Dominion of Newfoundland - End of Responsible Government

End of Responsible Government

As a small country which relied primarily upon the export of fish, paper and minerals, the Great Depression hit Newfoundland very hard. Economic frustration combined with anger over government corruption led to a general dissatisfaction with democratic government. On 5 April 1932, a mob of 10,000 people marched on the Colonial Building (seat of the House of Assembly) and forced prime minister Squires to flee. Squires lost the election held later in 1932. The next government, led once more by Alderdice, called upon the British government to take direct control until Newfoundland could become self-sustaining. The United Kingdom, concerned over Newfoundland's likelihood of defaulting on its war-debt payments, established the Newfoundland Royal Commission, headed by a Scottish peer, William Mackenzie, 1st Baron Amulree. Its report, released in 1933, assessed Newfoundland's political culture as intrinsically corrupt and its economic prospects as bleak, and advocated the abolition of responsible government and its replacement by a Commission of the British Government. Acting on the report's recommendations, Alderdice's government voted itself out of existence in December 1933.

In 1934, the Dominion suspended Newfoundland's self-governing status and the Commission of Government took control. Newfoundland remained a dominion in name only. A severe depression persisted until the Second World War broke out in 1939.