Before the bill passes to
a further stage I should like to say a few words. As it was first introduced and brought before the banking and commerce committee I found myself opposed to certain clauses. Now however I am just as much in favour of the clauses in the present bill. It seems to me ridiculous that including costs any man should be charged rates of 10 per cent or 12 per cent upon money which is rightly his. These loans are made only upon the surrender value of an insurance policy. If he chose, a man could surrender the policy and accept the money. On the other hand he may choose to borrow a few dollars for the purpose of keeping his policy in force or for other reasons, and in the past he has been charged seven per cent and in many cases much more. I say there is no security so ample as that given by the borrower; it is surer than Dominion of Canada bonds because, as I previously stated, the policyholder is borrowing his own money. The insurance companies are most anxious to keep it that way; they do not wish to have policies surrendered, and at the same time they are attempting to secure much greater interest than they could possibly secure from the best securities they hold. I am in favour of the reduction in the rate of interest, and would1 be content to vote for even a larger reduction.
Topic: FOREIGN INSURANCE COMPANIES