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BOARD OF GOVERNORS
or THE'

FEDERAL RESERVE SYSTEM

Office Correspondence
To

Chairman Eccles

From

Date jmy 6,
Subject:

Mr┬╗ Thurston

In connection with our conversation yesterday, it is
interesting to note that responsibility in Canada flows directly from the House of Commons (which is supreme) through the
Cabinet and to various administrative agencies.
Under Orders in Council, all control of prices, rentals,
rationing, etc., comes uiider the Wartime Prices and Trade Board,
of which the chaiman is D. Gordon, Deputy Governor of the Bank of
Canada. He reports directly to the Finance Minister, Ilsley, who
in turn is a Member of Parliament and present on the floor of the
House.
The other major administrative agency is the Wartime Industries Control Board, which is responsible for supply and allocation of all materials essential to the war effort, and the
chairman of which is Henry Borden.
Each of these two chairmen in turn is an ex officio member
of the other's board. There are in turn tie-ins between these boards
and the Economic Advisory Committee, the Canadian Shipping Board,
the Export Control Committee, the Food Requirements Committee, and
the National Selective Service Advisory Board. Various subordinate
agencies function directly under the boards, such, for example, as
the Wartime Food Corporation, Ltd., of which the head is K. W.
Taylor, who is Foods Administrator. While I don f t suppose any organization is perfect, this one certainly looks streamlined and
efficient in contrast with our own scattered and diffuse authorities.
The reports of the Wartime Prices and Trade Board are made
to the Governor General over the signature of the Minister of Finance. Ueports of the Wartime Prices and Trade Board state that it
"does not determine policy; it administers policies determined and
entrusted to it from time to time by the Government." In other words,
policy originates at Cabinet level, and I have no doubt that much
confusion is avoided by this clarification of where policy is made
and administration carried out.