Lipad - June 23, 1942 - Browse the Canadian House of Commons

Date of Maturity Rate Per Cent Where Payable Amount of Loan Annual Interest Charges1942, May 1 1 Canada Canada Canada Canada Canada New York Canada C anada $ 2,500,000 00 25,230 00 4,780 CO 1,331.738 83 1.212.270 00 225.000 00 500 000 00 3.750.000 00 7,350,005 00 675.000 00 1.812.500 00 857,535 00 2.250.000 00 3,000,000 00 500 000 00 2.100.000 00 1.900.000 00 3.533.500 00 2.025.000 00 3,865,720 CO 17,158 81 1.625.000 00 6,050,790 00 1.625.000 00 1,088,750 00 4.841.270 00 1.625.000 00May 15 n 2 June 1 July Oct. 1 4 33,293,470 85 40.409.000 00 15 3 1943, May 1 21 21 U 5 June 1 July 2 Oct. 1944, Jan. 15 2* 2 New York Canada Canada Canada C anada Canada Canada New York C anada C anada Canada London Canada C anada Canada Canada Canada C anada C anada C anada Canada Canada New York O anada Canada Canada June 1 Sept. 1 n 41 11 21 2 Oct. 15 Oct. 16 Nov. 15 1945, Mar. 1 Aug. 15 2* 4 76,000,000 00 Oct. 15 1946, Feb. 1 4§ 2 Dec. 15 1947, Oct. 1 21 31 2} 31 31 31 31 31 3 1948, Feb. 1 Mar. 1 *268.924,000 00 1949, Feb. 1 June 1 Oct. 15 1950, Feb, 1 1951, Feb. 1 June 15 19.306,027 50 1.950 000 00Nov. 15 3} 31 5 1952, Feb. 1 May 1 1, wZ.i. uuu UUOct. 1 3 Oct. 15 4 1954, Mar. 1 3 20.142,309 00 [Mr. Ilsley.J The Budget-Appendix

UNMATUBED FUNDED DEBT AND TREASURY BILLS AS AT MARCH 31, 1942, AND ANNUAL INTEREST

thereon-Concluded Date of Maturity Rate Per Cent Where Payable Amount of Loan Annual Interest Charges1955, May 1 June 1 June 1 1956, Nov. 1 1957, Nov. 1 1958, June 1 Sept. 1 Nov. 1 1959, Nov. 1 1960, Oct. 1 1961, Jan. 15 1963, July 1 1966, June 1 Sept. 15 1967, Jan. 15 1968, Nov. 15 Treasury Bills due April 1, 1942 Treasury Bills due April 17. 1942 Treasury Bills due April 29. 1942 Treasury Bills due May 15. 1942 Treasury Bills due May 29. 1942 Treasury Bills due June 12, 1942 War Savings Certificates 31 3 3 41 4) 3 4 41 41 4 31 31 31 3 3 3 [DOT]548 [DOT]548 [DOT]547 [DOT]545 [DOT]547 [DOT]552 t3 London C anada C anada Canada C anada Canada London C anada C anada New York New York London C anada C anada New York New York C anada C anada Canada Canada C anada Canada C anada Canada Canada $ 5.905,276 73 40.000. 000 00 55.000 000 00 43,125.700 00 37,523.200 00 88.200.000 00 4.449.736 66 276,687,600 00 289.693,300 00 100.000.000 00 48.000. 000 00 4.409.579 62 54.703.000 00 55.000. 000 00 55.000. 000 00 40.000. 000 00 45.000. 000 00 45.000. 000 00 45.000 000 00 45.000. 000 00 45.000. 000 00 45.000. 000 00 * 191 921 49 1,200 000 00 1.650 000 00 1,940.656 50 1,688.544 00 2.646.000 00 177.989 47 12,450.942 00 13.036.198 50 [DOT] 4.000 0C0 00 1.560.000 00 143.311 34 1,777.847 50 1.650 000 00 1.650 000 00 1.200.000 00 240.600 00 246.600 00 246.150 00 245.250 00 246.150 00 248.400 00*5,723,251,986.27 129.677.966 48 4,030.578 00 9,110,045 92 *166.378,153 94 t3 870,745 74 *5,866.070.576 67 *170.248.899 68 Pavable in Canada *5,391,619.711 25 91-92%Payable in New York 459,000.000 00 7-82%Payable in London 15.450.865 42 0 26%*5,866,070.576 67 100-00% * Preliminary figures. t 3 per cent on purchase value if held to maturity (7§ years from date of issue).

INDIRECT LIABILITIES

64. Bonds and debenture stocks bearing the guarantee of the Dominion and outstanding in the hands of the public as at March 31, 1942, totalled $818,841,717, a decrease of $165,174,661 during the fiscal year under review. This decrease is accounted for mainly by the purchase of Canadian National Railway Company securities from the Government of the United Kingdom, as provided for under the War Appropriation (United Kingdom Financing) Act 1942. 65. There were also outstanding at the close of the fiscal year other contingent liabilities assumed under Relief, Seed Grain and other legislation. During the fiscal year the Government agreed to guarantee the repayment of bank advances to the Canadian Red Cross Society to a maximum amount of $3,000,000. It was anticipated that this Society would require funds for carrying on its war services pending the time when receipts would be available to it from a general public campaign. However, no advances were required under this guarantee. 66. Advances by Canadian chartered banks to the Government of Newfoundland, amounting to $625,000 and carrying the guarantee of the Government of Canada have been referred to in previous budget speeches. These advances were paid off by the Government of Newfoundland during the fiscal year under review. 67. Guaranteed bank advances to the Canadian Wheat Board outstanding as at March 31, 1942, amounted to $116,686,562. This amount constitutes the Board's gross liability to the banks and related mainly to the purchase of wheat of the 1939, 1940 and 1941 crops. The guarantee of the Dominion to the Winnipeg Grain and Produce Clearing Association Limited referred to in previous budget speeches is still outstanding. However, no liability accrues from day to day in connection with this guarantee as margin deposits are made to the Clearing Association. The Budget-Appendix

68. Before operations under the Home Improvement Loans Guarantee Act were discontinued (October 31, 1940), 125,720 loans had been made by banks and other approved loaning institutions to home owners under the terms of this Act and the total amount of such loans was $49,959,055. The Dominion's contingent liability arising out of these loans is limited to 15 per cent of the aggregate of such loans made by approved lending institutions, but as the balance of these loans outstanding on March 31, 1942, had been reduced to $6,162,009, the contingent liability of the Government is limited to this amount. Up to March 31, 1942, 801 loss claims for an aggregate amount of $259,100 had been paid. In terms of total losses to total volume of loans, this loss ratio is only slightly more than one-half of one per cent. Repayments to March 31, 1942, amounted to $43,797,048 or 88 per cent of the total volume of loans made. 69. Under the Dominion Housing Act, 1935, and the National Housing Act, 1938, the Government has accepted and is accepting certain obligations arising out of its contracts with approved lending institutions which, while not expressed in the form of a guarantee, may nevertheless be regarded as contingent or indirect liabilities. The manner in which losses in respect of any loan are to be borne by the Dominion and the lending institution is fixed by the contract. The general principle is that the Dominion bears two-thirds of the loss if at the time the loss is sustained the principal amount of the loan repaid, less any other amounts due, is more than the amount advanced by the Dominion. In the case of small loans (for amounts not in excess of $4,000, in the case of a single family dwelling place or not in excess of $700 per habitable room in the case of a multiple family dwelling), the share of the loss to be borne by the Dominion is not more than 80 per cent and not less than 50 per cent of the loss. The above provisions apply to loans made under the National Housing Act and its predecessor, the Dominion Housing Act. Under the National Housing Act a new provision has been added to encourage the making of small loans in such small or remote communities and in such districts or other communities as may be designated by the Minister of Finance in any contract. In respect of such loans, the Dominion has agreed in contracts with certain lending institutions to pay losses sustained by any such lending institution up to certain amounts determined by the contract which are not less than 7 per cent and do not exceed 25 per cent of the total amount of such loans made in such areas by the lending institution. Order in Council of December 5, 1939, provided that after January 1, 1940, applications would be received only for loans for the construction of houses containing one self-contained dwelling place and where the loan does not exceed $4,000. Loans to the number of 18,251 had been approved at March 31, 1942, under the Dominion Housing Act, 1935, and the National Housing Act, 1938, in the amount of $76,784,145. Losses recorded and paid to March 31, 1942, amounted to $1,010.28, covering the Dominion's proportion of the loss on three loans. This amount represents total losses to date under both the Dominion Housing Act, 1935, and Part 1 of the National Housing Act, 1938. These losses are offset in part by a profit of $288.41 realized by the sale of eight properties. The net loss to date is therefore only $721.87. 70. The following is a statement of bonds and debenture stocks and other indebtedness guaranteed by the Dominion, outstanding on March 31, 1942. IMr. Ilsley.] The Budget-Appendix

BOND AND DEBENTURE STOCKS GUARANTEED BY THE DOMINION GOVERNMENT AS AT MARCH 31, 1941

Date of Maturity Issue Interest Rate Amount Outstand ing % t cts. Feb. 15, 1943.... Canadian National 2 55,000,000 00Feb. 1, 1944.... Canadian National 21 15,60u,000 00May 1, 1944.... Canadian National 3 35,000,000 00Jan^ 15, 1946.... Canadian National 21 15,000,000 00July 1, 1946.... Canadian Northern 6$ 23,759,000 00April 1, 1948.... New Westminster Harbour Commissioners 41 (00,000 00Canadian National 3 50,500,000 00Sept. 1, 1951.... Canadian National 41 50,000,000 00Feb. 1, 1952.... Canadian National 3 20,000,000 00Aug. 1, 1952 Saint John Harbour Commissioners 5 667,953 04Feb. 15, 1953.... Canadian National 3 25,000,000 00Canadian Northern 3 Z,U11,330 05Feb. 1, 1954.... Canadian National 5 50,UUO,000 00Mar. 1, 1955.... Canadian National (West Indies) Steamships 5 9,400,000 00June 15, 1955.... Canadian National 43 48,587,000 00Feb. 1, 1956.... Canadian National 4$ 70,000,000 00July 1, 1957.... Canadian National 65,000,000 00July 20, 1958.... Canadian Northern 3J 6,621,474 47Jan. 15, 1959.... Canadian National 3 35,000,000 00May 4, I960.... Canadian Northern Alberta 3$ 911,332 00May 19, 1961.... Canadian Northern Ontario 3} 8,144,663 54Jan. 1, 1962.... Grand Trunk Pacific 3 34,992,000 00Jan. 1, 1962.... Grand Trunk Pacific 4 8,440,848 00July 1, 1969.... Canadian National 5 57,138,000 00Oct. 1, 1969... Canadian National 5 57,858,200 00Nov. 1, 1969... Harbour Commissioners of Montreal 5 19,000,000 00Feb. 1, 1970.... Canadian National 5 17,376,000 002 3,383,676 53Various dates 1942-54 City of Saint John Debentures assumed by Saint John Harbour Commissioners Various 775,229 314 15,573,333 335 5,549,825 005 3,153,989 344 8,295,549 67do Northern Railway of Canada Debenture Stock. 4 502,313 00$ 818,841,717 28

OTHER LIABILITIES GUARANTEED

Principal Amount Outstanding Mar. 31, 1942 Bank Advances, re Province of Manitoba Savings Office * Province of Manitoba Treasury Bill Province of British Columbia Treasury Bill Bank Advances, re Canadian Wheat Board Winnipeg Grain and Produce Clearing Association Ltd. Day to day margins of the Canadian Wheat Board (closed out daily) Bank Advances guaranteed under Seed Grain Loans Guarantee Act, 1938 Loans made by approved lending institutions under Dominion Housing Act, 1935 and National Housing Act, 1938 Loans made by approved lending institutions under The Home Improvement Loans Guarantee Act, 1935 Deposits maintained by the chartered banks in the Bank of Canada Bank Advances, re Government War Contracts-Department of Munitions and Supply Guarantee under Dominion-Provincial Taxation Agreements of Provincial receipts from gasoline taxes at amounts received in fiscal years ending nearest December 31, 1940 6,131,616 4,805,723 626,534 116,686,562 Not determined Indeterminate 6,162,009 241,931,985 1,700,357 Indeterminate The Budget-Appendix

CANADIAN ECONOMIC CONDITIONS-ANNUAL FIGUKES

Calendar Years 1926 1928 1932 1937 1939 1940 1941 Group I-Comprehensive Indexes (1935-39 -100) Physical volume of business 83 98 66 102 102 121 135Volume of manufacturing 92 104 68 113 109 135 151Mining 63 62 57 100 113 125 1291 orest ry 84 87 57 117 102 123 126Carload ings 131 148 88 106 102 114 129Electric power output 46 61 61 106 109 115 128Employment (a) 100 111 88 114 114 124 152National income.., 109 124 70 105 118 131 157Retail sales (e) (e) 92 105 105 118 136Group II.-Price Levels and Financial Factors (1926=100) Wholesale prices 100 96 67 85 76 83 90Farm product prices 100 101 48 87 64 67 71Cost of living (b) 122 121 99 101 102 106 112Common stock prices (b) 91 145 51 116 92 77 68Bank deposits 100 11$ 100 120 132 139 152Active currency circulation 100 105 81 103 111 147 198Group III.-Gross Value or Production In Major Industries (f millions) Agriculture 1.715 1.806 767 1,039 1,205 1,265 (c) 1,375Forestry 656 586 349 494 466 627 (c) 740Fisheries 73 71 34 51 53 60 (c) 61Mining (including Smelting) 277 313 265 663 663 748 (c) 777Construction 386 488 133 352 373 474 (c) 607Manufacturing 3,101 3,582 1,981 3,626 3,475 4,529 (o) 5,018Group IV.-Foreign Trade and International Transactions ($ millions) Exports (gold excluded) 1,277 1.364 498 1,012 936 1,193 1,640Net non-monetary gold exports (d) 30 40 70 145 184 203 204Total exports, including non-monetary gold 1.307 1.404 568 1,157 1,120 1.396 1.S44Imports (gold excluded) 1,008 1,222 453 809 751 1,082 1.449Total trade 2.315 2.626 1.021 1,966 1,871 2,478 3,293Export balance +299 +182 +115 +348 +369 +314 +395Net tourist receipts (e) (e) (e) (e) (e) 60 87Net interest and dividends going abroad .. 201 221 262 246 254 272 c) 256(a) 1926-100.(b) 1935-39 = 100.(c) Preliminary eetimate.(d) Adjusted lor chances in stocks of earmarked gold. These figures were computed by the Bank of Canada on the basis of official trade returns.(e) Not available.

CANADIAN ECONOMIC CONDITIONS-MONTHLY FIGUBES

- Jan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Dec.Group I.-Comprehensive Indexes (a) (1935-39=100) Physical volume of business 1940 1941 114 131 109 128 106 126 120 131 118 134 120 137 121 138 129 142 130 149 129 139 130 132 128 141 Volume of manufacturing 1940 1941 130 142 120 136 116 140 128 143 130 143 129 144 134 154 144 164 149 182 146 165 147 149 142 159 lOA 1940 116 109 113 146 121 137 127 146 142 124 117 128 1241941 123 125 123 122 141 126 .1940 121 107 i09 113 121 136 137 131 134 130 132 125 123 1171941 i26 121 126 118 114 117 Carload ings .1940 1941 113 126 109 123 96 125 111 129 117 139 115 134 127 140 120 128 107 119 109 121 115 124 125 139 .1940 112 114 107 112 123 124 129 131 119 126 114 109 109 1111941 117 116 W8 116 126 129 123 .1940 121 119 118 119 119 121 153 122 155 124 127 130 133 136 1651941 139 141 141 150 151 Retail sales (c) .1940 1941 90 102 90 101 106 119 110 136 120 143 121 134 103 122 113 134 114 137 132 152 136 147 174 202 Group II.-Price Levels and Financial Factors- (1926 = 100) .1940 83 83 83 83 82 82 90 82 91 83 83 83 84 841941 85 85 86 87 89 95 .1940 70 70 71 72 68 64 71 65 72 63 64 65 67 67 75K ' 1941 1942 67 1 77 68 78 69 79 70 80 70 s-i

<P The Budget-Appendix CANADIAN ECONOMIC CONDITIONS-MONTHLY FIGURES-Concluded 5* Vtf - Jan. Fel>. Mar. April May June July Aug. Sept. Oct. Nov. Dec._ , Group II-Concluded Cost of living (d) 1941 1942 104 103 115 104 108 116 105 108 116 105 109 116 105 109 116 105 111 106 112 106 114 106 115 107 116 10« 116 108 116Common stock prices (d) 1941 1942 91 71 67 90 67 65 90 67 62 88 66 61 73 64 66 64 66 68 69 68 76 71 74 69 75 69 70 67Bank deposits (e) 1941 1942 142 146 156 143 150 160 139 149 166 140 151 166 139 154 137 155 136 154 135 154 138 153 140 151 140 153 139 154Active currency circulation (e) 1941 1942 119 169 225 120 175 234 126 182 241 125 186 244 127 187 143 194 154 198 159 206 168 211 173 217 173 222 178 230Group III.-Other Significant Factors Exports (f) ($ millions) 1941 1942 91 89 152 72 100 168 84 103 177 85 118 170 111 163 235 112 147 102 171 111 150 103 143 107 140 119 164 99 152Imports (0 ($ millions) 1941 1942 7i 9« 142 71 90 120 77 108 115 86 106 142 101 128 91 115 90 128 97 138 86 137 109 141 102 134 102 126Net non-monetary gold exports (g) ($ millions) .. 1940 194! 1942 22 19 15 12 15 17 16 20 16 18 14 14 17 16 15 18 16 17 18 13 17 21 19 17 17 15 17 17Construction contracts awarded (1 millions). ..1940 1941 1942 9 27 13 12 25 11 12 14 18 26 24 , 23 28 41 24 39 86 29 32 41 36 52 39 26 29 55 23 17 19War contracts awarded (h) ($ millions) ..1940 1941 1942 35 53 99 42 64 55 31 73 85 21 153 30 111 46 61 87 96 74 85 70 57 148 85 68 51 144 99War expenditure (S millions) 1941 1942 13 88 145 24 83 133 (i) 33 (i) 104 (i) 220 10 46 142 24 90 205 40 65 39 108 59 99 67 91 82 111 72 120 84 124(a) Indexes seasonally adjusted unless otherwise indicated.(b) As at first of month. 1926=100.(c) Unadjusted(d) 1935 39=100 (e) Based on daily average figures: index unadjusted. (f; All gold excluded; includes exports of foreign produce. (hi Ifi'" n 00of marked eold. These figure were computed by the Bank of Canada on the basis of official trade returns, (h) Contracts awarded by Department of Munitions and Supply on Canadian Account; Feb., 1942, preliminary; March, 1942, estimated.

g

The Budget-Appendix Honours and Decorations

NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Member File Biography @ PARLINFO

Hon. R. B. HANSON (Leader of the Opposition):

Mr. Speaker, I should like to offer my congratulations to the hon. gentleman upon the manner and the methods he has adopted in the presentation of this budget. I especially call the attention of hon. members of this house to his concluding paragraph which I hope will sink into the minds and hearts of every last one of us, and every last one of our citizens. I agree with every sentiment he has expressed in that paragraph, and I only wish that 100 per cent of our people will also agree.

On motion of Mr. Hanson (York-Sunbury)

the debate was adjourned.

Topic: CANADIAN ECONOMIC CONDITIONS-MONTHLY FIGUBES

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June 23, 1942