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Sep 26, 1500
The Amerindians' trading system
16th century, trading occurred between the Iroquois of the St. Laurence Valley and the Algonquians. The Iroquois offered there framing surplus (corn, beans, squash, tobacco) in exchange for the hunting surplus from the Algonquians (fur, dry meat). The trading occurred on the land of the Algonquians bands' summer camps. Huron-Wendats were great merchants who were part of the Iroquois family. They were middlemen for the different nations. -
Period: Sep 26, 1500 to
Economy and development
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Sep 26, 1534
Trading with the Amerindians
Jacque's voyages led to him meeting the Amerindians and to him trading objects with them for fur. The Amerindians were accustomed to trading. Economic trade networks had long been established in northeastern America between the sedentary farming nations and the nomad hunting nations and since the 16th century with European fisherman. For the Amerindians these exchanges were more than just an economic activity: It was also the foundation for the establishment of political and military alliance. -
The company system / Hudson's Bay company
The companies that had a monopoly in the trading industry were financed be shareholders that shared the profits and the losses in proportion to their initial investments. They were the only ones who could determine the price and quantity of pelts that could be sent to France. In the 17th century, Pierre-Esprit Radisson and Medard Chouart Des Groseilliers, explored Hudson Bay. They established a fur trade. They turned to great Britain for help because France wouldn't help them. Founded in 1670. -
Birth of the fur trade (part 1)
The Amerindians offered furs to the European fisherman in exchange for metal objects like pots and knives. For the Europeans, the beaver pelts were worth a lot more than the metal. This was the opposite for the Amerindians. Since the profit of selling fur was a lot more than fishing, the fisherman would load their boats with metal to exchange with the Amerindians. The king granted Pierre Chauvin the monopoly of the fur trade in the St. Lawrence Valley. -
Birth of the fur trade (part 2)
Pierre Chauvin founded the settlement in Tadoussac in 1600. It was deserted as of 1601, but the premises remained a trading post for the Amerindians. The commercial alliances with the Amerindians were essential for the french, who were outnumbered by the North American Amerindians. These alliances enabled them to become established in the territory and to develop its ressources. -
The economy of New France before 1663 / Agriculture
The mother country and the trading companies considered that New France's role was to enrich France. The other groups tried to convince the King to make New France settlement colony, which would lead it to become a prosperous society on its own. Throughout the French regime, agriculture was the activity that occupied most people. Wheat was the main crop. They cultivated territory expanded as the population increased. -
The economy of fur (part 1)
First-half of the 17th century, the Amerindian nations and the french met each spring during the trading fairs. The Hurons-Wendats were the biggest fur suppliers because they obtained their fur supplies from the entire Great Lake region. The Five-Nations Iroquois competed against the business arrangement established between the Huron and the French becasue they also obtained their supplies from the Amerindian nations of Great Lakes and the Outaouais. -
The economy of fur (part 2)
The french founded Ville-Marie in 1642. The Five-Nations Iroquois started running out of fur and fought with the Hurons-Wendats, their mean competitors. In 1649, the destroyed all the villages belonging to the Hurons-Wendats, forcing them to spread out over the territory. After the destruction of Huronia in 1649 the French, who now no longer had middlemen, were obligated to go to the Algonquian territory in person in order to obtain their pelt supplies. -
The economy of fur trade (part 3)
The king of France imposed 25% tax on the furs coming from New France. Since the British and Dutch did not have to pay these taxes, they offered the Amerindians and the coureur de bois more money to for the pelts. -
Expansion of the timber economy (part 1)
In the 18th century, Great Britain obtained its wood supply from Nothern Europe. French Emperor Napoleon I, aimed to conquer the whole Europe and imposed a continental blockade against Great Britain. Great Britain then turned to Canada for its timber supply in order to maintain its naval power. This situation marked the beginning of prosperity for the Canadian timber industry. -
The decline in the fur economy (part 1)
After the conquest, Scottish, English, and American merchants settled in Montreal to practice the fur trade. These groups replaced the French in the fur trade. These Montreal merchants increased their fur supply, especially in the Great Lakes region and in Ohio and the Higher Mississipi Valleys. The Hudson's Bay Company acquired supplies from Rupert's Land. In 1783, with the creation of the US, the entire region south of the Great Lakes was lost to this new country. -
The decline in the fur economy (part 2)
The Northwest Company redirected the fur trade to the Northwest and competed against the Hudsons Bay Company. It also funded expeditions aimed to expand the trade territory. It then reached the Arctic Ocean, the Rocky Mountains, and finally the Pacific Ocean. Rivalry with the Hudsons Bay company was very costly. In 1821 after competing the companies finally merged together. After this date, the fur trade would be based in Hudsons Bay and no longer in Montreal. -
expansion of the timber industry (part 2)
The increase in demand from the mother country attracted British investors who brought the necessary capital to develop this industry to Canada. There was a large increase in the number of commercial ships using the ports of the St. Lawrence. Lower Canada mainly produced lumber. The amount of jobs created, since mostly seasonal, were often handled by farmers who made extra revenue during the winter months. -
The beginning of industrialization
The 19th century was a transition period in the industrialization of Canada. Apprentices learned their trade from a master craftsman in exchange for accommodation and food. They were now salaried workers who executed duties requiring less training. The birth of industrial capitalism also occurred in the 19th century: centralized their capital and competed fiercely against small entrepreneurs. Another sign of the transition to industrialization was the phenomenon of urbanization. -
Economic policies (part 1)
In the beginning of the 19th century, Great Britain opted for the adoption of a protectionist policy towards Canada by imposing customs duty on the wood coming from European countries. This protectionist policy was disliked in Great Britain by the supporters of liberalism who were reluctant to pay higher costs for European products for the colonies benefit; however, they still wanted free trade. -
Economic policies (part 2)
When the Liberals took control of the government in the middle of the 19th century, Great Britain ceased its protectionist policies. Canada had to search for new markets for the distribution of its products. The US was the best candidate as it had a rapidly expanding economy which created a demand for timber and various farming products. In 1854, Great Britain signed the Treaty of reciprocity on behalf of Canada. This was the free trade agreement based on the export and import of raw materials. -
Transportation infrastructure
19th century, there was a great need to build transportation infrastructure. The Great Lakes region, in Upper Canada, encountered difficulties shipping its farming surpluses to Lower Canada because of the rapids between Lake Ontario and Montreal. In 1825, construction of the Erie Canal in the US threatened to divert trading to NY. In order to reduce costs and facilitate trade, the Canadian government began to financially support private initiatives to build transportation infrastructure. -
Economic Development
Until the 19th century, Canada's economy relied on the timber, agriculture and fishing industries. There were few processing industries because products were more likely to be processed in Great Britain or in the US. As of 1850, industrialization expanded rapidly with a second phase beginning in the early 20th century. -
Concentration of capital (part 1)
Some companies would become so powerful in a certain industrial sector that no other company could compete. They exercised a veritable monopoly. The capitalist owners of these companies formed a dominant social class, the industrial bourgeoisie, generally Anglophone. The big businesses, like the Canadian Pacific Railroad and the Laurentide Paper Company, borrowed from the banks to build infrastructures: railway tracks, electric power lines, etc. -
Concentration of capital (part 2)
At the end of the 19th century, the banks merged. Capital was thereafter concentrated in the hands of a small number of banking institutions, mainly run by anglophones. After World War 1, the share of American investments in the Canadian economy grew, while that of Great Britain declined. American capital was used to develop the natural resources in Quebec. This source of capital contributed to the economic and industrial growth of the province but it also created a dependence on the US. -
Concentration of capital (part 3)
In the 1920s, in particular, the United States was also the principal client for Canadian exports. This strong American presence in the Quebec economy lasted until the present. -
The European fisherman (part 1)
After John Cabot discovered Newfoundland, European fisherman, participated in cod fishing close to labrador and Newfoundland Island, and in the Gulf of St. Lawrence. During this period, fish was in great demand in Europe for religious reasons. The Catholic church banned meat consumption for almost 150 days during the year, these were called "abstinence days". -
European fisherman (part 2)
Because it would take too long to cross the atlantic to bring the fish back to Europe, the fisherman had to drive or salt the fish so it wouldn't go bad. To dry the fish they had to go to the coast of Newfoundland. The basque whale hunters also stopped there to get oil that was needed in Europe. Once there the fisherman came into contact with the amerindians and they traded.
