The first phase of the history of Newfoundland had been the evidence of an economic disturbance
in Europe caused by the discovery of the fishing banks in the new world. Apart from a few
expeditions at the beginning of the XVIth century, it took two of the great European powers,
France and England, some two decades to realize that to gain control of this new source of wealth
could give them an enviable international power, both at the economic and military level.
The second period of the history of the island began towards the middle of the XVIIth century and ended with the Treaty of Utrecht, in 1713. This was the period of the struggle for supremacy in the exploitation of the fishing industry. There were two opposing theories: whilst in France the authorities opted in favour of colonization, in England, the West Country, alleging that settlements could hinder the process of the fishing industry, dictated its anti-colonial policy to the government. The influence of this group of merchants had something to do with the weak military presence of the English in the island before 1713. In the second half of the XVIIth century, the two rival countries came into armed conflict. The French had a definite advantage over the English on account of their colony of Placentia, which was better equipped militarily than the English colony, St. John's. However, as a result of her rather timid initiatives and unimportant victories, France could not gain absolute control over the fishing industry. The struggle could have gone on endlessly had it not been for the Spanish Succession. The Treaty of Utrecht, which put an end to this European war between the mother countries in 1713, also put an end to the skirmishes between the French and the English for the domination of the Newfoundland fisheries, a struggle which had marked the second phase of the history of this large island.
Even if, for political reasons, the agreement was indulgent towards France in its defeat, nevertheless, it gave England complete hegemony over the whole territory of Newfoundland and gave France nothing but fishing and fish-drying rights between capes Bonavista and Riche, approaching from the north. A special place in the Treaty was devoted to the French colony of Placentia on account of its importance at the time. The French fishing industry in Newfoundland and the Gulf of Saint Lawrence at that time reached extraordinary proportions: it employed between 16,000 and 20,000 men, and was operative in Nova Scotia, Cape Breton, Prince Edward Island, Gaspe and Newfoundland. In the opinion of the English, Placentia was the capital of this important industry. Its geographical situation gave it numerous advantages that England had always shown a desire to possess: in the spring, the port was freer of ice than any other port, thus making it possible to reach European markets before any competitors; there was an abundance of herring, which was used as bait; the ships were safe, once inside the port, and there were beaches suitable for the drying of the fish. It is not at all surprising that England took advantage of the peace treaty to gain control of this important post. Article XV of the agreement stipulated that the French capital would be handed over to the English, and that the French would evacuate the place.
Theoretically speaking, the colonists were supposed to leave Placentia in the summer of 1713. But, as the French fishing-ships had already left Europe when the treaty was signed (March 31), and as the deportation of the French residents under these conditions would have caused enormous losses to the owners of these ships, which were coming to pick up the habitants' fish, England agreed to delay the departure for several months. It was the intention of Louis XIV to transport to Havre a L'Anglais in l'ile Royale (Cape Breton), not only the soldiers and munitions of the fort of Placentia, but also all the civilian population. Most of the inhabitants were willing to comply, but some of them were rather hesitant. They were afraid that France would not provide the transportation needed to take them, their possessions and their rowing boats to their destination. They were also afraid that the necessary efforts would not be made to ensure the security of the new establishment in l'ile Royal. No doubt, those who were uncertain about the move were eventually convinced for, in January 1714, Pontchartrain announced that as of the month of October 1713, 31 fishing crews totaling 155 men had gone from Placentia to Havre a l'Anglais, and that the remainder of the inhabitants were ready to go as soon as possible. The operation continued throughout the following summer, and was completed in October 1714 with the help of the chevalier de Sauj'on. The people and their possessions were evacuated aboard the Heros, the Charente. the Samstack and the Africain and in carts and rowing-boats which the habitants handled themselves. Between 150 and 200 French people left Placentia. Before leaving, the colonists tore down the palisades of Fort Louis and attempted, without much success, to sell their properties. The new English governor, Colonel John Moody, more or less assumed exclusive rights over these transactions. Those who remained in the colony swore allegiance to the British Crown. A memorandum dated February 4, 1715 states that few French people swore such allegiance, except for 50 to 60 volunteers, who hid in the woods when the inhabitants were leaving for l'ile Royale. It is probable that the few English people who were already settled in Placentia remained there.
The period following 1713 in Newfoundland was a period of confusion, economic changes and social disorders caused mainly by the war and the complete disappearance of any control over the fishery. After the Treaty of Utrecht, the colony of Placentia was placed under the government of Nova Scotia, while the remainder of the island continued to be controlled by the admiral or commodore of the French fishing fleet. The motivation for this policy was that in Newfoundland, since William III's law of 1698, it was forbidden to own any property. As the Queen of England had given permission to the conquered people to sell their possessions, the law had to be evaded to find buyers. So the former French capital was placed under the administration of Nova Scotia, where the right of ownership was recognized.
These settlers established the Fortress of Louisbourg in Nova Scotia.
