May 25

Guiding Questions about the CPR

-Why did MacDonald develop the National Policy?

To have a platform to convince Canadians on, about the need for a transcontinental railway.

-List and explain each of the three parts of the National Policy. In each case, state why MacDonald thought it was important for the future of Canada.

A system of protective tariffs; this is important so businesses can make a profit off of sales easier.

Immigration to the West; he discouraged the development of manufacturing in the West so that farmer would remain in market for the industrial east.

The Canadian Pacific Railway; the CPR would help ship goods across Canada and in and to Asia.

-Who did MacDonald get to invest in the CPR and what were their backgrounds?

George Stephen the President of the Bank of Montreal, Donald Smith of the Hudson’s Bay Company, and James J. Hill.

-What did MacDonald promise the Syndicate?

$25 million in cash, a land grant of 25 million acres, and a monopoly west of Lake Superior for 20 years.

-In order to get the benefits from the Government, what did the Syndicate have to do?

Complete the railway within 10 years.

-What did the Syndicate do immediately upon being given the railway contract and why?

They changed the planned route of the railway, because the northern Prairies was seen as good farm land.

-Why was William Van Horne hired as the new manager of the CPR in 1881?

Because the building of the railway was not progressing fast enough.

-Describe the achievements of Van Horne’s management.

He sped up the building of the railway and he built up to 1600km in only 2 years.

-What problem did the railway face in 1883 and what was the solution?

The government payed by section completion, so they weren’t making any money, soon they were going to run out of funds.

-Where did the CPR enter into BC?

-In 1867, why do you think the coast of BC required fewer days to get to from Ottawa than the interior of BC?