The CHAIRMAN:

It was stated that

the hon. gentleman was reading from a report which was given to the press, and therefor I submit that he is in order and can proceed with his speech.

The CHAIRMAN:

That is correct.

The CHAIRMAN:

Sir George Perley

moves:

That Bill No. 15 be amended by striking out section three thereof and substituting the following:

Farm Loan Act

3. Section five of the said act is repealed and' the following is substituted therefor:

"5. The capital requirements of the board shall be provided as follows:

(1) The government of Canada may subscribe to an initial capital to an amount not exceeding five million dollars and may pay the amount of any such subscription at such times and in such amounts as in the judgment of the board are necessary for the purposes of the board; and the amounts provided from time to time under this subsection shall he free from interest charges for a period of three years, after which time interest shall be paid at such rate as the governor in council shall direct, repayment of the amounts so provided shall be made from time to time out of the earnings of the board': Provided that before any such proposed repayment is made, the reserve fund of the board provided for by section nine of this act, shall be at least equal to the total repayments, including the repayment then proposed to be made.

(2) In addition to the initial capital provided for in the next preceding subsection, the board shall issue capital stock in shares of one dollar each, which shares shall be subscribed for by the government of Canada from time to time as loans are made under this act to an amount equal to five per cent of the said loans, so that the total amount subscribed under this subsection shall equal at any time as nearly as may be, five per cent of the total amount of principal outstanding on loans theretofore made, the same to be called for by the board as required.

(3) The minister may purchase at a price not exceeding the par value thereof, the capital stock issued by the board to any province and for the purpose of such purchase, the minister may make the necessary expenditure out of any unappropriated moneys in the consolidated revenue fund.

(4) The board may retire the outstanding capital stock subscribed by borrowers under the act. by crediting the amount of the par value of the stock subscribed by the borrower as a payment upon the borrower's indebtedness under his loan from the board, and when so credited, the borrower shall thereupon cease to be a stockholder of the board."

The CHAIRMAN (Mr. 'Morand):

we are on subsection 7, paragraph (b).

The CHAIRMAN:

We are not yet dealing with that paragraph.