UD 



lose confidence, the confidence in the present circula- 

 tion has been built up on the fact that its purchasing 

 power is always constant, if not always higher and 

 higher. 



The cheaper the living the greater the purchasing 

 power of the currency. The value of the currency in 

 comparison to other nations is no axiom for compara- 

 tive prosperity; its real value is its purchasing powers. 



FINANCIAL DIPICULTIES SOLVED. 



How effectively Warrant credits would have se- 

 conded the efforts of the Government for placing our 

 <crop abroad and according credit to our clients (prob- 

 lems which it appears will be renewed for several years 

 to come) will be apparent on citing one example. 



Had elevators existed, accompanied by warrants, it 

 would have sufficient for the Government to accept the 

 withdrawal of the wheat from the elevators, at the same 

 time permitting the banks to hold the warrants as effec- 

 tive certificates of deposit, each warrant having, instead 

 of wheat to guarantee it, the signature of, say, the pur- 

 chasing commission of each respective buying nation, 

 *>r the delegate of the creditor or debtor Government . 



Such a simple means would have permitted all our 

 i-op being exported without withdrawing a cent from 

 circulation : and one of the grave difficulties which the 

 measures taken have led to, the treasuring of the money 

 paper in circulation in the banks, would have been over- 

 come. (Paper money emitted for circulation, $1151 mil- 

 lions of which 800 millions is in the banks ; twice as much 

 as in 1914; in the hands of the public 300 millions, the 

 .-same quantity as before the war) . 



The money advanced our farmers on the warrants 

 would have remained in circulation, and since the solu- 

 tion of the obstacles regarding bags is wrapped up in 

 elevators, we would not have had either the clamour 

 over sacks to begin with, or the cry for agricultural 

 loans, or banking embarrassments and the difficulties 

 of rates of exchange. In short we would not have had 

 all the unrest wWch has characterised the last two 

 years of agricultural labour, and probably none of 

 those outbreaks which have disturbed the normal ex- 

 istence of the country and manifested themselves with 

 such unexpected violence. 



We know what conditions are the result of general 

 ^unrest, the excessive cost of living contributes undeni- 

 ably, and therefore, whatever helps to reduce the cost 



