At the same time, the Great Northern began to push out to the North-west, for the sake of the immense trade in grain which the opening up of the new provinces had created. A little later work was also begun on the Hudson's Bay Railway, which was intended to connect the more northern waters with Ontario and the Great Lakes. In 1908 the Dominion had twenty-two thousand miles of railway completed, in addition to the long stretches then under construction. In 1918 it was 38,879 miles.
Almost as important to Canada as her railways are her canals and her waterways. In 1897, on the accession of the Liberal Government to office, it was determined to deepen the St. Lawrence canals and enlarge the locks sufficiently to allow the passage from the great lakes to the sea of vessels drawing not more than fourteen feet of water. These canals afford a through water route, with a minimum depth of fourteen feet, from Montreal to Port Arthur on Lake Superior, a distance of 1,223 miles, 73 of which are by canal. The total expenditure of the Dominion on canals up to 1919 amounted to over $127,000,000.
Alongside the improvement in the means of communication—railways and canals—has gone a considerable growth of Canadian manufacturing industries. The iron and steel industry was scarcely in existence at Confederation. The Marmora plant at Long Point, Ontario, and a smaller plant at Three Rivers, Quebec, had been in existence since the forties; but the iron and steel industry, as it exists to-day in Canada, is largely the creation of the national policy of protective tariffs and bounties. The bounty system was instituted in 1883, chiefly for the benefit of a blast furnace of 100 tons capacity at Londonderry, Nova Scotia, which was then in difficulties. Besides this furnace, only two others—charcoal furnaces with an aggregate capacity of fifteen tons, at Drummondsville, Quebec—came on the bounty list in 1884. In 1897, when the Liberals came into office, furnaces had also been erected at New Glasgow, Radnor, and Hamilton, and the aggregate daily capacity of the furnaces of the Dominion was then 445 tons.
At the revision of the tariff in 1897 the bounty system was greatly extended, and under its aegis two great modern iron and steel plants—one at Sydney, N.S., and one at Sault Ste. Marie, O., came into existence. Modern furnaces have also been established at North Sydney, Hamilton, Welland, Midland, and Port Arthur, and in 1908 the output of pig-iron from all these plants was a little over 600,000 tons. A large proportion of this pig-iron is converted at the Sault Ste. Marie and the Sydney plants into steel rails, for which the constant extension of the railways furnishes a steady market.
Next to iron and steel the most important manufacturing industries are the textiles. Both woollens and cottons were manufactured in Canada in small quantities before Confederation. A small woollen mill was established at Coburg, Ontario, in 1846, and even earlier than this there were woollen mills in Nova Scotia which had made the province notable for their Halifax tweeds. In 1908, however, the woollen industry generally was not in a flourishing condition. Of the 157 mills in existence when the census of 1901 was taken, 28 had disappeared before 1908, and several of the 129 that remained were closed either permanently or temporarily. The value of the woollen goods produced in 1908 did not exceed seven million dollars.
The cotton industry, which is well organised and financially strong, has its largest centres at Montreal and Valleyfield, Quebec. The mills, of which there are about twenty-three, are large, modern, and well-equipped, and the value of their output is more than double that of the woollen mills of the Dominion.
The industry which ranks next in importance is probably the manufacture of farm implements and machinery, which is located at Brantford and Hamilton. Hamilton is also the centre of the manufacture of electrical equipment, stoves, wire, steel castings, hardware, and many other products of metal. At Montreal are the Angus shops, which rank with the finest on the North American Continent, at which locomotives are built for the Canadian Pacific Railway, and in 1908 the Grand Trunk Railway established similar shops on a correspondingly modern scale for locomotive building at Stratford, Ontario.
Shipbuilding was an important industry in the maritime provinces and Quebec in the old days of wooden sailing ships; but with the incoming of steamships of iron and steel the maritime provinces entirely lost their old pre-eminence and world-wide reputation for shipbuilding. It was July, 1908, before a steel ocean-going vessel was launched in the maritime provinces. This was a three-masted schooner of 900 tons burden, the James William, which was built in the Matheson Yard, at New Glasgow, N.S. Steel vessels had, however, been built for lake service at Toronto, Collingwood, and Bridgeburg from 1898 onward. At Collingwood and Bridgeburg the largest and finest types of lake freighters and passenger vessels are built. In 1908 a new steel shipbuilding yard was installed at Welland, and plans were completed for the establishment of a large yard at Dartmouth on Halifax Harbour.
Until the development of the prairie provinces, all manufacturing in the Dominion was carried on east of the great lakes. With the opening out of the great wheat-growing regions of Manitoba, Alberta, and Saskatchewan, however, Winnipeg is gradually becoming a great manufacturing city, and many miscellaneous industries on a factory scale have been established there. The most western iron plant—puddling furnaces and a rolling mill—is situated on the outskirts of the city.
According to the figures of the Canadian Manufacturers' Association, as given by Mr. E. J. Freysing, President of the Toronto Section, in July, 1908, there were in Canada at that time 2,465 firms which were either members of the Association or were eligible for membership. These firms employed either on salary or wages 392,330 men, women, and children. This number includes 80,000 engaged in the lumbering business—the largest number engaged in any one trade. Lumbering is carried on in Quebec, Ontario, British Columbia, Nova Scotia, and New Brunswick, and the annual value of the product is over one hundred million dollars—a value only exceeded by the food products of the Dominion.