The dismissal of the governor of the Bank of Canada demanded by certain economists

Politicians, newspaper men or bankers may do their best to belittle the fact, but, for the first time in the history of Canada, we witness the spectacle of a group of professional economists demanding, collectively, the dismissal of a high official of the government, and this individual is not just any high official of the government, but one placed in the highest of offices, an official whose views devide the policies of the Minister of Finance and of the Prime Minister himself and whose decisions affect the entire economy of the country: the Governor of the Bank of Canada.

Without doubt, the halos are beginning to slip from the heads of the high priests of Finance. Their prestige is no longer protected by the awesome "mystery of money" since the veil of their temple was rent by Douglas and, following Douglas, by the members of the Social Credit school, of which the Union of Electors is the foremost proponent in Canada.

This did not come about overnight. It was necessary to batter away at the incredulity of multitudes over a period of years. It was necessary to face the sarcasm and the sneering of so-called "enlightened" people or of the servants of that regime which was under attack from those bearing the truth of Social Credit. But the torch was never allowed to drop. Vers Demain and The Union of Electors, and the men raised up by them, have continued the work without cease.

Events have testified to the truth of the statements and warnings of Crediters, warnings which they have been shouting aloud to the world for years. The dire results of the restriction of credit have reached into every level of society. Municipal authorities, government Ministers, a conference of the Premiers of four Atlantic provinces, and finally the Premier of the largest province of Canada (Frost of Ontario) have openly reprimanded the monetary policy of the Bank of Canada.

But this time it is not only the administrators of the system who have passed judgement against the Governor of the Bank of Canada, but the very doctors of the system itself — the theorists, the thinkers of the existing financial school. Nor was it question of one or two or three isolated economists here and there, but twenty professionals from three different universities, speaking together publicly through the newspapers of the country. The letter, which was also sent to all the universities of the land, was adressed to the Federal Minister of Finance. We quote the pertinent part of the letter:

"We are facing serious economic difficulties in Canada both in our domestic economy and in our trade and financial relations with other nations.

"The undersigned economists wish to express to you that we have lost confidence in the ability of the Bank of Canada under its present management to play its proper role in ameliorating and resolving these difficulties.

"Recent public statements by the governor of the Bank of Canada have seriously shaken our faith in the wisdom and competence of the bank's management. As professional economists we are both puzzled and distressed by the economic reasoning contained in these public statements...

"Moreover, we feel that the policies actually pursued by the Bank of Canada have not displayed sufficient concern for the difficulties and uncertainties of the financial market or sufficient awareness of the true state of the economy in general.

"As economists surely we are justified in expecting that the Bank of Canada should act as a stabilizing force in the economy and not as one whose actions tend to exacerbate our economic and financial difficulties.

"We address you then, Mr. Minister, to ask that steps should be taken to alter the management of the Bank of Canada".

Various commentators have accused these "professional economists" with having attacked the monetary policy of Mr. Coyne without having, for their part, any concrete alternative policy. Furthermore, they add, there is a serious question of inflation if the gates of credit are opened wider (though this, the widening of credit, could hardly be an evil since the very obstacle to the employment of men and materials for the execution of desired projects and the production of needed goods is precisely the lack of financial credit).

It is not surprising that these "professional economists" have not put forward proposals which would make possible the efficient financing of the Canadian economy. No such proposals exist under the present financial system. Temporary alleviations, yes, but soon new ills appear to replace the old.

It is not necessary to be a "professional economist" in order to see quite clearly the ills which are afflicting our economy today. Housekeepers and leaders of industry are aware of them; as are the leaders of government municipal, provincial, federal and the administrators of public bodies such as school commissions.

Mr. Coyne deserves censure. After all he is the proponent of a monetary policy which is paralyzing the country. But even if he were replaced and the new governor held his post in silence, the results would still be the same if the same system remained unchanged.

There are monetary difficulties, such as unemployment. Such an evil is not the product of any particular governor of a bank, of any particular party or chief of government, of any particular country. The United States, for example, is afflicted with it. It is found wherever we have the same cycle of "booms" and crises, of inflations and depressions. The system is not suited to meet the economic needs of the country; except in time of war, and then it only leaves crippling conditions for the following peace-time economy.

The solution does not lie in overturning the economy, in electing a new head of the government or a new governor for the central bank. The solution lies in adjusting the financial system to the physical realities of our economy, an adjustment according to the principles set forth by Major C. H. Douglas and known under the name of Social Credit.

The "professional economists" who signed the petition did not go so far as to suggest such an adjustment and such an application.

Much progress has been made, much progress in the minds of men. We are happy to be able to testify to this. We are firmly convinced that what progress has been made is due to the wonderful work accomplished by our two publications Vers Demain and The Union of Electors. Such progress is the result of the thousand and one acts posed by our thousands of members as Crediters acts of propagation through taking subscriptions, through exerting pressure on our representatives, resolutions submitted to public bodies, opposition to taxation, to loans at rates of interest, which loans only oblige the debtor to pay twice for the work produced. It is the result of perseverance in the face of all opposition, of argument and counter-argument, of carrying on without cease as long as a point has not been gained.

Our active Crediters will find in the progress made and it is formidable a source of great encouragement to continue with redoubled ardour, with new zeal and with an ever-growing conviction which cannot but help communicate itself to others.