The Story of Newfoundland

NEWFO

as yet felt the same community with and loyalty to one another as they did with regard to the home country. The relation of Newfoundland to the Dominion of Canada resembles in many ways that of New Zealand to the new Australian Federal system, and in each group of colonies there is a noticeable drift towards centralization. Judge Prowse, who was a strong believer in North American union both from an Imperial and from a Colonial point of view, has fully indicated the difficulties. The Canadian protectionist tariff, the greater attractions of the United States market (inasmuch as the Dominion is a fish producer rather than a fish consumer), the opposition which wide political changes unavoidably excite-all these obstacles were formidable for the moment. It is uncertain even now whether they will be strong enough to prevent, indefinitely, the realization of the Confederate scheme. It is possible that such a union would be followed by some disadvantages to Newfoundland; but, o

ficed to the exigencies of Canadian party politics. It may be added here that in 1902, another separate agreement-the Hay-Bond Treaty-similar to the preceding, was entered into, but was rejected by the United States Senate. Accordingly the Newfoundland Government secured in 1905 the passing of the Foreign Fishing Vessels Act which deprived the American fishermen (more particularly those of Gloucester, Mass.) of the special privileges hitherto conceded, leaving them the right under the Convention of 1818. Disputes arose. The question was discussed at the Imperial Conference in 1907. After temporary alleviation of the difficulties by a modus vivendi, the British and American Governments came to the conclusion that the best remedy lay in a submission to the Hague Court of Arbitration: in 1909 the terms of reference were agreed to, and on September 1910 the award was given.[45] Newfoundland was thereby placed in a very favourable position for dealing with the discrimination exercised against fish exported to America by Newfoundlanders. The points decided were: (1) The right to make regulations as to the exercise of th

n his opening speech to the Legislature, "when a question which has for some time engaged public discussion, viz., the construction of a railway across the island to St. George's Bay, should receive a practical solution.... There is a well-founded expectation that the line of railway would attract to our shores the mail and passenger traffic of the Atlantic ... and thus would be secured those

w towns on the coast, with a great and imperfectly explored interior behind them. Even down to the beginning of the twentieth century very little was known of much of the isla

came the proposal that it should run from St. John's to Hall's Bay, with branches to Brigus and Harbour Grace, covering in all a distance of about 340 miles. A joint committee of both Houses prepar

c partial failures which are incident to such pursuits continue to be attended with recurring visitations of pauperism, and there seems no remedy to be found for this condition of things but that which may lie in varied and extensive pursuits.... Our fisheries have no doubt increased, but not in a

s Harbour Grace; by 1888 a further instalment of some twenty-seven miles was ready between Whitbourne and Placentia; soon afterwards it was decided to recommence building the l

e be continued with the reserve proper to one who is not himself an inhabitant of Newfoundland. Particularly is this true of th

t into the business centre of the town, and finally reached the rich warehouses of Water Street. Eye witnesses describe the heat as so intense that brick and stone offered little more resistance than wood. A mile of wharfage was destroyed, and Water Street completely gutted. "Over a vast area," wrote one who noted the effects, "nothing is now to be seen but tottering walls and chimneys." It was computed that 10,000 persons were left homeless, and that the total damage exceeded 20,000,000 dollars, of which less than 5,000,000 dollars were covered by insurance. The Savings Bank, the Hospital, the Masonic Hall, and the Anglican Ca

ayment of their wages. To make the crisis graver still, the Union Bank was to have provided the interest on the Public Debt, which was payable in London on January 1st. The population feared that the crash would bring about riots and other dread occurrences. In aggravation of the risk the rumour spread that Newfoundland was about to be

her exchanges until an investigation of their affairs had been made. Their bills were protested, and the banks made demands on the Commercial Bank of St. John's, which was the drawer of the bills, and which, being unable to meet the demands made upon it, fell back upon i

fishermen, who gave the catch at the end of the season in exchange. The merchants receive large advances from the only two banks doing business here, the Union Bank of Newfoundland and the Commercial Ba

the fish, and the assets would have been far more valuable. At present, 2,000,000 dollars' worth of fishery products are stored in St. John

y resigned, after an unsuccessful attempt to form a coalition Government, and its successors applied for Imperial help, an application which logically involved the surrender of the Constitution. In fact, the unassisted credit of the colon

ditional loans from the Bank of Nova Scotia and the Royal Bank of Canada: thus "the financial sceptre passed to Canada."[49] At the same time the manager and directors of the Commercial Bank were arrested on a charge of having presented a fraudulent balance sheet. Reuter's corresp

s of unskilled labourers occupied in the handling of the fish. All these men are now without a day's work, or any means of obtaining it. The isolation of the colony, away out in the Atlantic with no neighbour, is its greatest curse. People unemployed cannot emigrate, but must swell an army of industrials depending on the Government for relief. The city is a ve

lief of financial disasters which may be the result of improvidence or extravagance. The Imperial Exchequer is drawn from complex sources, and cannot be diverted to irregular purposes without injustice to large numbers of poor

d tide it over the present temporary difficulties. Up to date the people of this old, loyal colony have received no response. They have been struggling against difficulties in the past, and if they still have to

ssion and the terms on which assistance would be given. To this the answer was inevitable, that all these points must depend upon the findings of the Commission. In fact, the Colonial Government wished for an unconditional loan and an assurrance that the Constitution of the island would not be interfered with. Mr Greene, in turn, proved unable to hold his ground, and was succeeded by Sir William Whiteway. The latter substituted for the earlier proposals a request that the Newfoundland bonds should be guaranteed by the Imperial Government; the suggested Commission being ignored. This was the request referred to in Sir William's letter. Now it is very clear that although the amount involved was relatively small, a very important principle was raised.

d the occasion of the great Reid Contract, which will form the subject of the next chapter. It so happens that the

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r showed that the populatio

. cit.,

aised-notably in 1906, and during the Great

er of Newfoundland; Mr J.G. Blaine

Papers, Miscellaneous,

ee cha

ember 14

od's letter to The Time

ogers,

uary 17t