Based in Glasgow and Toronto and later Hamilton, the trading business of Peter and Isaac Buchanan became one of Canada’s largest. The crash of 1857, which abruptly ended an Upper Canadian boom, brought its growth to a halt, and increasing financial problems led to its failure in 1867 and gain in 1872. This history of success and failure reveals much about the Anglo-Canadian trading system and the Upper Canadian economy of the period.
The Buchanans’ timing was excellent in 1834 they began operations in Glasgow and Toronto, early in the prolonged era of growth which by the mid-1850s had transformed Upper Canada from a frontier wilderness to a relatively developed agricultural society. In 1840 they added a large branch in Hamilton. Over the years a number of new partners were admitted, and branches were established in Montreal, New York, Liverpool, and London (Canada West). By 1845 the firm dealt in all the major categories of the colony’s imports. By 1856 Peter’s and Isaac’s initial capital had increased sixteen fold, and the total capital of all partners exceeded £360,000.
The business’s rapid rise indicates something of the processes, extent, and timing of Upper Canadian business and economic development. It also exemplifies the workings of the British export trade, notably Glasgow’s role, and it clearly illustrates the significance of the metropolitan rivalries of the era. The workings of the international credit system are central to the story. And its failure is equally indicative of the changes in the commercial environment after the boom years.
The Buchanans were also significant historical figures. Isaac Buchanan is well known for his career in politics and his many writings on economic issues. His brother played a vital role in promoting the Great Western Railroad of Canada in Britain. Drawing on the voluminous Buchanan Papers in the Public Archives of Canada, this book illuminates a key period in Canada’s economic and historical development.