Mr. BLACKMORE:
Well, we seem to be getting into a unity of faith. Once you grant that state money is good money, then there is no reason-
Mr. DUNNING:
It depends upon the state, you know, as to whether or not it is good.
Mr. BLACKMORE:
True, but no one will
question the fact that Canada is good.
Mr. DUNNING:
Hear, hear; I am glad to hear my hon. friend make that statement.
Mr. BLACKMORE:
That is exactly how I feel. Now, then, Mr. Speaker, once we grant that this dominion government can create money, and that it is good money, and that the amount of money which it can create depends not upon the gold it happens to have but on the exchanges which can be brought about in the country, then we begin to see that it is simply idle folly to suppose that all the money this country has must be borrowed from banks or collected in taxes.
Mr. THORSON:
But it must be good outside the country as well.
Mr. BLACKMORE:
Very true. I am much pleased with my hon. friend's interest, but he must remember that we can do only one thing at a time. Let us get this
Use oj Canada's Financial Resources
proposition laid down fully and recognize that state money is sound money in Canada. During the war the English treasury notes were complete evidence that state money is sound. Doctor William A. Shaw, in one of his recent great books which all hon. members would find interesting reading, the name of which for the moment I have forgotten, but it has to do with the principles and practices of central banking, tells us that when the British government discovered the use of the treasury bill they had discovered the perfect money, and he deplores the fact that they allowed themselves to be deceived into going back to the gold standard, which brought about this terrible wreck from which we are all suffering at the present time.
Mr. TAYLOR (Nanaimo):
But did they not retreat in the face of the requisitions of the United States?
Mr. BLACKMORE:
That would be a matter that we would have to go into.
Mr. TAYLOR (Nanaimo):
I think it is a factor.
Mr. BLACKMORE:
We must remember that if we go into side issues we will not get through. I shall be very glad to take up all considerations in time, but we have plenty to deal with to-day, so let us go straight through Certain it is that Doctor William A. Shaw, notwithstanding anything that can be said, has stated definitely that they had discovered the perfect money. I intended to bring that quotation down to the house with me to-day, but I thought perhaps it was too long to read here. Then they abandoned it; they sold themselves for a mess of pottage, and apparently we followed them.
I was going to comment on Canada's covered issues of notes, Canada's backed issues of notes, but since the Minister of Finance has been so kind as to help me out I do not need to go into that. I think we are all satisfied that Canadian money is good money, and that there is a tremendous possibility for the creation of the same in Canada.
Mr. THORSON:
Then it might not be good if it were created in excess.
Mr. BLACKMORE:
We grant that, Mr. Speaker, surely, but the all-important thing is to know to what extent you can go before it becomes excess. .
Mr. THORSON:
Now will you tell us that?
Mr. BLACKMORE:
All right, but the point, as far as I see it, is just as I indicated in the little illustrations I gave. Because a fire has been used to create a conflagration, we cannot be forbidden to have a kitchen fire.
Mr. MARTIN:
To what extent would you go?
Mr. BLACKMORE:
That is a matter of which I have said already even the wisest and best informed of men are only becoming dimly conscious, but they are certain that a great deal more than we now have can be created.
Mr. MARTIN:
I have followed the hon. gentleman very carefully and sincerely, and I should like to ask him a question, because he has given this matter a great deal of study. To what extent would he advocate that we should go?
Mr. BLACKMORE:
I would advocate going far enough, as G. D. H. Cole says, to put our resources, that are not now being used, into production. That is not clear, I know, but the point, as you know and I know-
Mr. DUNNING:
That means exactly
nothing. That is what we are waiting to hear. The other day my hon. friend said he wanted a chance to explain what social credit would do. That is precisely the question in point, but my hon. friend does not give the answer. Tell us about it. Tell us how you propose to proceed. I ask as an earnest inquirier. I do not agree with my hon. friend in all that I have read as to what he means, but I wish he would tell us what social credit will do and how it will work.