There were no significant political developments in Prince Edward Island during 1942. The province voted decisively to grant Prime Minister Mackenzie King's request for release from his 1940 pledge not to conscript men for overseas service and, in general, gave wholehearted support to the Government's war program.
Under an agreement between the provincial government and the Federal Treasury, the province agreed to accept annual payments of $701,943, which is the net cost of servicing the provincial debt, as compensation for relinquishing the right to levy income and corporation taxes for the duration of the war.
The population of Prince Edward Island in the 1941 decennial census was 93,919 as compared with 88,038 in 1931. The province retained its two seats in the Dominion House of Commons.
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