Laws and Benefits
In 1867, the Confederation established an economic and political structure for large-scale projects. In 1870, one of the first moves made by John A. MacDonald’s government was to table a National Policy in favour of trade and market growth within Canada. The policy revolved around three main actions: higher customs tariffs to help finance the railroads; further railroad development for access to new lands and to attract immigrants and industries; and a push for immigration to create new markets, which in turn helped to finance the railroad system.
Tariff protection made it possible for the Canadian market to surmount some of its weaknesses. Notably, the textile industry benefited from these measures: between 1870 and 1910, production increased by a whopping 1261%. The new tariffs opened the doors to large textile companies, two thirds of which set up shop in Quebec.
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