INTER WAR YEARS IN CANADA 1919-1939

Post-World War One Aftermath of the Great War

After four years of war the world had changed

New boundaries in Europe and European powers were bankrupt.

Communist government in Russia and U.S. was on its way to becoming a world power, so Canada now looks to the south for a trading partner. The British Empire was now the Commonwealth of “Equals”

Post war Recession

Canada sees a post-war depression and growth of discontent

Inflation, high unemployment, regional division, labour unrest

Returning Veterans

many troops wait to return home –unrest in camps in Europe

no work or training when troops return- women in their jobs

government offered veteran $750 benefits -they want $2000

Labour unrest result of : Munitions factories were closing because of lack

of demand a quarter million out of work Resource extraction industries have no markets Unions grow from 143 thousand to 378 thousand Workers had waited through war for wages to

increase Russian Revolution had promoted radical union

ideas Western Canada has many new immigrants with

union experience

Winnipeg General Strike

Western Canada has many new immigrants with union experience

1919 Winnipeg General Strike –workers want right to bargain

June 21, 1919 – Bloody Saturday- troops charge crowd

Employers saw government action as attempt to drive unions out

Discontent in the West

Western farmers dissatisfied with controlled wheat prices

Inflation rate were high because banks wouldn’t lower interest rates –

small businesses go bankrupt Discontent leads to new parties on the

Canadian political scene

Post-Great War Politics 1919 – Wilfred Laurier dies and is replaced

by Mackenzie King 1920 – Robert Borden steps down as leader of

the Union Government and members return to their traditional parties

Arthur Meighen is the new Conservative leader

1921- General election – Liberals win with King as new PM

117-Liberals 50 – Conservative and NPP win 64 seats

The National Progressive Party

National Progressive Party emerges on the federal electoral scene with T.A.Crerar as leader. The party is formed in the western provinces and has a rural base in the farming sector of Ontario and the Prairie provinces.

NPP and Regionalism

The NPP felt the old protective tariffs of the past benefited the manufacturing sector but hurt the farmers and they fought for abolishing tariffs and lower freight rates. Regionalism was entering Canadian politics and became instrumental in the “balance of power” with minority governments depending on them. The NPP challenged government to make social change (ex Old Age Pension)

Canada Makes Moves Towards Greater Autonomy

1922- Canada exercises new autonomy by not supporting British in a war in Turkey- Chanak Crisis

In 1923 Canada negotiates its own international agreement with US (International Pacific Halibut Treaty)

The King-Byng Affair

1925- General Election – Liberals create a coalition government with NPP

support (Conservatives- 116 Liberals - 99 + NPP –24)

1926- King-Byng Affair –Lord Byng (Governor General) refuses to dissolve parliament at the request of the PM after corruption found in government – Meighen becomes new PM but is forced to call an election due to lack of support by the NPP

Mackenzie King Lord Byng

Mackenzie King Wins Majority

1926 – King wins election with a majority by managing to associate Meighen with an abuse of the Constitution because Byng hadn’t acted on the request of the Prime Minister

This leads to a change in the status of the Governor General at the Imperial Conference in 1926 which produces the Balfour Declaration and more autonomy

Americanization of Canada

The twenties began with an economic depression due to Britain and Europe being badly in debt. Canada now looks to the United States to sell its goods

By the mid-twenties the post war depression had ended and people were back to work and times were good

The Roaring Twenties Begin 1926- new prosperity in Canada largely

due to trade with US US had come out of WWI a wealthy

nation (Britain in debt) Immigrants had once again come to

Canada after WWI

Americanization of Canada Americans invested in “branch plants” in

Canada to avoid tariffs Canada has several new hydro- generating

plants (cheap energy) Canadians were put to work in Ont. and

Que. factories producing cars, clothing, radios, gramophones, refrigerators

Workers had lots of work logging, fishing, mining, and producing pulp and paper –extracting Canada’s natural resources

Americanization of Canada

The Canadian economy was based on its primary industries while the

more beneficial secondary industries developed in the US

Farmers had a stable market Consumers had money to spend and

the economy boomed

Americanization of Canada

New highways built to trade between Canada and US

New wealth created social and political change Better education provincial power increased Pensions end of prohibition Introduction of welfare programs American cultural influences grew:

Radio service clubs unions moviessports

Americanization of Canada

The Roaring Twenties created an overly optimistic view of economic wealth and dependence on the United

States. Canadians felt the good times would

never end.

The Great Depression

The Causes of the Great Depression 1. Drying up of world markets because

Europe was still under a huge financial debt owed to US from WWI. Britain and France owed U.S.Germans could not pay reparations to

Britain and France

Causes of the Depression

2. Economic protectionism- raising tariffs to protect industry was a problem because it effectively closed trade markets

Causes of the Depression 3. Excessive credit buying The roaring twenties created a “buy now

pay later” attitude (over-speculation) people borrowed money and bought on credit assuming the good times would never end. People bought stocks “on margin” to invest with no source of money to payback their loan.

Causes of the Depression 4. Over-production of products. New

methods of mass production which led a situation where Canada couldn’t absorb it’s own products

Canada relied heavily on export of its field, forests, water and mine products to other countries – mainly the U.S.

Signs of Trouble

First sign of trouble was the wheat pools not being able to get a decent price for their product due to overproduction of wheat (competition from Australia, Argentina, USSR and Europe created a glut in the market)

Signs of Trouble

Europe had no money to buy Canadian factory products and the US raised tariffs to protect their own domestic factories

Prices fell because of oversupply, factories closed, unemployment rose. Businesses started to fall because of debts owed for new expansions. Shareholders sold stocks to try to get their money out of failing companies

The Crash

October 29, 1929- Black Tuesday – New York Stock Exchange crashed because of a panic sell off by investors who fear losing their life savings. People lost millions. The Toronto Stock Exchange followed soon after – panic ensued.

Effects of the Depression on Canada

International tariffs put up and this led to restricted trade and closed markets resulted in million being put out of work

Canada was hit hard because of its dependence on exports of its factory goods, and natural resources to the U.S.

Effects of the Depression on Canada Prairie provinces were hit the worst bumper crop that flooded the market

drove prices down severe drought began and lasted seven

years ( dustbowl) The result was an economy that just

kept spiraling downward grasshoppers followed devouring what

remained

Effects of the Depression on Canada

200,000 forced from their farms per capita income dropped 71% in three

years 2/3 of population in Saskatchewan are

put on some sort of public assistance

Effects of the Depression on Canada

Overall Canadian incomes fell 50% - one in four Canadians was out of work (27%)

Two million out of ten million were living on relief hand-outs and later in the depression the government offered a relief payment called “pogey”. People had to publicly declare their own financial failure to receive vouchers to buy food.

Effects of the Depression on Canada

Many proud Canadians were desperate enough to go through the humiliation for relief to be able to feed their family. There was no unemployment insurance or welfare programs – millions of people forced to rely on charity. Many Canadians were destitute, humiliated and starving. The suicide rate in Canada soared.

Politics of the 1930’s

Liberals were in power as the Depression hit Canada.

Mackenzie King doesn’t want to acknowledge the severity of the Depression- he doesn’t know what to do and wants people to wait it out. “The economy needed to”rest” after a long bull market, it was a normal depression like in 1913 and 1921”, “the economy was fundamentally sound” he said.

1930 Election King’s 5 cent piece speech

With an election coming up in 1930 King mistakenly says he wouldn’t give a 5 cent piece for relief programs to any Tory provinces- he appears uncaring and unsympathetic and loses the election (this benefits King later)

Conservatives 131- Liberal 91- NPP 12-Labour Party 3

R.B. Bennett Takes Power RB Bennett takes power promising to

“end unemployment or perish in the attempt”. He is a self-made millionaire, corporate lawyer and business tycoon who gave the provinces $20 million for emergency relief ( King called this “fiscally irresponsible” )

Bennett’s Plan Fails Bennett raised tariffs on imports by 50% -

protectionism- this caused other countries to respond with their own tariffs

-created the Bank of Canada to regulate monetary policy

-created the CBC Bennett plans all failed and the depression

deepened -he becomes the scapegoat for frustrated

Canadians and people coin phrases like “Bennett Buggies” “Bennett-burghs” “Bennett tea” “Bennett Barnyard”

A Sign of the Hardship

People fight for jobs – discrimination Religious leaders- Depression was

punishment for the “loose living of the 20’s”

-Radicals like communist leader Tim Buck are given stiff jail sentences.

Men Hunt for Work

Single men could get no relief so they

“ rode the rails” -Bennett created work camps for single

men- set up by the DND – they were like slave camps, demeaning work, 20 cents a day

- over 170,000 men spent some time in these camps

Trek on to Ottawa

Trek “On to Ottawa” led by Arthur “Slim” Evans started as a protest movement in the work camps that involved thousands of men riding freight trains to Ottawa to protest their treatment. The protest is stopped in Regina and results in a violent riot.

Bennett’s New Deal

In 1935 – pre election Bennett offers his version of the “New Deal” a complete 180 turn offering unemployment insurance, minimum wages (limit hours of work),farm credit and farm rehabilitation measures to deal with dust bowl (soil erosion).

1935 Election- King or Chaos Mackenzie King points out this sudden

turn in direction and Bennett loses the election and leaves Canada. King returns to power under the slogan “King or Chaos”. King questions Bennett’s ideas as unconstitutional – provincial responsibility?

King’s Lassize-Faire Approach Mackenzie King returns with few

answers as to how the handle the Depression. King returns to “lassize-faire” (hands-off) approach to the economy

King Abandons Balanced Budget King signs a new trade agreement with

US that lowers tariffs He gives tax exemptions -1938 - He abandons the balanced

budget to get stalled economy moving again

He closes down relief camps and opposes idea of more aid to provinces

Rowell-Sirois Royal Commission

King sets up the Rowell-Sirois Royal Commission to study

Federal /provincial relations and the question of which branch of government bears the responsibility for unemployment insurance and other social benefits.

A New Approach to Canadian Political Life

Frustrated with the traditional two parties and their mismanagement of the Canadian economy during the depression (many showed their displeasure with the idea of brokerage politics practiced by the traditional parties) people looked for an alternative political party to better represent them as the NPP had done in the 1920’s.

The Politics of Protest

Dissatisfaction caused by certain economic groups feeling betrayed (farmers, labours) and certain regional groups felt ignored by federal government.

Radical political parties reached new heights during the Depression

Communist Party Formed in 1921 at a secret meeting in

Guelph, Ontario 1931 – RB Bennett promised to crush the

Communist under an “iron heel” - Leader Tim Buck and eight others arrested in raid and

Buck serves five years hard labour in Kingston and survives an assassination attempt by guards which was only meant to “frighten him” according to Minister of Justice after the cover-up comes out in House of Commons

Cooperative Commonwealth Federation

Began in 1933- Led by James Shavers Woodsworth who was a Methodist minister who combined Christian social gospel with economic ideas of socialism (former leader in the Winnipeg General Strike and Labour MP from Winnipeg)

The CCF The CCF was an alliance of

labourers, farmers and intellectuals. The CCF believed that big business was at fault for the depression. Their goal was to replace “free enterprise”. Unlike the communist idea of overthrowing government the CCF wanted to introduce “democratic socialism” to Canada.

The Regina Manifesto The CCF policies were laid out in the Regina

Manifesto (drafted by Frank Underhill) and stated: Government should “nationalize” all productive business -mines, farms, financial institutions and communication networks – all profits should be used to provide social benefits to everyone equally like:

Unemployment Insurance Old Age Pension Family Allowance Free Medical Care Minimum Wage

CCF in Parliament

In 1935 CCF win seven seats in House of Commons and a young Tommy Douglas of Saskatchewan is one of them. He will be first premier of the socialist government in Saskatchewan in 1944. He will also be first leader of the NDP in 1961 (CCF + CLC = NDP)

Social Credit Began in Calgary in 1934 -Led by

William “Bible Bill” Aberhart (a principal and radio minister). He combined political and religious appeal with a genius for campaigning. “The economy was like a human body. Just like blood must circulate to keep it alive so must money circulate through the economy” (developed by Major C.H. Douglas).

The Social Dividend

Social Credit was an alliance of western farmers who felt the “Eastern” Banks had betrayed them and would not lend them money so it could circulate. Aberhart’s solution – he wanted to supply a social dividend or credit of $25 a month to every adult in the province to give people purchasing power which would lead to prosperity and job creation and revive a stagnant economy

Finding Success in the West Alberta elected 56 Social Credit MLA’s out of 63

provincial seats. After two years in power Social Credit went to produce its “funny money” scheme and the federal government (Supreme Court) stepped in and declared it illegal under the constitution (a federal responsibility) - Aberhart once again blamed the Eastern bankers. The Social Credit went on the have long reigns in both Alberta and BC. Aberhart replacement in Alberta was Ernest Manning, father of Preston

1935- General Election –17 MPs elected federally

Union Nationale Began in 1935 in Quebec -Led

by Maurice Duplessis who turned a French Canadian nationalist protest movement into political party.

They felt that since WWI Quebec had been ignored and that English control of business and wealth within Quebec was exploiting French Canadian farmers and workers.

Union Nationale

In 1936 Union Nationale swept the provincial Liberals out of power in Quebec

Duplessis gains power by appealing to Fr. Canadians and offering to retake control of Quebec’s natural resources from the English minority. He promises increased provincial control, to secure new markets for Quebec’s farm products, improved working conditions and lower income housing.

Duplessis’s Padlock Act Duplessis is anti-union and anti-communist

he creates “Padlock Act” to throw communist in jail for communist behaviour which he said “is something that can be felt”. He believed church has too much power within Quebec

He ruled Quebec until 1959 like a dictator that would bully people with the Padlock Act. The end of his time in office in Quebec would mark the beginning of what will be known as the “Quiet Revolution”.

The Person’s Case

Although the groundwork had been laid during the Laurier Era, the Women’s movement made significant steps during the inter-war period. After achieving the vote after WW1 , Agnes Macphail went on the be Canada’s first female MP. In 1929 the British Privy Council ruled that women were indeed “persons” under the law thanks to the work of the Famous Five.