WELL MANAGED

Wairarapa Times-Age, 14 November 1941, Page 6

WELL MANAGED

CANADIAN WAR FINANCE STRONG FISCAL POSITION. CHECK ON INFLATION, (By Telegraph—Press Association—Copyright) (Received This Day, 9.10 a.m.) OTTAWA, November 13. Mr H. T. Jaff ray, President of the Canadian Bankers’ Association, addressing the fiftieth annual meeting today, said Canada’s vast war expenditures, including the extensive expansion of her war industries, had been “so well, so simply and so smoothly” financed by the chartered banks that the financing had never even been a problem of Canada’s war effort and the chartered banks maintain a very strong position to support the war effort to the fullest extent required. Canada’s direct war costs this fiscal year, aside from financial aid to Britain, had cost 1,450,000,000 dollars. Canadians were paying into the Federal Treasury taxes and other, revenues amounting to 1,500,000,000 dollars, enough to pay the entire ordinary operating expenses of Canada and the 71 per cent war effort money for aid to Britain combined. Mr Jaffray said: “It is a great source of satisfaction that the Government is taking firm and energetic steps to check inflation tendencies. The Bank of Canada's note circulation was 179,000,000 dollars at the outbreak of war and-422,000,000 dollars at August 31, of which 80.000,000 dollars are in the bank tills. The vast increase in employment, industrial output, agriculture and external trade fully justifies the increased note circulation.”