1942: Newfoundland

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.

1941: Newfoundland

Development of the naval and air bases for the United States brought relatively boom conditions to Newfoundland after years of severe depression. Although the base at Argentia was by no means completed at the end of 1941, tremendous progress had been made since the first American contingent landed in January. Many hangars, piers, boathouses, maintenance shops, storehouses, hospital facilities, and barracks were completed, and the huge air base took form. This work provided thousands of jobs for native Newfoundlanders at good wages. There was some dissatisfaction, however, at the fact that most of the skilled work was done by men brought from the United States who were paid at a higher rate than the Newfoundlanders. Through an arrangement made with the British Government, American supplies brought to the bases pay no duty. This also caused some disappointment on the island, but Newfoundland newspapers have, in general, supported the arrangement as a war necessity.

In view of Newfoundland's increased importance in the defense of the Empire, the British Government announced on July 9, that the term of Vice Admiral Sir Humphrey Thomas Walwyn as Governor had been extended for one year from that date. Sir Humphrey had first been named Governor of the Crown Colony on Jan. 16, 1936, for a three year term which subsequently was extended.

Special congratulations were extended to the people of Newfoundland during the year by Prime Minister Winston Churchill because the island had contributed proportionately more men to the war effort than any other part of the British Empire. On several occasions Newfoundland had exceeded its quota in recruiting drives for men to join the armed forces.

1940: Newfoundland

The agreement between the British Government and the Government of the United States permitting the United States to establish a naval and air base on the southern coast of Newfoundland as part of a general arrangement involving the transfer of fifty over-age destroyers to Britain, was the island's chief contribution to world news in 1940. The agreement was received with satisfaction throughout the colony, as was the announcement, in November 1940, that all details had been settled regarding the base.

In August, prior to the announcement of the British-American agreement, it had been announced that Canadian and Newfoundland officials had reached 'general agreement on all points' concerning the defense of Newfoundland with special regard to the island's position as the 'first line of defense of the North American hemisphere.' It was understood that Canada would take full responsibility for the defense of the Crown Colony. Canadian land and air forces had already been on Newfoundland soil for some months.

On Aug. 27, it was announced that the first contingent of Newfoundland troops, numbering several thousand, had reached a west coast British port to participate in the defense of the mother country.

As a contribution to the mother country's war effort, Newfoundland cut its dependence on the British Imperial Treasury during the year. Taxes were drastically increased with a view to bringing the annual revenue to $13,525,116, a record figure, and the budget provided a cut in expenses to an anticipated $15,449,965 as against $16,572,629 in the fiscal year 1939-1940. This left a deficit of only $1,924,849, the lowest for many years.

Sir Richard Anderson Squires, Prime Minister of Newfoundland from 1919 to 1923 and from 1928 to 1932, died in St. Johns on March 26, after an illness of six months.

1939: Newfoundland

Newfoundland's recovery from the economic stagnation which has engulfed the colony for many years was greatly stimulated during 1939 by the launching of an elaborate reconstruction program designed to give it a more balanced economy. The plan, as announced early in July by Finance Commissioner John H. Penson, called for an expenditure of nearly $4,000,000 on public works. Included in the program were outlays for agricultural development, land settlement, road and bridge work, public health, education, and the encouragement of new industries. The largest single item — $1,608,250 — was for road and bridge work, and $986,000 was set aside for agricultural development.

No attempt was made to balance the colony's budget. It was estimated that expenditures for the current fiscal year would total $17,116,900, while revenues were placed at only $11,381,700. The British Government is expected to contribute £1,150,000 to make up the deficit.

Among the greatest of Newfoundland's projects is the Newfoundland Airport, equipped to handle transatlantic land and sea planes, and scheduled to open in September 1940. It is situated forty miles west of Botwood. Its runways are among the largest in the world. Three of these are 4,500 feet long and 600 feet wide, while the main runway is over 4,800 feet long and 1,200 feet wide. The illumination is of the most modern type.

As an aid to the fishing industry, the Government announced in May that it would continue the practice adopted in the previous year of guaranteeing minimum prices to cod fishermen.

King George and Queen Elizabeth stopped briefly in Newfoundland in June on their return from their epoch-making trip to Canada and the United States. The monarchs, first to visit the oldest of Britain's colonies, received a tumultuous welcome and were tendered an elaborate official reception.

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.