Mr. RHODES:
Yes.
Government Loan
Mr. MACKENZIE (Vancouver):
I should like to say just a word in regard to the general resolution. I am not at all opposed to it, but I should like to state my views. I very much regret that the administration has not seen fit to take steps to inaugurate a refunding program for the general outstanding debt of the dominion. I believe the initiative should have come from the administration with regard to a general reduction of interest rates and a conversion or refunding program such as was successfully undertaken in Australia. Some hon. members might suggest that it would not be easy to obtain the money at a very low rate of interest, say 3 per cent or 3i per cent, but I suggest that this is the time to appeal to national sentiment in Canada with regard to a general conversion scheme including all our outstanding obligations.
Mr. RHODES:
I can assure my hon. friend and the committee that it is the desire of the government to refund as large a sum as may be possible, at as low a rate as can be possibly obtained. When my hon. friend refers to a refunding of all our issues, and when he compares the situation in Canada with that in Great Britain, for example, he must remember that their bonds were callable. Ours are not, and that feature must be borne in mind in connection with the volume we can attain in the matter of refunding. I can assure my hon. friend that so far as we can judge the trend of money and interest rates we are wise, I think, in deferring until the most favourable opportunity any general refunding scheme that may be undertaken. Exercising the best judgment we can, and guided by the best advice we may secure, it will be our endeavour to carry on the refunding at the most favourable moment.
I think I might very properly add at this stage that it will be our endeavour to secure our funds not upon the basis of the Btriet value of money in the terms of the market at the moment, but that we will appeal just as far as possible to the patriotism of the Canadian people.
Mr. IRVINE:
May I ask the minister if the bonds when refunded will be payable in notes or in gold, and whether they will be payable in Canada or in other countries as well?
Mr. RHODES:
It is anticipated that they will be payable in lawful money of Canada.
Mr. YOUNG:
May I ask if this is to be
a purely domestic loan or if it will be floated abroad, at least in part?
Mr. RHODES:
It is anticipated that it will be a purely domestic loan.
Mr. YOUNG:
I have here the public accounts for 1931, and at page XI I find the following:
$45,000,000 three year 4 per cent treasury notes, issued on December 1, 1927, matured December 1, 1930, and were replaced by the issue of two year treasury notes for $40,000,000 at 4 per cent maturing December 1, 1932, the balance of $5,000,000 being paid from cash. These were sold at par to Canadian chartered banks.
How were those notes taken care of when they matured last September?
Mr. RHODES:
They were met by the
proceeds of the four per cent loan of last October.
Mr. YOUNG:
They were paid?
Mr. RHODES:
Yes.
Mr. YOUNG:
I am not sure, Mr. Chairman, but I have been told that those notes were payable in Montreal, Toronto, Winnipeg, Vancouver or New York. Is that correct?
Mr. RHODES:
I am sorry to say I have not the facts before me, but my recollection is that they were payable entirely in Canada.
Mr. YOUNG:
Is it the intention that this new loan shall be payable at the option of the holder either in Canada or elsewhere?
Mr. RHODES:
No, Mr. Chairman; it is
anticipated that they will be payable in lawful money of Canada, in Canada.
Mr. SPENCER:
I take it that lawful money of Canada is either gold or dominion notes?
Mr. RHODES:
It is whatever the law says money is in Canada at the time.
Resolution reported, read the second time and concurred in. Mr. Rhodes thereupon moved for leave to introduce Bill No. 103, to authorize the raising, by way of loan, of certain sums of money for the public service.
Motion agreed to and bill read the first time.
Mr. RHODES:
With the unanimous consent of the house, I move the second reading of the bill.
Mr. POULIOT:
May I point out to the Minister of Finance that I could have made a long speech at every stage of the debate; I did not do so in order not to delay the Post Office supply.
Mr. SPENCER:
Unless the minister is particularly anxious to proceed with the bill just now, I suggest that it might' be well to
Radio Broadcasting Act
postpone it for the time being. The hon. member for Macleod (Mr. Coote) could not be in the house this morning and I know he would like to speak to the bill. However, I will not press the request.