399 CHAPTER XIII. BANKS AND SAVINGS BANKS. of Carr be Canadian currency. 631. The denominations of money in the currency Canada were declared by the Act 34 Vic., chap. 4, to dollars, cents and mills, there being 100 cents in a dollar and 10 mills in a cent. By the same Act the British sovereign, as then coined, was declared to be legal tender for $4.863. gold coins. 632. Silver coins struck by order of Her Majesty for Silver and circulation in Canada, were declared to be legal tender to the amount of ten dollars, and copper coins, similarly struck, to the amount of twenty-five cents. The gold eagle of the United States was also declared to be legal tender for ten dollars, and multiples and halves of the same for proportionate sums. circula 633. The coins in circulation in Canada are silver fifty, Coins in twenty-five, twenty, ten and five cent pieces, and bronze tion. one cent pieces, all of which are struck in England. No twenty cent pieces have been coined for a considerable time, and they are gradually disappearing from circulation, Canada has no gold coinage of its own, but as stated above, British and American gold pieces pass current. currency. 634. The notes issued exclusively by the Government are Paper of the denominations $4, $2, $1, and twenty-five cents fractional paper currency, no bank in the Dominion being allowed to issue notes for a less sum than five dollars, or for any sum not being a multiple of five dollars. Acts and 635. The chartered and incorporated banks of the Dominion The Bank are regulated by the Bank Act, 34 Vic., chap. 5, and subse- principal provis ions. Capital paid up. Amount of notes quent amending Acts, by which it is provided, amongst other things, That at least one hundred thousand dollars of capital shall be bona fide paid up to the satisfaction of the Treasury Board before any incorporated bank shall commence busi ness. The amount of notes issued for circulation by any bank for circu- shall never exceed the amount of its unimpaired capital. under a penalty varying with the amount of such excess. lation. Part pay ment to be Any bank when making payment is compelled, if in Domin- requested, to pay the same or part thereof, not exceeding sixty dollars, in Dominion notes, for $1, $2 or $4 each. ion notes. Notes to be a first charge. Limit to dividend. Monthly returns. Propor The payment of notes issued by any bank for circulation shall be the first charge on its assets in case of insolvency. No dividends or bonus exceeding 8 per cent. per annum shall be paid by any bank, unless, after deducting all bad and doubtful debts, it has a reserve fund equal to at least twenty per cent. of its paid up capital. Monthly returns, certified by the President and General Manager, shall be made by every bank to the Government, according to the form and under the penalty provided by the Acts. Every bank shall, subject to a penalty, always hold at least Dominion half, if possible, of its cash revenues in Dominion notes, and never a less proportion than forty per cent. notes. Private Banks. No person, firm or company, other than a bank incorporated under the above Acts, may use the title of bank, banking company, banking house, banking association or banking institution, without adding the words "not incorporated." of incor Banks. 636. There were forty-one incorporated banks that made Number? returns to the Government on 30th June, 1887, distributed porated as follows: 13 in Ontario, 14 in Quebec, 9 in Nova Scotia, 3 in New Brunswick, and one each in Manitoba and British Columbia. The banks are assigned to the Provinces according to the situation of their head offices, but many of them have branches all over the Dominion. statement 637. The following is a comparative statement of the Bank assets and liabilities of the various banks in Canada, on the 1886 and 30th June, 1886 and 1887: BANK STATEMENT, 30TH JUNE, 1886 AND 1887. 1887. Proportions of The proportion of liabilities to assets was slightly larger in 1887, being 65 17 per cent. against 64:59 per cent. in 1886. The amount on deposit showed an increase of $1,700,186, discounts an increase of $6,704,138, almost identical with that of 1886 over 1885 which was $6,704,976. and overdue debts a decrease of $376,670. 638. The following statement shows the proportions of assets and the principal items of assets and liabilities to the total amounts in the years 1868, 1877 and 1887 :— liabilities. Rate of interest. Particulars of Canada 639. The rate of interest allowed on deposit by the banks is at present in most cases 4 per cent. 640. The next table gives the paid up capital, assets, Banks in liabilities, and other particulars of the various banks in operation in each year since Confederation, according to the returns made to the Government, as required by the Bank Acts: 1868-1887. 641. The number of banks that made returns to the Gov- Increase during the ernment on 30th June, 1868, was 27, being 14 less than in period. 1887, and the following are the proportions of increase under the several heads, between those years :-Increase in amount of paid up capital, 101 per cent; in notes in circulation, 266 per cent.; in amount on deposit, 249 per cent.; in liabilities, 241 per cent.; and in assets, 194 per cent. The proportion of liabilities to assets was higher in 1887 than in any other year, with the exception of 1882, and was lowest in 1877. fund. 642. The total amount of reserve held by the banks on Reserve the 30th June, 1887, was $17,600,297. No returns of this fund were made previous to 1883, when an amendment to the Bank Act, requiring them, was passed. |