Mr. LUCAS:

My point was that the board should have some clear understanding with the farmer, when they accept the grain, whether the wheat should be held, whether they should use their judgment, or just exactly what would be done. In one case they held it and in another case they sold it.

Mr. LUCAS:

Does the Prime Minister say that there is no change?

Mr. LUCAS:

I notice the last sentence in the explanatory note reads:

This provision, in view of the extension of loaning operations provided in Part II of this bill, is not included in the amended subsection.

Mr. LUCAS:

Paragraph (a) of section 7 of the present act states that:

mortgages taken as security for farm loans and remedies thereunder shall be in all respects subject to the law of the province in which the farm land mortgaged is situated.

Under section 5 of the bill paragraph (a) of section 7 of the act is being repealed, and as I understand the substituted paragraph, it will mean that any loans now taken out will not be subject to the law of the particular province in which the land is situated. I understand that private companies making loans come under the laws of the province in which the loans are made, and I should like to know why the farm loan board should not be placed in the same category.

Mr. LUCAS:

There is another point on which I should like a little information. I understand that a farmer who is insolvent will not come under the provisions of this bill. This morning I handed the Prime Minister a letter I received from a farmer who declared that he was hopelessly insolvent, and who wanted to know if this bill would give him any assistance. To-day a farmer who is insolvent requires from $100 to $150 to go into bankruptcy. Many farmers simply cannot raise that money, and I was wondering whether under the provisions of this bill, by which we are providing without cost official receivers and boards of review for the benefit of those farmers who may come under the act, these insolvent farmers might not have their cases reviewed so that, if they are found to be hopelessly insolvent, they might be put through bankruptcy without the cost that is now entailed. These men cannot raise the money necessary to go through bankruptcy and they find themselves chained, as it were, almost as slaves. They are unable to get rid of this debt and start up afresh. I am sure that if some means could be provided whereby they could be relieved of this burden many of them would make a fresh start with at least some hope of making a livelihood.

I want to congratulate the Prime Minister on bringing in this legislation. I think it is very badly needed and will afford a great deal of relief to those who are able to come under the provisions of the bill. But I think hon. members, especially those from western Canada, will agree that many farmers in the west are hopelessly insolvent, and they will not geit relief so long as they remain in that condition.