May 1, 1944

BANK ACT AMENDMENT

CONDITIONS GOVERNING TEN-YEAR EXTENSION OP BANK CHARTERS


Hon. J. L. ILSLEY (Minister of Finance) moved for leave to introduce bill No. 91 respecting banks and banking. * He said: Mr. Speaker, I think I should give a very brief explanation on the first reading. This bill is intended to constitute the basis of the decennial revision of the Bank Act. It extends the charters of the existing ten chartered banks for another ten-year period, in other words, until July 1, 1954. In addition, it provides for a great many changes in the 'resent legislation governing the operations if the banks, their powers and the limitations *hd controls to which they are subject. Several of these changes are not only important but complicated, and some of them tie in with other legislation to be introduced at this session. I intend to make an extended statement on second reading in order to give the house as clear and complete an explanation as possible of these changes, as well as of the philosophy and guiding principles with which we approached this revision of our banking legislation. At the present time all I will do is to call attention to the more important changes we are recommending. These changes may be listed as follows: (1) Changes regarding note issue, to be found in sections 60 and 61, taking away the right of a bank to issue or reissue notes in Canada after January 1, 1945, and providing for the complete retirement of such notes after January I, 1950. Right to issue outside of Canada is limited to ten per cent of paid up capital, and there are a number of consequential provisions. (2) Various provisions making the Bank of Canada the exclusive agency for redemption of notes, both of defunct banks and, by 1950, of the existing banks. (3) An amendment to section 92 to provide for transfer of unclaimed deposits,. et cetera, and the liability to repay them, to the Bank of Canada-after ten years. (4) Amendments to section 91, reducing the maximum rate of interest or discount which banks may charge from seven to six per cent, and allowing banks to make unsecured personal instalment loans on a basis equivalent to a five per cent discount for a one-year loan repayable in equal monthly instalments. (5) Various amendments to make it possible for additional types of borrowers to get credit under section 88. (6) Suggested amendments proposed for the consideration of the banking and commerce committee to simplify the complicated procedure now necessary in connection with section 88 loans. _ (7) Various important amendments to sections 88 and 89 in order enable the banks to meet the special needs of farmers and fishermen, chiefly for intermediate credit. These provisions are to be, supplemented by other legislation, which I shall explain to the house on second reading of this bill.


NAT

Richard Burpee Hanson

National Government

Hon. R. B. HANSON (York-Sunbury):

Mr. Speaker, can the minister state now when he proposes to move the second reading and make the extended statement to which he referred? I gather from what he said that the changes proposed in the Bank Act are numerous and important. I have not been permitted to examine a copy of the draft bill; I hope to be able to read it now. It is a bulky volume, and anybody who intends to give any study to this bill should be given time to do so, notwithstanding what is no doubt the desire on all sides to have the bill referred to the banking and commerce committee at as early a day as possible. But I suggest to the minister that twenty-four hours is not enough time, and we might arrange by consent that the second reading come up on Thursday, when he will make his statement, if that is convenient and satisfactory to the minister. Before the minister turns down that suggestion, I would point this out to him, if I have the consent of the house. We are now

Questions

entering on the fourth month of the session. This bill must have been in the minds of the administration for months before the house opened in January. Everybody knows that the Bank Act is revised every ten years, or, if it is not revised in the tenth year, the charters are extended for a very limited term. So that this bill must have been in preparation for a long time, and it is pretty late to be introducing it now. I am not complaining about that, because I imagine that the bill must have been revised and refined again and again; but I suggest that overnight is a pretty short time for hon members who are interested in this legislation to study the bill. I therefore ask the minister if he will be good enough to give the house assurance that before the second reading is called, before he makes his statement, hon. members will have an opportunity to read and study the bill, which we have not yet seen.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OP BANK CHARTERS
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Mr. Speaker, I was very anxious to make the statement on the second [DOT] reading, at the same time that the bill was circulated, but I sounded out certain hon. members and learned that I could not get unanimous consent to that course; otherwise I should have liked to make the statement on the second reading to-day. I am most anxious to make it on the second reading to-morrow, and then the debate can be adjourned to such time as the house sees fit. This is far better from every point of view, because a fairly long speech will be necessary to explain the provisions of the bill to the house and to the country. My proposal, therefore, is that we take up second reading to-morrow, and the government will then consent to an adjournment if hon. members desire it.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OP BANK CHARTERS
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NAT

Richard Burpee Hanson

National Government

Mr. HANSON (York-Sunbury):

I do not suppose I have the right to say anything. On its face what the minister has said sounds like a very reasonable request, but I have learned from long experience in this house that government statements on bills are not always factual, that there is a great deal of propaganda about them, and for that reason I am rather suspicious of these statements. However, the minister is adamant and does not want to oblige me, and there is an end of it. I think we ought to have until Thursday to read this bill before we are asked to agree to the second reading.

Motion agreed to and bill read the first time.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OP BANK CHARTERS
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QUESTIONS


(Questions answered orally are indicated by an asterisk)


WHEAT ACREAGE REDUCTION-BONUS AND COST OF ADMINISTRATION

CCF

Mr. DOUGLAS (Weyburn):

Co-operative Commonwealth Federation (C.C.F.)

1. What is the total amount paid in bonuses under the wheat acreage reduction scheme?

2. What was the total cost of administration?

3. What was the number of individual bonuses paid?

4. How many bonuses paid were, (a) under

$100; (b) $100 to $500; (c) $500 to $1,000; (d) $1,000 to $2,000; (e) $3,000 to $5,000;

(f) $5,000 to $10,000; (g) $10,000 to $50,000; (h) over $50,000?

Topic:   QUESTIONS
Subtopic:   WHEAT ACREAGE REDUCTION-BONUS AND COST OF ADMINISTRATION
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LIB

Mr. GARDINER: (Minister of Agriculture)

Liberal

1. $84,558,162 (to January 31, 1944).

2. $2,459,975.77 (to January 31, 1944).

3. 1941, 181, 885; 1942, 179,033; 1943 (to January 31, 1944), 174,525.

1941 1942 1943(a) 71,960 108,743 84,569(b) 99,178 67,420 84,345(c) 9,040 2,540 5,002(d) 1,599 327 599(e) 100 3 8(f) 5 - 2(g) 3 - -(h) - - -

In addition to the individual bonuses listed above payments in the following instances were amalgamated on claims submitted;

In 1941 a lump sum of over $50,000 was paid to a company which submitted 237 separate claims for farms on which they hired operators. The same company was paid between $10,000 and $50,000 on claims submitted for 208 farm units in 1943.

In 1941 payments between $5,000 and $10,000 were made in one instance where three claims were amalgamated and another where several farm unit claims were amalgamated and one payment made to cover all claims.

Again in 1943 one payment in the $5,000 to $10,000 class was made on five separate claims.

Topic:   QUESTIONS
Subtopic:   WHEAT ACREAGE REDUCTION-BONUS AND COST OF ADMINISTRATION
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CERTIFIED SEED POTATOES

NAT

Heber Harold Hatfield

National Government

Mr. HATFIELD:

.

1. Were the growers of foundation A and foundation certified seed potatoes in the maritime provinces refused export permits?

2. If so, why?

3. Is the government considering any relief to cover their loss on this account?

Topic:   QUESTIONS
Subtopic:   CERTIFIED SEED POTATOES
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LIB

Mr. GARDINER: (Minister of Agriculture)

Liberal

1. Permits were released freely practically all season for varieties in plentiful supply but

Questions

were withheld for certain varieties known to be in short supply to conserve such seed principally for the use of the seed potato growers in the maritimes.

2. A sharp increase in the percentage of fields disqualified for diseases has demonstrated the necessity of retaining more high grade seed for foundation purposes. Regulations governing the production of certified seed potatoes now require foundation or foundation A seed to be planted in all fields entered for inspection for seed purposes. The production of foundation grades of the two principal varieties produced in the maritimes, namely Irish Cobbler and Green Mountain, in 1943 were estimated as barely sufficient to plant the normal seed acreages of these varieties in the maritimes in 1944,

therefore it was decided by the agricultural supplies board, on the recommendation of the science service, that no export permits be recommended for release for these varieties of foundation grades during the present season, except for those stocks in unsafe storages at harvest time and in danger of injury from frost.

3. No. See answers to 1 and 2.

Topic:   QUESTIONS
Subtopic:   CERTIFIED SEED POTATOES
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FREIGHT SUBSIDIES ON WESTERN GRAINS

NAT

Mr. HATFIELD:

National Government

1. How many bushels of oats and other grains were shipped from western Canada to each of the maritime provinces during 1943 and 1944?

2. What was the amount of freight subsidy on the shipments to each of the maritime provinces ?

Topic:   QUESTIONS
Subtopic:   FREIGHT SUBSIDIES ON WESTERN GRAINS
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LIB

Mr. GARDINER: (Minister of Agriculture)

Liberal

1. During the fiscal year 1942-43 the following quantities were shipped into each province (western grain and feeds):

Wheat Oats Barley Rye Screenings Millfeeds bus. bus. bus. bus. tons tonsNew Brunswick

576,218 1,038,953 653,595 24,739 1,458 42,907Nova Scotia

790,950 1,238,156 1,326,835 21,955 979 48,480Prince Edward Island

336,666 297,647 351,696 3,811 188 10,867

During the fiscal year 1943-44 the following quantities were shipped into each province (western grain and feeds):

Wheat Oats Barley Rye Screenings Millfeeds bus. bus. bus. bus. tons tonsNew Brunswick

799,546 1,548,218 1,171,800 6,846 683 44,430Nova Scotia

1,309,716 1,651,376 1,490,700 1,685 420 49,049Prince Edward Island

533,173 417,238 543,714 1,036 37 13,2922. New Nova Prince EdwardBrunswick Scotia IslandFiscal year 1942-43

$717,697 50 $1,026,189 00 $285,064 80Fiscal year 1943-44

928,005 00 1,236,521 70 406,105 00

Topic:   QUESTIONS
Subtopic:   FREIGHT SUBSIDIES ON WESTERN GRAINS
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BARRIEFIELD MILITARY TRAINING CENTRE- BILINGUAL SECTION

LIB

Jean-François Pouliot

Liberal

Mr. POULIOT:

What was the number of French-speaking men at A-21, C.O.C.T.C., Barriefield. when the bilingual section was, (a) established; (b) abolished?

Topic:   QUESTIONS
Subtopic:   BARRIEFIELD MILITARY TRAINING CENTRE- BILINGUAL SECTION
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LIB

William Chisholm Macdonald (Parliamentary Assistant to the Minister of National Defence)

Liberal

Mr. MACDONALD (Halifax):

No bilingual

section at A-21, C.O.C.T.C., Barriefield, has been (a) established or (b) abolished.

As French speaking candidates arrive at A-21, C.O.C.T.C., they are posted to sub-units andi given instruction in French by French, speaking instructors. New French speaking sub-units are formed at each regular intake to this training centre.

tMr. Gardiner.]

Topic:   QUESTIONS
Subtopic:   BARRIEFIELD MILITARY TRAINING CENTRE- BILINGUAL SECTION
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May 1, 1944