Changes During The Years Of World War I Essay

751 Words Dec 17th, 2015 4 Pages
Changes in Canada 1914-1929

The years of World War One following into the late 1920s were greatly influential to Canada in the fields of finance, medicine, and technology; some of the techniques and mechanics developed in that time frame are still the most important in our world’s industries today. The Financial act of 1914 gave the Department of Finance new powers and ended Canada’s “Gold Standard”, which was the correlated value of Canada’s currency to that of gold. Before this was enacted, chartered banks issued independent paper currency, more or less receipts, while the government transferred Dominion notes with gold (the notes were essentially proof of the gold’s existence) [1]. The chartered bank receipts could be traded for Dominion notes, and, in turn, gold. After the enactment, the government could issue Dominion notes without the gold insurance, in order to finance the war efforts. This went on until the Bank of Canada was created in 1935, which is outside the range of discussion, but that meant that chartered banks could always borrow more Dominion notes as needed, because their value was no longer related to the amount of gold that Canada possessed. Although, from July 1st 1926, Dominion notes were exchangeable for gold at a fixed price, as they were before 1914. In late 1928 – early 1929, gold ran short and the Emergency Provisions of the 1923 act were invoked, leading to a stop in gold trade [1].
[1] (The Canadian Encyclopedia n.d.) Meanwhile, the creation…

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