May 3, 1939 (18th Parliament, 4th Session)


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


1. It was the dominion government, not the Bank of Canada which entered into the international silver purchase agreement of 1933. Under the provisions of subsection 4 of section 29 of the Bank of Canada Act, the bank was required to purchase and hold newly mined Canadian silver during the years 1935, 1936 and 1937 as and when required by the minister, provided that the amount to be purchased was not to exceed 1,671,802 fine ounces, and under subsection 3 of section 25 of the same act silver held by the minister for redemption of dominion notes was transferred to the bank on the date of commencement of business when the bank assumed liability for the redemption of outstanding dominion notes.
2 and 3. Specific detailed information covering the price at which the silver holdings of the Bank of Canada were sold, or to whom the sales were made, is not available, but the following information is summarized from the annual reports of the governor of the Bank
of Canada:
Loss on
Silver Silver silver held
acquired sold or sold
Year ounces ounces1935
3,343,604 ____ $489,3bs1936
1.671,802 .... 135,2111937
1.671,802 .... 13,8471938 6.687,208 135,746

4. According to the published statement of the Bank of Canada, as at April 12, 1939, the bank held no silver bullion and held subsidiary coin valued at $422,471.78.

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