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The American Civil War affected Canadian Confederation for military, political, and economic reasons. The Northern army had one million soldiers just below the border, and virtually nothing was stopping them from marching North. The entire population on Canada at the time was 3 230 000. The military threat is commented on by Sir John A. Macdonald in his speech to the Upper and Lower Canadian MPs in February of 1865: "still we cannot trust to probabilities" says Macdonald. He is sure that the threat was real. The political reasons for Confederation were simple. America demonstrated that giving states too jurisdiction and not having enough emphasis on the federal government was a problem. This is what they called "state rights." Macdonald and the other fathers of Confederation realized this and it facilitated the creation of Canada. The economic effects of the Civil War on Confederation had to do with Britain. If Canada was to remain a colony under Britain and not form a country, it would inherit the consequences of being British. We would suffer economically in our trading with the United States because they did not have the best relations with Britain. And at this time since we were edging even closer to economic relationships with America (Reciprocity was to come in 1891), we could suffer that way.

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Q: How did the American Civil War affect Canadian confederation?
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