| Technology and Invention (57-58) and A Booming Economy (59-62)
With reference to the telephone, air travel, the discovery of insulin and radio, EXPLAIN how the 1920s was an era of innovation and discovery.
At beginning of decade only 25% of Canadian homes had a telephone
These phones required a crank and the mouth and ear piece were separated
Dial telephone appeared in Toronto in 1924, and phones now had a combined mouthpiece and earphone
By end of decade, almost 75% of Canadians had telephones in their home
Pilots returning from war were eager to continue flying and thus travelled the country performing stunts
In 1924 government created the RCAF to conduct surveys, patrol for forest fires and watch out for smugglers
In 1927, post office hired pilots to fly mail to remote areas
Allows for easier transport of people, medical aid, food etc
Discovery of Insulin
Frederick Banting and his medical student Charles Best worked to isolate insulin in animals so he could treat people with diabetes
In January 1922, he injected insulin into Leonard Thompson
It was one of the most revolutionary discoveries in medical science
Radio Radio- Impact of US on Canadian Culture
The radio made the world seem smaller and ended isolation
Inexpensive entertainment and brought families together to listen to the latest news, sports, music and drama.
At beginning of decade radios were a status symbol, however by the end of the decade, there were more than 60 radio stations in Canada and almost a third of Canadian homes had a radio.
The Aird Report recommended that a government board operate a coast to coast radio system (later the CBC)
PROTECT CANADIAN CULTURE BY PROVIDING CANADIAN CONTENT
EVALUATE what you think was the most significant innovation during the 1920s. Justify your choice.
Why would few have predicted the booming economy that lay ahead?
In 1923, unemployment was at 17 per cent.
Inflation was eating up people’s life’s savings.
Rising cost of living- meaning prices of goods rise more quickly than people’s salaries
Exports to war-ravaged Europe were on the decline
Using information found on page 50 complete the flow chart found on page 63.
Agriculture- crop prices rise (1925-28)
Farmers invested profits to buy better equipment
Pulp and Paper- largest supplier of newsprint
supplying newsprint to the USA (2nd largest industry)
Mining- growing demand for minerals and metals
demand for metals linked to demand for automobiles
and electric appliances
Energy- petroleum and hydroelectricity
Linked to automobiles (oil and gas) and mining
Make a t-chart comparing the negative and positive consequences of the automobile industry in Canada since the 1920s. IMPACT OF USA- Economic
The problem of branch plants
Amalgamation and the end of the Canadian automobile companies
The decline of downtowns with the growth of suburbs, traffic jams, pollution
Spin off industries (road making, rubber tires, gasoline stations, motels)
Development of infrastructure
Greater freedom to travel, date, and work at a distance
What is a share and how is it used to finance the growth of companies?
A share is part ownership of a company
Shares are sold to investors to raise money
How did the investment strategies of Great-Britain and the United States differ? (IMPACT OF USA and GB on CANADA)
British financiers had invested in Canada by buying bonds
Bonds do not involve ownership but provide guaranteed interest payments
American investors preferred to buy shares in natural resource companies
By 1930, American investors controlled 20% of Canada’s industries, rising to 40% in the mining, smelting and petroleum industries
American investments surpassed Great Britain’s by 1926
During which period did American investments increase most rapidly? Why? (Hint: Use the pie charts on page 62)
Between 1914 and 1920 American investments increased by 21%.
The most important reason for this growth was the First World War.
Since Great Britain was strapped for money, Canada turned to the US for loans and financial help.
Canadian minerals and other natural resources were in great demand during the war, and many American investors saw an opportunity to make money by owning these resources.
How did American companies avoid paying tariffs on goods?
American companies established branch plants
A branch plant is a factory or business owned and controlled by a larger company that is based in a foreign country
Avoid National Policy- protectionist economy
Although these firms were run by American managers and returned profits to the home office, the produced “made in Canada” goods and thus avoided paying tariffs
What was the result of the establishment of American Branch Plants?
With the establishment of American branch plants, Canada lost control of its major industries resulting in a strong dependence on the US economy
By the end of the decade, Americans owned:
82% of Canada’s auto production
68% of Canada’s electronics industry
64% of Canada’s rubber industry
42% of machinery
41% of chemical production
Economically, Canada was becoming tied to the United States and Canadians became concerned about foreign investment