Unit 2 – 1920s Optimism • In 1919, WW1 ended. Canada has signed the Treaty of Versailles as a separate country Soldiers began to return home. • Canada was also a stronger nation with more industry. • Canada also became, against USA wishes, a full member of the League of Nations. As a member, Canada was (1) recognized as a nation by other countries and (2) gained a larger role in world affairs. Unit 2 – 1920s Optimism The League of Nations • The League of Nations was formed at the end of WW1. Its role was to prevent war. It would do so by a process of “collective security.” • Collective security means all nations defend each other. If one country attacks a second country, all the other countries will defend the second country. The power of many would deter war. Unit 2 – 1920s Optimism Canada was full of optimism. Canada was also moving away from British rule. • In 1922, Canada does not support Great Britain in a conflict with Turkey. Canada controls is own foreign policy • In 1923, Canada and USA negotiate to a new coastal fishing treaty. It is called the Halibut Treaty. Great Britain does not represent Canada. • In 1924, the Red Ensign replaces the British Union Jack as Canada’s flag. Unit 2 – 1920s Optimism Canadians invented or discovered many things. • In 1921, Frederick Banting and Charles Best discovered insulin. It was used to treat diabetes. They were awarded a Nobel Prize for the achievement. • The Sir Adam Beck No. 1 Generating Station…at the time the world's largest… was opened in 1921 at Niagara Falls to provide electricity. • In 1922, Mechanic Joseph-Armand Bombardier built the first snowmobile • In 1925, Arthur Sicard invented the first snowblower. • In 1929, the first quick-frozen fish fillets was introduced by Nova Scotian Archie Huntsman. Unit 2 – 1920s Optimism The role of women in Canada was also changing. • In 1920, Esther Marjorie Hill graduated from the University of Toronto to become Canada’s first woman architect. • In 1921, Agnes Campbell Macphail became the first woman elected as a Member of Parliament (MP) to Canada’s House of Commons. Macphail campaigned for peace, civil liberties, social reform and the cooperative movement. • In the 1928 Persons Case, the Supreme Court of Canada unanimously decided women were not "persons" who could hold public office as Canadian Senators. In 1929 the British Privy Council reversed the decision, ruled women were legally "persons" and could become Senators. Unit 2 – 1920s Optimism Canada was alive… • Jobs in factories (…for men…) were plentiful. • Cities were growing in size. • Entertainment included sports such as hockey and football. • Many people owned cars and many other consumer items such as radios, natural gas stoves, vaccum cleaners and washing machines. • Women were socially freer. Pop culture was flapper. The dance was the Charleston, and the music was Big Band Jazz Unit 2 – 1920s Optimism Could Canada keep growing? Trade with the USA • Canada’s biggest trading partner became the USA. It was close, and many Americans wanted to buy Canadian products. • Americans could build many things cheaper than Canada. To protect Canadian companies, Canada introduced TARIFFS. For example, a 35% tariff on a Americanbuilt car would mean Canadians paid an additional $35. in tax for $100. spent on the American-built car. Canadians were “forced” to buy Canadian products • Americans started to invest their money in Canadian companies OR build branch plants in Canada to avoid tariffs. Unit 2 – 1920s Optimism Could Canada keep growing? • As noted, people owned many big things such as cars. Most of these things were bought ON CREDIT. • The STOCK MARKET was booming, and everyone wanted to invest and buy shares in companies to make “easy money.” Many small investors bought stocks ON MARGIN. This means buying stocks with borrowed money. When the stock rises in value, you pay back the loan and still make a profit. • Most of Canada’s industrial growth was in HIGH RISK AND HIGH COST NATURAL RESOURCE DEVELOPMENT (e.g., pulp and paper, mining). • As noted, TARIFFS reduced Canada’s international trade while artificially supporting small Canadian companies. • By 1928, 60% of Canada’s trade was with the USA. In other words, Canada was VERY DEPENDENT on the USA. • Canada’s economy was booming, and we were PRODUCING MORE PRODUCTS THAN WE CONSUMED. Unit 2 – 1920s Optimism THE GREAT CRASH • On 29 December 1929, the stock market crashed. This day is called BLACK TUESDAY. • Stock prices began to fall…and fall…and fall. Between October 29 and November 13 (when stock prices hit their lowest point), over $5 billion had disappeared from Canada’s economy. About $30 billion was lost in the USA in the same period. • By 1935, stocks had lost over 50% of their 1929 value. • Businesses closed, and Canada’s unemployment reached almost 27% (…higher in some provinces). • Many families lost all their life savings.