The National Policy

• The National policy consisted of three parts• Tariffs, Transcontinental railways, and

settlement of the west• The purpose of tariffs was to protect the

manufacturing industries in the colony.

Protective Tariffs

• Protective tariffs charged a 40 per cent duty on imports.

• They were applied to goods that were also produced in the colony.

• The theory is: If you charge more money to companies for importing foreign goods, they will be more likely to purchase locally.

• The Local businesses were protected.

• Another development from the National policy was the need for the economy to expand in the manufacturing industry

• The only way they could do this and compete with the U.S was to create a transcontinental railroad.

• It was feared that the West would be taken over by the U.S unless it was settled.

• The railroad increased settlement drastically.

• Communities could now be connected to the large growing markets of central Canada.

Heartland

• Canada’s heartland is and has always been located in central Canada.

• By 1901, over half of the manufacturing was located in Ontario and a third in Quebec.

• Tariff protection allowed for investment with very little risk and competition.

Hinterland

• With Central Canada being the heartland, The West and the Maritimes were the hinterland.

• Halifax would be the port of call for the country as goods would move into and out of Canada.

Impact on the Maritimes• Initially the railway brought great

investment in the Maritimes.• All along the railway industrial centres

formed.• Truro, New Glasgow, Amherst and Sydney

had large factories that produced everything from iron and steel to textiles and pianos.

• Nova scotias coal resources also suggested that its economy would be on the rise.

• Maritime prosperity did not last.• The larger firms in central Canada

eventually bought out companies in the Maritimes, especially those in the Banking sector.

• These firms only thought about profits and did not care about community development in the Maritimes.

• Capital was moved back to the heartland.

• To make up for this decline Nova Scotia focused mainly on Coal production that was needed to fuel the growing heartland.

• The merchants in central Canada pressured the government to end the protection tariffs on coal so they could use cheaper imports from the U.S.

• The government agreed which had a disastrous effect on the Nova Scotia economy

• Between 1881 and 1931, the maritimes suffered a steady net migration.

• 500000 people left Nova Scotia for New England

Impact on the West

• Like the Maritimes, the prairie communities did not develop into industrial centres like Toronto and Montreal.

• They were too far away from large markets.• The immigration to the west also did not

happen as many people went to the us where they were giving land away very cheaply.

Industrialization

• Working conditions in the factories were harsh.

• People worked long days of 12 hours or more.

• Failure to meet these demands meant loss of wages and even physical punishment. Disease and workplace accidents were common.

Standard of Living

• Times were very difficult for families.• While work opportunities for women were

very limited, if a young couple would both find jobs they could earn a modest living.

• When women left work to have children, they lost their jobs and the family would plunge into poverty.

• In Urban centres housing was in great demand which led to increased rents.

• Many times families would share dwellings.• In most of the poor dwellings there was no

electricity, sewers, or running water.• Malnutrition and disease affected many

people and there was a high infant mortality and death rate.

The Social Response to Industrialization

• Eventually people realized that not everyone was benefiting from industrialization.

• Alcoholism, child abuse, and poverty were the main issues facing the poor and middle classes.

• This created a wave of social spending and iniatives.

• Prohibition was enacted to stop alcoholism, prostitution, and child abuse.

• Improving healthcare was a new priority. School vacination and nutrition programes were created

• Public sanitation• Sunday was made the “Lord’s day” and no

one worked.

Workers Response• Workers also began to fight for better

conditions.• They wanted a share of profits• Higher wages, shorter hours and better

working conditions• They began collective bargaining and

forming unions. Strikes were common.• This began to form the basis of Canada’s

sense of social responsibility.