Our Oldest Good Neighbor
The United States Armed Forces
THE AMERICAN HISTORICAL ASSOCIATION
This pamphlet is one of n series made available by the War De-
partment under the series title Gl lioundtable. As the general title
indicates, Gl lioundtable pamphlets provide material which informa-
tion-education officers may use in conducting: group discussions or
forums as part of an off-fluty education program, and which operators
of Armed Forces Radio Service outlets may use in preparing- Gl Radio
Koundtablc discussion broadcasts.
The content of this pamphlet has been prepared by the Historical
Service Board of the American Historical Association. Each pam-
phlet in the scries has only one purpose: to provide factual informa-
tion and balanced arguments as a basis for discussion of all sides
of the question. It is not to be inferred that the War Department
endorses any one of the particular views presented.
Specific suggestions for the discussion or forum lender who plant*
to use this pamphlet will he found nu page U.S.
Washington 25, D. C, 14 Jan. 1946.
|A.G. 300.7 (14 Jan. l*U6t.J
EM 47, Gl Koundtablc : Canada: Our Oldest Good Neighbor
Current War Department instructions authorize the requi-
sition of additional copies of this pamphlet on the basis of
one copy for each 25 military personnel, within limits of the
available supply. Additional copies should be requisitioned
from the United States Armed Forces Institute, Madison -I,
Wisconsin, or the nearest Oversea Branch.
Distributed for use in the educational and informational programs of
the Navy, Marine Corps, and Coast Guard. This distribution is not
to be construed as an endorsement by the Navy Department of the
statements" contained therein.
Educational Services Section, Standards and Curriculum Divi-
sion, Training, Bureau ok Naval Personnel, Washington 25, D. C.
(Copies for Navy personnel are to be requisitioned from Educational
Education SECTION, Welfare Division. Special Services Branch.
United States Marine Corps, Washington 25, D. C. (Distributed
to Marine Corps personnel by Special Services Branch. Additional
copies, or information, may be obtained from unit Special Services
Training Division, Office OF Personnel, Coast Guard Headquar-
ters, WASHINGTON 25, I). C. (Copies for Coast Guard personnel
should be nquisitioned from the Commandant (PT), U. S. Coast
Guard Headquarters, Washington 25, D. C.)
Our Oldest Good Neighbor
How important is Conndo to the United States? 1
Is Canada disunited by its geography? 5
Is Here a deep split between French and
English Canada? 17
How does Canada govern itself — or does Britain do It? 27
How do the United States and Canada get along?.... 36
What hind of economy does Canada have? 41
What was Canada's role in World War II? 51
To the discussion leader 53
For further reading 57
Other Gl Rouodtable subjects 59
HOW IMPORTANT IS CANADA TO
THE UNITED STATES?
Do YOU RKMRMrek how the various parts of the British
Empire were always shown in red in your school geogra-
phies? Do you rememl>er that by far the largest splotch
of red on the map of the world lay just to the north of the
Or were you more impressed by the way the Dominion
of Canada showed up on the map of the United States —
as a blank white space from the (Jrcat Lakes and the 4!)th
parallel up to the top of the map?
Many Americans, unfortunately, have been nearly as
void of knowledge about Canada as that blank white space
on the map. As a nation we have been astonishingly igno-
rant of the country in which we have the largest stake, the
country that lies closest to us, and the country whose people
are most nearly related to us.
Hoir great is our stake in Canada?
It may surprise you to know how big our economic interest
in Canada is. The latest prewar figures show that our
trade with Canada, import as well as export, was much
greater than our trade with any other country in the world.
It was greater than (Mir trade with all the republics of
South America put together.
The latest prewar figures also show that several times
more American capital was invested in Canada than in any
other foreign country. It was more than in the whole of
South America. The depression proved our investments in
Canada to be the soundest of all our foreign investments.
Perhaps if they had not been so sound, if we had lost more
in Canada, we might have been less indifferent to that coun-
try and less inclined to take it for granted.
Canada is also important to us for reasons of security —
as the United States is to Canada. That was why, in August
1938, President Roosevelt told a cheering audience in Kings-
ton, Ontario, that the people of the United States would
"not stand idly by if the domination of Canadian soil is
threatened" by an aggressor. That was why, two years
later at Ogdensburg, he and Prime Minister Mackenzie
King agreed to form the Permanent Joint Defense Board
for the common defense of the northern half of this conti-
nent — in other words, our first permanent defensive alli-
ance. That was why we built the Alaska Highway, cooper-
ated with the Canadians in enlarging their Northwest Stag-
ing Route for air transport to Alaska, and established air
patrols over the region of Hudson Bay.
For the right to have military installations in the Do-
minion during the war, we promised to turn them over to
the Canadian government afterward. But these, with the
exception of the highway, were not to be free gifts to our
neighbor. Canada has already purchased all the perma-
nent air facilities, and the other American installations are
to be sold after a joint appraisal by the two governments.
The coming of air power has given Canada a most stra-
tegic position. Through Canada pass the shortest flying
routes from our country to Europe and Asia, the two con-
tinents that contain most of the world's population, wealth,
How cloBB are we to Canada?
Canada is by far the closest of all our neighbors. Our Mexi-
can boundary i.s less than half the length of our Canadian
boundary. Not counting Alaska, the United States touches
Canada along an unbroken line of 3,987 miles.
Most of the Mexican people live far from our border,
whereas most Canadians dwell right beside it. The large
majority of the Canadian population is concentrated along
the southern edge of the Dominion — within a hundred miles
of our country.
In still other ways the Canadians are closer to us than
are any other people in the world. No other people are so
like us in character. The Anglo-Canadians speak the same
language — even the same slang. Canadian English is Amer-
ican English, not English English. The people of Canada
are descended from much the same stock — half from the
British Isles and half from continental Europe, Canadians
and Americans have grown up together in the same environ-
ment. Either side along the boundary, from the Atlantic to
the Pacific, the pattern of daily life is much the same.
Not only are the Canadians more like us, but they also
like us more than do any other people. The reason is that
they understand us much better. On the whole, they know
us as we have not begun to know them, and they are in-
clined to resent our indifference.
They also criticize us quite freely, and often very justly.
But this is the natural reaction of a small nation living
under the shadow of a big one. It is also the kind of criti-
cism one member of a family levels against another — whom
he would leap to defend if he heard an outsider say tht
same thing. Most Canadians instinctively do that when
they have visitors from the outside world, even from Eng-
land, who cast reflections on the United States and things
To and fro across the border
Until the 1930's when immigration was slowed by the de-
pression, an almost continuous movement to and fro across
the border wove the two peoples together.
This intermingling of population between Canada and
the United States has been much greater and has been go-
ing on much longer than most of us realize. It began even
before the American Revolution. By that time so many
New Knglanders had migrated to Nova Scotia, which was
then their frontier, that it was practically a subcolony
of New England. Immediately after the Revolution many
more New Knglanders — called Tories by us and loyalists
by Canadians — settled in what are now the Maritime
Provinces of the Dominion. These Americans really made
that part of the country.
At the same time, farther west, a stream of American
pioneers began to pour into what are now Ontario and Que-
bec. The first of them were Tories or Loyalists from the
interior of the old colonies, principally New York. But
those who followed in increasing numbers down to the War
of 1812 were simple land-seekers. They were the original
settlers of the "Kastern Townships" — that part of Quebec
just across the line from New Hampshire and Vermont.
They were also the founders of Ontario, then called "Upper
Canada." Kven after the War of 1812 Americans kept on
moving over into Upper Canada.
By the middle of the century, the tide had turned the
other way. Canadians were pouring into Michigan. At
one time they made up 25 percent of its population. In the
latter half of the century the exodus from Canada to the
United States was much greater. By 1890 it was so great
that the population of Canada had almost stopped growing.
Before the close of the century, however, the tide again
turned in Canada's favor. What happened was that the
human stream filling our West was dammed up when the
last good free homestead land was taken, and then it spilled
over into the Canadian prairie. It continued to spill until
the outbreak of World War I. During the 1920's the balance
of migration once more swung from Canada to America.
As a result of this ebb and flow, about 1.5 of the 11.5
million people living in Canada are of United States origin
and there are about 5 million Americans of Canadian origin.
In addition to this more or less permanent exchange of
population, there has been a constant coming and going for
business and pleasure. In the typical year of 1931-32,
Canadian crossings into the United States numbered about
10.5 million and American crossings into Canada about 20
million. Many of these crossings are made by people who
live near the border and cross it daily commuting to work
on the other side.
Thus for generation after generation, from Atlantic to
Pacific, people have moved freely across the Canadian-
American border. There has been nothing like it anywhere
else in the world, and it has produced an international in-
timacy — there is no other way to describe it — that is quite
unique. To this we will return after we have had a closer
look at Canada.
IS CANADA DISUNITED BY
The area of Canada is considerably larger than that of
continental United States, and the countries look somewhat
alike on the map — if no railways or cities are marked on it.
If these are shown, they indicate that the distribution of
population is not at all the same.
As we have already observed, most of the Canadians live
along the southern side of their country. Why is this? If
you think climate is the answer, you have missed the most
important reason. It is geology.
More than half the Dominion is covered by a strange
rocky formation that has dominated the development of
Canada almost from the very beginning. This Pre-Cam-
brian or Laurentian shield, as it is called, lies like a gigantic
collar around Hudson Bay. It spreads out to the Atlantic,
and comes right down to the St. Lawrence, across which it
throws a spur to form the Thousand Islands. Westward it
encloses Lake Superior, and from there it stretches north-
west to the mouth of the Mackenzie River in the Arctic.
This rocky formation is made up of the stumps of ancient
mountains that have been ground down by the action of
glaciers in ages past. It is a wilderness of rocks, lakes, and
evergreen trees. Long ago it blocked the advance of settle-
ment. It has been of economic use for only three purposes —
at first for the furs it produced, and more recently for its
wealth of forest and mineral resources.
The Pre-Cambrian shield is to blame for crowding the
population of eastern Canada in a narrow belt of territory
along the south. It has also cut Canada in two, separating
the East from the West by a huge, almost uninhabited area.
There is no "Middle West" in the Dominion of Canada.
The Maritime Provinces
This is not the only way nature has divided the Dominion
into separate regions the like of which do not exist in our
country. Set apart in the extreme east are the three prov-
inces of Nova Scotia, New Brunswick, and Prince Edward
Island, which Canadians commonly lump together as the
Maritimes. They have a French history that is older than
the founding of New England, and in the nineteenth cen-
tury they received many immigrants from the British Isles.
But it was the settlement of the Loyalists that gave the
Maritimes their distinct character.
These Loyalists were generally people of superior educa-
tion and social standing — judges, lawyers, doctors, and
REGIONS of CANADA
Coal mining in the Marilimcs
A £<hmI haul of siinlinrs
Halifax is OaiiaHa's ;r< ,ii« -i port mi the Atlantic Ocean.
Snuglv li.'.jili <l in id. !••«• of hill*, ihi*- village lm»k> In sen.
Mo»lrt>al. nilh 1.200.000 preptr. In CaiuiiliiV luryr*! rii».
*;irli;MiH-nl Hill. Oihi\»:i
\ I'M" i mill in '.*'
it. -I. -.i. :ti
.1 liikf pur!
II.IMmr- fur Ihr II. S. \.,-
<»rnin elevators line llie railroa<I track al prairie town*.
Harvenl on the tvhentluntl* that stretch north of the bonier
Cattle raising; reuelieil nn all-time high during the war.
Com ox Viillev, t!riii-li Columbia
l,ake Ailin. Itritish (lulniiihia
!-•;'.- floal down wi'stcrni rtvern In siiwmilU and imnrr mills.
business leaders. It has been said that a list of them reads
like an honor roll of Harvard graduates of that time. Ever
since the Dominion was formed, the Maritimes have con-
tributed much more than their numerical proportion of its
prominent citizens, particularly in the professions.
Where did they get their brains? Harvard men might
have an answer, but Canadians have another. They smile
and say "fish," referring to the diet on which the Maritimers
are raised — or supposed to be raised. Their life has been
largely influenced by the fact that they have lived by the
sea, from the sea, and on the sea. The sea is in their blood.
These three provinces are much smaller than any one
of the other six, and they are the only ones whose popula-
tions spread over their whole area. They are almost cut off
from the rest of the Dominion by a rough mountainous
barrier and the northern salient of Maine.
Central Canatla — Quebec and Ontario
The next region of unbroken settlement is the long strip of
Quebec and Ontario that lies south of the Pre-Cambrian
shield. It is commonly known as Centra] Canada. Though
not geographically central, it contains nearly two-thirds of
the Dominion's population and is the center of economic and
political power in Canada.
The province of Quebec is much the older and is pre-
dominantly French. For nearly a century and a half it
was the main seat of the French empire that extended over
a great part of this continent. The city of Quebec, founded
in 1608, is older than any city in the United States except
St. Augustine. There you can see physically preserved
more of the past than anywhere else north of the Rio Grande.
In size Quebec cannot compare with its younger rival
Montreal, which is just over three centuries old. This is
now the largest city in the Dominion and with its suburbs
has a population of more than a million. It is the second
largest French-speaking city in the world, being next in
size to Paris.
For many generations the typical French Canadian lived
on a little farm, like a narrow ribbon, running back from
the river's edge. There are still many French Canadians
of the old type, but the majority now live in cities and
towns. The province of Quebec, in fact, has proportion-
ately the most industrialized population of any part of the
Dominion — though it retains many of its social and politi-
Ontario is the richest and most populous of all the prov-
inces. Therefore, its total industrial production exceeds
that of Quebec, though in proportion its population is not
quite so urban. Its agricultural society is the most pros-
perous In the Dominion. Toronto, the capital city, is not
so large as Montreal by 200,000, but it is two and a half
limes bigger than any other city in the country.
Ontario is often said to be the core or heart of the Domin-
ion. There is much truth in the statement, and the people
of that province are more or less conscious of it. If you
tell this to a man from another part of Canada, however,
you may get an interesting little explosion. No state in
the Union holds a position comparable to that of Ontario
in the Dominion. Nor is there any American parallel for
Though these two provinces of Central Canada are
separated by no natural barrier, the cleavage between them
is much greater than any that we have in our country.
Not even the Mason and Dixon's line cuts as deep as the
division between French-speaking Roman Catholic Quebec
and English-speaking Protestant Ontario. But this raises
such an important subject that we must consider it sepa-
The Prairie Provinces
Westward, or rather northwestward, hundreds of miles
across the rocky wilderness of the Pre-Cambrian shield,
begins the next region of unbroken settlement. This is by
far the most extensive in the country. It stretches across
the three Prairie Provinces of Manitoba, Saskatchewan,
and Alberta — commonly known as the Prairies.
Predominantly agricultural now, it was long a domain of
the Hudson's Bay Company, chartered in 1670 and still
doing business — now mostly department stores. Canada
acquired the territory in 1870 — her Louisiana Purchase. It
attracted few settlers until shortly before 1900, when it be-
gan to fill with a rush that soon became almost a stampede.
The population of this part of the Dominion is a great
mixture, having been drawn from the United States,
eastern Canada, the British Isles, and continental Europe.
It is Canada's melting pot. Over twenty foreign-language
newspapers are published in Winnipeg, the metropolis of
the Prairie Provinces. Yet it is astonishing to see how
rapidly the immigrants from continental Europe have been
By and large, the prairie people are the least provincial
in Canada. This is largely explained by their diverse
origin, their recent arrival, and their main economic inter-
est — the producton of wheat for sale abroad.
They are also less conservative. The cooperative move-
ment has been stronger in Canada than in the United
States, and in Canada it has been strongest on the prairie,
particularly in the marketing of grain. There also arose
the two radical political parties of the present day. One
is the Social Credit party, called the "Funny Money" party
by its opponents, which has governed Alberta since 1935.
The other is the socialist CCF (Cooperative Commonwealth
Federation), which captured the government of Saskatche-
wan in 1944 and has a considerable following in every
province of the Dominion west of Quebec.
The farther west you go on the prairie the more the
population spreads out to the north. Here is the chief
exception to the general rule that Canadians live close to
the American border. Here is the only large area where,
humanly speaking, the Dominion has breadth as well as
length, where you can travel several hundred miles north
through unbroken settlement.
In the West, settlement comes to an end as it runs up
against the Rockies. These are a formidable barrier — ■
more so than in our country. In Canada the mountainous
backbone of the continent becomes more rugged and com-
pressed, and the passes present more difficult engineering
problems for railway and highway construction.
The Pacific Province — British Columbia
The Rockies cut off British Columbia from the rest of the
Dominion. Though this province stretches from the state
of Washington up to and behind Alaska, most of its popu-
lation is crowded into the extreme southwest corner — in
and around Vancouver. This is the third largest city in
Canada, a rank it gained as recently as the census of 1931,
when it surpassed Winnipeg.
British Columbia developed later than any other prov-
ince or group of provinces. The reason was its geographi-
cal isolation before the opening of the Panama Canal. That
event made British Columbia — that and the immense re-
sources of fish, forest, and mine, which make it naturally
the richest of all the provinces except Ontario. It has
become one of the world's more important mining regions.
British Columbia differs from the Prairies in having a
much smaller proportion of continental Europeans and a
much larger one of old people. The genial climate of the
coast has made it what some bustling Canadians on the
prairie have called a "land of the tired and retired." It
has attracted retired and semi-retired people from all over
western Canada and even from the British Isles. Society
in this province, particularly Vancouver Island, has a dis-
tinct English flavor such as is not to be found anywhere
else in the Dominion.
North of the 60th parallel, the Yukon and Northwest
Territories and the islands stretching to the Arctic Ocean
form a vast area empty of inhabitants except Eskimos,
some Indians, and a few whites. It plays no vital role in
the life of present-day Canada, but it has rich natural re-
sources which have just begun to be exploited.
Beads on a steel thread
Now let us view the country as a whole, and we will see
that it is not a natural unit, nor even nine natural units
corresponding to the nine provinces. Geography has di-
vided it into four quite separate sections: the first compris-
ing the three little Maritime Provinces; the second the two
big provinces of Central Canada, Quebec and Ontario; the
third the three large Prairie Provinces; and the fourth the
single province of British Columbia.
Few countries in the world are so disjointed physically.
The inhabited portions of the Dominion, instead of forming
a compact block, are separated from each other and
stretched out from ocean to ocean. They are strung to-
gether like beads on the steel thread of the railways.
Railways, therefore, mean more to Canada than to any
other country. Indeed they were mostly built for a national
purpose, to hold and pull the country together. The Do-
minion has been created in defiance of geography. More-
over the geographical unity of Central Canada is cut in
two by fundamental differences of race, language, and re-
ligion. Thus there are not four but five very distinct
regions or sections.
The natural result is a strong tendency toward sectional-
ism, much more so than in the United States, and this
tendency is supported by the governmental structure. The
Old South is not so isolated geographically as are the Mari-
time Provinces or the Prairie Provinces. Nor in all the
Union is there any state that coincides with a sectional
area, as does each of the other three provinces, Quebec,
Ontario, and British Columbia. The inherent sectionalism
in the Dominion is one of the major problems of the
The problem has been complicated by us, quite uncon-
sciously. We could not help it. While geography has di-
vided Canada, it has linked each of the inhabited sections
with the adjoining portion of the United States. As a con-
sequence, our country has exercised a strong pull upon each
of these parts of our northern neighbor.
It was to resist this pull that the Dominion was formed
in 18G7, that it acquired the West out to the Rockies in
1870 and British Columbia in 1871. Here is a rather inter-
esting paradox : The very force that might have swallowed
up British North America piecemeal saved it by making
it draw together to form a nation. The result is that Can-
ada has more national unity than the above account of
physical disunity may suggest.
IS THERE A DEEP SPLIT BETWEEN
FRENCH AND ENGLISH CANADA?
Canada's conscious and successful striving after unity
should be borne in mind as we examine another great and
permanent problem of the country: preserving and encour-
aging harmonious relations between French Canada and
English Canada. In this connection "English" Canada
means all the population, whether of British or other origin,
that speaks English.
Though it is focused in Quebec and Ontario, the problem
is Dominion-wide. A considerable minority in Quebec,
nearly 20 percent of the 3.3 million in that province, are
English Canadians. French Canadians form considerable
minorities in every other province except British Columbia.
French is the native tongue of three out of every ten
Many Americans wonder why the French in Canada
have not been assimilated — swallowed up in the English
majority. But assimilation was out of the question. The
French did not go to Canada to be Anglicized. They went
there to live as French men under the French flag. The
history of Canada as a French colony is almost as long as
that of the United States as a republic.
After the British conquest of this French colony in 1760,
a quarter of a century elapsed before any real English-
speaking population settled on the soil of old Canada (Que-
bec and Ontario). And three-quarters of a century passed
before the English-speaking population was as numerous
as the French. There was little assimilation, and that little
was mostly of English-speaking people by the French.
There was no lack of attempts at assimilation the other
way round, but they defeated their own end. The attempts
promoted bitter racial strife, and only hardened the deter-
mination of the French to retain their separate identity.
The strife did not end until the middle of the nineteenth
century. What stopped it was the establishment of colonial
self-government on a basis of equality for French and Eng-
lish. That was an object lesson for all time to come.
How deep is the division?
Canada is like a double-yolked egg. French Canada and
English Canada each form, as it were, a nation within a
nation. The Dominion is a country with a dual nationality.
Double nationality is very foreign to American ways of
mosf Canadians live within
300 m>fei of the U. S border
BRITISH ISLES 49.68
English 25.80, Scotch 12.20, Irish 11.02, Others .66
OTHER EUROPEAN 1 7.76
German 4.04, Ukrainian 2.66, Scandinavian 2.13, Netherlands 1.85,
Jewish 1.48, Polish 1.45, Italian .98, Russian 73, Hungarian .47, Others 1.97
INDIAN, ESKIMO, NEGRO, OTHERS 1.65
OCCUPATIONS OF CANADIANS OVER 14
logging, Trapping &
Mining & Quarrying 71,886
Manufacturing 703, 162
Finance & Industry 31,392
Not stated 11,413
■n Armed Forces on December 3», 1944 759,879
casualties to May 31, 1945 102,954
thinking, but it has to be recognized before one can begin
to understand Canada. There are few countries in the
world — and not another in this hemisphere — where such
complete duality prevails. It dominates Canadian politics,
for almost every public question must be viewed with a
French eye and an English eye, or it will be seen out of
Canada's dual nationality is published on every postage
stamp and on the paper currency issued by the Dominion
government, for they are printed in both French and Eng-
lish. It is echoed in the Supreme Court of Canada and in
the houses of Parliament, where, according to the constitu-
tion, French stands on a par with English as an official
language. Every motion in Parliament has to be put in
both French and English, members may deliver their
speeches in either tongue, and all federal publications — the
Dominion laws, the debates in Parliament, and government
reports — appear in two editions, one French and the other
Both languages are official in the province of Quebec, too,
but not in any other province — and naturally the French
do not like this. They insist that they should have in the
other provinces the same rights as English Canadians have
The difference in nationality, moreover, has endowed re-
ligion with special rights unknown in our country, for the
French Canadians are solidly Roman Catholic. In the middle
of the 1800 's, when a public-school system was estab-
lished in old Canada, the English-speaking Protestant
minority in Canada East, formerly Lower Canada and now
Quebec, insisted on having their own separate system of
tax-supported schools. Otherwise they would have had to
send their children to French Roman Catholic schools, a
prospect that seemed intolerable to them.
The French Canadians granted the demand, but at a
price. This was that the Roman Catholic minority in Can-
ada West, now Ontario, should have the same privilege.
This bargain was written into the constitution when the
Dominion was formed a few years later.
In Quebec, also, the Roman Catholic church is supported
by a tax called the tithe. The law by which this tax is
levied was continued from the French regime with an
amendment exempting Protestants from having to pay
tithes to the Roman Catholic church.
Why the trouble over conscription?
The most serious difficulty that has arisen between English
Canada and French Canada in our own day has been over
conscription. It flared up in World War I and again in
World War II.
Voluntary military service is an old British tradition.
Britain did not abandon it until 1916, in the midst of
World War I, and Canada was the only British dominion to
follow suit. That was because casualties in the Canadian
army in 1917 were greater than the voluntary system could
Voluntary recruiting in French Canada had not kept
pace with recruiting in English Canada for a number of
reasons. The French were naturally more isolationist be-
cause they had lived in Canada for many more generations.
Practically every French Canadian had to go back nearly
two centuries and a half to find an ancestor who lived on the
other side of the Atlantic. Another reason for their isola-
tionism was their non-British origin. It inclined them to
see the war as a British war in which Canada had no busi-
ness to be fighting. Moreover they married younger and had
larger families, so that a smaller percentage of their young
men were free of the ties of wife and children. Their re-
ligion also held them back because of two peculiar circum-
stances of the time, one in France and the other in Ottawa.
In France the government of the Third Republic had
turned on the church and driven out many of the antirepub-
lican clergy. Some of these exiles found a refuge in Canada.
From them and from their own priests as well, the French
Canadians had been hearing bitter denunciations of the
French government. Therefore when Germany invaded
France in 1914, French Canada was disposed to regard the
attack as a judgment of God upon what was to them the
wicked and irreligious republic.
The other peculiar circumstance was that the Canadian
minister of militia, the cabinet member responsible for rais-
ing and training the Canadian army in 1914, was the out-
standing Orangeman in the country. This means much to
Canadians but little to Americans, few of whom have ever
heard of the Orange Order.
This secret order arose in Ulster, now Northern Ireland,
where it stood for Protestant supremacy and is still a great
power. More than a century ago it entered Canada, and
there it throve mightily on the anti-Catholic and anti-
French prejudices that have been so marked in Ontario.
It was nothing short of tragic that a well-known Orange-
man held such a key position during the war.
The opening chasm
English Canada did not understand the situation in French
Canada and impatiently cried out for conscription in order
to draft the French. There was a general election on the
issue. English Canada imposed its will on French Canada —
contrary to assurances given when the Dominion was
formed that the French Canadians could trust the English-
speaking and Protestant majority never to run a steam
roller over them.
The French Canadians were crushed. They had horrid
visions of being crushed again in the dark, uncertain future.
'■ '- ;
Conscription came to have a strange and terrible meaning
for them. It implied the ultimate loss of the liberty they
cherished above all else: the liberty to be themselves.
The French Canadians received such a jolt that in later
years, even after World War II began, both major political
parties pledged themselves, as the only way to win votes
in Quebec, never to conscript men for overseas service.
At the time France fell in 1940, the Canadian govern-
ment rushed through Parliament, with almost no opposition,
a law giving the government nearly unlimited power over
persons and property. Compulsory military training was
then adopted, but the Prime Minister said he would not
abandon the voluntary system for service overseas. The
Canadian expeditionary army was built entirely of volun-
Still the French Canadians were nervous, and their fears
were roused by English Canadians who began to raise the
old cry again. Some of them did it honestly, some in order
to bait French Canada and embarrass the government. To
clear the air, a national plebiscite was held in the spring of
1942, when the people were asked if they would release the
government from its pledge. English Canada voted "Yes,"
French Canada "No."
The result was more tension, which the government re-
lieved by getting Parliament to legalize the draft for over-
seas and promising not to apply it until absolutely neces-
sary. It was not necessary until the autumn of 1944, when
the Canadian army battering its way into Germany had
suffered heavy casualties. The government then extended
the draft from home to foreign service.
Meanwhile hot words flew back and forth between the
two peoples of the country. English-speaking Canadians
attacked the government for coddling Quebec. But the dual
nationality of Canada makes it a hard country to govern,
particularly in wartime.
HOW DOES CANADA GOVERN ITSELF—
OR DOES BRITAIN DO IT?
The British constitution and the American Constitu-
tion, which are very different, are blended in Canada. Like
the United States, Canada has a federal form of govern-
ment. It was copied from the American example, with vari-
ations inspired by American experience and Canadian needs.
The division of authority between the Canadian Parlia-
ment and the provincial legislatures is much the same as
that between Congress and the state legislatures. But in-
stead of leaving the provinces all the power that was not
specifically conferred upon the Dominion, in accordance
with the American principle, the Canadians adopted the
opposite principle. They gave the residue of authority to
the federal government. This seemed to be the great lesson
taught by our war between the North and the South, dur-
ing which the framers of the Canadian constitution did most
of their work. Thus the Canadian constitution bears the
indelible stamp of the American Civil War. In practice,
however, the provinces have gained in power through ju-
dicial interpretation of the constitution.
Another difference is that no province can legislate on
banking or criminal law. These are subjects wholly within
the federal field. The criminal law is therefore uniform
throughout the country, and so is the banking system.
Our duplicate system of courts, federal and state, was
also rejected in Canada. There the same courts, with per-
manently appointed judges, administer both federal and
provincial law. Yet another difference is that the consti-
tution bound the federal government to subsidize the pro-
Canada resembles the United Slates rather than Britain
in having a written constitution. This is the British North
America Act (commonly referred to as the BNA Act) of
1867 and its amendments. But if you take it literally it
will give you very false notions of how the country is actu-
ally governed, as we shall see presently. The reason is that
Canada also has an unwritten constitution — like the British
— and this governs the operation of the written one.
The most vital part of the Canadian system of govern-
ment is wholly British and totally un-American. It is the
fusion of the executive and the legislative branches of gov-
ernment in the cabinet, which is chosen from the leaders
of the majority party in the Parliament at Ottawa. When
the Canadians formed their federal union in 1867, they
already had this British system in the provinces. They were
so convinced by experience and observation that it was
better than the American, with its separation of powers
and its checks and balances, that they would not consider
The real bosn
Americans are sometimes misled by the fact that govern-
ment in Canada is conducted in the name of the king. By
the letter of the BNA Act, the king rules Canada through
the governor general, whom he appoints. In turn, the gov-
ernor general supposedly rules the provinces through lieu-
tenant governors, whom he appoints. But in reality the
Dominion government chooses the governor general and
the lieutenant governors — who, like the king himself, are
The real head of the federal government, legislative as
well as executive, is the prime minister, in whom all power
is concentrated and all responsibility focused. He does not
run for election to this high position, nor does he hold it
for any fixed period. Moreover there is no law defining it.
The requirements are political rather than legal. The
prime minister must be a member of the House of Com-
mons and, more than that, he has to be the leader of the
majority party in the House. If he fills the bill, the governor
general has no other choice than to appoint him. As prime
minister, or real head of the executive, he picks and controls
the cabinet. These heads of the various executive depart-
ments he selects from his own followers in the House, where
he and they remain. There they are answerable to the other
members for any and every administrative act.
With the help of his cabinet, the prime minister leads
the debates in the Mouse and directs the legislative pro-
gram. The Senate, unlike ours, is not elected but appointed,
has no special powers, and is politically, though not legally,
subordinate to the House of Commons. Thus the prime
minister runs Parliament as well as the administration.
And he can continue in power indefinitely — as long as he
remains the acknowledged leader of the House of Commons.
But the moment he loses this leadership he has to resign,
unless by calling an election he can get a new House that
will follow him.
Here is the internal balance of the Canadian constitution,
which is quite different from the balance in ours. On the
one hand, the members of the House of Commons can turn
the prime minister out of office at any time, which enforces
his responsibility to them and through them to the people.
On the other hand, he can turn the House out to face an
election at any time, which gives him a disciplinary control
over irresponsible members. As soon as a deadlock appears,
it forces a general election, thus ending the deadlock by an
appeal to the people.
There is no fixed period for general elections, either fed-
eral or provincial. One can be held at any time the govern-
ment wishes. Hut there is a limit of five years to the life
of the Canadian federal Parliament and the provincial
Loosening the reins of empire
Canada got independence without having to fight for it.
The American Revolution taught Britain never to tax a
colony again. But it also persuaded the British that they
should not let the remaining colonies get out of hand or
they would break away too. This meant trying to hold them
by controlling their governments, and the result was a grow-
ing strain in each colony. A little over a century ago two
miniature rebellions in Canada startled London into sending
out a leading statesman to find what was wrong and how
to put it right.
This man was Lord Durham, whose report is a milestone
in the history of Canada and of the whole British Empire.
He insisted that the only way to keep the colonies was to
let them govern themselves as they wished. The magic
power of liberty, he proclaimed, would hold the colonial
empire together. Soon the British government put his
formula to the test, and at once it began to work. That was
almost a hundred years ago.
Though mistress in its own house, Canada was a sub-
ordinate partner in the Empire. The British government
had the legal right to veto any act of the Canadian Parlia-
ment, a right that was used once in the early days of the
Dominion and never again. Canadian legislation was liable
to be overridden by acts of the British Parliament and
could not touch the subject of merchant shipping, which
Britain regulated for the whole Empire. Canadian foreign
relations had to be conducted, at least formally, through the
channel of the British Foreign Office. And Canada was
bound by the actions of Britain in declaring war and mak-
These remains of imperial control were all removed after
World War I, in which Canada played an important part
and earned the right to equality. Along with the other self-
governing dominions, Canada got the right to have its own
diplomatic service, inaugurated in 1927 by exchanging
ministers with the United States, and later extended by
exchanges with many other countries. In the imperial
conference of 1926, the following important declaration
was unanimously adopted: "The group of self-governing
communities composed of Great Britain and the Domin-
ions . . . are autonomous communities within the
Empire, equal in status, in no way subordinate one to an-
other." After much further consultation between the gov-
ernments of the Empire, this principle was translated into
law by the Statute of Westminster, which the British
Parliament passed in 1931.
The last remnants of subordination
Only two limitations upon full Canadian autonomy remain,
and these only by Canadian consent. One is in the admin-
istration of justice. The highest court of appeal is the
Privy Council in London. Canada has stopped all criminal
appeals to the Privy Council, and some civil appeals. In
all probability Canada will stop the others too when a good
solution is found for the problem raised by the second
The second limitation is that for important amendments
of the written part of the constitution Canada has to go to
the British Parliament. This may seem strange in light
of the fact that the other dominions can amend their con-
stitutions themselves. The explanation lies in Canada's
dual nationality. A formula has yet to be found that would
protect the rights of French Canada, the minority, without
making amendment too difficult to be practical. Some of
the best minds in Canada have been working hard on this
problem, and they may soon solve it.
We should also notice another question that worried many
Canadians during the years between the two World Wars.
They argued that as long as the Dominion retained the
British connection the country might be plunged into war
by a decision of the mother country over which Canada had
no control — as in 1914.
This question, upon which the Statute of Westminster
was silent, was finally answered in 1939. When Britain
then went to war, Eire declared its neutrality, South Africa
wavered on the brink before plunging in, and Canada as-
serted its independence in this most important decision of
all by making its own declaration of war.
Even today many otherwise well-informed Americans
cannot quite grasp the fact that Britain no longer exercises
any control over Canadian policy. Canadians are more
than a little sensitive on this point. There is much truth
in the shrewd Canadian jest that the only way Britain might
persuade Canada to do anything is to suggest the opposite.
What about imperial teamicork?
Occasional talk that Canada might combine with the other
parts of the British Commonwealth of Nations so that all
might speak with one voice in international affairs need not
be taken seriously. The idea of drawing the Empire together
again is an old one that still finds many supporters in Brit-
ain and some in Canada. But it is now further from realiz-
ation than it has been in the past. If there were no ob-
stacles in other parts of the British world — and there are
many — Canada alone would block it. On occasion Canada
has vigorously asserted its freedom from the mother coun-
try's apron strings.
Look at the peculiar position of Canada and you will see
why. This oldest and biggest of the dominions is the only
one that is bound up with any power outside the Empire.
And Canada is in the shadow of one of the greatest powers
Primarily because Canada is American as well as British,
Canadians have steadily and successfully resisted pressure
•: • li*
1 1 A ■
— b.. $t *»
; . .,•*;
For many years the Canadian govern men! has owned and operated
sach nation-wide serviced as railways, telegraph systems, and airlines.'
Canadian National Railways
Government owns and runs one of the two telegraph systems.
CANADIAN -U. S. JOINT DEFENSE
Several joini ronuuiUctw wen* m*i up io sirriigilirn miiiim! flt*f«-nsr.
MohI iiupni i. mi is llir IVrmnnriil Juiul OrlVnsr ICoiinl.
iMrmlii-rs of llii' iliiiiiiiliiiii— II. S. I Vrmniinil Joint Ili'f«*us4* ltn;ir<l
The Aljiska mililiiry liighwuv
I 1 . S. Immlx-rs :il :i ( '.ut.nl iiin Iki*<
from Britain and from other dominions to establish in Lon-
don any new Empire government in which they would all
share. Because Canada is American as well as British, it
felt — long before President Roosevelt said so in 1938 — that
the Monroe Doctrine gave a security to match that of the
British navy. Every peacetime proposal for cooperative
imperial defense, therefore, foundered in Canada.
Also, Canada's economic life is much too closely knit
with that of the United States to be torn away and tied up
tight in an imperial customs union. The nearest Canada
ever came to that was in the Ottawa agreements of 1932.
But that was when our Smoot-Hawley tariff had dealt Can-
ada a staggering blow. And see what happened afterward.
When Canadians found that we too were willing to nego-
tiate for freer trade, they eagerly sought an agreement
with us. They even went to London to pry open the im-
perial agreements of 1932 so that the Dominion might get
still freer trade with us as part of an arrangement for freer
HOW DO THE UNITED STATES AND
CANADA GET ALONG?
Canada is really more tied to the United States than to
Britain. She may be the daughter of Britain, but she is
married to the United States — without any chance of
A most revealing incident occurred in 1921, when the
British government was about to renew its expiring treaty
of alliance with Japan. American relations with Japan at
that time were so strained that they suggested the possi-
bility of war. Renewal of the treaty would have poisoned
Anglo-American relations, which weren't too cordial then
The prospect was intolerable to Canada. Rather than be
dragged into a position of hostility toward its powerful
neighbor, best friend, and closest relative, Canada would,
if necessary, break with Britain. So the Canadian prime
minister spoke quietly but plainly to the British govern-
ment. His veto was effective. The offending alliance was
The International Joint Commission
Perhaps the most remarkable illustration of the intimacy
of the relations between Canada and the United States is
the International Joint Commission. It exercises a surpris-
ing amount of authority over the common interests of the
two countries along the international boundary.
More than half of the nearly 4,000-mile line runs through
waterways, and by the ordinary rides of international law
each country has absolute control of all its waters right up
to the line separating them. This means that each could
use its own boundary waters without regard for the? effect
on the other side. Here was a situation that clearly called
for friendly coo|>eration and joint control on a permanent
basis. Arrangements for this were made by the Boundary
Waters Treaty of 1900, which laid down a new code of
international law to govern these boundary waters and set
up the International Joint Commission to administer it.
The new code prohibited the pollution of boundary
waters. It established a priority of uses, so that there
would be no diversion of water on one side that would in-
terfere with a diversion for a more important purpose on
the other side. The treaty required that consent of the
commission be obtained for any interference with the natu-
ral flow of waters that would change the level across the
boundary. It also specified the maximum diversion from
the Niagara and other rivers.
The commission is an international court composed of
three permanent members from each country. It holds its
sessions in either country wherever it is most convenient
for all the parties concerned. In addition to administering
the new code, the commission is empowered to investigate
any international question arising along the common fron-
tier and submitted by the two governments.
One interesting example of the multitude of difficulties
that it has settled occurred in the 1930's. A giant smelter
at Trail, British Columbia, close to the border, gave off
fumes that blighted vegetation. American farmers within
a radius of many miles claimed that these fumes ruined or
at least injured their crops. The case was referred to the
commission, which, after many sessions and much legal and
scientific argument, found the extent of the damage, what
should be paid for it, and what should be done to check it.
The most important part of the commission's work is to
regulate conditions so that disputes will not arise. This is
one reason why few citizens of either country, except those
immediately concerned, have even heard of its existence.
Another reason is that though it is composed of an equal
number of Canadian and American members it has never
divided nationally on any question and has almost always
reached its conclusions unanimously.
Other examples of cooperation
World War II entwined the interests of the two countries
still further, and gave rise to new joint bodies to coordinate
them. One was the Permanent Joint Defense Board al-
ready mentioned. Another was the Material Coordinating
Committee to supervise the movement of raw materials
and the distribution of supplies and electric power. An-
other was the Joint War Production Committee to dovetail
the war production of Canada and the United States so
that it would reach a combined maximum. To this end
there was a virtual pooling of the raw materials of the con-
tinent and a mutual suspension of tariffs on defense
More interesting may have been the work of the Joint
Economic Committees. Meeting together, they surveyed
the resources of both countries as a whole and examined
possibilities for more effective cooperation in the use and
development of those resources. The Joint Economic Com-
mittees were dissolved in March 1944, but work of the
more practical Joint War Production Board and Material
Coordinating Committee continued through the end of
the war with Japan, and the latter body was to last in-
definitely. Three other important joint groups were
formed by Canada, Great Britain, and the United States —
the Combined Production and Resources Board, the Com-
bined Raw Materials Board, and the Combined Food
Board. After the end of the war against Japan, the three
governments decided to continue these for the time being
to help meet immediate postwar problems.
Does Canada want annexation?
Many Americans have been fooled into imagining that
Canada would like to join the United States. The intimacy
and the similarity between these two neighboring nations
have suggested it, and Canadians themselves have fostered
the illusion by the way they have talked from time to time.
It is true that there are some English-speaking Canadians
who favor annexation. There always have been some and
there probably will continue to be. Canadians have dis-
cussed it for generations. In the 1830\s the English-speak-
ing minority in Lower Canada (Quebec) openly said they
would rather have annexation ihan allow the French ma-
jority to rule.
In 1 S4 * > a group of disgruntled English-speaking mer-
chants and politicians of Montreal published a manifesto
calling for annexation. Their agitation soon fizzled out.
That was the highest point the annexation movement ever
In the late 1860's it flared up in Nova Scotia, where many
people thought their province had got a raw deal in the
formation of the Dominion. About the same time it ap-
peared in British Columbia.
Annexalionism has usually been the expression of sec-
tional discontent — a stick to shake at the rest of the country.
People in the Prairie Provinces have often talked annex-
ation out of resentment against federal policies dictated by
Central Canada. But whenever the movement has raised
its head enough to attract much attention, it has inspired
a stronger countermovement to suppress it.
The idea of annexation has never taken hold in French
Canada. It has always frightened that part of the country,
and for obvious reasons. The Canadian constitution guar-
antees the French certain rights for their language and
their religion. Special protection for these things most
precious to them would disappear under the American Con-
stitution. Numerically, also, their position as a minority is
many times stronger in the Dominion than it would be in
the United States.
Why they stand aloof
Some Americans have been unable to understand why
English Canada has always shied away from annexation.
There is more than blind prejudice in the Canadian reaction.
Something deeper, something more spiritual is involved. Be-
cause it is a thing of the spirit it is difficult, if not impos-
sible, to define or explain.
Two persons may look alike and yet be different in spirit.
So it is with these neighboring nations. There is much in
the Canadian spirit that is American, but there is also
much that is not. This is partly the product of the British
tradition, which is a powerful factor. As Canadians resent
outsiders' criticism of the United States, so also do they
resent American criticism of Britain.
There is in Canada a certain anti-American prejudice
that corresponds to, and is stimulated by, the anti-British
prejudice in the United States. Yet there is also a strain
of anti-British feeling in the Dominion. It crops out occa-
sionally here and there in English Canada, but without be-
ing annexationist. And it is most pronounced in French
Canada, where annexationists have never been able to make
any headway. Obviously there is something much more
than British tradition behind the Canadian spirit, just as
there is something more than the anti-British tradition in
the composition of the American spirit.
Whatever the other causes may be, the fact of the matter
is that there exists a distinct quality of life in Canada of
which Canadians are more or less conscious and which dis-
cerning Americans and Englishmen sometimes perceive.
The Canadians would no more like to lose it than we would
like to lose our own national spirit.
If any American wants to annex Canada to the United
States, he should never suggest it to a Canadian. The
Canadian's reaction is apt to be the same as the American's
would be if some Britisher suggested that the United States
be reannexed to the British Empire. Canadians love their
country no less than we love ours.
WHAT KIND OF ECONOMY DOES
In THESE days when we have heard so much debate about
private enterprise, it is interesting to observe that Cana-
dians have gone in for public enterprise much more than
When the Dominion was first formed, the federal gov-
ernment undertook to build and operate a railway that
would unite the Maritime Provinces with Central Canada.
As a business proposition it did not pay, it could not pay,
and it was never intended to pay. It was a great public
work to draw the country together.
Similarly when the Dominion acquired the country west
of the Great Lakes out to the Pacific, the federal govern-
ment undertook to provide a railwaiy that would tie the
West to the East — the Canadian Pacific Railway. It too
was started as a government concern, and though later
turned over to a private corporation, it had to be heavily
subsidized by the government. Otherwise private capital
would not touch it.
In both these early ventures the Canadian people and
their government were giving bold recognition to the fact
that the profit motive was not sufficient to meet the needs
of the nation.
Today there are only two railway systems in the country,
both operating from the Atlantic to the Pacific. One is the
privately owned Canadian Pacific (17,058 miles). The
other is the Canadian National (22,586 miles), which is
owned and operated by the federal government.
You may have heard this railway cited as convincing
proof that public ownership does not pay. But one can just
as truthfully argue that it proves the failure of private
enterprise. Most of it. the rest being what the federal gov-
ernment had built and operated, is made up of the wrecks
of private undertakings: railways that had become heavily
mortgaged to the government and then had gone broke.
Not from choice but out of necessity — national necessity —
the government undertook this enormous extension of public
Moreover, the Canadian government owns and operates
one of the two telegraph systems of the country, one of the
two big hotel chains, and a fleet of steamships. They were
all taken over when the railways were nationalized — for
Canada, in contrast to the United States, has not believed
in divorcing these lines of business.
They seem to like it
Public ownership and operation of other utilities is also
common in Canada. The "Hydro" Commission of the On-
tario government has long supplied at cost most of the
power consumed in the province. Its success stimulated the
development of provincial and municipal power systems
throughout the country, particularly in the West. In that
part of the country the telephone systems have also been
commonly public enterprises from the time they were first
installed. The same has been true of municipal transporta-
Perhaps stranger still to us is what happened when pro-
hibition was repealed in Canada — a decade before we re-
pealed it, because in Canada the constitution was not in-
volved. The Canadians refused to restore the old private
liquor traffic. Instead, each of the provinces established a
public monopoly, with conveniently located government
stores selling liquor only in containers for consumption ofl"
the premises. Unlike most other government businesses in
Canada, which have been operated to serve the public at
cost, this one has been run for profit — and the profits have
been very large.
During the 1930's the Dominion government entered two
other fields which we Americans also usually regard as
within the proper domain of private enterprise: radio and
The Canadian Broadcasting Corporation (CBC) of the
federal government owns and operates the only national
chain of stations in the country. There are still 100 private
stations ; but these are supervised by CBC, and their total
power is scarcely more than a quarter that of CBC sta-
tions. There are also private airlines in Canada, but the
only national system, operating from Atlantic to Pacific,
is the federal government's Trans-Canada Airlines.
The motive behind these latest government enterprises
was the same as that which had prompted the federal gov-
ernment to build railways. National unity had to be pro-
moted in the face of the sectional pull exerted by our coun-
try. Canadians believe the result has justified the effort.
Our major political parties may differ somewhat on the
issue of government versus private enterprise, but the
corresponding parties in Canada do not. The Conservatives
have been just as responsible as the Liberals for all this
development. As a rule, Canadian public enterprises in the
economic field are kept out of politics.
What did World War I do to Canada?
The depression taught the United States, rather painfully,
how much our economic welfare is bound up with that of
the rest of the world. But Canada is three or four times
more dependent upon foreign trade than we are. It can-
not help itself. Nature is responsible for the situation.
During the opening years of this century, the main-
spring of Canadian prosperity was the rapid development
of the Prairie Provinces. People were rushing in to build
a whole new society on a foundation of wheat. It was a
fat land, best suited to the production of this king of all
Industrial Europe was willing to pay a profitable price
for all that the Canadian prairie could supply. Wheat
poured out of the West and across the Atlantic. The Do-
minion became one of the world's chief exporters of wheat.
When World War I jumped the prices of food fast and
far, the Canadian West almost doubled its wheat acreage
and increased its livestock by a third. War demands
caused an unprecedented exploitation of the country's for-
est and mineral resources also — in British Columbia, in
northern Ontario and Quebec, and in the M&ritimeg. Yet
of all the extractive industries, agriculture still supplied
the great bulk of Canadian exports.
Another industry, however, was catching up and at the
end of the war accounted for more exports than agricul-
ture. It was manufacturing. World War I made the Do-
minion one of the leading manufacturing countries in the
world and transferred to Canadian ownership much of the
foreign capital invested in the country.
World War I had yet another important effect. Up to
this time the external economic relations of Canada had
been chiefly with Britain. Thenceforth they were with the
United States. We got more than half the Canadian trade,
and New York replaced London as the money market in
which Canada was most interested. It was then that
American investments in Canada l>egan to be heavy.
Belirren the wars
The l!)2()'s saw further important changes in the national
economy of Canada. British Columbia became a gnal
exporter of lumber. Much more important was the gigan-
tic expansion of its pulp and paper industry to meet the
demands of the Orient as well as of the United States.
Greater still was the development of mining and smelting
in that part of the Dominion. The immense power required
by these new industries was got by harnessing the tumbling
rivers to provide electricity.
The same kind of development, only much more of it,
took place in northern Ontario and Quebec — on the Pre-
Cambrian shield. This development was highly important
to the prosj>erity of Central Canada, which then became
more industrialized that ever. It supplied these provinces
with a new mainspring to replace the old one that was
pretty well worn out — the expansion on the prairie. The
products of the new North were almost all exported, and
AGRICULTURE $742,020,(3007- .".$ 1,691,540,000
FORESTRY 244,564,571 429,079,260
TRAPPING 6,572,824 23,801,213
FISHERIES 35,593,009 64,821,702
ELECTRIC POWER... 142,320,725 200,345,240
MINING 374,415,674 514,109,951
MANUFACTURES. . . . 1,428,286,778 3,309,973,758
CONSTRUCTION 176,661,077 310,917,190
CUSTOM & REPAIR.... 99,086,100 139,349,000
TOTAL $2,974,673,454.... $6,258,464,61 3
* Includes sawmills, pulp and paper mills, etc., which are included in the
other headings above. This duplication amounts to $274,847,304 in 1938
and $425,472,701 in 1942 and is eliminated from the grand total.
most of the income they brought back was spent in the
protected domestic market.
The new pulp and paper plants, smelters, and hydroelec-
tric developments required huge capital expenditures.
Where did the money come from? Some from the United
States, but relatively little. Most came from Canadian
savings. The ownership of the country's wealth was more
than ever concentrated in Central Canada, and there chiefly
in Montreal and Toronto.
Centralized financial control did not mean a greater uni-
fication of the economic life of the Dominion, however.
When the prairie was the one great area producing for ex-
port and the market was across the Atlantic, the main
movement of the country's trade was transcontinental. It
bound eastern and western Canada together. Now there
were two new important export areas. Their trade flowed
north and south, for their principal market was in thr
United States. So the new movement of trade made for
regional independence instead of the interdependence that
the old movement had promoted.
In one fundamental respect the Canadian economy was
still the same. Though the country had added two baskets
(pulp and paper, and metals) to its one (wheat), all three
baskets still had to go to market outside the country.
Canada could not escape from its vital dependence on for-
eign trade, and in a way this dependence was greater than
before. It was extended beyond the prairie, where the
alternative was wheat or subsistence farming, to other big
regions, where the alternative was worse. There it was
lumber or nothing, pulp and paper or nothing, nonferrous
metals or nothing.
The depression which began in 1929 hit Canada much
harder than the United States, for the prosperity of Can-
ada was much more tied up with international trade. The
provinces that suffered most were the Prairies, for the col-
lapse of the grain market shattered the foundations of
their economic life. A great readjustment then began, at
first slowly and then more rapidly. It was a shift from
wheat to mixed farming. The result was that western
Canadian farmers got a lower income than before. But
they were also less dependent on world conditions.
What now and in future?
By the time World War II broke, Canada, like our country,
had pretty well recovered from the depression. As the first
war changed us from a debtor to a creditor nation, so the
second World War changed Canada into one of the three or
four creditor countries of the world. Once again the prairie
prospered greatly. This time, however, barely a third of
its total production was wheat. Feed grains took its place,
for there was a great swing to livestock (beef and pork),
dairying, and poultry.
As before, however, most of the production was for ex-
port. This of course revived the problem of markets at the
end of the war, for Canada cannot begin to consume the
food that its West is capable of producing.
This is equally true of other main lines of production.
The war caused an enormous expansion that put Canada in
top position among the nations of the world in production
of nickel, newsprint, asbestos, platinum, and radium; sec-
ond in gold, aluminum, wood pulp, hydroelectric power, and
the building of cargo ships; third in copper, lead, and zinc;
and fourth in the production of war supplies for the United
Nations — that is, in manufacturing.
Most of us have little idea of the huge size of some of
these Canadian industries. Take newsprint, for example.
Canada has a mill capacity four times that of any other
country. It is equal to the combined capacities of the
United States, Britain, Norway, Sweden, and Finland.
Canada can use only a small percentage of the newsprint
m « -■
# ,v- ■
s^-s^^p*^ sir ■ ■
P&j /:';: '.;V -\, f
(5 k "V v_ '■'., Sfjj *
*■ . ■'■■,-•. ■ '.'■*%&
. • '>-\ v •■'<* • ■• •• •■■■tr
netting a imi*kellinigc
>kiiu° in hilK Quebec
Deer hunting in ihe Georgian Bar district of Oulario
turned out by its mills. We produce no comparable sur-
plus, not even of cotton. And newsprint is only one of
many surpluses that Canada must export if it is to main-
tain its standard of living.
All this means that Canada is very much more interested
than we are in getting the freest possible international
trade in peacetime. We talk of that as something desirable,
but Canadians see it as a necessity.
WHAT WAS CANADA'S ROLE BV
WORLD WAR 11?
Canada, of its own free will, entered the war in September
1939 because it then realized that Nazi Germany threat-
ened the very existence of Western civilization.
Almost from the beginning Canadians were in the thick
of the fighting — in the air. In that element the Dominion
made its most striking contribution to the general war
effort. On the outbreak of hostilities, the British Common-
wealth Air Training Plan was established in Canada to
develop the air forces of Britain, Australia, and New Zea-
land, as well as of Canada. It was under the direction of
the Royal Canadian Air Force, and it cost the Canadian
government well over 1.5 billion dollars.
Here it may be well to note that Canada's population is
only about one-eleventh that of our country. We have to
multiply Canadian figures by eleven, therefore, to get the
approximate American equivalent of Canada's war effort.
By 1944, the Royal Canadian Air Force had a strength
of more than 200,000. This was only a part of what Can-
ada did in this line, for at the same time nearly half the
ground crew personnel and more than a quarter of the air
crew strength of the Royal Air Force were also Canadians.
The Royal Canadian Navy, which started from scratch in
1939, grew to 700 ships and 95,000 men. This force too
was in the tight from almost the beginning. It partici-
pated in the daring rescue at Dunkirk, and it took over
more and more of the Allied convoy work across the north
Atlantic — half of it by 1943 and most of it by the end of
The Canadian army numbered in 1944 about half a mil-
lion men, five-sixths of whom had volunteered for overseas
service. Some of it formed most of the force that suffered
disaster at Dieppe in the summer of 1942. Some fought
alongside Americans and British in Sicily and Italy. But
the main military effort of the Canadians began in June
1944 with the landing on the beaches of Normandy, and
continued with the fight across France and into Germany.
Canadian units were out in Hong Kong when the Japs
attacked it on Pearl Harbor Day, and the Canadian declara-
tion of war against Japan was made the evening before our
declaration. A battalion of Canadian troops took part in
the landing on Kiska in the Aleutian Islands.
Canada did not receive a cent of lend-lease aid from
us. Instead of receiving, she supplied it to the United
Nations. The total at the end of 1944 was some 4 billion
dollars, which is more dollars per capita than our lend-
lease contribution. On the economic side, the war placed
a more severe strain on Canadians than on us. The aver-
age Canadian citizen paid more taxes and, on the whole,
was subject to more rigid controls. He knows what the
war cost and, let us be frank, he knew it longer than we did.
Canada's place in the world is much bigger than it ever
was before. Though not a great power, Canada is no
longer a small one. It is one of the middle powers — per-
haps the strongest of them — and as such is bound to play
an important part in the affairs of the world.
In the organization of UNRRA, the "world community
chesi," Canada has stood next to the United States and
the United Kingdom.
The Bretton Woods Agreement on international mone-
tary stabilization embodies much of the plan submitted by
Canadians played a leading role in the Chicago confer-
ence on international civil aviation; and the conference
selected Canada as the seat of the interim organization,
which is to prepare the way for the new world organiza-
tion that will regulate civil aviation.
Canada also left its stamp upon the work of the San
Francisco Conference, particularly the constitution of the
Economic and Social Council. The General Assembly of the
United Nations Organization early in 1946 elected Canada
a member of the Economic and Social Council.
TO THE DISCUSSION LEADER
World history probably offers no example of closer
friendly relations between two nations than those of Can-
ada and the United States. This development of cordial
relations has been under way for more than a century and
a quarter. It has been no accident. It is the result of
methods used by Canadians and Americans to face and
solve their mutual problems.
This pamphlet turns the spotlight on our oldest good
neighbor. Discussion leaders have in Canada a subject
that will interest nearly any group of Americans. During
World War II. Canadians and Americans fought the same
enemies, provided vital supplies for mutual allies, coordi-
nated home front production, and maintained joint groups
to handle mutual war problems. Canadians fought on the
major fronts of the war against Germany and Italy. They
defended convoys crossing the submarine-menaced Atlan-
tic. They took over the military protection of strategic
Iceland in 1940 during the darkest months of the war.
They helped defend coasts of Great Britain when Invasion
fears were greatest. They served a valuable liaison role
between the United States and Great Britain.
In discussing Canada and its people, you are considering
the nation geographically the largest in the Western Hemi-
Aids Up make discussion more interesting
A good map of North America, or separate maps of Canada
and the United States, will be helpful in discussing the
Dominion. If you cannot. get these, you might use the map
in this pamphlet as the basis for drawing a rough outline
map on the blackboard. On this you can indicate Canada's
nine provinces, the Yukon, and Northwest Territories.
You can also demonstrate in this way Canada's geo-
graphic position in respect to the United States, Alaska,
and Newfoundland. A map or globe of the world would,
help members of your group appreciate Canada's position
in respect to world ship lanes and air routes.
War Department Education Manual, EM 1, GI Round-
table: Guide fur Discussion Leaders, will prove a valuable
aid to you in outlining and planning your discussion pro-
gram. It describes in considerable detail the relative mer-
its of various discussion methods, such as panel, symposium,
forum, and informal group discussion. The size of your
particular discussion group- and the facilities for your meet-
ing will probably determine which method is best for your
If you wish to plan a discussion program to be broadcast
over a radio station or a loud-speaker system of the Armed
Forces Radio Service, you will find valuable assistance in
EM 90, GI Radio Roundtable.
A local library may have some of the publications sug-
gested in this pamphlet for further reading. It may also
have a periodical reference and other guides for finding
further interesting and authentic material on Canada.
Below you will find numerous questions proposed for dis-
cussion. As you prepare your program you will probably
think of other important questions that would be both in-
teresting and valuable to raise for discussion. Members of
your group will appreciate the opportunity to ask their
own questions as the discussion progresses.
Questions for discussion
Would it be a good thing if peoples of other nations moved
across each others' borders as freely as do Canadians and
Americans? Is the average American's interest in Canada
likely to be greater or less now that the war is over? What
do you believe are the basic reasons why Canada, a small
nation in population, and the United States, a large nation,
have lived side by side so harmoniously?
Does Canada's Pre-Cambrian shield, covering so large a
land area, indicate that the Dominion must always have a
small population? How do Canada's major geographic areas
differ from ours? Do you think the Yukon and Northwest
Territories have an important future? What is the signifi-
cance of Canada's geographic position in relation to post-
war international air routes?
Since peoples of British and French origins live together
harmoniously in the United States, why does the English-
French racial problem remain so pronounced in Canada?
Were French Canadians justified in their opposition to
conscription for overseas service? Did World War II in-
crease or decrease the racial unity of Canada?
Is the Canadian or American form of federal govern-
ment more democratic? Is Canada's system of permanently
appointed judges a better or worse one than ours for ad-
ministering justice? Would our government be improved
if the president and members of his cabinet could be ques-
tioned directly on the floor of Congress, as the prime minis-
ter and his ministers can be questioned in the Canadian
House of Commons? Is the right to call a general election
at any time, rather than having elections at fixed intervals,
an advantage or disadvantage? Does the Canadian consti-
tution afford a better or poorer balance of executive, legis-
lative, and judicial authority than does our Constitution?
Do you think Canada benefits or suffers by its two re-
maining limitations on complete autonomy — appeal to the
Privy Council of London and amendment to its constitution
through the British Parliament? What would Canada lose
in relations with the United States if a new Empire govern-
ment were to be set up to coordinate British Commonwealth
international policies? With other nations? Would Can-
ada's membership in the Pan American Union strengthen
or impair its position in the British Commonwealth? Would
Canada's Pan American Union membership benefit the
United States? Latin- American countries?
Could peacetime international joint committees or boards
to handle United States-Canadian economic or other mutual
problems operate as successfully as did the various wartime
joint groups? Did World War II increase or decrease Can-
ada's influence among other nations?
Why is public enterprise popular in Canada and un-
popular in the United States? Can we learn valuable lessons
from Canada's experience with public ownership of utilities,
radio, railroads, and airlines?
Should future trade between the United States and Can-
ada be encouraged by lower tariffs or discouraged by higher
ones? Does Canadian industry offer serious competition to
United States industry? Agriculture? Could the Urtfted
States-Canadian example of cooperation and friendly neigh-
borliness be followed by other nations with mutual bound-
aries? What steps could be taken to strengthen United
States-Canadian relations in the future?
FOR FURTHER READING
These books are suggested for supplementary reading if you have
access to them or wish to purchase them from the publishers. They
are not approved nor officially supplied by the War Department. They
have been selected because they give additional information and repre-
sent different points of view.
Building the Canadian Nation. By George W. Brown.
Published by J. M. Dent and Sons, Aldine House, 224
Bloor St., W., Toronto 5, Canada (1942). $2.25.
A Short History of Canada for Americans. By Alfred
L. Burt. Published by University of Minnesota Press,
Minneapolis 14, Minn. (1<>44). $3.00.
Canada— An Introduction to a Nation. Published by
Canadian Institute of International Affairs, 230 Bloor St.,
W„ Toronto 5, Canada. (194.3). 10 cents.
Dominion of the North. By Donald G. Creighton. Pub-
lished by Houghton Mifflin Co., 2 Park St., Boston 7,
Mass. (1944). $3.50.
Canada: Our Dominion Neighbor. By Merrill Denison.
No. 46 of Headline Series, published by Foreign Policy
Association, 22 East 38th St., New York 16, N. Y. (1944).
Canada and the Building of Peace. By Grant Dexter,
Published by Canadian Institute of International Affairs
The Unknown Country: Canada and Her People. By
Bruce Hutchison. Published by Coward-McCann, 2 West
45th St., New York 19, N. Y. (1942). $3.50.
The Unguarded Frontier, A History of American-Cana-
dian Relations. By Edgar Mclnnis. Published by
Doubleday, Doran and Co., Garden City, N. Y. (1942).
Canada: Member of the British Commonwealth and
Good Neighbor of the United States. By Frederick G.
Marcham. No. 1 of Curriculum Series in World History,
published by Cornell University Press, Ithaca, N. Y.
(1943). 40 cents.
Canada and the United States. By Francis R. Scott. No.
2 of America Looks Ahead, a series of pamphlets pub-
lished by World Peace Foundation. 40 Mt. Vernon St.,
Boston 8, Mass. ( 1941 ) . 25 cents.
The Canadians. The Story of a People. By George M.
Wrong. Published by Macmillan and Co.. 60 Fifth Ave.,
New York 11. N. Y. (1938). $3.50.
In Canada It's Different. An article by Bruce Hutchison
in Fortune, August 1945.
OTHER Gl ROUNDTABLE SUBJECTS
Introductory COPIES of each new Gl RoundtabU pamphlet are auto-
matically issued to information-education officers in the United Suites
and oversea areas. Additional copies are authorized on the basis of
one copy for each 25 military personnel. Pamphlets may be requisi-
tioned from the United Suites Armed Forces Institute, Madison 3,
Wisconsin, or from the nearest USAFI Oversea Branch. List EM
number, title, and quantity. New subjects will be announced as pub-
lished. CI itoutidtahlc subjects now available:
Guide for Discussion Leaders
What Is Propaganda?
What Shall Be Done about Germany after the War?
What Shall Be Done with the War Criminals?
Can We Prevent Future Wars?
How Shall Lend-Lease Accounts Be Settled?
Is the Good Neighbor Policy a Success?
What Shall Be Done about Japan after Victory?
What Has Alaska To Offer Postwar Pioneers?
Will There He Work for All?
Why Co-oi's? What Are They? How Do They Work?
What Lies Ahead for the Philippines?
What Is the Future of Television?
Can War .Marriages Be Made To Work?*
Do You Want Your Wife To Work after the War?
Shall I Build a House after the War?
What Will Your Town Be Like?
Shall I Go Back to School?
Shall I Take Up Farming?
Does It Pay To Borrow?
Will There Bfl a Plane in Every Garage?
Will the French Repubijc Live Again?
Our British Ally
Our Chinese Ally
The Balkans- Many Peopi.es, Many Problems
Australia: Our Neighbor "Down Under"
What Future for the Islands of the Pacific?
Our Russian Ally
Gl Radio llou notable
* Fur Jitlribntian in On UniU-U &\nlv* only.
Fur «*lt? by tht- SuiH-rinli'inU-nt of Durumi-nt*. U. S. Gnvrrnnw-nl Print in£ llflin-
\Y;i-hiiiKlitM -:-. 1>. C. - Prira |f» i>nl*
.'. U. S. GOVERNMENT PRINTING OFFICE: 1944-473144
Our Oldest Good Neighbor