In the little more than a year and a half that American and Canadian forces have been stationed in Newfoundland, the island has undergone profound economic and political changes. From a poverty stricken colony in which a large part of the population existed on meagre relief allotments, Newfoundland has become relatively prosperous. Living standards have risen sharply as a result of the vast construction work at the two great United States bases, Fort Pepperell and Argentia, and the smaller base Stephenville, on the west coast of the island. The Canadian army has also been active developing bases of its own, but the location and extent of these bases are a military secret. The prosperity brought about by these vast enterprises has been reflected spectacularly in the changed financial position of the Newfoundland government. After years of deficits, many of them of substantial proportions, the island government enjoyed a surplus of some $9,000,000 in the fiscal year 1942 out of a total revenue of more than $24,000,000. Indicative of the general growth in prosperity is the fact that the income tax yielded substantial revenue for the first time in the colony's history.
With the return of prosperity there has arisen a demand that Newfoundland be restored to its previous status as a self-governing dominion. Many Newfoundlanders deny that the Assembly which voted in 1933 to ask Britain to take over the rule of the island, thus reducing it to a Crown Colony, had the power or the mandate to take such drastic action. The Commission of six which has taken over the government of the island has become highly unpopular. It is alleged that the Commission has no contact with the people, no feel of public opinion, that it has lacked integration in its rule, and that it has sacrificed any influence that Newfoundland may have had in its relations with the outside world. Despite these criticisms, few Newfoundlers expect a return of self-government during the war in view of the island's vital strategic position.
One hundred and four lives were lost in a fire that destroyed a Knights of Columbus recreation hall at St. John's on the night of Dec. 12. A number of American and Canadian soldiers were included among the dead.
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