As the bill now stands
he cannot secure any direct advantage from it, but there is no doubt that the competitive influence brought to bear by virtue of the entry into the scheme of a large number of the lending institutions will have an effect upon what private mortgagees will be able to get for their funds. But there is no means of arranging for dealing by the bank with private mortgagees. Everybody, on all sides of the house, who was interested in this great social and economic question endeavoured to find some machinery which could be made to apply; but we were quite unsuccessful, all of us. As a matter of fact this plan is made possible by the fact that a company brings in all its mortgages of the classes mentioned,
Central Mortgage Bank
good and bad, those in good standing and those in arrears. Of course the private mortgagee would only bring along the bad ones to the bank. We have not been able to work out any solution, but the problem is such in some parts of Canada that a year's operation may indicate a channel through which, by cooperation among private mortgagees or by some other means, they also may be dealt with. At present, however, we cannot devise such machinery.
Topic: CENTRAL MORTGAGE BANK
Subtopic: PROVISION FOR INCORPORATION, PURCHASE OF SHARES, GUARANTEE OF DEBENTURES, ETC.