An economic downturn was beginning in Canada by 1958. Because of tax cuts instituted the previous year, the budget presented by the government predicted a small deficit for 1957–58, and a large one, $648 million, for the following year. Minister of Finance Fleming and Bank of Canada Governor James Coyne proposed that the wartime Victory Bond issue, which constituted two-thirds of the national debt and which was due to be redeemed by 1967, be refinanced to a longer term. After considerable indecision on Diefenbaker's part, a nationwide campaign took place, and 90% of the bonds were converted. However, this transaction led to an increase in the money supply, which in future years would hamper the government's efforts to respond to unemployment.