May 13, 1932 (17th Parliament, 3rd Session)


George Gibson Coote

United Farmers of Alberta


If I caught the hon. member aright, he said that if we had what is called an adverse balance of trade, it would depreciate our dollar. That would be the case if we were not attempting to hold it up. If we increase our exports, of course that will tend to bring our dollar back to par. When the United States and other countries take the proper measures to restore price levels, somewhere near where they were in 1928, naturally our dollar would come back to par. Our dollar is down to-day because of the low price our exports are getting in foreign markets. It must be remembered that it takes to-day three bushels of wheat in order to get the same amount of foreign exchange one bushel produced in 1928. That is the main reason why we are met with an unfavourable balance of trade at this time, and the quickest way to restore a proper balance is to allow our dollar to come down to where the trade balance will take it. *

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