There were many factors …show more content…
Newfoundland was known for paper, iron ore, and cod exports, which was a major source of income for the country. Following the Great Depression, there was a drop in the international market for dried cod, which resulted in steadily declining cod prices. A quintal of cod which sold for $8.90 in 1929, only sold for half that amount by 1932. Since there were fairly low profits at this time and many wage cuts, companies were forced to lay off workers, especially in the forestry and mining industries. Thousands of men and women were unemployed. The government again, could not afford to spend on effective services and programs to help the general public during this rough patch, as it was difficult to obtain loans during the 1930s and could not meet interest payments without British intervening. Matters hit an all time low in 1933 when Newfoundland owed close to $100 million and faced bankruptcy. The relief programs that were supposed to aid people during this time, continued to not help at all, and many people were still left without the necessities needed to support themselves and their families. The introduction of the Dole program was resented by many. Payments were small and only provided half a person’s total nutritional requirements. Instead of being able to choose their own groceries, people had to accept food items on a list, and survive on those items alone. Malnutrition was prominent and often led to diseases like tuberculosis, beriberi (vitamin B-1 deficiency), and even, several deaths. Poor diets also contributed to a rising infant mortality rate. Filled with anger, unemployed workers took to the streets to ask the government for jobs or for better and more effective relief payments. Things quickly escalated to rage when allegations of fraud against the Prime Minister of Newfoundland, Sir Richard Squires came to light.