Economic Union Party
Encyclopedia
The Economic Union Party (EUP, formally the Party for Economic Union with the United States) was a political party formed in the Dominion of Newfoundland
on 20 March 1948, during the first referendum campaign
on the future of the country. The British-appointed Commission of Government
had administered the country since the financial collapse of 1934. The alternatives were "responsible government" (restoration of Newfoundland self-rule), or "Confederation
" (joining the Dominion of Canada).
The EUP was formed by a split in the Responsible Government League
(RGL), which advocated "responsible government". A group of younger anti-Confederation delegates to the Newfoundland National Convention
quit the RGL, because they thought the RGL was disorganized and had failed to present a positive alternative to Confederation. Thus it seemed that the RGL was doomed to lose the referendum to Joey Smallwood
's Confederate Association
, advocates of Confederation.
The EUP was led by St. John's businessman Chesley Crosbie
and "co-founded" by Geoff Stirling
, publisher of The Sunday Herald.
The EUP believed that Newfoundland's voters had to be persuaded that "responsible government" could be made viable again. They proposed to revive the Newfoundland economy through free trade
and a customs union
with the United States
. They also believed that the promise of economic union would give Newfoundlanders a positive reason to reject Confederation.
There was no "economic union option" on the referendum ballot. The EUP therefore supported "responsible government", with the expectation that the independent Newfoundland government would negotiate the union with the United States. The party's support was concentrated on the Avalon Peninsula
. Its economic ideas, though popular with the St. John's business community, failed to generate interest in the general population.
Smallwood's forces attacked the EUP as "republican" (anti-monarchist), disloyal and anti-British. The split of the anti-Confederation forces into two organizations caused problems: tension between the EUP and the RGL, and wasteful division of resources. Conversely, the Confederate Association was well-funded and well-organized across the island.
In the first referendum, held on 3 June 1948, "responsible government" won the most votes (44.6%). 41.1% voted for Confederation; 14.3% voted for continuing the Commission of Government. Since there was no majority, the results were inconclusive. A second referendum was held on 22 July, with only Confederation and Responsible Government on the ballot.
The Economic Union Party decided to unite its efforts with the Responsible Government League for the second referendum, but morale was poor and the campaign was disorganized, compared to Smallwood's well-run machine.
Confederation won the second referendum with 52.3% of the votes,
and the EUP disbanded.
Dominion of Newfoundland
The Dominion of Newfoundland was a British Dominion from 1907 to 1949 . The Dominion of Newfoundland was situated in northeastern North America along the Atlantic coast and comprised the island of Newfoundland and Labrador on the continental mainland...
on 20 March 1948, during the first referendum campaign
Newfoundland referendums, 1948
The Newfoundland Referendums of 1948 were a series of two referendums to decide the political future of the Dominion of Newfoundland. Before the referendums, Newfoundland was in debt and went through several delegations to determine whether the country would join Canada, remain under British rule...
on the future of the country. The British-appointed Commission of Government
Commission of Government
The Commission of Government was a non-elected body that governed Newfoundland from 1934 to 1949...
had administered the country since the financial collapse of 1934. The alternatives were "responsible government" (restoration of Newfoundland self-rule), or "Confederation
Canadian Confederation
Canadian Confederation was the process by which the federal Dominion of Canada was formed on July 1, 1867. On that day, three British colonies were formed into four Canadian provinces...
" (joining the Dominion of Canada).
The EUP was formed by a split in the Responsible Government League
Responsible Government League
The Responsible Government League was a political movement in the Dominion of Newfoundland.The Responsible Government League of Newfoundland, led by Peter Cashin, was formed in February 1947 by anti-Confederation delegates to the Newfoundland National Convention on the future of the colony...
(RGL), which advocated "responsible government". A group of younger anti-Confederation delegates to the Newfoundland National Convention
Newfoundland National Convention
The Newfoundland National Convention of 1946 was a forum established to decide the constitutional future of Newfoundland-Nominations:On 11 December 1945 the Government of Britain announced that there would be an election to a National Convention, which would debate constitutional options and make a...
quit the RGL, because they thought the RGL was disorganized and had failed to present a positive alternative to Confederation. Thus it seemed that the RGL was doomed to lose the referendum to Joey Smallwood
Joey Smallwood
Joseph Roberts "Joey" Smallwood, PC, CC was the main force that brought Newfoundland into the Canadian confederation, and became the first Premier of Newfoundland . As premier, he vigorously promoted economic development, championed the welfare state, and emphasized modernization of education and...
's Confederate Association
Confederate Association
The Confederate Association was a political party formed and led by Joey Smallwood and Gordon Bradley to advocate that the Dominion of Newfoundland join Canadian Confederation. The party was formed on February 21, 1948 prior to the launch of the 1948 Newfoundland referendums on Confederation...
, advocates of Confederation.
The EUP was led by St. John's businessman Chesley Crosbie
Chesley Crosbie
Chesley A. Crosbie was a Newfoundland businessman and politician.Crosbie belonged to a prominent St. John's family involved in hotels, fish exporting, insurance, shipping and manufactring...
and "co-founded" by Geoff Stirling
Geoff Stirling
Geoffrey William Stirling is a Canadian businessman. Stirling, along with other members of his family, owns several media outlets in the Canadian province of Newfoundland and Labrador under the corporate brand Stirling Communications International...
, publisher of The Sunday Herald.
The EUP believed that Newfoundland's voters had to be persuaded that "responsible government" could be made viable again. They proposed to revive the Newfoundland economy through free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
and a customs union
Customs union
A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
with the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. They also believed that the promise of economic union would give Newfoundlanders a positive reason to reject Confederation.
There was no "economic union option" on the referendum ballot. The EUP therefore supported "responsible government", with the expectation that the independent Newfoundland government would negotiate the union with the United States. The party's support was concentrated on the Avalon Peninsula
Avalon Peninsula
The Avalon Peninsula is a large peninsula that makes up the southeast portion of the island of Newfoundland.The peninsula is home to 257,223 people, which is approximately 51% of Newfoundland's population in 2009, and is the location of the provincial capital, St. John's. It is connected to the...
. Its economic ideas, though popular with the St. John's business community, failed to generate interest in the general population.
Smallwood's forces attacked the EUP as "republican" (anti-monarchist), disloyal and anti-British. The split of the anti-Confederation forces into two organizations caused problems: tension between the EUP and the RGL, and wasteful division of resources. Conversely, the Confederate Association was well-funded and well-organized across the island.
In the first referendum, held on 3 June 1948, "responsible government" won the most votes (44.6%). 41.1% voted for Confederation; 14.3% voted for continuing the Commission of Government. Since there was no majority, the results were inconclusive. A second referendum was held on 22 July, with only Confederation and Responsible Government on the ballot.
The Economic Union Party decided to unite its efforts with the Responsible Government League for the second referendum, but morale was poor and the campaign was disorganized, compared to Smallwood's well-run machine.
Confederation won the second referendum with 52.3% of the votes,
and the EUP disbanded.