Commission of Government
Newfoundland's economy experienced many cycles of recession. Its government's finances collapsed completely in the early 1930s due in part to considerable debts incurred by the government in its aid of the allied effort during the first world war and the large government debt acquired in constructing a railway across the island. Economic collapse led to political crisis. In 1932, due to economic dislocations brought about by the Depression, government corruption and a resulting riot and the lingering effects of a large public debt, most of which was incurred during World War I, the Newfoundland economy collapsed and the government was forced out of office. A new government led by Frederick C. Alderdice came to power after promising to ask the British Government to appoint a Royal Commission to inquire into the possibility of suspending responsible government. That Royal Commission recommended a "rest from politics," after which the Newfoundland legislature requested that the British appoint a Commission of Government. In February 1934 the island reverted to something similar to crown colony status. A Commission of Government was established to govern the Dominion.
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