University of Calgary PRISM: University of Calgary's Digital Repository University of Calgary Press University of Calgary Press Open Access Books 2018-10 Reconsidering Confederation: Canada's Founding Debates, 1864-1999 University of Calgary Press Heidt, D. (Ed.). (2018). "Reconsidering Confederation: Canada's Founding Debates, 1864-1999". Calgary, AB: University of Calgary Press. http://hdl.handle.net/1880/108896 book https://creativecommons.org/licenses/by-nc-nd/4.0 Attribution Non-Commercial No Derivatives 4.0 International Downloaded from PRISM: https://prism.ucalgary.ca RECONSIDERING CONFEDERATION: Canada’s Founding Debates, 1864–1999 Edited by Daniel Heidt ISBN 978-1-77385-016-0 THIS BOOK IS AN OPEN ACCESS E-BOOK. It is an electronic version of a book that can be purchased in physical form through any bookseller or on-line retailer, or from our distributors. 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Acknowledgement: We acknowledge the wording around open access used by Australian publisher, re.press, and thank them for giving us permission to adapt their wording to our policy http://www.re-press.org 10 Newfoundland and Canada: Confederation and the Search for Stability Raymond B. Blake In September 1864 when Maritime politicians met at Charlottetown to consider union, Newfoundlanders were not invited. They were, however, asked to Quebec City, when delegates reassembled there a month later. Conservative Deputy Premier and Protestant, F.B.T. Carter, and Ambrose Shea, Liberal Leader and representative of the Catholic minority, were ex- cited about Confederation. They saw Confederation as Newfoundland’s best hope to deal with its depressing isolation, reliance on a single staple commodity (codfish), and a way to spur economic diversification. Though Confederation had its proponents, union was overwhelmingly rejected in the 1869 election because voters saw no economic or political benefit. The issue of Confederation arose periodically after 1869, but it was not serious- ly debated again until after the Second World War. During this later de- bate, proponents of union argued that Confederation would provide eco- nomic and social security as well as rid Newfoundland of its long history of underdevelopment and poverty. The opponents of Confederation again fought to maintain the country’s independence and sovereignty, promis- ing never to sell their birth-right to Canada. While the debate might have been similar, the outcome was not. Confederation had a powerful cham- pion in Joseph R. Smallwood and a rural population that demanded the state take a great interest in their social and economic well-being. In 1949, 237 Newfoundlanders opted for union with Canada by majority vote. Newfoundland in the 1860s In the 1860s Newfoundland was neither great in population nor wealth. Many of its 162,000 residents were dispersed along the coastline and de- pended on the cod and seal fisheries, which together accounted for 95 per- cent of exports. Any decline in catch, such as had occurred in the 1860s, created social and economic paralysis. In the four years to 1865 the debt grew from £18,000 to £36,000 as the country experienced its worst eco- nomic depression in twenty years. The government ran a deficit on current account, and relief payments accounted for 23 percent of current revenue as poverty levels rose dramatically.1 In the mid-nineteenth century, Newfoundland struggled with the quality of its human capital as defined by literacy and education, which had become an essential tool for fostering a better personal and national life and for spurring a lively intellectual debate about a nation’s goals. High levels of education and literacy are necessary for social transformation and liberation, but those were lacking in Newfoundland, especially outside St. John’s. Alan Macpherson’s analysis of parish records for Hermitage on the South Coast estimated a literacy rate among the young married popula- tion of only 18 percent in the years 1867 to 1880, which improved only to 53 percent in 1901‒10. In the 1890s, at least 32 percent of population were totally illiterate—a much higher rate than in Canada. In the 1860s, rather than “face the world with pride and confidence,” as Ambrose Shea and Frederick Carter suggested, Newfoundland turned inward to pursue its own economic development.2 Newfoundland was also marked by sectarian and ethnic divisions for much of the nineteenth century and even into the twentieth centu- ry. Immigrants came either from the Protestant west of England or the Catholic south of Ireland, although there were small numbers of French, either from France or Acadia, who settled predominantly on the Port-au- Port Peninsula. Most settlers to Newfoundland arrived between 1760 and 1830. The Irish settled mostly on the Avalon Peninsula, the English fur- ther north and west, into Conception Bay and along the South Coast; St. John’s became home to both groups who often brought with them the prej- udices and hostilities of their homeland and which found their way into 238 RAYMOND B. BLAKE Ambrose Shea Liberal Leader, Newfoundland and Labrador 2 FEBRUARY 1865 “. we cannot remain as we are if the other provinces confederate. We shall probably have to contend with their commercial restrictions, and our isolation will be more complete than ever, and more injurious. Confederation Quote 10.1 Quotation from Newfoundland, House of Assembly, 2 February 1865 Photograph from The Rooms Provincial Archives Division, Newfoundland and Labrador, B 1-145 ” 239 the Island’s political life. The sectarian lines became further entrenched with the establishment of denominational schools in 1843, a practice that remained until 1998. The dominant religious groups forged an unwritten agreement in the 1860s for proportionate representation in the Legislature Assembly, in the Executive Council, and in patronage more generally. It was hoped that by informally institutionalizing such sectarian practices the country would be somewhat free of religious animosity.3 Sometimes it worked. Most of the wealth in Newfoundland was in the hands of a small group of merchants, primarily in St. John’s and Conception Bay. The fish- eries operated on a credit system whereby fishers were advanced supplies in the spring, with the hope that at the end of the season the catch was sufficient to settle their account with the merchants. Merchants charged as much as they could for the items advanced on credit and paid as little as possible for the fish delivered in the fall. Most fishers consequently lived in poverty or on its boundaries, but the fish merchants and the country’s elite, known as Water Street merchants, exerted a powerful hold over the country, controlling all aspects of the economy, including local banking and the Island’s meagre manufacturing sector. They also controlled the Legislative Council and their proxies, the Legislative Assembly, and the powerful Chamber of Commerce. They saw the economy, particularly the fisheries, as their own and ensured that the state did not intervene in their domain. As a result—unlike the fisheries of other countries—there was no strict and sustained government regulatory involvement in the sector in Newfoundland until the 1930s.4 The Confederation Debate, 1869 Ambrose Shea and Frederick B. T. Carter were impressed with the notion of Confederation when they gathered with other delegates in Quebec in October 1864, but they found no great enthusiasm for it upon returning to St. John’s. Premier Hugh Hoyles and Governor Anthony Musgrave expressed some interest, but the Newfoundland Assembly was divided. When the 1865 throne speech called for a “calm examination” of union, eighteen members spoke against and twenty-one expressed some support, though the latter also identified problems with the Quebec Resolutions.