Part 12

+------------------------+-------------+--------------------------+---------------+ | | | Population. | | | | Area in +------------+-------------+ Official | | | sq. mi. | 1881. | 1901. | Capital. | +------------------------+-------------+------------+-------------+---------------+ | Provinces-- | | | | | | Ontario | 260,862 | 1,926,922 | 2,182,947 | Toronto | | Quebec | 351,873 | 1,359,027 | 1,648,898 | Quebec | | Nova Scotia | 21,428 | 440,572 | 459,574 | Halifax | | New Brunswick | 27,985 | 321,233 | 331,120 | Fredericton | | Manitoba | 73,732 | 62,260 | 255,211[1]| Winnipeg | | British Columbia | 372,630 | 49,459 | 178,657 | Victoria | | Prince Edward Island | 2,184 | 108,891 | 103,259 | Charlottetown | | Saskatchewan | 250,650 | \ 25,515 | 91,460[1]| Regina | | Alberta | 253,540 | / | 72,841[1]| Edmonton | | | | | | | | Districts-- | | | | | | Keewatin | 516,571 | \ | 8,800 | . . | | Yukon | 196,976 | | | 27,219 | Dawson City | | Mackenzie | 562,182 | > 30,931 | 5,216 | . . | | Ungava | 354,961 | | | 5,113 | . . | | Franklin | 500,000 | / | | . . | +------------------------+-------------+------------+-------------+---------------+ | The Dominion | 3,745,574[2]| 4,324,810 | 5,371,315 | Ottawa | +------------------------+-------------+------------+-------------+---------------+

In 1867 the Dominion was formed by the union of the provinces of Nova Scotia, New Brunswick, Quebec (Lower Canada) and Ontario (Upper Canada). In 1869 the North-west Territories were purchased from the Hudson's Bay Company, from a corner of which Manitoba was carved in the next year. In 1871 British Columbia and in 1873 Prince Edward Island joined the Dominion.

The islands and other districts within the Arctic circle became a portion of the Dominion only in 1880, when all British possessions in North America, excepting Newfoundland, with its dependency, the Labrador coast, and the Bermuda islands, were annexed to Canada. West of the province of Ontario, then inaccurately defined, the provinces of Manitoba and British Columbia were the only organized divisions of the western territory, but in 1882 the provisional districts of Assiniboia, Athabasca, Alberta and Saskatchewan were formed, leaving the remainder of the north-west as unorganized territories, a certain portion of the north-east, called Keewatin, having previously been placed under the lieutenant-governor of Manitoba. In 1905 these four districts were formed into the two provinces of Alberta and Saskatchewan, and Keewatin was placed directly under the federal government. In 1898, owing to the influx of miners, the Yukon territory was constituted and granted a limited measure of self-government. The unorganized territories are sparsely inhabited by Indians, the people of the Hudson's Bay Company's posts and a few missionaries.

_Population_.--The growth of population is shown by the following figures:--1871, 3,485,761; 1881, 4,324,810; 1891, 4,833,239; 1901, 5,371,315. Since 1901 the increase has been more rapid, and in 1905 alone 144,621 emigrants entered Canada, of whom about two-fifths were from Great Britain and one-third from the United States.

The density of population is greatest in Prince Edward Island, where it is 51.6 to the sq. m.; in Nova Scotia it is 22.3; New Brunswick, 11.8; Ontario, 9.9; Manitoba, 4.9; Quebec, 4.8; Saskatchewan, 1.01; Alberta, 0.72; British Columbia, 0.4; the Dominion, 1.8. This is not an indication of the density in settled parts; as in Quebec, Ontario and the western provinces there are large unpopulated districts, the area of which enters into the calculation. The population is composed mainly of English- or French-speaking people, but there are German settlements of some extent in Ontario, and of late years there has been a large immigration into the western provinces and territories from other parts of Europe, including Russians, Galicians, Polish and Russian Jews, and Scandinavians. These foreign elements have been assimilated more slowly than in the United States, but the process is being hastened by the growth of a national consciousness. English, Irish and Scots and their descendants form the bulk of the population of Ontario, French-Canadians of Quebec, Scots of Nova Scotia, the Irish of a large proportion of New Brunswick. In the other provinces the latter race tends to confine itself to the cities. Manitoba is largely peopled from Ontario, together with a decreasing number of half-breeds--i.e. children of white fathers (chiefly French or Scottish) and Indian mothers--who originally formed the bulk of its inhabitants. Alberta and Saskatchewan, particularly the ranching districts, are chiefly peopled by English immigrants, though since 1900 there has also been a large influx from the United States. British Columbia contains a mixed population, of which in the mining districts a large proportion is American. Since 1871 a great change has taken place throughout the west, i.e. from Lake Superior to the Pacific. Then Manitoba was principally inhabited by English and French half-breeds (or Metis), descendants of Hudson's Bay Company's employes, or adventurous pioneers from Quebec, together with Scottish settlers, descendants of those brought out by Lord Selkirk (q.v.), some English army pensioners and others, and the van of the immigration that shortly followed from Ontario. Beyond Manitoba buffalo were still running on the plains, and British Columbia having lost its mining population of 1859 and 1860 was largely inhabited by Indians, its white population which centred in the city of Victoria being principally English.

French is the language of the province of Quebec, though English is much spoken in the cities; both languages are officially recognized in that province, and in the federal courts and parliament. Elsewhere, English is exclusively used, save by the newly-arrived foreigners. The male sex is slightly the more numerous in all the provinces except Quebec, the greatest discrepancy existing in British Columbia.

The birth-rate is high, especially in Quebec, where families of twelve to twenty are not infrequent, but is decreasing in Ontario. In spite of the growth of manufactures since 1878, there are few large cities, and the proportion of the urban population to the rural is small. Herein it differs noticeably from Australia. Between 1891 and 1901 the number of farmers in Ontario, Quebec and the Maritime provinces decreased, and there seemed a prospect of the country being divided into a manufacturing east and an agricultural west, but latterly large tracts in northern Ontario and Quebec have proved suitable for cultivation and are being opened up.

_Religion_.--There is no established church in Canada, but in the province of Quebec certain rights have been allowed to the Roman Catholic church ever since the British conquest. In that province about 87% of the population belongs to this church, which is strong in the others also, embracing over two-fifths of the population of the Dominion. The Protestants have shown a tendency to subdivision, and many curious and ephemeral sects have sprung up; of late years, however, the various sections of Presbyterians, Methodists and Baptists have united, and a working alliance has been formed between Presbyterians, Methodists and Congregationalists. The Methodists are the strongest, and in Ontario form over 30% of the population. Next come the Presbyterians, the backbone of the maritime provinces. The Church of England is strong in the cities, especially Toronto. Save among the Indians, active disbelief in Christianity is practically non-existent, and even among them 90% are nominally Christian.

_Indians_.--The Indian population numbers over 100,000 and has slightly increased since 1881. Except in British Columbia and the unorganized territories, nearly all of these are on reservations, where they are under government supervision, receiving an annuity in money and a certain amount of provisions; and where, by means of industrial schools and other methods, civilized habits are slowly superseding their former mode of life. British Columbia has about 25,000, most of whom are along the coast, though one of the important tribes, the Shuswaps, is in the interior. An almost equal number are found in the three prairie provinces. Those of Ontario, numbering about 20,000, are more civilized than those of the west, many of them being good farmers. In all the provinces they are under the control of the federal government which acts as their trustee, investing the money which they derive chiefly from the sale of lands and timber, and making a large annual appropriation for the payment of their annuities, schools and other expenses. While unable to alienate their reservations, save to the federal government, they are not confined to them, but wander at pleasure. As they progress towards a settled mode of life, they are given the franchise; this process is especially far advanced in Ontario. A certain number are found in all the provinces. They make incomparable guides for fishing, hunting and surveying parties, on which they will cheerfully undergo the greatest hardships, though tending to shrink from regular employment in cities or on farms.

_Orientals_.--The Chinese and Japanese numbered in 1906 about 20,000, of whom, three-quarters were in British Columbia, though they were spreading through the other provinces, chiefly as laundrymen. They are as a rule frugal, industrious and law-abiding, and are feared rather for their virtues than for their vices. Since 1885 a tax has been imposed on all Chinese entering Canada, and in 1903 this was raised to L100 ($500). British Columbia endeavoured in 1905 to lay a similar restriction on the Japanese, but the act was disallowed by the federal legislature.

_Finance_.--Since 1871 the decimal system of coinage, corresponding to that of the United States, has been the only one employed. One dollar is divided into one hundred cents (L1=$4.86-2/3). The money in circulation consists of a limited number of notes issued by the federal government, and the notes of the chartered banks, together with gold, silver and copper coin. Previous to 1906 this coin was minted in England, but in that year a branch of the royal mint was established at Ottawa. Though the whole financial system rests on the maintenance of the gold standard, gold coin plays a much smaller part in daily business than in England, France or Germany. United States' notes and silver are usually received at par; those of other nations are subject to a varying rate of exchange.

The banking system, which retains many features of the Scotch system, on which it was originally modelled, combines security for the note-holders and depositors with prompt increase and diminution of the circulation in accordance with the varying conditions of trade. This is especially important in a country where the large wheat crop renders an additional quantity of money necessary on very short notice during the autumn and winter. There has been no successful attempt to introduce the "wild cat" banking, which had such disastrous effects in the early days of the western states. Since federation no chartered bank has been compelled to liquidate without paying its note-holders in full. The larger banks are chartered by the federal government; in the smaller towns a number of private banks remain, but their importance is small, owing to the great facilities given to the chartered banks by the branch system. In 1906 there were 34 chartered banks, of which the branches had grown from 619 in 1900 to 1565 in 1906, and the number since then has rapidly increased. The banks are required by law to furnish to the finance minister detailed monthly statements which are published in the official gazette. Once in every ten years the banking act is revised and weaknesses amended. Clearing-houses have been established in the chief commercial centres. In October 1906 the chartered banks had an aggregate paid-up capital of over $94,000,000 with a note circulation of $83,000,000 and deposits of over $553,000,000.

There are four kinds of savings banks in Canada:--(1) the post-office savings banks; (2) the government savings banks of the Maritime provinces taken over at federation and being gradually merged with the former; (3) two special savings banks in the cities of Montreal and Quebec; (4) the savings bank departments of the chartered banks. The rate of interest allowed by the government is now 3%, and the chartered banks usually follow the government rate. The amount on deposit in the first three increased from $5,057,607 in 1868 to $89,781,546 in October 1906. The returns from the chartered banks do not specify the deposits in these special accounts.

The numerous loan and trust companies also possess certain banking privileges.

The federal revenue is derived mainly from customs and excise duties, with subsidiary amounts from mining licences, timber dues, post-office, &c. Both the revenue and the expenditure have in recent years increased greatly, the revenue rising from $46,743,103 in 1899 to $71,186,073 in 1905 and the expenditure keeping pace with it. The debt of the Dominion in 1873 and in 1905 was:--

+------------+--------------+--------------+ | | 1873. | 1905. | +------------+--------------+--------------+ | Gross debt | $129,743,432 | $377,678,580 | | Assets | 30,894,970 | 111,454,413 | | Net debt | 98,848,462 | 266,224,413 | +------------+--------------+--------------+

While the debt had thus increased faster than the population, it weighed less heavily on the people, not only on account of the great increase in commercial prosperity, but of the much lower rate of interest paid, and of the increasing revenue derived from assets. Whereas in 1867 the rate of interest was over 4%, and interest was being paid on former provincial loans of over 6%, Canada could in 1906 borrow at 3%.

The greater part of the debt arises from the assumption of the debts of the provinces as they entered federation, expenditure on canals and assistance given to railways. It does not include the debts incurred by certain provinces since federation, a matter which concerns themselves alone. A strong prejudice against direct taxation exists, and none is imposed by the federal government, though it has been tentatively introduced in the provinces, especially in Quebec, in the form of liquor licences, succession duties, corporation taxes, &c. British Columbia has a direct tax on property and on income. The cities, towns and municipalities resort to it to supply their local needs, and there is a tendency, especially pronounced in Ontario on account of the excellence of her municipal system, to devolve the burden of educational payments, and others more properly provincial, upon the municipal authorities on the plea of decentralization.

_Commerce and Manufactures._--Since 1867 the opening up of the fertile lands in the north-west, the increase of population, the discovery of new mineral fields, the construction of railways and the great improvement of the canal system have changed the conditions, methods and channels of trade. The great extension during the same period of the use of water-power has been of immense importance to Canada, most of the provinces possessing numerous swift-flowing streams or waterfalls, capable of generating a practically unlimited supply of power.

In 1878 the introduction of the so-called "National Policy" of protection furthered the growth of manufactures. Protection still remains the trade policy of Canada, though modified by a preference accorded to imports from Great Britain and from most of the British colonies. The tariff, though moderate as compared with that of the United States, amounted in 1907 to about 28% on dutiable imports and to about 16% on total imports. Tentative attempts at export duties have also been made. Inter-provincial commerce is free, and the home market is greatly increasing in importance. The power to make commercial treaties relating to Canada rests with the government of Great Britain, but in most cases the official consent of Canada is required, and for many years no treaty repugnant to her interests has been signed. The denunciation by the British government in 1897 of commercial treaties with Belgium and Germany, at the request of Canada, was a striking proof of her increasing importance, and attempts have at various times been made to obtain the full treaty-making power for the federal government. The great proportion of the foreign trade of the Dominion is with the United States and Great Britain. From the former come most of the manufactured goods imported and large quantities of raw materials; to the latter are sent food-stuffs. Farm products are the most important export, and with the extension of this industry in the north-west provinces and in northern Ontario will probably continue to be so. Gold, silver, copper and other minerals are largely exported, chiefly in an unrefined state and almost entirely to the United States. The exports of lumber are about equally divided between the two. Formerly, the logs were shipped as square timber, but now almost always in the form of deals, planks or laths; such square timber as is still shipped goes almost entirely to Great Britain. Wood pulp for the manufacture of paper is exported chiefly to the United States. To that country fresh fish is sent in large quantities, and there is an important trade in canned salmon between British Columbia and Great Britain. Few of the manufacturers do more than compete with the foreigner for an increasing share of the home market. In this they have won increased success, at least five-sixths of the manufactured goods used being produced within the country, but a desire for further protection is loudly expressed. Though the chief foreign commerce is with Great Britain and the United States, the Dominion has trade relations with all the chief countries of the world and maintains commercial agents among them. Her total foreign trade (import and export) was in 1906 over L100,000,000.

_Shipping_.--The chief seaports from east to west are Halifax, N.S., Sydney, N.S., St John, N.B., Quebec and Montreal on the Atlantic; and Vancouver, Esquimalt and Victoria, B.C., on the Pacific. Halifax is the ocean terminus of the Intercolonial railway; St John, Halifax and Vancouver of the Canadian Pacific railway. Prince Rupert, the western terminus of the Grand Trunk Pacific railway, was in 1906 only an uninhabited harbour, but was being rapidly developed into a flourishing city. Though Halifax and St John are open in winter, much of the winter trade eastwards is done through American harbours, especially Portland, Maine, owing to the shorter railway journey. Esquimalt, Halifax, Kingston (Ont.) and Quebec have well-equipped graving-docks. The coast, both of the ocean and of the Great Lakes, is well lighted and protected. The decay of the wooden shipbuilding industry has lessened the comparative importance of the mercantile marine, but there has been a great increase in the tonnage employed in the coasting trade and upon inland waters. Numerous steamship lines ply between Canada and Great Britain; direct communication exists with France, and the steamers of the Canadian Pacific railway run regularly to Japan and to Australia.

_Internal Communications_.--Her splendid lakes and rivers, the development of her canal system, and the growth of railways have made the interprovincial traffic of Canada far greater than her foreign, and the portfolio of railways and canals is one of the most important in the cabinet. There are, nominally, about 200 railways, but about one-half of these, comprising five-sixths of the mileage, have been amalgamated into four great systems: the Grand Trunk, the Canadian Pacific, the Canadian Northern and the Intercolonial; most of the others have been more or less consolidated. With the first of the four large systems is connected the Grand Trunk Pacific. The Intercolonial, as also a line across Prince Edward Island, is owned and operated by the federal government. Originally built chiefly as a military road, and often the victim of political exigencies, it has not been a commercial success. With the completion of the Grand Trunk Pacific (planned for 1911) and the Canadian Northern, the country would possess three trans-continental railways, and be free from the reproach, so long hurled at it, of possessing length without breadth.

At numerous points along the frontier, connexion is made with the railways of the United States. Liberal aid is given by the federal, provincial and municipal governments to the construction of railways, amounting often to more than half the cost of the road. The government of Ontario has constructed a line to open up the agricultural and mining districts of the north of the province, and is operating it by means of a commission. Practically all the cities[3] and large towns have electric tramways, and electricity is also used as a motive power on many lines uniting the larger cities with the surrounding towns and villages. Since 1903 the Dominion government has instituted a railway commission of three members with large powers of control over freight and passenger rates and other such matters. Telephone and express companies are also subject to its jurisdiction. From its decisions an appeal may be made to the governor-general in council, i.e. to the federal cabinet. It has exercised a beneficial check on the railways and has been cheerfully accepted by them. In Ontario a somewhat similar commission, appointed by the local government, exercises extensive powers of control over railways solely within the province, especially over the electric lines.

Despite the increase in railway facilities, the waterways remain important factors in the transportation of the country. Steamers ply on lakes and rivers in every province, and even in the far northern districts of Yukon and Mackenzie. Where necessary obstacles are surmounted by canals, on which over L22,000,000 have been spent, chiefly since federation. The St Lawrence river canal system from Lake Superior to tide water overcomes a difference of about 600 ft., and carries large quantities of grain from the west to Montreal, the head of summer navigation on the Atlantic. These canals have a minimum depth of 14 ft. on the sills, and are open to Canadian and American vessels on equal terms; the equipment is in every respect of the most modern character. So great, however, is the desire to shorten the time and distance necessary for the transportation of grain from Lake Superior to Montreal that an increasing quantity is taken by water as far as the Lake Huron and Georgian Bay ports, and thence by rail to Montreal. Numerous smaller canals bring Ottawa into connexion with Lake Champlain and the Hudson river via Montreal; by this route the logs and sawn lumber of Ontario, Quebec and New Brunswick find their destination. It has long been a Canadian ideal to shorten the distance from Lake Superior to the sea. With this object in view, the Trent Valley system of canals has been built, connecting Lake Ontario with the Georgian Bay (an arm of Lake Huron) via Lake Simcoe. In 1899 and subsequently surveys were made with a view to connecting the Georgian Bay through the intervening water stretches, with the Ottawa river system, and thence to Montreal. In 1903 all tolls were taken off the Canadian canals, greatly to the benefit of trade.

_Mining_.--The mineral districts occur from Cape Breton to the islands in the Pacific and the Yukon district. Nova Scotia, British Columbia and the Yukon are still the most productive, but the northern parts of Ontario are proving rich in the precious metals. Coal, chiefly bituminous, occurs in large quantities in Nova Scotia, British Columbia and in various parts of the north-west (lignite), though most of the anthracite is imported from the United States, as is the greater part of the bituminous coal used in Ontario. Under the stimulus of federal bounties, the production of pig iron and of steel, chiefly from imported ore, is rapidly increasing. Bounties on certain minerals and metals are also given by some of the provinces. The goldfields of the Yukon, though still valuable, show a lessening production. Sudbury, in Ontario, is the centre of the nickel production of the world, the mines being chiefly in American hands, and the product exported to the United States. Of the less important minerals, Canada is the world's chief producer of asbestos and corundum. Copper, lead, silver and all the important metals are mined in the Rocky Mountain district. From Quebec westwards, vast regions are still partly, or completely, unexplored.