CANADA IN THE 1930sCANADA IN THE 1930s

The Great Depression: just do SOMETHING!

J. MARSHALL, 2008

OutlineOutline1) The reasons for the Crash

2) The beginning was the worst

3) Mackenzie King’s vs. R.B. Bennett’s response

4) Herbert Hoover’s vs. F.D. Roosevelt’s response

5) Birth of new political parties in Canada

6) The people take action

1) Reasons for the Crash and other factors that led to depression1) Reasons for the Crash and other factors that led to depression

• The stock market was a relatively new thing - stocks vs. gold (traders and buyers were inexperienced)

• Buying on margin - a license to print money• Panicked selling over almost a week caused

the Wall St. market to collapse on Black Tuesday, Oct 29, 1929

The crash did not cause the Depression - it did make

the suffering worse.

Other economic problemsOther economic problems

• The price of wheat had been falling since 1927: over-production didn’t drop so prices did - farmers’ mortgages suffered: no cash means no new tractors

• Manufacturers were over-producing consumer goods = few consumers = layoffs = less spending money = fewer consumers

• USA protectionist tariffs = trade barriers for all• Germany’s inability to pay reparations affected

the Allies’ ability to repay loans to USA

2) The Beginning was Worst2) The Beginning was Worst• Canada’s economy was very closely connected to

the USA - trading/branch plants/investors:– Wheat (40% of world supply)– Newsprint (65% of world supply)

• As the economy failed people lost their jobs and the ability to pay rent: vagrancy meant jail time

• To collect POGEY or the “DOLE” (Relief vouchers) one had to publicly declare her poverty: why would so may do without relief?

• Private charity/soup kitchens

Women and their children suffered as men looked for work, often “riding the rods”

Laissez Faire - let it beLaissez Faire - let it be

Unemployment Rate in Canada: 1928 - 1939

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

1928

1929

1930

1931

1932

1933

1934

1935

1936

1937

1938

1939

Unemployed

Unemployment Rate in Canada: 1928 - 1939

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

1928

1929

1930

1931

1932

1933

1934

1935

1936

1937

1938

1939

Unemployed

Data source: Counterpoints, p. 80

Working with data: see page 80 in Counterpoints

Percent of National Income DSpent on Relief: 1930 - 1937

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

1930

1931

1932

1933

1934

1935

1936

1937

Percent ofNational Income

Percent of National Income DSpent on Relief: 1930 - 1937

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

1930

1931

1932

1933

1934

1935

1936

1937

Percent ofNational Income

Percentage of Canadian National Income Spent on Relief: 1930 - 1937

Data source: Counterpoints, p. 80

Canadian Wheat Price Per Bushel

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

1925

1926

1927

1928

1929

1930

1931

1932

1933

1934

1935

1936

1937

Price Per Bushel

Canadian Wheat Price Per Bushel

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

1925

1926

1927

1928

1929

1930

1931

1932

1933

1934

1935

1936

1937

Price Per Bushel

Dust Bowl: Drought 1928 - 1936

Dust Bowl: Drought 1928 - 1936

3) King vs. Bennett3) King vs. Bennett

• King thought the Depression would be short-lived. He did little.

• Bennett promised action, but as a millionaire, he didn’t understand the plight of the people.

• Bennett did answer letters and give charity but he looked down on government “handouts.” As a businessman he dismissed Keynes’ economics as illogical.

Mackenzie King’s Mackenzie King’s Liberals fall very shortLiberals fall very short

• Federalism: why didn’t King give money to the provinces? See the quotation about Tory governments on pg. 81.

“A nation like an individual, to find itself must lose itself…to those of this government, I would not give them a five-cent piece.” 1930

KING LOST THE ELECTION:

Bennett’s Torie

s won a

MAJORITY

A nice house warming gift from

Mackenzie-King to the incoming PM

Dark Depression HumourDark Depression Humour1) Bennett barnyard

2) Bennett blanket

3) Bennett buggy

4) Bennett coffee

5) eggs Bennett

+How could Bennett’s wealth be a political handicap in a depression?

abandoned prairie farm

newspaper

engineless car

roasted wheat

broiled chestnuts

4) Herbert Hoover vs. Roosevelt4) Herbert Hoover vs. Roosevelt

• Hoovervilles

• Hoover’s strategy was to lower interest rates -

the problem was too big!• FDR’s 100 days in 1933

– Close banks for three days– New Deal = “alphabet agencies”– Every letter to the President will be answered– End Prohibition– create CONFIDENCE and give LEADERSHIP

John Maynard Keynes (“Canes”)

FDR listened to the economist

Keynes:

“SPEND YOUR WAY

OUT OF DEPRESSION.

”

FDR listened to the economist

Keynes:

“SPEND YOUR WAY

OUT OF DEPRESSION.

”

Tennessee Valley Authority

Public Works

Admin Works Progress Admin

Agricultural

Adjustment

Admin

National Recovery Admin

5) New Political Parties5) New Political Parties

• In Canada it was we saw the birth of the CCF, Social Credit, and Union Nationale

• In Germany and Spain, fascists came to power and joined Italy in the creation of a new world order

The Co-operative Commonwealth Federation

• Some Progressives

• Regina Manifesto

July, 1933

• J.S. Woodsworth

• Tommy Douglas

J.S. Woodsworth• Minister in Gibson’s Landing, 1917• Pacifist/anti-conscription• 1921 MP: Indep Labour Party of Cda• Anti-violence (thus not Comm Party)• Sat with Progressives, 1925 (helped

enact Old Age Pension, 1927• Lost favour when he wouldn’t support

Cda going to war in 1939

Tommy DouglasTommy Douglas• Premier of Saskatchewan, 1944-

1961• Scottish-born Baptist minister• 1st socialistic gov’t in North America• INTRODUCED UNIVERSAL

MEDICARE• Fable of Mouseland• 1st leader of NDP, 1961-71 (when

CCF joined with Cdn Labour Congress

• In 2004, voted “Greatest Canadian” in national CBC poll

Regina ManifestoRegina Manifesto• In small groups we shall

now examine the preamble of Manifesto and its parts.

• First: underline the main points argued in the preamble.

Which two parties were the “old” parties?

“What! The kids and Missus and I have to get out…after no crops and no prices, where shall we go?”

Major James Coldwell MP

Leader of CCF from 1942 - 1960

Coldwell and farmer labor assures: we hold title; thank God, my fear of losing home gone

Grab all

CCF Social Credit Union Nationale

Led by JS Woodsworth; supported farmers, labourers,socialists, intellectuals,discontent-ed Liberals; its politics included public ownership of KEY industries, social programs for the needy, government spending on public works

Led by “Bible Bill” Aberhart; it appealed to many voters in Alberta, where he was elected in 1935; its policies included citizens receiving a $25 monthly dividend to buy goods. The additional money was intended to simulate the economy.

Led by Maurice Duplessis; supported by people in rural areas and nationalists; its policies included the belief that the English minority controlled Quebec’s economy

See cartoon activity sheet 4-1

Fascism

Italy, 1922 Germany, 1933 Spain, 1939

Mussolini Hitler FrancoBlame 1911 democracy for problemsBlack Shirts March on Rome (threat of socialists)1929 Pact with PopeCrush unions - Corporate StateAbyssinia, 1936Albania, 1938

Brown ShirtsArian supremacyRebuild military = jobsChallenge VersaillesTest tactics in Spanish Civil WarAnschlussLebensraum/self-determination

Falange vs elected RepublicInternational BrigadesProxy war (blitzkrieg) for Condor Legion and Italian Air Force - GuernicaDid not fight in WW2

secret police, one party state, dictatorship, Militarism

Can you put in order Hitler’s steps to war?

Life in Hitler’s Nazi GermanyLife in Hitler’s Nazi Germany

Positive Aspects Negative AspectsMega-projects/rearmament =

employment

Direction =

Hope in desperate times

Versailles abandoned =

return of national pride/saved

reparation payments

Annexations =

wealth and power

Self-determination for Germans =

corrects some misplaced

persons from Versailles

Versailles abandoned =

militarization/isolation

Nuremburg Decrees/racism =

loss of human/citizen rights

Loss of democracy =

one party state

Brown Shirts/mob violence =

loss of security

Book burnings =

loss of freedom

Unions outlawed =

loss of freedom

Canada’s Failure of the

St.LouisCanada’s Failure of the

St.Louis

Anti-Semitic Anti-Semitic advisors (from advisors (from the South) to the South) to FDR persuaded FDR persuaded him to block a him to block a USA landing - USA landing - Mackenzie King Mackenzie King who was visiting who was visiting Washington Washington with the Royal with the Royal Family also Family also gave in.gave in.

Canada accepted fewer than 5000 Jewish refugees during the Second World War. Brazil accepted 27,000!

6) The People Take Action6) The People Take Action““On to Ottawa Trek”On to Ottawa Trek”• Dissatisfaction with 1932 Relief Camps - designed to keep Dissatisfaction with 1932 Relief Camps - designed to keep

potential trouble makers out of the cities - think Winnipeg potential trouble makers out of the cities - think Winnipeg 1919 - ironically, the camps concentrated large groups of 1919 - ironically, the camps concentrated large groups of men who were easily organized.men who were easily organized.

• 20¢/day = slave labour20¢/day = slave labour• Young men were mobile - concentrated in Vancouver (why Young men were mobile - concentrated in Vancouver (why

would 1/3 of 150 camps be in BC?): history of unrest - would 1/3 of 150 camps be in BC?): history of unrest - Vancouver 1932Vancouver 1932

On to Ottawa: Kamloops3 June, 1935

On to Ottawa: Kamloops3 June, 1935

On July 1st a meeting was called at Market Square

On July 1st a meeting was called at Market Square

• Only about 300 strikers attended - but almost 2000 people gathered.

• Most strikers stayed at the exhibition grounds

• Bennett had ordered the protest stopped - he didn’t want trouble in Ottawa.

Strikers at the exhibition grounds

Regina Riot:1 July, 1935Regina Riot:1 July, 1935

The RCMP hid in 3 vans and the Regina Police hid in a The RCMP hid in 3 vans and the Regina Police hid in a garage. At 8 p.m. a whistle blew and they charged, garage. At 8 p.m. a whistle blew and they charged, beginning hours of hand-to-hand fighting. In the end 1 plain beginning hours of hand-to-hand fighting. In the end 1 plain clothes policeman was dead. 120 strikers were arrested.clothes policeman was dead. 120 strikers were arrested.

Outcome:Outcome:

• The next day the RCMP surrounded the stadium with machine guns - strikers were cut off from food and water.

• The strikers called the Premier for a meeting - they were arrested but released to meet

• National newspapers reported the police initiated riot• Premier Gardner blamed Bennett for the trouble. He ordered

the men be fed and negotiated a disbandment to the strike.• The men boarded trains an returned west.• Bennett said, the Trek was "not a mere uprising against law and

order but a definite revolutionary effort on the part of a group of men to usurp authority and destroy government." - the Tories were defeated that year in the 1935 federal election.

Bloody Sunday: Bloody Sunday: Sit down strike, Sit down strike, Vancouver, 1938Vancouver, 1938

How are the How are the police achieving police achieving order?order?

End