Problems in Canada

• The British North America Act has given Canada dominion status in 1867 to create a strong central government in Ottawa and weaker provincial authorities
• The provinces kept most power, the federal government was limited in its ability to address national issues and ultimate authority still lay with the British Privy Council
• A three-party system emerged after the 1921 federal election. The parties were the Conservatives, the Liberals and the Progressives
• The Progressive Party was formed by a coalition supporting farmers and opposing tariff policies. They won 64 of 235 seats, controlling the balance of power
• There was a recession 1919-1921
• The prairies suffered from a fall in wheat demand, overproduction, drought and a drop in prices
• In 1921, the price of wheat was $2 per bushel; by 1922, only $1
• Shortages of goods led to wartime inflation until 1923
• Winnipeg was paralysed by strikes in May 1919. A strike on 21st June required the reading of the Riot Act and forceful dispersion
• In August 1922, 22 000 people went on strike in the cornfields of the west
• The maritime provinces of New Brunswick, Nova Scotia and Prince Edward Island formed the Maritime Rights Movement to dispute with high freight prices
• Liberal Prime Minister Mackenzie King offered a Royal Commission investigation that got freight prices reduced to keep the provinces' allegiance
• Canadian prosperity was reliant on wheat production, which had grown to 50% of the international market in 30 years. This led to railroad construction
• The west was developing vast mineral deposits and the North timber, called the Precambrian Shield
• The mining, paper and hydroelectric industries grew
• More people moved to cities, increasing house building and consumer spending
• The urban population increased from 50% to 54% in the 1920s
• In the 1920s, the average per capita income was $500
• Cheap motor vehicles were largely available from US branch plants in Ontario
• By 1918, there were 500 000 motor vehicles in Canada
• Tax revenue from motor sales and gasoline were important income streams for provincial governments
• Many Canadians bought shares on the margin
• Shares for Okalta Oil were $30 in January 1929 and $300 in March
• New millionaires became folk heroes. British Columbia had 83 millionaires in the 1920s
• Most prospering areas were the responsibility of provincial governments and their workloads grew without the infrastructure and funding to help them
• Tensions grew in Quebec because the Anglo community got higher-paying jobs, despite the educational achievements of French speakers
• There was a desire for Quebec separatism with the growth of journal Action Francaise and the Ligue des droits francais movement
• Quebecers wanted to maintain a French identity
• In Quebec, priests spoke against unions, preventing action against employment discrimination
• Economic growth was concentrated in the west coast and Vancouver. Pulp and paper became the staple Canadian industry
• By 1930, Canada supplied 60% of US newsprint
• Canada became increasingly economically dependent on the USA. Americans bought most Canadian newsprint and controlled Canadian motor industries
• South-east Canadians bought their coal from America, causing Canadian coal prices to fall by 40-50%