June 9, 1925


Section agreed to. Bill reported, read the third time and passed.


HOME BANK

PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000


Hon. J. A. ROBB (Acting Minister of Finance) moved the second reading of Bill No. 182, for the relief of the depositors of the Home Bank of Canada. Motion agreed to, bill read the second time and the House went into committee thereon, Mr, Marcil (Bonaventure) in the chair. On section 2-$5,450,000 for paying proportionate part of amounts due depositors in Home Bank.


IND

William Charles Good

Independent Progressive

Mr. GOOD:

There seems to be just a little doubt as to the second of these phrases: "For money on deposit or in current account ".

Home Bank

Perhaps the minister would allay any uneasiness on that point.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

I expected this point would be raised. My hon. friend will understand that a bank as a going concern has not only the money on deposit, but the money of the depositor for which a cheque has been issued and not yet withdrawn, and to make that perfectly clear, I would refer, for instance, to bills of exchange issued by the banks, cheques certified and accepted, outstanding at the date of suspension and not yet cashed, and persons entitled to money collected as agents and not paid at the time of suspension. If the bank had been collecting a note for my hon. friend and it had not been paid at the date of suspension, that would be an instance of it.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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Section agreed to. On section 3-Creditors for money or deposit, or in current account, defined.


CON

Henry Herbert Stevens

Conservative (1867-1942)

Mr. STEVENS:

Would the minister explain the last two lines:

And persons entitled to moneys collected as agent prior to suspension and not paid over.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

I just gave an instance of that to my hon. friend from Brant. As J. understand it, if my hon. friend had left a note at the bank for collection and the bank had collected the note but had not paid over the money, that would be a case in point. There are several cases of that kind.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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Section agreed to. On section 4-No payment to person or government entitled to charge upon assets, or bank or banking correspondent.


CON

Henry Herbert Stevens

Conservative (1867-1942)

Mr. STEVENS:

What is section 131?

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

Section 131 reads:

In the case of the insolvency of any bank,-

(a) the payment of the notes issued or tq-issued by such bank, intended for circulation, and then in circulation, together with any interest paid or payable thereon as hereinbefore provided, shall be the first charge upon the assets of the bank;

(b) the payment of any amount due to the government of Canada, in trust or otherwise, shall be the second charge upon such assets;

(c) the payment of any amount due to the government of any of the provinces, in trust or otherwise, shall be the third charge upon such assets; and,

(d) the amount of any penalties for which the bank is liable shall not form a charge upon the assets of the bank, until all other liabilities are paid. 1913, c. 9.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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CON

Henry Herbert Stevens

Conservative (1867-1942)

Mr. STEVENS:

None of these comes under the bill.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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IND

William Charles Good

Independent Progressive

Mr. GOOD:

In that connection have these prior claims been made already?

Mr. ROBBi Well, two or three, but they are provided for I think.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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IND

William Charles Good

Independent Progressive

Mr. GOOD:

Provided for in the liquidation?

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

I think so.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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Section agreed to. ' On section 5-Distribution and payment by liquidators.


CON

Henry Herbert Stevens

Conservative (1867-1942)

Mr. STEVENS:

I intimated yesterday

that the question would arise; will the liquidator receive fees for the distribution of this five million?

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

No, I do not think he expects any fees. Following the debate in the House yesterday, I explained to the Deputy Minister of Finance' this morning as a reminder, that when we made a remittance of a cheque to the liquidator, to prepare for my signature a letter making it very clear to him that there were to be no commissions paid to anybody and he was to see to it that this money was sent only to those for whom it was intended under the act, namely the depositors.

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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CON

Henry Herbert Stevens

Conservative (1867-1942)

Mr. STEVENS:

Should we not insert that in the bill?

Topic:   HOME BANK
Subtopic:   PROPOSED PAYMENT OF DEPOSITORS TO THE AMOUNT OF $5,450,000
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June 9, 1925