March 20, 1941 (19th Parliament, 2nd Session)

SC

Victor Quelch

Social Credit

Mr. QUELCH:

I appreciate that answer of the minister. It is similar to the answer given by his predecessor, Mr. Dunning. The minister is aware of the fact that many prominent bankers of the United States have advocated the adoption of what is known as the 100 per cent system. That is the policy which the minister has just mentioned. If he has read "One Hundred Per Cent Money" by Irving Fisher, he will have seen there a long list of prominent bankers of the United States who advocated that this system should be put into operation. Therefore, evidently they did not visualize being put out of operation by its adoption. Furthermore, it is advocated strongly by Robert Hemphil, former credit manager of the federal reserve bank at Atlanta, and more recently by Babson's Incorporated in their letter of March 20, 1939, where they point out that the banks would still continue to make a fair profit. They also point out that you would have to differentiate between current accounts and savings. At the present time a depositor is supposed to give notice before he can draw out his money from a savings account; but, as a matter of fact, savings accounts are treated the same as current accounts in that respect. As Babsons, however, point out, you would have to have the savings banks deposits withdrawable on notice only.

Topic:   WAR APPROPRIATION BILL
Subtopic:   PROVISION FOR GRANTING TO HIS MAJESTY AID FOR NATIONAL DEFENCE AND SECURITY
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