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founded in 1921 in Guelph, Ontario. Members The new leader of the Soviet Union, Joseph Stalin, tried to keep their organization secret because they because of his dictatorial cruelty, made it very were committed to a workers' revolution to difficult for Communist parties in different overthrow democratic governments based on the countries to support the foreign policy of the Soviet capitalist system, the private ownership of wealth. Union and did not allow them to develop their They believed individuals and companies that own policies democratically. This dictatorship by owned businesses, land, and company shares were the Communist Party leader drove away many driven by greed and the desire for personal profits. people who valued their personal rights and Communists thought that these people did not freedoms. care about their fellow human beings and were The collapse of the stock markets in 1929 and prepared to exploit workers and labourers to make the rapid rise in unemployment suddenly gave more money for themselves and their families. Canadian Communists a chance to recruit new Communists wanted to eliminate private ownership supporters. Tim Buck and other Communists of business and property. This, they believed, would worked very hard to organize the unemployed create a perfect society with no poverty and where workers in the cities. They blamed big business, the all people would be equal. banks, and capitalism for the Great Depression. Some workers during the Winnipeg General They claimed that the Depression proved the Strike of 1919 had been sympathetic to the claims theories of Karl Marx (on which Communism is of the new Soviet government in Russia and based) and that capitalism could be defeated and admired the leader, Vladimir Lenin. A few recent be replaced by a government and economy run for European immigrants who spoke in support of and by the workers as in the Soviet Union. Some Lenin were deported from Canada after the strike. Canadians listened to their ideas with interest. However, as prosperity and jobs returned to Canada Communist activities were monitored closely in the 1920s interest in and support for the by the government. Prime Minister Bennett Communist Party of Canada remained very low. despised Communism. On August 11, 1931, he ordered the RCMP to arrest Tim Buck and seven other Canadian Communist leaders. They were charged under section 98 of the Criminal Code COMMUNIST PARTY of CANADA with belonging to an organization that was plotting Sucks B C. DISTRICT to overthrow the government by illegal and violent WORKERS & the WORLD means. They were convicted and sent to Kingston UNITE . Penitentiary as a warning to others who might support Communist ideas. The Co-operative Commonwealth Federation In 1932 a number of independent members of Parliament joined a few university professors and the leaders of a few farmers' organizations and unions to plan a new political party called the Co- operative Commonwealth Federation (CCF). At Figure 7.11 If you had been unemployed during their founding convention in Regina in 1933, the the Great Depression do you think you would have joined the Communist Party? CCF adopted a platform called the Regina Manifesto. It attacked the negatives of capitalism 108 The Great Depression and World War II, 1929-1945Bennett had little power in these meetings. Only several years of falling world trade and the election of new governments in these countries would produce changes in tariff policies. As the Depression deepened. both the people and the government became impatient. Farmers and unemployed Workers demanded relief from the crushing burdens oflow prices, high debts. falling wages, and unemployment. Bennett's next step was to create a Royal Commission of experts to study the situation. When it became clear that drought was going to hit a large part of the southern prairies again in 1931, Bennett passed laws to subsidize, or provide mds, to help pay freight rates, to help farmers transport their grain, and to lower income taxes. He extended unemployment relief payments to the provinces for another year. But Bennett, like King, did not believe in the ideas of the British economist John M. Keynes, who suggested that governments should go deeply into debt in a crisis like a depression to put more money into the economy. According to Keynes this g0vernment money would provide the jobs, business, and purchasing power needed to end a depression. The government decit or debt could be repaid during good economic times when people were earning more money and paying more taxes. But Bennett believed in trying to keep a balanced budget and opposed going into debt - it was like buying something on credit, which he opposed. Prime Minister Bennett's attempts to solve the Pmblems created by the Great depression were not enough and did little to help unemployed workers. especially the single unemployed. These men and Women did not qualify for relief in many cities and towns and were forced to move back into their parents' homes or to leave their homes to look for Work. Confidence to spend had to somehow be restored. Leaders from British Empire countries met in Ottawa at the imperial Economic Conference in 1932. Britain nally agreed to some imperial Preferences on trade goods. However. the economic impact ofthese trade deals was small and could not reverse the downward trend in the world economY' Governments would not take any other direct economic action. Families were evicted to the streets because they could not pay their rent, and unemployed single people everywhere Were becoming desperate and discouraged. There did not seem to be any solutions to the economic crisis and no end was in sight. CHECKPomT 1. Why did Prime Minister King believe that the stock market crash of 1929 was not a serious problem? 2. Why did Prime Minister King think he could win the election of 1930? 3. List three of R. B. Bennett's election promises. ALTERNATE SOLUTIONS Prime Minister Bennett had moved quickly after the 1930 election to raise tariffs and to provide relief money to the provinces for unemployed workers. \"then he sat back and waited. Partners, fishers. workers. and small business owners waited too. But prices continued to fall, crops failed on the prairies. exports kept shrinking, and jobs disappeared. People reacted in different ways; some were shocked. others frightened. and some were angry. Unemployed workers rejected claims that their problems in the Great Depression were caused by their own failure to work hard. Some people lost patience with the old political parties. They believed that there was something wrong with the system and began to search for new and radical ideas that would signicantly change the way that the society and economy operated for Canadians. The Communist Party of Canada The smallest and most radical group was the Communist Party of Canada. The party was Government and the Great Depression 10? REGINA SASK Figure 7.12 A good number of women are present at the CCF National Convention, 1933. What do you think might have drawn them to this particular political party at this time in history? and promised a policy of democratic socialism, a The CCF described itself as "a democratic system in which the means of production and movement, a federation of farmer, labour... distribution are owned, managed, or controlled by financed by its own members and seeking to a central, democratically elected authority. The CCF achieve its ends solely by constitutional methods." believed that the elected government should be However, they rejected a revolution as a way of involved in the economy to get rid of the unfairness changing the systems. Instead they were dedicated of the free market economy and to treat people to education, organizing a democratic political equally based on their needs. Businesses should be party, and winning power through election. They owned by the government to make sure that prices believed in democracy but wanted more were fair and that any profits were returned to the government control. ordinary people James S. Woodsworth was elected as the first Unlike the Communist Party, which believed in leader of the CCF. He had been a leader of the revolution, the CCF believed in democracy and free Winnipeg General Strike and the workers of north elections to achieve its goals. The new party was Winnipeg had elected him to Parliament in every modelled on the British Labour Party in Britain. The election since 1921. He was a former Methodist CCF also blamed the Great Depression on big minister, school teacher, longshoreman, and social business, the banks, and the greed of capitalism. worker. In the 1920s Woodsworth had co-operated with a small group of labour and farm members of Figure 7.13 Parliament, such as Agnes Macphail, to fight for Agnes Macphail was Canada's social reform, including old age pensions and better first female working conditions. The tragedy of the Great member of Parliament. She Depression made Woodsworth and his followers was the only support a more radical solution to the country's woman to sit in problems. Would Canadians be prepared to adopt the House of Commons until socialism in the next federal election? 1935. Describe Despite the high unemployment rate and the how you think that situation many problems created by the Depression most would have felt Canadians continued to support the two traditional for her. Government and the Great Depression 109parties in Canada; they were not attracted to the CCF Party. In the federal election of 1935 only seven CCli candidates were elected to the House of Commons; all ofthem came from the West. At the provincial level the CCF had more success. To the shock of many Canadians the CCF was elected in 1944 as the provincial government of Saskatchewan and Tommy Douglas, a Baptist minister, became Premier. The Douglas government introduced the first provincial human rights laws and used the government to bring hydroelectricity to rural communities In the 19605 the CCF also introduced health insurance after a fierce light with Saskatchewan doctors. In 1961 the federal CCF joined with Canadian labour unions in the Canadian Labour Congress to found the New Democratic Party (NDP) of Canada. This new political party promised to try to bring democratic socialism to the rest of the country. The NDP did succeed in electing provincial governments in Manitoba, British Columbia, and Saskatchewan in the 1960s and 19705 but had to wait until the 19905 to win in Ontario. At the federal level the NDP has remained only a small party with between 2 percent and 12 percent ofthe seats in the House ofCommons. The NDP continues to defend the interests of workers, the aged. and disadvantaged against the interests of big business and the wealthy in Canada. Many of the party's ideas have been adopted by the traditional parties and are a part of Canadian lives today. Two examples are unemployment insurance and universal health insurance for all Canadians. The Social Credit Party Alberta turned to a different political movement in the search for a solution to the Depression. The province's economy depended heavily on agriculture for its success and prosperity. Albertans relied on the railways to ship their grain to market and the banks to finance their farms and businesses. The head ofces of the railways and the banks were in the cities of eastern Canada and this was resented by many westerners. As prices for grain 110 The Great Depression and World War II, 19294945 and livestock remained low, farmers could n01 make their payments on their bank loans. Farm debt was crushing farm families and they looked for new solutions to these problems. William Aberhart and the supporters of social credit maintained that the solution to their economic problems was to put money into distribution and change the credit system in Canada. They advocated putting the money that was sitting idle in banks and trust companies into the hands of consumers who would spend it. The best way to start the economy working again was for the government to use its credit to print more money and give a monthly cheque of $25 to every adttlt. The dream of money owing again and removing the threat of relief from so many families was a popular quick fix in'1934 and 1935. Aberhart approached the other political parties and asked them to adopt the theories of social credit. Both the Conservatives and Liberals reiected the idea, claiming that ifthe government printed more money, the money would simply lose its value and become worthless. Then Aberhart approached the provincial government of Alberta, which was led by the United Farmers of Alberta. The Lan had formed the provincial government since 1921 and nine of their members of Parliament had joined the CCF when it was founded in 1933. The UFA had provided good government, but the Depression, the drought. high debts, low wheat prices, and bank foreclosures and takeovel's of farms had taken its toll on their popularity with the voters. Many supporters of the UFA liked the ideas of social credit. However, the leaders of the UFA recognized that only the federal government could print money in Canada under the Constitution. They rejected the ideas of social credit doctrine as being impractical. However. Aberhart and the supporters of social credit would not take \"no\" for an answer. When the Premier. lohn Brownlee, was forced to resign in 1933 because of a scandal, 1the UFA was further weakened. Albertans were looking for a new leader to solve their problems. As the 1935 election approached. Aherhart and his supporters organized a new political party, the Soda] Credit Party of Alberta. Aberhart was an excellent campaigner. More than half the electors voted for the Social Credit Party. With this sweep to victory William Aberhart became the Premier of Alberta. Once in power Aberhart moved cautiously. It took his government two years to pass laws favouring Social Credit practices. The federal government vetoed, or reiected, a number of these laWS because they were federal responsibilities. The courts agreed and niled that these laws were outside the power of the provincial govemments. Whenever The immense number ofpropertyiess wage earners on the one hand, and the superabundanr riches of the fortunate few on the other, is an unanswerabie argument that the earrhbr goods so abundantly produced in this age of industrialism are far from righthr distributed and EaQuitai'iiy shared among the various classes of men. -Pope Pius XI. Quadrageismo Anno. 1931 1. 2. the Social Credit government failed to live up to their promises. Premier Abethart placed all blame on the federal government. The Social Credit Party governed the province of Alberta from 19351971. The Social Credit Patty spread to British Columbia in the 19505 where it became the dominant party for 40 years. In the 19605 the ideas of the Social Credit Party became popular in parts of rural Quebec. However at the federal level the Social Credit Party had less success. They had some candidates from Alberta, British Columbia, and Quebec elected over the years but never enough to form the Ofcial Opposition, let alone the Government of Canada. The Social Credit - Party is no longer a force in Canadian politics. In the 19905 the Reform Party was founded by Preston Manning the son of Ernest Manning. a former Social Credit Premier of Alberta. The Reform Party has carried some of the cautious, conservative ideas of western Canada to Parliament with the election of Reform candidates from the West. The Union N ationale in rural Quebec the farmers had been hurt by the low prices: in the towns and cities, unemployment was high for factory workers and labourers. Many of the businesses in Quebec were run by English- speaking Canadians. These businesses and the American companies that operated in the province had close ties with the provincial Liberal What viewpoint or bias does Pope Pius XI have on this period of history? For more information on bias. see page 407 of the Skills Appendix. Summarize the above statement of Pope Pius XI in your own words. 00 you agree with his ideas? Explain. Think about the developing countries today. Could today's Pope make a similar statement to Pope Pius Xl's? Government and the Great Depression 11! highsr minimum wages, Workers compensation. and to create a provincial governmentowned hydro-electricity system like the one in Ontario. It was a close election and Duplessis narrowly lost Another election was held in 1936 and the Union Nationale won with a large majority of seats. and Duplessis became Premier of Quebec. But like Aberhart in Alberta. Duplessis did not bring in Lhe reforms he had promised. instead he allowed the English Protestants to continue to dominate and control business in Quebec because the Roman Catholic Church opposed Catholics making excessive amounts of money from other Catholics. Duplessis continued to allow the Roman Catholic Church to control social services like schools, hospitals, and religion. Government action was taken against unions and their leaders, when roughnecks were sent to intimidate suikers and break up picket lines to end a strike. Contrary to Duplessis' promise. no electricity companies were nationalized (taken over by the government) to provide cheap energy. His government was corrupt and members of his party accepted bribes from companies that were awarded government contracts. Voters who elected Liberals often found that they had no paved roads or bridg and not enough schools and hospitals in their tidings. They would only get these services if they elected Union Nationale members to the National Assembly. Today Duplessis is remembered as a Qubec nationalist who prevented Quebec and its people from adapting to a changing world around them. Everything was kept the same in an attempt to preserve their traditions and way of life in a sea of English-speaking people He often challenged the federal government to protect the interests of his French Canadians; most notable was his challenge regarding involvement in World War II. His memory has the respect of many nationalists and separatists in Quebec today. After Duplessis' death change would come suddenly to Quebec. destroying much of what he had tried to preserve. You will learn more about this in future chapters. HECKPOIHT 1. Why did some Canadians lose confidence in the Liberal and Conservative parties during the Great Depression? 2. Explain the difference between Communism and Socialism. 3. Why is James S. Woodsworth remembered in Canadian history? 4. Why do you think the CCF (NDP) has never formed a government at the federal level? 5. How did the Social Credit Party hope to solve the problems of the Depression? 6. Why did the Roman Catholic Church support Duplessis and the Union Nationale? 7. What argument would support the idea that the Union Nationale was bad for Quboc? BACK 10 MR. BENNETT In 1933 Bennettwas not prepared to adopt more active measures to improve the economy. He reiected the new socialist ideas proposed by Iarnes Woodsworth and the CCF. He refused to raise taxes on the wealthy few and give more money to Canada's needy. Bennett still hoped that the economy would correct itself through the natural uctuations of the business cycle without government help. Bennett was not prepared to change his approach to the careful management of a balanced budget in 1934. He would not go into debt to help solve the Depression; he Would wait and see Government and the Great Depression 113 CHAPTER 7 Government and the Great Depression THINKING AHEAD As you read this chapter, consider the following questions: - How did the economic conditions of the 19205 compare with those of the 19305? '- What role did the government play in the lives of Canadians in the 19305? 0 Why were political parties such as the Cooperative Commonwealth Federation, Communist Party of Canada. Social Credit. and Union Nationale created? The Great Depression lasted for ten terrible years (19291939). it was the worst economic disaster that the modern world had ever experienced. and it brought terrible suffering to millions of people Situations occurred that made the bad economic times worse. The living conditions of many Canadians deteriorated. in 1929 the stodc market collapsed. businesses went bankrupt, workers lost their jobs, and trade between provinces and countries collapsed. As well, prairie farmers in western Canada experienced a terrible drought, which destroyed their farms and livelihoods. This combination of events was made worse by politicians who did not know how to handle this economic disaster. They were unwilling and unable to try new solutions to solve Canada's economic problems. 100 The Great Depression and World War II. 1929-1945 UNDERLYING CAUSES or THE GREAT DEPRESSION anada was especially hard hit by the Depression because its economy had developed very quicldy between 1900 and 1929. Canada had certain Weaknesses that made it vulnerable to any sudden downturn in the world economy. Dependence on the sale of exports of natural resources. too much optimism about the future, a growing dependence on credit, high tariffs ' and the low incomes of some Canadians were essential underlying causes of the Great Depression. 1n the 19205 Canada's economy depended on the sale of exports to other countries. especially the United States. Natural resources made up most of these exports. The sale of wheat. fish, paper. minerals, coal, and wood to other countries. especially in war-torn Europe. made Canada prosperous. But the good times Were dependent on the continued sales of these products. other assets as collateral to get the loans to buy their shares. This was risky but there was belief that shares would steadily increase in value and that they would be cashed in later at much higher prices. Buying on margin created an artificial heavy demand for shares in the 1920s and company shares rose steadily in price. The price of a share is determined by what people are willing to pay for it; it does not necessarily represent the value of what the company is worth. Figure 7.1 There were plenty of jobs in the 1920s, Types of Economic Activity like work on car assembly lines. Balloon = economy Most Canadians and Canadian businesses in Air in balloon = money, jobs, the 1920s were overly optimistic about the future. business in economy They believed the good times would last forever and that their quality of life would continue to PROSPERITY improve. Farmers borrowed money from financial institutions to purchase more land. Businesses expanded by going into debt. They bought more factories and machines and hired extra workers based on the general belief that demand for their goods and services would steadily increase. Banks also felt confident about the future and generously RECESSION lent money to increase their profits. Most Canadians had jobs in the 1920s and they spent their wages to buy homes, cars, and appliances, and on entertainment. Buying on credit DEPRESSION became popular for many Canadians who went into debt to buy when they did not have cash. As long as people had jobs they could afford to make their monthly payments to creditors. Some people Figure 7.2 even bought shares of company stock on credit, By examining the illustration above, write two called buying on margin. A share is one unit of sentences describing each type of economic activity. ownership in a company that can be purchased or 2. When a balloon is inflated what happens? What sold in a place called a stock market. Buying on is the meaning of inflation? What can happen to the value of a dollar during inflation? Why? margin required investors to put down only 10 3. When a balloon is deflated what happens? percent of the cost of the shares. The remainder was What is the meaning of deflation? What can borrowed which required the payment of interest. happen to the value of a dollar during deflation? Why? These investors also had to put up some collateral 4. Why were people willing to pay higher and to back up the loan in case the price of the shares higher prices for stocks? went down. Investors who were buying on margin often put up their homes, businesses, cars, and Government and the Great Depression 101There were signs that the economy was not healthy in the late 19205. Many businesses found they had overproduced and began to stockpile their goods in warehouses. There was not enough demand for their products. Other countries like the United States were undergoing similar experiences. Suddenly there was less demand for Canadian natural resources because factories in other countries using those resources had huge stockpiles of goods and started producing less. To protect Canadian businesses and their workers, the government raised tariffs on foreign imported goods These taxes on imports increased their prices, making them more expensive than goods made in Canada. But other countries also raised their tariffs on imports and this resulted in less trade and fewer sales. The demand for Canadian resources and goods began to fall after 1928, and Canadian workers were laid off. Attempts to protect the economies of countries by raising tariffs and 102 The Great Depression and Worid War II. 1929-1945 prices on imports reduced trade between countries during the Great Depression and further damaged their economies. The boom and prosperity of the 19205 was not shared by all Canadians Some workers remained in poor paying jobs and their standard of living remained low. They couid not afford to buy as many goods and services as other Canadians. Wheat farmers received high prices for their grain up to 1928, but those who produced other crops were not as fortunate. Most Maritimers in eastern Canada did not share in the economic boom of the l9205 either. There were not as many factory iobs in the Maritimes as there were in central Canada, and wages were often low. Those Canadians who did not share in the prosperity of the 1920s could not buy as many goods and their lack of purchasing power further weakened the Canadian economy. Economic clouds were gathering in the late 19205 but few people noticed. CI-rscxrourr Summarize what was wrong with the Canadian economy In the 19205 under the following headings: 0 natural resources 0 buying on credit 0 overproduction of goods - raising tariffs - a low standard of living IMMEDIATE CAUSES OF THE GREAT DEPRESSION ______________ To make economic matters worse a terrible dmltgl'lI hit the prairies in 1929. in addition to the lack of rain, over farming, high temperatures, and PMSU\" of locusts turned sections of the Canadian W851 into dust bowls. Without rain the dry land blew away and the harvesting of crops became imPOS' sible. The drought lasted for ten insufferable years- Decreases in Income 1928-1933 Province Average Salary Average Salary Average Salary $ per person S per person % of decrease per year 1928 per year 1933 Alberta 548 212 61 British Columbia 594 314 47 Manitoba 466 240 48 New Brunswick 292 180 38 Nova Scotia 322 207 36 Ontario 549 310 44 Prince Edward Island 278 154 45 Quebec 391 220 44 Saskatchewan 478 135 72 Canada 471 247 48 Figure 7.5 Which province had the greatest percentage decrease? The least? Why do you think this was so? Figure 7.4 Soil drifting had devastating effects on the prairies. Can you explain how the term "dust bowl" came into being? The Collapse of the Stock Market The start of the Great Depression was triggered by Farmers could no longer afford to buy factory the stock market crash on October 29, 1929. This goods from Ontario and Quebec; this affected the day was called "Black Tuesday" because prices for economies of those provinces. While prairie farmers shares collapsed in the United States and Canada. were struggling to survive Australia, Russia, and Investors suddenly realized that their shares were Argentina had huge harvests of wheat. This forced overpriced and they tried to sell them all at once. the price of wheat down from $1.29 a bushel On this day in New York City 16 419 030 shares [0.036 m'] in 1928 to 34 cents in 1932. Some prairie farmers, who were fortunate enough to escape the drought, often burned their crop because it would cost more to harvest it than it would bring on the market. While this was happening, other Canadians were starving. Between 1931-1941, 250 000 farmers abandoned their farms in the West and joined the ranks of the unemployed in Canadian cities. This caused the Depression to worsen. Freeze FRAME Average incomes for farmers in Saskatchewan fell from $1644 Figure 7.6 The New York Stock Exchange after the stock market crash. Investors panicked and many a year in 1928 to $66 in 1933. lost all of their money. What thoughts might be in their minds at this time? Government and the Great Depression 103traded and lost half their value ($9 billion). The Market Montreal and Toronto stock exchanges also plunged demand downward; 16 companies alone lost $300 million of their value. Many investors lost all their savings Wages Increased increased nvestment and went bankrupt. Millionaires became destitute overnight; some even committed suicide. Prosperity Cycle 1920s The Values of Shares in Companies Demand for Expansion of 1929 1932 labour increases production Price of each Price of each Company share share Demands for goods and Abitibi $ 57.75 $ 1.00 services increase Bell Telephone 183.00 78.00 B.C. Power "A" 60.00 15.50 Market demand Canada Cement 36.00 declines 2.25 Wages decrease, buying power CPR 67.50 8.50 lessened Consumers' Gas 196.00 142.00 Dominion Glass 220.00 40.00 Depression Cycle 1930s Dominion Stores 55.00 16.62 Layoffs, Investment 9.12 unemployment declines Imperial Oil $1.25 labour surplus International Nickel 72.50 5.12 Massey Harris 99.50 2.50 Production Noranda 69.00 12.50 decreases Quebec Power 99.00 9.25 Figure 7.8 Write a paragraph to explain in your Figure 7.7 Which company shares fell the most from 1929-1932? The least? Why might this be? own words the different stages of a "prosperity cycle." Then write another paragraph explaining a "depression cycle." A Downward Spiral Much of the prosperity of the 1920s was based on a false sense of optimism, which led to irresponsible lending and borrowing. With the collapse of the CHECKPOINT stock market in 1929 companies that had overspent 1. How did the drought in the West make the and overproduced misjudged their markets and Great Depression worse? went bankrupt. This resulted in mass unemploy- 2. Why did some farmers burn their crops? Do ment, less money in the economy, and less you think the government should have purchasing power. Workers who lost their jobs stopped them? Explain your answer. could not meet their credit payments. They lost 3. Why did the stock market collapse on their houses, cars, and appliances. Those businesses October 29, 1929? that managed to survive had to lower prices, lay off . Do you think there could be another stock workers, and reduce wages. There was far less market collapse? Explain. Support your view money to spend and the economy continued its with current news items. downward spiral in the early 1930s. The Depression worsened and hopes and dreams disappeared. 104 The Great Depression and World War II, 1929-1945GOVERNMENT REACTIONS Very few people saw the Great Depression coming. Certainly not politicians. They had been caught up in the long run of prosperity in the 19205. Prime Minister King thought that the stock market crash in October 1929 would be only a temporary setback for the Canadian economy. The sharp fall in wheat prices on World markets and the Winnipeg Grain Exchange at the same time was more troubling for the country. The production, shipping. and export of grain was an important part of the east-west Canadian economy. But price swings were part of the business cycle and did not shock Canada's leaders in 1929. Rising numbers of unemployed workers could also be explained as part of the business cycle during poor economic times. Many factories, mines, and lumbering rms slowed their production over the winter months. Companies often laid off workers for one. two, or even three months every winter and rehired them in the spring. Mackenzie King remained condent that the economy would correct itself and planned for the next election in 1930. Prime Minister King faced a new opponent in the leader of the Conservative Party, a millionaire lawyer from Calgary, Alberta, Richard 3. Bennett. Both men were wealthy bachelors whose investments had not been destroyed by the stock market crash. Bennett had been elected leader of the Conservative Party in 1927 and was ready to pour $600 000 of his own money into the election campaign to defeat King and the Liberals. He was already campaigning in favour ofa higher tariff to protect Canadian goods from unfair competition by other countries, especially the United States. Prime Minister King believed that he could win the election for these reasons: he had lowered taxes, achieved a balanced budget, and increased trade with Britain. He thought that his government had done a good job since 1926 and the country had Flowered. He proposed to offer lower tariffs to Britain and other countries in the British Empire that imported more goods from Canada than they exported to Canada. in his pre-election budget in May 1930, he cut the sales tax at home. Prime Minister King also believed that he had luck and good fortune on his side. in February i930 he consulted his fortuneteiler. Mrs. Bleaney from Kingston, Ontario, who had correctly predicted the results of his last two elections. She assured him that the signs were strong that he would win an election in either [930 or 1931. but that 1930 was the better year. The economy had not recovered in the spring of 1930. Prices for grain and minerals remained very low. Companies had not rehired all their workers. Unemployment remained high in many cities, and in the West low wheat prices and the drought reduced job opportunities and income for many people. King would not increase taxes or borrow money to help the poor in 1930. Richard Bennett presented a different image to Canadian voters in 1930. lie campaigned across the country giving many speeches in which he promised to take action. He spoke on radio and his booming voice sounded confident. He promised to increase tariffs against any country that raised tariffs against Canadian products. He promised millions ofdollars to the provinces for building projects and Government and the Great Depression 195 for relief of the unemployed and their families. Bennett's forceful words, high energy level, and personal wealth suggested that he was a knowledgeable leader who could get things done. Compare the following election quotations from each man. With respect to giving moneys...to any Tory (provincial) government for...unemployment purposes..I would not give them a five-cent piece. -Prime Minister W. L. M. King in the House of Commons, 1930 I promise you action. King promises Figure 7.10 This protest by the Mothers Council (discussion) of the problem of unemployment; I of Vancouver was just one of many protests during promise to end unemployment. Which plan do the Depression. What kinds of protests have you heard of taking place recently? Do you think you like best? protests like this have any effect? -R. B. Bennett, election campaign 1930 history. Bennett assured people that he would lower I will use tariffs to blast a way into the markets tariffs on countries that cut their tariffs on (of the world) Canadian products. The new Prime Minister hoped -R. B. Bennett, election campaign that this would allow him to bargain with other 1930 countries to win concessions in the trade war that would allow goods to move again. This strategy Let me ask you frankly, did you ever hear of sounded solid during an election campaign, but it anyone blasting a way to trade? Did you ever ignored the reality of Canada's relations with its secure an order [for goods] by force? . . .Is it not much larger trading partners, the United States and an elementary principle of business that trade is Britain. Canadian trade was a small part of the not secured by ill-will but by goodwill. American economy and US politicians in the -Prime Minister W. L. M. King, 1930 Republican Party were in no mood to negotiate with any of their trading partners. Britain had been Based on the above quotations, which person committed to a free trade policy for many years and would you vote for in the election of 1930? Why? did not want to place tariffs on goods from other The election was held on July 28, 1930. Voters countries in order to help its rejected Mackenzie King's cautious approach and colonies and dominions. turned to Bennett. The Conservatives won seats in all parts of the country, including more seats in History on the Web Quebec than they had won since 1891. Bennett moved quickly to keep his promises. He called Parliament and passed laws to grant Go to the following web site: $20 million in emergency aid to the www.canadianprimeministers.com/rbbpfb.html provinces for relief and public works. This site has a biography of R. B. Bennett, including an Parliament also passed new laws to overview of his career. How would the positions Bennett raise tariffs on imports to their held during his political career help him in his role as Prime highest levels in Canadian Minister? 106 The Great Depression and World War II, 1929-1945