Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-12-01

Americans note In the proposed re-
ceivership for the Newfoundland gov
eminent an unprecedented means Of
recovering from financial conditions
brought about by corrupt officials
Whatever may be done, 1t Is assumed,
will be temporary under British law.
Newfoundland maintains separate sta
tus outside the jurisdiction Of Canada
and Is ranked as . dominion. After
the finances have been put on q better
basis by . commission representing
both the British government and the
people of the island 1t Is suggested that
two ways out Of the difficulty are open
union with Canada or sale Of Labra-
dor, which has been an Improbable in
vestment.
Newfoundland is Great Britain's
oldest colony" says the Providence
program as outlined, the present gov
eminent would be replaced by a COM
pact group consisting of the governor,
who would have legislative as well as
executive powers, and an advisory
council Of six members, three repre-
senting Newfoundland and three the
United Kingdom" The Journal offers
the description Of the procedure that
is likely to be approved: THE financing
plan proposed is unique. 1t calls for an
issue OF stock which, SO far as We
know, Is the first time such scheme
of government capitalization has ever
been undertaken The British Parlia-
ment will be asked to authorize a Brit
ish government guarantee OF an issue of
3 per cent stock by the Newfoundland
government, the shares to be exchange
able, dollar for dollar in face value, for
outstanding Newfoundland obligations.
According to the commissions estimate,
this procedure would reduce Newfound-
lands annual interest charges by nearly
two million dollars It IS also proposed
that possible deficits OF the island gov
eminent in meeting service charges on
these new securities shall be provided
by the British treasury"
Indebtedness has been incurred"
according to the Newark Evening News,
natural resources. Two years ago four
Canadian banks had to come to the
rescue. They demanded financial Sc
curity and reconstruction Of the gov
eminent on sound lines, as bankers
have done in our American municipali-
ties. Britain sent an expert to help
The government was defeated at the
polls. Some betterment is claimed. but
not enough to warrant Newfoundlands
going on as heretofore. Two ways out
of the difficulties have been suggested
union with Canada and sale of Lab
rador. Several efforts have been made
in the past to induce Newfoundland to
federate with Canada. but the cleo
torate has never favored 1t. For
century there has been jealousy be-
tween Newfoundland and Quebec over
the possession Of Labrador and New
foundland has held on to it like grim
death. Whether progress will be made
in either Of these directions now is
something to watch. The British gov
eminent does not intend to take over
the burden Of Newfoundland perma-
nently. although having converted New
foundland obligations into sterling
issues guaranteed. both as to principal
and interest, by the United Kingdom, it
may not be able to let go speedily.
Britain's taxpayers wish Canada to
share the responsibility. There is
lesson In this for all communities that
want to save their complete indie
pendence. They must manage their
own affairs honestly, efficiently and
economically or surrender them"
1T is q voluntary action on the part
OF Newfoundland" according to the
Scranton Times. which recalls that
Britain cannot force any dominion to
surrender its self-government." The
Times concludes: ut u rather sur
prising for people in the United States
to read Of such q state Of affairs. On
this side Of the border We have been
led to believe that there was no such
thing Is political graft or corruption
In either Canada or Newfoundland"
The Royal Commission Of Inquiry"
says the Danhury NeWs-TmeA reports
that the pa p have BEEN vtcttmi5ed
by politiciaiiG and By . continuing