1938: Newfoundland

Despite some improvement in general political and economic conditions, Newfoundland found 1938 an unusually turbulent year. In contrast with the situation a few years ago, the budgetary status of the colony was exceptionally good. Newfoundland's revenues of £2,455,000 — as reported on July 5 by J. H. Penson, Commissioner for Finance — were the greatest in the country's history. The budget for the forthcoming year showed estimated revenues of £2,280,600 and expenditures of £3,070,400 — the largest estimated outlay in Newfoundland's history. No increase in taxation was provided for, and the deficit is expected to be fully covered by grants from the British Government. A sum of £281,300 was set aside for a long-term reconstruction program, including development of fisheries and agriculture, the encouragement of education and public health, and a housing scheme. An additional £250,000 was earmarked for short-term aid for fisheries and unemployment relief. The cuts which had previously been made in war pensions, teachers' salaries, and old-age allowances were fully restored. At the end of November the Newfoundland Government announced that Bowater Lloyd had purchased some 5,000 square miles of timber land, and it was believed that this action would relieve, to some extent at least, the slump in the lumbering industry.

Increased governmental expenditures did not, however, wholly allay the discontent of Newfoundland's huge relief population. Serious demonstrations against the relief allotments occurred in Bonavista in June and Bonne Bay in August. On the latter occasion 200 unemployed attempted unsuccessfully to seize two members of the Newfoundland Commission Government aboard a cruiser with a view to imprisoning them for a week and feeding them the regular dole ration. Quick action by the captain of the cruiser prevented the success of the plan. Early in December, employees of the Newfoundland telegraph system, a subsidiary of the Post Office and part of the civil service, struck and tied up telegraphic communications for several days. The strike was caused by the failure of the Government to recognize the telegraphers union.