On the orders of the day:
Hon. CHARLES A. DUNNING (Minister of Finance): Before the orders of the day are taken I think that in view of some of the statements made by the right hon. leader of the opposition (Mr. Bennett) yesterday with reference to the recent Canadian loan in London, a statement is desirable in order that the house may be in possession of the facts in relation thereto.
My right hon. friend stated that there was "less confidence in this Canadian loan than there was in the Australian loan"-I quote from Hansard. The facts are that the last Commonwealth of Australia loan issued in London was offered on November 17, 1937. It was for the amount of £11,409,954 and for a term of sixteen years, callable in thirteen years. The coupon was not 3j per cent but
3) per cent, and the loan was offered to the public at 97 to yield approximately 3-75 per cent to maturity.
Furthermore, the underwriters were left with 67 per cent of the issue on their hands, and initial quotations began At a discount of l per cent from the offering price.
In contrast, the Canadian government loan was a £10,000,000 3J per cent loan, maturing iu twenty-five years, callable in twenty years. This 3j per cent twenty-five year loan was offered to the public at a price of 98i to yield approximately 3-34 per cent to maturity. It will be noted that in spite of the much longer term the yield on the Canadian loan was much more favourable \o the borrowing government, 3-34 per cent as compared with 3-75 per cent in the case of Australia. It will also be noted that the head of the underwriting syndicate in each case was the same banking firm, R. Nivison and Company.
The right hon. leader of the opposition referred to the fact that forty-nine per cent of the Canadian loan was left in the hands of the underwriters, and stated that "the underwriters did not get forty-nine per cent of the Australian loan." He must have been misinformed. The fact is that sixty-seven per cent of the Australian loan was left in the hands of the underwriters.