§ Before leaving last year, there is one subject connected with Canadian finance which I think it will interest the House to hear. We have obtained from the Canadian Government credit in dollars for purchases which we made in Canada; on the other hand, we have supplied to the Canadian Government sterling credit for purchases made by them in Europe. So far, these items have been treated separately; that is to say, they have both appeared in our accounts—our purchases in Canada, and the sterling advanced by us for the purchases of the Canadian Government in Europe—as off-sets. It seems to me this is not the right method. It is really a question of exchange, and the right way is to bring only the excess between the two countries into our accounts. I communicated with the Canadian Finance Minister in this sense, and I have received a telegram from him, through the Governor-General, in which he agrees with the alteration I propose. The effect of this will be apparent to the Committee. Up to the present the total amount treated in this way is at least £80.000,000. When I he adjustments are made, the effect will be that both the nominal amount of our debt and the debt of the Canadian Government will be diminished to that extent. It is not possible, with an arrangement so recently agreed to to include it in the accounts I submit to-day. Of course, it is a question of book-keeping, and makes no difference in the net results that I shall present to the Committee.
§ I should like to take this opportunity of expressing the appreciation of the Government, which I am sure will be shared by the House of Commons, of the hearty spirit of co-operation which has been shown by the Canadian Government, not 695 only in this, but in every other question connected with finance. I may say, also, that, whereas in the early stages of the War our loans to the Dominion Government exceeded what they lent to us, now, thanks to the exertions which they have recently made, the balance is the other way.