The Daily News MONDAY, JUNE 3, 1935. NEWFOUNDLAND FUTURE.

Taranaki Daily News, 3 June 1935, Page 4

The Daily News

MONDAY, JUNE 3, 1935. NEWFOUNDLAND FUTURE.

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Newfoundland, the oldest of Great Britain’s colonies, was the first self-governing Dominion to have the unhappy experience of relinquishing self-government because of economic collapse. For some years the finances of the island had been drifting and rumours of malfeasance among Ministers were current. In 1932 the Ministry was defeated by the Conservatives led by Mr. F. C. Allerdice, with, financial inquiry and reform as th 6 chief plank in his political platform. The Treasury was bankrupt, oversea interest could not be met, federation with Canada no longer appealed to the Government at Ottawa, while unemthe decline of the fishing industry had' reduced the inhabitants of Newfoundland to despair. Some unpleasant political scandals were discovered and cleared up, but the Allerdice Ministry found it impossible to rearrange the Dominion’s finances. An appeal was made to Great Britain and an investigation of the position was made by a board of inquiry set up by the Imperial Government. As the result of its findings the financial assistance required from Britain was offered, but only on condition that self-government was' suspended and Newfoundland administered by a'Commission working undei’ the authority of the Governor, Sir D. N. Anderson, also appointed by the King. The terms were accepted, but due regard was paid to local susceptibilities when the Commission was appointed. > Mr. Allerdice and ( His former Secretary of State, Mr. J. C. Puddester, were appointed, their colleagues being Sir J. Hope, an administrative officer who had administered the Flood Relief Commission in China in 1932, Mr. T. Lodge, an experienced English civil servant, and Mr, E. N. Trentham, one of Britain’s Treasury officials, who had assisted in "the investigation of the Colony’s finances. The new authority was well equipped with knowledge of local affairs and customs and the temporary

transfer from Dominion status to that of a Crown Colony was inaugurated without any difficulty. The most urgent prob-

lem before the Commission was that ■ of ■ unemployment, Newfoundland’s principal industry, deep sea fishing, having suffered from the lack of demand in Europe for its products. The Commission has now completed its first year’s work, and according to extracts from its report to the Minister for the Dominions, Mr. J. H. Thomas, which were cabled last week, some improvement in the economic position has been achieved, earnings of the fisheries having increased during the year by a million dollars. The total population of the colony 'is under 300,000, of which the’ majority depend upon the fishing industry, the capital, St. Johns, being the only city with a population of over 5000. As the fisheries depend almost entirely upon export trade the

task of the Commission has been difficult, and it'is quite evident that with Britain’s assistance and the most prudent administration, the recovery 1 of Newfoundland must be a slow process. The land settlement plans for reducing unemployment, referred to in the Commission’s report, appear to be a continuance of the policy begun some years ago when railway construction was increased in order to open up the forest lands foi* closer settlement. It was considered by some authorities that railway construction had been faster than the resources of the colony warranted, but it is admitted that much of the inland territory is suitable for closer settlement, and that mining may also develop into a profitable industry since transport by rail has been made possible. The fact that in spite of heavy taxa-

tion there has been no criticism of the new form of administrative control seems to indicate that the Commission is accomplishing its task successfully. Nevertheless the younger leaders in the colony have made no secret of the fact that such control must be ended as soon as Newfoundland is once more selfsupporting. They urge, and their views are likely to receive support in Great Britain and in the other Dominions, that the best of good government can never bestow permanently upon a British settlement the benefits that accrue from self-govern-ment. Judging from the Commission’s first report, however, the island’s return to Dominion status is still a long way off.