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Jffice Correspondence

Mr. Thurston


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,

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,
Bank of Canada,
Ottawa, Canada.