656,365 To Foreign Exchange Control Board 850,000 To Sundry Government Agencies- Soldier Settlement of Canada 34,055 National Harbours Board 85,031 Crown Companies 116,346 Crown Plants Privately Managed 46,698 Other 40

282,170 To Provincial and Municipal Governments- Unemployment Relief Loans 156,291 Province of Alberta-Subsidy overpayment 350 Province of Saskatchewan-Seed Grain Loans Guarantee 1938 15,887 Municipal Improvements Assistance Act 5,543 Other 183

178,254 7,374

The Budget-Appendix BALANCE SHEET-MARCH 31, 1945-Concluded Assets-Con. Loans and Advances-Con. To United Kingdom and Other Governments- United Kingdom-War Appropriation (United Kingdom Financing) Act 602,510 Government of Greece 6,525 Government of Roumania 24,329 Government of the Union of Soviet Socialist Republics 10,000 Other 508,488 Miscellaneous- Dominion and National Housing Acts. Other Investments- Bank of Canada-Capital stock.. Canadian Farm Loan Board- Advances and Capital Stock. Miscellaneous 14,721 20,345 Province Debt Accounts Deferred Charges-Unamortized Discounts and Commissions on Loans. Sundry Suspense Accounts Less-Reserve for possible losses on ultimate realization of active assets. 1,151,852 35,066 5,920 24,024 343,963 3,153,707 373,907 2,296 86,739 757,030 4,538,820 125,000 4,413,820 Net Debt, March 31, 1945 $ 11,298,362 NET DEBT-MARCH 31, 1945 (Thousands of Dollars) Net Debt represented by- (A) Expenditures for Capital Purposes and Non-Active Assets- Public Works- Canals $ Railways Miscellaneous Military Property and Stores Territorial Accounts Canadian Pacific Railway (old) Canadian National Railways Securities Trust Stock Canadian National Railways Stock Loans Non-Active- Canadian National Steamships National Harbours Board- Chicoutimi $ 3,838 Churchill 10 Halifax 12,502 Montreal (Jacques Cartier Bridge) 5,840 Quebec 27,766 Saint John 17,056 Three Rivers 3,980 Soldier and General Land Settlement Seed Grain and Relief Advances Saskatchewan Seed Grain Loans Guarantee Act, 1936 Seed Grain Loans Guarantee Act, 1937 Miscellaneous Non-Active Accounts 240,237 427,014 315,005 12,617 9,896 62,791 359,081 18,000 13,158 70,932 16,526 2,637 7,136 2,458 (B) Consolidated Deficit Account- Balance, Consolidated Deficit Account brought forward from March 31, 1944 7,207,056 Excess of. expenditure over revenue, less amounts charged under A above, fiscal year ended March 31, 1945 2,533,519

9,740,375

The Bridget-Appendix

82 The following table gives the details of the various obligations included in the unmatured funded debt of the Dominion outstanding as at March 31, 1945, and the annual interest charges thereon:

Date of Maturity Rate Per Cent Where Payable Amount of Loan Annual Interest Charges1945, April 15 April 16 July 1 July 2 Sept. 1 1946, Feb. 1 April 15 May 1 1 Canada $ c. 250,000,000 00 $ c. 2,500,000 00[DOT]75 Canada 102,000 000 00 765,000,004 Canada 33,293,470 85 1,331,738 83li Canada 450,000,000 00 6,750,000 00[DOT]75 Canada 154,000,000 00 1,155,000 004§ Canada 45,000,000 00 2,025,000 00If Canada 100,000,000 00 1,375,000 00li Canada 144,253,000 00 2,524,427 50li Canada 197,455,000 00 3,455,462 502 Canada 193,286,000 00 3,865,720 00li Canada 373,259,000 00 6,532,032 50' Oct. 1 24 London 103,084 94 2,577 121948, Jan. 15 Feb. 1 Mar 1 24 New York 30,000,000 00 750,000 0031 Canada 50,000,000 00 1,625,000 0021 Canada 269,879,000 00 6,072,277 50li Canada 239,713,000 00 4,194,977 50li Canada 344,267,000 00 6,024,672 501949, Feb. 1 31 Canada 50,000,000 00 1,625,000 0031 Canada 33,500,000 00 1,088,750 001950, Feb. 1 1951, Feb. 1 31 Canada 50,000,000 00 1,625,000 0031 Canada (i) 50,250,000 00 1,625,000 003 Canada (2) 649,969,592 50 19,306,027 5031 Canada 60,000,000 00 1,950,000 001952, Feb. 1 Oct 1 31 Canada (3) 50,500,000 00 1,625,000 003 Canada 324,945,700 00 9,748,371 00Oct 15 4 Canada % 56,191,000 00 2,247,640 001953 Jan. 15 3 New York 30,000,000 00 900,000 001054 Mar. 1 3 Canada (*) 676,355,489 00 20,089,767 001955 May 1 31 London 4,958,401 84 161,148 063 Canada 40,000,000 00 1,200,000 003 Canada 55,000,000 00 1,650,000 001956, Nov. 1 44 Canada 43,125,700 00 1,940,656 503 Canada (') 855,607,410 50 25,414,081 501Q57 Mav 1 3 Canada 1,111,261,650 00 33,337,849 50Nov 1 44 Canada 37,523,200 00 ' 1,688,544 001958, Jan. 15 ' 3 New York 30,000,000'00 900,000 003 Canada 88,200,000 00 2,646,000 00Sept. 1 4 London 3,345,182 58 133,807 3044 Canada 276,687,600 00 12,450,942 001959, Jan. 1 3 Canada 1,197,324,750 00 35,919,742 5044 Canada 289,693,300 00 13,036,198 503 Canada 1,165,300,350 00 34,959,010 50' Oct 1 4 New York 100,000,000 00 4,000,000 001961 Jan. 15 31 New York 48,000,000 00 1,560,000 001962 Feb. 1 3 Canada 1,315,639,200 00 39,469,176 001963 July 1 31 London 3,658,863 50 118,913 0631 Canada 54,703,000 00 1,777,847 501967 Jan. 15 3 New York 55,000,000 00 1,650,000 001968 Nov. 15 3 New York 40,000,000 00 1,200,000 003 Canada 55,000,000 00 1,650,000 001945, April 13 Treasury Bills [DOT]371 Canada 65,000,000 00 241,150 00April 27 Treasury Bills [DOT]371 Canada 65,000,000 00 241,150 00May 11 Treasury Bills [DOT]371 Canada 55,000,000 00 204,050 00[DOT]368 Canada 65,000,000 00 239,200 00June 15 Treasury Bills *365 Canada 65,000,000 00 237,250 00[DOT]365 Canada 65,000,000 00 237,250 00April 3 Deposit Certificates [DOT]75 Canada 130,000,000 00 975,000 00April 10 Deposit Certificates [DOT]75 Canada 50,000,000 00 615, UU0 00April 17 Deposit Certificates [DOT]75 Canada 140,000,000 00 1,050,000 00April 24 Deposit Certificates [DOT]75 Canada 145,000,000 00 1,087,500 00Aug. 28 Deposit Certificates [DOT]75 Canada 57,100,000 00 428,250 00Sept. 4 Deposit Certificates [DOT]75 Canada 88,920,000 00 . 666,900 00Sept. 11 Deposit Certificates [DOT]75 Canada 128,980,000 00 967,350 00Sept. 18 Deposit Certificates [DOT]75 Canada 110,000,000 00 825,000 00Sept. 25 Deposit Certificates [DOT]75 Canada 150,000,000 00 1,125,000 00 The Budget-Appendix UNMATURED FUNDED DEBT AND TREASURY BILLS AS AT MARCH 31, 1945, AND ANNUAL INTEREST THEREON-Concluded Date of Maturity Rate Per Cent Where Payable Amount Annual of Loan Interest Charges

1945, June 15 Non-interest Bearing Certificates 1947, June 15 Non-interest Bearing Certificates War Savings Certificates 3 War Savings Stamps Canada Canada Canada Canada Refundable portion of personal income tax and excess profits tax (estimated) 2 Payable in Canada... Payable in New York Payable in London... * (*) 6,443,644 39 201,696,507 09 7,850,895 21 7,294,936 75 13,539,492,592 32 346,394,303 58 444,270,982 59 (6)5,195,447 69 13,983,763,574 91 351,589,751 27 $ 13,638,698,042 05 97-53% 333,000,000 00 2-38% 12,065,532 86 0-09% 13,983,763,574 91 100-00% (1) Redeemable at 109} per cent. Amount outstanding includes $ 250,000.00 redemption bonus. (2) Redeemable at 101 per cent. Amount outstanding includes 86,435,342.50 redemption bonus.(3) Redeemable at 101 per cent. Amount outstanding includes 8 500,000.00 redemption bonus.(*) Redeemable at 101 per cent. Amount outstanding includes $6,696,589.00 redemption bonus,(i) Redeemable at 101 percent. Amount outstanding includes $8,471,360.50 redemption bonus. («) Interest on refundable portion of personal income tax only.

83. Bonds and debenture stocks bearing the guarantee of the Dominion and outstanding in the hands of the public totalled $606,665,000 at March 31, 1945 or a decrease of $92,778,000 from the amount outstanding at the close of the previous year. This decrease is occasioned mainly by the redemption of two Canadian National Railway Company bond issues on May 1, 1944 and July 1, 1944 (due July 1, 1969 but called for prior payment) outstanding in the amounts of S35.000.000 and 856,684,000 respectively. The funds required to meet these maturities were loaned to the Company by the Government. 84. There were also outstanding at the close of the fiscal year other contingent liabilities authorized by various statutes. 85. Guaranteed bank advances to the Canadian Wheat Board totalled $71,166,000 at March 31, 1945, and related to wheat in the amount of $65,564,000; to flax in the amount of $5,211,000 and to rapeseed and sunflow'er seed in the amount of $391,000. 86. Pursuant to the terms of an Order in Council dated August 11, 1943, the Commodity Prices Stabilization Corporation, a Government-owned Corporation, guaranteed certain advances, obtained by any person engaged in the production of logs or lumber, from a chartered bank. The liability of the Corporation is limited to twenty-five per cent of the aggregate advances made by each bank. The contingent liability of the Corporation at March 31, 1945, was $27,400. 87. Under the terms of an Order in Council dated April 6, 1944, the Commodity Prices Stabilization Corporation was authorized to guarantee certain advances and interest thereon obtained by any person from a chartered bank in order to purchase coal, coke or briquettes in the summer of 1944. The liability of the Corporation is limited to ten per cent of the aggregate amount of advances made by each bank, but the maximum amount of guarantee is $500,000. The contingent liability of the Corporation at March 31, 1945, was $39,277. 88. Under the terms of an Order in Council dated May 4, 1943, the Government guaranteed bank overdrafts obtained by certain Crown companies and management-fee companies doing business under the Department of Munitions and Supply. Prior to the establishment of this system of financing, funds

The Budget-Appendix

advanced by the Government to the contractors remained idle for considerable periods. The amounts of the various overdrafts are repaid monthly, so no liability is outstanding at the close of the fiscal year in connection with this guarantee. The maximum amount of guarantees authorized at March 31, 1945, was *110,581,000. 89. Before operations under the Home Improvement Loans Guarantee Act were discontinued (October 30, 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 S49.959.055. 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 on March 31, 1945 was $246,120, the contingent liability of the Government is limited to this amount. Up to March 31, 1945, 1,249 loss claims for an aggregate amount of $454,018 had been paid. In terms of total losses to total volume of loans, this loss ratio is only [DOT]909 of one per cent. 90. Under the provisions of the Appropriation Act No. 5, 1942, the Home Extension Plan was started. It provided for loans not exceeding in the aggregate $2,000,000 by banks under regulations similar to those of the Home Improvement Loans Guarantee Act for the purpose of financing the creation of additional self-contained housing units by alterations or additions to a building used solely or partially as a dwelling at the time application is made for the loan. To March 31. 1945, 59 loans for a total amount of S109.238 had been made. The Dominion's contingent liability arising out of these loans amounted to 15 per cent of the aggregate of such loans made by the banks or $16,309. There have been no claims for loss made by the banks. 91. Under the Dominion Housing Act, 1935, the National Housing Act, 1938, and the National Housing Act, 1944, the Dominion 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. 92. The manner in which losses in respect of any loan are to be shared by the Dominion and the lending institution is fixed by the contract. The general principle under the Dominion Housing Act and the National Housing Act, 1938, 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 equal to or less than the amount advanced by the Dominion and one-third of the loss if at the time the loss is sustained the principal amount repaid, less any other amounts due, is more than the amount advanced by the Dominion. In the case of small loans (that is, loans not in excess of $4,000 in the case of a single family dwelling 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. Under the National Housing Act, 1938, a new provision was added to encourage the making of small loans in such small or remote communities and in such districts of 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 each such lending institution. Under the National Housing Act, 1944, the Dominion bears the first one-quarter of the loss and agrees to pay losses sustained by any lending institution up to fifteen per cent of the total amount of loans made in any area by each such lending institution. 93. An amount of $2,000,000 was appropriated for the fiscal year 1944-45 to provide for advances under the National Housing Act, 1938, not exceeding with the advance made jointly by the approved lending institution, $4,000 in respect of any one house, for the construction of houses where the Minister was satisfied that permanent houses could be constructed to relieve a serious housing shortage without threatening to create a post-war surplus. Loans to the number of 21,896 have been approved at March 31, 1945, under the Dominion Housing Act, 1935, and the National Housing Act, 1938, in the amount of $87,767,957. Under the National Housing Act, 1944, to the same date 862 loans in the amount of $3,575,785 have been approved. Losses recorded and paid to March 31, 1945, amounted to $2,644.78, covering the The Budget-Appendix Dominion's proportion of the loss on seven loans. This amount represents total losses to that date under both the Dominion Housing Act, 1935, and Part I of the National Housing Act, 1938. These losses are offset in part by a profit of $497.74 realized by the sale of eleven properties. The net loss to March 31, 1945, is therefore only $2,147.04. There have been no losses under the National Housing Act, 1944. 94. As announced in the Budget Speech of 1943 and provided in the Appropriation Act, the Minister of Finance entered into agreements with certain provinces guaranteeing the liquor revenues of the provinces on the basis of such revenues received during the twelve months ended June 30, 1942. No payments have been made to March 31, 1945, under these Agreements. 95. Under the terms of Orders in Council passed under the Export Credits Insurance Act, the Dominion Government guaranteed the payment to certain contractors for goods supplied and services rendered to the agent of a foreign country. The maximum amount authorized at March 31, 1945, under ths authority was $3,230,000. 96. The guarantee of bank advances to municipalities in Saskatchewan under the authority of The Seed Grain Loans Guarantee Act, 1938, was required to be implemented during the fiscal year. On December 11, 1944, the Government paid $16,469,000 to the chartered banks, the amount so advanced was charged in the Dominion's books as a loan to the Province of Saskatchewan which in the first instance guaranteed the advances. At the close of the fiscal year the amount so advanced had been reduced to $15,887,000. 97. The following is a statement of bonds and debenture stocks and other indebtedness guaranteed by the Dominion outstanding on March 31, 1945.

Date of Maturity Issue Interest Rate Amount Outstanding % $ Jan. 15, 1946... Canadian National 2f 15,000,000'July 1, 1946.... Canadian Northern 61 23,752,000April 1, 1948.... New Westminster Harbour Commissioners 4f 700'000Dec. 15, 1950... Canadian National 3 50,500,000Sept. 1, 1951.... Canadian National 41 48,022,000Feb. 1, 1952.... Canadian National 3 20,000,000-Aug. 1, 1952.... Saint John Harbour Commissioners 5 667,953Feb. 15, 1953.... Canadian National 3 25,000,000July 10, 1953.... Canadian Northern 3 1,169,460-Feb. 1, 1954.... Canadian National 5 50'000^000Mar. 1, 1955.... Canadian National (West Indies) Steamships Limited 5 9,400,000June 15, 1955... Canadian National 4} 48,496,000Feb. 1, 1956.... Canadian National 41 67,368,000July 1, 1957.... Canadian National 41 64,136,000-July 20, 1958.... Canadian Northern 31 5^641] 326-Jan. 15, 1959... Canadian National 3 35,000 000-May 4, 1960. ... Canadian Northern Alberta 31 551,505May 19, 1961.... Canadian Northern Ontario 31 3,643,985Jan. 1, 1962.... Grand Trunk Pacific 3 26,465 j 130*Jan. 1, 1962.... Grand Trunk Pacific 4 7,999,074Oct. 1, 1969.... Canadian National 5 57,728,500Nov. 1, 1969.... Plarbour Commissioners of Montreal 5 19,000,000Feb. 1, 1970... Canadian National 5 17,338,000Various dates 1946-54 City of Saint John Debentures assumed by Saint John Harbour Commissioners Various 590,2295 it 5 it 4 It Northern Railway of Canada Debenture Stock.. 4 27,458606,665,082 1060 The Budget^-Appendix

Principal Amount Outstanding March 31,1945 Bank Advances, re Province of Manitoba Savings Office $ 5,299,078 Province of Manitoba Treasury Bill 4,305,723 Province of British Columbia Treasury Bill 626,534 Bank Advances, re Canadian Wheat Board: Wheat 65,563.970 Flax 5,210.947 Rapeseed a.nd sunflower seed 390,772 Loans made by approved lending institutions under Dominion and National Housing Acts Indeterminate Loans made by approved lending institutions under The Home Improvement Loans Guarantee Act, 1935 246,120 Loans made by approved lending institutions under the Home Extension Plan 16,309 Deposits maintained by the chartered banks in the Bank of Canada 422,029,434 Bank Advances, re Government War Contracts-Department of Munitions and Supply 3,003,750 Bank Overdrafts-Government War Contracts-Department of Munitions and Supply (closed out monthly) Bank Advances, re production of logs or lumber-Commodity Prices Stabilization Corporation 27,400 Bank Advances, re coal, coke or briquette purchases Commodity Prices Stabilization Corporation 39,277 Guarantee under Dominion-Provincial Taxation Agreements of Provincial receipts from gasoline taxes at amounts received in fiscal years ending nearest December 31, 1940 Indeterminate Guarantee under Dominion-Provincial Agreements of Provincial liquor revenues at amounts received during the twelve months ended June 30, 1942... Indeterminate Guarantees under Export Credits Insurance Act Indeterminate IMr. Ilsley.] The Budget-Appendix (B.) CANADIAN ECONOMIC CONDITIONS