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


Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)


Perhaps the hon. gentleman has overlooked the provisions of paragraph
(a) of subsection 2 of section 26:
1. The bank shall always maintain a reserve, as hereinafter provided, as security against its outstanding notes and deposit liabilities.
2. The reserve required by this section to he maintained shall consist of gold coin and bullion in the unrestricted ownership of the bank equal to an amount not less than twenty-five per centum of the ( notes and deposit liabilities aforesaid; and' may in addition include-
(a) silver bullion received from the minister under the next preceding section or purchased under the authority of subsection four hereof, valued at the market price of the fine silver content thereof.
So that the value for the purposes of the reserve statement issued by the bank is the

Exchange Fund
current market price. That refers of course to the fact that the bank is allowed to purchase only in 1935, 1936 and 1937 newly mined Canadian silver to the extent of 1,671,802 fine ounces in the year and shall not, during that period only, and not forever, purchase more.

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