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It has been argued that Newfoundland should never have joined Canada in 1949. There were many people who believe that Newfoundland had a strong enough economy to survive on their own, as a producer of many goods. It was involved in many industries, with the fishery being the major producer of goods in the Newfoundland region. This paper will explore the economic history of Newfoundland and also explore the reasons why Newfoundland would have been better off if they had joined Canada in the 1864 Confederation.

The issue of Newfoundland joining Confederation was one that was brought up on many occasions. In 1864, two members of the Newfoundland Assembly Were sent to the Quebec Conference (Rothney 1964, 22). They were F.T.B. Carter and Ambrose Shea. They were sent with the blessing of the governor, but had no authority to commit Newfoundland to Confederation. The talks went well and the two delegates returned to Newfoundland with great things to say about joining with Canada. Their speeches were heard, but Confederation was turned down at that time.

In 1869, terms were negotiated and agreed upon by the Newfoundland delegation and Ottawa (MacKenzie 1986, 8). However, in the Newfoundland election that followed the agreement of these terms, Charles Fox Bennet, an anti-confederate, won the election. Confederation and all the benefits of joining went down in defeat. At this point, many believed that a union with Canada provided very few benefits. Newfoundland relied heavily on their exports. Most of their economic ties were with Britain and the United States. Their exports went mostly to these two countries, as their imports did as well. Newfoundland would receive no benefits from the Railway and most believed that there were very few economic links with Canada. The idea of Confederation was postponed temporarily.

This defeat did not lay the idea of Confederation to rest. In the 1880’s the Confederation issue rose...