June 2, 1939 (18th Parliament, 4th Session)

CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Perhaps so, but even in
Sherbrooke the hon. member will find a great deal of dissent from the so-called principle of the bill, and from the effect it will have upon business credit and confidence in that district. I have been simply overwhelmed with suggestions from eastern Canada as to the prejudicial effect this bill will have upon ordinary business credit.
If the bill merely applied to the farmers of the middle west who are in distress, who in recent years have been living under grave disabilities and who are entitled to some relief in respect of liabilities which they are unable to meet or to pay, I would take an entirely different attitude with respect to it; and I 71492-308
suggest the bill should have been divided in that way. It should have excluded all creditors who have the ability to pay debts which they have voluntarily undertaken and which they are morally and legally bound to pay. That is my suggestion. But, as was pointed out by an hon. member representing an eastern district, in committee, when a man has a mortgage debt of $6,000 upon a property which may now be valued at $4,000, and when he is allowed to reduce his mortgage debt to eighty per cent of the $4,000, or to $3,200, and thereby avoid paying $2,800 of the debt, so far as he is personally concerned, and when the parliament of Canada is asked to place one-half of that discount upon that mortgage as an additional burden upon his fellow citizens who are taxpayers, and who pay their debts [DOT]-then, I say, that is an entirely immoral proceeding which cannot possibly be justified.

Topic:   CENTRAL MORTGAGE BANK
Subtopic:   PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.
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