An Age of Prosperity

The Roaring

20’s

After WW1

During the war, industry had grown greatly

Canada had supplied shells to the western front

Ships were built and maintained for the Atlantic convoys

The steel industry boomed

Soldiers needed boots, clothes, blankets.

Many factory owners became wealthy.

Farmers grew more wheat.

After WW1

Because of the great demand, prices had risen

The soldiers found goods cost nearly twice as they had in 1913

Wages had risen during the war, but only about 18%. They could not keep up with the prices

After the war, factories were closing or cutting back. The jobs that remained were already filled and there was no need to hire ex-soldiers

The number of trade union members had doubled during the war. Unions were preparing to demand higher wages and better conditions

One Big Union formed. Winnipeg strike was the first test

Prohibition

The ban on the sale of alcohol

Officially the ban was part of the war effort

The grain used to make alcohol could be used for food instead

People expected there would be social benefits from the ban. They thought family life would improve

Prohibition

For a few years after the war, prohibition was in force in every province

Prohibition did not work. Bootlegging – making and selling liquor illegally

By 1924 most provinces decided liquor control was better than liquor ban.

The government could make money from the liquor taxes

The 18th Amendment

The 18th Amendment to the U.S. Constitution banned the manufacture, sale, and transportation of alcohol

Quebec was the 1st province to get rid of prohibition.

Many people from the USA started to take the train to Montreal on weekends for entertainment

Montreal

In the 1920’s, black musicians and dancers became very popular around the world. Louis Armstrong was the most popular musician amongst white and black fans.

Because of prohibition in the USA, popular black entertainers started to perform in Montreal.

Montreal was then referred to as “Little Harlem” or “The Canadian Harlem”

The Boom YearsEarly 1920s, businesses started to make profits and jobs were available again

This time is called the Roaring Twenties

People wanted to invest in the future. They bought shares on the stock market

The Stock Market

In the 20th century, businesses were too big to be owned by one person. Big companies financed themselves by selling shares on the stock market

The price of shares was determined by supply and demand. If a lot of people wanted to buy, the price was high. If more wanted to sell, the price was dropped

The Stock Market

Daring investor took risks. They bought “on margin.” They paid the stock broker 10% or 15% of the price of the shares. Later, when the price had risen, they sold. They then could pay the stock broker and still make a profit.

The stock broker would make a margin call if the stock fell and the investor would have to pay all money owned.

1929, the stock market had reached its peak.