As a small country which relied primarily upon the export of fish, paper, and minerals, Newfoundland was hit very hard by the
Great Depression. Economic frustration combined with anger over government corruption led to a general dissatisfaction with democratic government. On 5 April 1932, a crowd of 10,000 people marched on the
Colonial Building (seat of the
House of Assembly) and forced Prime Minister Squires to flee. Squires lost an 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.
[2]
In 1934, the Dominion suspended Newfoundland's self-governing status and the
Commission of Government took control. Newfoundland remained a dominion in name only.
[9] Newfoundland was ruled by a governor who reported to the colonial secretary in London. The legislature was suspended.
[10]
The severe worldwide
Great Depressionpersisted until the Second World War broke out in 1939.