CHC 2D NOTEBOOK
CHAPTER 5: THE GREAT DEPRESSION OF THE 1930s
Causes of the Great Depression
Overproduction of Goods
• Overproduction causes a surplus of goods
• When too many goods are not being produced and are not being sold, factories will
slow down their production
• Factories will not immediately stop production to prevent the economic structure from
immediately plummeting and with the hopes that the surplus stock will be sold
• This causes factories to lay off workers because they do not need them to produce
more goods
• People who are not employed cannot afford to buy the products made by the factories
• Laying off workers causes a “trickle-down” effect as it not only affects the workers,
but causes industries in the same location to shut down as well (i.e.- if an auto plant
was closed, tool and mould industries would suffer)
• The key to production is to only make those products which are most desirable to the
consumer and then make enough to meet consumer needs
Decline in Canadian Sales of Resources
• Canada has always had a primary resource based economy (agriculture, forestry,
mining, fishing, etc.)
• Canada sold its resources to industry, these industries made the resources into finished
products
• Industries did not need as many resources because they were not selling the finished
products they had made
• This hurt the Canadian economy
Canada’s Dependence On the United States
• The United States replaced Britain as Canada’s major trading partner
• During the 1920s Canada imported 65% of its goods from the United States but only
exported 40% of its good to the United States
• This unbalance made Canada’s economy unstable
• Depression in the United States meant that the US no longer needed Canadian goods
• This hurt the Canadian economy
High Tariffs Chocked International Trade
• Countries put high tariffs on foreign goods to protect their own industries
• For example, a high tariff was placed on Japanese imported cars in the late 1970s to
encourage Canadians to buy Canadian made cars
• High tariffs hurt international trade; once one country placed a tariff on another
country, that country retaliates by placing tariffs of their own
• This means that important trade dollars are lost for both countries
Too Much Credit Buying
• Many families became hopelessly in debt because of buying through credit plans
• The products they purchased on credit cost more than what they were worth and by the
time the credit was paid off a replacement for that product had to be bought
• If the wage earner became ill or laid off from work, it was impossible to keep up with
the payments and the products were repossessed
Too Much Credit Buying Of Stocks
• “Buying on margin” is purchasing stocks on credit; a small down payment is made and
the remainder of the money needed is borrowed from a stockbroker, usually at a high
rate of interest
• If the stock prices go up, you are able to pay back your loan and keep any profits
• But if stock prices go down drastically, you place yourself in a difficult financial
position and may face possible bankruptcy
• The stock markets crashed on Tuesday, October 29, 1929
• This day was known as “Black Tuesday”
• Stock prices were falling dramatically; as a result, shareholders panicked and dumped
their stocks. This caused the stock prices to fall even lower
• Stocks soon became worthless as more people were selling stocks than buying them
Economic Collapse
• Wheat prices were high, but competition from other countries such as the United
States caused wheat prices to begin to fall
• Canada was still a “staple-based economy” (dependent on raw resources)
• Many Americans were investing in Canada
• This integration meant that if the American stock market was to suffer a recession, the
Canadian stock markets would also suffer
• Many people believed that the good times of the Roaring Twenties would continue and
they bought many shares in companies, most of which “on margin”
Stock Market:
• I a company needs money they will sell stocks
• Stocks are shares in a company which people can buy
• If the company is profitable, the shareholders will receive a part of that profit
• Stocks can either be retained by the shareholder, or sold
• Companies put stocks in and get money out
• Shareholders put money in and get stocks out
On October 24, 1929 the Winnipeg Grain Exchange collapsed. Later on the 29, stock
markets across North America collapsed.
•
The value of 16 key shares on the Toronto Stock Exchange dropped by $1M per
minute
Underlying Causes of the Great Depression
• Too heavy reliance on staple products
• The Canadian economy’s reliance on exports
•
•
•
The weakness of the European economies after the First World War
Over dependence on the United States as a trading partner and source of investment
Overproduction of goods
The Business Cycle
• Market economies will go through cycles of alternating economic prosperity and
downturn every 5 to 6 years
• These patterns repeat for decades
Prosperity → Downturn → Recession → Recovery
Boom – Periods of extreme prosperity
Bust – A serious downturn
Depression – A deep, prolonged recession
Boom → Bust → Depression
Decline in Per Capita Incomes by Province from 1928/29 to 1933
Province
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
Nova Scotia
Prince Edward Island
1928-9 Average
594
548
478
466
549
391
292
322
278
1933 Average
314
212
135
240
310
220
180
207
154
Why did some business and political leaders not realize that a serious economic
depression had started in 1929 – 1930?
They thought that the economy was only experiencing a temporary economic recession,
which was a normal part of the business cycle. According to the business cycle, times of
prosperity would be followed by times of economic hardship once every 5 to 6 years.
•
•
•
Employment rates were low in 1926 to 1927, even before the Depression started
Between 1930 to 1933, employment rates dropped drastically
By 1933, one third of the Canadian workforce was unemployed
In which provinces did incomes decline the most?
• Saskatchewan ($343)
•
•
Alberta ($336)
British Columbia ($280)
In which provinces did incomes decline the least?
• New Brunswick ($112)
• Nova Scotia ($115)
• Prince Edward Island ($124)
Incomes declined the most in Western Canada and the least in the Maritimes.
Reasons for this difference include:
• The Maritimes did not have as much prosperity to loose
• The Maritimes had more diversified farming (the West only farmed wheat)
• The West experienced natural disasters such as dust storms, grasshoppers, and drought
Hard Times For Canadians
Devastation In Western Canada
• Canada had never experienced an economic crash as severe as the Great Depression of
the 1903s
• In the cities, anyone who could find work did so; children even quit school to find
work
• There was no money for luxury items; money was only spent on priorities such as
food, shelter, and clothing
• Farmers with mixed crops or market gardens were able to survive on what they grew
• Prairie farmers were the worst hit
• In the mid 1920s many farms suffered from crop failures as the overworked soil dried
up
• Many farmers settled in the Palliser Triangle which is a triangular area in the Prairies
near the American border which includes Southern Saskatchewan and part of Southern
Alberta
• In 1926 the heart of the Palliser Triangle in Alberta had vacant or abandoned farms,
covering close to 650 000 hectares
• Economics and nature devastated the lives of thousands of farming families
• Wheat prices collapsed
• Farmers who invested in modern machinery bought that machinery on credit and had
very little cash to fall back on when the wheat markets collapsed
• Farmers who could not pay back these debts were forced to declare bankruptcy
• Summer droughts and high winds produced dust storms
• These dry conditions were favourable for insects like grasshoppers; fields of wheat
were destroyed in minutes
• The dust storms were so severe that the CPR had to place snowploughs on their trains
to clear the rails of dirt and dust
• Because of these dust storms, the 1930s were known as the “Dirty Thirties”
• Between 1931 to 1937, more than 120 000 people immigrated from the Canadian West
to other provinces or the United States
The Depression In The Maritimes and British Columbia
• The economy of the Maritimes was dependent on exported products such as fish and
timber
• During the Depression foreign markets closed and many Maritimers in the fishing
industry were laid off or had their wages cut
• Not as many Maritime farmers were forced to abandon their farms because they had
more diversified crops and livestock
• The pulp and paper industry also suffered
• The average income remained lowest in the Maritimes after Saskatchewan
• In British Columbia, the loss of foreign markets caused widespread unemployment and
many workers in the fishing, forestry, and mining industries were laid off
•
The number of immigrants to British Columbia increased as workers flooded to the
province seeking jobs and a warmer climate
The Depression in Cities
• Many residents living in cites lost their jobs or had wages cut
• There was little consumer demand for furnishings, cars, or appliances
• This caused factories to limit their production and many closed
• The construction industry halted
• There were external economic political problems
• In 1931 the United States closed its borders to Canadian beef
• Calgary beef prices dropped by more than 70%
• The CPR closed Calgary rail repair and maintenance shops
• Cities also had to deal with a large influx of workers coming into the cities from rural
areas
• These rural Canadians hoped to find work in the cities, but instead they joined the
growing numbers of unemployed Canadians
• Some of these unemployed people created shanty towns along rail lines, on vacant lots,
and even in city dumps
The Human Face Of The Depression
Bulls – Railroad police
Brute – The tenured inmate of a jail or prison who would order newcomers around
Lump – A bag lunch
Knee Shaker – A lunch given to a transient on the porch of a house, presented on a tray
Sitdown – A proper meal with the host family
Jungles – Temporary communities near railroads
Jungle Buzzards – The semi-permanent residences of the jungles who would call the
shots to the temporary visitors
Transient – A homeless wanderer
Riding the rods – Riding the parallel rods underneath the train boxcar
Riding the rails – Riding inside or on top of the train boxcar
Transients had two reasons for riding the rails:
1. Finding a job
2. Adventure
Riding The Rails
• Many wanted to see adventure, they saw they train as a “magic carpet”
• Some used the rails to find work
• Many fathers sent their sons out to ride the rails and find work to help support himself
and take strain off of the family
• Many of these transients turned to church missions and the Salvation Army for
assistance
• These charities were overwhelmed by the number of transients wanting aid
• They thought that these transients should go back to their home communities
• Many of the young transients were given 2 meals and only 1 night of lodging
• Many young transients looked for food from housewives and farmers, whites were
given better treatment than blacks
• In order to get food, the young transients would offer to do work
• Some people viewed the transients as “bums” and the women of the town often
wanted nothing to do with them
• In some places, medical aid was denied to the transients
• Younger transients were paid less than adults to do the same work
• Riding the rails could be humiliating as many were forced to scavenge garbage cans
for food scraps
• There were dangers to riding the rails:
1. Getting on and off of moving trains
2. Losing their balance
3. Smoke from the train became concentrated when the train passed through a tunnel
4. Getting knocked off by rail switches
5. Getting caught by the police
• It was also dangerous for the young transients to stay at the jungles as they could be
killed simply for the shoes they had, regardless of the condition the shoes were in
• The Civilian Conservation Corps (CCC) was set up in the United States to solve the
transient problem
• In the CCC, youths could work for 6 months for food and shelter
• They could send home $25 a month to their families (their families could rent a home
for $10)
• The CCC lasted for 9 years
• The lesson many of the transients learned was to be thankful to have a job, many who
experienced this time of Depression had excellent attendance in their future careers
Tolerance and Intolerance During the Depression
How did Canadians help each other during the Depression?
Canadians shared food and clothes with friends and neighbours, provided weary travellers
with a place to sleep and a meal. Canadians also contributed to church campaigns and
charitable organizations.
Explain the inequitable treatment of women.
Single women were seldom given government relief because it was assumed that they
would stay and be supported by their families. In Vancouver in 1930, 5244 single men
were on relief but only 155 single women. Those who did not live with their families
experienced great hardships. Immigrant women were also discriminated against and most
of them were unable to find jobs.
Explain discrimination towards Jewish people.
Many industries refused to hire Jewish people and Jewish people were unable to land jobs
in higher paying professions. Jewish people could not even own property in some areas
and they could not join certain organizations and clubs. They could only find jobs if they
abandoned their faith and hid the fact that they were Jewish.
Explain the activities of the Klu Klux Klan during the Depression.
The KKK was very active in Canada during the Depression. They spread hatred against
blacks, Jews, Roman Catholics, and foreigners. Between 1929 and 1935, the KKK
placed pressure on the government which caused the deportation of 17 000 foreigners
who applied to go on relief.
Explain the treatment of Aboriginal Peoples.
Relief authorities assumed that the Native peoples would be able to survive off of the
land. However, when the Natives tried to live off the land (i.e. hunting and fishing), they
were prosecuted by the government because the governments claimed that they owned the
province’s natural resources.
Explain the intolerance shown towards some immigrants.
Canada’s immigration policy was restrictive against groups such as blacks, Jews, Chinese
and Japanese people. In 1930 and 1931, cabinet orders adopted a closed-door
immigration policy and banned all immigrants except those from Britain and the United
States. There was a decline in immigration by 90% during this time period. Farmers
were also not allowed entrance into Canada.
This closed-door policy especially hurt Jewish people wishing to come to Canada after
Hitler’s rise to power in 1933, which increased anti-Semitism in Germany. Only 4000
Jewish immigrants were allowed into Canada.
How were some Jewish families able to enter Canada under the tight immigration policy
under PM King and Bennett?
In order to enter Canada, Jewish families had to place their savings in Canadian banks
and re-apply for immigration as Christians (which meant denying their faith.
Escaping the Worries of the Great Depression
What is escapism? What were some escapist activities for people in the 1930s?
Escapism is seeking relief from an unfavourable reality by focusing on entertaining
activities.
During the Depression, Canadians enjoyed inexpensive activities such as hockey/curling
matches, church activities, potluck dinners, songs, dancing, playing cards, roller-skating,
miniature golf, board games, baseball games, and movies.
Why was Mary Pickford known as “America’s Sweetheart” even though she was
Canadian?
The Depression destroyed Canada’s movie industry and only large American companies
could afford to produce movies and pay the actors. This meant that Canadian actors like
Mary Pickford worked for American movie companies.
What purposes did 5-cent newspapers serve once they had been read?
After they had been read, these inexpensive newspapers were passed on for others to read
and were also used as wallpaper, insulation for houses, and even toilet paper.
What types of radio programming did Canadians listen to during the Depression?
Canadians mostly listened to American radio stations for comedies, dramas, mysteries
and music. American companies sold advertising space and were able to hire better radio
hosts and air better programming than Canadian stations. Canadians also listened to
Canadian stations for programming such as The Happy Gang and Hockey Night In
Canada with Foster Hewitt; famous for his “He shoots! He scores!”
What radio event in April 1936, did more than 50 million people listen to?
In April 1936, millions of people listened to the story of the rescue happening in Moose
River, Nova Scotia where a mining cave-in had trapped gold miners.
What two firsts are associated with Aimee Semple McPherson?
She was the first woman to broadcast a sermon over the radio and the first to own a radio
license.
Why were the Dionne Quintuplets a tourist attraction?
The Dionne Quintuplets were the first quintuplets to survive more than several days after
birth.
Why did the Ontario government take over caring for the Quints?
The government wanted to use the Quints to make money from tourism and took over
caring for them because their parents already had several children and were poor.
Fighting the Depression
There was opposition to the idea of government assistance for the ill, unemployed, and
the poor. Many Canadians felt that people were poor because of their own fault and
others felt that the Depression was simply a part of the business cycle and that prosperous
times would soon be restored.
In rural areas, people were able to live off of the land and the items that they grew.
However, in the cities, people were unable to live off of the land and were forced to rely
upon charities, church groups, neighbours, the generosity of relatives, and their own
ingenuity. Thousands of men and women were also forced to go on government relief.
Canadians soon realized that people were not at fault for the Depression and they felt that
the government should do more to help its disadvantaged citizens.
PM King still believed that the Depression was a part of the business cycle. When a
delegation of mayors from Western Canada seeking federal assistance, King refused to
act and convinced himself that this was simply a conspiracy by the Conservative Party to
embarrass him. King claimed that unemployment was the responsibility of provincial and
municipal governments. King became frustrated during heated debates, which occurred
in the House of Commons in which the Conservative Opposition suggested that the
federal government should take action to combat the mass unemployment. King declared
that he would not help any Conservative provincial government. He declared, “I would
not give them a five-cent piece.”
However King did take immediate action. Foreign tariffs had been raised against Canada
and the Americans passed the Smoot-Hawley Act, which made it difficult for Canadian
farming products to enter the United States. King countered this by raising tariffs on
steel, fruits and vegetables. However, he reduced tariffs on British goods, but these
measures did very little to change the situation.
Many Canadians looked to private charities for relief. Churches and other charitable
organizations set up soup kitchens to feed the hungry, provided poor Canadians with
clothing, and ensured that women with small children received milk. Churches also sent
relief aid to Canadians suffering the western provinces.
Public sources for relief were also set up. Many municipal governments set up soup
kitchens for the hungry. A form of welfare was also created to pay for the basic
necessities people had. The “dole”, as it was known, was a humiliating experience for
those who depended on it. Receiving this relief was very difficult as families had to prove
that they were so poor that they did not have a car, radio, or even a telephone.
Government relief was meant to be challenging to receive to encourage people to find
work as hard as possible. Food vouchers were also part of this relief, which caused
individuals to stand in long lines to receive food.
In the 1930 election, King’s Liberals were defeated and Conservative leader R.B. Bennett
became Prime Minister. By 1931 Bennett had passed two relief acts. Federal money
would be distributed to municipalities on the condition that the municipality and the
province provide matching funds. This money was largely directed towards public works
and very little was used as direct relief aid. Money was given out on the basis of
population and the number of public works projects created. This caused great variations
in the average amount of money that people received in different areas.
However, many municipalities had borrowed money for building projects during the
prosperous 1920s and were unable to provide the money to match the government funds.
A third relief act was passed in 1932. Instead of being directed towards public works,
this money was used for direct relief to needy Canadians. The federal government would
pay a third of the cost, the provinces would pay a third, and the federal government would
loan money to the provinces to cover another third, which would be paid by the
municipalities. By 1935, 10% of Canada’s population was on relief. Families were given
preferential treatment for receiving this aid and as a result many single men began riding
the rails in search of work. Unfortunately, if these men were unable to find work they
would be unable to receive relief because of a residency requirement.
The growing numbers of unemployed young men roaming the country began to concern
politicians. Mass protests had already taken place and the politicians feared a Communist
revolution. The federal government then decided to set up a series of relief camps for
these single men. The camps were run by the Department of National Defence in a semimilitary style manner. By the time these camps closed in 1936, over 170 000 Canadians
had spent time there. Workers were paid 20 cents per day and the tasks they did were
sometimes useful, but other times the projects were pointless ways of “making work”.
Although these camps gave many young men a chance to work and stay out of the cities,
discontentment grew which lead to the “On-To-Ottawa Trek” of 1935.
What does the term “national identity” mean?
National identity is a sense of belonging to a particular nation or people. It is how we
view ourselves.
Show evidence that the Great Depression had a strong effect on Canada’s national
identity.
The Depression unified Canadians because there was a shared sense of despair. This
despair inspired countless acts of charity and community spirit. Many Canadians who
rode the rails gained a sense of Canada’s geography and Canadian people. Roads
connected communities and they allowed Canadians to travel faster and to longer
distances. Airplanes and bush pilots delivered mail and passengers, which connected
Canadians in isolated areas to the rest of Canada. Canadians working in the relief camps
were able to unite together (The On-To-Ottawa Trek). Organizations such as the
Canadian Radio Broadcasting Corporation and National Film Board promoted Canada
and allowed Canadians to listen to and watch Canadian programming.
“Americanization” also decreased as tariffs were placed on American magazines to
encourage Canadians to buy Canadian magazines.
How did new technological developments, such as radio and air travel, help to
develop Canadian identity?
The Canadian Radio Broadcasting Corporation (CRBC) was created in 1932 and
broadcasted Canadian programming like Hockey Night in Canada and The Happy Gang
and allowed Canadians to learn more about their country. Radio gave Canadians a sense
of shared experience. Air travel allowed Canadians to remain in contact with other
Canadians. The Trans Canada Airlines was created in 1937 and by 1939 they had 15 tenpassenger aircraft.
How did American radio and magazines threaten Canadian culture?
American radio stations were able to sell advertisement space to companies, which gave
them large amounts of money. This meant that American radio stations could hire the
best disc jockeys and hire the best performers. Because America was a larger country
than Canada, American magazines had a greater readership, which gave them higher
incomes.
What steps did the Canadian government take to reduce this threat?
The Canadian government took action by creating the CRBC, which broadcast Canadian
content and by placing tariffs on American magazines. However once the Liberals came
into power, the tariffs were removed.
Explain why it became important to create the National Film Board.
The National Film Board (NFB) was created because of increasing American influence
on Canadian culture. The NFB presented Canadian life to both Canadians and the world.
The NFB produced and encouraged the production of Canadian films. During the Second
World War, the NFB became a propaganda instrument.
In the 1930s there was no government support for the ill, poor, or unemployed.
Why did Canadians oppose the idea of these people approaching the government for
assistance?
Canadians felt that these people were poor because of their own fault and that they should
help themselves. Others believed that assistance was not necessary because the business
cycle would soon end the temporary economic hardships.
How did the poor and unemployed get help in rural areas and cities?
In rural areas, Canadians could live off of the land.
In cities, unemployed Canadians depended on the kindness of charities and church
groups, the generosity of family and neighbours, and their own ingenuity.
Why did PM King refuse to help a delegation of Western Canadian mayors?
PM King claimed that the delegation was a Conservative conspiracy to embarrass him.
King also felt that unemployment was the responsibility of municipal and provincial
governments.
Why did King have to take immediate action during the Depression? What actions
did he take? Were his actions effective?
King had to take immediate action because America passed the Smoot-Hawley Act,
which raised barriers against Canadian farming products. Many European countries also
placed large tariffs on Canadians dried fish. King responded by placing tariffs on
imported steel, fruits, and vegetables and lowered tariffs on goods coming from Britain.
These measures had very little effect.
List examples of public and private relief during the 1930s.
Public relief included government relief (similar to welfare), government run soup
kitchens and relief camps.
Private relief included charitable organizations, such as soup kitchens. Other
organizations provided clothing and shelter and gave milk to mothers with children.
Many churches sent relief shipments to Western Canadians.
Explain why “going on the dole” was a humiliating experience.
Going on the “dole” (relief) was humiliating because it was disgraceful and the recipients
had to prove that they were poor. In order to receive government relief, families could
not own cars, radios, or telephones. Families on relief also stood out in society as they
were given food vouchers and did not receive shopping bags at grocery stores. Relief was
meant to be as unattractive as possible to encourage Canadians to do their best to try and
find work.
In 1930 R.B. Bennett defeated King. Under what conditions did he pass two relief
acts?
The conditions were that:
1. The municipalities receiving the money will provide matching funds
2. The money will be spent on public works (i.e. the building of roads)
How effective were the relief acts?
The relief acts were ineffective because many communities had taken loans in the 1920s
to pay for building projects and did not have enough money to match the funds from the
federal government. Relief was distributed on the population of an area and the number
of public works created. This meant that the aid was unequally distributed. For example,
one Vancouver suburb received $67.50 for each unemployed person, but another suburb
received $428.57. Because the majority of the money was spent on public works, very
little was used as direct assistance to the unemployed.
What did the third relief act in 1932 focus upon? How was relief administered?
This act focused on direct relief pay to individuals instead of public works projects.
Relief was administered as the federal government would pay one third, the provinces
would pay a third, and the federal government would loan the provinces the other third,
which would cover the share of the municipalities.
What percentage of Canada’s population was on relief by 1935?
10% of the population was on relief.
Who ran relief camps?
The Department of National Defence ran the camps.
How many Canadians spent time in the relief camps by the time they closed?
By the time the relief camps closed in 1936, over 170 000 men had spent time there.
Newfoundland During the Depression
In 1930, Newfoundland was a self-governing dominion of the British Empire. During the
1902s, Newfoundland’s economy did not suffer as much prosperity as Western Canada
and Central Canada and as a result they were forced to heavily borrow money.
Newfoundland’s economy was vulnerable as it was based largely on fishing exports.
With the Great Depression, markets for this fish disappeared. The government was
unable to keep up its debt payments and provide relief for unemployed Newfoundlanders.
In 1933 the Newfoundland government filed for bankruptcy and approached the British
government for assistance. Britain paid off Newfoundland’s debts and provided some
employment relief. However, Britain took over governing the island and Newfoundland
became a British colony.
Growing Discontentment
The “On-To-Ottawa Trek”
Relief camps did nothing to solve the unemployment problems and the camp occupants
became restless. The young men saw that their labour was mostly pointless and they
became tired of the military-style manner the camps were run in. In April 1935 these
camp occupants in the province of British Columbia gathered in Vancouver. In June
1800 men began the trek. They planned to go to Ottawa and present their complaints to
Prime Minister Bennett.
The Demands of the Strikers
• $0.50 per hour for every unskilled labourer and union wages for skilled labourers
• Work hours 5 days a week for six hours with a minimum of 20 days of work per
month
• All workers in relief camps and government projects were to be covered by the
Compensation Act and there was to be adequate first aid supplies in the camps
• A democratically elected committee of relief workers was to be recognized by the
government authorities
• Relief camps were to be taken out of the control of the DND
• There was to be a genuine system of both social insurance and unemployment
insurance with the provisions of the Worker’s Social and Unemployment Insurance
Bill
• All workers were to be guaranteed their democratic right to vote
The federal government became alarmed at the growing number of protestors converging
on Ottawa. The government saw this as a Communist uprising to overthrow the
government. PM Bennett ordered the RCMP to halt the protestors once they got to
Regina. Only the leaders of the trek would be allowed to meet with Bennett in Ottawa.
The leaders presented their demands to Bennett in Ottawa. Bennett refused all of the
demands.
Violence broke out on Dominion Day (later called “Canada Day”) when the RCMP and
Regina police attempted to break up a public meeting the trekkers had organized to raise
funds. In the Regina Riot one police officer was killed, several were injured, and 130
trekkers were arrested. Although the On-To-Ottawa Trek was over, several other treks
and protests continued against relief camps and unemployment.
After the Regina riot, the federal government offered free transportation to bring the
protestors back to their relief camps. Conditions in the relief camps eventually changed,
the DND turned control over the camps over to the provinces who viewed the camps as
public work camps and paid the men $0.40 per hour for labour.
Bennett and the Depression
Bennett’s government was slow to administer federal relief at the start of the Depression
because according to the Constitution, the responsibilities of fighting the depression fell
on provincial governments and municipalities.
Bennett believed that in order to protect Canada’s broken economy, high tariffs must be
placed on goods coming into the country from other countries. In return, Bennett agreed
to reduce tariffs on countries, which reduced their tariffs on Canadian goods. In 1932,
Bennett was able to get preferential tariffs with Britain at an Imperial Conference held in
Ottawa. These trade relations, however, had negative consequences. The Imperial trade
was too small to significantly revive the economy and the agreements angered the United
States, which further raised its tariffs on Canadian goods.
Despite this tension, both Canada and the United States agreed to sign the St. Lawrence
Seaway treaty, which would involve building a series of locks, channels, and canals to
link the Great Lakes and St. Lawrence River with the Atlantic Ocean. In the future, this
would lead to greater access to world markets and increased trade.
In 1934 Bennett created the Bank of Canada, which would regulate currency and credit,
provide financial services to private banks, and act as a financial advisor to the Federal
Government. In the same year, Bennett appointed a Royal Commission on Price Spreads
to look into concerns about the large profits that large retailers (such as Simpsons and
Eaton’s) were making. In 1935, the Prairie Farm Rehabilitation Act and the Canadian
Wheat Board were created by Bennett to revive Canada’s wheat market.
Bennett also proposed a “New Deal” to Canadians similar to the “New Deal” President
Franklin Roosevelt offered Americans. Bennett promised a series of reforms including
unemployment insurance, a minimum wage law, and a shorter work week.
In the 1935 election Bennett and his Conservative government were voted out and
replaced by Mackenzie King’s Liberals. There are several reasons for Bennett’s
loss:
• He took too long to implement his reforms which created a sense of helplessness on
the part of the Federal Government
• Bennett’s tough response to the protestors of the On-To-Ottawa Trek did not match the
reforms he promised
• Bennett convinced Canadians that he did not care about their personal misfortunes,
although he would send money (usually $5) to people who appealed to him through
letters, money was only given to children and women with children
• Mackenzie King also contributed to Bennett’s defeat by running a strong antigovernment campaign against him and did not offer Canadians another alternative;
•
King claimed that Bennett’s new reforms were fake because they reached beyond
federal power. In 1937, legal judgements declared that Bennett’s reforms exceeded the
power of the federal government
New political parties were able to split the vote which allowed King’s Liberals to win
even they only had 45% of the popular vote
Many Canadians became discontent with Bennett and they expressed their anger by
naming certain articles after him:
• Bennett Buggies (cars with no engines, pulled by horses)
• Bennett Blankets (newspapers)
• Bennett Barnyards (abandoned Prairie farms)
• Bennett Coffee (roasted wheat which was brewed like coffee)
• Bennettburgs (shanty towns occupied by transients)
New National Parties
Although most Canadians still believed in the capitalist system, many began to question
whether the capitalists system was actually helping them in during the Depression.
Some Canadians believed that the traditional parties (Liberals and Conservatives) were
unable to deal with the Depression and many new political parties were formed to offer a
third alternative.
The Communist Party
The idea of a communist economic system in Canada was gaining popularity.
Communism calls for people to share equally in the work and prosperity of society.
However, many Canadians feared that the Communist Party was controlled by Russia and
was attempting to take overthrow the Government of Canada and the Canadian way of
life. Because of these fears, the Communist party was outlawed from 1931 to 1936. The
Communist Party did not gain solid political ground, although they were able to elect
three representatives the provincial governments (including one to Manitoba in 1936),
only Fred Rose, their leader, was able to gain a seat in the House of Commons.
The Reconstruction Party
H.H. Stevens created this party in 1935. The platform of the Reconstruction Party called
for stricter government regulation on businesses; they believed that large retailers such as
Eatons and Simpsons were using their buying power to force small manufacturers to sell
their products at lower prices. Even though the Reconstruction Party ran 174 candidates
in the 1935 election, only Stevens was able to win a seat in the House of Commons. The
Reconstruction Party was soon disbanded and Stevens returned to the Conservative Party
in 1939.
The Cooperative Commonwealth Federation
The Cooperative Commonwealth Federation (CCF) believed that business owners who
were only concerned with their profits caused the Depression. Their solution was to
replace Canada’s capitalist system with a socialist system. Socialism calls for the
government to insure that all sections of society benefited equally.
In 1932, representatives from several socialist, labour, and farmer’s parties joined
together to form the CCF. Later, in 1933, a second convention was held in Regina and
the Regina Manifesto was approved. J.S. Woodsworth, a Member of Parliament for the
Labour Party and an organizer of the 1919 Winnipeg General Strike, became the first
leader of the CCF.
Suspicions about the CCF arose and some Canadians and opposition parties claimed that
the CCF was a Communist “front”. In the 1935 election, the CCF ran 119 candidates, but
only 7 were elected (two in Man., two in Sask., and three in B.C.)
The CCF called for radical reforms and their platform eventually influenced several other
parties and revolutionized Canadian life. Reforms such as unemployment insurance
(implemented in 1940) and the right for employees to join trade unions (implemented in
1944) originated from the CCF.
The Platform of the CCF:
• The people (through elected representatives in the government) would own banks,
insurance companies, transportation, communications, and other industries of large
scale economic importance so the economy can be organized to benefit everyone
• Government sponsored healthcare for all
• Crop insurance for farmers, accident and unemployment insurance, broader old-age
pensions, a national minimum wage, and family allownances
J.S. Woodsworth
• Born in Etobicoke, ON in 1874 and died in Vancouver, BC in 1942
• Woodsworth was a Methodist minister, social worker and politician
• Woodsworth showed compassion for the poor and immigrants by running the All
People’s Mission in Winnipeg
• Woodsworth was a pacifist who opposed Canada’s involvement in both World Wars
• His strong stands on social reforms and pacifism were criticized by many and he
eventually resigned as a Methodist minister
• In 1919, Woodsworth became one of the strike organizers for the Winnipeg general
strike for which he was later arrested
• In 1921 he was elected to the House of Commons
• He is quoted as saying “The government exists for the needs of the people.”
• As leader of the CCF he strived to have reforms such as unemployment insurance
become a part of Canadian society
New Regional Parties
New political parties were also formed on a provincial level. In Alberta the Social Credit
Party tried to find ways to revive Alberta’s economy and in Quebec, the Union Nationale
became the first modern party to speak for French Canadians.
The Social Credit Party
The Social Credit Party began in the mid 1930s under the leadership of William
Aberhart. Unlike the CCF, the Social Credit Party did not want to change the economic
structure. The CCF believed that the Depression was created because people did not have
enough money to spend. The CCF believed that by giving each citizen $25 per month in
the form of “prosperity tickets”, people would spend more and the economy would be
revived.
In 1935, the Social Credit Party won the provincial election in Alberta because of their
promise of prosperity tickets and because of the speaking skills of their leader. However,
these prosperity tickets were ruled unconstitutional because the federal government
governed banking and currency. Even after this, the Social Credit Party was still able to
stay in power in Alberta until the 1960s.
In the 1935 federal election, the Social Credit Party won 15 of Alberta’s 17 seats and won
47% of the popular vote in Alberta. Later it became a national party and gained support
from both Alberta and Quebec.
The Union Nationale
In the 1930s the Union Nationale formed in Quebec. Following the First World War,
Quebec experienced significant industrial growth thanks in part to investment from
Americans, the British, and English-speaking Canadians. French resentment towards
these English-speaking capitalists gradually increased.
During the Depression years French Canadians were concerned that neither of the
political parties understood their needs. The Union Nationale was then formed as a party,
which would communicate the needs of the French people. The leader of this new party
was a former Conservative named Maurice Duplessis.
The Union Nationale claimed that the Depression was the fault of English-speaking
Canadians. Many French Canadians believed this and in 1936, the Union Nationale won
the provincial election in Quebec.
Union Nationale Platform (1936)
• To defend the French language, Catholic Church, and French culture against Englishspeaking businesses, the federal government, and Communists
• To improve working conditions, find new markets for Quebec’s farm products, and to
build low-income housing
• To fight to increase provincial powers so that the party could carry out its economic
policy
Once elected Duplessis forgot many of his election promises and was known as “Le
Chef” (The Chief) because of his firm control over Quebec. Duplessis had a paranoid
fear of radical parties, like Communists, which he believed wanted to overthrow the
government of Quebec and the Roman Catholic Church. Although Duplessis gave some
aid to Quebec farmers, he ignored the needs of the working people and did very little to
change control of Quebec’s economy over to French Canadians. He drew attention away
from his broken promises by declaring a verbal war on the federal government, which, he
claimed, was attempting to take away power from the provincial governments and
threatened the rights of French Canadians.
Duplessis and the Union Nationale remained in power in Quebec until 1959 (with the
exception of 1939-1944). The Union Nationale encouraged French Canadians to develop
their own identity, separate from English Canadians, and to defend their rights. The
Union Nationale set the stage for French-English politics today.
The End of the Depression
Economic conditions began to improve in the mid 1930s and by 1938 unemployment
rates had fallen to 15% (down from 36% in 1933-4). However, over 300 000 Canadians
were still out of work. For many Canadians the Depression did not end until the Second
World War began in 1939. Now, many Canadians were able to find work in war
industries or enlisted in the Canadian Army.
Did Everyone Suffer Equally During the Depression?
Despite all the poverty and suffering of the Depression, the good life was available. For
those Canadians who had a job, life was quite good because they could take advantage of
low prices (i.e. – a newspaper maker who made $20 per week could rent a 3 room
bungalow for $15 per month or one with four rooms for $25). For the wealthy, there was
no limit to the form or variety of fun available. Raising and riding horses and racing
them was a hobby for the rich while those with less wealthy gambled at the racetracks.
This was the only legal form of gambling during the 1930s. Radio was an inexpensive
form of entertainment. Comedians like Amos and Andy, Jack Benny, George Burns and
Red Skelton were very popular. Professional spectator sports like baseball and hockey
became popular because people could listen to them on radio. American radio programs
became such a part of Canada’s way of life that PM Bennett established the Canadian
Radio Broadcasting Commission in 1933 in order to improve Canadian broadcasting.
This eventually led to the formation of the Canadian Broadcasting Corporation in 1936.
Results of the Depression
People who lived through the Depression carry permanent scars, which have manifested
themselves in the following ways:
• Paying for items with cash, instead of credit
• Fear of another Depression
• “Saving for a rainy day”
• Sparing their children and grandchildren from hardship by giving them things that they
did not have when they were children
As a result of the Depression, three government programs we have today are: family
allowances, employment insurance, and old age pensions for senior citizens.