March 28, 1938 (18th Parliament, 3rd Session)

LIB

Charles Avery Dunning (Minister of Finance and Receiver General)

Liberal

Mr. DUNNING:

With deference I think my right hon. friend is missing one point, namely, that there is to be a provision forbidding me as Minister of Finance to sign a guarantee unless the guarantee given by the province has the three year leeway. My right hon. friend will see that if the government could be required by the banks to pay in advance of the expiry of the three year period, that would create an obligation which the dominion government, if not under the terms of this legislation, at least for the sake of the credit of the country, would have to meet. So we endeavour to take care of it by saying that the Minister of Finance must not give the guarantee of the dominion unless he is sure that the province which is being guaranteed will not be required by its creditor to pay until three years from the date of the advance. That is really the intention. Then, in order to provide for the possibility of the province paying sums voluntarily in advance of requirement, the exception is made. Of course we are very anxious to have them do that.

Topic:   SEED GRAIN
Subtopic:   GUARANTEE OF LOANS FOR PURCHASE OF SEED AND OTHER ASSISTANCE IN SEEDING OPERATIONS IN WESTERN PROVINCES
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