5 Cents – Newfoundland

In 1944, Newfoundland was in a unique and complex currency situation, operating as a commission of government under direct British administration following its economic collapse in the 1930s. The island did not have its own central bank or issue its own paper currency. Instead, the primary circulating medium was the Canadian dollar, a practical reality driven by Newfoundland's deep economic ties and proximity to its dominant North American neighbor. This informal "dollarization" facilitated trade and stabilized everyday transactions, but it also meant Newfoundland had no independent monetary policy, ceding control over its currency to the Bank of Canada and the Canadian government.

Alongside the dominant Canadian currency, the British sterling system also played a significant, though secondary, role. The Newfoundland government's accounts were kept in sterling, and transactions with the United Kingdom and for certain official purposes were conducted in pounds, shillings, and pence. This created a dual-currency environment where both dollars and sterling were legally recognized, with exchange rates fixed by the commission. The system was manageable but underscored Newfoundland's lack of financial sovereignty and its precarious position as a ward of the British Empire with an economy increasingly integrated with Canada.

This monetary arrangement was a direct reflection of Newfoundland's unresolved political future. The commission government, focused on wartime administration and fiscal recovery, maintained the status quo. However, the currency question was intrinsically linked to the larger constitutional debate that would culminate three years later. The widespread use of the Canadian dollar in 1944 not only reflected existing economic realities but also subtly paved the way for the 1948 referendums, as it made the prospect of Confederation with Canada seem a more natural and financially continuous choice for many Newfoundlanders.