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The¡¡financing¡¡of¡¡the¡¡war¡¡and¡¡of¡¡the¡¡industrial¡¡expansion¡¡which¡¡accompanied¡¡it¡¡was¡¡a¡¡heavy¡¡task¡£¡¡For¡¡years¡¡Canada¡¡had¡¡looked¡¡to¡¡Great¡¡Britain¡¡for¡¡a¡¡large¡¡share¡¡alike¡¡of¡¡public¡¡and¡¡of¡¡private¡¡borrowings¡£¡¡Now¡¡it¡¡became¡¡necessary¡¡not¡¡merely¡¡to¡¡find¡¡at¡¡home¡¡all¡¡the¡¡capital¡¡required¡¡for¡¡ordinary¡¡development¡¡but¡¡to¡¡meet¡¡the¡¡burden¡¡of¡¡war¡¡expenditure£»¡¡and¡¡later¡¡to¡¡advance¡¡to¡¡Great¡¡Britain¡¡the¡¡funds¡¡she¡¡required¡¡for¡¡her¡¡purchase¡¡of¡¡supplies¡¡in¡¡Canada¡£¡¡The¡¡task¡¡was¡¡made¡¡easier¡¡by¡¡the¡¡effective¡¡working¡¡of¡¡a¡¡banking¡¡system¡¡which¡¡had¡¡many¡¡times¡¡proved¡¡its¡¡soundness¡¡and¡¡its¡¡flexibility¡£¡¡When¡¡the¡¡money¡¡market¡¡of¡¡Britain¡¡was¡¡no¡¡longer¡¡open¡¡to¡¡overseas¡¡borrowers£»¡¡the¡¡Dominion¡¡first¡¡turned¡¡to¡¡the¡¡United¡¡States£»¡¡where¡¡several¡¡federal¡¡and¡¡provincial¡¡loans¡¡were¡¡floated£»¡¡and¡¡later¡¡to¡¡her¡¡own¡¡resources¡£¡¡Domestic¡¡loans¡¡were¡¡issued¡¡on¡¡an¡¡increasing¡¡scale¡¡and¡¡with¡¡increasing¡¡success£»¡¡and¡¡the¡¡Victory¡¡Loan¡¡of¡¡1918¡¡enrolled¡¡one¡¡out¡¡of¡¡every¡¡eight¡¡Canadians¡¡among¡¡its¡¡subscribers¡£¡¡Taxation¡¡reached¡¡an¡¡adequate¡¡basis¡¡more¡¡slowly¡£¡¡Inertia¡¡and¡¡the¡¡influence¡¡of¡¡business¡¡interests¡¡led¡¡the¡¡Government¡¡to¡¡cling¡¡for¡¡the¡¡first¡¡two¡¡years¡¡to¡¡customs¡¡and¡¡excise¡¡duties¡¡as¡¡its¡¡main¡¡reliance¡£¡¡Then¡¡excess¡¡profits¡¡and¡¡income¡¡taxes¡¡of¡¡steadily¡¡increasing¡¡weight¡¡were¡¡imposed£»¡¡and¡¡the¡¡burdens¡¡were¡¡distributed¡¡more¡¡fairly¡£¡¡The¡¡Dominion¡¡was¡¡able¡¡not¡¡only¡¡to¡¡meet¡¡the¡¡whole¡¡expenditure¡¡of¡¡its¡¡armed¡¡forces¡¡but¡¡to¡¡reverse¡¡the¡¡relations¡¡which¡¡existed¡¡before¡¡the¡¡war¡¡and¡¡to¡¡become£»¡¡as¡¡far¡¡as¡¡current¡¡liabilities¡¡went£»¡¡a¡¡creditor¡¡rather¡¡than¡¡a¡¡debtor¡¡of¡¡the¡¡United¡¡Kingdom¡£

It¡¡was¡¡not¡¡merely¡¡the¡¡financial¡¡relations¡¡of¡¡Canada¡¡with¡¡the¡¡United¡¡Kingdom¡¡which¡¡required¡¡readjustment¡£¡¡The¡¡service¡¡and¡¡the¡¡sacrifices¡¡which¡¡the¡¡Dominions¡¡had¡¡made¡¡in¡¡the¡¡common¡¡cause¡¡rendered¡¡it¡¡imperative¡¡that¡¡the¡¡political¡¡relations¡¡between¡¡the¡¡different¡¡parts¡¡of¡¡the¡¡Empire¡¡should¡¡be¡¡put¡¡on¡¡a¡¡more¡¡definite¡¡and¡¡equal¡¡basis¡£¡¡The¡¡feeling¡¡was¡¡widespread¡¡that¡¡the¡¡last¡¡remnants¡¡of¡¡the¡¡old¡¡colonial¡¡subordination¡¡must¡¡be¡¡removed¡¡and¡¡that¡¡the¡¡control¡¡exercised¡¡by¡¡the¡¡Dominions¡¡should¡¡be¡¡extended¡¡over¡¡the¡¡whole¡¡field¡¡of¡¡foreign¡¡affairs¡£

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The¡¡war¡¡also¡¡brought¡¡changes¡¡in¡¡the¡¡relations¡¡between¡¡Canada¡¡and¡¡her¡¡great¡¡neighbor¡£¡¡For¡¡a¡¡time¡¡there¡¡was¡¡danger¡¡that¡¡it¡¡would¡¡erect¡¡a¡¡barrier¡¡of¡¡differing¡¡ideals¡¡and¡¡contrary¡¡experience¡£¡¡When¡¡month¡¡after¡¡month¡¡went¡¡by¡¡with¡¡the¡¡United¡¡States¡¡still¡¡clinging¡¡to¡¡its¡¡policy¡¡of¡¡neutrality£»¡¡while¡¡long¡¡lists¡¡of¡¡wounded¡¡and¡¡dead¡¡and¡¡missing¡¡were¡¡filling¡¡Canadian¡¡newspapers£»¡¡a¡¡quiet¡¡but¡¡deep¡¡resentment£»¡¡not¡¡without¡¡a¡¡touch¡¡of¡¡conscious¡¡superiority£»¡¡developed¡¡in¡¡many¡¡quarters¡¡in¡¡the¡¡Dominion¡£¡¡Yet¡¡there¡¡were¡¡others¡¡who¡¡realized¡¡how¡¡difficult¡¡and¡¡how¡¡necessary¡¡it¡¡was¡¡for¡¡the¡¡United¡¡States¡¡to¡¡attain¡¡complete¡¡unity¡¡of¡¡purpose¡¡before¡¡entering¡¡the¡¡war£»¡¡and¡¡how¡¡different¡¡its¡¡position¡¡was¡¡from¡¡that¡£¡¡of¡¡Canada£»¡¡where¡¡the¡¡political¡¡tie¡¡with¡¡Britain¡¡had¡¡brought¡¡immediate¡¡action¡¡more¡¡instinctive¡¡than¡¡reasoned¡£¡¡It¡¡was¡¡remembered£»¡¡too£»¡¡that¡¡in¡¡the¡¡first¡¡360£»000¡¡Canadians¡¡who¡¡went¡¡overseas£»¡¡there¡¡were¡¡12£»000¡¡men¡¡of¡¡American¡¡birth£»¡¡including¡¡both¡¡residents¡¡in¡¡Canada¡¡and¡¡men¡¡who¡¡had¡¡crossed¡¡the¡¡border¡¡to¡¡enlist¡£¡¡When¡¡the¡¡patience¡¡of¡¡the¡¡United¡¡States¡¡was¡¡at¡¡last¡¡exhausted¡¡and¡¡it¡¡took¡¡its¡¡place¡¡in¡¡the¡¡ranks¡¡of¡¡the¡¡nations¡¡fighting¡¡for¡¡freedom£»¡¡the¡¡joy¡¡of¡¡Canadians¡¡was¡¡unbounded¡£¡¡The¡¡entrance¡¡of¡¡the¡¡United¡¡States¡¡into¡¡the¡¡war¡¡assured¡¡not¡¡only¡¡the¡¡triumph¡¡of¡¡democracy¡¡in¡¡Europe¡¡but¡¡the¡¡continuance¡¡and¡¡extension¡¡of¡¡frank¡¡and¡¡friendly¡¡relations¡¡between¡¡the¡¡democracies¡¡of¡¡North¡¡America¡£¡¡As¡¡the¡¡war¡¡went¡¡on¡¡and¡¡Canada¡¡and¡¡the¡¡United¡¡States¡¡were¡¡led¡¡more¡¡and¡¡more¡¡to¡¡pool¡¡their¡¡united¡¡resources£»¡¡to¡¡cooperate¡¡in¡¡finance¡¡and¡¡in¡¡the¡¡suppl

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