Thursday, July 21, 2016

1894 Newfoundland Bank Crash

NFLD dollar bill.jpg

On Monday, December 10, 1894, also known as Black Monday, two of three banks in Newfoundland, the Union, and Commercial Bank, closed forever.

At the time there were three banks in Newfoundland. The Union Bank, the Commercial Bank, and the Savings Bank.

As a result, businesses collapsed, workers became suddenly unemployed, families lost their savings, and the Newfoundland was left with no circulating money.

The banks crashed because of reckless banking during a troubled fishery and declining economy.

The crash paved the way for Canadian banks to come to Newfoundland. It was around this time that Newfoundland adopted Canadian currency.