e ground by the explosion resulting from
the ramming of an ammunition ship. But outside of the great toll of
life these losses could be repaired and were speedily made up in the
erection of new Parliament Buildings and the creation of a more modern
city of Halifax to dominate the entrance of the great highway from the
East.

Early in the autumn of 1914, the Bank of England, realizing that it
would be impossible for American firms to ship gold to London in
payment of maturing indebtedness there, announced that deposits of gold
by such firms with the Receiver-General at Ottawa would be regarded as
if received by the Bank at London. Under this arrangement many million
dollars of the precious metal were shipped to the Dominion Capital,
where a Branch of the Royal Mint had already been established in
January, 1908. The amount in the vaults at Ottawa during the war
became almost twice the total amount held by British financial
institutions in 1913. As part of it was raw gold, the Ottawa Branch of
the Royal Mint {469} had to construct a new refinery in 1917 which had
a refining capacity of one million ounces of fine gold per month. The
Branch Mint had thus a larger capacity than any other Mint or gold
refinery in the world. Shilling blanks were also produced for the
Royal Mint in London as well as silver and bronze pieces for
Newfoundland and nickel-copper pieces for Jamaica.

Later on the gold was returned to the United States when the British
exchange became unfavourable owing to the huge purchases made in that
country. Many Canadian business men at this time advocated a
moratorium, but the Government steadfastly resisted such a suggestion
until ultimately it was found unnecessary.

Financially, the Canadian people from 1915 to 1919 were not unmindful
of their national obligations. Six domestic loans were issued during
the war period amounting to 2,203 million dollars, while War Savings
Certificates accounted for another 12 1/2 millions.

On the announcement of the Armistice in November, 1918, the Government
with the same energy and foresight which characterised their entrance
into the conflict, began to demobilise the army which they had sent
overseas. Within six months the bulk of the men were back in their
homes. The opportunity was then taken of offering to the returned men
land grants and loans for the purchase of farming implements. Up to
the end of 1920, over 3 1/2 million acres had been disposed of in