Chapter 4 History Flashcards
1
Q
- The Stock Market Crash
A
- During 1920’s industry expanded from consumption w/ credit (getting before paying) in Canada.
- As economy slowed down, overproduction ensued
- Caused manufactures to stockpile & lower prices before producing fewer goods, causing layoffs
- People couldn’t pay bills/buy goods, slowing down economy even more.
2
Q
- Canada’s Reliance on Exports and Wheat
A
- Canadian economy relied on exports, particularly wheat from Praires and newsprint from BC, ON, QU
- Made Canadian economy vulnerable to world market changes. 80% farm, mine + forest production exported.
- 1920’s → wheat farmers in CA + US produced record crops and sold for record prices
- More countries produced wheat, causing wheat overproduction and prices fell
- Decreased income, causing inability to pay mortgages/loans.
3
Q
- The Great Depression Globally
A
- Canadian economy hit from US being largest investor + trading partner.
- US imposed tariffs, causing countries to employ protectionism in response.
- Lead to slowdown in world trade, causing Canadian exports to decrease substantially.
4
Q
- Investors in the early 1920’s
A
- Business boomed in early 20’s, so companies raised money by issuing shares (stocks) that investors brought, hoping values of shares would rise
- Canadian companies issued $700M in stock between 1922 - 1926.
- Many investors bought “on margin” (buying shares w/ 10% down payment, assuming value of shares would be increased to make profit, known as “speculation”).
5
Q
- Investments before the Great Depression
A
- High demand had driven price of stocks beyond real value and loans for stocks were easy to obtain.
- Investors sold stocks, leading others to do so, so stock prices fell, leading people to sell even further.
- Investors who borrowed to buy shares bankrupted in one day, and crash affected millions of Canadians despite few investing in stock.
6
Q
- Prarie Farmers and Natural Factors
A
- In 1920’s, Prairie farmers planted wheat for global demand and rising prices, but one-crop farming took toll on soil. Farmers replaced native grasses w/ wheat, using up soil nutrients.
- Just after economic crash, Prairies were hit by disastrous 8 year drought, causing inability to grow crops.
7
Q
- Natural Factors II
A
- Millions of hectares of topsoil blew away, leading to constant dust storms by mid-spring of 1931
- Hit semi-arid area in southern Alberta and Saskatchewan “Palliser’s Triangle” especially hard.
- Plague of grasshoppers descended, wiping out remaining crops farmers could’ve grown, forcing families to abandon their land.
8
Q
- Economic Difficulties
A
- Only 300,000 Canadians earned enough income to pay income tax in 1939 in pop. of 11 million
- Married people earning +$2,000 and singles earning +$1,000 paid tax. Evictions ensued from depression.
- Thousands relied on “pogey” (government payments), but low ($60 in Calg. and $19 in Hali. for family of 5) to encourage search for work.
9
Q
- Conditions for Receiving Aid
A
- People waited for hours and publicly declare financial failure, and swore they didn’t own anything of value and prove eviction from home, receiving vouchers for food/essentials.
- Charity provided used clothing + meals, and soup kitchens helped hungry.
10
Q
- Male Unemployment
A
- Winter of 1933, +¼ quarter of Canadian workforce unemployed, filled w/ young, jobless men (transients) looking for work by “hopping” freight trains.
- After “riding the rails”, they’d stay at shantytowns “jungles” springing in/around cities.
11
Q
- Immigrant Conditions
A
- Immigrants viewed w/ hostility in Canada by competing for jobs. Immigrants lost jobs, leading 28,000 of them to be deported by 1935.
- In Vancouver, Chinese didn’t qualify for relief. Jews faced antisemitism by being banned from professions/jobs, and clubs/organizations banned jews.
12
Q
- Aboriginal Conditions
A
- Aboriginals only received $5 a month compared to $19-$60 by non-Aboriginals
- Expected to live off land despite poor state. Govt took reserve land, further squandering resources.
- Government took land from Squamish Capilano Indian Reserve to build Lions Gate Bridge
- King George VI and Queen Elizabeth rode in 1939, despite request by Squamish to stop.
13
Q
- Women
A
- Few jobs for women other than domestic work paying few dollars per week, some believing working women contributed to Depression.
- Unemployed single women didn’t qualify for relief and needed charity.
- In Vancouver, women’s groups campaigned for more support, leading city to provide milk for babies, clothing allowances, and medical care for pregnant women.
14
Q
- Conditions for the Wealthy
A
Wealthy individuals noticed little changes in lifestyle. As deflation occurred, conditions for those w/ jobs improved.
15
Q
- PM Mackenzie King’s Actions
A
- PM Mackenzie King unprepared for Depression, believing it was temporary
- Told Canadians financial aid was of municipal and provincial govts, despite bankruptcies of several municipalities.
- King said he wouldn’t give “a five-cent piece” to a Conservative provincial govt.
- Led King to lose to PM Richard Bedford Bennett and Conservative majority govt.
16
Q
- Bennett’s Actions
A
- Unemployment Relief Act gave provinces $20 million for work-creation but didn’t improve economy.
- Raised tariffs by average of +50% to protect Canadian industries to “use tariffs to blast a way”.
- Did harm as nations set trade barriers against Canada.
- Prairie Farm Rehabilitation Act introduced in 1935 to help farmers build irrigation and reservoirs
- Drought and poverty forced people to move at time it was passed.
17
Q
- Red Scare
A
- Growing no. of homeless men drifting across country frightened middle-class.
- “Red Scare” still held Canada and PM Bennett feared men would be influenced by Communist Party.
- 1931 - Bennett outlaws communist agitation. Tim Buck violated law and sentenced to two years in prison.
18
Q
- On-to-Ottawa Trek
A
- In 1935, +1000 men left camps in BC to protest conditions and pay, gathering in Vancouver to hold rallies and collect money for food.
- Under leadership of Relief Camp Workers’ Union, men took complaints to PM in “On-to-Ottawa Trek”, crowding into and on top of freight trains.
- Supporters donated food + supplies and/or joining trek. +2000 trekkers joined protest by time they reached Regina, Saskatchewan.
19
Q
- Regina Riot
A
- Bennett called in RCMP to stop trekkers in Regina, to which protesters were confined in local stadium.
- Union leaders who were allowed to meet Bennett were attacked as communists and troublemakers.
- RCMP ordered to clear trekkers, to which they battled RCMP and local police in “Regina Riot”, in which 130 men arrested, 1 officer killed and many injured.
20
Q
- Protests
A
- Federal govt closed relief camps in 1936 and provincial govt reduced relief
- Men conducted “sit-ins” at buildings until govt responded to complaints.
- In April 1936, 1,600 protestors occupied Vancouver Art Gallery, main post office and Georgia Hotel.
- Most protesters left, but at post office, men refused to leave, eventually evicted with tear gas.
21
Q
- Franklin Roosevelt’s New Deal
A
- Franklin Roosevelt introduced New Deal that created public work programs when he became US president in 1933.
- Introduced Social Security Act that provided old age pensions, unemployment insurance and financial assistance for mothers and children.
- US federal govt spent billions of dollars to improve living conditions. Economy didn’t improve but helped millions survive.
22
Q
- Bennett’s New Deal
A
- Bennett surprised radio listeners before 1935 election introducing own version of New Deal
- Included progressive taxation, workers’ insurance, regulated work hours, minimum wages, regulated working conditions, revised pensions, agricultural support and creation of Canadian Wheat Board for wheat prices.
23
Q
- Reaction to the New Deal
A
- Voters saw Bennett’s policy as attempt to win votes and questioned value of workers’ insurance programs for unemployment.
- For most it was too little too late.
24
Q
- Work Camps
A
- Bennett created work camps for single men for relief from Depression, for work on roads, clearing land and digging drainage ditches for $0.20 a day with room and board.
- Work was often deep in woods, isolating the men. Food and bunks were terrible, yet +170,000 men worked.
25
26. Co-operative Commonwealth Federation
- Co-operative Commonwealth Federation (CCF) founded in 1932 in prairie provinces
- Canada’s first socialist party that preceded NDP, believing capitalism breeds inequality and greed caused Depression.
- CCF supported command economy in which all Canadians equally benefitted.
- CCF appealed to variety of voters dissatisfied with govt response to depression.
26
27. CCF's Leader and the Regina Manifesto
- At CCF convention in Regina in 1933, J.S. Woodsworth elected party leader.
- Party platform “Regina Manifesto” supported public ownership of key industries.
- Social programs to help elderly, unemployed, homeless and sick, as well as money on employment creation.
- CCF formed opposition in Saskatchewan and BC by 1939.
27
28. Social Credit Party
- Social Credit Party from Western Canada led by charismatic William “Bible Bill” Aberhart.
- Social credit believed banks hoarded money, preventing customers from buying goods.
- Aberhart believed govt should release money into economy that people could spend.
- Idea appealed to Albertans as Depression devastated economy and they resented banks in Central Canada.
28
29. Union Nationale
- Maurice Duplessis joined forces with some Liberals to form Union nationale for Quebec nationalism, relying on Roman Catholic Church and rural voters.
- Duplessis blamed Quebec’s problems on English Minority in Quebec that controlled province’s economy.
29
30. Union Nationale's Platform
- Political platform based on working conditions, social insurance, publicly owned power companies and farm credits.
- Duplessis did little improvement of economic and social conditions in Quebec during his first term, but remained premier until 1959 except from 1939 to 1944.
30
31. New Governments
- As newer parties gained power in Western Canada and Quebec, voters in other provinces also elected new governments.
- In Ontario, provincial Liberals came in 1934 for first time in 29 years
- Leader, Mitchell Hepburn, was populist farmer who railed against big business.
- Hepburn tried to improve Ontario’s economy but didn't help unemployed and against unions.
31
32. Germany Gets Impacted
- Germany grew increasingly angry with Treaty of Versailles and “war guilt” clause
- Required $32 billion in reparations, which strained German economy ruined by war.
32
33. Japan Gets Impacted
- Empire of Japan (only independent Asian nation w/ colonial empire) held strong manufacturing industry after WW1
- Tariffs affected Japan’s economy that relied on raw materials from other countries.
33
34. Russia
- After Bolshevik Revolution in 1917, Russia experienced upheavals that led to civil war.
- Russia joined communist countries to form Union of Soviet Socialist Republics (USSR).
34
3A. The Great Depression in the World
- US lent money during + after WW1, affecting countries’ ability to pay loans.
- Germany couldn’t pay reparations which Britain and France relied on.
- Newf. and Lab. struggled from war debt and from lack of veteran/general employment.
35
35. Consequences of the USSR
- USSR’s command economy insulated economic slowdown, appearing to many as though communism worked while capitalism failed
- Joseph Stalin’s dictatorship robbed the Soviet people’s political and social freedom
- Economic and agricultural policies led to deaths of millions.
36
33A. Japan's Recovery
- Japan adopted Keynesian economics and increased govt spending to stimulate economy
- Placed aggressive plans to expand territory by invading Manchuria, China’s northern province, in 1931.
37
32A. German Hyperinflation
- Govt printed money in 1920’s, which lowered value of German currency.
- Britain, France and US agreed to give better terms for Germany’s reparation payments.
- Germany made modest recovery, but great depression then weakened German economy more than others.
