November 21, 1940 (19th Parliament, 2nd Session)

LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Let me proceed, please.
The second objection is that to issue quantities of money and then sterilize a large part of it by rendering it useless for buying purposes so that it will not come into competition with the money used by the government in its buying and thereby cause prices to rise, leaves the holder of the money no better off than if he did not have it. This is equivalent to taxation or a forced loan.
The whole habit of thought of the Canadian people, the dislike of intensive and

The Address-Mr. Ilsley
general government intervention in their personal transactions and private affairs, would make a universal system of price fixing and rationing, even if it were practicable in Canada, far more odious, I am satisfied, than a system of taxation and borrowing out of savings, which is the policy of this government.
Every detail of our economic life would have to be controlled by someone sitting here in Ottawa.
It is true that the nazis in Germany have gone nearly as far as this with their price fixing and rationing. But even they, with a dictatorship and with years of experience before the war, have had to combine this price fixing with very heavy war taxation and with borrowing enormous sums at interest rates higher than we pay in Canada.

Topic:   GOVERNOR GENERAL'S SPEECH
Subtopic:   CONTINUATION OF DEBATE ON ADDRESS IN REPLY
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