VAST EXPENDITURE.

Manawatu Standard, Volume LXI, Issue 292, 14 November 1941, Page 4

VAST EXPENDITURE.

CANADA’S WAR EFFORT

(Roc. 9.10 a.m.) TORONTO, Nov. 13,

Mr LL. T. J affray, the president of the Canadian Bankers’ Association, addressing the 50th annual meeting, said Canada’s vast war expenditures, including the extensive expansion of the war industries,'had been “so well, so simply, and so smoothly” financed by the chartered banks that financing had never even been a problem in Canada’s war effort. “The chartered banks maintain a very strong position and support the war effort to the fullest extent required. Canada’s direct war costs this fiscal year, aside front financial aid to Britain, will cost lfoO million dollars.” „ Canadians were paying into the Federal Treasury taxes and other revenues totalling 1500 million dollars —enough to pay the on tilt: ordinary operating expenses of Canada and 71 per cent, of the war effort money aid to Britain combined.

Mr J affray said : “It is a great source of satisfaction that the Government is taking firm and energeticsteps to check inflation tendencies. The Bank of Canada’s note circulation was 179,000,000 dollars at the outbreak of the war and -422.000.000 art August 3.1, of which 80,000,000 was in the hank tills. The vast increase in employment, industrial output, agriculture, and external trade fully justifies the increased note circulation.’’

Speaking in the House of Commons in answer to demands for conscription the Prime Minister (Mr Mackenzie King) said: — “The Government accepts the principle of conscription insofar as it means a system of compulsory selective national service. This principle will be extended from time to time according to the needs of the moment, but I do not intend to take the responsibility of supporting a policy of conscription for overseas service which was rejected by the people at the last General Election.”