Governor of Newfoundland
Anderson was then appointed on 20 October 1932 as the Governor of Newfoundland. He became His Majesty's Representative at a time of great instability in the Dominion of Newfoundland. Newfoundland had been hit badly by the Great Depression, leaving most of the banks on the verge of bankruptcy, saved only by emergency loans from Britain, the state Treasury was empty and the political process was discredited by corruption and incompetence.
The Government, led by Prime Minister Frederick C. Alderdice, called upon the British government to take direct control until Newfoundland could become self-sustaining. The United Kingdom, concerned over Newfoundland's likelihood of defaulting on its loans, asked the government to establish the Newfoundland Royal Commission, headed by a Scottish peer, Lord Amulree. Its report, released in 1933, assessed Newfoundland's political system as institutionally corrupt and its economic future as bleak, recommending the abolition of responsible government, and its replacement by a Commission of the British Government. Acting on the report's recommendations, Alderdice's government voted itself out of existence in December 1933. Appointed as Chair of the Commission of Government in 1934, Anderson found his role as Governor with significantly expanded powers and proved himself up to the job, constantly sending reports back to the Dominions Office and giving advice to the Dominions Secretary on how to deal with the Commission members.
Despite his new-found powers, Anderson took the position as the neutral mediator, intervening only when there was a dispute in the Commission. He was nevertheless involved with restructuring the administration of the state, including government departments, social services, the health system and the postal system. His approach proved to be not enough to bring the Commission out of petty arguments and disputes and he was replaced in 1935 by another Naval Officer, Sir Humphrey Walwyn, and he returned to Britain.
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