Review In-Class Formative

1
Review In-Class Formative

• Remember you had the article on Aboriginal
  European economic exchanges and asked questions

2
Development of the Canadian Economy
3
What do the following have in common?
They all helped shape the Canadian economy.
4
Outcome D2

• Outcome
• analyse the role played by the Staple Trade in
  the development of (Colonial) Canada.
• Indicators of Mastery
• evaluate and compare the role played by the cod
  and fur trades in the development of Canada
• analyse the effect of the timber and wheat trades
  in the economic expansion of early 19th century
  British North America
• compare the role of staple trade (primary
  industries) in todays economy to that of the
  colonial era
• analyse the effects of Britains adoption of free
  trade in the 1840s on BNA (e.g., Reciprocity,
  Treaty of 1854).

5
The Importance of Cod

• One of the key reasons explorers came to the
  shores of Northern North America was fishing
• The drying of fish was essential because it took
  so long to make the journey back to Europe
• Fish were plentiful in the North American waters
  especially the cod fish
• Cod was a staple food for the Europeans
  especially the western Europeans

• Establishing Context

• Image curtsey of http//commons.wikimedia.org/wiki
  /FileAtlantic_cod.jpg

6
Fish and Settlement

• Fishermen from Europe would often stay in fishing
  encampments for entire seasons to leave before
  the cold weather as early as the 1300s
• The cod fishery was deemed so important that it
  had to be protected from fisheries of competing
  nations a long term or permanent settlement was
  therefore required

• Reason for Encampment

• Image courtesy of http//commons.wikimedia.org/wik
  i/FileBidarka_kayak_and_salmon.jpg

7
Fur Beaver to be Exact...

• The trading in fur began almost by accident
• Fur became en vogue in western Europe
• Powerful and rich people wanted to wear fur,
  particularly beaver fur as it was seen as exotic
  and luxurious

• Image courtesy of http//commons.wikimedia.org/wik
  i/FileTricorne_hat_beaver_fur_c._1780.png

• The desire for fur...

8
The Beginning of the Fur Trade

• Fishermen at their seasonal encampments traded
  with the local native populations for furs on
  their backs
• The furs were made soft from continual use
• The fishermen traded old knives, pots, and cloth
  for the furs that would make them rich in Europe
• Soon the wealth from furs would surpass income
  from fish

• Image courtesy of http//commons.wikimedia.org/wik
  i/FileFur_traders_in_canada_1777.jpg

• Furs or fish...

9
Fur Trade spreads...

• As fur becomes the most important commodity
  Europeans begin to form companies with exclusive
  rights to trade with various native groups
• Fur company employees spread throughout the
  frontier to trap and trade
• As the value and importance of the fur trade
  increase the volume of the trade increases

• Image courtesy of http//commons.wikimedia.org/wik
  i/FileTrade_with_indians_1820.jpg

• Supply and demand...

10
Impact of Fur Trade on Native Populations

• Growth of fur trade demanded increasing trade
  with native populations
• Traded goods included more than old tools now
  included guns, ammunition, alcohol, manufactured
  goods such as hammers and axes, and clothing
• Common illnesses carried by European traders and
  explorers such as the flu, colds tuberculosis,
  and diarrhoea killed native people in the
  thousands
• It is estimated by some sources that up to 60 of
  native peoples died due to European disease

• Image courtesy of http//timelines.tv/smPox/more/s
  pread2.html

• Native populations became dependent on European
  trade

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The Staple Trade

• Staple Any commodity routinely used that if
  missing would severely impact the ability of a
  group of people to function. Examples of staples
  can include wood and certain foods such as rice
  or wheat.
• Staple Economy An economic theory that an
  economy can be formed and built on the trade of
  natural resources required by other nations or
  economies as staples such as fish, wood, or
  wheat. (Sound familiar?)

12
Ottawa extends review of Chinese bid for Nexen -
Business - CBC News

• Impact of Staple Trade in Contemporary Canada

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Expansion with Trade

• Canada is big the expanse of the nation
  required creative methods of transport before a
  national railway and road system
• The Canadian west provided for particular
  challenges due to the geography and terrain
• The requirement to move goods such as wheat and
  timber required the creation of waterways and
  trails

• Transportation was the main issue in
  pre-confederation Canada

• Image courtesy of http//commons.wikimedia.org/wik
  i/FileTimber_on_the_Ottawa_River.jpg

14
Land and people

• Harvesting of timber and farming of wheat
  required people
• The people had to live and work in settlements
• As more people were required and more immigrated
  to Canada the west began to open in earnest
  people began to move west and settle beyond
  Ontario into Manitoba, Alberta and British
  Columbia

• Requirement of living and working people...

• Image courtesy of http//commons.wikimedia.org/wik
  i/FileInspecting_the_work_of_the_Canadian_Forestr
  y_Detachment.jpg

15
Free Trade

• Free trade is the concept that nations will not
  charge tariffs or taxes on imported goods from a
  specific other nation.
• Why could this be a problem? What could be
  arguments for and against this concept?

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The Free Trade Debate

• For
• Dont get ripped off better deals
• Develop a strong trading relationship with the
  specific nation
• We could sell more goods in that nation
• If we dont charge tariffs to another nation they
  may not charge us
• Develop stronger diplomatic relationships
• Free trade creates jobs through increased demand
  therefore there is increased production and
  shipping

• Against
• Not fair to some other nations
• Bad Deal one nation may sell their goods too
  cheaply to the trading nation and loose out
• Kill Jobs If trading nations set up their
  production in a different economy they can trade
  back and forth
• The demands of one nation can skew the economy of
  another.

17
Harper's trade-boosting trip to India starts at
Taj Mahal - Business - CBC News

• Modern free trade?

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Why Reciprocity

• Britain ended protective tariffs in 1846 This
  made Canadian goods too expensive in European
  markets
• Economic depression made Canada look for closer
  markets for their goods a market that was
  desperately needed

• Image courtesy http//commons.wikimedia.org/wiki/F
  ileEdward_Walsh_-_Queenstown,_Upper_Canada_on_the
  _Niagara_(a.k.a._Queenston,_Ontario).jpg

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Reciprocity Treaty 1854

• Lord Elign and W. Marcy signed a treat in June of
  1854 between the United States and Canada
  (British North America)
• The United States would have access territorial
  waters of Canada for fishing and business
• Duties and tariffs were removed on both sides on
  goods such as grain, flour and breadstuffs,
  animals, meats, fruit, fish, poultry, tallow,
  coal, timber, and lumber

• How the treaty worked

• Image courtesy http//commons.wikimedia.org/wiki/F
  ileGranville_Street_at_Duke_Street,_Halifax,_1854
  .jpg

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Impact of the Reciprocity Treaty

• There was a period of economic prosperity
  directly after the treaty for about 10 years
• It could be argued that the prosperity was due to
  internal public works such as the development of
  the Great Lakes
• Many Canadians were against the treaty claiming
  that the Americans got more from the treaty than
  the Canadians

• It sort of worked...

• Image courtesy http//youngatvanier.blogspot.com/2
  009_03_22_archive.html

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Investigating the Staple EconomyUse the source
organizer to take jot notes.

• Group 1 (Fishery)
• CBC Digital Archives - Fished Out The Rise and
  Fall of the Cod Fishery - 1992 Newfoundlanders
  protest cod
• Group 2 (Fur Trade) http//www.thecanadianencyclo
  pedia.com/articles/fur-trade
• Group 3 (Staple Thesis and colonial economy)
  http//en.wikipedia.org/wiki/Staples_thesis
  http//faculty.marianopolis.edu/c.belanger/quebech
  istory/encyclopedia/econhistcan.htm
• Group 4 (Staple Thesis and contemporary Canadian
  Economy) http//en.wikipedia.org/wiki/Staples_thes
  is http//www.nrcan.gc.ca/statistics-facts/home/88
  7
• Group 5 (Reciprocity Treaty) http//www.histori.c
  a/peace/page.do?pageID345top

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Sharing Groups

• Re-organize into new sharing groups to complete
  the organizer Discussion Tracker.

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Canada is and was a resource economy.

• Do you think this could ever change?