April 14, 1926

LAB

James Shaver Woodsworth

Labour

Mr. WOODSWORTH:

loaned to depositors for the purpose of buying their own houses, are loaned to the corporation at a rate of interest be-4 p.m. low that which the corporation would have to offer on the general money market for its loans, while still making a margin above the 3i per cent which is paid to depositors.

In the next place, I would urge that there be given larger facilities for co-operative credit. It would seem to me that there should be an amendment to the Finance Act, so that producers' organizations may secure advances on securities similar to those now accepted from the banks. Why should the wheat pool, for example, be forced to go to a private corporation in order to secure money to finance its operations? Why should it not go directly to the treasury, and deposit with the treasury the very selfsame securities which it now has to deposit with the bank, and which the bank, in turn, deposits with the Treasury board?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON

Thomas Erlin Kaiser

Conservative (1867-1942)

Mr. KAISER:

As long as they get the

money, what difference does it make where they get it?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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LAB

James Shaver Woodsworth

Labour

Mr. WOODSWORTH:

One minor difference would be that from one to two per cent would be saved to the farmers.

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON
LAB
CON

Thomas Erlin Kaiser

Conservative (1867-1942)

Mr. KAISER:

It is a great big "perhaps."

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Under present conditions an organization dealing in wheat, the wheat pool for instance, goes to a bank and gets credit on its notes, or sometimes by pledging its bills of lading and that sort of thing; it may also, under the Bank Act, get credit itself on its wheat. But, under the Bank Act, can any bank advancing credit on such assignments of bills of lading and securities of that kind get money from the Dominion government on those very same securities?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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LAB

James Shaver Woodsworth

Labour

Mr. WOODSWORTH:

Money can be procured from the Dominion government, I think we all recognize, to help carry the wheat crop.

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

But what security do the

banks give?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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PRO
LAB
CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Direct to the government?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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LAB

James Shaver Woodsworth

Labour

Mr. WOODSWORTH:

I think so. I

should be glad to hear from the Finance Minister on that point, but I am informed by

[Mr. Woodsworth.l

those who are in touch with the details of the business that -the security which the government demands is precisely the same as that which the farmers are able to advance, to the banks.

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

If the banks do put up that same sort of security, the government has, in addition, the security of the banks themselves.

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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LAB

James Shaver Woodsworth

Labour

Mr. WOODSWORTH:

It may have, but I am inclined to think that the wheat crop of the west is as good security as any government is likely to get.

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON

Peter McGibbon

Conservative (1867-1942)

Mr. McGIBBON:

Would the hon. member carry his theory further and have the treasury of this country finance every industry?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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LAB

James Shaver Woodsworth

Labour

Mr. WOODSWORTH:

I have not suggested that, but I see no reason whatever why there should be maintained a financial monopoly such as we have to-day. Why should not producers' organizations of all kinds be able to do their own financing? Why should they have to be dependent upon a group of some ten private banks?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Why should not the producers' organizations be permitted to issue their own money as they did one hundred

years ago?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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LAB

James Shaver Woodsworth

Labour

Mr. WOODSWORTH:

I should say they

have every bit as much right to issue their own money as the bank has to issue its private money.

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Would the hon. member suggest what would be the value of it, in -most cases, if issued?

Topic:   QUESTIONS
Subtopic:   NATIONAL SYSTEM OF BANKING
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April 14, 1926