Heartland, Hinterland, and the Staple Trade

1
Heartland, Hinterland, and the Staple Trade

• Hinterland - Heartland
• Staples
• The Staple Thesis
• Preferential Trade Status and the Reciprocity
  Treaty

2
Hinterland - Heartland

• Under mercantilism the colonial economic system
  European nations sought to control and develop
  colonies with vast resources
• The hinterland was the captive colonial market
  with access to these resources
• The sole purpose was to benefit the homeland, or
  heartland creating prosperity, prestige and power

3
Staples

• A staple is a product that dominates an economies
  exports
• The main staples of the colonies were cod fish,
  beaver fur, timber or lumber, and wheat
• Each of these became staples when the demand for
  the product became great (remember supply and
  demand?)

4
The Staple Thesis

• Developed by Harold Innis
• Innis argues that European expansionism was
  motivated by the desire to export staples to
  enrich the homeland (heartland). Staples
  production in the hinterland developed economies
  and settlement patterns.
• Innis further explains there are three ways a
  staple-based economy can develop with varying
  degrees of success (see next slide)

5
The Staple Thesis

• An economy is most successful when it moves past
  staples production into manufacturing that
  supports staples industries. In time
  manufacturing becomes more important than staples
  production and the economy ceases to be a staples
  producer.
• An economy is moderately successful when it is
  flexible and can shift from one staple to another
  based on demand.
• An economy is unsuccessful when it continues to
  rely on staples even when there are no longer
  enough staple products to provide adequate income.

6
Preferential Trade Status and the Reciprocity
Treaty

• Since 1796 the colonies were given preferential
  trade status from Britain no tariffs (taxes) on
  goods coming from the colonies to the heartland
• The colonies benefited greatly from this
  arrangement, but it was eventually repealed from
  pressure within the British government to develop
  better trading practices with other countries
• Tariffs were charged on products exported from
  the colonies the colonies were facing a
  depression
• The colonies looked to the U.S. for a possible
  solution to this important economic problem

7
Preferential Trade Status and the Reciprocity
Treaty

• Britain negotiated the Reciprocity Treaty of 1854
  as a solution to the economic problems of British
  North America
• The treaty allowed natural resources to pass tax
  free between the U.S. and British North American
  Colonies
• The benefits were immediate and lasted until
  after the American Civil War (1861 1865) when
  demand for staples products went down
• The U.S. then cancelled the treaty

8
Case Study 10

• Please read chapter 8 and record vocabulary.
• In a graphic organizer (chart) show the main
  staples of BNA, why they were in demand, and the
  impact of each staple on the heartland and
  hinterland. (see sample chart on next slide).
• Based on your reading of this chapter, where
  would you place British North America on Innis
  levels of success in his Staples Trade Thesis?
  Why? (See page 99).
• Please answer the connections block on page 101
  in the lower right corner.

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Question 2 sample chart