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The Dream of a Transcontinental Railway
 | - the task of building a railway began in 1872 there would be many
problems before it was completed in 1885. |
| -The first obstacles were finding the best route, building bridges,
tunnels, getting workers and dealing with the elements. |
| - the biggest setback was the Pacific Scandal. This
scandal centered around Hugh Allan. He who was building the railway and
Prime Minister Macdonald. By 1873 it was rumored that Allan had given
money to Macdonald and the conservatives for the contract to build the
railway. Though the rumors were never proven Macdonald and the
Conservatives were forced to resign. |
| - for the next five years the railway made little progress under A.
Mackenzie and the Liberals. |
| - In 1878 Macdonald was re-elected and he put forth the National
Policy. |
The Policy put forth the following plan:
1. Keep American goods out of Canada with high tariffs
2. Fill the west with settlers
3. Encourage Canadians to buy goods made by other Canadians
4. Make this possible by building an east-west railway.
| - with the National Policy the railway project was on again in
1880.George Stephen and Donald A. Smith worked out a deal with Macdonalds
government to build the railway. Their company would : |
| 1. Own and operate the railway |
 | 2. Receive 10 million ha of land |
| 3. Receive 100 km of completed lines |
| 4. All materials were tax free |
* The Company in return promised to complete the railway within 10 years,
actually it only took five years as the last spike was driven in 1885.
Questions for Review
| 1. A. What did Macdonald claim the National Policy would do?
| B. Explain the key points of the policy. |
| C. Why did the policy make no sense to people in the Maritimes. |
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| 2. In your opinion, which province - Manitoba, British Columbia,
Prince Edward Island- received the best deal when entering Canada? Explain
your view. |
| 3. Explain the pacific Scandal |
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