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BOARD DF GDVERNDRS OF THE FEDERAL RESERVE SYSTEM Jffice Correspondence To_ Mr. Thurston From. C. P. Kjndleber^.er Date April 1,% 1942 Subject! Canadian finance of United Kingdom purchases finance Minister Ilsleyfs statement in the "House of Commons Debate" of March 18, 1942 is concerned with outlining the scheme under which Canada is now financing Britain1s surplus of purchases over sales to Canada by a gift up to one billion dollars during the fiscal year ending March 31, 1943. Since we nave Lend-Lease Act to perform a similar function in this country, I do not think there is anything in the statement that will throw light upon our own problems. I might add, however, that the gift is in itself unique, and think that the Chairman*s attention might be called to the major provisions of the resolutipn on page 1549 and the summary of the Sterling Area f s deficit of Canadian dollars from the outbreak of war to February 1942, on page 1552. of Cattaha March 27th, 1942 Dear Mr. Eccles, I am enclosing herewith a report of the House of Commons debates of March 18th last. On that day the Minister of Finance made a statement in regard to our financial relations with the United Kingdom since the beginning of the war, and also gave certain information in respect to our foreign exchange position. The occasion for his speech was the introduction of a measure to provide one billion dollars to defray war expenditures by the United Kingdom in Canada. The Minister of Finance's remarks appear on pages 1549-56 of the enclosed Hansard, and I think you may find them of interest. Yours sincer The Hon. Marriner S. Eccles, Chairman of the Board of Governors, Federal Reserve System, Washington. April L, Bear Governor Towerst auoh appreciate your courtesy la sending aa, by letter of Xaroh 2?, the copy of the debate in the House of Cowsona of March 16 when the Hiniatar of Finance presented his statement on financial relations with the United X am glad to be kept advised of theae Matters, particularly in relation to your financing problem* which have a bearing on our own program* Sincerely yours. *.-^ - Hoxiorublu 0. F . towers, Governor, Bank of Canada, Ottawa, Canada. ' r^r.