In the hearings before the Rowell Commission on revision of the British North America Act, the fundamental law for the Dominion of Canada, the brief filed by the Prince Edward Island Government differed strikingly from that of the other eastern Canadian provinces. The Prince Edward Island Government urged measures to restore the provinces to a sound financial basis, even if it meant additional Federal grants for provincial administration. It did not attack the Dominion, but vigorously opposed the plan to unite the three Maritime Provinces as against the interest of Prince Edward Island.
The budget for 1938 submitted to the legislature by Premier Thane Campbell showed an estimated total ordinary revenue of $1,886,701 as against expenditures of $1,934,634, leaving an estimated deficit of $56,933.
In the only by-election of the year, Lester Douglas, Liberal, was named to the Dominion House of Commons by acclamation in Queens, Prince Edward Island.
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