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

UFA

George Gibson Coote

United Farmers of Alberta

Mr. COOTE:

I notice, however, that
Australia was able to pay all her foreign obligations. I remember seeing a statement not long ago to the effect that in every case the Australian government's foreign obligations had been met in the terms in which they were expressed, and Australia has been able to borrow money in Britain at as good a rate as Canada. It is a fair subject for debate, but in my humble opinion Australia has followed the course that made it easier for her primary producers to carry on and meet their obligations than it has been for their Canadian competitors. I ' believe that Canada depends on the agricultural industry more than on anything else, and the financial policy which keeps our price level at a lower level than most of our competitors does make it very difficult for us to carry on.
Exchange Fund

Our price level has been pitifully low compared to what it was when our producers contracted their obligations. The prices of our products have fallen lower than the prices of the things we buy. I do not know of any other industry that has taken the same fall in the price level as agriculture has, and the thing for us to have done was to follow the method of our competitors, the Argentine, New Zealand, Australia and Denmark. They felt that they were forced to take this step, and I think we should be well advised to consider doing it even at this late date.

Topic:   EXCHANGE FUND
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