Robert Borden

Major reforms

On August 22, 1914, Parliament passed the controversial War Measures Act (with support from both Conservatives and Liberals), which gave the government extraordinary and emergency powers, including the right to censor and suppress communications, the right to arrest, detain, and deport people without charges or trials, the right to control transportation, trade and manufacturing, and the right to seize private property during times of "war, invasion or insurrection". The act also allowed Borden to govern by Order in Council, meaning that Cabinet was allowed to implement pieces of legislation without the need for a vote in the House of Commons and Senate.^[2][12][13]

Borden's government created the Canadian Patriotic Fund to give financial and social assistance to the families of soldiers.^[14] The government also raised tariffs on some high-demand consumer items to boost the economy.^[2]

In 1916, Borden's government established the National Research Council Canada for scientific and industrial research.^[15] In 1918, to gain information on Canada's population, social structure, and economy, the government established the Dominion Bureau of Statistics through the Statistics Act. It was renamed Statistics Canada in 1971.^[2]

Borden's government set up the Canadian Expeditionary Force (CEF). The force posted several combat formations of the Western Front during the war.^[16] In December 1914, Borden stated, "there has not been, there will not be, compulsion or conscription." As the war dragged on, more troops for the CEF were deployed through the voluntary force. In July 1915, the number of CEF soldiers increased to 150,000 before being increased to 250,000 in October 1915 before doubling to 500,000 in January 1916. By mid-1916, the rate of volunteers enlisting started to slow down.^[2]

Economy

Despite the threat of an economic collapse and the need for more revenue to fund the war effort, Borden's finance minister, William Thomas White, rejected calls for direct taxation on Canadian citizens in 1914, though this position would be shortly reversed. White cited his beliefs that taxation would cost too much to implement and would interfere with provincial taxation systems.^[2] Borden and White instead opted for "business as usual" with Britain by assuming that the country would cover the costs incurred by Canada. However, at the end of 1914, Britain was not able to lend money to Canada due to their own economic priorities. By 1917, Britain had become unable to pay for wartime shipments from Canada. During the war, Canada drastically increased imports of specialized metals and machinery needed for production of ammunition from the United States.^[17] This led Borden and White to successfully negotiate a $50 million loan in New York City in 1915.^[2][18] Canada also succeeded in negotiating larger bond issues in New York in 1916 and 1917. In 1918, a Victory Bond of $300 million brought in $660 million.^[2] Overall, Victory Bond campaigns raised around $2 billion. American investment in Canada significantly increased whereas British investment declined. By 1918, imports of goods from the United States were 1,000 percent of British exports to Canada.^[17]

In 1915, 1916, and 1917, Borden's government began to reverse their anti-taxation position, not least because of the need for more government revenue. The government introducing wartime savings bonds and raising import tariffs was not enough. In 1915, a luxury tax on tobacco and alcohol and taxes on transport tickets, telegrams, money orders, cheques, and patent medicines were introduced. By the end of the war, staple items were taxed. In a politically motivated move in 1916, the government introduced the Business Profits War Tax to address increasing concerns about businesses practising war profiteering. The tax expired in 1920 but was brought back in the Second World War.^[2][19]

In 1917, Borden's government introduced the income tax which came into effect on September 20, 1917. The tax exempted the first $1,500 of income for single people (unmarried persons and widows and widowers without dependent children); the tax exempted the first $3,000 for everyone else. Single people were taxed at four percent while the tax rate ranged from two to 22 percent for married Canadians with dependents and an annual income over $6,000. Due to its several exemptions, only two to eight percent of Canadians filed tax returns during the early days of the income tax. When the war ended in 1918, $8 million in income tax revenue had been recorded, which was a small fraction of the national net debt of $1.6 billion. Though Borden's government declared the income tax to be temporary, it has remained in place ever since.^[20][21]

In 1917, facing skyrocketing prices, Borden's government established the Board of Grain Supervisors of Canada to distance the marketing of crops grown in 1917 and 1918 away from the private grain companies. It was succeeded by the Canadian Wheat Board for the 1919 crop.^[2] The board was dissolved in 1920, despite the concept being popular among farm organizations.^[22]

Conscription, Unionist Party, and 1917 election

In Spring 1917, Borden visited Europe and attended the Imperial Conference. There, he participated in discussions that included possible peace terms and helped spearhead the passage of Resolution IX which called for a post-war constitutional conference to "provide effective arrangements for continuous consultation in all important matters of common Imperial concern, and for such necessary concerted action, founded on consultation, as the several Governments may determine."^[2] He also assured leaders of the Allied countries that Canada was committed to the war. Also during his trip, Borden made visits to the hospital to meet wounded and shell shocked soldiers and became determined that the soldiers' sacrifices should not be in vain, and that therefore, the war must end. With volunteer enlistment slowing down, Borden believed that the war should finish through only one method: conscription. Reversing their pledge to not introduce the policy, Borden's government passed the Military Service Act to introduce conscription.^[23] The act became law on August 29, 1917.^[24]

The disputes over conscription triggered the Conscription Crisis of 1917; most English Canadians supported the policy whereas most French Canadians opposed it, as seen by protests in Quebec. In a bid to settle Quebec opposition towards the policy, Borden proposed forming a wartime coalition government composed of both Conservatives and Liberals. Despite Borden offering the Liberals equal seats in the Cabinet in exchange for Liberal support for conscription, the proposal was rejected by Liberal leader Laurier. In October, Borden formed the Unionist Party, a coalition of Conservatives and pro-conscription Liberals (known as Liberal–Unionists). Laurier, maintaining his anti-conscription position, refused to join the Unionist government and instead created the "Laurier Liberals", a party of Liberals opposed to conscription.^[25]

The 1917 federal election was held on December 17. The election was Canada's first in six years; it was supposed to be held in 1916 due to the constitutional requirement that Parliament last no longer than five years, but was delayed by one year due to the war.^[26] Months before the election was called, Borden's government introduced the Military Voters Act that allowed all 400,000 conscripted Canadian soldiers — including those who were underage and born in Britain, to vote. The act also allowed current and former Indigenous veterans to vote. In addition, the Wartime Elections Act allowed female relatives of soldiers (excluding Indigenous women) to vote. However, this law confiscated voting rights from German and Austrian immigrants (i.e. immigrants from "enemy nations") who moved to Canada during and after 1902 as well as those who exempted from the coming conscription draft, including conscientious objectors. Some believe that these laws put the Unionists in a favourable position.^[17][27]

The Unionist election campaign criticized French Canada for its low enlistment rate to fight in the war. Fearing the possible event of a Liberal victory, one of the Unionist pamphlets highlighted ethnic differences, stating, "the French Canadians who have shirked their duty in this war will be the dominating force in the government of this country. Are the English-speaking people prepared to stand for that?"^[17]

The Unionist campaign was an overwhelming success; the government won a powerful majority (114 Conservatives and 39 Liberals), won the highest share of the popular vote in Canadian history, and won the largest percentage of seats in Canadian history at the time (at 65.1%). The Liberals on the other hand lost seats and won their smallest share of the popular vote since the 1882 federal election. The election revealed ethnic divides in the country; the Conservatives won over English Canadians whereas the Liberals swept French-Canadian-dominated Quebec.^[2][17]

The process of conscripting soldiers began in January 1918.^[24] Only 124,588 out of the 401,882 men who registered for conscription were drafted and only 24,132 actually fought in Europe. By spring 1918, the government removed certain exemptions.^[28] To suppress the anti-conscription "Easter Riots" that occurred in Quebec City between March 28 and April 1, Borden's government used the War Measures Act, invoked martial law, and deployed more than 6,000 troops. The troops and rioters exchanged gunfire, resulting in four civilian deaths and as many as 150 casualties.^[28]

Ukrainian Canadian internment

Between 1914 and 1920, more than 8,500 Ukrainian Canadians were interned under the measures of the War Measures Act. Some immigrated from the Central Powers countries of the German Empire, Austria-Hungary, and the Ottoman Empire. The internees faced intense labour; they worked in the national parks of Western Canada, built roads, cleared bush, and cut trails. They also had their personal wealth and property confiscated and never returned by the Borden government. Overall, 107 internees died. Six were shot dead while trying to escape and others died from disease, work-related injuries, and suicide.^[29]

Another 80,000 Ukrainian Canadians were not imprisoned but were registered as "enemy aliens" and were compelled to report regularly to the police. Their freedom of speech, movement, and association were also restricted.^[29]

Halifax Explosion

Eleven days before Canadians went to the polls in the 1917 election, Canada experienced the largest domestic disaster in its history: the Halifax Explosion that killed nearly 1,800 people. The tragedy occurring in his own hometown, Borden pledged that the government would be "co-operating in every way to reconstruct the Port of Halifax: this was of utmost importance to the Empire".^[35] Borden helped set up the Halifax Relief Commission that spent $30 million on medical care, repairing infrastructure, and establishing pensions for injured survivors.^[36][37]

Women's suffrage

On May 24, 1918, female citizens 21 and over were granted the right to vote in federal elections. In 1920, Borden's government passed the Dominion Elections Act to allow women to run for the Parliament of Canada. However, these two laws prevented or discouraged Asian Canadian and Indigenous Canadian women and men from voting.^[38][39]

Nickle Resolution

Despite being knighted himself, Borden disapproved of the process by which Canadians were nominated for honours and in March 1917 drafted a policy stating that all names had to be vetted by the prime minister before the list was sent to Westminster.^[40] In mid-1917, Borden agreed with MP William Folger Nickle's proposal to abolish Hereditary titles in Canada. In addition to the abolition of the Hereditary titles, it was later learned that with the exception of military distinctions, honours would not be granted to residents of Canada without the approval or the advice of the Canadian prime minister.^[2]

Nationalization of railways

On June 6, 1919, through an Order in Council,^[41] Borden's government established the Canadian National Railways (CN) as a Crown Corporation. The organization originally consisted of four railways: the Intercolonial Railway, the Canadian Northern Railway, the National Transcontinental Railway, and the Grand Trunk Pacific Railway. In January 1923, a fifth one was added: the Grand Trunk Railway. All five of these railways were financially struggling as a result of their inability to borrow from banks (mainly British) during the First World War.^[2][42]

1919 Winnipeg general strike

After the war, the working class experienced economic hardship. In a bid to address this problem, construction and metal trades workers in Winnipeg, Manitoba, sought better wages and better working conditions by negotiating with their managers. In May 1919, as a result of talks between the workers and their managers breaking down, several strikes started; on May 15, the Winnipeg Trades and Labor Council (WTLC) called for a general strike as a result of the negotiations collapsing. Within hours of the Winnipeg general strike breaking out, nearly 30,000 workers resigned.^[43]

Afraid that the strike would spark conflicts in other cities, Borden's government intervened. His Cabinet ministers Arthur Meighen and Gideon Robertson met with the anti-strike Citizens’ Committee but refused to meet with the pro-strike Central Strike Committee. Taking the advice of the Citizens' Committee, Borden's government threatened to fire federal workers unless they returned to work immediately. The government also changed the Immigration Act to allow the deportation of British-born immigrants. On June 17, the government arrested 10 leaders of the Central Strike Committee and two members of the trade union, One Big Union. On June 21, Borden's government deployed troops from the North-West Mounted Police (NWMP) to the strike scene to maintain public order.^[44][45] As a result of the protestors beginning to riot,^[46] the NWMP charged at the protestors, beat them with clubs, and fired bullets. Two people were killed and the violent incident became known as "Bloody Saturday". Within days, the strike ended.^[2][47]