The currency of Canada

The Canadian currency is unique in that it has been permitted to develop natu- rally in response to the needs of trade and industry. It has not been burdened with political compromises which have commonly accompanied wars or other emergen- cles. Parliament, furthermore, has been content with a legal structure which has per- mitted it to be used effectively. Gold, as the basis of the credit structure, assumed a place of increased importance during the Great War due to the work of the Dominion in facilitating the movement of gold between the United States and her allles. Re- cently, Canada has become the second largest producer of gold thus adding to the importance of this commodity. The bank note is the outstanding feature of the cur- rency system. It is issued at small cost and constitutes the circulating medium of the country. The fact that it is held as till money and paid out when cash is demanded accounts for the ability of the banks to operate branches at a profit in localities which are too small to support a unit bank.