Skip to content

How Economic issues led to Confederation

The growth of railways in early history helped the economy by benefiting both businesses and employments. The railways extended into new territories and pushed agriculture and timber frontiers west and north. The railways help open up markets and tied the regions together. These railways caused a lot of  fuel, iron and steel, locomotives and rolling stock. The wood burning locomotives required a lot of fuel and stations used to refuel, were required along the way. This made many colonies start working together. The Corn Laws were laws that protected agriculture by limiting the import of grain from other countries. The lower Tariffs helped Canadian producers by increasing their profits, but limiting the amount of imported of grain from other countries. Britain was able to buy wheat, flour, and other products at the lowest price from any country. The end of the Corn laws drove colonies onto an economic depression. Canadians exported a lot of timber and agricultural products but manufactured very little. Canadians want the colonies to unite as it would be very beneficial including larger markets, more industry and improved transportation. For this to be achieved Self-government was needed. The governors such as Charles Bagot did not support the idea and weren’t following a responsible government. It would take direction from Britain for any changes to be made. The Reciprocity Treaty of 1854 was a legal agreement where Canada and the States exchanged goods with a reduction of customs duties. The Canadians were desperate and attempted convincing Washington to sign it but je declined because the Americans didn’t economic advantages of such an agreement. The states that supported slavery feared that Canada and the states working together would increase the states that wanted to abolish slavery. The Fisheries Issue resulted in the signing of the treaty. But in 1866 the treaty was broken by Americans. The necessity of British needing to find a new market to sell their products led to the Confederation.

Published inSocials 10

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Skip to toolbar