Evening star., 1934-04-20
CUT IN CANADIAN
DOLLAR OPPOSED
Finance Minister Says Ratio
Between U. S. Dollar and
Pound Must Be Set.
By the Associated Press.

BY the Associated Press.
OTTAWA, April 20.-The convic-
ton that the stabilization Of Canad-
ian currency must await the estab-
lishment of a definite ratio between
the United States dollar and the
British pound was expressed by
Finance Minister E. N. Rhodes in his
annual budget message to Parliament.
1T is sometimes claimed that we
should devalue our currency on the
same basis as the United States have
devalued theirs" he said
This criticism appears to reveal
complete lack of appreciation OF the
fact that our dollar is currently SELL
ing on an approximate parity with
that of the United States. which has
been devalued by slightly over 40 per
cent"
Mr.. Rhodes announced that Canad-
ian finances improved by S22. 100000.
but nevertheless showed deficit of
Sl35, 100000 in the fiscal year ended
March 81, which he called one Of un-
mistakable recovery.
Tax Receipts Fell Short.
Last years deficit compared with
s157. 100000 the previous year. This
included a $24,100,O00 deficit on ordi-
nary account, as against $43,200,000
the year before Total expenditures
were put at $459, 100000, in contrast
to s468, ,726,O00 the previous year-a
decrease of S9,500,0OO
Revenues were estimated in the
present year at $324,Ol3,00O, compared
to S311,130,000 last year. Receipts
from taxation fell short of estimates
in the previous budget by S33,000,000
he said.
Losses of S58,0OO,OOO in operating
the Canadian National Railway Sys-
tenn, capital expenditures and unem-
ployment relief accounted for part OF
the deficit in l933-l934.
The total net debt was put at ST.
731 ,696,00O as of last March 81, as
against $2,599,089,oO0 on March 81
1898.
Trimming ordinary expenses to a
level admitting no further reductions
made possible most of the decrease in
the red figures, the Minister an
nounced.
He said the government intended tc
tnaugurate legislation to ease farmers
debt burdens, but said it would be
impossible to extend the plans to al
forms of debt.
For the first time in several years
Mr.. Rhodes continued, 1t is possible
to review operations in terms of busi-
ness improvement, reviving conf
dence and expanding revenues.
He cited as an example a % pei
cent improvement in the volume oi
business between February, 1888, anc
February, 1884.
Trade Pacts Beneficial.
Other salient statements in thu
finance minister's report include:
Beneficial results of empire trade
agreements were shown during the
year by expanding trade with empire
countries.
A reduction in the average interes
rate on Dominion government obi
cations to ABS per cent was forecas
within the next few months because
of ref1nancing. The rate is now 4.6:
per cent. in 1881 it was 5 per cent
A further reduction is hoped fol
In the interest rate on bank and othe
deposits, with general interest rat
reduction on commercial and othel
loans.
Canada will not default on any O.
her obligations.
All indicators of economic trend
show improved conditions during tn,
past year, beginning early in the yea
and continuing to the present, ant
with enough indication for the futur,
to inspire confidence if not undue
optimism.
There was a decided improvement
In earnings of the Canadian Nationa
Railways in the first three months o
1884, resulting in an increase in ne
returns of s4,ooO,OoO, compared will
the corresponding period of 1888.