Canada Between The Wars 1919 1939 The Economy

Canada Between The Wars 1919 -1939

The Economy

Post War Economic Problems OBU MANY SMALL UNIONS ¢ Wartime manufacturing ended and factories retooled for peace time, and downsized. ¢ 350, 000 veterans returned to the workforce. ¢ Unions attempted to consolidate strength gained during the war. ¢ Labour demands for “One Big Union” frightened government and business.

Post War Economic Problems II ¢ The government refused a veteran demand for a $2000 bonus. ¢ Farmers were upset by government prices for wheat. ¢ Inflation, after 1917, resulted in rising interest rates.

Winnipeg General Strike ¢ Workers demanded the right to bargain with employers. ¢ 30, 000 workers set up picket lines on May 15, 1919. ¢ The strike showed signs of spreading beyond Winnipeg. ¢ A frightened government brought a violent end to the strike.

Winnipeg General Strike

Railways ¢ Bankrupt railway lines established during the Laurier era were consolidated by the government as the Canadian National Railway system. ¢ To meet costs the CNR raised freight rates on the Maritime section of the line imposing severe hardship on industry in this region.

The Election of 1921

The Election of 1921 ¢ The new Conservative leader after 1920 was Arthur Meighen. ¢ The Liberals elected William Lyon Mackenzie King to lead their party. ¢ Discontent among farmers resulted in a new federal political party The Progressives. Arthur Meighen

The Election of 1921 II ¢ The Progressives supported free trade, lower taxes and cheap freight rates. ¢ The Liberals also supported free trade. ¢ The Conservatives continued to support high tariffs and this cost them the election. ¢ Mackenzie King formed government in 1921. Mackenzie King

The Election of 1921 III ¢Liberal seats ¢Progressive seats ¢Conservative seats Progressive strength in the West combined with Liberal support in Quebec and the Maritimes swept the Conservatives from power.

Canadian Autonomy

The Growth of Canadian Autonomy 1914 -1919 ¢ Decision making for much of World War I was entirely British. ¢ In 1917 the British War Cabinet was expanded to become the Imperial War Cabinet which included all of the Dominion prime ministers. ¢ In 1919 Canada placed her own signature on the Treaty of Versailles and took a separate seat on the League of Nations.

Mackenzie King and The Empire ¢Mackenzie King did not support military expansion and wished to distance himself from the Empire. ¢He cut the defence budget and appointed O. D. Skeleton to direct Canada’s foreign policy. ¢King’s policies were popular in the West and in Quebec.

King and Canadian Autonomy Liberal nationalism was demonstrated by ¢ The Chanak Crisis of 1922 ¾King refused to support Britain’s request for troops in case of a war with Turkey. ¢ The Halibut Treaty of 1923 ¾For the first time Canada signed an international treaty without British support.

The Statute of Westminster 1931 ¢ In 1923 at the Imperial Conference Mackenzie King and J. B. M. Herzog of South Africa proposed that the foreign policy of each dominion should be completely independent of British control. ¢ The King-Herzog Principle led to the Statute of Westminster of 1931 which established Canada as an “autonomous community within the British Empire. ”

The King-Byng Affair

The Election of 1925 Between 1921 and 1925 economic conditions in most of Canada improved but ¢ The Progressive party was weakened by internal disagreement and ¢ The Liberals had failed to keep all the promises of 1921. They were now vulnerable in the Maritimes because of Freight Rates and Tariffs.

The Election of 1925 II ¢Conservative seats ¢Liberal seats ¢Progressive seats Mackenzie King lost the election but called on the support of the Progressive Party and refused to resign.

The King-Byng Wing-Ding 1926 ¢ A scandal in the Liberal government forced Mackenzie King to ask Lord Byng, the Governor. General, for dissolution. ¢ Lord Byng would not grant this request because ¾Meighen led the largest party. ¾An election had just taken place in 1925. Lord Byng

The King-Byng Wing-Ding ¢ A reluctant Arthur Meighen now formed government. ¢ King accused Lord Byng and the Conservatives of “twisting the Constitution. ” ¢ The Progressives continued to support the Liberals and Meighen was quickly defeated. ¢ An election called for September 14, 1926 returned King and the Liberals to power.