February 1, 1938

CANADA SHIPPING ACT, 1934 CONTROL OF SHIPMENT OF MUNITIONS BY SHIPS REGISTERED IN CANADA


Hon. C. D. HOWE (Minister of Transport) moved for leave to introduce Bill No. 9, to amend the Canada Shipping Act, 1934. He said: This amendment to the Canada Shipping Act sets up machinery by means of which the government can control shipments in Canadian vessels of arms and war materials to belligerent countries if and when such control is deemed necessary. Motion agreed to and bill read the first time.


CRIMINAL CODE

PROPOSED AMENDMENT RESPECTING OPERATION OF MOTOR CARS


Mr. T. L. CHURCH (Broadview) moved for leave to introduce Bill No. 10, to amend the criminal code. He said: This bill deals with motor cars and the criminal code in relation thereto. It is not the same bill as last year's. I think that if it gets a second reading it should go to a committee. Motion agreed to and bill read the first time.


JAPANESE IMMIGRATION

APPLICATION OF PROVISIONS OF CHINESE IMMIGRATION ACT, REVISED STATUTES, 1927 CHAPTER 95


Mr. A. W. NEILL (Comox-Alberni) moved for leave to introduce Bill No. 11, respecting Japanese immigration. He said: This bill is very short, containing only two sections. It proposes to place the Japanese nation on the same plane, as regards immigration into Canada, as that occupied by the Chinese during the last fifteen years. It is strictly moderate in its language, is nonprovocative, makes no reference to current 68 Canadian Loan in London



events in the east, and I think has the support of ninety per cent of the people of British Columbia. Motion agreed to and bill read the first time.


NIAGARA RIVER ICE JAM


On the orders of the day:


CON

Thomas Langton Church

Conservative (1867-1942)

Mr. T. L. CHURCH (Broadview):

As an emergency matter I should like to ask the government a question, notice of which I have already sent to the Minister of Public Works (Mr. Cardin). It relates to the ice jam in the Niagara river. The question is: Will the government take up with the government of the United States and the governments of Ontario and New York state the question of erecting joint regulation works in this river to prevent the recurrence of the abnormal conditions which have recently arisen? The matter is an urgent one because the light and power and transportation of nearly the whole province of Ontario is threatened.

Also, has the minister any ice-breaking plants for use on lake Erie and the Niagara river from lake Erie to Chippawa and Niagara to Queenston similar to that used in the St. Lawrence river? As I say, I sent notice of this question to the minister, but I do not see him here.

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LIB

William Lyon Mackenzie King (Prime Minister; Secretary of State for External Affairs; President of the Privy Council)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

The minister is absent;

the acting minister is present, but I think the question is of such length that it should be examined carefully before any reply is made. Possibly my hon. friend might wait until to-morrow for a reply.

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CANADIAN LOAN IN LONDON


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.


CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

I was not dealing with

the same loan.

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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

Perhaps I should make some reference to certain comments which have appeared in the London financial press in connection with the basis upon which the underwriters of the Canadian loan made their allotments. Subscriptions received by the underwriters would have made it possible for them to allot a larger proportion of the issue than they actually did allot. Apparently, however, the underwriters preferred to limit maximum allotment on any one cash application to a moderate amount, believing that more effective distribution of the new issue and a more stable market would thereby be obtained. As our issue was underwritten, this matter of allotments of subscriptions was the concern of the underwriters and not of ourselves, but I think everyone will agree with the soundness of the general objective which the underwriters apparently had in mind.

I thought it desirable to place these facts on record.

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Right Hon. R. B. BENNETT (Leader of the Opposition):

If I might be permitted,

the Australian loan to which I referred was

The Address-Mr. Blackmore

not the loan of November. I was dealing with the prior Australian loan which was at 3{ per cent, as the minister himself knows. I very much regret that the Australian loan of November 1937 is one with which I was not familiar at all. I am very glad the minister has made it clear that the Australian loan of November 1937 was sold on less favourable terms as far as the public is concerned than our own.

But I was going to ask on the orders of the day that the minister make a statement with respect to our loan, setting out what the position was. What he has now said is what I said last evening, that the underwriters saw fit to limit the allotments so that there would not be sales that would depress the market below the three-quarters of one per cent that they received as their underwriting compensation. I think if the minister will look at the Australian figures compared with ours he will see that at the time they did issue their 3J per cent loan it was on more favourable terms than ours, but perhaps it is not fair to compare what took place some time ago with what took place later.

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LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

My right hon. friend will understand that I naturally assumed he was comparing comparable things, two issues reasonably close together. In judging of market conditions I assumed he was taking two issues at about the same time.

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

I was not aware of the

other, unfortunately.

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February 1, 1938