Black Monday (1894)
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The Bank Crash of 1894 called Black Monday was one of the turning points in Newfoundland's early history.
The financial woes of the former British colony were worsened when two of the commercial banks of Newfoundland, the Union Bank of Newfoundland (established in 1854) and the Commercial Bank of Newfoundland (established in 1858), both located in St. John's, Newfoundland, Canada, closed their doors to the public on December 10, 1894. Neither bank opened again, with disastrous effects on both trade and commerce in the colony. Trade come to an abrupt halt and unemployment and destitution became widespread.
The closure of the banks brought Newfoundland to the brink of bankruptcy and resulted in the Canada Newfoundland Confederation talks. It also highlighted the weakness of its economy and the truck credit system on which it depended.
