June 28, 1943 (19th Parliament, 4th Session)


James Lorimer Ilsley (Minister of Finance and Receiver General)


Hon. J. L. ILSLEY (Minister of Finance):

I should like to make a statement with regard to the final results of the fourth victory loan campaign.
Total sales of bonds amounted to $1,308,985,500. This represented 2,669,111 subscriptions. These sales were made for payment in cash. The fourth victory loan, like the third victory loan, did not involve the issue of any new bonds against the surrender of maturing securities.
It will be recalled that the total objective for the fourth victory loan was set at $1,100,000,000, and that this objective was split, $500,000,000 for individuals covered by the general canvass and payroll canvass, and $600,000,000 for large investors, mostly business firms and corporations, covered by the special names canvass. Each of these objectives was exceeded.
Combined sales by the general canvass and payroll canvass amounted to $529,641,800, representing 2,661,759 subscriptions. In the special names canvass, 7,352 subscriptions were received for $779,343,700 par value of bonds.
The fourth victory loan was the largest public bond issue in the history of Canada. The outstanding feature of the loan was the tremendous increase in the number and amount of sales to individuals in the general and payroll canvasses.
By way of comparison, I wish to submit the following figures showing the results of each of the four victory loans:
Cash sales alone
Final results Of which
Victory of campaign Par value of No. of sub- Par value of General and payroll Special namesloan bonds sold scriptions bonds sold canvass canvassFirst
$ 836,820,250<1> 968,259 $ 730,376,250 $279,500,000 $450,876,250Second
996,706,900<2) 1,681,267 843,127,900 335,638,200 507,489,700Third
991,389,050 2,032,154 991,389,050 374,828,200 616,560,850Fourth
1,308,985,500 2,669,111 1,308,985,500 529,641,800 779,343,700
Includes $106,444,000 par value of conversion sales. <2>
Includes $153,579,000 par value of conversion sales.
This record of voluntary bond purchases by the public of Canada is tangible and convincing evidence of the united determination of Canadians to win the war-it is a declaration of faith in the future of our country. The impressive record of these loans is also a reflection of the valuable and vital work being done for Canada by the national war finance committee, the organization entrusted by the government with the responsibility of carrying out our wartime public borrowing operations. The tens of thousands of men and women throughout Canada who are associated with this committee may well be proud of their contribution to the steady progress of Canada's wartime savings program.
In the budget speech delivered on March 2, 1943, I referred to the fact that some subscribers to victory loans dispose of their bonds over the period following the termination of the public campaign. I should like to take this opportunity to reiterate the statements I made at that time with regard to this practice.
Victory loan bonds are the property of their individual owners who have the right to sell them at any time they may desire. This right has always existed. No restrictions om the sale of bonds have been considered by the government at any time. When a person buys a victory bond, that person is making it possible for Canada to get the men and materials needed for war use, and, in addition, is helping
Fourth Victory Loan

to fight the home-front battle against inflation. When people sell their bonds, they are withdrawing this help. I recognize the fact that emergency needs for cash are perfectly legitimate reasons for selling bonds or presenting war savings certificates for redemption provided the person has no other form of savings which can be used, or provided the person cannot obtain a temporary loan, to be repaid out of future income, to meet the immediate need for cash. But sales of bonds to get dollars to buy things that are not essential are not justifiable. Unless it is absolutely necessary to sell victory bonds, it is every person's patriotic duty, and in his own best interests, to hold on to his bonds for the duration of the war at least. Buying bonds is important; holding on to them is equally important.
On February 9, 1943, I tabled a statistical compilation showing a classification of the sources of subscriptions, at time of issue, to the first, second and third victory loans. For the information of the house, I am tabling a statement in similar form showing the estimated derivation of subscriptions, at time of issue, to the fourth victory loan, together with comparable figures for the three previous victory loans.
All figures in regard to the fourth victory loan are subject to final verification on the receipt of reports of actual deliveries by banks, trust and loan companies. The figures which I have used and which appear in the statement I have tabled reflect the final reports received in Ottawa from the field organization of the national war finance committee.
National War Finance Committee Canada
First, Second, Third, and Fourth Victory Loans Estimated Derivation of subscriptions at time of Issue
The attached memorandum contains the estimated derivation of subscriptions, at time of issue, to the first, second, third, and fourth victory loans. Figures in regard' to the fourth victory loan are preliminary, as the final results of this loan are not compiled.
The subscriptions to each loan are divided into two broad classes, designated "individuals" and "non-individuals".
The class designated individuals includes two sub-divisions, described as "special names" and "all others". The amounts shown for special names represent subscriptions received in the special names canvass from individuals believed to be capable of 'buying $25,000 or more par value of bonds at the time of each issue. The amounts shown for all others represents the combined total of subscriptions received in the general and employee canvasses. General canvass subscriptions include sales to small commercial and small non-profit bodies, the aggregate subscriptions from which would be relatively small in proportion to the total amount shown opposite the designation "all others".
The non-individuals class has been subdivided to show subscriptions from banks for their own account; government accounts; insurance companies, pension funds, etc., and savings banks; and miscellaneous, this latter group reflecting, with minor exception, subscriptions from business firms and corporations.
These data have been compiled by the national war finance committee from information obtained at the time of public offering of the loans, and from other sources. The data should be regarded as estimates, and the results of the fourth victory loan should be regarded as subject to revision when final figures with respect to this loan become available.
June 19, 1943.
fMr. Ilgley.J

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