NO GOLD BACKING
BIG CANADIAN PROJECT OTTAWA, May 5. The Canadian Government has decided to erect a great public building in Ottawa at a cost of 7,000,000 dollars (£1,400,000 at par), paying for it by the issue of currency without gold backing. When asked concerning the policy involved, the Prime Minister (Mr R. B. Bennett) replied that certainly it was inflationary, but the expenditure would provide employment for several thousand workmen, and in all probability the same policy would be adopted for other public works. The Canadian Government does not contemplate any departure from the principle of sound money, it was learned authoritatively. Should, however, inflation or devaluation of the Canadian dollar be desirable and possible in circumstances that will not impair the credit of Canada abroad, the Prime Minister will not hesitate to ask for authority from Parliament. The decision largely depends on the action Mr Roosevelt takes under the powers granted him.
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Bibliographic details
Otago Daily Times, Issue 21952, 13 May 1933, Page 14
Word Count
154NO GOLD BACKING Otago Daily Times, Issue 21952, 13 May 1933, Page 14
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