Confederation 1867

1. Confederation 1867 Free trade declared by Britain, meaning that Canadas no longer have favored status Britain wants Canadian colonies to take on more expense of defending them US civil war generates fears that Americans could make move for colonies Maritimes looking for link to rail systems of interior French-English deadlock could be broken with new political arrangement Smaller provinces have strong local patriotic groups and resist confederation

2. Staples theory – Harold Innis • Development of Canada driven by production of staples (fish, fur, lumber, minerals) for European and US markets • Northwest Company (Hudsons Bay Company) was “forerunner of confederation” and established a centralized organization that covered the northern half of North America • Fact that Canadians relied on Indians to prosecute fur trade meant that relations with natives were always better than in US • In 19th century, industrialization in UK and then US brought prosperity to Canada even after free trade ended in 1840s • Lumber industry drove construction of railroads and water transport, which in turn created capital requirements necessitating political union (canals lead to Act of Union, railroads to Confederation) • People behind Grand Trunk gain control of HBC in 1863, followed by sale of Rupert’s Land to Canada in 1869 and construction of CPR; fur trade replaced by railroads • Wheat and opening of West then promoted to recover CPR costs • Even politics affected by fur trade, reflecting mix of authority and individualism, crown corporations and private ownership

3. Political background - Canada • Merchants in Montreal felt betrayed by end of free trade, while French rouge radicals thought UK getting rid of its colonies – signed Annexation Manifesto in 1849; strong reaction causes Tories to abandon annexation cause; Reciprocity Treaty with US in 1854 also compensates merchants • In West, after goal of Union achieved, reformers less sympathetic to French; Baldwin challenged within Reform alliance by George Brown, editor of Globe, who advocates separation of Church and State; West population also now bigger than East, leading to calls for ‘rep by pop’ • Reformers formed new alliance with Montreal tories; represented moderate conservatives, led by John A. Macdonald, who believed fate of Canadas depended on economic cooperation • They are also supported by Lower Canada bleus, who support Catholic Church in every area of life; led by George Etienne Cartier (lawyer for Grand Trunk), who feared French would be left behind by progressive society, and supported cultural cooperation; bleus support for Catholic schools gets them in trouble with West • Reformers and moderate conservatives of Canada West join with bleus to form Conservative Party in 1854; CP dominates Canadian politics for next 40 years • Carry out reforms – in West, church lands given to municipalities, in East, seigneurial system ended • In 1858, idea of Confederation first proposed – a federal government to look after national issues (railroads) while provincial governments will hand local matters (education, language)

4. Political background - Maritimes • Maritime colonies – Prince Edward Island, New Brunswick, Nova Scotia – had once all been part of Nova Scotia, and had responsible government in 1840s even before Canada • British proposed Maritime Union of colonies to be discussed at Charlottetown Conference in 1864; idea had sympathy because of history of Nova Scotia as single colony; British wanted to cut costs and also provide stronger unity against US as Civil War ends • Charlottetown was crashed by Canada representatives, who convinced Maritimes that wider union was in their interest for economic reasons (railways); second meeting scheduled for Quebec City a month later • Main investors in railways were colonial governments, so linking lines seen as only way to avoid financial disaster; coal reserves in Maritimes also need new markets as Reciprocity Treaty soon to end; until then, political union seen only as offshoot of economic talks, and much convincing to be done • Main issue at Quebec is relative strength of federal and provincial powers; Macdonald points to US as example of dangers of weak central government, while smaller colonies want greater independence to retain identity; Cartier swings French to support stronger federal deal despite personal opposition • Compromise reached dividing powers, and with two houses, one elected, one appointed; 72 Resolutions then taken to colony governments to be approved, with only PEI rejecting it • London Conference 1866 leads to British North America Act 1867

5. Canada at Birth • Population 3.5 million, John A. Macdonald PM • Force of 15,000 British regulars withdrawn 1871, no Canadian defense unit to replace it, despite Fenian threat • Tensions between US and Britain from Civil War, although this was papered over with Treaty of Washington in 1871 • Rebellion of Louis Riel in 1870 leads to formation of Manitoba and stresses need to develop railway, as US almost refuses to let Canadians use Sault Ste Marie canal • US purchase of Alaska from Russia for $7 million in 1867 presses need to get BC into Confederation; this is achieved in 1871 with promise of a railway • Intercolonial Railway finished in 1876, linking Maritimes with interior, contract signed with CPR in 1880 for transcontinental link, completed in 1885 • Reciprocity agreement with US ceases in 1866; next several decades see several attempts to restore it, especially depression years from 1873 to 1896