Thomas Bruce MCNEVIN

MCNEVIN, Thomas Bruce

Personal Data

Party
Liberal
Constituency
Victoria (Ontario)
Birth Date
February 6, 1884
Deceased Date
March 2, 1951
Website
http://en.wikipedia.org/wiki/Bruce_McNevin
PARLINFO
http://www.parl.gc.ca/parlinfo/Files/Parliamentarian.aspx?Item=ce87ba2a-6127-44cc-9cca-1dcffc932048&Language=E&Section=ALL
Profession
farmer

Parliamentary Career

October 14, 1935 - January 25, 1940
LIB
  Victoria (Ontario)
March 26, 1940 - April 16, 1945
LIB
  Victoria (Ontario)

Most Recent Speeches (Page 1 of 51)


August 12, 1944

Mr. McNEVIN:

Take the figure of

$2,700,000,000 which was given in the banking and commerce committee as the amount which the dominion government has borrowed from the chartered banks. Mr. Tompkins, the inspector general of banks, said that that was costing the Government an average interest rate of 1-59 per cent. The hon. member for Vancouver-Burrard suggested that by this means we could save a great deal of money, but when you are comparing the taking over of savings banks deposits, the comparison should not be with the bonds borrowed from the Canadian people, but with money borrowed by the government from the chartered banks; and what is the result? According to his computation, he admitted an interest rate of one per cent and one-half per cent service charge, or one and one-half per cent; in the other case the amount is 1-59 per cent; so that all we are discussing is the possibility of saving the difference between one and one-half and l-59 per cent.

It is possible that if the discussion is prolonged I shall have something further to say later in this debate. I commend the Minister of Finance for the way in which he is carrying a tremendous burden in the successful financing of the war effort of Canada, an effort which compares very favourably with that of any other country, through a financial system which, while I do not say it is superior, is second to no other financial system in the world.

In conclusion, I would sound a note of w'arning with regard to inflation. Not many weeks ago a friend of mine returned from war-torn, war-ridden China, a country where infla-

Bank Act Amendment

tion is eating the very heart out of the people and seriously hampering the war effort of the valiant Chinese, as well as causing some concern to the Americans who are endeavouring to assist them with their finances. Let me give this illustration. A missionary friend, when he was working in the mission field of China back in 1941, was finding it difficult to get milk for his two or three children. A friend said, "Why do you not buy a otw?" He said, "I think I will." Even at that time this cow cost up in the thousands of dollars in the currency of that country. Several months ago, when about to leave China, and not wanting to keep the cow, because he had no one to look after it while he was away, a friend said to him, "If you do not want to keep your cow I will buy it." What do you think he got for the cow? Fifty thousand dollars in Chinese money. That illustrates the heights to which inflation can reach. Of course, before returning to Canada he transferred the fifty thousand dollars of Chinese money into Canadian money and he did not have any more, nor indeed quite as much, as one would get for a cow in this country.

I believe that the Minister of Finance through price control and sound financing has protected the interests of the vast majority of the people.

Topic:   CANADIAN FORCES
Subtopic:   SUPPLY OF REINFORCEMENTS TO CANADIAN ARMY
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August 12, 1944

Mr. McNEVIN:

I could separate them if I wanted to take the time. There were 700,000 and some odd demand, and 4,000,000 and a few thousand savings.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
Full View Permalink

August 12, 1944

Mr. McNEVIN:

Perhaps it was three billion dollars, but it does not affect my argument. An interest charge of one per cent on one billion dollars would amount to ten million dollars, and an interest charge of one per cent on two billion dollars would amount to twent3r million dollars. The hon. member then said that a charge of one-half of one per cent should be allowed for servicing deposits. Then he- went on to say that if the government took over that amount of two billion dollars at that rate of interest they would save a great deal of money, because the government were paying three per cent on the bonds which had been subscribed by the Canadian public. I want to dissipate that fallacy. At the present time the dominion government has borrowed from our chartered1 banks a total of not $2,000,000,000 but $2,700,000,000.

Topic:   CANADIAN FORCES
Subtopic:   SUPPLY OF REINFORCEMENTS TO CANADIAN ARMY
Full View Permalink

August 12, 1944

Mr. McNEVIN:

Mr. Chairman, in the discussion this afternoon something has been said about the time the bill was introduced into the house. If my memory serves me correctly, the Minister of Finance introduced the bill on May 2. It was referred to the banking and commerce committee on May 16, and on May 17 that committee gave Bill No. 91 precedence over all other business. The bill was finally passed in the banking and commerce committee on July 27. Therefore that committee spent two months and ten days in the discussion of this very important bill. I do not think any member of that committee or any member of the house can say that there' was not ample time for a full review, investigation and discussion of the provisions of the bill which renews bank charters for another ten years.

I should like to make only one or two observations with respect to the provisions of this bill. I am very much in favour of those provisions which extend longer term credits to the great agricultural industry in Canada. I regard the banking business as a commission business. The banks have their capital; they have their reserves, and they have a deposit business.

This afternoon the hon. member for Vancouver-Burrard said that in answer to questions asked the governor of the Bank of Canada the governor had said that the banks did not lend their deposits. That is true; he did say that. Bht the governor further explained that the banks lend the proceeds of their deposits which, I suggest, places an entirely different construction upon thip situation.

The Minister of Finance has effectively reviewed the situation as far as the issue of Bank of Canada money is concerned, through the chartered banks. However, after two months and ten days of discussion the hon. member for Vancouver-Burrard had some suggestions, which I regarded as his final suggestions. I find that on Thursday, July 20, seven days before the bill passed the committee, the hon. member for Vancouver-Burrard said this:

Mr. Chairman, yesterday the matter arose in connection with a liability that would be created or that some seemed to think ryould be created by the Bank of Canada taking over the savings deposits.

Meaning the savings deposits of the Canadian people.

Topic:   CANADIAN FORCES
Subtopic:   SUPPLY OF REINFORCEMENTS TO CANADIAN ARMY
Full View Permalink

August 12, 1944

Mr. McNEVIN:

I have not discussed that situation for some time-

Topic:   CANADIAN FORCES
Subtopic:   SUPPLY OF REINFORCEMENTS TO CANADIAN ARMY
Full View Permalink