Transatlantic Generosity: Canada's ‘Billion Dollar Gift’ to the United Kingdom in the Second World War

On the basis of research in Canadian, British, and US records, this article examines the development and implementation of the most generous financial act in the Second World War: Canada's billion dollar gift to the United Kingdom in 1942. The origins of this extraordinary measure, the political and economic factors that influenced its introduction, and the reasons why its replacement differed so markedly in format even as it replicated the fundamental purposes of the gift, are all assessed within the context of Canada's economic relations with Britain and the United States. As this analysis demonstrates, the gift advanced Canada's enlightened self-interest and bolstered the war effort of its oldest and closest ally. It was an economic success but a political failure; how it was perceived and depicted in Canada ensured that it would not be repeated, even though the conditions and requirements that necessitated the gift had not changed and equivalent measures had to be implemented.