The objects of the proposed bill are, first, to allow the Bank of Canada to hold silver coin and bullion in conjunction with gold as a reserve against the note issue and deposit liabilities, and also to allow for the issue of silver certificates against the silver held in such reserve. Secondly, it is proposed to have the Bank of Canada purchase and hold any quantity or amount of newly mined silver when required by the minister so to do.
It will be remembered that at the London economic conference of 1933 Canada agreed to purchase 1,671,802 ounces of silver during the years 1935, 1936 and 1937. But under the provisions of the Bank of Canada Act, the bank, while called upon to purchase this amount of silver during those years, is prohibited from purchasing any greater amount than the 1,671,802 ounces, by mandatory order which states that the bank shall never be required to purchase more than this amount. The amendment proposed would make this amount the minimum instead of the maximum.