Transcript Nov 6 Staple Economy

Remember – you had the article on
Aboriginal & European economic
exchanges and asked questions…
They all helped shape the Canadian economy.
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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).
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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
Establishing Context
Image curtsey of
http://commons.wikimedia.org/wik
i/File:Atlantic_cod.jpg
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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
Reason for Encampment
Image courtesy of
http://commons.wikimedia.org/wiki/Fil
e:Bidarka_kayak_and_salmon.jpg
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Image courtesy of
http://commons.wikimedia.org/wiki/Fil
e:Tricorne_hat_beaver_fur_c._1780.png
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
The desire for fur...
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Image courtesy of
http://commons.wikimedia.org/wiki/Fil
e:Fur_traders_in_canada_1777.jpg
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
Furs or fish...
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Image courtesy of
http://commons.wikimedia.org/wik
i/File:Trade_with_indians_1820.jpg
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
Supply and demand...
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Image courtesy of
http://timelines.tv/smPox/more/sp
read2.html
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
Native populations became
dependent on European trade
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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?)
Impact of Staple Trade in
Contemporary Canada
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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
Transportation was the main issue
in pre-confederation Canada
Image courtesy of
http://commons.wikimedia.org/wiki/Fil
e:Timber_on_the_Ottawa_River.jpg
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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
Requirement of living
and working people...
Image courtesy of
http://commons.wikimedia.org/wiki/File:Insp
ecting_the_work_of_the_Canadian_Forestry_De
tachment.jpg
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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?
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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
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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.
Modern free trade?
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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
Image courtesy
http://commons.wikimedia.org/wiki/File:Edward_Walsh__Queenstown,_Upper_Canada_on_the_Niagara_(a.k.a._Queen
ston,_Ontario).jpg
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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
How the treaty worked
Image courtesy
http://commons.wikimedia.org/wiki/File:Gran
ville_Street_at_Duke_Street,_Halifax,_1854.jpg
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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
It sort of worked...
Image courtesy
http://youngatvanier.blogspot.com
/2009_03_22_archive.html
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Group 1: (Fishery)
CBC Digital Archives - Fished Out: The Rise and Fall of the
Cod 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/en
cyclopedia/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
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Re-organize into new sharing groups to
complete the organizer “Discussion Tracker”.
Do you think this could ever change?