Newfoundland History

Newfoundland in 1933

[ Canadian Annual Review , 1933; for the full citation see the end to the text]

 

Canadian Government Relief Guarantees : Certain guarantees, under authority of Section 2 (b) and (c) of the Relief Act, 1932 , were given by the Dominion Government during the year 1932-33; the Orders-in-Council setting forth the provisions of the guarantee (supplied by the Department of Finance) are as follows:

 

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[To the] GOVERNMENT OF NEWFOUNDLAND - P.C. 538 , March 22, 1933 : guaranteeing repayment of a loan of $625,000, and interest thereon, made by certain Canadian chartered banks to the Government of Newfoundland.

 

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Following the assumption of office in June, 1932, by the new Government (United Newfoundland), with Hon. F. C. Alderdice as Prime Minister, the inauguration of drastic economies led to hopes of an Actual Surplus for the fiscal year 1932-33; these, however, were doomed to disappointment. In December, 1932, the Prime Minister was forced to approach the Governments of the United Kingdom and Canada for assistance in paying the installment due on her External Debt on Jan. 1, 1933. A joint loan of $1,250,000 was made available by the two countries on the condition that Newfoundland should consent to the appointment of a Royal Commission to investigate the affairs of the country. The Commission, composed of Rt. Hon. Lord Amulree, G.B.E., K.C. ( United Kingdom ), C. A. Magrath, LL.D. ( Canada ) and Sir William Stavert, K.B.E. ( Newfoundland ) commenced its labours in March, 1933.

 

In his financial statement to the House of Assembly on June 29, 1933, the Minister of Finance (Mr. Alderdice) stated that there had been an actual Deficit for 1931-32 of $4,029,339. The Surplus of $29,893, with Revenue of $10,180,000 and Expenditure of $10,150,107, estimated for 1932-33 by his predecessor in office, had, due to a continued decline in Revenue and in spite of every effort at economy, been turned instead into a Deficit of $3,381,000. A prospective Deficit of $2,145,167 was reported for 1933-34. Pending the Report of the Royal Commission, the United Kingdom Government again offered to come to the Dominion's aid to make up the balance of interest due on her Public Debt on July 1. As the Government of Canada had regretfully stated that similar action on their part would not be possible at that time, a grant was made to Newfoundland by the United Kingdom totalling £400,000.

 

Source : " Newfoundland ", in the Canadian Annual Review of Public Affairs, 1933, Toronto, The Canadian Review Company, 1934, pp. 461-462, 483.