SECURITY FOR OUTLAY 247 



America. Therefore, it seems not unreasonable to hope that 

 Congress may soon see fit to separate the two credit services from 

 one another, giving to capitalism what is due to capitalism, and to 

 co-operation what is due to co-operation. 



The several provinces of Canada have, while apparently borrowing 

 the governing idea of their legislation on mortgage credit from the 

 United States, proceeded in particulars upon a rather different 

 plan, among other things making the matter one for provincial, 

 rather than Dominion legislation. Money for mortgaging purposes 

 and the acquisition of land is probably as badly needed in Canada 

 as it is in the United States. Canadian representatives were among 

 the most actively inquiring members of the " American Commission " 

 of 1913. And evidently their labours have not remained without 

 fruit. The Act passed in Manitoba will probably serve fairly as an 

 example of what has been laid down. That Act reveals pretty 

 clearly Washington parentage, the Manitoba offspring Act having 

 been passed in March, 1917. 



Under this Act a fund is created in the form of a share capital, 

 standing at 1,000,000 dollars, of which sum the Crown is empowered 

 to subscribe one-half, and to advance temporarily the other half, 

 the shares representing that sum being allottable only to borrowers, 

 who will of course come in only gradually. Such borrowers must 

 necessarily be farmers or else persons intending to become such in 

 the particular province. The governing body is a commission of 

 five, of whom the Lieutenant-Governor appoints one, the Union 

 of Municipalities another and the " Grain Growers' Association," 

 being a representative body of farmers of the province, a third. 

 From among the five the Lieutenant-Governor appoints a " Com- 

 missioner," who acts as chairman and as executive officer generally. 

 Loans are granted at 6 per cent, plus amortisation, for thirty years, 

 but may be repaid at the mortgagor's option, in full or in part, on 

 any annual pay day. Every loan must be secured by a first mort- 

 gage granted up to a limit of 50 per cent, of the value of the pledge, 

 ascertained by the commission's valuer. The commission is empowered 

 in the matter of granting, hypothecating and cancelling mortgages 

 to act as its own conveyancer. There must be a purpose stated for 

 which the loan is taken and that purpose must be approved and 

 adhered to. The list of purposes allowed embraces ill kinds of 

 improvements, and also purchase of land, and replacing oi older 

 mortgages. The cash required is raised either by deposits received 

 at 4 per cent., for which certificates are issued in a variety "I de 

 nominations rising from $25 upwards to $1,000, withdrawable at 



