New-York tribune., 1906-10-21
DOMINION NOTES.
More Subsidies Sought for Provinces
Bank Disaster AUerted.

Ottawa. Oct 20 (SpeciaD.-The Canadian govern
ment has decided to apply to the imperial Pariia-
ment at Westminster for an amendment TO the
British North American act. under which the con-
federation of the Dominion consummated. by
which larger disbursement of subsidies from the
federal treasury will be allowed to the various
Provinces This decision reached result
of conference last week between the Premiers
of all the provinces and Sir Wilfrid Laurier and
his colleagues. At the time of the confederation
of the Canadian colonies each of the provinces was
allowed a fixed for legislation and. In addl-
tion to this a per capita grant of so cents year
based upon the population of the provinces as nxed
by the decennial census taken previous to confed-
Grafton. During the last fifteen or twenty years
the majority of the provinces have been crampeo
for funds and have been able to keep the craft
of state afioat only by borrowing money ana oy
selling each year large tracts of the public domain
TO the lumber merchants and others In the old
province of Quebec the lack of sufficient revenue
has been the severely felt. one result of the
scar ,ity of funds being that the educational con-
ditions in the province have reached deplorable
sta-e The salaries paid to school teachers nave
been low that in many instances none but IN
competent ones could be secured. With larger rev.
enue II is the declared intention of the Quebec gov
ernment to institute vigorous educational polcy'
with the idea of better equipping the hapltan' 10
hold his in the commercial world with Ms
Anglo Saxon competitors Altogether, the prov
inces viii get nearly three millions more federal
money than they have been receiving This VIII
be sufficient to make their hnancial pos11ion p ai
ing by leaps and bounds. Apart from tne SUBSIDY
course of the conference couple of matters OF
to other There IN has %ayf TO the
Of the d In ordeT 5o a
thorities. thor les respectively test case was submitted
to the Privy Council of England but the Judgment
tain a position as they were in before At the
Just closed II Was a asreeG rsd
tion over seacoast fisheries as well those fish
as those in the Great Lakes. while the provinces
will continue administer the fisheries of inland
sgeed ha nd the G Prc R
W he taxes a whch have in Years been
imposed upon commercial travellers from other
taxes have been received from the United States
and Great Britain. and the business men OF these
abolished when the legislatures meet.
splendid example of the elasticity of the
Canadian banking system. claimed by many to be
the best in the world. has been afforded this week
The Ontario Bank, old and supposedly safe in
stitution finding itself in difficulties owing to the
stock specuatons of its manager. appealed to the
Bank of Montreal, the greatest and safest OF
Canadian banks The result was that the bank
taken by the Montreal Bank FOR what 1t
was worth. and the announcement made that
the depositors would receive every cent of their
money, and that the notes in circulation would be
guaranteed by the other Canadian banks As
result of this announcement there no
run or any consequence on the bank or any OF It's
branches, which continued to do business usual.
under the direction OF the officials OF the bank of
Montreal The majority of the banks of the
Dominion signed guarantee of the Ontario Bank
and in the event of any final deficiency all banks
the guarantee will contribute in proportion to
their subscribed capital. AS result of the prompt
action of the other banks the only persons liable
to lose anything the shareholders. who. IN
spite of the fact that nearly the entire paid-up
stock of the bank has disappeared will probably
realize something their stock after all the la
bilities have been met. The secret of the safety
of the Canadian banking institutions lies IN the
fact that the banks have joint deposit of several
million dollars with the Dominion government
with which to guarantee the circulation of any
bank which may become involved IN financial diff
culties.