Portal:Conservatism/Selected picture/25
An economic downturn was beginning in Canada by 1958. By mid-1961, differences in monetary policy led to open conflict with Bank of Canada Governor Coyne, who adhered to a tight money policy. Negotiations between Minister of Finance Fleming and Coyne for the latter's resignation broke down, with the governor making the dispute public, and John Diefenbaker sought to dismiss Coyne by legislation. Once he had the opportunity to testify (denied him in the Commons), Coyne resigned, keeping his increased pension, and the government was extensively criticised in the press. By the time Diefenbaker called an election for June 18, 1962, the party had been damaged by loss of support in Quebec and in urban areas as voters grew disillusioned with Diefenbaker and the Tories. The PC campaign was hurt when the Bank of Canada was forced to devalue the Canadian dollar to 92½ US cents; it had previously hovered in the range from 95 cents to par with the United States dollar. Privately printed satirical "Diefenbucks" (pictured) swept the country.
Credit: Wehwalt