W. C. Clark and the Politics of Canadian Housing Policy, 1935-1952 John Bacher
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Document generated on 09/28/2021 9:10 a.m. 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: 5 Urban History Review/Revue d'histoire Urbaine Vol. XVII No. 1 (June 1988) Canadian Housing Policy, 1935-52 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.