General Section XIV-FINANCIAL INTERESTS In his Budget speech, on March 14, 1901, the Minister of Finance gave a number of figures illustrating the condition of banking in Canada. On October 31, 1870, the circulation of Dominion notes had been $7,450,334; in 1895 it was $22,893,259; in 1900 it had risen to $28,113,229. The circulation of small notes ($1 and $2) rose from $3,489,830, on October 31, 1875, to $7,312,917 in 1895, and to $10,236,116 in 1900. The total circulation of the notes of Canadian Chartered Banks, on October 31, 1870, was $18,642,895; in 1895, $34,671,028; in 1900, $53,198,771. In the Government and Post Office Savings Banks there was, on June 30, 1870, the sum of $3,337,072; in 1885, $32,979,076; in 1895, $44,450,498; in 1900, $53,149,722. Public deposits in the Chartered Banks, on June 30, 1870, amounted to $54,074,760; in 1885 to $95,030,429; in 1895 to $182,688,227; in 1900 to $277,256,716. The following table is compiled from the Government returns of the dates indicated, and gives the statistics for 1901:— There are slight discrepancies between the total additions of these columns and the total of assets and liabilities given in the Government returns. It is a matter of several hundred dollars, and I have preferred to give the correct additions even though they do not tally with the official figures.-The Editor. Banking Incidents of the Year On January 2, 1901, in accordance with arrangements made and a decision arrived at by the special meeting of shareholders on December 11th, preceding, the business and establishment of the Bank of British Columbia were assumed by the Canadian Bank of Commerce-including branches or offices of that Institution at Victoria, Vancouver, Kamloops, Nanaimo, Nelson, New Westminster, Rossland and Sandon, in British Columbia; San Francisco, in California; Portland, in Oregon; and at London, England. The annual meeting of the Canadian Bank of Commerce was held at Toronto, on June 18th, and the General Manager, Mr. Byron E. Walker, in his address stated that the resources of the institution had increased from $22,596,520 in 1890 to $42,822,799 in 1900, and that during the fiscal year, just closed, they had risen to $67,553,578-partly as a result of the amalgamation with the Bank of British Columbia; partly because of generally increased business. The deposits assumed from the former institution were stated at $8,253,384. The Hon. George A. Cox was re-elected President and Mr. Robert Kilgour, Vice-President. Another banking change-though chiefly one in form-took place on January 2nd, when the Merchants Bank of Halifax assumed, by special Act of Parliament, the designation of Royal Bank of Canada. The similarity of its old name with those of two other institutions in Canada, and the desirability of having a designation with more general application for a Bank which had 14 branches in Nova Scotia, 9 in New Brunswick, 3 in Quebec, 1 in Ontario and 8 in British Columbia, were the reasons given for the change. On August 8th, the Toronto World started a discussion in its columns which lasted for some weeks upon the question raised by a Minnesota banker-Mr. C. D. Griffith, of Sleepy Eye-as to whether the American banking system was not better than the Canadian, and especially as to whether the branch system of the Dominion did not drain the country districts of money for use in urban centres. The controversy was academic in character but served to increase the faith of those who who already believed in the Canadian financial system. Mr. B. E. Walker was made one of the central figures of the discussion. Early in the year there was published a handsome volume recording the proceedings of special and general meetings and the annual balance sheets and other statements issued by the Imperial Bank of Canada from its establishment in 1875 up to, and including, the year 1900. During that period the institution had been under the general management of Mr. D. R. Wilkie, and its total Assets had increased from $3,129,000 to $20,308,000; its total Deposits from $1,576,000 to 14,137,000; its Current Loans from $2,131,000 to $11,289,000. About the same time the Bank of Nova Scotia published a volume tracing its history from 1832 up to 1900; dealing with the financial conditions in Nova Scotia during that time and giving its general statements for the 68 years in question-a period in which its total Assets rose from £85,868 to $11,429,000; its Deposits from £18,943 to $10,523,000; its Current Loans from £56,029 to $8,180,000. The annual meeting of the Canadian Bankers' Association was held in Montreal, on November 14th, and Mr. E. S. Clouston delivered a Presidential address reviewing the business operations of the year. He pointed out that since their last meeting public deposits in the Banks had advanced by $40,000,000 and the loans increased by $14,000,000. He hoped that, in promoting immigration, attention would be paid to quality rather than quantity, and that a fast Atlantic Line would soon be established. He was re-elected President, with Messrs. Thomas McDougall, Quebec Bank; Duncan Coulson, Bank of Toronto; H. Stikeman, Bank of British North America; and George Burns, Bank of Ottawa; as Vice-Presidents. Canadian Banks On January 31, 1901, the Bank of Montreal possessed Statistics of Assets amounting to $94,582,063. On December 31st they had increased to $113,106,149. Upon the former date the Assets included specie, $2,335,954, and Dominion notes, $3,278,246. Upon the latter date these figures were respectively $2,494,991 and $3,255,443. Railway and other debentures, bonds and stocks held, rose from $2,345,385 to $4,763,075. The call and short loans outside of Canada were $19,882,783 on January 31st, and $30,400,123 on December 31st. The current loans in Canada were, at these dates, respectively, $50,220,161 and $49,381,236. The current loans outside of Canada rose from $6,146,759 to $9,765,869. The total Liabilities on the dates mentioned were $74,140,654 and $92,653,634. They included a capital stock paid-up of $12,000,000, and a reserve fund of $7,000,000, which were unchanged during the year; notes in circulation which rose from $6,110,233 on January 31st to $7,704,018 on December 31st; deposits by the public, payable on demand, which were, respectively, $24,792,021 and $22,045,699; deposits, payable after notice, of $30,307,379 and $41,358,126 respectively; and deposits outside of Canada, which rose from $10,558,870 to $18,051,568. The following table affords a glance at the principal figures of the Canadian Chartered Banks-other than the Bank of Montreal-which possessed a capital of $1,000,000 or upwards on December 31, 1901 : $60,149,280 $6,953,357 $42,449,437 $8,000,000 15,766,466 6,000,000 2,500,000 21,864,972 16,742,524 3,245,640 11,865,796 2,421,770 2,333,536 17,578,223 2,500,000 589,755 8,642,685 1,393,000 25,744,535 20,836,606 4,744,565 11,373,732 2,000,000 23,102,156 18,131,783 13,152,458 11,329,666 1,000,000 6,323,109 1,346.970 2,000,000 36,182,114 27,821,031 4,866,666 The Canadian Banks having a paid-up capital under $1,000,000 were the Western Bank of Canada, with Assets, on December 31, 1901, of $3,340,227 and Liabilities of $2,730,378; the Provincial Bank of Canada, with Assets of $3,514,916, and Liabilities of $2,655,595; the Banque de St. Jean, with Assets of $783,944, and Liabilities of $487,988; the Banque de St. Hyacinthe, with Assets of $1,847,434, and Liabilities of $1,385,825; the People's Bank of Halifax, with Assets of $4,188,573, and Liabilities of $3,119,566; the Union Bank of Halifax, with Assets of $6,251,525, and Liabilities of $4,663,024; the Halifax Banking Company, with Assets of $5,782,294, and Liabilities of $4,682,294; the Bank of Yarmouth (N.S.), with Assets of $954,388, and Liabilities of $586,015; the Exchange Bank of Yarmouth, with Assets of $680,303, and Liabilities of $356,636; the Commercial Bank of Windsor (N.S.), with Assets of $1,695,754, and Liabilities of $1,261,273; the Bank of New Brunswick, with Assets of $4,596,538, and Liabilities of $3,354,589; the People's Bank of New Brunswick, with Assets of $916,867, and Liabilities of $551,650; the * With the Call and Short Loans of the Canadian Bank of Commerce, the Merchants', Toronto, Standard, Quebec, Nova Scotia and Royal are included those outside of Canada. So with the Current Loans of the Bank of British North America, the Commerce, Merchants', Quebec, Nova Scotia and Royal. St. Stephen's Bank (N.B.), with Assets of $681,841, and Liabilities of $428,615; the Merchants' Bank of Prince Edward Island, with Assets of $1,641,308, and Liabilities of $1,159,628. Establish- During the Budget debate on March 14th, the Minister of Finance had announced the intention of the Government to take steps in the establishment of a branch of the British Mint in Canada, and on May 17th he moved a formal Resolution that a sum not exceeding $75,000 annually be granted for the maintenance of the proposed institution. The building to be erected would, he explained, not cost more than $300,000. A lengthy discussion followed, dealing with the general questions of gold and silver coinage; the possible development of a silver question" in Canada as a result of this policy; the necessity of one or more Assay Offices on the Pacific Coast to prevent the Yukon gold from going entirely to Seattle; and the best means of restricting the wholesale circulation of American silver coinage in Canada. The subject was debated in the Senate on April 30th and May 22nd, and strong criticisms presented by Senator Drummond. The Hon. Mr. Mills, Minister of Justice, also indicated his dislike of the project. At the preceding annual meeting of the Canadian Bankers' Association in Toronto, on November 16, 1900, strong opposition to the general idea of a Canadian Mint had been expressed-especially by Mr. E. S. Clouston, General Manager of the Bank of Montreal and by Mr. B. E. Walker, of the Canadian Bank of Commerce. In an interview with Mr. Clouston, in the Montreal Witness of May 23, 1901, these opinions were reiterated. He maintained that the Government would lose $500,000 yearly in interest on the Government notes now held as reserves; that a dangerous element of uncertainty was being introduced into the banking system; that the introduction of a Silver question would surely follow; that, so far as the miner was concerned, the Banks were now ready to pay him as much for his bullion as could be obtained by shipping the gold to an American Mint or converting it into coin in Canada. Speaking at the annual meeting of the Imperial Bank of Canada, on June 19th following, Mr. D. R. Wilkie, its General Manager, took occasion to express strong opinions in favour of the carrying out of the Government's project and of the proposal to organize Assay Offices at other points. He thought the advantage of attracting to Canada the producers of an ever-increasing output of gold and silver was obvious; the alarm as to an over-production of gold and silver coin needless; the fear of the excellent currency system of Canada being affected groundless. The new policy would, he believed, build up Canadian cities on the Pacific; promote the development of fresh markets for Canadian products; and prove an essential step in building up Canadian nationality along British lines. There was still another advantage. "The profit in the coinage of silver currency will probably encourage our Government to devise steps which will lead to the substitution of our own Canadian coinage for |