Hon. J. A. ROBB (Minister of Finance) moved that the House go into committee to consider the following proposed resolution:
Resolved,-1. That there shall be a board known as the Canadian Farm Loan Board which shall be a body politic and corporate consisting of four members, one of whom shall be the Minister of Finance and the other three shall be appointed by the governor in council and of the latter one shall be designated by the Canadian Farm Loan commissioners.
2. That the board shall issue farm loan bonds to make long term loans to farmers, and the government of Canada shall provide initial capital for the board to an amount not exceeding five million dollars and subscribe an amount of 5 per cent of the capital stock as loans are made by the board.
3. That the government of each province in which loans are made shall be required to subscribe to the capital stock of the board as loans are made in such province an amount equal to 5 per cent of the said loans and each borrower an amount of 5 per cent of his loan payable at the time the loan is made. The loans shall be made on the security of first mortgage on farm lands; the interest rate shall be such a rate in excess of the interest payable on the farm loan bonds as is sufficient to provide for the expenses of operation; the farm loan bonds shall be legal investments and may be purchased by the Minister of Finance provided that the amount of such bonds held by him shall not at any time exceed $15,000,000; and the amount of any payment by the government of Canada on account of capital of the board or as payment for farm loan bonds purchased shall be paid out of the consolidated revenue fund on the authority of the governor in council.
Motion agreed to and the House went into committee, Mr. Johnston in the chair.