government-funded social services. Thousands of women entered the
heavy workforce, including dangerous occupations such as manufac-
turing munitions. Eager to help in the war effort, women also wanted
to break the long-standing obstacles to their presence in vocations
outside of education, clerical work, and light factory employment. The
country’s economy expanded dramatically as it gained a major role in
providing war materiel and foodstuffs for the Allied effort. Canadian
factories churned out goods that ranged from clothing to ships. The
war effort considerably boosted grain production and increased the
market for minerals and timber products.
The federal government expanded its power during the war to
orchestrate economic production. By 1918 it actively regulated
everything from crop distribution to the right of laborers to strike.
Under the leadership of the successful businessman Joseph Flavelle,
for example, the Imperial Munitions Board became a model of
efficiency. The war’s legacy for Canada’s economy was in fact two-
edged. The furious expansion of its productive might, particularly in
the East, edged the country closer to an industrial-oriented economy.
There was little question that war was good for business and massive
employment. Detracting from the glow provided by a flush economy
was an increase in inflation, the institution of income and business
profits taxes, and a rationing of goods and foodstuffs. Although a
series of Victory Bond drives raised millions of dollars—over eighty
percent of the total cost of the war effort—they ultimately placed the
country in tremendous debt. The government also moved during the
war to take control of the vast railroad networks that had been
constructed in a bout of enthusiasm at the turn of the century. With
western expansion peaking before the war, the Canadian Northern
and the Grand Trunk Pacific soon faced bankruptcy. The govern-
ment’s absorption of these and other troubled railroads led to the
creation of the Canadian National Railways by the early 1920s.
The war exacted its most severe domestic toll on Halifax, which
served as a staging ground for convoys of merchant ships before they
headed across the Atlantic. In December 1917 two ships collided in the
city’s harbor. In a devastating moment, the explosion of a French ship
packed with munitions flattened a great portion of the city, created a
tidal wave, and set off fires that ravaged the surrounding area. More
than 1,600 perished, and thousands were wounded. The Halifax
tragedy stands in history as the largest man-made explosion before the
Canada and the Great War 125
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