June 25, 1925

CON

Hugh Alexander Stewart

Conservative (1867-1942)

Mr. STEWART (Leeds):

Is it not a fact

that the provinces already have power to borrow money by loan upon the farm credit or rural credit system? If so, what is the object of this government borrowing money to lend to the provinces? Has any province asked for this legislation?

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

I understand that seven provinces have rural credit schemes. It has been represented to us that money might be secured at a little lower rate of interest with the Dominion credit behind the bonds.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

What provinces have

provision for rural credits?

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

I have not the list before me.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

Thomas Vien

Liberal

Mr. VIEN:

All except Quebec and Prince

Edward Island. I know that New Brunswick has a different system from the other provinces.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

In view of the statement made. I would like to quote the New Brunswick Act, because New Brunswick as a province has not a rural credit act. It passed an act in 1923 giving the municipalities authority to issue bonds and borrow money and set up municipal farm loan organizations. The thing was so impracticable that no municipality would undertake it. It would mean we would have fifteen farm loan organizations in the little province of New Brunswick, each with an overhead which would make it impossible to handle a farm loan scheme with any hope of success.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

Thomas Vien

Liberal

Mr. VIEN:

My hon. friend will admit that in New Brunswick the scheme was not a success because the municipalities refused to undertake the responsibility for the payment of capital and interest advanced to the farmers under the scheme.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

Would the hon. member suggest that the municipalities take up a scheme like that?

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

Thomas Vien

Liberal

Mr. VIEN:

Somebody should be responsible for the repayment of capital and interest.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

The fact is that the

government of New Brunswick "passed the buck." I went before the provincial government three years ago with one of the biggest delegations that ever appeared before them for any purpose, to ask them to pass a farm loan act, and this is the gist of the act they passed:

Any municipality desiring to borrow money for the purpose of lending the same to farmers in such municipality may do so upon passing a resolution at any regular meeting of the municipal council of Buch municipality, or at a special meeting duly called for that purpose, setting forth that the municipality wishes to borrow a sum of money, not exceeding a specific amount, repayable annually at the rate of five per cent per annum.

The province did not even propose to lend money to the municipalities.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Robert Alexander Hoey

Progressive

Mr. HOEY:

Did the province guarantee the municipal bonds?

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

No, they simply granted the municipalities the right to issue bonds and go into it on their own account-a power which I think they had in any case. As I say, it was simply a matter of passing the buck.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

Thomas Vien

Liberal

Mr. VIEN:

Somebody has to hold the buck.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

The expression is not a very elegant one, but if any more inelegant expressions were allowed it could be used in reference to this deplorable action on the part of the provincial government. Under this scheme our province will not get the benefit of this proposed legislation.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

Thomas Vien

Liberal

Mr. VIEN:

Why?

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

Because a government that will pass an act of this kind-and it is entitled the Farmers' Relief Act-

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

Thomas Vien

Liberal

Mr. VIEN:

But they will adopt legislation if they choose.

Rural Credits

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

I am afraid they will not choose to; they never have chosen before. We asked our provincial government for bread and they gave us a stone. I am much disappointed. I thought from the research work that had been carried on by Dr. Tory and from the recommendations from the Banking and Commerce Committee along this line, this government would bring down a real rural credits act of its own, to be administered, possibly, by provincial boards. But this act will be of no benefit in New Brunswick, and I doubt if it will to any of the Maritime provinces. It may be of some benefit to some provinces that have rural credit acts in operation; it will enable them to secure additional money to carry on. I am surprised that there is not some limit set to the amount each province will be allowed to get from the Dominion government under this act. Suppose Ontario makes an application to-morrow for $10,000,000 under this act, what is going to happen?

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Mr. ROBB:

It will be at the discretion of the Treasury board, in which the hon. member for Bow River has such great confidence.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink
PRO

Thomas Wakem Caldwell

Progressive

Mr. CALDWELL:

If that is the case, I have no fear of their getting too much money. In fact, I was surprised that the hon. member for Bow River would leave it to the discretion of the Treasury board, because if that is done. I do not think they would even get $10,000,000.

Topic:   QUESTIONS
Subtopic:   RURAL CREDITS
Sub-subtopic:   FEDERAL ASSISTANCE TO AGRICULTURE-LONG TERM LOANS TO FARMERS
Permalink

June 25, 1925