Hon. Sir THOMAS WHITE (Minister of Finance) moved for leave to introduce Bill No. 47, to facilitate certain financial arrangements between the Government of the United Kingdom of Great Britain and Ireland and the Canadian Pacific Railway Company, and for other purposes.
He said: The object of the Bill is indicated in the title which I have just read. I may explain further, for the information of the House, that the Government of the United Kingdom, for the purpose of making financial provision for the prosecution of the war. has taken over and acquired, and proposes to take over or acquire, by compulsory purchase or otherwise, from persons resident in the United Kingdom, certain securities of the Canadian Pacific Railway Company and of the companies whose lines are leased to that company. The purpose of the British Government in so taking over these securities is to make them available for raising money on this side of the Atlantic; in other words, to assist the exchange situation, which for a considerable time has been adverse to Great Britain. In order that the British Government may have securities which can be sold on this side of the Atlantic, they have requested the Canadian Pacific Railway Company to issue collateral trust bonds of the company payable in United States currency. These collateral trust bonds are to be exchanged by the Canadian Pacific Railway Company, if and when requested by the Government of the United Kingdom, for the consolidated debenture stock and other securities payable in sterling which shall have been acquired by the Government of the United Kingdom in London. That, in brief, is the transaction, and it is in order to empower the Canadian Pacific Railway Company to issue these collateral trust bonds to an amount sufficient for the purpose of exchange with the British Government for these consolidated debenture and other sterling securities that this. Bill is introduced.