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Word Count: 676
The major factor of the linking of Canada was the Canadian Pacific Railway CPR The CPR began in 1880 and was completed in 1885 The significance of this railway was that it linked Montreal and central Canada to the west coast Eastward it linked Montreal with the Maritimes which was part of MacDonalds National Policy The USA took this development as a threat The Canadian Pacific Railway is politically and economically important for developing the status of Canada There were extended negotiations between the supporters of MacDonalds National Policy led by the owner the of Bank of Montreal George Stephen and the owner of the Hudsons Bay Company Donald Smith who helped raise money in England This group was under British Canadian control and the offers were reasonable The CPR had 25 million acres of fertile western land near to the rail line and also received 25 million dollars from the government The costs varied greatly from the original estimations and it became harder to raise capital The last iron spike was hammered in by Donald Smith as the western moving team met with the eastern moving team from Port Moody In 1871 the Canadian government under MacDonald suggested building a railway from Central Canada to link the west and the east together In 1873 the changed government banned MacDonalds contract for building the railway Five years later MacDonald came back to power and initiated a new association to build the railway In 1880 a syndicate was arranged to start building the railway until the CPR was making 10 of its invested capital In 1885 the last spike was hammered some reports say that it is gold and some say it is iron Twelve years later the freight rates were reduced because of the Crows Nest Pass Agreement There were numerous problems the consortium had to take into consideration while building this railway such as the blasting of the preCambrian shield north
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