12.8 - Canada: R.B. Bennett's Response
Key facts and dates
R.B. Bennett, as Conservative Prime Minister of Canada from 1930 to 1935, faced the immense challenges of the Great Depression with a mix of traditional and innovative policies. His tenure was marked by economic struggles, social unrest, and eventual political defeat, shaping a complex legacy during a critical period in Canadian history.
Timeline of key events:
- 1930 – Bennett becomes Prime Minister, promising vigorous action and protectionist policies.
- 1930-1931 – Tariffs raised to shield Canadian industry, leading to trade retaliation.
- 1932 – Ottawa Conference held to secure preferential trade within the British Empire.
- 1935 (January) – Bennett announces "New Deal" reforms via radio addresses.
- 1935 (July 1) – Regina Riot occurs during the On-to-Ottawa Trek, resulting in violence and deaths.
- 1935 (October) – Bennett loses election in a Liberal landslide, ending his tenure.
R.B. Bennett's background and political promises
R.B. Bennett, who served as Canada's Conservative Prime Minister from 1930 to 1935, came into power during the onset of the Great Depression. Understanding his background and the promises he made provides insight into his initial approach to tackling the economic crisis that gripped Canada.
Bennett's personal and political profile:
- Wealthy background - As a successful Calgary lawyer, Bennett amassed considerable personal wealth, which shaped his pro-business outlook and belief in individual enterprise as a driver of economic success.
- Imperial loyalty - He held a strong allegiance to the British Empire, viewing imperial connections as vital for Canada's economic and cultural identity.
- Contrast with predecessor - Bennett criticised the perceived passivity of Liberal Prime Minister William Lyon Mackenzie King, promising vigorous action to combat the Depression.
- Protectionist rhetoric - His campaign included bold statements like "blast a way into markets", advocating for high tariffs to protect Canadian industries from foreign competition.
Initial policies and their impact during the Great Depression
Upon taking office, Bennett implemented a series of policies aimed at shielding Canada from the worsening economic downturn. However, these early measures often fell short of expectations and sometimes exacerbated the crisis.
Key initial policies and their consequences:
- Increased protectionism (1930-1931) - Bennett raised tariffs significantly to protect Canadian industries from foreign competition. This policy aimed to preserve jobs but provoked retaliation from other countries, reducing international trade and deepening the economic slump.
- Unemployment relief grants - Limited financial aid was provided to provinces to support the unemployed. These grants were inadequate to meet the widespread need, leaving many Canadians without sufficient support.
- Relief camps for single men - Established for unemployed single men, these camps were run by the military under harsh conditions. Workers received only 20 cents per day for labour, breeding resentment and dissatisfaction among participants, who felt dehumanised by the system.
The Imperial Economic Conference and trade strategies
In an effort to bolster Canada's economy through international cooperation, Bennett pursued a strategy of imperial trade at the 1932 Ottawa Conference. This initiative reflected his belief in the strength of British Empire ties but faced significant challenges.
Outcomes of the Ottawa Conference (1932):
- Goal of preferential trade - The conference aimed to establish preferential trade arrangements within the British Empire, hoping to create a protected market for Canadian goods.
- Limited success - While some tariff reductions were agreed upon, the competing interests of Britain and other Dominions prevented a comprehensive solution. Fundamental economic problems persisted.
- Nationalist tensions - Canada sought greater autonomy in its economic policies, which sometimes clashed with the goal of closer imperial integration, creating friction during negotiations.
The On-to-Ottawa Trek and public backlash
By 1935, frustration with Bennett's policies and the harsh conditions of relief camps boiled over into a significant protest movement. The On-to-Ottawa Trek became a pivotal event that highlighted the depth of public discontent.
Events and impact of the On-to-Ottawa Trek:
- Origins of the protest (1935) - Relief camp workers in British Columbia, fed up with poor conditions and low pay, organised a trek to Ottawa to demand "work and wages" directly from the government.
- Confrontation in Regina - Bennett ordered police to halt the protesters in Regina, leading to the Regina Riot on 1 July 1935. The violent clash resulted in deaths and injuries, shocking the nation.
- Public outcry - The government's harsh response alienated many Canadians, who saw the trekkers as victims of economic hardship rather than threats, significantly damaging Bennett's public image.
Bennett's "New Deal" reforms and their announcement
In a surprising shift in early 1935, Bennett introduced a series of progressive reforms inspired by U.S. President Franklin D. Roosevelt's New Deal. This marked a departure from his earlier conservative policies but was met with mixed reactions.
Features of Bennett's "New Deal" (January 1935):
- Radio addresses - Bennett announced his reforms through surprise radio broadcasts, bypassing traditional consultation with his Cabinet and catching many by surprise.
- Proposed reforms - The package included unemployment insurance, minimum wage laws, maximum working hours, health insurance, agricultural support, and regulated business practices, aiming to address widespread economic and social issues.
- Lack of planning - The sudden announcement lacked detailed implementation plans, raising doubts about the feasibility and sincerity of the reforms, especially given Bennett's prior protectionist stance.
The 1935 election defeat and Bennett's legacy
Bennett's tenure ended with a crushing defeat in the 1935 federal election, reflecting widespread dissatisfaction with his handling of the Depression. His legacy became a subject of debate, influenced by both his failures and late attempts at reform.
Reasons for electoral loss and immediate legacy:
- Liberal landslide (October 1935) - The Liberal Party, under Mackenzie King, won a decisive victory as the public blamed Bennett for the ongoing economic misery.
- Public perception - Bennett's shift to the "New Deal" was seen as inconsistent with his earlier policies, and his personal unpopularity grew, symbolised by "Bennett buggies" - cars pulled by horses due to unaffordable fuel costs.
- Legal setbacks - Many of Bennett's reform legislations were later declared unconstitutional, as they infringed on provincial jurisdiction under the 1867 British North America Act. This highlighted the inadequacy of existing constitutional frameworks for modern economic challenges.
- Delayed implementation - Most of Bennett's proposed reforms were not enacted until the subsequent King government, further diminishing his immediate impact.
Historiographical reassessment and comparison with Hoover
Over time, historians have revisited Bennett's record, offering a more nuanced view of his leadership during an extraordinarily difficult period. Comparing his approach to that of U.S. President Herbert Hoover also sheds light on the broader challenges faced by conservative leaders during the Depression.
Reassessing Bennett's record
- More active than credited - Recent historiography suggests Bennett was more proactive than initially thought, attempting various strategies to combat the Depression despite facing an almost impossible situation.
- Enduring contributions - Some of his initiatives, such as the establishment of the Bank of Canada, had lasting impacts on Canadian economic policy.
- Political failures - However, his poor timing, especially the eleventh-hour "New Deal" conversion, and inability to connect with the public ensured a largely negative historical reputation.
Comparison with Herbert Hoover
- Shared conservative roots - Both Bennett and Hoover were business-oriented conservatives who initially adhered to orthodox economic principles of limited government intervention.
- Similar policy evolution - Each eventually moved towards greater intervention (Bennett's "New Deal", Hoover's Reconstruction Finance Corporation), but too late to salvage public support.
- Common fate - Both leaders were heavily blamed for the Depression's effects in their respective countries, suffered massive electoral defeats, and endured tarnished historical reputations despite some policy achievements.