Public enterprise as an expression of sovereignty: reconsidering the origin of Canadian National Railways

Railway nationalization, the anvil on which national public enterprise was hammered together between 1917 and 1923, forms a misunderstood episode in the development of the Canadian state. This article examines the convergence of domestic politics and international economics that facilitated an unprecedented transformation of Canada's capacity to control its economy. State autonomy was used to create public enterprise as an instrument by which the gains of industrial restructuring could be distributed to favoured domestic financiers while its costs were imposed upon foreign investors. This power to manage the gains and losses arising from industrial change formed a new expression of economic sovereignty, one that ought to be viewed as an important step in the transition from imperial to national governance.