Oh, no; I will tell my hon. friend what happened in 1934, and he can look it up. All we did was to say to the chartered banks, who had enjoyed much greater freedom in issuing their own bank bills, that each year thereafter they had to decrease the issue of their own bills by 10 per cent. We did nothing else. We never stopped their writing entries in books and creating paper money by credits of that kind. We never stopped their taking these bonds, keeping these interest coupons for ten or twenty years, as the case might be, and fattening on this procedure. My hon. friend may say something about the great debts that are being created. With dominion government bonds outstanding now amounting to $5,866,000,000, according to the budget; with provincial interest-bearing securities amounting to a large figure, and municipal securities, the public debt of Canada to-day amounts to $10,016,000,000. That is a terrible load; and the interest we are paying to-day on bonds
of just this kind, which are largely held by banks, trust companies, trust estates and the wealthy people of this countiy, is shown in the budget as $170,000,000. If we issue the additional $1,850,000,000 of bonds which the minister says we shall have to raise by borrowing this year, we shall add to that amount of interest another $55,000,000, so that next year we shall be paying $225,000,000 in interest on debt created in the way I have indicated. In ten years that yearly interest payment will amount to $2,250,000,000, which we shall have paid on debt-bearing securities of the dominion government alone.
Can we stand that sort of thing, or should we stand it any longer if there is another way of doing it? Surely I have shown that there is no more inflation, and that you have not given the working people of this country any more money to spend, because you give the bank this bond and let it have the interest for nothing, than when you issue this bill. It is nonsense to let anyone tell you otherwise. If that be so, what would be the harm in doing as I have suggested? Where is the evil in it? I should be glad to be shown. I think it is time we called a halt. I have just about concluded if my hon. friend is protesting.
Subtopic: INCOME WAK TAX ACT