Economy under British Rule

1763-

 1763-Royal Proclamation redefined the borders by creating the province of Quebec After the Conquest things remained the same in the economy, just different players British mercantilist policy became the reality: Raw materials went to the UK and goods returned to the colony

 Until the mid-19th century GB maintained a policy of protectionism: favored the buying of goods from within the Empire For Ex. Corn Laws in 1815 which gave preferential tariffs on British market to grains produced in the colonies

 Preferential tariffs were also extend to wood Late 1840s preferential tariffs abolished on colonial products Page 175- You must read definitions of Protectionism and Preferential tariffs!!

British merchants and traders

After the Conquest French merchants continued to do business with British merchants Intermediaries became important, as many British merchants stayed in the UK but had someone take care of their trade in the colony

 British business class quickly developed and strengthened their hold on the economy in Quebec They formed the British Party-They were opposed to the Canadiens and the French civil Law which applied to trade

 British common law were introduced to deal with issues of trade and the economy in 1777 Trade, business and the economy was now the domain of the English elite (Scots and English)

Rise and fall of the fur trade

The British merchants continued the fur trade The Canadiens did the field work as they knew the territory and the expertise for trading with the Natives 1763-Borders of Quebec are narrowly drawn

 Rest of the territory was Native territory Only those with permission from the govt could go there to get fur from the Natives 1774-Quebec Act expanded the territory of Quebec to include the entire region of the Great Lakes (GL)

 The expansion of the Quebec territory gives other merchants beside the HBC to chance to further exploit the fur trade 1779-English, Scottish, and Canadiens merchants created the Northwest Company (NWC) to compete with the HBC

 HBC responded by opening more inland trading posts The expansion of trade to the Northwest meant with more posts that more workers Workers were better paid but they were forced to stay during the winter

 Rivalry between the NWC and the HBC intensified NWC dominated the inland trade and the areas around the GL HBC dominated Ruperts Land

Trading Posts-NWC and HBC

 The government intervened and asked the companies to settle their disagreement 1821 HBC and NWC became one company under the name HBC The Fur business by then was in decline

 Less demand for fur in Europe and logging had diminished hunting grounds Fusion of HBC and NWC had a negative impact of the Aboriginals as they now dependent on one company for trade and goods