Well, if the chartered banks could only lend as much as their cash reserve, it would mean that they would be conducting business at a loss, because the money would go back into the chartered banks and interest would be payable by the chartered banks to the depositors. The banks would have to discontinue paying interest, and therefore what my hon. friend is suggesting is a tax either upon depositors or upon shareholders, or upon both. If we are going to impose a tax upon depositors or upon shareholders, or upon both, we might just as well impose that tax directly. That would be a much fairer and more straightforward way of doing it than the way he suggests. He is merely suggesting, for that is what it amounts to, further taxation of an indirect kind when he suggests that we insist on a 100 per cent reserve.
Subtopic: INCOME WAR TAX ACT