Part 6 (2/2)
FOOTNOTES:
[40] Prowse, p. 473.
CHAPTER VIII
MODERN NEWFOUNDLAND
In 1869[41] took place a General Election, in which great Imperial interests were involved. Governor Musgrave, in 1866, had advised Federal union with the Canadian provinces--then about to federate among themselves--and the election three years later was fought upon this issue. The result was a complete rout for the Federal party; a rout so complete that the question has hardly since reappeared within the field of practical politics. The causes of this defeat were, in the first place, economic considerations; secondly, Irish national feeling and hostility to the union; and thirdly, a certain distrust and dread of Canada. Judge Prowse, whose intimate knowledge of Newfoundland ent.i.tles his opinion to special respect, thinks that even in recent years there lingered some rankling memory of the days when French Canadian raids terrified the colonists in the seventeenth and eighteenth centuries.[42] However this may be, it is certain that the outlying portions of the Empire hardly 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, on the other hand, the gain would be very great.
The politics of the colony would be braced by the ampler atmosphere of the Dominion, and the tendency towards parochialism finally arrested.
The geographical difficulty ceased to exist when the United States taught us how vast are the areas over which successful political unions are possible. No one can fairly ask that Newfoundland should take the step in the teeth of her own material interests; but, a.s.suming that union with Canada can be reconciled with those interests, the Imperial issue holds the field. Its importance can hardly be overstated. So soon as the several communities, which together form the Empire, realize not merely their ties with the Mother Country, but also their own organic interconnection, from that moment the whole Imperial idea receives an immense accession of strength.[43] But it is now elementary that Newfoundland, and Newfoundland alone, can take this decision. She is the mistress of her own destinies.
It is unfortunate that the Blaine-Bond incident in 1890 should have excited ill-feeling against Canada in the older colony. In September of that year a treaty of trade regulating the purchase of bait, etc., the s.h.i.+pping of crews, and trans.h.i.+pment of cargo (called, from the delegates employed on each side,[44] the Blaine-Bond Treaty) was informally negotiated between Newfoundland and the United States, and a draft of a convention was prepared. In the following December this draft was modified, but in January 1891, Mr Blaine submitted a counter-proposal, which the United States were disposed to accept, though they were not really anxious to effect the arrangement. The treaty had been submitted to the Colonial Office, and approved by it; but the ratification of the Imperial Government was refused at the last moment. Probably the refusal would have caused less irritation in the colony if it had sprung from Imperial considerations; as a fact, it was procured by Canadian remonstrances against Newfoundland's separate action in a matter concerning Canada also, and it was felt in Newfoundland that the island had been sacrificed 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 pa.s.sing of the Foreign Fis.h.i.+ng Vessels Act which deprived the American fishermen (more particularly those of Gloucester, Ma.s.s.) of the special privileges. .h.i.therto 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 the liberty to take fish, under the Treaty of 1818, is inherent to the sovereignty of Great Britain; (2) The United States has the right to employ non-Americans in the fisheries, but they are not ent.i.tled to benefit or immunity from the said Treaty; (3) While American fis.h.i.+ng vessels may be required to report at colonial ports when convenient, such vessels should not be subject to the purely commercial formalities of report, entry, and clearance at a Custom House, nor to light, harbour, or other dues not imposed upon Newfoundland fishermen; (4) American fis.h.i.+ng vessels entering certain colonial bays, for shelter, repairs, wood and water, should not be subject to dues or other demands for doing so, but they might be required to report to any reasonably convenient Custom House or official; (5) In the case of bays, mentioned in the Treaty of 1818, three marine miles are to be measured from a straight line drawn across the body of water at the place where it ceases to bear the configuration and characteristics of a bay. At all other places the three marine miles are to be measured following the sinuosities of the coast.
To return to the period now under consideration. It saw a bold attempt to deal with the Poor-law scandal. Relief to able-bodied persons was discontinued in 1868. A succession of good fis.h.i.+ng seasons, and the development of the mining industry, lessened the difficulty of the step. Seven years later came a still more momentous proposal. ”The period appears to have arrived,” said Governor Hill, in 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 sh.o.r.es the mail and pa.s.senger traffic of the Atlantic ... and thus would be secured those vast commercial advantages which our geographical position manifestly ent.i.tles us to command. As a preliminary to this object a proposition will be submitted to you for a thorough survey, to ascertain the most eligible line, and with a view to the further inquiry whether the colony does not possess within itself the means of inducing capitalists to undertake this great enterprise of progress.”
It is easy to forget, in speaking of Newfoundland until 1875, how very little was known of the interior. The Newfoundland with which we are concerned consisted in fact of a few 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 island. It is difficult to a.s.sign limits to the developments which are probable when a thorough system of internal communication shall have given free play to each latent industry.
The first proposal was that a railway should be constructed from St.
John's to St. George's Bay, but objections were made from England on the ground that the line would end on the French sh.o.r.e. Then 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 prepared a report, which became the basis of the Bill (1880). One sentence is worth quoting, because it states very clearly the difficulties which have played so large a part in the history of Newfoundland:
”The question of the future of our growing population has for some time enjoyed the earnest attention of all thoughtful men in this country, and has been the subject of serious solicitude. The fisheries being our main resource, and to a large extent the only dependence of the people, those periodic 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 measure corresponding to our measure of population; and even though they were capable of being expanded, that object would be largely neutralized by the decline in price which follows from a large catch, as no increase of markets can be found to give remunerative returns for an augmented supply.”
The Act was pa.s.sed, which empowered the raising of a loan of 1,000,000 for the purpose of constructing the proposed railway. By November, 1884, the line was completed as far as 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 line northwards from St. John's to Hall's Bay, which has been discontinued through the failure of the contractors, and to carry out the scheme the Reid Contract was entered into.
We are now reaching a period when the leading parts are played by persons still or recently living, and the story must therefore be continued with the reserve proper to one who is not himself an inhabitant of Newfoundland. Particularly is this true of the much discussed Reid Contract, the circ.u.mstances of which are reserved, from their great importance, for a separate chapter.[46]
It is unfortunate that the ensuing stage of this short narrative should be marred by so much trouble, but, in fact, the last ten years of the nineteenth century have been among the most disastrous in the history of the island. In 1892 came the most destructive of all the fires with which St. John's has been afflicted. The fire broke out in a stable at five o'clock on the afternoon of Friday, July 8th, and lasted until nine o'clock on Sat.u.r.day morning. It came at the end of a month's draught, was helped by a powerful wind, and found the town with a depleted water supply. Arising in an eastern suburb, the flames were carried right 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 wharf.a.ge 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 Cathedral, alike perished. To complete the misery of the sufferers, it soon became known that the food supply remaining was only sufficient for ten days. As in 1846, the sympathy of Canada was promptly and warmly shown. The day after the fire 4,000 dollars' worth of provisions were sent over, and military tents sufficient to shelter 1,200 people. In England, a Mansion House fund was immediately opened by the Lord Mayor of London, and its final amount fell little short of 20,000. Sir Terence O'Brien, the Governor, and Lady O'Brien, happened to be in England at the time, and they threw themselves warmly into the cause of the colony.
In 1894, a misfortune of a different kind happened. On Monday, December 10th, the Commercial Bank, the Union Bank, and the Savings Bank, which had all been long established, were compelled to suspend payment. A widespread panic followed, and all business was paralysed.
Workmen were dismissed wholesale, no money being available for the payment 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 incorporated into the Dominion of Canada as a mere province. The Government telegraphed to the authorities in London for an immediate loan of 200,000, and requested that a wars.h.i.+p should be despatched in view of imminent disturbances. The causes which led immediately to the failure were well stated in a Dalziel telegram to _The Times_:[47]
”The immediate cause of the financial crisis which has overwhelmed Newfoundland was the death of Mr Hall, a partner in the firm of Messrs Prowse, Hall & Morris, the London agents of the firms exporting fish to European markets. On his death the firm declined to meet further 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 its mercantile customers. These could not respond, and the bank had to suspend operations. The customers were compelled to make a.s.signments, and nearly every business house in the colony was crippled, so interwoven are the affairs of one establishment with those of another.
”The situation was only possible under the peculiar business customs of the colony. The fis.h.i.+ng industry here is pursued under a system of advances for vessels and equipments made by the merchants to the 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 Bank.
By backing each other's bills the banks are enabled to carry on operations, and then at the close of the year, when the produce of the fisheries is realized, they are able to settle their overdrafts.
”The disaster happened at a most unfortunate time. If it had been postponed for another month the merchants would have realized on most of the fish, and the a.s.sets would have been far more valuable. At present, 2,000,000 dollars' worth of fishery products are stored in St. John's awaiting the means of s.h.i.+pment. Until financial aid from the outside world is obtained, it is impossible to place the fish on the market.”
At this time the financial position of the colony was thoroughly unsound. Its population numbered roughly 200,000 persons, and its Public Debt amounted to 14,000,000 dollars, or nearly three million pounds sterling. The Ministry of the day 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 Const.i.tution. In fact, the una.s.sisted credit of the colony seemed hopeless, for in a year or two the railway reckonings had to be met. The Government had issued bonds whereof yearly interest was to become payable on completion, amounting to almost a third of the total revenue of the colony.[48]
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