New-York tribune., 1869-06-05
BANKS AND BANKING IN TIE NEW
DOMINION
lpRoN AN OCCASIONAL CORRESPONDENT


MONTREAL, May 23.-In the present session
OF the New Dominion Parliament steps are taking to as
simulate the monetary laws OF the four Provinces which
hitherto have not been Identical In Ontario and Que
bee has been the custom OF the Legislature 20 grant
charters Of incorporation to any persons Of good stand
ing who apply, giving them special privileges among
others that Of issuing bank notes Of any denomination
as a circulating medium. These notes are not legal
tender but they are payable IN gold demand at tho
place OF issue, and the character OF the banks Is such
that the bills held in equal estimation with gold. The
shareholders besides responsible to the holders OF
also accepts the notes OF all the others par The banks
are all obliged 20 hold ten per cent Of their paidup
jtal i'm Government securities They make monthly re-
turns to Government Of their assets aud liabilities aud
pay duty half yearly, AT the rate Of per cent per
an1um on the amount by which their average crcnla
ton exceeds the average OF specie and Government
curtes together There Is no tax upon stocks but bill
stamps have 70 DO imposed upon drafts, promissory
At tho last session of the Parliament Of the late
Province Of Canada act passed 10 provide for the
issue OF Provincial notes under which act the Govern
ment arranged with the Bank Of Montreal TO surrender
its circulation and issue instead the Of the Govern
ment, which legaender all parts Of the Dominion,
as long as they are redeemed In specie on demand at the
offices OF ISSUE which are established in Montreal and
Toronto and also 1 beleye, in Halifax and 81. John.
In the present session OF Parliament the Government
proposes to extend its Provincial note currency that
In this country nOw very few private bank bills will
9e in circulation; but tho Dominion bills are payable
In Ontario aud Quebec the banks charge seven gper
cent on their discounts which the legal rate Of inter
est they also charge per notes that pay
able elsewhere than at the place Of discount There is
also trfing charge for billstamps. In New.Bru
WICK charters have been granted In the two Western
provinces referred to- but the Government mposes mo
tax upon circulation OF stocks The banks there have TO
make returns OF their assets and liabilities to the Execu
i've In Nova Scotia the general system ia similar ex-
eept that the banks debaed by from Issuing
nOtes OF less denomination than G5 that $40 Provincial
currency Ihey make returns irregularly TO Government
y ther padup capital circulation etc In the two last
t,hhOVlhces ~ called tho "l0wer maritime provinces"
per cent on their discounts 49, - -
nc banks in general very sound and their stocks
a., le most part above par They pay dividends Of
uU,n % ~ ~ ana even II cent. the Bank of New.
nay !hg IN 1861 PAID the last dividend and a
stoSh % az l5l per cent IN consequence The banks
n%ON % HG t se amount OF legal tender notes instead OF
gold ts DenR found great convenience I'm ng hcr
mutual balances The Government is by law OBLIGED fo
hold gold 10 redeem s notes TO the extent Of onetb ~
the circuaton inc remainder being covered by debeD
lures" The paid up capital of all the banks amonntS IN
about S0OO0OO IN gOld and the specie and log1 rudcT
notes amount 10 $S50OOO0 an average Ts avcre 90
circulation Is about S95OOOOo The Government on s
lie Bank Of Montreal, capital GO0OOOO an rad mn nd
the largest banks here and Toronto yyLiio lilo
smallest arc Ia ST. John ana Halifax.