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The Faculty of Graduate Studies, University of Manitoba, Ïn Partial Ful-Fil-Lment of the Degree of Master of Arts

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The Faculty of Graduate Studies, University of Manitoba, Ïn Partial Ful-Fil-Lment of the Degree of Master of Arts T}TE NATIONAL FATIACY AND T}TE I/ÙHEAT ECONOMY: NÏT'TETEENTH CENTURY ORTGTNS OF THE V!'ESTERN CANADTAN GRATN TRADE by David Robert McQueen Jackson, B.A. A Thesis Submitted to The Faculty of Graduate Studies, University of Manitoba, ïn Partial Ful-fil-lment of the Degree of Master of Arts. Ttlinnipeg, Manitoba September, Ig1z THE NATIONAI FALLACY AND THE WHEAT ECONOMY: NINETEENTH CENTURY ORIGINS OF THE I,IESTERN CANADIAN GRJ,IN TP.ADE BY DAVID ROBERT McQUEEN JACKSON A thesis sub¡nitted to the Faculty of (ìraduate Stuclies ol t,he university of rvf a'itoba i' partial furfirl'ent of trre rcqrircrlerts of the degree of MASTER OF ARTS @ 1982 Pennission has bee¡r granted to the LIBRARY oF THE uNIVER_ ¡ SITY OF MANITOBA to lend or sell copies of this rhesis. to the NATIONAL LIBRARy OF CANADA to microfilm rhis thesis a¡rd 10 rend or se, copies of the firm, and uNIVERsrr' lvllCIìOFILN{S to publish all abstract of this thesis. rle author reservr's other pubricatio' rights, and neither the thesis nor extensive extracts from it nray be printed or othe r- wise reproduced without the author's writtell pernrission. ABSTRACT schôl-ars have long assumed that the inlestern canadian wheat economy,of thg eãrly twentieth century was the consequence of a nineteenth century.fäderal go,ru".r*unt þrogram, known as the 'national- policy',- inspired Ëy sir Jonn e. Macdonar_d. However, when the basic erements ór this allegeã-foii"y r"" investigated, it becomes apparent that no systematic strategy to promote an agriculturar- Stapre economy wás forwarded by the federal conservative government. rndeedl the of fostering another eïnort staple economy was anathema";;;;pi to nineteenth century cãnadian-toryism. ä" such, the deveropment of the lt/estern canadian grain iäaustr¡r must be re-examined from a perspective that iecogniz.o "ii""native causation. -bhe ltjhen various components of the developing nineteenth century-grain trade are uñraveIled, the i*r,;ñã-ïñpäi"" provided by indigenous regional ¡ecomes-äñpã""nt. T?*"t.ung by federal govelnment policies,"iér""i= early western branch line construction was made possitle-;;iy trrrougrr the financial aid of the Mani!çÞ"-legislaiure and the"municípal bonusing craze, Although the initial_ iñpetus was provid.ed by cÞR-rã!ür"tior,", the pressures of worl-d. ãconomic aårratiãn develop caused loõal- grain men to and utilize vast grain netøorks. Also, by virtue of the c.ontrary desigãs iñ;'eãstern"r",rãio" canad.ian milling establishment, ü,'innipóg sraln interãstã-*""""¡ forced to erect a powerful, centralized marketing apparatus to secure international- demand for lrrles!"ry grain. gp"r?i:"ä-i"-tandem, the-e created a great wheat funnel-which components spout ñaÀ a¡re t;'c;;p;iativery the prairie.staple onto the world's markets and. usher in the wheãt'boom' or'iÀe-àarry tweniietir century. CONTENTS Tntroduction PART T Chapter ONE: IVIYTHOT-,OGY OF T}IE EARIY GRATN TRADE 6 TWO: THE NATIONAI POLICY¡ FACT 0R FAI'ICY? ¿ó PART II T}AEE: EART,Y ]¡üESTERN AGRTCUI,TURE & TRANSPORTATT ON REQUIREMENTS 61. FOIIR: TFIE EVOIUTION 0F TIIE BRANCH ITNE NETWORK 78 FÏ\TE: T}IE DEVEIOPMENT OF AN EI,EVATOR SYSTEM 97 PART TTT SIX: T}TEORY AND TIVFI,EMENTAT]ON OF TTß GRADTNG AND INSPECTION SYSTEM r22 SE\TEN: WINNIPEG'S ASCENDANCE OVER T}IE TRADE: EVOT,UTION OF MARKET]NG DOMINANCE L36 EÏGHT: WINNTPEG'S ASCENDANCE OVER THE TRADE: REGRESSION & REFORMATION r59 PART TV NINE: TIIE STATE 0F THE l^ilIEAT ECONOMÍ AT TliE END OF T}E NTNETEENTH CENTURY 771+ TEN: EARIY AGRARIAN DTSCONTENT & THE MANITOBA GRAIN ACT, 1900 IB3 Concl-usion L99 References 209 Bibl-iography 250 Acknowledgments This thesis is the final- result of a long and trying fascination with the mysteries of the Canadian grain trade. It began all too many years ago in my father's livingroom where he and his good friend Professor Vrl.D. Smith once shared with me some stories surrounding that infamous 'house with the closed shutters , ' The ltliruripeg Grain Echange. These tales of d.ecadence and commercial piracy so sparked my curiosity that when f eventually fo'und myself i-n a graduate thesis program the subject of my studies was never at issue. Many people have assisted me in this project and before I single-out the very special few to whom I am particularly indebted, I wish to awknowledge the unqualifíed support and assistance I received from the entire Department of History at the University of Manitoba. hlhenever difficulties arose, there wasn't a member of the faculty, support staff or student body who didn't do everything in his or her power to help. Moreovêr, without the financial- support it provided through vaiious assistantships and a Manitoba Graduate Fellowship, it would have been practically impossible to carry out this venture. Thus, to 'The Deþartment' ï express my unreserved gratitude. Special thanks must of course go to my thesis advisor, Professor w.D. smith. Tt is no doubt fitting that one of the persons who initiated my interest in the trade should survive to participate in its final fruition. Professor Smith has been blessed with the rare ability to share his wisdom while at the same tirne remain sufficiently aloof as to ensure his students free reign over their work. rt has been an honour and a pleasure to work under his guidance. During my first few years at the University, T had the good fort'une of being taken under the wing of Professor T,ovel1 Clark. He has since provided constant enco'uragement for my research and generously afforded me the benefit of his exceptional scholarship. ltlhether it was for consultation, the use of his personal Ìibrary¡ or simply coffee and conversation, Professor Clark's office has always been open. For this I am especially grateful. My studÍes have been further benefitted by the unequivocal support and enthusiasm of Professor Doug Sprague. rn the summer of 1979 he gave me the opportunity to work on the Manitoba Metis land commission where r not only gained invaluable research experience but also an undying respect for anarytical heresy. From that time forward he has always been wilring to take time away from his own intensive studies to read drafts of this work and offer his insights into its further development. Professors George schultz and Ger::y Friesèn arso warrant special consideration. rt v¡a-s in fl'reir grad.uate seminars on American and t¡/estern canadian history tñat r gained my first experience with the similarities between histoiiographical themes of national- development on both sides of tñe 49tfr Parallel. Al-so, it was Professor Friesen who advised me that the grain trade could not be properly understood until the basic infrasiruct'ure of railways aña graiir elevators was deciphered from the cpR records. He was right. - lwo grants from the J.s. Ewart Memorial fund provided me with the time in Ottawa to comprete the necessary research at the Public Archives of canada.- Roy Madocks exceäd.ed. even the traditional_1I generous bounds ôf archíval_ assistance by soliciting the vrlinnipeg commodity E;:change on my behalf fôr special access to the restricted.-winnipe! Grain"a prð¿uce Exchange records. _Fina1ly, I wish to thank both lilaryam and Noah for supporting my obsession with the grain trade. Trrä amount of time it-- separated me from them has been rny irretrievable l_oss. To my Mother and Father, for their support and. inspiration. l¡Ihat is history b'ut a fable agreed upon? Napoleon Bonaparte INTRODUCTTON -t - The dawn of the twentieth cent'ury witnessed the transformation of the isol-ated pockets of Confederation into an integrated and prosperous transcontinental_ economy within the confines of the canadian state. The principal agent of this transformation was the deveropment of a booming stap]-e trade in western canad.ian wheat initiated by a'fortuitous conjuncture' of worr-d events.l By the end. of the nineteenth cent'ury, the great western powers had completed a phase of struct'ural economic transition which enabled them to enter a new period of unprecedented :. industrial growth.2 This o second industrial- revolutioroJ not onry undermined much of Europeos ability to feed itself, but fostered a new dietary preference for owhitened' breads Jt and flour* - necessitating the importation of ever greater quantities of 'hard' wheat peculiar to North America. rndustrial upheaval- al-so fostered a vast exodus of popul_ation bound for the new worl-d. with the successful application of new dry-farming techniqu"=5, these immigrants were able to settl-e the semi-arid belt of the canadian prairies and produce the massive grain surprus necessary to satisfy the European demand. Arising in tandem, these forces ushered in the grandiose staple trade known as the canad.ian wheat öconomy. Yet it is doubtful that the development of this lucrat- ive staple trade woul-d have been realized had its entire success been dependent upon this 'fortuitous conjuncture' of European demand and prairie prod,uction arone. rn his -2- Principl-es of the Grain Trade of western canada, c.B. piper cites three basic factors required before a grain trade can be considered feasibl-er a grain surplus, a purchaser for this surplus, and the "necessary machinery of commerce,' by whichto transfer this surplus to the purchas"r.6 With this very el-ementary market model in mind it becomes quite appar- ent that given all the supply and demand impetus of the early twentieth century, the Western Canadian wheat boom woul-d have been an impossibility without an effective mechanism by which to transfer the commodity from the producer to the consumer.
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