Question 566. - Does the fact that security on pig-iron given by an importer (not a manufacturer) in form of a security receipt (not a warehouse receipt) is invalid, mean that advances under security receipt to wholesale importers (not manufacturers) must be made against foods in their raw state, i.e., those that have not gone through any process of manufacture? Would an advance against a security receipt (not a W. R.) to an importer (not a manufacturer) of maple sugar be valid? Also an advance against security receipt (not a W. R.) of fine finished leather?

Answer. - Not necessarily against goods in their raw state, but the goods must fall in the category given in sub-section 1 of section 88 of the Bank Act which is interpreted in sub-section (1) of section 2.

We think the answer would be "no" in both cases. Maple sugar would probably be held not to be a product of the forest or agriculture, but rather of a process of manufacture, and it is not specifically included in the articles named in the interpretative clauses above referred to. Fine finished leather is clearly a manufactured product which could not be claimed to be covered by the terms of the clause above referred to or that preceding it.