Canada became a country, the Dominion of Canada, in 1867. Before that, British North America was made up of a few colonies and the vast area of Rupert's Land (administered by the Hudson's Bay Company), which included the North-West Territory and all of the Prairies.
By 1864, many felt that it would be good to join together in one country. This mood deepened when the U.S. Civil War ended and tens of thousands of trained soldiers were freed up and long-standing feeling in favour of U.S. aggrandizement projects strengthened.
The U.S. had already invaded Canada twice before and fear of the unemployed soldiers coming north and consuming the separate BNA colonies one by one was strong.
The name Canada harkens back to 1500s.
The name “Canada” likely comes from the Huron-Iroquois word “kanata,” meaning “village” or “settlement.” In 1535, two Aboriginal youths told French explorer Jacques Cartier about the route to kanata; they were actually referring to the village of Stadacona, on the site of present-day City of Québec.
By the mid-1800s the name was used for Upper Canada (Ontario) and Lower Canada (Quebec), and for the United Province of Canada during the time they were joined together in one colony, 1841-1867.
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