Yes. It will be observed that if the lending institution does not strictly enforce its rights, or grants extensions, this will have the effect of releasing the guarantee. Knowing what we do of lending institutions in connection with their every-day operations, we know perfectly well they will not take that chance. I suggest that principle is very important in making this measure effective.
It has been said so frequently it is not necessary to repeat that the legislation, in itself, is not new. Therefore it seems to me we should profit somewhat by the experience of other countries. It must be remembered, however, in dealing with matters of this kind, that Canada is a country entirely different from the great republic to the south of us, as will be found by those who have to administer the legislation-. It is undesirable to arouse too great expectations with respect to a matter of this sort, when it must be patent to even the superficial observer that the limitations of benefits are very apparent.
The twofold object which the commission, and through it the government, have in mind is, in the first place, the improvement of the homes of our people, and in the second place
Home Improvement Loans
-and perhaps this should be indicated first- employment on as large a scale as possible in useful and productive service. Whether we put one or the other first, it does not make any difference. For that purpose the country' is obligating itself to a maximum of $7,500,000, which is fifteen per cent of $50,000,000. Seven and a half million dollars is a substantial sum of money, and we run the risk of losing all or part of it. We would run a risk of losing very little of it if it were not that apparently we have agreed, although it is not so indicated, that the lending institution is to be regarded not as a series of branches, but as a whole. A lending institution having two hundred branches each of which advances $5,000 will have $1,000,000 lent out. Fifteen per cent of that is $150,000, which the country would have to pay. I am not quite sure if that is sound finance, but it is exactly what the bill means, in view of the answer given the other day.
Subtopic: PROVISION TO ENCOURAGE REPAIR OF RURAL AND URBAN DWELLINGS