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Provincial . Dominion .. 1|de .. "as home by the" him eirntritnt- ting authorities were as follows: c The Dominion Government con- tinued It: method of contribution by way of at monthly grant which amounted to $483,000 per month. The province, after many conter- encea with the Dominion authori- ties. was auccesalul in having the Dominion alter their contribution from a monthly grant-in-aid basis of 846h000 to a grant of 40 per cent of total mnothiy relief costs. this new arrangement to be effec- tive trom April I, 1939. The percent- age: of contribution in 1938, as pre- viously stated. were, province. 46.06 per cent; Dominion. 25.85 per cent; and municipal. 28.09 per cent. As of April I, 1939, the percentages will he. province. 40 per cent; Do- minion, 40 per cent; and munici- pal so per cent. Thm are ttttl organized munici- palities in Ontario. Ot these the province centributed to 673 munici- palities toward unemployment re- The province in the past year car- ried on investigations in the City ot Ottawa. with a view to assisting this municipality in reducing its re- lief burden. As a result of provin- cial assistance in this one munici- pality. gross relief costs in the year 1938 were reduced by the sum ot "36.07684 under 1937. Other mu- nicipnlities where the province has been directly assisting also show a marked improvement over the pre- vious you. At the present time the province is carrying on an investigation in the City of Toronto with a view to assisting this municipality in de- creasing expenditures for unem- ployment relief. The Department of Public Wel- fare has continued the home serv- ice training schools under the Do- minion-Provincial Youth Training Program. During the year. 612 girls were admitted to courses of in- struction; 516 girls were placed in positions during the year 193a The new plan of dintrihution ot direct Mlle! coats will moan a conaidenblo aaving to munici- palities. n b animated that in I." no. relief coaia will be ap- proximately $22,700,000. 0n the haaia ot contribution in 1988. the municipal - lot "" would have been "316.480. Under the {HO-20 arrangement the munici- pal alum will be $5,400.00, or a - oi over $900,000. Provincial Secrefary's Deparfmenf Inform-uric. and Prisons. Because of the increased number of prisoners sentenced to penal in- stitutions during recent months, it has been necessary to provide ad- ditional accommodation. Therefore, an Industrial Farm was established " Monteith on the property which tor many years was the Northern Academy. Another building at the Ontario Reformatory. Mimico, and one at the Industrial Farm, Bur- wash, were equipped and occupied. Thus. usetul work has been pro- vided for many prisoners. It is expected that the new cell block providing space tor 324 pris- oners and now being constructed " the Ontario Reformatory. Guelph, will be completed early this sum- mer. This is not regarded as ad- ditional accommodation. but will re- lease much housing space for other reformative purposes. - Material improvements tn the buildings, equipment, staffs and general work have been made in many at the other penal Immu- nous. The roman costs and peregnt- iarstr3.tm.as--tooMrft E6irf.ittttt.06--. The unfortunate increase in ju- venile delinquency has resulted in more boys and girls being sent to the training schools and industrial schools. This has increased the total grant to the industrial schools and the maintenance cost in the train- ing schools. Agriculture Development However. the policy of shorten- ing the time spent. in these schools and in placing these children in selected foster homes has been very successful in again placing them on the path of good citizenship, and has at the some time avoided the necessity of capital expenditure tor additional buildings. You will recall that the Agricul- tural Development Board. which was brought into being for the pur- pose of making loans to farmers hy way of first mortgages. was diss solved in the fall of 1935 and was succeeded hy what is known as the Department of the Commissioner of Agricultural Loans. The duties of the latter department since the discontinuance of loans may be de- scribed as that of liquidators with the authority to collect outstanding loans. On Feb. 28, 1939, the books of this commission show: Number of loans ........ 15.61S Principal ............... '41.079.069.14 Farms repossessed ...... 3.978.6(8.12 46.06'"e 23.83% 23.09% Your attention ls drawn to the {not that out of tho total of 15,615 loans, there are 8.799 loans in ar- rears of principal and interest, but The majority of the prisoners are young. hut my no Irre- sponsible and some no vicious. Number of loans ......... 587 Loss in principal .......... $144,951.11 Loss in interest .......... 549,910.23 Total ......e...e........o 869436134 The above dismal picture of this department with the ultimate loss to the taxpayers of the province is due chiefly to the maladministration and lack of foresight on the part of the past provincial governments. tt The number of loans reduced by the Farmers' Creditors Arrangement Act showing loss of principal and loss of interest as of Feb. 28, 1938, is as follows: in order to assist our mortgagors we have re-tttttortized 3.538 loans and extended their payments for a period of from 20 to 30 years. This would indicate that out of a total of 15,615 loans there were 12.337 loans in arrears of principal and interest. The hllowing figures will indicate the exact condition: Total number of loans .. 15.615 Arrears of principal ...... 83.42i,T3T.t13 Arrears of interest ...... 2,721,581.65 Loans re-amortized ...... 3.538 Interest added to principal t2,060,094.3s scans at lull strength to (in, proper training and maintain good dimming and provide an custody. What happens to taxpayers when governments {all to look ahead In striking" revealed by the" ntrures. The story as reveal- ed by the operation. of the do- lunct Agricultural Development Board In a perfect example of the lnemclency and wutefulneu of governments In Inn-mess. has been neccmry to keep s 1omtiiris.:rt-- 45.13% T.044.TW.e-- gal" '2t33ts3T.3tri01e'.?2 MARCH ' iijiaiii".iri-- Eiletiri, "5.0ST,66T.'26 The duty imposed on this commis- slon is. to say the least, a distress- ing one for those who are given the responsibility of endeavoring to li- quidate the present outstanding loans. It these loans had been made solely on their merits and on valua- tions which existed in the pre- depression days, some justification' could be made for this expenditure of monies. but our records indicate that the greatest sums were loaned in the years 1930, 1931, 1932 and 1933, a peak being reached in 1933, when the government approved of and loaned $8,516,305.28. It may be sug- Rested that these loans were made at this particular time in an effort to stem the tide of the depression which had particularly hefallen the agricultural community, but an analysis reveals the fact that over $12,000 An additional loan of $12,000 would be made which would have the purpose of paying off the mort- muror's unpaid interest of $2,000 and "placing his loan in good standing. ' It meant merely cross entries be- tween the Treasury Department who advanced the money and the Agricultural Development Board. The farmer received no additional capital and was merely encouraged to fool the government by not being asked to repay the money originally loaned. 2,000 increased loans were made during the years 1930 to 1934. which gave no new money to the original mortgagors, but simply served the purpose of paying their arrears of principal and interest. and was re- turned to the Treasury Department as payments on outstanding interest. It may be well to elucidate on these transactions by the following example: A loan of, say, $10,000.00 made in 1930 and in 1932 foreclosure pro- ceedings commenced with the loan standing as follows: Principal unpaid .............. $10.000 Interest unpaid o.............. 2,000 It was pointed out that. of a total of 15,615 loans, 12.924 mortgages are in arrears of either principal or in- terest. or both. This condition is not a. true picture of the farming industry as a whole. It is common knowledge that the farming indus- try has undergone very difficult times, but despite the fact that farmers are producing under higher In the Budget speech of 1936 at- tention was drawn to a mortgage granted on an island of 350 acres lying about one mile off the shore of Prince Edward County. There are cases on our files which show that some farmers not only re- ceived one increased loan, but re- ceived as many as four and some- times five increased loans, the new money being granted for the pur- pose of absorbing their arrears only, and displaying a better balance sheet to the government in power at that time. costs and receiving low prices for their produce, it is not fair to as- sume that 12,924 farmers who are in arrears out of a total of 15,615 farmers represent a true picture of farming conditions. All the evi- dence shows that a great many of this army of 12,924 were grossly de- ceived by the granting of unreason- able credit. A Toronto broker was then a loan of $7,000 on this island. at- though grave doubt existed as to how any government represents tive could make a. proper valua- tion of thls place, as reports would Indicate that in the spring. autumn and winter the water was too rough to mroach the Island. and we can only conjecture