The Great Depression of the 1930s transformed municipal political life in Montreal, as it did that in other major cities in North America. For one thing, the debate between populists and reformers was revived as the electoral scene underwent fundamental changes. In many cities, political machines running on patronage became more influential as the middle class began to desert the city for the suburbs. At the same time, the margin of budgetary maneuvering available to cities was shrinking, and local public finances were reduced. Municipalities that had been obliged to borrow to meet social needs resulting from the depression were faced with a prolonged fiscal crisis, which for many of them resulted in bankruptcy and trusteeship. This was Montreal's fate in 1940.
