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Lesson 5 of 8Canada, 1914–1929
Unit 2 · Lesson 5 of 8

The 1920s: Economy, Technology, Arts and Popular Culture

How Canada moved from a sharp postwar recession to a resource and consumer boom, why the boom was uneven across regions and groups, what new technologies (insulin, radio, cars, bush planes) changed, and how the Group of Seven, American mass culture, prohibition and sport shaped Canadian identity in the 1920s.

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Key things to remember

  1. 1A postwar recession (1920–1922) gave way to a boom from about 1924 to 1929, led by pulp and paper, mining, hydroelectricity, wheat and cars.
  2. 2American investment overtook British investment in the 1920s, often through branch plants.
  3. 3The boom was uneven: the Maritimes declined (Maritime Rights movement, Duncan Commission 1926) and Prairie farmers backed the Progressive Party (58 seats in 1921).
  4. 4Insulin was discovered in Toronto in 1921–1922 by Banting and Best, with Collip and Macleod; Banting and Macleod won the 1923 Nobel Prize.
  5. 5The Group of Seven held its first exhibition on May 7, 1920; American movies, radio and magazines grew more influential.
  6. 6Canada's urban population passed half for the first time in the 1931 census (53.7 per cent).

The 1920s are often called the Roaring Twenties: jazz on the radio, a Model T in the driveway, movies every Saturday and new hockey heroes. For many Canadians in Toronto, Montreal or Windsor, the decade really did bring higher incomes and new things to buy. But a Cape Breton coal miner, a Prairie farmer paying off a tractor, or an Inuit trapper selling white fox furs at a trading post would each tell a different story. This lesson looks at the decade's economy, technology and culture, and asks a historian's question: roaring for whom?

From recession to boom

War factories closed, wartime orders vanished and soldiers came home, so Canada fell into a sharp postwar recession from 1920 into 1922, with high unemployment and falling farm prices. From about 1924, a boom took hold, driven by exports of natural resources and by new consumer industries. A key change was the source of money for growth: American investment overtook British investment during the 1920s. Americans tended to build or buy companies directly, often as branch plants (Canadian factories owned by US firms), which created jobs but gave Americans more control over Canada's economy.

SectorWhat happened in the 1920sWhere
Pulp and paperHuge growth to supply American newspapers; by the late 1920s Canada was the world's leading newsprint producerQuebec, Ontario, British Columbia, New Brunswick
MiningNew gold, copper and nickel mines and booming mining towns such as Rouyn and NorandaNorthern Quebec and Ontario, Manitoba, British Columbia
HydroelectricityLarge dams powered factories, mines, paper mills and city homesOntario, Quebec, Manitoba, British Columbia
WheatLarge harvests and exports; farmers formed wheat pools (from 1923–1924) to sell grain togetherThe Prairies
AutomobilesFord of Canada (Windsor), General Motors of Canada (Oshawa, from 1918) and others; for some years Canada was the world's second-largest car producerSouthern Ontario
Leading sectors of the 1920s boom.
  • Consumer society: cars, radios, telephones, washing machines and vacuum cleaners spread among middle-class urban families, along with electric light and indoor plumbing.
  • Buying on credit: instalment plans let people take a car or radio home and pay monthly. Credit fuelled sales but left many families in debt.
  • Advertising in magazines and on radio encouraged people to buy the latest products.
  • Urbanization: by the 1921 census, about half of Canadians (49.5 per cent) lived in urban areas, up from 45.4 per cent in 1911; by 1931 it was 53.7 per cent.

An uneven boom

Region or groupExperience in the 1920s
The MaritimesShipbuilding, coal and steel declined, and higher railway freight rates hurt trade. The Maritime Rights movement demanded fairer treatment; the 1926 Duncan Commission recommended lower freight rates and larger federal subsidies, which were only partly adopted. In Cape Breton, coal miners fought wage cuts in bitter strikes; miner William Davis was shot dead by company police on June 11, 1925, still remembered as Davis Day.
Prairie farmersAngry about high tariffs on machinery and low prices for wheat; they formed co-operatives and wheat pools and backed new farmers' parties. The Progressive Party won 58 seats in the 1921 federal election, more than the Conservatives.
Ontario and QuebecGained most from manufacturing, cars, hydroelectricity, pulp and paper and mining.
WorkersAfter the defeats of 1919, unions struggled; many jobs were unsafe and wages were low, especially for women and immigrants.
First Nations, Métis and InuitLargely excluded from the boom's benefits. In the western Arctic, high prices for white fox fur in the 1920s brought new income to Inuit trappers after the collapse of whaling, but tied families more closely to trading posts. After oil was found at Norman Wells in 1920, the government negotiated Treaty 11 (1921) with Dene and other nations in the Mackenzie Valley.
The boom of the 1920s affected regions and groups very differently.

Science and technology

  • Insulin: in 1921, at the University of Toronto, Frederick Banting and Charles Best, working in J. J. R. Macleod's laboratory, extracted insulin from the pancreas, and James Collip purified it. In January 1922, 14-year-old Leonard Thompson became the first person treated; a purified extract given on January 23 worked. Banting and Macleod won the 1923 Nobel Prize, and each shared his prize money, Banting with Best and Macleod with Collip. Diabetes went from a death sentence to a manageable condition.
  • Radio: on May 20, 1920, Montreal station XWA (later CFCF) broadcast a scheduled program of music to listeners in Ottawa, one of the earliest scheduled broadcasts in North America. By the late 1920s, radios brought news, music, hockey and American programs into many homes.
  • Cars and roads: cars changed leisure, gave rise to gas stations and paved highways, and made suburbs and tourism possible.
  • Bush planes: pilots flew prospectors, mail and medicine into the North. In January 1929, Wop May and Vic Horner flew diphtheria antitoxin in an open-cockpit plane from Edmonton to Fort Vermilion in bitter cold.
  • Farm mechanization: gasoline tractors and new harvesting machines began to replace horses, letting fewer workers farm more land, but also adding to farm debt.

Cracks beneath the boom

OverproductionFarms and factories mademore than people couldbuy, so prices fell.Buying on credit and marginPeople borrowed to buygoods, and to buy stockswith only a small downpayment.Stock market crashOctober 1929: share pricescollapse and savingsvanish.Few key exportsCanada relied on sellingwheat, wood, paper andminerals abroad.US tariffsThe Smoot–Hawley Tariff(1930) taxed imports;world trade shrank.Prairie droughtYears of drought, dust andgrasshoppers wreckedcrops: the Dirty Thirties.The GreatDepression1929–1939unemployment peaked in 1933(estimates 19–30%)sets offPeople spend lessBusinesses sell lessWorkers are laid offFamilies have less moneydownwardspiralEach turn of the cycle made the Depression deeper.
Fig 1Causes of the Great Depression, many of them rooted in the 1920s: overproduction, buying on credit and on margin, the stock market crash of October 1929, dependence on a few exports, US tariffs (Smoot–Hawley, 1930) and drought on the Prairies, feeding a downward spiral in which less spending leads to layoffs and still less spending.
Continuity and change: connect the 1920s to the 1930s
The features that powered the boom (heavy dependence on exports of wheat and newsprint, buying on credit, and American investment) also made Canada vulnerable when the boom ended in 1929. Keep this link in mind for the next unit's lesson on the Great Depression.

Worked examples

Reveal one step at a time and try to beat it to the next line.

Example 1
Canada's urban population was 45.4 per cent of the total in 1911 and 53.7 per cent in 1931. By how many percentage points did it rise, and what does that suggest?
Example 2
Assess the claim: "The 1920s roared for all Canadians."
Example 3
Explain the historical significance of the discovery of insulin.

Where marks get lost

  • Treating the whole decade as a boom. A sharp recession lasted from 1920 into 1922; the boom ran from about 1924 to 1929.
  • Assuming all regions prospered. The Maritimes declined, which led to the Maritime Rights movement.
  • Giving Banting sole credit for insulin. Best, Collip and Macleod each played essential roles; Banting shared the Nobel Prize with Macleod, and the two shared their prize money with Best and Collip.
  • Assuming prohibition meant no alcohol industry. Canadian distilleries legally made liquor for export, much of it smuggled into the US.
  • Seeing the Group of Seven's empty landscapes as neutral. They left out the Indigenous peoples who lived on those lands.

Flashcards 9

Branch plant
Instalment buying
Maritime Rights movement
Progressive Party
+ 5 more

Practice

1
Which development best explains why the Maritime Rights movement arose in the 1920s?
2
Canada's urban population was 49.5 per cent of the total in 1921 and 53.7 per cent in 1931. By how many percentage points did it rise? Give your answer to one decimal place.
percentage points
3
Match each person to their contribution in the 1920s.
Frederick Banting
Lawren Harris
Emily Carr
Wop May
Percy Williams
4
Put these events in chronological order.
  1. 1Wop May's mercy flight to Fort Vermilion
  2. 2The Duncan Commission reports on Maritime claims
  3. 3Leonard Thompson receives a purified insulin extract
  4. 4The Group of Seven holds its first exhibition
  5. 5The Bluenose is launched in Lunenburg
5
What term describes a factory in Canada owned by an American company?
6
What was one criticism later made of the Group of Seven's paintings?
7
How did prohibition in the United States affect Canada in the 1920s?
8
Which life-saving hormone treatment was developed at the University of Toronto in 1921–1922?
9
Which change in the 1920s increased American influence over Canada's economy?

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