New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-04
CANADA's BANKING LAWS.
CHANGES LIKELY TO BE SUGGESTED BY
THE DOMINION FINANCIERs.

Toronto Ont. Feb 8. (SpeciaD.-Of The public bust
coming before the Dominion Parliament In the
session which began Thursday there Is one item
that cannot be left That Is the revision OF ths
Bank act. II that legislation omitted the
banking system OF Canada would cease to be- The
charters of the thlrty-six banks expire on July l.
1901. and be extended only by renewal OF the
act. as except In the particulars Of Incorporation
corporate name. amount OF capital stock. value Of
shares and place Of business OF the several banks
the Bank act IS the charter of each. of them OF
course. its renewal might be deferred till the ses
sion of 1901, but that would be somewhat risky.
a long session might easily run past July l. and
the banks be left without any authority to do bus
mess.
The established practice has been TO get the
Bank in order in the last year OF decade
and the law is that the bank charters shall ter
inmate In the first year OF the next This rule does
not bar exceptional amendments in the Interim but
in 1890 there a comprehensive re-examna-
ton and some readjustment OF the act in the light
of the last ten years experience OF it's working
there is likely to be in 1900.
The amendments that are most likely to be in
corporated In the act will come from the Canadian
Bankers Association. which has had deputation
In Ottawa presenting its views 10 the Govern
ment. When the measure is before Parliament
there will be no lack OF suggestions from many
other quarters, and the unsound money advocate
the friend of the wage Garner and the farmer
Will be heard from. But the matured deliberate
cLIlucaI STUDY and practice of the law, will carry
One defect in the law has been made conspicu-
GUS within the last few months by the failure OF
La Banque Vile Marie and by the trials and in
designations that followed it. This is as to the i'm
portant matter OF control of circulation The Banque
culation by 100000. The act provides that the
TOTAL amount OF notes that any bank shall have in
clrculatlon at once is not to exceed the amount Of
Its unmpalred paid up capital and severe penalties
For an overissue so great as that of the Vile
Marie bank the fine would be 100000 In this case
ing pressed the Government 70 tbe duty of MIN
lShlnS the vile Marie culpritS, the Bankers AssO
eia t may be expected to see that the law is
When the Bank act was under revision in 1890
1t was pointed out that there should be some
bers of the House advocated the adoption of the
{ an system OF inspection TO this II was Cd
!eeted mat the branch system in Canada would not
citation attend the checking of the circulation.
This is not so unreasonable proposal on the
have to suffer if of their number transgresses
Zach bank has to keep deposited with the Govern
which is TO stand as fund for the redemption Of
pended This Fl fund fa to
S2,O56,34i, and the Government pays per cent
Marie bank notes Having to make good the
that the associated banks be allowed to scrutinze
the accounts of all TO see that none go beyond
Reserves are another matter on which there has
been much discussion In the act no reserve Is
reserve, but they will insist on a change In the
clause which provides that OF whatever cash re,
serves they do hold not less than 40 cent snail
| be in Dominion notes They object to supplying
| the Dominion Government with money free OF in
| terest, this expedient forces them to do
Several of the bankers. too feel that II is time
to make the period between renewals OF the act and
| Of charters twenty years instead of ten years.
Prosperity has made many changes In the views
to the banking law. Two years ago the ctrcu-
aton of bank averaged about $4,000 600 In
| December last IL amounted TO $45 1896, 753- The
deposits which were Considered em6arTasslngly
high at 500 $1,000 when opportunities for investing
theTo fev two
| In consequence of the good times many of the
| banks have reached the limit of their circulation
| and will have increase their capital in order TO
provide fof the larger issue Of notes business is
/ calling for