The 1930's Depression
The onset of the Great Depression following the Wall Street (stockmarket) Crash of 1929 brought construction of the National Capital to a halt.
Fortunately, in 1931 construction of the Federal Highway linking Canberra to the New South Wales towns of Collector and Goulburn was completed by unemployed men working for 'relief' money. The building of Dairy Flat Bridge commenced to augment the low level Scotts Crossing because stock being driven to the abattoirs in the nearby New South Wales town of Queanbeyan were straying into Canberra's city centre (Civic).
Workers were laid off and plans for new projects abandoned. Only two of the capital's five hotels - the Hotel Kurrajong and the Hotel Canberra - remained open.
Even the body responsible for developing the city, the Federal Capital Commission, was abolished.
With a population of about 7,000 Canberra went into hibernation.
The Attorney- General Robert Gordon Menzies said in 1934 that Canberra was a place of exile. You could walk around it in ten minutes. After World War II when he was Prime Minister, Menzies was determined that Canberra would be a real National Capital and established the National Capital Development Commission and provided it with ample funds to realise its potential.
Meanwhile, as the worst of the Depression eased, money
was found to commence construction of the Australian
War Memorial and the National
Library in Kings Avenue (since demolished).
Regular (albeit infrequent) air services to and from Canberra began in 1936 using the grassy airstrip at Fairbairn.
In 1939, just as things appeared to be getting better, Australia found itself involved in World War II. The impact on the development of Canberra was dramatic and immediate.