, 1869-05-18
1 PROPOSED "NAT1oNAL BANKING
SYSTEM FOB CANADA.

Mr.. Rose, the Finance Minister Of the
Dominion Of Canada, proposed in their
House Of Commons, on Friday Last, zesolu-
lions embracing new banking systcn, for
british America, modelled in many respects
upon our own National Banking system,
while free from some OF the objections
which yet attend ours, more By reason of
the depreciation in our national credit. than
on nccount Of any defects in the essential
features Of u11r system itself. The Cana
dams aim to have currency. uniform from
Newfoundland to Rzitish Columbia, the
bills Of which will circulate throughout the
dominion without regard to the province in
which they are issued; to make the sys-
tenn one Of absolute fres banking to all who
comply with The conditions Of the law,
which, with few triaing exceptions, are
the same in all the provinces; to maintain
their new paper currency ut par with specie,
though imposing no hxed LIMIT like ours
upon the quantity 10 he issued; and to
secure their banks against undue expau-
SONS, both in circulation and in deposits
ind discounts. The plan provides that no
new bank shall be chartered, nor the charter
vi any ensuing uxuk xenc~eu, eAIrps t- -
corl.ance with the new system The plan
is as follows Those banks wishing to is
sue circulating notes first buy Of the Do
,ninion, for gold or for Dominion notes, its
10 year = pe1 cent bonds, which it deposits
with the government as security for the re-
dsmption Of the hank notes they propose to
issue. Such notes are to he furnished, en-
eraved and ccunte1signed by the govern
ment, bat are to be the notes Of the bank
only. Provision is made fo- ultimately
retiring al the Dominion notes now out,
Int until this is done the bank notes are
| 1elecrnahle in either specie or Dominion
notes, and 20 long u they are 80 redeemed
thcy are legal tender throughout the Domin
i'm Any bank falling to redeem is adve,
tised and its assets pass into the hands o.
the Receiver General for tbs protection O
! its creditors. Each bank must hole
a reserve in specie or Dominic,
notes equal to twenty per cent o
its circulating notes and one-seveath Of al
| it's deposits On call, and its entire habitie
shall never exceed three times its capital
specie and Dominion notes The share
holders are liable for debts to twice h
amount of their stock. The provisions G
tie bin concerning the organization
banks present nothing remarkable. Tn
chief respects in which it dtfers from our
are, therefore, first, in the absence C
the limitation of the aggregate Of circr
lasing notes TO particular sum ($30O, 600
0ooJ. provision Ehnh hiss many concede
evils, and 70. which nobody would ooaten
were rot our currency, and the securisie
On which it is based, and the eorernmer
notes in which it ia redeernable, and ii
standard dollar Of account in the business
tranxcts, Al deprecated in value abos
one-fou1th relatively to gold: secondly,
requiring the paper currency to be r
deemable in specie, which We cannot y
do, because Of the sane reasons; third
in limiting the proportion in wh's
the Liabilities Of bank may =
coed It's capital, md the ratio which its d
j posits md discounts must bear to its
serves Of specie End government note
! The latt41 provisions, though not psss
: cur s5uem, have long been urged uPon o'
i kgislaton by sorne of our sblast 6nanci
! minds, and are evidently suggested BY u
exposure Of defects ii de working oS Q
. own system. Ths peeseat bAnki'