-
1497
High Demand for Fish
After John Cabot discovered Newfoundland in 1497, he found fishing routes for cod. This was quite good economically because of religious reasons. It was because of the abstinence days; the church banned meat consumption for 150 days, thus, they had the need for fish. -
1500
Fur Trade between Europeans and Natives
Due to cold weather, the Europeans needed fur to stay warm. In exchange they would provide metal objects to natives who have never been introduced to metal. They created alliances after fur became a "hit" in Europe. -
1500
Barter System
Around the 1500, the native people started trading goods. This was an effective system because the natives relied on each other to supply goods that other native groups could not get, due to territorial positioning. Trade was essential to pay war tributes and to facilitate peace negotiations. They traded near the water to facilitate trade for those in canoes, because that was the main mean of transportation -
Mercantilism
In the 1600, France practised mercantilism. Mercantilism is when a mother country takes raw materials from their colonies, transform them into manufactured goods and sell them back to their colonies. This was very profitable for the mother country. -
Currency
In New France they used the pound. Though if they lacked money, they would use wheat or beaver pelts to represent wealth. An intendant of New France decided another alternative would be playing cards. This could be exchanged for bills and coins. -
Diversification of the Economy and Independence of the Colony
In 1663, Mercantilism was being modified due to Jean Talon who was brought in to manage the territory. He wanted to diversify the economy and reduce the amount of imports. Therefore, he brought in animals like the cow to diversify the economy and he brought up new economical sectors. -
Chartered Companies
Chartered Companies - a company with a goal to trade colonize and/or explore. These Companies started in the 1600s and big ones still exist today. i.e: Hudson Bay Company. Founded for trading by Radisson and Groseillers. They needed money and the French wouldn't fund them so they turned to the British who gladly funded. -
Beaver Crisis
In 1690, the beaver economy was in crisis. Fur-related fashion became an old trend and the demand for beaver pelts decreased. Beaver pelts began to pile up in warehouses in France. The king then ordered a slow shutdown of the fur trade. -
Agricultural Activities
Most peasants still lived on the seigneuries so agriculture was the way to pay the lord back. Although factories have made some leave the country life many are still using the system meaning that agriculture was still a huge part of their daily life. Around 1750 farmers had the most common job because they simply lived off the land and with a big family stuff in the garden got done fast because the kids were also put to work. -
NorthWest Company
Northwest company was a fur trading business made by the British to compete with Hudsons bay because they dominated the market. The two companies later merged in 1821. The fur trade economy lost business later (on the decline) and timber took over. -
Napoleon Blockade
Due to a Continental embargo, set up by Napoleon to block the British from the timber in Europe, Britain reached out to Quebec and started their timber industry there. -
Development of new Uncharted territory
The timber trade affected the territory of Canada because it encouraged the colonization of new regions, such as Outaouais, Saguenay, Lac St. Jean, and Mauricie. They were also crossed by waterways that allowed for timber transportation and activating sawmills to get hydraulic energy. -
Fur trade decline
TImber became the main sector of the economy, putting ur on a decline. They didn't care about fashion anymore. -
Protectionist Policy
In 1815, the United Kingdom introduces different protectionist policies that favoured the purchase of raw materials in the colonies to be able to supply the factories of the mother country. -
Bank of Montreal
Creation of the Bank of Montreal to allow people to invest and obtain credit. (access to credit and loans) -
Lachine Canal
The Lachine Canal was built in Montréal in Saint-Henri on the St. Lawrence River. This canal was very useful because ships were bringing in goods. Not only were we importing, we were exporting which helped us economically. -
Agriculture Crisis
In the 1830's, an agricultural crisis struck Lower Canda. The Canadiens fell to subsistence farming.
Poverty made thousands of farmers leave the country to look for work in cities (in Canada or the United States).
The production of wheat then dropped so Lower Canada started importing wheat. -
End of treaty with British
British ended its protectionist treaty with Canada. Therefore, Canada no longer had an alliance and needed to find a new one. -
Reciprocity Treaty
Canada needed to find a new alliance with whom they could trade. Canada made a treaty with the United States in 1854 so that they could trade freely with them. This treaty only lasted for ten years. -
National Policy
John A. Macdonald, the first prime minister of Canada attempted to fix the economic crisis started in 1873. 3 factors that created a vicious circle:
1. Increase Custom Duties: Protect/Promote Canadian Industries by ensuring Canadians bought Canadian goods.
2. Build Railways: The Canadian Pacific Railway was to run coast to coast, unify people, increase trade.
3. Encourage Immigration: Especially in Western Canada, bigger population = bigger market. -
First Phase of Industrialization
1st phase:
- coal, steam-powered energy (dirty)
- unqualified workers
- weak production
- based in Big Cities -
Second phase of Industrialization
phase 2:
- hydroelectric energy (clean)
- qualified workers
- Smaller rural areas with abundance in resource -
Great Depression
The stock market crashed. This happened because people were borrowing money from the banks and all of the sudden, the banks wanted their money back due to the fact that stocks were starting to dip. Therefore, companies started going bankrupt. -
WW2
In 1945, this war ended the Great Depression. Canada had allies (like Great Britain) in Europe, and they sent food and military supplies. This stimulated the economy, increasing industrial production. The government also raised taxes and introduced victory bonds (people lend money to the government that's paid back with interest). There's the expansion of textiles, food, iron, and other natural resources. -
Hydro Quebec
The main sector that the economy of Quebec was focused on was Hydroelectricity, because Quebec had a lot of waterways, so it was ideal for this. So, to encourage Quebec business, the government took all private companies into one public company: Hydro-Quebec which is government-run.
