Canada’s Great DepressionCanada’s Great Depression

IB History of the Americas IB History of the Americas

What were the causes of the Great What were the causes of the Great Depression in Canada?Depression in Canada?– Compare and contrast the causes of the Compare and contrast the causes of the

Great Depression in Canada with the USGreat Depression in Canada with the US– To what extent did the economic crisis in the To what extent did the economic crisis in the

US cause the downturn in CanadaUS cause the downturn in Canada

Guiding QuestionsGuiding Questions

The Causes of the Great The Causes of the Great Depression Depression in Canadain Canada

Overproduction and ExpansionOverproduction and Expansion

Canada's Canada's companies companies expanded their expanded their industries so they industries so they could meet war could meet war demand (WWI)demand (WWI)As European As European industry recovered, industry recovered, Canadian industry Canadian industry and agriculture were and agriculture were overproducing overproducing causing prices to fall.causing prices to fall.

Dependence on Commodity Dependence on Commodity ExportsExports

Canada's economy Canada's economy was overly dependent was overly dependent on commodity on commodity exports (example: exports (example: wheat, timber)wheat, timber) As U.S. and As U.S. and European demand European demand fell it created a fell it created a significant drop in significant drop in sales causing an sales causing an economical economical depression.depression.

Dependence on the United Dependence on the United StatesStates

The US was one of The US was one of Canada’s largest Canada’s largest buyers of timber and buyers of timber and minerals. minerals.

Also, US corporations Also, US corporations were buying shares of were buying shares of Canadian industries, Canadian industries, linking the stocklinking the stock markets of markets of the twothe two..

High TariffsHigh TariffsIn a effort to prop In a effort to prop up Canadian up Canadian products, the products, the national national government raised government raised tariffs.tariffs. The protectionist The protectionist strategy backfired strategy backfired when other when other countries imposed countries imposed retaliatory tariffs in retaliatory tariffs in Canadian goods… Canadian goods… Like Smoot-Hawley Like Smoot-Hawley tariffs made the tariffs made the problem worse.problem worse.

Too Much CreditToo Much CreditCanadians bought too Canadians bought too much on lease and much on lease and credit including stocks. credit including stocks. Therefore when the Therefore when the stock market crashed stock market crashed (partly due to the (partly due to the margin buying), margin buying), Canadians were in Canadians were in debt and faced a debt and faced a trying time as they trying time as they attempted to sell their attempted to sell their personal belongings personal belongings or were having their or were having their half paid-off half paid-off possessions possessions repossessed.repossessed.

The Dust BowlThe Dust Bowl

The Prairies were hit The Prairies were hit extremely hard by several extremely hard by several years of drought. years of drought. Dust storms swept across Dust storms swept across the prairies, making it the prairies, making it impossible for farmers to impossible for farmers to grow wheat. grow wheat. Thus, since the farmers Thus, since the farmers had frequently bought had frequently bought their seed and machinery their seed and machinery by using credit, when by using credit, when they couldn't pay off their they couldn't pay off their debts, the farmers were debts, the farmers were often bankrupted and often bankrupted and rural banks failed.rural banks failed.

Characteristics of the Characteristics of the Depression in Canada Depression in Canada

The Dirty 30s: UnemploymentThe Dirty 30s: Unemployment

Not once in the decade prior to the Not once in the decade prior to the Depression did the unemployment rate drop Depression did the unemployment rate drop below 12%. It peaked in 1933, at 26.6%. below 12%. It peaked in 1933, at 26.6%.

Those figures did not include the thousands Those figures did not include the thousands of out-of-work farmers and fishers, who were of out-of-work farmers and fishers, who were not counted in government statistics.not counted in government statistics.

Nor did it include the thousands who had Nor did it include the thousands who had simply given up looking for work. simply given up looking for work.

As the depression carried on, 1 in 5 As the depression carried on, 1 in 5 Canadians became dependent on Canadians became dependent on government relief. government relief.

Approximately ¼ (25%) of the population Approximately ¼ (25%) of the population was unemployed was unemployed

Current Unemployment Rate in Canada 6-Current Unemployment Rate in Canada 6-8%8%

Finding WorkFinding Work

At that particular time there was no such thing as At that particular time there was no such thing as unemployment insurance or welfare. People lost unemployment insurance or welfare. People lost their homes, were thrown on the streets, lived in their homes, were thrown on the streets, lived in shantytowns, rode the rails, and survived as best shantytowns, rode the rails, and survived as best they could. All people and all areas suffered. they could. All people and all areas suffered. Unskilled workers suffered more than skilled Unskilled workers suffered more than skilled workers. workers. Young people found it virtually impossible to enter Young people found it virtually impossible to enter the labor market.the labor market. University students were also dropping out all over University students were also dropping out all over the country because tuition was too much to pay. the country because tuition was too much to pay.

Single-industry towns such Single-industry towns such as Windsor, Sudbury, and as Windsor, Sudbury, and Oshawa - all in Ontario - Oshawa - all in Ontario - suffered more than areas suffered more than areas that were more diversified. that were more diversified. Similarly, more diversified Similarly, more diversified farming areas, such as the farming areas, such as the mixed farms of eastern and mixed farms of eastern and central Canada fared better central Canada fared better than those solely reliant on than those solely reliant on a single crop, such as a single crop, such as wheat on the Prairies. wheat on the Prairies. Because it was deemed Because it was deemed socially unacceptable for a socially unacceptable for a woman to hold a job woman to hold a job instead of a man, working instead of a man, working women suffered women suffered significantly. significantly.

The home workers of the The home workers of the houses had to find part houses had to find part time jobs to "make ends time jobs to "make ends meet.“meet.“Almost 30,000 immigrants Almost 30,000 immigrants were forced to go back to were forced to go back to their home country due to their home country due to illness and unemployment.illness and unemployment.The birth rate dropped The birth rate dropped from 13.1 live births per from 13.1 live births per 100 in 1930 to 9.7 in 1937.100 in 1930 to 9.7 in 1937.The death rate also rose The death rate also rose due to poor living due to poor living conditions, starvation, and conditions, starvation, and disease.disease.

Imports/Exports/ReliefImports/Exports/Relief

In Saskatchewan, over 200,000 In Saskatchewan, over 200,000 people are forced to leave their people are forced to leave their farms. 70% of their population farms. 70% of their population was dependent upon social was dependent upon social assistance (very basic).assistance (very basic).Overall in Canada, the incomes Overall in Canada, the incomes of families fell by over 50%of families fell by over 50%Imports fell by 55%; exports by Imports fell by 55%; exports by 25%.25%.Out of a total population of 10 Out of a total population of 10 Million, 2 million Canadians Million, 2 million Canadians were living off relief handouts were living off relief handouts (e.g. soup kitchens).(e.g. soup kitchens).

A “Soup Kitchen” during the Depression

Bennett Bennett

More on the More on the politics later… politics later… BUTBUT - On July 28 - On July 28thth, 1930 , 1930 R.B. Bennett became R.B. Bennett became Prime Minister of Canada.Prime Minister of Canada.He believed in capitalism He believed in capitalism and the free-enterprise and the free-enterprise system (i.e. leave the system (i.e. leave the economy alone and economy alone and everything will work out in everything will work out in the end)the end)

Canada’s ReactionCanada’s Reaction

R.B. Bennett’s plans R.B. Bennett’s plans made the depression made the depression worse as his worse as his protectionism cut off protectionism cut off Canadian exports.Canadian exports.Many Canadians could Many Canadians could not afford to put gasoline not afford to put gasoline in their cars. Instead, in their cars. Instead, their cars were pulled by their cars were pulled by horses!horses!Canadians called these Canadians called these cars “Bennett Buggies”cars “Bennett Buggies”

The “Bennett Buggy”

Relief Camps Relief Camps

Relief CampsRelief Camps

In October, 1932, Canada was faced with In October, 1932, Canada was faced with massive unemployment.massive unemployment.Many of the unemployed consisted of men Many of the unemployed consisted of men “riding the rails” out west to seek work.“riding the rails” out west to seek work.British Columbia saw a huge influx of British Columbia saw a huge influx of unemployed.unemployed.The BC provincial government requested The BC provincial government requested help.help.

Relief Camps (cont’d)Relief Camps (cont’d)On the recommendation of On the recommendation of General Andrew General Andrew McNaughton, Bennett McNaughton, Bennett created relief camps.created relief camps.This was a nationwide This was a nationwide system of camps to house system of camps to house and provide work for single, and provide work for single, unemployed, homeless unemployed, homeless Canadian males.Canadian males.The camps were placed The camps were placed under the Department of under the Department of National Defense, but run National Defense, but run by civilians.by civilians.

Relief Camps (cont’d)Relief Camps (cont’d)

Men in the camps could neither vote nor Men in the camps could neither vote nor organize into unions.organize into unions.

The camps were voluntary, but men who The camps were voluntary, but men who resisted could be arrested for vagrancy.resisted could be arrested for vagrancy.

The camps were located in remote areas, The camps were located in remote areas, such as the interior of B.C. and northern such as the interior of B.C. and northern Ontario.Ontario.

Relief Camps (cont’d)Relief Camps (cont’d)Typical jobs that men would perform Typical jobs that men would perform were:were:– Clear bushClear bush– Build roadsBuild roads– Plant treesPlant trees– Build public buildingsBuild public buildings

In return, men received:In return, men received:– Room and boardRoom and board– Medical careMedical care– 20 cents a day (one-tenth of what 20 cents a day (one-tenth of what

an employed person would make an employed person would make doing the same work)doing the same work)

On To Ottawa – The TrekkersOn To Ottawa – The Trekkers

Instead of easing the unrest felt by the Instead of easing the unrest felt by the Depression, the camps became a focal point for Depression, the camps became a focal point for the men’s anger.the men’s anger.

In April 1935, 1,500 men went on strike.In April 1935, 1,500 men went on strike.

On June 3, 1935, the number had grown to On June 3, 1935, the number had grown to 1,8001,800

The communist inspired group Relief Project The communist inspired group Relief Project Worker’s Union organized a massive “Worker’s Union organized a massive “On to On to Ottawa TrekOttawa Trek” to take their complaints to Ottawa.” to take their complaints to Ottawa.

Strikers from unemployment relief camps en route to Eastern Canada during “On to Ottawa Trek"

Trekkers, as they were Trekkers, as they were called, picked up called, picked up protesters along the protesters along the way.way.

On June 14, the group On June 14, the group arrived in Regina with arrived in Regina with about 2000 men.about 2000 men.

Bennett viewed this as Bennett viewed this as a threat to law and a threat to law and order, and supported a order, and supported a railway order refusing railway order refusing access to the trains.access to the trains.

The DelegationThe Delegation

The Trekkers decided to send a The Trekkers decided to send a delegation of 8 people on to delegation of 8 people on to Ottawa.Ottawa.This included Arthur ‘Slim’ This included Arthur ‘Slim’ Evans, leader of the Communist Evans, leader of the Communist Party’s union.Party’s union.The delegation met with The delegation met with Bennett on June 22.Bennett on June 22.

The meeting didn’t go very well…The meeting didn’t go very well…Evans presented the strikers demands.Evans presented the strikers demands.– Strikers’ demanded: Strikers’ demanded:

> Adequate first aid in the camps> Adequate first aid in the camps> Extension of the Workmen’s Compensation Act to > Extension of the Workmen’s Compensation Act to campcamp workers workers> Repeal of Section 98 of the Criminal Code (used to > Repeal of Section 98 of the Criminal Code (used to outlaw the Communist Party in Canada) bans outlaw the Communist Party in Canada) bans “unlawful associations” “unlawful associations” > Right for camps workers to vote in federal elections. > Right for camps workers to vote in federal elections.

Bennett accused Evans of being a thief and an Bennett accused Evans of being a thief and an extortionist.extortionist.Evans called Bennett a liar.Evans called Bennett a liar.The delegation was escorted from the building.The delegation was escorted from the building.

The Regina RiotThe Regina Riot

Upon returning to Regina, Evans found Upon returning to Regina, Evans found that Bennett had broken a promise that all that Bennett had broken a promise that all men would receive 3 meals a day.men would receive 3 meals a day.The Trekkers had run out of funds for The Trekkers had run out of funds for meals.meals.On June 28, the Regina Police announced On June 28, the Regina Police announced that anyone who assisted the strikers that anyone who assisted the strikers would be arrested.would be arrested.

On July 1, the leaders organized an ‘open-On July 1, the leaders organized an ‘open-air’ meeting in downtown Regina.air’ meeting in downtown Regina.Bennett decided to arrest the leaders.Bennett decided to arrest the leaders.There were over 1500 people in There were over 1500 people in attendance, only about 300 of which were attendance, only about 300 of which were Trekkers.Trekkers.At 8 pm, a whistle was blown, and the At 8 pm, a whistle was blown, and the Regina Police charged the square.Regina Police charged the square.

The Agitators

The riot that ensued The riot that ensued involved fighting with involved fighting with sticks, stones and sticks, stones and hands.hands.

The police fired their The police fired their revolvers in the air, revolvers in the air, and used tear gas and used tear gas bombs.bombs.

120 protestors were 120 protestors were arrested.arrested.

One policemen and One policemen and one protestor died.one protestor died.

On July 4, the Saskatchewan government On July 4, the Saskatchewan government assisted the marchers on their way, and assisted the marchers on their way, and most returned to Vancouver.most returned to Vancouver.

Bennett characterized the On-to-Ottawa Bennett characterized the On-to-Ottawa Trek as "not a mere uprising against law Trek as "not a mere uprising against law and order but a definite revolutionary effort and order but a definite revolutionary effort on the part of a group of men to usurp on the part of a group of men to usurp authority and destroy government."authority and destroy government."

The Riot

Aftermath of ReginaAftermath of ReginaAftermath of ReginaAftermath of Regina

Discredited the Bennett government, 1935 elections Discredited the Bennett government, 1935 elections Conservatives went from 134 seats in Parliament to 39.Conservatives went from 134 seats in Parliament to 39.

Public sympathy for the Trekkers (strikers) spilled over to Public sympathy for the Trekkers (strikers) spilled over to the Communist Party which organized the protest.the Communist Party which organized the protest.

The military camps were dismantled and replaced with The military camps were dismantled and replaced with smaller camps managed by provincial governments with smaller camps managed by provincial governments with slightly better pay using federal fundsslightly better pay using federal funds

Public support set the tone for social welfare reforms to Public support set the tone for social welfare reforms to take place after WWII. take place after WWII.