Guarantee Act

The Railway Guarantee Act of 1849 was introduced in the Parliament of Canada West by Finance Minister Francis Hincks, who was also the President of the Great Western Railway of Canada. It empowered the Government to guarantee a rate of interest not exceeding six percent per annum on one half of the cost of any railway over 75 miles long, provided half the mileage had already been completed. The Government held a first mortgage against the railway under the Act.