Why was Montreal economically larger than Toronto at the time of Canadian Confederation?

At the time of Canadian Confederation in 1867, Montreal was the largest metropolitan center in Canada, with a population twice that of Toronto. Montreal’s economic dominance was primarily rooted in its long-standing role as a vital transportation and commercial hub.123

Several key factors contributed to this position:

• Strategic Location: Situated at the confluence of the St. Lawrence River and the Ottawa River, Montreal served as a natural gateway for trade, connecting the interior of the continent to the Atlantic Ocean.23
• Transportation Infrastructure: Montreal successfully transitioned from the fur trade to a broader economy based on timber and agricultural exports. The development of the Lachine Canal and subsequent railway expansion in the 1850s solidified the city as a central hub for the movement of goods.24
• Industrialization: Its status as an international port with extensive rail connections made it an ideal location for manufacturing, including textiles, food processing, and metal goods.24

While Toronto was growing rapidly due to its own agricultural hinterland and strong trade ties to the United States, it remained economically linked to Montreal’s sphere of influence via the St. Lawrence trade route at the time of Confederation.1