This resolution is almost self-explanatory. We propose to amend section 88 of the Bank Act by allowing a bank to lend money to the owner, tenant or occupier of land for the purchase of seed grain, upon the security of the crop to be grown from such seed grain. At present it is not open to the banks to take such security, and it was thought advisable, having regard to the desirability during this year of greatly increasing production and prevailing financial conditions, that the amendment should be made and this additional power given to the banks. Representations have been made to me for some time past with regard to this matter. I took it up with all the chartered banks in Canada, and while it appears perfectly clear from the replies which I have received from the banks that the general credit and standing of the borrower will still be a controlling factor in their determination of whether or not loans will be made, it would appear also that it may be an advantage to the borrowing community that this legislation should be enacted, as the banks would, I am convinced, be more ready to lend than if they were not permitted to take this security.
Subtopic: LOANS FOR SEED GRAIN.