April 19

The Economic Situation in the 1860s

The construction of the railway encouraged British North America Colonies to unite.The railways helped transport resources, from one colony to another. Because Lower Canada was experiencing a depression they needed the Americans to sign the Reciprocity Treaty; which is a treaty allowing the ownership and transport of goods from on colony to another, which included the United States. The Corn Law kept prices of grain high, but when the law was “removed”, it led to an economic failure in Canada. This forced Canada rebuild their economy by uniting the colonies.