May 16, 1929

REPORT OF COMMITTEE


Seventh report of the select standing committee on banking and commerce.-Mr. Hay.


REGULATION OF LIQUOR TRAFFIC

CORRESPONDENCE BETWEEN UNITED STATES AND CANADA TABLED

LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

I beg to table the correspondence between the governments of the United States and Canada with respect to the clearance of vessels carrying shipments of liquor to United States ports. This includes the report of the anti-smuggling conference held in Ottawa in January of this year.

Topic:   REGULATION OF LIQUOR TRAFFIC
Subtopic:   CORRESPONDENCE BETWEEN UNITED STATES AND CANADA TABLED
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QUESTIONS


(Questions answered orally are indicated by an asterisk.)


GOLD SHIPMENTS TO THE UNITED STATES

LAB

Mr. WOODSWORTH:

Labour

1. Has the Minister of Finance refused to permit the banks to ship gold to the United States?

2. If so, under what authority?

3. Would it take sixty million dollars to bring the Canadian exchange back to parity?

4. Is there sixty million dollars in gold in the central gold reserve?

5. Why did the department change its form of statement of ''Circulation and Specie" as of the date of December 31st, 1928?

6. Was the reserve ratio 55.3 or 28.4 as of March 31, 1929?

7. Can Dominion notes including "legals" be redeemed in gold?

8. If not, are we then on a gold basis?

Topic:   QUESTIONS
Subtopic:   GOLD SHIPMENTS TO THE UNITED STATES
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LIB

Hon. Mr. ROBB: (Minister of Finance and Receiver General)

Liberal

1. No.

2. Answered by 1.

[The Chairman.}

3. To determine any definite amount is impossible, as exchange rates vary according to demand and supply, the extent of which is not known in advance by any financial institution.

4. The Dominion treasury holds $61,600,304 in gold; the banks have $16,630,866 of gold in the central gold reserves and, according to last bank statement, hold in addition in their own vaults in Canada, some $40,000,000 in gold.

5. The change was one of arrangement only to show separately notes issued under the Dominion Notes Act against gold reserves and notes issued under other authority against securities. In practice, notes outstanding against securities under the Finance Act are not utilized as a call for gold.

6. The ratio of gold to notes issued against gold deposits was 55.3 per cent at March 31st, 1929.

7. Yes.

8. Answered by 7.

Topic:   QUESTIONS
Subtopic:   GOLD SHIPMENTS TO THE UNITED STATES
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WESTERN POSTAL EMPLOYEES


On the order being called for the third reading of Bill No. 252, respecting certain employees of the postal or railway mail service of Canada-Hon. P. J. Veniot (Postmaster General):


CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Hon. R. B. BENNETT (Leader of the Opposition):

When this matter was under discussion in the house certain information was to be furnished to me in order that I might be able to ascertain exactly what amount of money was involved. That information the Postmaster General (Mr. Veniot) now tells me became available only to-day, and I should like an opportunity to study the effect of this measure upon the employees in question before the motion for the third reading is put. Might I ask that the bill stand until to-morrow?

Topic:   QUESTIONS
Subtopic:   WESTERN POSTAL EMPLOYEES
Sub-subtopic:   READJUSTMENT OF SALARIES OF THOSE DISMISSED " AND REEMPLOYED
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LIB

Peter John Veniot (Postmaster General)

Liberal

Hon. P. J. VENIOT (Postmaster General):

Yes. Stand.

Topic:   QUESTIONS
Subtopic:   WESTERN POSTAL EMPLOYEES
Sub-subtopic:   READJUSTMENT OF SALARIES OF THOSE DISMISSED " AND REEMPLOYED
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WAYS AND MEANS

SPECIAL WAR REVENUE ACT AMENDMENT


Hon. J. A. ROBB (Minister of Finance) moved concurrence in 'the resolutions adopted in the committee of ways and means respecting the War Revenue Act.


CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Hon. R. B. BENNETT (Leader of the Opposition):

Mr. Speaker, I have to move an amendment to the motion, as follows:

Special War Revenue Act

That all the words after the word "that" in the motion be struck out and the following added thereto:

the said resolution be resubmitted to the com-mdtee of the whole with instructions to amend the same by striking out section 4 thereof.

Section 4 of the resolution deals with the tax imposed on the transfer of mining and other shares. This tax whs originally enacted in 1920. It was essentially a war measure. As matters now stand, the Minister of Finance (Mr. Roibb) has indicated that he has a very substantial surplus. This tax in its operation is unjust, inequitable and unfair. In addition it is a tax that is essentially imposed upon provincial resources. The Dominion succeeds in obtaining an income tax from provincial companies operating in the development of the resources of the provinces, and this tax imposed upon the transfer of shares is a form of taxation that in my opinion should be left wholly available to the provinces. It should not be a tax resorted to by the Dominion at all. It is double taxation. It imposes a tax on industry; it retards development; it is unjust and inequitable in its operation, as indicated by many hon. members of this house; it is a tax which I think cannot be defended. It is for that reason, sir, that without making any extended address to the house at this time I move this amendment at the first available opportunity, before the resolution is finally adopted by the house.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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LIB

James Alexander Robb (Minister of Finance and Receiver General)

Liberal

Hon. J. A. ROBB (Minister of Finance):

Mr. Speaker, my hon. friend is quite right in saying the tax was first introduced under the special War Revenue Act assented1 to on July 1, 1920. It was amended in 1922. It is well that the house and the country should understand at once what my hon. friend is proposing by this amendment. I imagine there has never been a time within recent years when there was so much speculating on the stock exchanges throughout the country as there has been during the past year. I submit there is a general feeling all over the Dominion that the national treasury might very well profit somewhat by this speculation. If a man is disposed to take a gamble on the market and risk his money, is it not reasonable to suppose that he might at least put a little of it in the national treasury to take care of the obligations of the country? My hon. friend now proposes to wipe out this tax entirely because a few people have objected to a certain readjustment of the taxation on the transfer of mining shares. Well, the revenue from this source is only a penny's worth compared with the revenue we get from these special taxes. Although there has been so much speculating on some of the stock

exchanges where they deal largely in these mining shares, the revenue we have been getting from the business is very small, and the revenue we will receive under t'he revised taxation will be comparatively very small.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

That is the reason- we

want to wipe it out.

Topic:   WAYS AND MEANS
Subtopic:   SPECIAL WAR REVENUE ACT AMENDMENT
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May 16, 1929