Hon. J. L. ILSLEY (Minister of Finance):
Mr. Speaker, it has been brought to my attention that the statement which I made on April 5 announcing the terms of the fourth victory loan has been misinterpreted. At that tinm I stated that the long term bonds bearing interest at three per cent per annum will mature at par on May 1, 1957, but will be redeemable at the option of the government at par and accrued interest on or after May 1, 1954, at sixty days' notice. This redemption date is provided in the terms of the offering merely as a time after which the government has the option of redeeming or calling the bonds before maturity and paying the holders one hundred cents on each dollar they have invested. Similar callable provisions are to be found in practically all long term government bonds.
This has been misinterpreted to give prevalence to the story that the bonds of the fourth victory loan will not be marketable until after May 1, 1954, which is absolutely incorrect. The bonds of the fourth victory loan will be just as saleable as the bonds of earlier victory loans, which have
had a ready market since their date of issue. Before every victory loan we are deluged with rumours all of which seem to attempt to impair the sale of bonds. The fourth victory loan is no exception. Such rumours are false, vicious and subversive. They could not be worse if they were enemy inspired, which they may be. I urge that Canadians everywhere do everything in their power to stamp out such rumours. I suggest that they inquire into the facts, before repeating stories which are designed to impair the effectiveness of national efforts, such as the fourth victory loan.
Subtopic: CALLABLE PHOVISION IN RESPECT OF 3 PER CENT 1957 ISSUE '