Economic Boom,
Economic Problems
CANADIAN HISTORY 1201
Winnipeg General Strike, 1919
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This was the most important and dramatic strike in Canadian
history
12,000 workers in metal-building trades wanted the work
week reduced and wages increased
The employers refused to deal with the union so the
employees went on strike
To show their support, 30,000 workers from other trades went
on strike as well
◦ This resulted in a General Strike
◦ Almost all industries and key services shut down
Winnipeg General Strike, 1919
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Violence erupted in Winnipeg and
one striker was killed and strike
leaders were arrested and jailed
June 21, 1919 became known as
Bloody Saturday
The government, factory owners
and police joined forces and
defeated the workers and forced
them to return to work
In the long term, the strike drew
attention to social and economic
conditions that working people had
to endure
In the 1920s labour leaders were elected to all levels of government
The Decline of the National Policy
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In the late 1800s John A. MacDonald’s Conservative
government put in the “The National Policy”
◦ Its purpose was to protect the Canadian manufacturing industry
and to avoid becoming dependant on the United States
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In the 1920s there was a New Economy in Canada based on:
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Electricity
◦ Mining – INCO in Sudbury (Nickel) and ALCAN (Aluminum)
◦ Pulp and Paper – Mills in Quebec, Ontario and New Brunswick
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Manufacturing
◦ Industrial developments in central Canadian urban centers such
as Montreal and Toronto
The Decline of the National Policy
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Manufacturing (cont’d)
◦ The importance of the economy shifted away from the western
provinces to Ontario, Quebec and British Columbia
◦ To access Canadian resources for automobiles and manufacturing,
there were massive amounts of American investment in Canada
◦ Trade with Britain declined and trade with the United States
increased
◦ The changes in the Canadian economy shifted from East-West
trade to North-South trade
Economy on the Upswing
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By the mid-1920s, the Canadian economy was on the upswing
Foreign investors had a new confidence in Canada and
investment picked up
Wheat
◦ 1925-1928 prices rose steadily
◦ Exports expanded to Europe
◦ New technology (i.e. trucks, mechanical harvesters)
◦ New strains of wheat developed
◦ Co-operatives were organized
◦ Businesses owned by farmers which loaned money to other farmers
at low interest rates
Economy on the Upswing
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Pulp and Paper
◦ Newsprint paper production became the 2nd largest industry
◦ Americans needed Canadian pulpwood for their newspapers
◦ Canada’s forests were being destroyed
◦ Many workers left Canada to work in U.S. industries
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Hydroelectric Power
◦ Electric power began to replace coal
◦ More demand for electricity in homes with the invention of new
electrical appliances
Economy on the Upswing
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Oil and Gas
◦ The 1920s were known as the “Oil Age” with the increased use of
automobiles
◦ Oil and gas was also used for cooking and harvesting
◦ The boom in the oil and gas industries had a devastating effect on
the Maritimes where coal was mined
◦ Many had to move to central Canada to find work
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Mining
◦ Many exciting mineral discoveries (i.e. copper, nickel, lead and
zinc)
◦ Rich mining deposits developed with American financing
The effect of the Boom Years: people were optimistic and
tended to spend more money!