March 20, 1935 (17th Parliament, 6th Session)

CON

Mr. RHODES: (Minister of Finance and Receiver General)

Conservative (1867-1942)

1. On March 11, 1935.
2 to 9. Section 28 of the Bank of Canada Act requires that every chartered bank shall transfer to the Bank of Canada all gold coin and bullion owned and held by it in Canada. The transfer is made at the present standard value fixed by the Currency Act. The Bank of Canada Act provides that any profit resulting from the sale of gold transferred to the bank, or resulting from any change in the monetary standard, shall be paid into the consolidated revenue fund. It is provided, however, that if the governor in council is satisfied that the gold at the time of transfer was held against liabilities elsewhere in Canada, the profit shall belong to the chartered bank. The governor in council has not yet taken action under this provision.

Topic:   QUESTIONS
Subtopic:   BANK OF CANADA-GOLD FROM CHARTERED BANKS
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