The Great Depression in Canada

The Great Depression in CanadaBackground:

• Laurier, who had kept the country united, dies in 1919, and the liberal party splits.

• New political parties develop in the 20’s (e.g. National Progressive Party, United Farmers of

Ontario & United Farmers of Alberta), but only serve to introduce new issues:• Regulation of industry• Financial support for farmers• Federal v. Provincial authority• Social security

The Great Depression in CanadaEconomic Situation of 20’s

1. Cost of WW12. Dependence on US

A. US mineral demands (Cu & Zn)

B. Paper & Automotive demands3. Increased global competition

leads to greater supply and lower prices.

Pictured below: U.S. branch plants inundated Canada so as to circumvent the high tariffs.

The Great Depression in CanadaImpact of the Crash

• Imports drop by 25%• Exports drop by 55%• Wheat prices drop by 75%• Unemployment at 27%• Saskatchewan devastated by

Dust Bowl• Newfoundland reverts for

colonial status during Depression

• King ousted due to his stance on federal role in relief: “not a five cent piece!”

Above: The Dust Bowl affects the Canadian prairie. The photograph taken near Cadillac, Saskatchewan in 1937.

The Great Depression in CanadaResponse of R.B. Bennett(prime minister 1930-35)

• Increased tariffs by 50% (raises prices) & provided $20M in relief (helps cover cost of higher prices) Thus, no net gain.

• Relief programs• Canadian Wheat Board• Farmer’s Creditors Arrangement Act –

loans to farmers• Prairie Farm Rehabilitation Act• Bank of Canada – 1st nat’l bank• Canadian Radio Broadcasting

Commission

• Did not deal with causes!• (Statute of Westminster 1931 – grants

full autonomy to Canada)

The Great Depression in CanadaPublic Responses

• “Relief Camps” in the wilderness to deal with “Bennett Boroughs”• Run as military camps• Hotbed for radicals (e.g. Relief Camp Workers Union of 1935)• “On To Ottawa Trek” in April 1935 by Arthur “Slim” Evans, but stopped in

Regina. Led to violent confrontation with RCMP’s

• Struggle with provincial leaders for balance of authority (e.g. Mitchell Hepburn, Governor of Ontario and the Oshawa Strike of 1937)

Pictured Left: A “Bennett Buggy”

The Great Depression in CanadaResponse of W. L. M. King (prime

minister 1935-48)• Elected in 1935 on “King or

Chaos”• Signs Reciprocal Trade

Agreement in 1935 with U.S.• Trans-Canada Airlines in 1937.• Increasingly radical populist

opposition parties gain power• Communists (CPC of 1921)• Socialists (CCF of 1932)• Nationalists (Union Nationale) –

ruled Quebec from 1936 on under leadership of Maurice Duplessis.

The Great Depression in Canada