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Ristory Department M.A . ABSTRACT This thesis examines the effect on Canadian-American relations of . United states attempts to erilist Canadian cooperation in theenforcement of the Volstead Act (1920-1933). lt deals with the political, economic and moral factors involved in Canada's response to American requests for assistance. lt describes Mackenzie King's efforts to appease both those . Canadians favouring cooperation and those opposing it, as he sought to preserve Canadian unity. The thesis also discusses the sinking of the l'm Alone, emphasizing the implications of American efforts to enforce domestic law on the high seas. lt reviews the political circumstances which persuaded Mackenzie King, in 1930, to prohibit liquor exports to the United states. Finally, the thesis considers wby R.B. Bennett, despite h1.s "bard line" attitude towards the United States, maintained the ban on clearances unti.1. the repeal of the Eighteenth Amendment. Michael HAYMAN RISTORY DEPARTMENT M.A. THE VOLSTEAD Ar::r AS A REFLECTION OF CANADIAN-AMERICAN RELATIONS ' .. THE VOLSTEAD ACT AS A REFLECTION OF CANADIAN-AMERICAN RELATIONS by Michael Hayman A thesis submitted to the Faculty of Graduate Studies and ~esearch in partial tulflllment of the requirements for the degree of Master of Arts Department of History McGill University Montreal February 1971 PREFACE Considerable research has been done on the history of the Eighteenth Amendment. (1) A smal.1 number of historians have briefly examinèd the abortive movement for permanent national prohibition in Canada. No detailed study, however, bas been made of the influence their divergent 1iquor systems exerted on relations between Canada and the United states during the 1920's. Indeed, most historians analyzing Canadian-American relations in this critical decade ignore comp1etely the impact their 1iquor 1aws had on international relations. Others give only passing attention to the com:p1ex situation created by the passage of the Vo1stead Act in the United states and the concomitant movement away from prohibition in Canada. (2) This thesis examines, from a Canadian view, the effects of the Vo1stead Act on Canadian-American relations. The Vo1stead Act po1arized conflicting Canadian and American attitudes towards prohibition 1egis1ation. It produced considerable international controversy. It demons"trated Canada's growing determination to protect her national interests against foreign encroachment and to assume control of her foreign po1icy, particular1y in negotiations vith the United States. The Vo1stead era revealed c1ear1y the prob1ems wh1.ch a small and re1ative1y weak nation faces when its po1icies conflict vith those of a neighbour possessing tremendous economic and po1itica1 power. Chapter One of the thesis constitutes a brier discussion of the history of the prohibition movement in both countries. This introductory coopter is necessary because the evants which followed the Vo1stead Act vere determined by the relative success of the prohibition movement in the United States and its comparative failure in Canada. the fact that the United States vas becom:1ng increasingly "dry" and Canada increasingly "wet." The thesis then comes to grips vith its central theme, the attempts by the United States to enlist Canadian cooperation in the enforcement of the Volstead Act and the impact of these attempts upon Canada. For thirteen years - rrom 1920 to 1933 - the repeated United states requests for assistance innuenced 1 The Eighteenth Amendment, passed by the United States Congress in January - 1919, out1aved the manufacture, sale, consumption, import and export of 1iquor. The Volstead Act, passed in October 1919, provided the mach1nery for enforcing the 1aw. Prohibition vent formally into effect at lllidnight, January 16, 1920. 2 Although the Eighteenth ADlendlllent and the Vo1stead Act are not synonymous Most contemporary sources used the terms interchangeab1y. This author vill do so as vell. i Canada's po1itical 1ife, provided the inspiration for countless newspaper articles and editorials and precipitated controversy among Canadians of every economic stratum and il\ every geograpbical area. Between 1920 and 1926 Canadian public opinion was opposed to cooperation. In the following years there was a graduai shift towards support for cooperation. The author attempts to exp1ain the reasons for tbis change and for the ultimate passage of the 1930 excise act amendment, which probibited 1iquor exports to the United States. The studyattempts to provide an insight into the complex reaction to Canadian-American relations of W1l1iam Lyon Macken~ie King, the dominant Canadian political personality of the period. King vas the leader of the Liberal party and it vas bis political astuteness which enabled the party to remaiD in power for almost n:i.ne of the f'ourteen years during which the Vo1stead Act vas in force. lt vas Mackenzie King who weighed the arguments both for and against cooperation and who bore the major responsibility for determining the policy Canada would adopte The story of the influence of the Vo1stead Act on Canadian-American relations between 1920 and 1933 must be to1d large1y in terms of the tortuous course of' Mackenzie King' s liquor export po1icy. This thesis also examines the incident of' the l'm Alone, a Canadian "rum-running" schooner sunk in March 1929 by the shell f'ire of' the American coast guard. The peacef'ul. settlement of' the "l'm Alone" dispute lndicated that Canada and the United States were determined to minimize the gravity of' such crises. But the incident also showed that Canada must dea1 f'irmly with her more powerf'ul neighbour if she vere to escape domination. Finally, the writer dea1s br1efiy w1th the Canadian reactio~rds 11quor exports between the passage of' the excise act amendment and the repeal of' the E1ghteenth Amenc1ment in December 1933. In 1930 R.B. Bennett vas e1ected Prime Minister. Bennett's campaign p1atform was based at least partly on anti­ Americanism and if he carried bis "Canada f1rst" pol1cy to its logical conclusion the government would repeal the excise act amendment. The f'ailure of' the Conservative administration to change Canada's polic.y of'fers a partial exp1anation of' Bennett's comp1ex view of' Canadian-Amer1can rel.ations. lt vas also a cleu indication of' the powerf'ul impact made upon Canadians by the moral issues invo1ved in the liquor trade. Many sources vere used in the preparation of' th1s manuscr1pt. An intensive study vas made of' American consular reports as gauges of' public opinion. These officials vere specifically entrusted w1th the responsibllity of conveying to the State Department their objective assessment of' the Canadian attitude towards liquor exports. Their reports must carry considerable veight. Newspapers vere also regarded as a primary source in the analysis of public opinion, with due regard to subjective elements which uy have inf'luenced them. The press also gave the author valuable intorution about the areas in which 1iquor smuggling vas particularly extensive. Every ed1t1on of the ',rlindsor Border Git1es Star am the Buff'alo Evening News betveen 1920 and 1933 vas checked to secure an acourate assessment of the tiquor trarf1c along the Detroit-W1nJsor 11 and Niagara Falls-Buffalo borders. The report of the Royal Commission on Customs and Excise (1926) gave a complete picture of the activities of "rum-rurmers ft and bootleggers èuring the period. The Mackenzie King Papers and those of Arthur Meighen. ~.3. Bennett. H.H. stevens and N.W. Rowell were invaluable in analyz:ing the pollcies of the Liberal and Conservative parties. Numerous books and artiCles on ?~ohibition and on Canadian-American relations in general helped the author fit the issue into the context of the period. The author is gratefUl for the generous cooperation extended to h1m by a great number of individuals. The staffs at the Public Archives in Ottawa and the National Archives in Washington offered their assistance freely whenever it was requested. LibrariaDs in Windsor, Toronto, Montreal, Moncton, Halifax, Sydney, New York and Boston cheerf'u1.1y brought up countless relevant newspapers. The author 18 indebted to Henry F. Angus. Hugh L. Keenleyside, Senator Arthur Roebuck and Harry H. Stevens. who took ti!Ile to answer his letters. Judge Bora Laskin helped provide a Clearer understanding of the Canadian constitution. A special note of thanks !II1St be extended to John E. !le~d, Legal Advisor for the Canadian Deoartment of External Affairs between 1919 and 1946. l had the privilege of discussing certain ~pects of MY' thesis vith him for three hours on a cold morning in Dece.ber of 1968. But the individua1 Who bas Bade the major contribution to the development of this thesis bas been Professor Carman Miller, of the Department of Rist.ory at McGill University. His patient reading of its various drafts and his many conStructive suggestions vere invalu.able. The thesis would not have been possible without bis advice. dL?"8ction and guidance. Michael Hayman February 1971 TABLE OF CONTENTS Page PREFACE. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i CHAPTER ONE CHALLENGE TO THE VOLSTEAD ACT ••••••••••••• 6 CHAPTER 'IWO MACKENZIE KING'S DILEMMA •••••••••••••••••• 31 CHAPTER. THREE A POLICY OF APPEASEMENT ••••••••••••••••••• 51 CHAPTER FOUR PROFITS AND PRINCIPLES •••••••••••••••••••• 84 CHAPTER FIVE PROHIBITION TAKES TO THE HIGH SEAS •••••••• ll? CHAPTER SIX "THE PEOPLE ~~ THE MASTERS" •••••••••••••• 139 CHAPTER SEVEN R.B. BENNETT
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