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LectureEleven-SmallBusinessandGovernmentResponses.pptx

Small Business and Government Responses to the Growth of Big Business: Edward Alexander Partridge and Alphonse Desjardins

Lecture Eleven – History 113

Edward Alexander Partridge

Partridge began Working as School Teacher Near Barrie Ontario

Partridge and His Brother Moved West in 1883 and Homesteaded north of Sintaluta (Sask.)

In 1901, Part of A Very Large Wheat Harvest Spoiled as the CPR and the Grain-Elevator Companies were Unprepared to Deal with It

Partridge and Others Formed the Territorial Grain Growers’ Association in 1902 to Help Farmers Fight Abuse by the Grain Dealers and Railways

In 1904, Partridge Proposed the Idea of Establishing a Farmer-Owned Cooperative Trading Company

He was Convinced by 1905 that the Winnipeg Grain Exchange did not Serve the Interests of Farmers

In 1906, Partridge Founded The Grain Growers’ Grain Company Limited and Became Its First President

Basically a Joint-Stock Company of Farmers Who Would Sell Their Wheat Collectively

Partridge Also Advocated for Public Ownership of Grain Elevators to Eliminate the Effective Monopoly of the Large Grain Handlers

The Idea Received Support of the Prairie Governments and Would Lead to Action in 1920s with creation in 1926 of the Saskatchewan United Farmers of Canada

Source: Saskatchewan Archives

From: E.A. Partridge

wikipedia.org

Alphonse Desjardins

Desjardins Began as a Journalist and Then was Appointed as a Stenographer for the House of Commons in 1892

Desjardins was a Supporter of Mutual Aid Societies and Sat on the Board of a Society that Provided Mortgage Loans to its Members

During a 1897 Debate on Usurious Practices in the House, Desjardins Became Concerned about the Lack of Credit for Average People

Based on Research on People’s Banks and Rural Credit Unions in Europe, Desjardins Created the Caisse Populaire de Lévis on 6 Dec. 1900

It was a Cooperative Savings and Loan Society whose Main Purpose was to Extend Credit to Members

In 1906, Desjardins Succeeded in Having the QC Legislature Pass the Quebec Syndicates’ Act which Provided a Legal Framework for the Caisse (Credit Unions)

Desjardins and the Caisse Received the Support of the Church in QC and Prominent French Canadian Leaders

Leading to Growth of the Caisse Populaire in QC and ON

By 1920, Quebec had 140 Caisses with a Total Membership of More than 30,000 and Assets of $6,300,000

Source: Confédération des Caisses

Populaires Desjardins

From: Alphonse Desjardins

wikipedia.org

New Business Practices and Workers

Growth of Big Business and Industrialization Led to Problems or Challenges for Workers:

Impersonal Nature of Employer/Employee Relationship in Large Workplaces

New Efficiency and Employee Management Measures Implemented by Large Companies

Scientific Management and Mechanization

Measures to Increase Efficiency and Production

Resisted by Workers as it Reduces Autonomy and Control of Workers and Leads to De-Skilling

Exploitive Work Place Environment and Wages

Paternalism/Human Resource Management

Measures Introduced To Increase Employee Dedication to Company

Early Forms of Human Resource Management

Eaton was a Pioneer in the Shorter Hours Movement

1913, McGregor Implemented the 9-Hour Day and Pay Raises

Source: City of Toronto Archives, James

Collection

From: thestar.com 6 November 2013

Responses to Problems of Workers

Governments Implement Measures to Regulate Labour Conditions

Through Enquiries and Legislation

Government Concern is for the Safety of Women and Children

Leads to the First Factory Acts (Labour Laws)

Regulate Hours and Conditions of Female and Child Labour

Factory Acts Do Not Cover Male Workers

Male Workers Develop Collective Responses

Organize in to Unions to Try to Achieve Wage and Workplace Demands

1912 Strike by Workers at the Eaton’s Clothing Factory

Eaton’s Refused to Negotiate with the Union and Locked out the Workers

Large Employers Criticize Unions as Injurious to Competition and Business

Employers Associations are Formed

Canadian Bankers Association 1891

Source: The World, March 31, 1912.

From:backtothepark.wordpress.com/

category/toronto-labour-history/

Challenges of Small Business

Rise of Big Business Also Leads to Problems/Concerns for Small Business

Argue that They are in an Unfair Competitive Situation Due to Power of Big Business

Retail Merchant’s Association of Canada

Early 1920s, Complain of “Unfair” Competitive Practices by Large Retailers like Eaton’s

Form Combinations and Cooperatives to Strengthen Their Market Position, Political Influence and Achieve Their Goals

Partridge Established the Territorial Grain Growers’ Association in 1902 to Express Farmers’ Grievances to Government and Impact Government Policy

Desjardins Created the Caisse Populaire to Meet the Needs of Farmers, Small Business and Average People

From: The National Policy/

www.mises.ca

Farmers and the Cooperative Movement

Farmers Form Producer Co-Operatives

To Effectively “Integrate” Their Production with Transportation, Marketing, and Storage

Partridge’s Support for Farmer’s Cooperative Arose From Concerns About the Virtual Monopoly Held by the Elevator Companies and the Winnipeg Grain Exchange

Partridge Founded The Grain Growers’ Grain Company Limited to Allow Farmers to Market and Sell Their Wheat Collectively

Partridge Also Advocated for Public Ownership of Grain Elevators to Eliminate the Effective Monopoly of the Large Grain Handlers

Partridge’s Ideas are Extended to Elevators Starting in 1911

United Grain Growers Ltd & Sask Co-op Elevator Co

By 1920s, Cooperatives Control Majority of Line and Terminal Elevators

Farmers Continue with this Practice when the First “Wheat Board” Established by the Government is Dissolved in 1920

Farmers Create Wheat “Pools” (Marketing Cooperatives)

Co-op Wheat Production Co (Alta 1923, Sask & Man 1924)

From: Edward Partridge

wikipedia.org

Increase in Government Intervention in Business

Concerns of Workers, Small Business and Average People Lead to an Increase in Government Intervention in Business and the Economy By the Early 20th century

Combined with Concerns About Economic Instability Particularly with The Depression of the 1930s

Pressure for Government to Moderate the Forces of the Market

To “Protect” Society from Problems of Unrestrained Competition and Exploitation

One Example is “Anti-Trust” Legislation Introduced in 1889 with Revisions in to the 1920s

Legislation for “suppressing the evils arising from…combinations and monopolies”

Canadian Wheat Board Formed in 1935 as a Marketing Agency for Western Farmers Following the Collapse of the Wheat Pools

Bank of Canada Formed in 1935

In Part to Regulate Interest Rates and Effect Monetary Policy to Protect Citizens and the Economy

Desjardins Created the Caisse Populaire Due to Similar Concerns About Control of the Money Supply and Interest Rates by Big Banks

1935 $25.00 Note Commemorating

Formation of the Bank of Canada

From: Bank of Canada/

www.currencymuseum.ca