During the Great Depression Newfoundland faced an economic crisis; Canadian banks extended credit to the colonial government, but did so under harsh terms.
On 5 April 1932 a riot at the Colonial Building in St John's precipitated the government's collapse.
This worried the British and Canadian governments who feared this would cause a bad reaction on the already fragile stock markets during the Depression.
It was agreed then, that Canada and Britain would provide short term financial assistance pending the full report of a royal commission.
In November 1933, it was debated by the legislature which subsequently passed an address to the Crown requesting the suspension of the constitution.