‘MINUTES OF PROCEEDINGS Weovesoay, May 9, 1600, ‘The Standing Commitee on Banking std Commerve met at 11 oeeck 2, he iirany Aor, presiting Members preset: Mower, Clark (York-Sunbury),Donehmno, Dabs oniate, Hh, Howard, Suques, Lact (Beanes), Ladera, Lawson, Me ‘Marlin, Moor, Kost (St Boul, Taslor (Nanay, Tucker, Veh“ {In atterdance: Mr. Grabam Ford Towers, Governor ofthe Bank of Cann, Examinston of Mr, Towers was eoatinue, Ordered "That the fllowingcoection be made in he eidene, va: — Pago 26, n the statement ented “Volume of Canadian Money 1857 sas" fa the houing “Dominion ani of Commer Noles” vee eal 4 Bland 6 siautate Domiion or Bank of Caran Notes ‘With the consent ofthe Commits, Me, McGee submitted questions tbe incorporate in isda’ eon ml anewered by Sr. "Tower ona fate dle AL 120 pam, the Committe adjourned util 3.18 pam AFTERNOON SITTING ‘The Committe renamed at 18 pan Members gresnt: Mosrs, Berrovieh, Cleaver, Dubuc, Howard, Jaques, acre oon) Landeryou Laweon, Meolonald (Brentford Cy), Meer, Martin; Mghew, ‘Moore Faston, Rost (Se: Pants), Taylor (Wenaime, ‘Tasker, View 18 Examination of Mr, Towers continued Onlered—That the Basle of Canada Act and actions 59, 60, 61 and 125, te Hank” Ace be printf appendi to this day® proceeding [ALG clock the Committee adjourcd until to-morrow, May 4, at 11.00, oreo, R. ARSENAULT, Cle of the Commute,MINUTES OF EVIDENCE Host oF Comsos, Roost The standing Committee on Banking and Commieree met at 1 eeloek am, The oh rman, Me. W. TH. Moore, presided, The Chamaax: We are ready to proceed. Mr. Towers is with ae agai this morning and Mr. Lanleryon sill continue his examination. In Attendance: Guana Bo Governor of Bank of Canada By Mr. Lanteryou QM ‘owers, there is a question or (we in reference to Ci which T would like to ask you, Would you agree that a plan eould he devised wher n we could pay Canada’s nationa debt off ina period of fifty. years? A. That question, T think, was raised on the oceasion of the last meeting. and Valid not explain'then that Peanld not he stlfieiently aptinistie the conditions of tremendous expansion in private eapital development. or. the tremenclous total of production whieh would allow a shift of that kind to take place in such a period of time Q. You stated that the debts of the people were their tha the debt of the eountey Q. That is outside of bone sold outside Q. Now, are those assets in the form of ment—are they still worth the value ‘of the country? Largely owing to its own citizens, yes nus. buildings, national develop- represented by: the debts? impossible to say; probably: not Q. That is the point T would like to develop. Bor instance Ottawa horrawed money to build a city hall; it wae burned sown and thes till paving the interest on the debt; and oceurrences of that nature have taken place throughout Canad $370.000.000 on highway's In the provinee of Albert they have spent over nd they have very little left to shew inthe form of an asset for the highways. And in connection with the tremendote sume that were expended on the war there is no asset to represent that of course, as we stated— ‘The Cramstax: Oh, yes, certainly — Mr. Towns: that extemporaneo cover them in that n Bu Mr, Landeryou = we stated in an earlier memorandum, the real sacrifice the time the money is borrowed. Twill not try to go into details of beeatise they were covered ax completely as ase could Q. One more question and I will leave this question of debt. to proceed to tax the people sufficient to retire this debt would it not disrupt out ceonomie system <0 1s to make it practically impossible?-—A\. such Under conditions they are at the present time or even on the asic of ange reawonble degree of improvement such as one could visualize it would be an awnnecessary and useless disruption, yee. ‘The Cnatumax: Mr Landeryou, may suggest that 9s far you avoid a repetition of questions that were asked at the st meeting?ee eet eas tae elie ay and to whieh rpc a the Ie meting do nt shi 1 an iy oss fo otha whieh ie Snaaeals psi Shemploysd actors of Prac, sanewr 1 eat i that Teapot To the exter hometery that Sour i ate Hala lip Mr. ante : ‘Sell crit theory toot ts eo meter Dovvouaceapt fin ®-A, 1 place he greatest ssportane on the pyle {er esr camo tha Ae Fs ho yu bik te pat deol pity wilt having iio. oth o ea ig te ‘n iy witli ney ataera?—A. Thinking othe beter jo tau n th nn th ni res taking inerng theory of lak of eonsumplion power of ie te ue abstain eam oaeip TN} Now, Tain not agiecng wie that talent ‘Rito so tat the tise al Inia ea bee om ea fiat thle ie sply 6 bacll cre they ie ivihe forma 8 le her an 9 on wae tha ete mats nek of pct over A. Wel ie mary syste Ty ond eostmption sm Ickes tative may ak ig doe ick eovermietel wl hae eapial evehnen} which he my Boies aes oe ree Sh tnunlenske ie metry ends mechan by wk oe ean 1 AIL santero oow from yu Mr Tamers, wae the snle anamer Sra! Sa yn ge li happen eee ia Tak of ange he ba uber a ceeet te ali Sete alain peel Reto eet oh t 3 Lanorayoe: He answered ic Uy stgasting that that inyoleed di ig aah melee aed a au scion ants ny of sale as eQpoume RE wane people Trdg Stes ir ctee tir cay bale toe Mir Toxo: Or tha it iavolvel operations auch ab tae which me ir mony sea ec Taine aw, alu wn ei hy Me Teer sa ai sgn of an let ae a 1 Cong ket hah sete hat whe Lill proceed the smsmpcon that sou do agree that the ie a teal psi =a : lack i putting pet in tie hase of many of te gosumer Tis ene In etatiecsan wy Ak si ‘ante hick natiraly eee with lack of furehonng owe erate ral nal Ri "SY owe act ie aie to pote Ke for stance A. rode ines diel e naal ipo 5 the things mb see wat i Mita ee Cte eg ih ae wa The i anti ae ine T “en sbelent at foe the Ipeoheng large uaniie of agsetanal machinery Not nis are Ther, at wats koe: atthe sane tin ie laren the aera ave eye able to. eonstruel, fur mnaciney Tor expert Those feelin, are Ser tet a Sin pion rlce nbs ta erence anne SAY Sinaing nan Tne Theanine mpl Onfarn Slay i 2 sit Onan tl ber Se eowsine eter he at th rng go in the re, fo race nha tmigegy ie snuning every doy af ce Ae tie ie thee are Shouse a thet of arr mal ft wr belice dis pips tlo"ntlte nt mnchinay. The achinyy Se pracealy wom ou after i ith he goer. elu pened vem sunt of depres Many rp ‘ressty” The Sarees fe Peer ete ear mee Sale to pete cf vie machonesy we ruision that there 4 shortage nf paren ‘Tho Crtamsiyn: Ale, Landeryou, may T ask rial joable en be made anny pow Tie Carns: Ave they pnt unable buy machine really beause they mit be inergel “Dw yam ain terete 8 Sack of mir f cosumacrs ifhe onnirs?-A, othe hr Tooker kel the tees banat acl mie ey enue