LOAN FUND

Nelson Evening Mail, Volume LXIV, 2 January 1931, Page 6

LOAN FUND

FINANCING FARMERS IMPORTANT CANADIAN PROJECT (United Press Association—By Electrio Telegraph—Copyright) OTTAWA, 30th December. Speaking at Regina (Saskatchewan) on Tuesday the Prime Minister, Mr Bennett, said that the financial difficulties of the farmers of Canada would be met by the creation of a. private corporation in which banlcs, transportation companies, industrial concerns, insurance and mortgage companies would be shareholders. The company will use its capital as a revolving loan fund, from which money may ho loaned to farmers to assist them in extending their operations into mixed farming. Mr Bennett also stated that tiie Federal Government proposed to offer provincial 'governments wholehearted and immediate co-opera-tion in tlie efforts they were making to alleviate the suffering of their people during the winter and to provide them with tlie best grade seed for spring sowing. No steps will he taken to fix the price of wheat. The premier said jurisdiction to fix the price of wheat rested with provinces; but apart from legal considerations it would he unwise to fix the price in excess of the world-price, because Canada, unlike tlie United States, could not hope to absorb her surplus wheat by domestic consumption. _ Two other announcements of vital interest to wheat growers were made by the Prime (Minister. He said word had been received that France will guarantee to buy at least from seven million to nine and a half million bushels of the 1930 wheat crop. At tlie same time arrangements arc being made with a view to marketing wheat in China. The Canadian minister to Japan, (Mr Marler, was now en route to China to discuss the sale of a millions bushels of wheat to that country. The Government was prepared to provide credit facilities to China in order to open up such a valuable trade channel. Mr Bennett further said that he expected an agreement to be reached at the adjourned Imperial Economic Conference in Ottawa next summer which would mean broader Empire markets.