The fire which destroyed the original structure occurred on Sunday, January 31, 1937. In the February 3, 1937 edition of The Hants Journal, an account of the fire appeared which incorrectly cited loss of all the contents as well as the church structure itself.
In the February 10, 1937 edition of The Hants Journal, local columnist "M.E.C." provided a more accurate account:
"... the first report of everything having gone up in flames was not correct, as the furnishings, windows, door, were saved: everything, in fact, but the building ... we are safe in saying the church will be rebuilt as the Rector, Mr. Godfrey is young, and already visions of a new building come before us; to again worship there will be something to look forward to while we mourn the passing of the little white church by the wayside ... like the Macedonians of old we will say to our brethren among the clergy and those who have worshipped there 'Come over and help us' as we try to raise money to build the Temple again. The people will have a mind to work, we know, and regular services will be held at Stanley somewhere as usual."
In the March 9, 1938 edition The Hants Journal, "M.E.C." reports that "the new church at St. Stephen at Stanley is coming on wonderful under the hands of Mr. Everett McCulloch of Kennetcook and it looks so good to see again the little white church by the wayside and the unsightly ashes covered over". Everett McCulloch was employed as the head carpenter and Munroe Anthony was his assistant. They commuted from Kennetcook daily traveling alternately, week about, in Mr. McCulloch's open touring car or Mr. Anthony's Model T sedan.
A special meeting of the Vestry of St. Paul's Parish was convened on June 22, 1938 at the Stanley hall. In the vestry minutes written by Bertram Weir, Vestry Clerk, it is noted that "Warden C. S. Clark read the financial statement of amount paid for building church to date. It was decided it would take over $700.00 to complete the church". The amount of $700.00 was borrowed from Isaac "Ike" Withrow and was ultimately repaid with ease post-World War II when times became more prosperous than they had been during the 1930s. Fundraising during the 30s and the War years was sporadic at best. John Clark recalls the scarcity of funds during the Depression years and that Mrs. Rosalie Campbell was able to raise the (then) princely sum of $20.00 from the sale of a hand-made quilt.
The new church building, a replica of the original one, was opened with a service of thanksgiving on August 7, 1938. This service was led by the rector of the day, Rev. F. H. Godfrey. Lessons were read by Rev. F. Rudderham of French Village and Rev. A. W. L. Smith of Clementsport. The choir was composed of members of the Anglican Summer School then in session at Windsor. The preacher, Dr. Kingston, Dean of the Theological School, Trinity College, Toronto, spoke from the text "I believe in the Holy Catholic Church".
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