CANADA WORRIES OVER ITS DOLLAR CURRENCY

Chronicle (Levin), 8 April 1947, Page 5

CANADA WORRIES OVER ITS DOLLAR CURRENCY

Reeeived Monday, 7.50 p.m. OTTA WA, April 0. The government had no immediate intention of devaluing the Canadian "ilollar which is now at. par with the United States dollar, aceording to a liigh Government souree. ^ The Canadian l'ress' Ottawa representative says there is no doubt, however, that Government economists are wondering what can be done in view of Canada's heavv unfavourable trade balance with United' States and relativelv low gold production compaved with 1941. i The London Financial Times has suggested that Canada could estabiish cl'ose liaison with United Ivingdom aiul other members of the sterling area vand the Canadian Press rcpresentative recalls that Canada converted surplus sterling before tlie war into American dollars Iiowcver, Government economists do not believe .this practiee can be re sunied for some years. Canada has favourable trade balanc.es with New Zealand, Aftstralia, Soutli Africa and other nations in the sterling bloc but thcse balances go into the Canadian loari to Britain* of 1,250,000,000 dollars,*of which 540,000,000 dojlars had been used by the end of .Tannary. Thus Canada's chief hope for 1947 is big tourist traflfic, increased gold product ion and increased exports to United States and other such liard money markets as Soutli Ameriea.