CANADA HISTORY

The Railroad

The completion of the Canadian Pacific Railway (CPR) stands as one of the most defining achievements in Canadian history. It was not merely a monumental feat of engineering, but a project that cemented Canada’s future as a unified nation, connecting the country from the Atlantic to the Pacific and establishing the infrastructure for its expansion and development. The railway was the backbone of Sir John A. Macdonald’s National Policy, a vision for Canada's economic, political, and territorial future. The successful construction of the CPR not only safeguarded Canada's sovereignty from American influence but also played a critical role in solidifying national identity, settling the west, and creating the conditions for Canada's transformation into a modern nation.

The National Policy and the Importance of the Railway

When Macdonald returned to power in 1878 after his defeat over the Pacific Railway scandal, he rebranded his political strategy under the banner of the National Policy. The central pillar of this policy was the construction of a transcontinental railway. For Macdonald, the railway represented much more than just a means of transportation—it was the lifeblood that would connect distant provinces, encourage settlement, open new markets, and prevent western Canada from being drawn into the expanding orbit of the United States. The CPR was critical in securing the vast western territories for Canada and ensuring that British Columbia, which had entered Confederation in 1871 with the promise of a railway, would remain part of the Canadian fold.

Macdonald's vision was based on a simple but bold strategy: increase tariffs on imported goods to protect Canadian industries, settle the west with immigrants, and build the CPR to facilitate east-west trade, avoiding economic dependence on the United States. The railway was the critical link in this strategy, ensuring that eastern Canadian manufactured goods could reach the western provinces, and agricultural products from the prairies could be sent back to the industrial heartland of Ontario and Quebec.

Formation of the Canadian Pacific Railway Company

Building a railway across the vast and rugged Canadian landscape was a daunting challenge, especially considering that no similar project had ever been attempted on such a scale. The railway had to traverse the unforgiving terrain of the Canadian Shield in the east, and the towering Rocky Mountains and Coast Mountains in the west. Financing such a project was another significant hurdle.

Macdonald’s government knew that it would need private investors to take on this challenge. In 1880, the Canadian Pacific Railway Company was formed under the leadership of two powerful businessmen—George Stephen, president of the Bank of Montreal, and Donald Smith, of the Hudson’s Bay Company. The government, desperate to see the railway built, offered extremely favorable terms to the CPR, including a cash subsidy of $25 million, land grants totaling 25 million acres of western land, exemption from competition south of the CPR’s route for 20 years, and a perpetual tax exemption. While these terms would later be criticized by the opposition Liberal Party, Macdonald and his supporters knew that such incentives were necessary to secure the construction of the railway and prevent the western provinces from gravitating toward the American railroads that were encroaching ever closer to the Canadian border.

The Role of William Cornelius Van Horne

The real breakthrough for the railway project came with the appointment of William Cornelius Van Horne as the Chief Engineer in charge of construction in 1881. An American with extensive experience in railway building, Van Horne brought the expertise, organizational skill, and leadership that the project desperately needed. Under his command, the pace of construction accelerated dramatically. His motto, "nothing is too big for us to attempt," reflected the determination and ambition that drove the CPR project.

By 1882, the section of the railway between Fort William and Winnipeg was completed, and the CPR's tracks surged westward across the prairies. The construction of the railway also sparked a land boom across western Canada. Land prices in Winnipeg skyrocketed, and speculative towns sprang up along the route as settlers anticipated the economic opportunities that the railway would bring. The CPR, taking advantage of its insider knowledge of the railway’s route, profited immensely from land speculation. However, the costs of the railway were mounting rapidly, and by 1883, it became clear that the CPR was running out of funds.

Financial Crisis and the Northwest Rebellion

Despite the rapid progress, the Canadian Pacific Railway faced repeated financial crises. By 1885, the project was on the brink of collapse, with funds nearly exhausted. Macdonald and the Conservative government, whose political fortunes were tied to the success of the railway, managed to pass legislation in Parliament providing additional funding. However, public patience was wearing thin, and the government was running out of options. The fate of the railway, and possibly the future of the country, hung in the balance.

It was at this crucial juncture that Louis Riel and the Northwest Rebellion intervened to change the course of Canadian history. Riel, the Métis leader who had led the Red River Rebellion of 1869, returned to Canada in 1884 to lead the Métis and Indigenous peoples of Saskatchewan in a fight for their rights and land. The rebellion erupted in 1885, causing widespread panic across Canada. The Canadian government quickly mobilized, and thanks to the newly built sections of the CPR, troops were transported from eastern Canada to Saskatchewan in record time. The rapid deployment of forces helped crush the rebellion, showcasing the strategic value of the railway.

The CPR’s role in quelling the Northwest Rebellion provided a powerful argument for completing the railway. It demonstrated the CPR’s importance not just as an economic tool but as a vital means of maintaining national unity and security. The government authorized additional funds, and on November 7, 1885, at Craigellachie, a small rail siding in British Columbia, Donald Smith drove the last spike, completing the railway six years ahead of schedule.

The CPR: Securing Canada’s Sovereignty and Economic Future

The completion of the Canadian Pacific Railway in 1885 was a monumental achievement for Canada. It represented the fulfillment of Macdonald's National Dream—the creation of a unified, transcontinental nation that stretched from the Atlantic to the Pacific. The railway physically bound together the far-flung provinces of Canada, linking the west coast to the east and ensuring that British Columbia remained part of Confederation. It also pre-empted American ambitions in western Canada, ensuring that the northern prairies would remain under Canadian control rather than being absorbed into the United States.

The CPR facilitated the settlement of the western provinces, with thousands of immigrants arriving to farm the fertile prairie lands. It opened up new markets for Canadian agricultural products and enabled the transport of eastern Canadian manufactured goods to the west. The railway was not only an economic engine but also a symbol of Canadian sovereignty and independence.

The CPR and Its Long-Term Legacy

The Canadian Pacific Railway had far-reaching effects on Canadian society, economy, and politics. Economically, the railway was the backbone of Canada’s trade and commerce for decades, facilitating the flow of goods across the country and spurring the development of industries such as mining, agriculture, and forestry. It played a critical role in Canada’s emergence as a modern industrialized nation, providing the infrastructure for national and international trade.

Politically, the completion of the CPR solidified the dominance of Macdonald and the Conservative Party for years to come. The successful construction of the railway, despite the financial and logistical challenges, was seen as a triumph of Macdonald’s leadership and vision. The CPR became synonymous with the growth and success of the Canadian state, a testament to the power of infrastructure to unify and develop a country.

However, the construction of the CPR also had significant social and environmental consequences. The railway facilitated the displacement of Indigenous peoples from their lands, as settlers moved into the newly accessible western territories. The treaties signed with Indigenous nations in the 1870s and 1880s, which were often coercive and unfair, paved the way for the settlement of the prairies but also contributed to the marginalization and impoverishment of Indigenous communities. The environmental impact of the railway, particularly in terms of deforestation and the disruption of ecosystems, was profound.

The completion of the Canadian Pacific Railway was one of the most significant events in Canadian history, representing the culmination of Sir John A. Macdonald’s National Policy and the realization of his dream of a unified, transcontinental nation. The railway connected Canada from coast to coast, secured its sovereignty from American expansionism, and laid the foundation for the economic and political development of the country. It was a remarkable engineering feat, a symbol of national unity, and a powerful tool for settling the west and developing Canada’s vast natural resources.

However, the CPR also had a darker legacy, as its construction and the subsequent settlement of the west led to the displacement of Indigenous peoples, the destruction of traditional ways of life, and environmental degradation. Despite these challenges, the Canadian Pacific Railway remains an enduring symbol of Canada’s ambition, determination, and capacity for nation-building, a testament to the power of infrastructure to shape the course of history.