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Review In-Class Formative
Remember – you had the article on Aboriginal & European economic exchanges and asked questions…
They all helped shape the Canadian economy.
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 today’s economy to that of the colonial era
analyse the effects of Britain’s adoption of free trade in the 1840s on BNA (e.g., Reciprocity, Treaty of 1854).
Establishing ContextImage curtsey of http://commons.wikimedia.org/wiki/File:Atlantic_cod.jpg
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
Reason for EncampmentImage courtesy of http://commons.wikimedia.org/wiki/File:Bidarka_kayak_and_salmon.jpg
Fishermen from Europe would often stay in fishing encampments for entire seasons to leave before the cold weather as early as the 1300’s
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
Image courtesy of http://commons.wikimedia.org/wiki/File:Tricorne_hat_beaver_fur_c._1780.png
The desire for fur...
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/wiki/File:Fur_traders_in_canada_1777.jpg
Furs or fish...
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/wiki/File:Trade_with_indians_1820.jpg
Supply and demand...
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://timelines.tv/smPox/more/spread2.html
Native populations became dependent on European trade
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
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?)
Ottawa extends review of Chinese bid for Nexen - Business - CBC NewsImpact of Staple Trade in
Contemporary Canada
Transportation was the main issue in pre-confederation Canada
Image courtesy of http://commons.wikimedia.org/wiki/File:Timber_on_the_Ottawa_River.jpg
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
Requirement of living and working people...
Image courtesy of http://commons.wikimedia.org/wiki/File:Inspecting_the_work_of_the_Canadian_Forestry_Detachment.jpg
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
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?
For Don’t get ripped off – better
deals Develop a strong trading
relationship with the specific nation
We could sell more goods in that nation
If we don’t 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.
Harper's trade-boosting trip to India starts at Taj Mahal - Business - CBC NewsModern free trade?
Image courtesy http://commons.wikimedia.org/wiki/File:Edward_Walsh_-_Queenstown,_Upper_Canada_on_the_Niagara_(a.k.a._Queenston,_Ontario).jpg
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
How the treaty workedImage courtesy http://commons.wikimedia.org/wiki/File:Granville_Street_at_Duke_Street,_Halifax,_1854.jpg
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
It sort of worked...Image courtesy http://youngatvanier.blogspot.com/2009_03_22_archive.html
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
Investigating the Staple Economy:Use the source organizer to take jot notes.
Group 1: (Fishery) CBC Digital Archives - Fished Out: The Rise and Fall of the Co
d Fishery - 1992: Newfoundlanders protest cod
Group 2: (Fur Trade) http://www.thecanadianencyclopedia.com/articles/fur-trade
Group 3: (Staple Thesis and colonial economy) http://en.wikipedia.org/wiki/Staples_thesis http://faculty.marianopolis.edu/c.belanger/quebechistory/encyclopedia/econhistcan.htm
Group 4: (Staple Thesis and contemporary Canadian Economy) http://en.wikipedia.org/wiki/Staples_thesis http://www.nrcan.gc.ca/statistics-facts/home/887
Group 5: (Reciprocity Treaty) http://www.histori.ca/peace/page.do?pageID=345#top
Sharing Groups Re-organize into new sharing groups to
complete the organizer “Discussion Tracker”.
Do you think this could ever change?