Guiding Questions – Dec 10th

  1. Why did MacDonald develop the National Policy?

Because he needed something to show and convince Canada of his intentions and ideas. The people voted for him because they agreed with his mission and so his party returned back to running office.

  1. List and explaineach of the three parts of the National Policy.  In each case, state why MacDonald thought it was important for the future of Canada.
  • Protective Tariffs – These Tariffs raised the former Tariffs from 15% to 17.5%-35%. This helped and benefited the Canadian economy because this stopped many people from buying goods from America and to start buying goods from Canada.
  • Increased Immigration – This is another thing that helped and benefited Canada’s economy because the more people, the more framers, which equals more crops and profit. If the immigrants payed an extra $10 fee they would get land.
  • The Canadian Pacific Railroad – This helps transport people and goods around the country and troops to help with the defence of Canada.
  1. Who did MacDonald get to invest in the CPR and what were their backgrounds?

MacDonald got George Stephen who was the president of the Bank of Montreal, Donald Smith, Chief Commissioner of the HBC and James J. Hill, a coal trader, to invest in the CPR. Altogether they made $17 million.

  1. What did MacDonald promise the Syndicate?

MacDonald had made the promise of giving $25 million in cash to the Syndicate plus a land grant of 25 million acres and a monopoly of Lake Superior for 20 years.

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

The Syndicate had to finish the CPR within 10 years

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

They had immediately changed the route of the railway because the route was going through Saskatoon and Edmonton which had lots of fertile land. They wanted absolute control the CPR project so they moved it away from land speculators.

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

William Van Horne was hired as the new manager because they needed someone with lots of energy and a new manager

  1. Describe the achievements of Van Horne’s management.

William Van Horne made an almost immediate impact and sped up the construction of the CPR. He was able to have 800 km of the rail laid in a year and another 800 km the next year too.

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

In the end of 1883 the company was running out of money and the people were about to build the railways through BC which would cost lots of money because it was rocky. Stephen and Smith both donated their fortunes for the construction which was still not enough. In 1884 the government passed a bill which provided the company with another $22.5 million for the CPR. Even with the $22.5 million, in 1884 they ran out of money again

  1. Where did the CPR enter into BC?

The CPR entered BC by the Kicking Horse Pass

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

It required fewer days because to get to the coast you are able to travel further toward the South and you could also avoid the large mountains in the interior.


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