1937 - Convention Report

              TWENTIETH PROVINCIAL CONVENTION 47
products. It was said, that as the Provinces and the Dominion between them
possess a totality of complete legislative authority, it must be possible to combine
Dominion and Provincial legislation so that each, within its own sphere, could,
in co- operation with the other, achieve the complete power of regulation which
is desired. Unless and until a change is made in the respective legislative
functions of Dominion and Province it may well be that satisfactory results for
both can be obtained by co- operation."
Under the Farmers' Creditors' Arrangement Act applications may be made
to the Official Receiver by a debtor to have his debts adjusted. This adjustment
is made by a Board of Review of three members, consisting of a judge, a repre­sentative
for the creditors and a representative for the debtor. Many farmers
have made application and received adjustments which have placed them in
positions whereby they are enabled to carry on. This is the beginning of a type
of legislation which promises to become very important in solving the present
debt situation.
The Privy Council has decided this Act is valid legislation. The Minister
of Finance, the Hon. Charles Dunning, said in such a case the Dominion
Government would strengthen the administration of the Act. It remains to be
seen to what extent this will be done.
The Canadian Farm Loan Act of 1927 was amended in 1934 and radically
modified by the Canadian Farm Board Loan Act Amendment Act, 1935. Before
an applicant can have his application considered by the Board it is necessary that
he come within the definition of farmer, which, under the Act, means, a person
whose principal occupation consists of farming which includes stock raising,
dairying and tillage of the soil. The maximum amount of the loan is reduced to
$ 5,000.00. The proceeds of the loan may be used to purchase farm land, farm
equipment necessary to the proper operation of farm mortgaged, to make im­provements,
to discharge liabilities already accumulated, or for any other purpose
which, in the judgment of the Board, may be reasonably considered as improving
the value of the land for agricultural purposes.
The loans are repayable upon such terms and within such periods not in
excess of 25 years as the Board may prescribe. However, all loans repayable
over a period I D excess of five years shall be paid in equal annual or semi- annual
instalments of principal and interest.
Legislation to meet the request for a Wheat Board was passed and in the
fall of 1935 commenced to function. At present it is not operative, but the
Turgeon Commission is making inquiry into the different phases of the market­ing
of grain.
P R O V I N C I A L L E G I S L A T I ON
Consolidation Debt Adjustment Act. This Act is a complete revision and
consolidation of the old Debt Adjustment Act. As the general provisions of the
old Act the powers of the Debt Adjustment Board and its administration are
by this time widely known, it is not necessary to review in detail all the pro­visions
of the Act.
The Debt Adjustment Board is continued with all the powers it originally
had, but the following changes in operation of the Act are made:.
( a) Whereas the old Act only applied to debt incurred before July, 1932,
the new Act covers all debts incurred prior to July 1st, 1936.
( b) The right of appeal to the Courts from the decision of the Board is
taken away.
Other alterations were also made applying to mortgages, rentals, etc.
The Debt Reduction and Settlement of Debts Act was passed in an endeavor
to reduce old debts, or de. bts incurred before 1st July, 1932. With respect to old
debts, the Act provides that any sum paid on account either for principal or
interest since July 1st, 1932, must be applied to principal and the balance made
payable over a period of ten years without interest. This Act has been declared
ultra vires by Judge Ewing of the Supreme Court, but the Government has
appealed his decision. In the meantime a 60- day moratorium is in effect to
enable a debtor to seek protection if action is brought against him.