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Urban History Review Revue d'histoire urbaine

W. C. Clark and the Politics of Canadian Housing Policy, 1935-1952 John Bacher

Volume 17, Number 1, June 1988 Article abstract To a remarkable extent the course of Canadian housing policy from 1935 to URI: https://id.erudit.org/iderudit/1017697ar 1952 was set by the deputy minister of finance, W. C. Clark. By developing DOI: https://doi.org/10.7202/1017697ar programs that stimulated the building of new homes for sale, he was able to deflect growing calls for a substantial federal program of subsidized low rental See table of contents housing. Working in close consultation with representatives of mortgage-lending institutions, including D'Arcy Leonard, and with David Mansur, inspector of mortgages for Sun Life and later president of Central Publisher(s) Mortgage and Housing Corporation, Clark was able to build an alliance of realty interests, home builders, life insurance companies, and material supply Urban History Review / Revue d'histoire urbaine companies, such as retail lumber dealers. This alliance prevailed over public-housing supporters: trade unions, large construction companies, ISSN architects, social workers and urban planners. Clark was largely responsible for drafting the Dominion Housing Act of 1935 and the national housing acts of 0703-0428 (print) 1938 and 1944. Although all his legislation was geared to building new homes, 1918-5138 (digital) and reducing political criticism, these acts also contained misleading and unworkable provisions for low-income housing. During World War II Clark Explore this journal reluctantly accepted rent-control and federal rental housing, but he restricted their scope and oversaw their phasing out by his long-time associate Mansur. Clark was also crucial in developing government programs that fostered large Cite this article residential builders to plan future urban communities. Bacher, J. (1988). W. C. Clark and the Politics of Canadian Housing Policy, 1935-1952. Urban History Review / Revue d'histoire urbaine, 17(1), 4–15. https://doi.org/10.7202/1017697ar

All Rights Reserved © Urban History Review / Revue d'histoire urbaine, 1987 This document is protected by copyright law. Use of the services of Érudit (including reproduction) is subject to its terms and conditions, which can be viewed online. https://apropos.erudit.org/en/users/policy-on-use/

This article is disseminated and preserved by Érudit. Érudit is a non-profit inter-university consortium of the Université de Montréal, Université Laval, and the Université du Québec à Montréal. Its mission is to promote and disseminate research. https://www.erudit.org/en/ The Hon. Herbert Alexander Bruce, Lieutenant-Governor of Ontario, chairman of a committee on housing conditions in Toronto which recommended the creation of a national housing commission to provide grants to municipalities and provinces for low-rental housing.

CTA. Globe and Mail Collection 644306, 24 April 1937

4 Urban History Review/Revue d'histoire Urbaine Vol. XVII No. I (June 1988) W. C Clark and the Politics of Canadian Housing Policy, 1935-1952

John Bâcher

Abstract

To a remarkable extent the course of Lawrence B. Smith's neo-conservative Construction, he gave an academic Canadian housing policy from 1935 to assessment of Canadian housing policy sanctification to the tendency of the real- 1952 was set by the deputy minister of praised the formative years, 1935 to 1954, as estate market to intensify the capitalization of finance, W. C. Clark. By developing a sort of golden era, from which successive land and to make this the basis for programs that stimulated the building governments have deviated along a socialist skyscraper construction. They wrote that the of new homes for sale, he was able to course that has jeopardized national housing optimal height of a building was the level at deflect growing calls for a substantial standards.1 Federal housing policy did flow which the owner's returns were maximized, federal program of subsidized low along lines that would today win applause which he calculated to be 63 stories given rental housing. Working in close from neo-conservative thinkers, largely the state of existing technology, although the consultation with representatives of because the designers of these policies in level would rise as land values increased. mortgage-lending institutions, including Ottawa held similar views. This was Clark warned that restrictions on the height D'Arcy Leonard, and with David especially true in the case of William Clifford of skyscrapers would invite disaster. He Mansur, inspector of mortgages for Clark, the deputy minister of finance, who viewed "the whole economic fabric of Sun Life and later president of Central was the foremost shaper of Canadian society" as being "built to an important Mortgage and Housing Corporation, housing policy from the first permanent degree upon current property values." Clark was able to build an alliance of program in 1935 until his death in 1952. He Looking forward to the days when such realty interests, home builders, life would draft the critical Dominion Housing Act trends would place an entire city in one insurance companies, and material of 1935 in close association with the mortgage skyscraper, he believed it would be "the most supply companies, such as retail lumber companies, fight a successful battle to curtail profoundly efficient concept of gigantic size dealers. This alliance prevailed over and wind down socialized housing initiatives ever created by man." With land public-housing supporters: trade created during World War II, and confuse development being undertaken by large unions, large construction companies, social reformers with a dazzling array of capitalists, the city's future would "be in more architects, social workers and urban legislative complexities that disguised the responsible hands" ensuring also "more planners. Clark was largely responsible intent of his policies. Clark, in cooperation scientific determination of supply and for drafting the Dominion Housing Act with his close associate, David Mansur, also demand conditions."3 of 1935 and the national housing acts created a federal housing agency, Central of 1938 and 1944. Although all his Mortgage and Housing Corporation, with an Clark's beliefs in the value of big business in legislation was geared to building new explicit mandate to encourage private land development and his firm conviction in homes, and reducing political criticism, enterprise in the housing field. the virtues of the free market in land and these acts also contained misleading housing finance, which would characterize and unworkable provisions for low- In many ways Clark carried out the tradition his housing policies, were firmly shaped income housing. During World War 11 of free-market liberalism so favoured by when he was appointed to the post of deputy Clark reluctantly accepted rent-control Oscar Douglas Skelton (1878-1941), his minister of finance by Prime Minister R.B. and federal rental housing, but he mentor and one of the founders of the Bennett, on the advice of Skelton.4 Clark did restricted their scope and oversaw their modem Canadian civil service! Clark's not recommend heavy expenditures for phasing out by his long-time associate earliest work in opposition to government public works, such as subsidized housing, as Mansur. Clark was also crucial in regulations, in 1917, in the grain trade, was an answer to depression-era unemployment. developing government programs that clearly along these lines and was not Although he has gained a reputation as the fostered large residential builders to fundamentally altered either by his founder of Canadian Keynesianism, Clark plan future urban communities. remarkable experience as a pioneering advocated only that governments plan public Canadian labour statistician or by his works to counter recessions by not blindly association with labour educator Edmund cutting back in hard times and thus 2 Resume Bradwin, during years of labour turmoil from aggravating employment difficulties. He 1918 to 1923. Clark's sojourn in the United stressed that he did not "wish to be quoted De 1935 à 1952, le Ministre des States as an investment consultant and as advocating the expenditure of large sums Finances W. C. Clark détermine, dans executive for the real estate firm of L. W. of money in construction of public works for une très large mesure, révolution de la Strauss and Company from 1923 to 1932 the relief of unemployment." Instead he politique canadienne de logement. appears to have reinforced his free-market simply advocated "the expenditure of Clark parvient à faire dévier de leur thinking. In a book coauthored with J. L forethought." In 1931 he told a civil service objectifies demandes croissantes en Kingston for the American Institute of Steel gathering:

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favour de l'instauration d'un As citizens of local municipalities let us take housing surveys of 1934 and 1935 programme fédéral substantiel d'aide to heart the warnings and good advice respectively. The reports of these surveys aux logements à loyer modique, en recently tendered by the Canadian Bankers' argued that subsidized housing for low- créant des programmes qui servent à Association to exorcise administrative waste income families should become a stimuler la construction et la vente de and reduce borrowings to a minimum.5 government responsibility. The Montreal nouvelles maisons. Travaillant en étroite report concluded that "the provision of low consultation avec les représentants des Under conditions of prosperity such as those rental housing" would tend "to reduce under• institutions de prêts hypothécaires, that existed in the short-lived boom in home nourishment, tuberculosis, hospitalization, notamment avec d'Arcy Leonard et construction from 1923 to 1929, Clark would destitution, with their attendant social costs, David Mansur, alors vérificateur des never have encouraged any housing and to release woking class purchasing hypothèques à la Sun Life et par la legislation. But with the depression's creation power for other necessities, comforts, and suite président de la Société centrale of a widespread social housing movement, conveniences of life."7 The Toronto survey's d'hypothéqués et de logement, Clark he was motivated to draft legislation that report, named in honour of Lieutenant réussit à établir une alliance entire les actually strengthened his market-oriented Governor Sir Herbert Bruce, who intérêts immobilers, les entrepeneurs, les objectives and did nothing for the original encouraged social housing, reached similar compagnies d'assurance-vie et les concerns of reformers. conclusions. It "urged on the Dominion entreprises de matériaux de base, Government," that "no public work grants" notamment les détaillants de bois de With mortgage institutions directly threatened were as "urgently needed" as those "for the construction. Cette alliance remporte by increasing public calls for social housing, rehousing of the poorest members of the sur les partisans du logement public: Clark was able to defuse a growing public community." Largely written by Toronto syndicats, grandes compagnies de movement through his ingenuity in drafting architect Eric Arthur and professor of social construction, architectes, travailleurs the Dominion Housing Act of 1935. The work Harry Cassidy, the report sociaux et urbanistes. Clark a movement for social housing had begun with recommended the creation of a national grandement contribué à la rédaction du the 1932 housing survey of Halifax and housing commission to provide grants to Dominion Housing Act de 1935 et à la culminated in the 1935 report of the House municipalities and provinces for low-rental Loi nationale sur Vhabitation de 1938 et of Commons housing committee. It was housing.8 1944. Toutes ces lois visent à développer nurtured by a diverse coalition of groups la construction de nouvelles habitations around the National Construction Council, Although it was not originally part of the familiales. Afin de museler la critique, which included contractors and related agenda of his "New Deal," Bennett was ces lois comportent également des building industries, both craft and industrial forced to agree to a parliamentary housing dispositions, fallacieuses et unions, architects, many municipal leaders, commission in February 1935 because of a inapplicables, en faveur des logements à urban planners, and social workers. The revolt by Conservative back-benchers, led by bon marché. Durant la seconde guerre NCC emerged out of a three-day conference former Toronto mayor T L Church. Church mondiale, Clark accepte à contrecoeur in February 1933 sponsored by the building quoted the Bruce Report extensively in a d'instaurer un contrôle du coût des contractors' organization, the Canadian parliamentary motion and observed that "a loyers ainsi qu'un programme fédéral Construction Association. Since its inception wave of emotion seems to be sweeping the de logements locatifs, mais il restreint in 1919 the CCA had welcomed government nation on the subject of slums."9 leur portée et voit à l'élimination stimulation of the housing industry and had progressive de ces programmes; David held pro-labour views that were unusually Reflecting the consensus of expert opinion in Mansur, son associé de longue date, enlightened for an employers' organization. the areas of planning, social work, and s'en charge. Le rôle de Clark est One of the NCC's first tasks was to send out architecture, the parliamentary committee également déterminant dans a questionnaire to its members, to boards of made a unanimous recommendation in l'élabouration déprogrammes trade, and to larger municipalities regarding favour of a national housing authority, which gouvernementaux qui favorisent les the benefits of certain public construction would build its own projects and lend at plans de développement urbain des projects. Although not on the NCC's initial list, favourable terms to municipalities for low- grands constructeurs résidentiels. public housing soon appeared on many rental projects. From the time of the release 6 replies. of its report on 16 April 1935 to the introduction in the Commons of the The most important results of the NCC's Dominion Housing Act on 24 June 1935, concerns were the Montreal and Toronto Clark would, with his usual intensity, work to

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produce national housing legislation that negotiations between the two men took place low-rental accommodation. Although an would strengthen the private market. between the 2nd and 6th of June, shortly Economic Council of Canada Act was before it was introduced in the Commons on passed as part of Bennett's "New Deal," in Clark approached the drafting of national 24 June 1935. A last minute change the 1935 parliamentary session, the prime housing legislation in terms of the best deal obtained by Leonard allowed companies to minister did not get around to making that could be struck between himself and the grant first mortgages for less than 60 per appointments. If he had, Clark's influence in Dominion Mortgage and Investment cent of a home's value, thus reflecting housing matters would have been Association, which represented most regional customs of the lending institutions, considerably curtailed. The ECC's proposed institutional mortgage lenders. He took the especially in the Montreal district, to require housing sub-committee, as suggested by attitude that the government should "make larger down payments. Leonard also warned Bennett's executive assistant, R. K. use of private lending agencies instead of Clark that there would be many localities Finlayson, read like a roster of the nation's driving them out of business."10 The where DMIA "institutions do not operate and leading advocates of public housing: the association's president, D'Arcy Leonard, saw others where they would not recommend president of the All Canadian Labour dangers inherent in public housing. He operating." Because of his pleasure with the Congress, A. R. Mosher; leading urban feared the threat it posed "of bringing down final act, Leonard sent Clark a supportive planner Noulan Cauchon; Ontario farm and the rental values" of working-class housing. telegram to be read during debate of the bill co-op leader W. C. Good; architect Percy Clark and Leonard shared the belief that in the House of Commons.12 Nobbs; J. C. Reilly of the Canadian federal housing legislation should encourage Construction Association; and professional 14 the maximum use of both public and private The difficulty in providing the joint leaders in engineering and architecture. investment to stimulate new residential government-lending institution loans became construction. Leonard believed that although evident during discussions over DHA interest In defeating proposals for low-rental housing, the DMIA companies had at least $25 million rates. Since in some areas lending Clark had acted in accordance with his "which they would like to get out on new institutions obtained 7 to 9 per cent interest desire to work with lending institutions; his construction in Canada," this money was not on their mortgages, the application of the opposition to a solution to unemployment, being made available because mortgage DHA would cause their rates of return in based on an increase in public expenditure, companies could not legally provide a these regions to be reduced. Clark told and a desire to maintain the housing market mortgage worth more than 60 per cent of a assembled DMIA representatives that the as an area for private investment. He saw home's value and "not many people" could regional differential interest rate they wanted the legislation as allowing "the federal dollar" afford a 40 per cent down payment on a "was politically impossible." In response, to "do as much as possible." He told Mansur home.11 Mansur, now inspector of mortgages for Sun that this would be accomplished "most Life, said that "very few loans would be made effectively" by "the building of high cost The Dominion Housing Act of 1935 was in areas which are residential^ as hazardous houses" rather than by "the building of low drafted by Clark and Leonard to meet the as northern Ontario." Indeed in its first year of cost houses."15 Clark's tendency to problem of stimulating the mortgage market operation the DHA was confined largely to encourage government aid to home building by allowing lower down payments and by exclusive upper-class suburban areas of the for the wealthy shows how strong his providing a system of equal monthly major metropolitan centres of Ontario and opposition continued to be regarding installments of blended principal and interest. Quebec. Even by the end of World War II joint acceptance of the principle of low cost, This was of assistance only to the relatively loans would remain largely absent from subsidized rental housing. high income groups of Canadians in northern Ontario, the interior of British enabling them to become homeowners. The Columbia, the rural prairies, and small towns Clark would continue to set housing policy government decreased the required down throughout the nation. From 1935 to 1945 not during the remainder of the depression under payment from 40 to 20 per cent by providing a single joint loan would be made in the Prime Minister Mackenzie King. The threat of a 20 per cent second mortgage at 3 per cent, entire province of Alberta because of lending alternative advice was eliminated when King lower than the 3.5 per cent rate at which it institution's hostility to the provincial Social repealed the Economic Council of Canada borrowed money. Lending institutions would Credit government.13 Act early in the 1936 session, before any set the rate for first mortgages at 6.6 per cent members were appointed. Clark's major so that the combined rate of interest to the The only provision for social housing in the political battle on housing matters would be borrower would be 5.5 per cent. It was a new DHA was the promise that Bennett's with King's answer to unemployment, the scheme that in Leonard's words to Clark was newly created Economic Council of Canada National Employment Commission. "very practical and fairly simple." The would further study appropriate action for Reflecting King's corporatist outlook, the

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commission was chaired by an enlightened assistance to private housing companies housing under the 1938 bill. At one point corporate magnate, Alfred Purvis, and had as whose returns are limited to a modest return F. W Nicolls, whom Clark had placed in vice-chairman, conservative construction on capital. Mansur attempted to sway charge of the Department of Finance's trades union leader, Tom Moore. Winnipeg mortgage and realty interests who National Housing Administration, reported viewed the project as a dangerous socialist how he had accomplished a great deal of Clark supported the NEC's only adopted experiment. He told the Sun Life inspector in "stalling" of Winnipeg public-husing recommendation, the Home Improvement Winnipeg, John Flanders, that Clark was proposals.21 The proposals had been Plan in 1936. This scheme involved no direct "particularly anxious to arrange some such rejected because their costs per unit violated government expenditure, only loan scheme" aimed at avoiding "the necessity of the Department of Finance's limits.22 In 1940 guarantees. Even its advertising budget was bringing in further legislation to provide for Clark presented an impossible list of tasks to paid for by Purvis' soliciting from his real low cost housing and slum clearance." be finished in 11 days to the Nova Scotia colleagues in the business community. In the Clark, Mansur, and Winnipeg alderman R. A. Housing Commission chairman S. H. Prince area of low-rental housing the conflict Sara met in Ottawa during August of 1937 to for Halifax to meet the 31 March deadline for reached the level of political crisis when devise a limited-dividend scheme that would a low-rental housing agreement with the Purvis was reported to be on the verge of be acceptable to Winnipeg's property industry. federal government.23 resigning over the government's refusal to Nothing came of the proposal, in part adopt his public-housing proposals. because real estate interests felt that no Clark's initial response to World War II on Favourably impressed by the publicly assisted houses should "be built in housing matters was to disband all existing recommendations of the Bruce Report, Winnipeg until every house in that city for programs. In advocating this course he took Purvis even arranged a tour of Great Britain sale," had been "sold to a satisfactory the view that these programs should be for one of its authors, David Shepherd, to purchase."18 eliminated because the goal for which they assist the NEC in formulating its low-rental existed, the reduction of unemployment, had housing recommendations to the Legislation for low-rental housing was been achieved. Any further stimulation of the government.16 included in the National Housing Act of 1938, housing market would be a wasteful drain on which was part of the public works program the war effort. New residential construction, Clark succeeded in blocking the NEC's stimulated by the release of the NEC's final his memorandums invariably stressed, proposals for legislation on low-rental report. Clark's drafting of this legislation, should be delayed until after the war. Then housing for a year, until the publication of the however, made its provisions for low-rental the housing shortage encouraged by the commission's final report made further delay housing unworkable. Consequently, no cessation of residential building during the politically inexpedient. After wily delays by housing was actually built under the NHA's war years would prove to be an excellent Mackenzie King, the report was released on provisions for low-income shelter.19 contribution to post-war employment.24 5 April 1938. Clark told Finance Minister Charles Dunning that the direct subsidies Clark had been able to make legislative Clark was placed in an excellent position to proposed for public housing by the NEC provisions for low-income housing influence wartime housing policy by his represented a dangerous "radical innovation inoperative in the 1938 Act by making major chairmanship of the Economic Advisory in government programs in Canada." He revisions to the program that had been Committee at its critical meeting on 15 rejected the commission's assumptions that suggested by the NEC. These placed October 1940. After only a "brief discussion," Canadian families had incomes too low to heavier burdens on the provinces and the committee accepted Clark's arguments "enable them to pay the ordinary economic municipalities, maximized red tape, and set that the continuation of the Home cost of necessary family shelter." Clark also standards that Clark was fully aware could Improvement Plan would be harmful since it downplayed the severity of the not be met. He set maximum cost ceilings simply encouraged "much unessential repair unemployment crisis. He told Dunning that per unit below the level he estimated would and improvement work." At this meeting the "many on relief do not want jobs now."17 be required for new housing units. He added EAC also accepted Clark's advice for the provisions that required provincial termination of the NHA joint-loan scheme. In order to show that alternatives to public guarantees of municipal efforts and limited This was later reversed, however, after the housing were possible, Clark encouraged a municipal taxation of housing projects to one decision caused a storm of protest from limited-dividend project in Winnipeg, in 1937. per cent of their construction costs, which mortgage and building supply companies, Limited-dividend housing is an approach greatly discouraged the use of the particularly retail lumber dealers, who 20 25 which attempts to avoid the need for legislation. He gave little assistance to benefited from the program. subsidized housing through government municipalities attempting to build public

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Clark was fully aware of the hardship his Although the placing of Wartime Housing policies would cause. He was, however, Limited under the Ministry of Munitions and convinced that "Canada must accept an Supply freed it from Clark's rigid ideological increasing amount of 'doubling up' and supervision, the move set the stage for overcrowding in existing housing units with conflict over housing policy for the remainder all the social disadvantages which are of the war years. Basically, conflict over thereby involved." Such "lowering housing housing policy would take place along lines standards" were part of "the price of war." similar to those of the disputes of the The cabinet was duly warned by Clark that it depression period. Clark's principal "should not gloss over" the evils (i.e. adversaries on housing policy in the hardships) and public criticism that would depression, the Canadian Construction inevitably follow a cessation of home Association, now had many of their leaders 26 construction. well placed in government positions, The Honourable J. L. Ilsley, Minister of Finance including the president of Wartime Housing, (Canadian Business, 1944) In February 1941 he accepted the creation Joseph Pigott, and the vice-president, William of a crown corporation for home Summerville. Pigott attempted to push for a construction, Wartime Housing Limited, after permanent program of public housing to socialization of all our housing." The he became suspicious of the construction of serve as a stabilizer of the residential agreement was, he cautioned, "in a nutshell," houses for workers at government war construction industry. Such a program he the dangerous "New Zealand plan of wide plants. He complained to Angus L. hoped, would both ease the housing scale state-owned housing for low income MacDonald, acting minister of munitions and shortage and lower construction costs by groups."32 On 9 November 1942 Clark hastily supply, that "the present national war moderating labour's wage demands through informed Wartime Prices and Trade Board interest" had suffered "by too much the promise of secure employment chairman Donald Gordon that he feared architectural refinement" and "too expensive opportunities.30 DeMara's alarming memo reflected "pretty a type of construction." He distrusted the accurately" the views held by Pigott. After a influence of architects who sought "to plan Clark and Pigott were clearly headed on a critical meeting between the minister of garden villages, introduce special trim, collision course over housing policy. A major munitions and supply (C. D. Howe) the special doors, special roofs, special porches, dispute broke out when Pigott tried to minister of finance (J. L Ilsley), Gordon, all of which increases expense."27 negotiate an agreement with the city of Clark, Pigott, and V\èrtime Housing's general Hamilton for a wartime housing project manager (Victor Goggin), severe controls Clark suggested a number of alternatives to geared to meeting the needs of low-income were placed on Wartime Housing to keep it government-constructed housing for families. Pigott had chosen Hamilton carefully out of competition with private enterprise. A munitions workers. He suggested the use of as a beginning point for his plans; it had a Housing Co-ordinating Committee, "bunk houses.Jn mining, paper and other severe emergency shelter problem, with 130 established in early December 1942 industrial towns." The families of workers children and their families living in an old shirt composed of representatives from several could "easily remain in their home localities" factory. A draft agreement between Wartime federal departments, was established to and "thus facilitate the post-war return of Housing and the city had the corporation screen new Wartime Housing projects. To population to its pre-war domicile." He lending money to Hamilton at 3 per cent prevent a repeat of the Hamilton project's advocated "filling up existing vacancies, interest for the construction of 300 subsidies, all proposals would include "a such as they are, by encouraging the taking permanent homes. These would be rented at budget for the financing of the project." in of lodgers and by conversion of older $24 a month to families with a severe need Wartime Housing's task of initiating housing 31 houses to give more dwelling units."28 He of shelter. studies of community shelter problems was also envisioned a system of subsidized transferred to a newly created office of the transit to move workers to homes in areas The Hamilton agreement quickly created an real property controller created at the same that had higher vacancy rates. After Clark's uproar among Ontario lumber dealers, real time. Placed in the V\àrtime Prices and Trade own National Housing Administration began estate agents, small residential builders, Board, this controller was also to survey the to press for a crown corporation because the mortgage companies, and their allies in existing housing stock and institute housing shortage was hurting the war effort, government. On 2 November 1942 federal campaigns to persuade home owners to the federal cabinet created Wartime Housing rentals administrator Cyril DeMara warned take in more lodgers and rent more rooms.33 Limited on 24 February 1941 » that Pigott's plan would encourage "the

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In late December 1942 Pigott told Wartime families had to be divided because of the income group. This made it difficult to obtain Housing's board of directors how Clark had inability to find shelter for them. Shelters in directors for the project. The Liberal publisher effectively opposed his housing plans. He Halifax and Quebec City stopped publicizing of the Montreal Star, J.M. McConnell, took the informed his board that their suggestion had their efforts after they became swamped view that the scheme was a dishonest been rejected "because of the attitude of Dr. trying to find homes for families who had "gesture towards placating those who are Clark." He felt there "was nothing we could already applied for shelter. In Montreal clamouring for immediate housing relief." He do" in the face of the attitude of the considerable embarrassment was caused by also did not want "any committee of private Department of Finance.34 the delay in opening the housing registry citizens" to assume responsibility for building because the city's housing shortage made it homes along Clark's preferred lines with their With the creation of the office of real property difficult to obtain the needed stenographers.36 "out-dated method of heating by stoves," controller and the Housing Co-ordinating On 24 September 1943 Smart told Donald which he believed posed an "ever present Committee, Clark had effectively secured the Gordon that the housing shortage had fire hazard."38 Clark did succeed in influence of his views on housing policy, developed to "the point where it will seriously persuading the president of the Bank of which had been diminished by the creation interfere with the war effort and be likely to Montreal, G. M. Spinny, to assume and activities of Wartime Housing. His produce a social or political disturbance." As responsibility for the project. Spinny's disputes with Wartime Housing had clarified a first step to reversing this situation he urged directors also concluded that stoves for his sense of the proper direction for Gordon to press for a major Wartime Housing heating were a "retrograde step." However, government policy. He told the deputy project for Montreal, which he hoped would after they agreed to install central heating, minister of munitions and supply, A. K. serve as a model for other cities. Gordon fully estimates of cost had to be increased by 10 Shields, that "doubling-up was a way of backed Smart's recommendations and they per cent. Spinny told Clark that this caused making the necessary savings to prevent would not be as easily dismissed as Pigott's their plan to become "completely outside the civilians from sabotaging the war effort." He proposed Hamilton agreement. Consequently original orbit of low rental housing." also stressed that "the deferment of this in November 1943 Clark cagily used a Consequently, in September 1944 the construction of permanent housing until after limited-dividend proposal to put calls for directors agreed to terminate the project.39 the war" would "make a fine contribution to public housing in a dead-end direction, as he the support of the business structure and had done successfully in Winnipeg with the When Spinny told Clark on 9 September of improvement in the post-war years."35 NEC's recommendations in 1938.37 his directors' decision, King's government was placed in an awkward situation. Spinny's Clark's vision of using a curtailment of efforts during 1944 delayed what Smart had wartime housing production as a boon to kept quiet during 1943, a government post-war prosperity, however, began to commitment to a long-term public-housing become seriously challenged when in program. Spinny's failure took place less than September 1943 the man appointed to carry a month after the passage of the National out this policy, real property controller Russell Housing Act of 1944, in which Clark placed a Smart, himself began advocating politics that limited-dividend clause, demonstrated to be were essentially the same as the heretical unworkable, as the sole housing program for views of Pigott. Although a man of socialist two-thirds of the nation's population. sympathies, as witnessed by his pre-war Consequently, he waited for almost a month support for the League for Social to give Finance Minister llsley a copy of Reconstruction, Smart had attempted to Spinny's decision. When this was done, he promote Clark's policies vigorously. As Pigott urged llsley to take special pains in thanking had warned, Clark's surveys and campaigns Spinny to "avoid giving a formal reply in case had provided little additional housing. Instead production of correspondence is later asked 40 they served to demonstrate the severity of Clark put the directors of the Montreal for in the House." shortages and to arouse public opinion Limited Dividend Company in an impossible further on the issue. The registries set up to position. They would either build housing Clark wrote the National Housing Act of 1944 find the homeless shelter, established early in below the standards that the city's business in a manner similar to his drafting of the 1943, began to press for more housing and professional communities accepted as Dominion Housing Act of 1935. Both were construction as their waiting lists mounted. In minimal-quality accommodation, or they written through negotiations with Ottawa they reported that large numbers of would end up building for a restricted upper- representatives of the Dominion Mortgage

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and Investments Association in 1944. The result essentially liberalized the existing joint- loan program. Clark adopted their recommendations for reductions in down payments, an extension of the amortization period, and a reduction from 5.5 to 4.5 per cent in the interest rate charged to the borrower of NHA joint loans. Although the DMIA itself no longer opposed public housing, recognizing it had been demonstrated as necessary "to provide proper housing for many families" in Europe, Great Britain, and the United States, Clark's Architect's sketch of ill-fated S pinny Limited-Dividend Housing Project, 1944 (Canadian Business, June 1944) opposition remained.41

In response to the 1942-3 work of the sub• committee (which dealt with housing and community planning) of the James Committee on post-war reconstruction, Clark instituted the family allowance program. The sub-committee had shown that housing subsidies were required so that the lower two-thirds of Canadian families who were renting could afford adequate shelter. Clark attempted to solve this problem by providing direct subsidies in the form of family allowances. The James Committee saw both shelter subsidies and family allowances as integral to its comprehensive program of income security. Clark seized upon family allowances as the critical remedy to post-war reconstruction. He told the cabinet that with "children's allowances on anything like an adequate scale" the federal government could avoid the need to finance "municipally constructed and municipally managed low rental projects."42

Towards the end of World War II the rigid dominance of Clark's views on housing policy came in for increasing criticism as housing shortages mounted with the return of veterans. Concern was widespread in the The Parkchester apartments, New York, were built by the Metropolitan Life Insurance Corporation and used by Department of \£terans' Affairs, the Wartime W. C. Clark as a model to encourage private capital investment in rental housing. (ArchitecturalForum, June 1939) Information Board, and the demobilization branches of the armed services. Housing shortages were playing havoc with the government's efforts to rehabilitate returned servicemen.43 The NHA's plans for limited- dividend housing continued to be fruitless.

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This led CD. Howe to conclude that their would in turn encourage their favourite the end of World War II, to stimulate the "workability" was "doubtful."44 Likewise, John builders to purchase "well-located" tracts of mortgage market, they originally did not Baldwin, secretary of the cabinet committee land for subdivisions.48 conceive the institution as necessary during on reconstruction, complained that despite the immediate post-war period. This rapidly the fact the "only solution" to the housing of A serious illness prevented Clark from changed as a result of the unrest over low-income groups was "some form of participating in the dramatic events that housing issues in July 1945. Mansur took limited subsidization," the Department of engulfed the government in controversy in much of the working of the legislation for the Finance still refused "to accept the principle the summer of 1945. As a result of new CMHC from the old Central Mortgage of government subsidy, or, of any widespread protests against evictions in July Bank Act. He told his Department of Finance government aid to municipalities in this 1945, a freeze on evictions of well-behaved colleagues that the "primary duty" of the new connection."45 Such concerns led to the tenants was imposed and Wartime Housing's corporation would be "finding ways and replacement of the purely regulatory Housing program of rental construction for veterans means for private enterprise to look after Co-ordinating Committee with the was greatly expanded. These moves led to needs in the economic (ie. unsubsidized) Interdepartmental Housing Committee. an important meeting in the Departmentof housing field." The corporation would even Unlike its predecessor, it had the ability to Finance on 24 July. That day the decisions measure its success "by the amount of initiate new housing policy proposals. It was on rent control and expanded direct federal activity not undertaken" by government chaired by W. C. Clark, who began the IHC's rental housing were being made. At the agencies "in the public housing field."51 first meeting, on 23 May 1945, with the meeting Mansur, Gordon, Mitchell Sharp observation that Canada was faced by "a (acting minister of finance), W.A. Mackintosh After Clark's recovery from illness he ceased grave national emergency" from the housing (associate deputy minister of finance), and to play the detailed supervisory role over shortage. In these extreme circumstances he William Anderson (National Housing Act housing matters characteristic of the decade agreed that Wartime Housing should be administrator) revived Clark's pre-war after the DHA of 1935. This task was "employed for a considerable extent during concept of a Central Mortgage Bank. This assumed by his subordinates in the the next few months building houses for would eventually take the form of what would Department of Finance. They effectively veterans."46 become the sole federal housing agency, the controlled CMHC's board of directors with Central Mortgage and Housing Corporation.49 the watchdog role falling primarily to Mitchell Clark used his chairmanship of the IHC to Sharp. Sharp's advice to Clark included an put forward one of his most cherished goals, CMHC took its shape from Clark's stillborn assessment of the possible political impact of the encouragement of large residential creation of the late depression years, the changes in housing policy on the Liberal developers who could build entire Central Mortgage Bank of Canada. This was government. In 1948 he warned Clark communities. This scheme, known as originally conceived as a mechanism by against Mansur's plans for a rental insurance Integrated Housing, provided bank loans to which a mortgage on a residential property scheme since he believed it "would not react housing corporations at 1 per cent below that was worth more than the home's market favourably on the government" if the plan, as interest rates. If the dwellings built under the value could be adjusted downwards in value. predicted, would prove to be "comparatively 52 scheme could not be sold, the government Although lending institutions could accept ineffective." Similarly Mackintosh wished to would purchase them on a cost-plus basis. such decreases in their asset for similarly spare CD. Howe political embarrassment Builders operating under Integrated Housing inflated farm mortgages they refused to over the "relatively minor matter" of NHA would also be given priorities for scarce consider home owners as deserving of the amendments dealing with limited-dividend 53 construction materials. Clark felt large land same treatment. Consequently, the Central housing. With his subordinates in firm developers encouraged under his proposal Mortgage Bank closed in 1940 a year after command of housing policy after Wartime would end the "higgledy-piggledy, piecemeal the legislation was forced through a reluctant Housing's integration into CMHC in 1946, and ugly development of our communities."47 Senate by King's government. A participant Clark left the details of housing policy to On 1 May 1945, the Canadian Bankers' with Clark in the drafting of the legislation and those who had demonstrated a similar Association and Clark had reviewed this the bank's only president was Clark's close outlook during many years of close proposal. Their acceptance came soon after associate Mansur, who then left Sun Life for association. Clark assured the bankers that the a career in public service that would culminate government would only select companies for in his drafting of the NHA of 1954.so Clark's final victory in an important civil the Integrated Housing scheme that had service dispute came when he defeated been approved by the banks through "a Although Mansur and Clark saw a need to Bank of Canada governor James Coyne thorough review of their clientele." The banks revive the Central Mortgage Bank towards when he attempted to terminate the joint-loan

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scheme during the Korean War. Coyne leader of the movement for social housing in 3 W. C Clark and J. L. Kingston, The argued that the scheme was an Canada, he actually wrote Clark to seek Skyscraper: A Study in the Economic unnecessary drain on the war effort doing advice in how to move Canadian housing Heights of Modern Office Buildings (New York: American Institute of Steel nothing to encourage the building of homes policy in a more socially sensitive direction, Construction, 1930), 4-74, 81, 82,127,150, where they were needed to house munitions oblivious to the fact that Clark was the very 151. workers. He also believed joint loans architect of what he opposed.58 undermined federal fiscal and monetary 4 Porter, Mosaic, 452-8 policy. Coyne argued that government funds The views of Clark and Carver on s W. C Clark, "What's Work With Us," Address for housing should be restricted to assist the architecture reveal their conflicting ideals for to the Professional Institute of the Civil construction of rental accommodation which the Canadian city. The former's emerged Service of Canada, December 1931 ; W. C could "facilitate an expansion of employment triumphant, in part, because of his more Clark, "Regularization of National Demand in defence industries."54 Clark emerged profound knowledge of social reality. Carver for Labour by Government Employment," triumphant after he, Mansur, and Coyne met dreamed of public-housing projects with high Paper given to the International Assocaition of Public Employment Services, both in to discuss this issue in January 1951. He levels of amenities and beautifully Public Archives of Canada (hereafter PAC), had successfully argued that NHÂ joint loans landscaped grounds, but he failed to RG 19, Vol. 3993 raised standards in home construction and understand the major changes in Canadian that termination of the program would leave society required to bring about such urban 6 "Plan to Revive the Construction Industry," the government "open to the charge of development. Clark, in contrast, shaped his Journal of the Royal Architectural Institute of Canada (hereafter JRAIC), 9 (1932), 256; disregarding the small man if things were left visions of the urban future to the profit 55 "Component Parts of Construction Council entirely to private enterprise." motives of private investors, which required Organize Permanent Council," JRAIC, 10 no social change. He was able to push this (1933), 96; J. H. Craig, "What Can Be Clark's influence on federal housing vision through the federal government, not Learned from State Housing in Great Britain legislation and administration made him the only because of his prominent position in the and the United States?" JRAIC, 11 (1935), 79-81 ; "National Survey of Housing Needs federal civil service but also because of his foremost shaper of what economist James Planned," Canadian Engineer (1935): 13; "A Lorimer has characterized as the "corporate ability to incorporate, at least on paper, the Plan to Revive the Construction Industry," city," marked by the importance of large land views of his more progressive critics. JRAIC, 10 (1933), 25-32; Walter Van Nus, development companies in shaping new "The Plan Makers and the City: Architects, urban construction.56 Clark's vision of the Engineers, Surveyors and Urban Planning in Canada, 1890-1939" PhD thesis, University future was complimentary to the balance of Toronto, 1975), 125-6. sheets of important real estate and financial Notes interests, who recognized, as Clark did, that 7 Montreal Board of Trade, Civic Improvement the corporate city would favour obtaining 1 L. B. Smith, Anatomy of a Crisis, (Vancouver: League, A Report on Housing and Slum maximum returns from the capitalization of The Fraser Institute, 1977), 9-10. Smith's Clearance for Montreal (Montreal: Montreal urban land. His success in marshalling the affinity to Clark is even more apparent by Board of Trade, 1935) in PAC, RG 19, Vol. 706, File 203-1 A, 5, 21,22. powers of government to his urban vision what he omits from his glowing praise of "Pre-1954 Demand Policies." No mention is 8 was embodied not only in the private market made of the programs that Clark opposed, Report of the Lieutenant-Governor's mission of the CMHC but also in the design such as the munitions' workers and Committee on Housing Conditions in of its head office. It was built, as Humphrey veterans' housing programs of Wartime Toronto (Toronto: Toronto Board of Control, Carver, a civil servant critical of the CMHC, Housing. 1934), 44-112. recalled, "in a red-brick American colonial 9 2 John Porter, The Vertical Mosaic (Toronto: Canada, House of Commons, Debates, style, looking not unlike a glorified Howard University of Toronto Press, 1965), 452-8; 1935, Vol. 1,153-62. Johnson's highway restaurant." This was Edmund Bradwin, The Bunkhouse Men: A 10 done to meet Mansur's desire that the Study of Work and Pay in the Camps of Canada, Parliamentary Committee on building "look like the head office of an Canada 1903 -14,1928: (Toronto: University Housing, Minutes of Proceedings and insurance company."57 Carver's dislike of the of Toronto Press, 1972), 12; James Evidence of Special Committee on Housing, Struthers, No Fault of Their Own: (Ottawa: King's Printer, 1935), 354-7. architectural style of CMHC's head office Unemployment and the Canadian Welfare reflected his disagreement with the business- State, 1914-1941, (Toronto: University of " Ibid, 334-51. oriented thrust of its policies. However, he Toronto Press, 1983), 20, 21,41. never became aware of the extent to which Clark had shaped these policies. While a

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12 Letter from T. D. Leonard to W. C. Clark, 2 24 See especially W. C. Clark, Report of the 48 W. C. Clark, "Memorandum No. 2, Re: June 1935; Cable from Leonard to Clark, 25 Economic Advisory Committee on Housing Integrated Housing Developments," in PAC, June 1935, both in PAC, RG 19, Vol. 705, File Policy, 13 Nov. 1940, in PAC, RG 19, RG 19, Vol. 4017; "Housing: Extracts From 203-1 A; Canada, House of Commons Vol. 3890. Replies of the Banks" in PAC, RG 19, Debates, 1935, Vol. 4, 3771-73, Vol. 3539. 25 See for example, W. C. Clark to A. K. Shiels, 13 Letter from D. B. Mansur to W. C. Clark, 6 30 Aug. 1941, in PAC, RG 19, Vol. 715, File 49 Letter from David Mansur to W. A. July 1937, in PAC, RG 19, Vol. 710, File 203- 203C-11, and Minutes of Wartime Housing Mackintosh, 30 July 1945, in PAC, RG 64, 1 A, 51 -100, 4; "Memorandum to Mr. W. C. Executive Board, in PAC, RG 83, Vol. 70, Vol. 700. Clark from F. W. Nicolls - The Lending Book 1. Institutions' reaction to the Dominion 50 Alvin Finkel, Business and Social Reform in Housing Act, 1935," in PAC, RG 19, Vol. 706, 26 W. C. Clark, "Report of the Economic the Thirties (Toronto: James Lorimer, 1979), File 203-1 A. Advisory Committee on Housing Policy," 4, 109-12; the lending institutions' views were 5, in PAC, RG 19, Vol. 3890. well expressed by the Conservative 14 "Committee on Housing," in PAC, R. B. members of the Senate. See Canada, Bennett papers, MG 26 K, F.A. 434, 525484. 27 "Memorandum for the Economic Advisory Senate, Debates, 1939, Vol. 1, 577-585. Committee of Wartime Housing Policy" in 15 "Memorandum from David B. Mansur to PAC, RG 19, Vol. 3890. 51 Mansur to Mackintosh, 30 July 1945, in PAC, Arthur Purvis re: Dominion Housing Act - RG 64, Vol. 700. 1935"; Letter from W. C. Clark to D. B. 2s ibid. Mansur, 10 Aug. 1936, both in PAC, RG 19, 52 "Memorandum to Dr. Clark Re: Housing Vol. 711, File 203-22. 29 Letter from F. W. Nichols to J. L. Ilsley, 8 May Proposals, November 26,1947," in PAC, RG 1942; "Memorandum to the Honourable J. L. 19, Vol. 727, "Memorandum to Dr. Clark, 16 Low Cost Housing Diary, D. Shepherd, Ilsley and Dr. W. C. Clark from F. W. Nichols," January 16,1948," in PAC, RG 19, Vol. 3980. Housing Consultant, in PAC, RG 27, both in PAC, RG 19, Vol. 704, File 203-1 A. ^ Vol. 3356, File 12. 53 "Memorandum to Dr. Clark, January 16, 30 Pigott's views are neatly summarized by a 1948," in PAC, RG19,Vol. 3980. 17 "Memorandum to Mr. Dunning, re: Low civic servant from the real estate industry Rental Housing Program, March 7,1937" who found them to be "far reaching and 54 Letter from R. H. Winters to Louis St Laurent, and attached "Low Rental Housing Program rather startling." See "Inter-office 12 Jan. 1951 ; "Memorandum for Mr. N. A. Summary of Criticisms" in PAC, RG 19, correspondence from Rentals Administrator, Robertson, January 13,1951," both in PAC, Vol. 3888 Cyril R. DeMara to Assistant Secretary of RG2, Ser. 1, Vol. 163; J. E.Coyne, Wartime Prices and Trade Board, R. C. Carr" "Mortgage Lending by CMHC," in PAC, 18 Copy of letter from D. B, Mansur to J. A. in PAC, RG 19, Vol. 3890, File H-1. RG 19, Vol. 3439. Flanders, 14 June 1937; Letter from R. A. Ford to W. C. Clark, 31 Aug. 1937, both in 31 Minutes of Wartime Housing National 55 "Memorandum for Mr. N. A. Robertson, PAC, RG 19. Vol, 3435. Executive Committee in PAC, RG 83, Vol. 70, January 13,1954," in PAC, RG 2, Ser. 11, Book 1. Vol.163. 19 "Act to promote Slum Clearance and Assist the Construction of Low Rental Housing"; 32 DeMara to Carr in PAC, RG 19, Vol, 3890, 56 James Lorimer, The Developers, (Toronto: "National Employment Commission Low File H-1. James Lorimer, 1978), 77-9. Rental Housing Proposal, February 3,1937," 57 both in PAC, RG 19, Vol. 3388, File 1 ; W. C. 33 Letter from W. C. Clark to Donald Gordon, 9 Humphrey Carver, Compassionate Clark, "A Low Rental Housing Program Nov. 1942, in PAC, RG 19, Vol. 3980; Letter Landscape, (Toronto: University of Toronto Summary of Criticisms" in PAC, RG 19, from C. D. Howe to J. L. Ilsley, 2 Nov, 1942, Press, 1975), 112. Vol. 3435; Canada, Statutes, 1939, 358-64. The ban on new Wartime Housing projects was so severe that it even extended to the se Letter from H. M. Carver to W. C. Clark, 17 20 ibid. heavily congested city of Halifax. See C. D. Aug. 1939 in PAC, RG 19, Vol. 709. Howe to J. L Ilsley, 7 Dec. 1942 in PAC, 21 "Memorandum to Mr. Ralston from W. C. RG 19, Vol. 645. Clark," in PAC, RG 19, Vol. 2679. 34 Minutes of Wartime Housing National 22 Winnipeg Housing Survey in PAC, RG 19, Executive Committee, in PAC, RG 83, Vol. 716, File 203,1-15. Vol. 70, Book 1.

23 Letter from W. C. Clark to L. H. Prince, 20 35 Letter from W. C. Clark to A, K. Shiels, 30 March 1946; Letter from Prince to Clark, 26 Aug. 1941, in PAC, RG 19, Vol, 6425. April 1940, both in PAC, RG 19, Vol. 706, File 203-1 A.

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36 Monthly Reports of Housing Registries, March to August 1943, in PAC, RG 64, Vol. 699.

37 "Memorandum on the Housing Situation in Canada as of May 24,1943, from Russel Smart to Donald Gordon," in PAC, RG 64, Vol. 699; "Memorandum, November 19, 1943, Smart to Gordon re: Housing Policy," in PAC, RG 19, Vol. 714, File 203-C, Vol. 1 ; Letter from Donald Gordon to J. L. Ilsley, 25 Feb. 1944, in PAC, RG 19, Vol. 3980.

3s Letter from J. W. McConnell to J. L. Ilsley, 20 Nov. 1943; Letter from Ilsley to McConnell, 25 Nov. 1943, in PAC, RG 19, Vol. 3980.

39 G. W. Spinny, "Private and Confidential memorandum for the Honourable J. L. Ilsley," 9 Sept. 1944, in PAC, RG 19, Vol. 3980.

40 "Memorandum to Mr. Ilsley, Re: Montreal Housing Project," from W. C. Clark, in PAC, RG 19, Vol.3980.

41 Dominion Mortgage and Investment Association Brief, "Housing in Relation to Post-War Reconstruction," 24 Feb. 1944, in PAC, RG 19, Vol. 3980, File "Housing."

42 W. C. Clark, Memorandum on Family Allowances, Ian Mackenzie Papers," cited in J. L. Granatstein, Canada's War, (Toronto: Oxford University Press, 1975), 281.

43 Minutes of the Twelfth Meeting of the Inter- Departmental Committee on Rehabilitation, 21 May 1945, in PAC, RG19, E3(1), Vol. 3586.

44 Letter from C. D. Howe to J. L. Ilsley, 24 Feb. 1945, in PAC, RG 19, Vol. 709.

45 Letter from J. R. Baldwin to M. W. Sharp, 11 May 1945, in PAC, RG 19, Vol. 359; Housing Statement of Government Policy in PAC, RG2, Ser. 18, Vol. 9.

46 Minutes of the First Meeting of the Inter- Departmental Housing Committee, 21 May 1945, in PAC, RG 19, Vol. 699.

47 W. C. Clark, "Proposal to Promote Integrated Housing Projects Through the Medium of Private Housing Corporations," in PAC, RG 19, Vol. 710, File 203-1A-12.

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