The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1910-01-29

was issued the first of the important
series of financial monographs result
ing from the exhaustive investiga-
lions pursued in this country anC
abroad under the auspices of the Ma
tionaI Monetary commission-"The
History of Banking in Canada" by
ROeiiff NJ Breckenridge, whose work
on that subject, published some q
years ago. has long been recognized as
authoritive. This monograph gains
importance from the fact that the
Canadian banking system, with its
highly developed organization OF
branch banking. it's large freedom
of note issue, and its circulation-re-
demption fund, has for many years at
tracted attention in this country. Some
students of our banking problems have
advocated the adoption of similar ar
engagements in the United States, and
the National Monetary commission has
consequently made a comprehensive
investigation of the history and actual
operations of banking in Canada.
IN this monograph, issued by the
commission today, Mr.. Breckenridge
has brought the history of Canadian
banking down to the present time and
mas discussed fully the changes and
developments which have taken place
since the date of publication Of his
original volume The monograph is
rcplete with facts and statistics show
ing the growth and present condition
of the Canadian banks. .a
The banking system Of Canada, like
that of other countries, has been the
result of a process of evolution and ex
pertinent in the effort to establish
system that would meet local condi-
tions and requirements Mr. Brock
enridge traces this development from
the earliest efforts to introduce the
practice of banking into the British
North American provinces in the 18th
century to the most recent banking
legislation of 1903
The Dominion of Canada was organ
ICED in 1867 by the union of the various
thority over all matters pertaining to
banking, currency, coinage and cognate
dominion, conferred upon the Parlia-
ment of Canada. The separate pro-
subjects. and there is, therefore, only
one legislative body in the dominion
authorized to deal with banking ques-
tions, and there is only one type of
commercial bank. The problems of
banking there are not complicated as
they are with us. whore alongside Of
1000 banks. organized under national
laws there are some 1900 other in
S:iiutions organized under the vary
ing laws of the as states of The Tn
i0o.
After the enactment of certain pre-
iiminary legislation the Dominion
Parliament passed the bank act of
1871, which, with subsequent revi-
stons, now constitutes the fundamental
lazy of all banks doing business in
Canada. In a few cases special pro-
visions were made for banks doing
business under royal charters and for
few others where particular condi-
tions made the general act fnapplica-
bic
Mr.. Breckenridge shows that the
Canadian system is in many respects
similar to the Scotch banking system;
it is primarily and Fundamentally a
branch banking system. There are
TO-DAY. it appears, only % banks in
Canada, and 10 of that number have
their head offices in Toronto and Mon
treai. their branches. numbering more
than 2000, being distributed from the
Atlantic to the Pacific. into the Yu-
Son country, and even into foreign
countries. OF the parent banks. how
ever. there are not more than three
with head offices west of Ontario.
The authorized capital of any bank
organized since 1890 is required to
he at least $5O5,O3O, of which at least
S250,000 must be paid in cash before
the bank is authorized to commence
business. Each bank may issue its
notes. payable to bearer on demand
and intended for circu alton as money.
but the total amount of notes of any
bank i'll circulation could not, prior to
the amendment of 1908, exceed the
Hoimpaired paid-up capital of the
bank. BY the amendment of 1908.
which grew out of the emergency is
sues OF Dominion Cor government