1.—16.

[J. J. ESSON; W. j. POLSON.

of bushels of grain are being stored under these receipts'; and that the bankers from one end of the country to the other, and the Government agencies which have been assisting in agricultural financing in the last few years, have found these receipts without exception acceptable, it does not seem to be asking too much of bankers who are sincerely desirous of helping in the financing and orderly marketing of agricultural products that they should thoroughly acquaint themselves with the Federal Warehouse Act and its administration and the form of warehouse receipt provided for by this law. There is such a thing as a warehouse receipt having back of it real value. There is also such a thing as a warehouse receipt which is a mere piece of paper. As bankers, which do you prefer ? Be it said to the credit of warehousemen, they are willing generally to become licensed if the banker will express a preference for a Federally licensed receipt, lint they ask, " Why should we submit our business to Government supervision when the bankers will accept our competitors' non-licensed receipt on an equal footing with our licensed receipt ? " A little discrimination, often only a word of preference for the Federal warehouse receipt, will accomplish the desired end. In all seriousness we ask you as a banker, are you or is the warehouseman the more to blame for the poor form of warehouse collateral that is so frequently offered as security for an agricultural loan ?

The Chairman: Yes ; now, have you any further information in connection with the constitution of the Board ? Colonel Esson: No. Mr. A. Hamilton : You think there should be a special Bill for the warehousing business ? Mr. Poison: I think there should be a separate Bill. Right Hon. Mr. Coates : So far as this Bill is concerned, it is provided for by regulation '( Mr. Poison : It is all right. It will provide for a small number of people. Right Hon. Mr. Coates: Why would it benefit only a small number of people ? Mr. Poison: You do not suggest that every farmer is going to come into this immediately it is passed ? Right Hon. Mr. Coates : It is suggested that it should be extended. Mr. Poison : I do not think that would be workable. The Chairman: Now, one of the points that the Committee will be deliberating upon later will be in regard to the £250,000. I think we should get an expression of opinion from these gentlemen as to whether, in their opinion, they think that amount is adequate. Mr. Poison: Colonel Esson thinks it will not all be used, but I think it is not enough. Mr. Forbes: The forming of these associations will necessarily take some time. The farmers will have to be educated up to it. Colonel Esson: The farmers unions will have to be very active in assisting with the formation of these associations. Mr. Poison: That is the main object of creating Advisory Committees. Advisory Committees will assist in each main district, and their job will be to work in with the executive officer, whoever he may be, and create interest in the whole thing. The Chairman : The Government can create the machinery, and the farmers' unions and Advisory Committees will really have to do the main work and the propaganda work. Mr. Poison : Yes. Mr. A. Hamilton : How is it that Colonel Esson thinks that the £250,000 would not be used ? Colonel Esson : They would not require to sell £250,000 of debentures to start with. Mr. A. Hamilton : Yon could lend that right away. The Chairman: Half of it is put into a special redemption fund. You could only lend onehalf of it.

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