If they wanted to continue to exercise their charter powers, they had to come to parliament to have them clarified. Their licence, instead of being renewed for a period of one year, was renewed periodically, a few months at a time, as a compulsory measure. These private bills have consequently been introduced. It is not requested that the power to charge interest be increased. At the request of the superintendent, by these bills the basis of operation is changed. At present, when a loan is made, the amount of interest is deducted from the amount of the loan. That is what is called the discount basis. The department desires that basis to be changed into a straight interest basis, the interest being charged on the outstanding and reducing balance only, and that is what this bill purports to accomplish.
Last year, in the standing committee on banking and commerce, we gave a great deal of thought to this whole matter, and after several weeks of study we brought in this legislation.
Subtopic: INDUSTRIAL LOAN AND FINANCE CORPORATION