Macdonald’s National Policy 1878

Review
1874:
Macdonald was not re-elected
1874-1878:
Bad economic times everywhere
Result: Very few new settlers came to the West
1878: Year of elections

WHY did Macdonald introduce the NATIONAL POLICY?
1) To realize his ‘vision’ for Canada
Strong country
United country
Rich country
2) To get re-elected as Prime Minister in 1878

REMEMBER?
Promise to British Columbia in 1871?
__________________
Promise to Prince Edward Island in 1873?
___________________
Promises regarding Rupert’s Land?
__________________
__________________

Don’t Forget.....
There’s always a need for ...
$$$$
How could he raise $$$?
Impose new taxes

No surprise ...
Macdonald won the 1878 election

Macdonald’s NATIONAL POLICY
(3 promises)
Tax American products brought into Canada
Find a company to build a railway (east –west)
Attract more immigrants to the west to farm
Goal?
Make Canada strong and rich

Did Macdonald deliver on his promise to raise $$$ by imposing a new tax?
Yes
Tariffs * were imposed on goods brought into Canada from the United States
(tariffs = taxes imposed on imported products)
Results:
1) Canadians bought Canadian goods
Why? They were_________
2) Canadian economy started to improve
Why? ______________

Did Macdonald deliver on his promise to build railways?
Yes
Canadian Pacific Railway Company (CPR) formed
Government gave the CPR:
$$
Land
Tax exemption
Promise of no railroad competition (20 years)
Railway building started in 1881 (completed in 1885)

Who benefitted from Promises #1 & #2?
The Canadian Pacific Railway Company (CPR)
Manufacturers in Central and Eastern Canada