The New York herald., 1877-09-13
Comparison Of Our Banking System
With That Of Canada.
LIVELY DEBATE ON RESUMPTION.
Our Monetary System IN It's
Various Phases.
POST OFFICE SAVINGS BANKS

,.,,,.s q, N. American bankers Association, met
yesterday ncrnns. ~ eleven O'CLOCK Assoc'a'on
Hall FOURTH aven,e and rwerty.third street. ABOUT
two hundred bankers were on tho moor. The Conven.
t,or was called TO order by Mr.. Charles b. Hall, OF
Boston the president ofthe association he delivered
an address, OF which the following are mo man
points
Ibseye we have passed over .he bottom line Of this
ssnression O: spirits aud sbrinksge Of values. Tho
crops ali over country tnis year. which are the
smiles OF a DiviLo Providepec, are Immense anu
,verythipc not wanted by will be received ny other
countries who will pay for IT. giving as great gains
think you Will all agree with me when say that
.sperny the great business interests oil tho country
are beginning 10 move and improve wli' not antici-
pate the OF the Convcntion by discussing the
1uss,ions that will probably before 1t Tor your
action, hut you will permit me TO say that nope our
m bs s%cn sha 70 'ai ,n. eeos Of .p,
country, and especially TO the Congress OF the oaeu
States. .
lhink We some legislation, which you can indi.
cate that WILL in its good tne give us permanent
specie pay ymens iapplause); some legislation which
VIII remove the unequal and double taxation ol tho
banking Institutions oil the country, which Affecting
dscty and unustly The mercantile Interests OF the
whole country some legislation that Will remove for
ever the puisance act or taxing bank checks Witl,
ludcious leEslation and economy individuals ana
rs nation believe we shall move steadily onward
increasing III numbers, In wealth and prosperity
Lct all, IN whatever capacity we may act either
indviduals or as public officers DO al IN our power
% hasten that happy day. cloud applause')
DANGEROUS couSrEsrEir.
At the close of tho address despatch read,
which had been received from Philadelphia by MI j.
Trainer King, ono OF the editors OF tue Government
COUNTERFEIT Dctector
Mr.. Graham my agent and the cashier OF the Inter
rational Central Bank, OF Chicago, both telceraphed
me Yesterday evening concerning their discovery OF
new and very dangerous counterfeit $50 Treasury
note. After describing at length the marks which
would show the note 10 be forgery the despatch con-
rludes BY saying .It is the most dangerous counter
et ever issued and should be reported to the Convea
lion
dyuo fof
ytitutlon increasing the number Of members OF the
Executive Council from nine to twenty one, and pro-
vidng five shall constitute quorum, and the re-
port adopted.
Tho treasurer, Mr. George f. Baker, OF the First
National Bank OF New York, reported that the total
receipts OF the had been $l7,946 and the
expenses $2 I'll Outstanding bills for printing &C.,
amounting to 81 sOO and tho expenses OF the present
Convention would absorb the balance the treasury,
except about 81 ,0o0
ELECTION OFFICERS.
Messrs. Coleman Of Troy; Conant, OF Boston i;
Rnaun, of Philadelphia; Dcshler, OF Columbus, and
Murray, of Louisville. appointed committee TO
nominate officers OF the Association Vice President
Pennington, of the Newark City National Bank, was
placed in the cnair pending tho election. The CON-
nitee reported the following list, anu 1t WAS unan
mously adopted
rRxsIpKsr--Chares B. Hall, Boston National Bank,
Boston, Mass.
EXECUTIVE Couxcil--George $. Coe, president Am-
cricSn Exchange National Bank Of New York; James
Buell., president Importers and Traders National
SsIosal "a Bank Of Tloy y. r. Morton McMichaei. Jr,
cashier First National Bank OF Philadelphia, "a ). ..
Norris, president First National Bank oi Baltimore,
Nd Edward Tyler, cashier Suffolk Nationsi Bank OF
Boston, Mass. ;J. W. Lockwood cashier National Bank
Virginia. Richmond; J. D. Hayes vice-president
McrcpaIts and Manufacturers' Bank of Detro, Mich
L. ). Gage, cashier First National Bank Of Chicago,
SEcnErARY-Jamcs Buell., president Importers and
Traders National Bank, New York.
TnEAsuHER--George f. Baker, president First Ma
tIonal Bank, New YORK.
The vice presidents were reelected.
Mr. Hall. the president, brieny thanked the Convsn
Non Tor the honor OF his Reelection
ADDRESS FRANCIS HrNCKs
SIR Francis Kncks, President OF the Consolidated
Bank OF Canada, Montreal addressed the Convention
Is ioliows:-
hR. PRESIDENT GESrLgMES;-
Our Canadian banking system was modelled
na' 0s wnon sa.s were Vey
by the Legislature, with PAID UP capitals and
authority to issue notes redeemabie IN specie
On demand. The charters contained what was known
the doubo liability clause, each shareholder being
liable to the creditors Of the chartered banks TO an
equal TO his paid up stock. Iherc was small
bank aud the banks we're required to hold
per cent OF their capital ID government securities.
short time prior to the confederation OF The British
Provinces into the DOMINION ol Canada in 1867 an
attempt was mado BY the government to sub
a government paper lor that
OF the banks, aud Inducements were held out to the
chartered Danks TO surrender their right OF issue and
the government notes, which legal tonders.
The BANK OF Montreal alone accepted the terms pro-
posed by the government 10 the year 1863 the bank
charters expired and renewed attempt made To
compel the banks base their Issues on government
yecurities very much the plan under which the
National Bank Issues OF tho United States rcgu-
lated When the government proposition was sub
mited to Parliament iound that the opposition
to it, especially from the Province OF Ontar,o was
strong that would be impossible 10 carry the bil
fhnrn uif Al fnr lima
charters all renewed ior year. IL was during
the oil Parliament In 1859 that returned To
Cauada after absence OF about fourteen years IN the
West Indies 10 the service OF the Crown. The Minister
OF Finance, Sir John kose, had only few weeks
previously ntimatcd MS intention of withdraw NJ
from public c and leaving Canada to reside pcrina
uenty IN London. Other vacancies IN the govern
nent occurred about the same time, aud lew weeks
after my return TO Canada l was invited TO JOIN the
government. When consented to do SO was IN
hopes that Finance Department would be filled by
gentleman well qualified to deal with the bank iny
question the settlement OF which could not be post
poncd- When, however, the arrangements were com
plcted / became Minister OF Finance, Office which
[ had previously hlicd during a period Of seven
years terminating about dtsen years before the tmo
or nv resumngi Il. gave immediate attention 10 the
bank question: and alter copfcrrIng frankly with tho
representatives al the principal banks was able TO
nature measures which having been sanctioned by
ho First Minister and my other colleagues IN the gov
rDmonh were approved oil by Parliament and became
HISTORY OF rnI sorg SYSTEM
The Dominion note system Is SO connected with the
yankng acL which is general measure applicable 10
~ the chartered banks, that II VIII be convenient TO
,otics theIa together. Prior TO 1863 the government
ad full authority " issue notes OF all denominations,
nut IL had means OF circ culating them other than
tndor the then subs istng arrangement with the Bank
a Montreal which IL was desirable 10 terminate, rs
Ihe other banks were unwilling 10 concur IN H. pro
posed to the banks that they should consent to give
up their issues small notes under -. whch should
in future consist excusI;cly Of Dominion notes.
furthcr proposed that instead OF holding thor re-
serves exclusively In god they should hold ono.
hali, or never LEGS than one-third, In Dominion
notes. IL being understood tha. ihc government would
rot issue the denominations between 500 ana ~.
rhs government Oh us part agreed TO abandon the
ax on bank issues, sad also the requirement that
he banks sh0uld nod government securities 10 the
sxtont OF one-tenth oi their capital i may
observe nero mat the bank tho only
on posea upon ths banks by The Dominion Parlia
ucnt which never entertained for q moment Tie idea
of taxing bank deposits bank capital nor indeed,
am aware that such taxes are Imposed on any other
country but tho Cnitod Stses 1t must 10 borne In
mind Ihat The Canadian banks ara not required Ia
hold any special percentage OF their circulation and
aanosIs IN a rcserre Sislemcns NJ ado thiy 10