Owners of property that abutted the Fraser River in South Fort George became excited when Harry Avison drilled for a new well in his yard and struck gold. Material was panned from a six-inch layer of blue clay known to be associated with gold deposits and "two or three pans yielded very satisfactory results." Local prospecting experts said that there were outcroppings of the same blue clay formation father down the river. That information, together with the findings on Avison's property, caused a renewed interest in combing the riverside for gold. There was always the haunting thought that a strike could be made if holes were only dug a little deeper!
For the first and only time in Prince George's history, Dominion Day was not observed in public events. This reflected the reality of the Great Depression, and the dwindling attendance at events since the beginning of the Thirties. Merchants realized that they had missed an opportunity for the additional business associated with celebrating Canada's founding day - including extra trade with visitors from surrounding areas. They resolved to resume normal festivities the following year.
One of the few bright spots in the local economy was an upturn in the sawmilling industry. Lumber prices rose 50 per cent in the first half of the year due to demand from eastern markets. That year, most of the local production went to buyers in Eastern Canada with only one-eighth reaching the United States. Eastern Canadian lumber mills concentrated on filling contracts for Great Britain, thus opening market opportunities for the B.C. mills. A number of Prince George sawmills were interested in servicing the British market and sent a sample carload of lumber there to spark interest in future sales.
Relief workers joined the May Day parade to protest their low pay. Traditionally, May Day is an international day to celebrate labour - but on this occasion, the event was used as a demonstration of discontent. Violent protests occurred when desperate people clashed with local police. Delegations began to make presentations to City Hall, which in the past had spent about $1,000 a week to support those who drifted into Prince George seeking assistance.