Hon. CHARLES A. DUNNING (Minister of Finance): Mr. Speaker, the amendments
made by the senate to Bill No. 132, to incorporate the central mortgage bank, have, in my opinion, the effect of depriving tens of thousands of Canadian urban residents of the benefits of the measure. Broadly, the amendments eliminate any reference throughout the bill to non-farm mortgagors. I give that explanation in order to clarify the resolution I intend to move shortly. The resolution I intend to move is one of non-concurrence by this house with that particular group of amendments. There are certain amendments suggested by the senate with which I shall deal in detail and in which I am disposed to recommend that this house concur. But with respect to the main amendments proposed I desire to point out to this house that if they are accepted here they mean relieving the treasury to only a limited degree, but relieving the mortgage lending institutions to a major degree in connection with that vital feature under which they agree, if they become members, to reduce the rate of interest on non-farm mortgages within the ambit of the bill to 51 per cent. As this house is well aware, the major expense to the dominion treasury is in connection with those adjustment features of the bill which relate to farm mortgages. If the senate amendments are accepted it means that the dominion treasury bears that major share of the expense contemplated by the original bill, but that the urban residents of Canada, the urban mortgagors, lose the advantages which the terms of the bill provide should be conveyed to them by the lending institutions without any assistance from the dominion treasury. I think these reasons are sufficient for the resolution which I am about to move, as follows:
That a message be sent to the senate to acquaint their honours that this house agrees to their amendments, Nos. 7, 10, 11, 12, 13, 14 and 16 to Bill No. 132, an act to incorporate the central mortgage bank, and disagrees to amendments Nos. 2, 3, 4, 5, 6, 8, 9, 15, 17, 18, 19 and 20 for the following reasons:
1. Because the amendments would make it impossible to accomplish several of the fundamental objectives of the bill as passed by this house.
2. Because these amendments would deprive tens of thousands of owners of non-farm homes in all provinces of Canada of the privilege of having their mortgages adjusted in accordance with the provisions of the bill, and particularly of having the interest rate on such mortgages reduced to a rate not in excess of 51 per cent.
3. Because these amendments would result in only a relatively small saving to the dominion treasury and the cost which the treasury would still have to bear would be out of all proportion to the benefits obtained by the nation.
4. Because with these amendments the bill would not accomplish a major objective of the bill which relates to the permanent improvement of mortgage lending practices in this
Central Mortgage Bank