A Modifying Surroundings
The Fantastic Melancholy, fuelled by drought ailments and a worldwide financial slump, contributed to a improve in authorities and unparalleled community criticism of Canada’s banking process. It also coincided with Prime Minister R.B. Bennett’s concern that Canada lacked a direct implies for settling international accounts. In 1933, he established up a Royal Fee to study “the business and functioning of our entire banking and monetary method [and] to take into account the arguments for or towards a central banking institution.”
The arguments “for” won. The Royal Fee, headed by Lord Macmillan, recommended in its report the establishment of a central bank. A 7 days immediately after the report was built public, the Prime Minister introduced that his government would adopt the recommendations.
An appendix to the report, titled “Recommendations as to some of the Most important Options of the Structure of a Central Bank for Canada,” grew