Bank crash of 1894

In 1894 the commercial difficulties in the fish export trade, and in Newfoundland generally, came to a head. In the spring of that year rumours began to circulate about the financial stability of a number of prominent firms. On 10 December – known as “Black Monday” – the Commercial Bank of Newfoundland was deprived of credit in London and closed its doors. Its failure was followed almost immediately by the collapse of the Union Bank. The disastrous bank crash caused a collapse of the Newfoundland economy: trade was disrupted, and the government was on the verge of bankruptcy.