June 17, 1935 (17th Parliament, 6th Session)

UFA

George Gibson Coote

United Farmers of Alberta

Mr. COOTE:

With reference to the remark of the Prime Minister, that suggestions were made from this corner that the Canadian currency should be tied to the pound, I may say that in any statement I ever made in the House of Commons I was careful not to use those words. As a matter of fact, a friend of mine who lives in the metropolis of Canada urged me to advocate that very thing, to make the pound legal tender at S4.87. I stated to him at that time that that was much too low a level because this country must have a pound worth more than that unless a change took place in the pound sterling itself. When the imperial conference agreement was under discussion I used on that occasion this language: I said that our currency should be brought to such a level as would make the pound worth $4.87 here. That would have been a distinct advantage to us at that time. I have not the exact words I used but that is as I remember. I am sure I never used the expression "tying our currency to the pound."
There is one other point which the Prime Minister made to which I would refer, and that is the payment of foreign debt. The Prime Minister will agree that so far as actually paying off any of this debt is concerned, we can pay only by the export of goods, commodities and services-and in commodities I include gold. Of course, it may be easier for us to renew these obligations if we keep our currency at a certain level, at par with the United States.

Topic:   EXCHANGE FUND
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