April 20, 1904 (9th Parliament, 4th Session)


Samuel Barker

Conservative (1867-1942)


tile ?ay add that if the bonds sell at 90. ftharantee for the prairie section will
be increased from $13,000,000 to $14,500,000. Although, as we do not pay seven years' interest there, it is not so important. I do not deal with any increase on the prairie section, because 1 am dealing mainly and particularly with the interest account which involves cash outlay.
I have already read from the words of the Minister of the Interior. It will be remembered that he said-page 799 :
By releasing the old provision and inserting provisions which can only come into effect in case of default which we do not anticipate.
That is all. They can throw the burden upon the country only in case of default. But the Minister of the Interior seems to be oblivious to the fact that whether there is default or not, if you increase the principal of your guarantee by $6,000,000 or $8,000,000 you have to pay the interest on that for seven years and you do not get it back. And yet, one after another these hon. gentlemen get up and boast, as the hon. member for Annapolis (Mr. Wade) did, that these changes would not cost the country anything. At page 872, he says :
I wish to place myself on record as saying that the agreement as amended will not cost the Dominion one extra dollar.
It was as the hon. member for Haldimand said, as if they were backing the note of a millionaire and it would not matter. But if the millionaire wanted you to pay the interest on his note for seven years you would soon find out that it mattered ? The hon. gentlemen overlook the fact that under ne clause of the agreement, clause 32 I think, we agree to pay the interest for seven years upon every dollar we guarantee, and when you add six or eight million dollars to the guarantee you agree to pay interest on that amount for seven years. The hon. member for Annapolis (Mr. Wade) was satisfied that it was quite right to guarantee the additional amount. He said :
I think that this is reasonable ; I think It is fair that the government should guarantee the full three quarters of the cost and it was scarcely necessary that any discrimination should be made in this connection.
If the government bad said : 1 We are not to pay the interest for seven years on the increased amount,' then there would be something in the statement of the hon. the Minister of the Interior (Mr. Sifton) that it would make no difference, that the property was good for it. and that you were only guaranteeing it. But when the Gianu Trunk call upon you to pay the interest on Tie increase and without recourse, the laugh will be against the government.

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