur Trade Monopolies
Before 1627, there were many trade monopolies in the colony, however in 1627, the company of 100 associates was created. 100 investors started the company, and profited from it over time. However, they were required to populate the territory. In 1627, France and England went to war. The English intercepted the ships going to New France, which were carrying 400 colonists and provisions for the colony. This made the Company suffer a major loss, and made it unable to settle the territory. -
Hudson's Bay Company
In the mid-17th century, Europeans had still not explored the territories northwest of the Great Lakes. Two explorers went to explore, and returned with detailed information about the territory and brought back high quality furs. Since they were unable to convince the French authorities to finance a commercial expedition to Hudson Bay. They then decided to offer their services to the English crown, which funded a maritime expedition in 1668, thus creating the Hudson’s Bay Company (HBC) in 1670. -
Mercantilism
Mercantilism is based on the accumulation of wealth, which was from the resources of the colony, in which the mother country could export. These resources would be changed into products, which made profits for for the mother country. -
Jean Talon Agricultural Development
Agriculture became the economic activity in which the largest number of people were involved. The land organized into the seigneurial system, which was mostly on the St Lawrence river, where the majority of colonists settled. Since Jean Talon’s arrival in 1665, he encouraged the inhabitants to diversify their agricultural production. He also increased the number of seigneuries, for more farming land, and he gave looms, so the fabrics did not need to be imported from France. -
King Louis XIV
King Louis XIV began his reign in 1661 and in 1663 he dissolved the Company of 100 Associates. He gained the control of economic activity in NF. He also set up crown corporations that he was in charge of, like the Dutch West India Company. This system ended in 1674. -
Fur Trade Alliences
The fur trade was built on the collaboration between the French and Native peoples, who traded goods and fur, but also military assistance and information. Champlain made alliances with the Algonquins, Montagnais, and Huron. Aboriginals distributed French goods in their trade network and brought fur to the trading posts in exchange. The French had rivals in North America. The english supplied arms and goods to the Iroquois Confederacy, who wanted to destroy the Huron, who were a French ally. -
Triangular Trade
According to the principles of mercantilism, the inhabitants imported most of their products from the mother country and could not trade with other empires. Therefore, Canada traded its resources with the French colonies in the Antilles, while continuing to provide the mother country with raw materials in return for manufactured goods. -
Shipbuilding and Ironworks
In order to diversify the colony’s economy, the French State made two industrial sectors in the 18th century: Shipbuilding and Ironworks.
In 1738 a royal navy shipyard was established in Quebec City. This lead to the creation of industries of tar, rope and barrels, which were needed.
Also since the Iron Ore in Trois-Rivieres was very high, the Saint-Maurice ironworks were established. Also, wood stoves, cooking pots and, more began. -
Commercial and Craft Activities
Begging in the 17th century, crafts people settled in the city. As the population grew, a rural market developed. In the city, specialized occupations begun including, Wigmaker, Gold and Silversmiths and Coppers. In the 18th century, merchants settled in the rural areas. They offered a variety of products imported from Europe. Agricultural products that were received as payments were sent to the cities. -
Commerce and Exploration
Throughout the 17th century, the French sent many explorers the great lakes and the south, along with Mississippi, and Ohio rivers. They built trading posts and forts on the banks of waterways, and served as warehouses, trade sites and military bases.
Jean Talon and others were in favor of this expansion. They saw it as a way to guarantee French domination of the fur trade, and helped contain the expansion of Britain's 13 colonies -
Treaty of Paris and start of British North America's economic activities
In the Treaty of Paris, in 1763, the British officially took possession of the former french colony in North America. The colony remained the primary source of the supply of raw materials and goods. In the mid 19th century, Great Britain maintained a policy of protectionism that favored the purchasing of resources from within the empire. Beginning in 1760, most of the French merchants returned to France but many people stayed. The new English arrivers wanted to have the british laws. -
Fur Economy
The Canadiens were doing the fieldwork, due to their knowledge and aboriginal contacts, but now anyone could participate in the fur trade. As the trading territory expanded, the competition for the fur grew. A few Montreal merchants established the North West Company, as a way to participate in competitive trade. It's main goal was to compete with the Hudson’s Bay Company. Eventually merges with HBC in 1821. The decline of the fur trade was beginning in the beginning of the 19th century. -
Timber Trade
Napoleon sets up policies preventing Britain’s access to timber. It increases demand, so they must find a new source, the colony This leads to: Creation of the Bank of Montreal in 1817 to allow access to credit and investment. Jobs like Lumberjacks, Mills, Luggers, etc... Seigneurs began exploiting the forests located in their territory, and invested to build sawmills. Transportation: Canals, Railroads, Steamship. The development of new regions began, like the Saguenay, which had waterways. -
BNA Economic Policies and free trade
There was Protectionism which made tariffs to protect local markets (ex. Corn Laws). British ends this and adopts Free Trade Policies, which no longer has customs or duties. It was an economic system in which customs/duties on trading were abolished. In 1846, the Corn Laws were abolished, and, in 1849, the Navigation Acts was also abolished. This leads to trading with the USA, which leads to the Reciprocity Treaty, where manufactured goods, and raw materials, could be traded without customs. -
Economic factors related to confederation
Great Britain abandoned its protectionist policies and adopted free trade. Now the colonies need to develop trade relation. The first phase of industrialisation, strengthened the economic ties between the colonies, with a new transportation network. In the 1860’s US wanted the the west of Canada, which the threat encouraged the colonies to consolidate. In 1866, the US cancelled the Reciprocity Treaty, which now made made US and Canada pay custom duties, when trading raw materials. -
National Policy (John A. MacDonald)
The national policy created jobs, with 3 proposals.
Increase customs/duties
Protects/promote Canadian industrial by ensuring Canadians bought Canadian goods
Build railways
CPR was to run coast to coast, making trade easier.
Immigration to Western Canada
Bigger population = Bigger market These all worked with the 3 sectors of industry around resources.
Primary sector, Involves the extraction.
Secondary sector, Involves the processing/refinement.
Tertiary Sector, Retail of a product or service -
Construction of a Railway
The political and economic institution wanted to use the capital for a railway network construction.
By connecting the provinces, it allowed the settlement of new territories and a larger Canadian presence near the American border. It also made it possible to enlarge the Dominion’s domestic market. The railway made it easier to transport and distribute goods. The Canadian Government paid many subsidies to the companies in charge of developing the railway, until its completion in 1885 -
1st Phase of Industrialisation
At the end of the 19th century, industrialization came to Quebec. Production changed from skilled craftsmen using slow costly methods to produce goods, to factory production. In the factories, they employed cheap, unskilled labourers to operate machinery that mass-produced goods quickly at a low cost. The skilled craftsman were too costly and too slow, so we shifted to the assembly line work, which was more efficient, but boring and dangerous.
This leads to the emergence of capitalism -
1st Phase of Industrialisation (2)
Both people moving to the cities from rural areas and immigrants arriving from Europe provided plenty of cheap labour. Raw materials such as wood, leather, and farm products were plentiful. The rivers and Lachine Canal provided water power (before was coal/steam engines) for driving machinery. The New Dominion of Canada provided an internal market and tariffs enacted with the National Policies protected industrialisation from foreigners. These movements were financed by British Capital -
The main types of early manufacturing industries
Food Processing: Flour milling, sugar refining, meat packing, brewing, butter and cheese (Qc farms shift to dairy production)
Leather: Tanning, boots and shoes
Textiles: Spinning and weaving, clothing.
Tobacco: Cigars, cigarettes, and chewing
Transportation equipment: Engines, bridges, and railway materials.
Wood: sawmills produced lumber, pulp and paper, furniture, windows and doors. -
Urbanization
Working class neighbourhoods were created close to the factories and living conditions were terrible there. Most working-class dwellings were made of wood and did not have running water, electricity or toilets. Moreover, these poor working conditions, which were endured by unskilled workers, would drive them to unite in order to demand improvements to their situation. Dur to the Timber Trade and overpopulation of farms, it opens up new areas like Saguenay, Mauricie, Outaouais and Laurentides. -
Second phase of Industrialisation
Several factors contributed to the development of Canadian and Quebec companies. Their success was based on their ability to compete against American and British companies. Therefore they needed to lower their production costs. Businesses started to establish themselves close to the sources of energy. The development of the railways also limited production costs, and gave access to resources and sped up the distribution of manufactured goods. -
Three Conditions for Industrialization (1 Wheat)
At the turn of the 20th century, the cultivation of wheat in the west expanded rapidly, which helped Canada recover from an economic crisis. Since it now had:
Cheaper means of transportation
Availability of land in the west
Growth of population due to immigration It quickly became the primary export, which went to the East, like Montreal, which served as a hub between the west and the United States. -
Three Conditions for Industrialization (2 Foreign Investments, and 3 First World War)
2 Foreign Investments
In the early 20th century, people from US and Britain invested in Canadian industries, which gave them profits.
The supply of foreign capital led to the modernization of industrial infrastructures and the creation of jobs. 3 First World War
During the war, the mining, iron and steel, and clothing sectors were developed. The demand for wheat and pork, for the soldiers, grew rapidly. These led to the modernization of factories, where a consumer industry, took hold. -
Exploitation of Resources, Hydroelectricity, and, Electricity.
Factories were established in Quebec.
Since they required lots of energy for smelters, the factories were established near waterways for hydroelectricity.
It was in the: Abitibi Region, Cote-Nord, and Gaspesie
These areas are developed and colonized. Urban transportation is now accessible, so people didn’t need to live near the factories (Streetcars)
Also lamps, ovens, vacuums, refrigerators, and other products in the 1920’s, for the rich. -
Working Conditions and Workers Development
In 1885, Manufacturer's Act was set.
It included clauses which provided for the protection of the health and security of workers. Also, a minimum age for factory workers And forced to limit the number of hours per week. Also, In 1921, in order to counter the influence of foreign unions, the Catholic Church decided to support the establishment of the Confederation of National Trade Unions. Workers Developments:
Development of Unions
CTCC (1921)
CSN (1960 formerly CTCC)
FTQ (1957)
CSQ (1946) -
The Stock Market Crash
In 1920’s, we had a time of prosperity. Europe started to rebuild. They pumped money into the world economy. Surpluses began to accumulate in warehouses, which laid off workers, which lowered the value of the companies on the stock market, which created insecurities. In 1929 the stock market crashes, due to Overproduction problems, Fall of prices, Loss of Investor Confidence, Decline in stock values, Companies not profiting, Production Decline, Layoffs and unemployment, Weak consumer purchasing -
The Great Depression of the 1930’s
The fall of the stock prices marked the beginning of a serious economic crisis throughout the US and the rest of the world. The Canadian economy was badly affected by the recession, because of not having exports to the US. The effects of the stock market crash were felt for almost a decade. Between 1929 and 1933, Canadian exports fell by 50%. In 1933, more than a quarter of Canada’s active population were out of work. Modernization of agriculture cause farmers to upgrade on credit and loans -
State Interventions for the 1930's depression and the second world war
The government put in a protectionist policy, however it blocked the global economy. This made measures worse.
Government Solutions
Public work projects to boost economy
Work Camps
Direct Aid
Encouraged Farming
WW2→Shift to war economy War Production
National Resources Mobilization Act in 1940
It regulates the supply of products necessary for war and it raises taxes. Victory Loans Bonds
Consumers can now earn profits on their savings, by lending money to the government, for the war effort. -
Social Change and Mass Consumption after the war
After 1945, tertiary sector employees, were increasingly in number. As a result they got several social benefits, such as
1 to 2 weeks of paid vacation per year
A 40 hour workweek
Overtime pay
A health insurance plan
The option to contribute to a pension plan. These social benefits, together with the savings accumulated from Victory Loan Bonds, increased Quebecers purchasing power at the time, when a consumer society was emerging.This began advertising, which gave back credit with interest. -
Public Investments in the 1960s and 1970s
During the 1960s, Quebec had a major political, social, cultural and economic changes, which was known as the Quiet Revolution. Quebec now started to become a welfare state, which means that the government now started to put funds into the economy and enhance the public purchasing power of consumers, while also creating jobs. Also it was the start of American Imperialism, which was the fear of the Americans taking over their economy. This started the new economic nationalism. -
Economic Nationalism
In 1962, the Government bought out most private electric companies and integrated them into Hydro-Quebec, to nationalize electricity. Hydro-Quebec played an important role in the province's economic development. The Quebec Government funded several public corporations, such as the Societe Generale de Financement in 1962. It was to stimulate Quebec’s economy by financing companies seeking to develop and modernization. Also, The tertiary sector is expanding, while reducing the other sectors. -
Recessions and Recoveries Since the 1980’s
The Organization of Petroleum Exporting Countries decided to curb oil production and raise prices. This caused an economic slowdown in the Western world. This also increased transportation costs, and a general increase in the price of goods. The governments began to go into debt, which slowed the economic development. This undertook the return to the privatization of certain public corporations like Petro-Canada, and the National Railway. -
Free Trade Today
Canada-United States Free Trade Agreement (Mulroney) eliminates customs and duties, which became the North American Free Trade Agreement (NAFTA). Today we are working to have a trade agreement with the European Union and Asia.
