1171

Date 1912-12-19

From 1171

ing the shot. Fisher t on a charge of vag orders now, for the dsomely Mlustrated. In-, r, Over. sixty pages. first of the) year. tf. AVAM SI TUAHL MAATAATHM CVIONOST Thursday, December 19th, 1972 PPOPII SSOP OS oor Ooonroy -HEADQ for Xmas When Youw re in Doubt as to Suitable Gifts for your friends come in 1 and inspect our stock We Lave the LARGEST and the BEST ASSORTED display of Christmas Gift Goods in the city. Whether you want some- thing simply dairty and attractive, or want to eombine these two qualities with usefulness, we believe you can get what you want here. OPEN EVENINGS Ss A few lings to Choose from ; LARGE RANGE OF BRASS GOODS. XMAS GIFT BOOKS IN BOARD, MOROCCO AND. LEATHER COVERS. 53 BEAUTIFUL CALENDARSFOR1913. XMAS AND NEW YEAR CARDS I ATTRAC- TIVE DESIGNS. LEATHER GOODS-OF ALI. MILITARY HATR BRUSHES. - TOILET SETTS AND CASES. MANICURE-SETTS FOUNTAIN PENS. CHILDREN S BOOKS AND hoax THERMOS BOTTLES. SHAVING SETS. SAFETY RAZOR OUTFITS. CHOCOLATES IN PLAIN AND FANCY BOXES. PERFUMES AND ATOMIZERS. The above are merely a offered as suggestions. We -invite you to call at-your convenience and inspect our display. SOS eH HH Soy Bank Act Amendments to Safeguard Investing Public Minister of Finance Ex- lains Some Features He roposes Legislating - - Protection for Bharehold- ers and Depositor: ernment, Audit. Ottawa,-Dec. 18 In the House yesterday, Hon. W. T. White intro- duced his resolution making exte: sive audit of Canadian banks. This is a feature of the bank act which he subsequently introduced, which had to be presented by way of resolution because it provided for the expendi- ture of public money. Mr. White ex- the proposal in brief is that the shareholders of a bank at the annual meeting must natne an auditor. In the event of the minister mot being satisfied with any state- Leeseseooooss Pose ene ase ose rr, Phone 166 Service Service? Service . Always ron the se ote tests OK, Beaver Lumber Co., Ltd. Phone 166. ED. W. STACEY, Manager. Yards and Sheds, Factory and*South Railway Does Dry Lumber Count With You? Then see our new large-stock under sheds. Quality and price guaranteed best in the citys The C. Lean Lumber Co., Ltd. Yards, East Allowance. Phone 772. - es, that is the proposal, ment or return submitted by the bank, it would be within his power to hive such statements verified by the auditor. As a concrete illustra- tion of how the new proposal would work, Mr, White said that should a minister not be satisfied with a monthly return presented by the bank, he would all on the bank for an. explanatipn. In the twvent of such explanation not being satisfac- tory, the government would ask the auditor for report. The govern- ment would pay the cost of the audit and for that reason the bank would feel due responsibility in regard to the matter, Is a separate auditor for each bank intended? asked Mr. Germane. re- plied the minister. iy Mr. White went on to explain that when Mr. Fielding amended the bank act he made provision for a permis- sive external audit. Under this act the audit would be compulsory. He expressed the view that if Mr, Field- ing was now in charge of this les- islation, he would ask for compulsory fexternal audit. Mr, Carvell wanted to know if the auditor would have the right to go into any particular account. Mr. White replied that in the event of any suspicion of frand in any par- ticular gecount or transaction, the) minister would have the right to ask for a full inquiry. Mr. Emerson asked the minister if tho had considered that the auditor rectors and not by the shareholders. Mr. White did not consider this a serious objection. The moral effect upon the bank staff would be great. Then shareholders, more particular ly in view of the double ability clause, should takea greater interest in ts affairs and be careful to seo that a competent auditor fs named. Mr. White expressed the opinion that the failures of th Ontario and the Farmers Banks would not have occurred had the present act provic ed for a system of external audit; and in one case the frauds which lcd to the wrecking of one of those banks would have been detected. The resolution was then put through committee stage and the bill introduced. It provides for the ex- tension of all bank charters unti July 21, 1923, Protect Subscribers One-amendment to the present act a designed to protect the cubscriters go iew banks. It provides that pre- us tothe time of the application the; Certificate expenses forgigr? Rin and cominiestons bsebo Hohe a Salen 80 much f ests co Tite and would be really appointed by the di- limited to a reasonable amount. If a bank is not successfully launched, money cannot be paid for commls- sions, etc. unless at the consent of the subscribers at a general meeting or upon the.order-of the court. An amendment provides that the annual statement to shareholders and the monthly statement to the govern- ment shall contain more information than is now called for, A particular ized and full detailed statement will be demanded, The-annuai-pepait to the shareholders must haye attached to it the certificate of the auditors. An important provision is one in regard to the penalties attached to directors, officials and auditors. Un- der the present act, inthe event of wrongdoing, it is necessary to prove intent. There is no penalty for neg- ligence, Under the 1ew act a direc- tor or official, guilty of negligence, will be subject to Indictment and it NVA be mncennary abet: Eallty knowledge. Under the present act-banks aro permitted to Tasue circulation to the Value of their paid up eapifal and re- serve. During the crop season they lare permitted to issue additional ctr culation for a preseribed poriod, The new act qvill give them-the right to Mssue note circulation against gold At the present time banks deposit gold. with the finance department. This autumn the Dominion govern- ment fssued ten millfon dollars in five dollar notes, the expense of printing and holding the gold falling on the government. It fs now pro- posed to establish a gold feserve at some c ntral point, probably Mon- treal. A bank may depbsit 5,000,000 in gold and issue notes against it, in whole or in part, This central fund will be controlled by four trustees, three to be named -by the Canadian Bankers Association and ore by. the government. It is to be reported on twice a year by the Officers of the department. There will be no profit to the banks on the gold in deposit. The government would make no charge for the ssue against gold, but the entire cost of the administration of the central reserve we-.1d be borne by the banks. Mr. White intimated that there would particularly be a bill introduced by which banks using the offices of the treasurer-general would be obliged to pay for the ser- vice thus rendered by the govern- ment, He sald that the government at the present timgatield seventy to eighty millions of for the banks. for which large: legal notes were is- sued. He gave an gtample of the way the plan worked out, A bank, for Instance, might deposit five millions) in gold and let/it remain there, and up to that amount could Issue in ac- cordance with its requirements, but not beyond that amount, He thought that.in the course of time the result of this would be to. increase the amount of the circulation of the bank notes. There would be the samie check over notes issued over gold as notes issued in the ordinary way. The banks would have to make their reg- ular statements as to the circulation outstanding. In answer to a question by Mr. Guthrie, the minister stated that the Dominion government may issue thirty millions of Jegal tender, of which twenty-two and a half millions is not secured by. gold, but as this was not under any circumstances be presented for redemption, the Do- minfon was practically on a gold ba- sis, protected by gold. Loans to Farmers, He next explained the clause pro- viding for loans to farmers on the security of the threshed grain .nd livestock. The advantage of this, he pelleved, would counteract the dis- advantages, Hitherto the privilege of hypothecating property In the vis ible possession of an individual had been practically limited to wholesal- ers. This amendment would greatly extend the privilege. Proceeding, the minister pointed pointed out that the attention of the now made to's bank redemption. He All recent Issues, he sala. were Hoiise had been in the past directed to what were khown as bank mer- gers. There had been much discus- sion as to the impropriety of certain so-called bank mergers and no hard and fast rule could be laid down, but tn certain circumstances the purchase of one bank's assets by another might strengthen the whole finan ial situation. He pointed out that when such a transaction is proposed. the agreement is first made between the boards of directors. This agreement next goes to the shareholders, by whom if approved, t proceeds to the treasury board'to be accepted or re- Jected. The new act would provide that the consent of the minister must be obtained to the agreement by the boards of directors of the respective Danks before it came before the shareholders. Mr. Turlff suggested that to par- Hament should be delegated the re- sponsibility of sanctioning mergers, just as parliament now deals. with the issuing of the charters, Mr. White sald that parllament was not in .cod tinnous and. circumstances might arise by which a delay of six months would be, inexpedient and against the public good. As the government was responsi- ble to parliament, he thought that it might be safely left in thelr hands. Mr. Ross (Middlesex), asked It there would be any change made which would give greater protection to depositors and instanced the se- vere losses sustained by depositors in the Farmers Bank, Mr. White sald that in the last get security to depos- itors would rest more upon the integ- rity and ability of the direttors than anything else, He believed that the provisions which had been made for an external atidit would have preven- tet the Farmers Bank crash. Mr. Ross cited a clause, giving the. depositors security by deposit similar to that NOW I THE TIME to have the home ae G:'W. Donner Guarantees first-class work and satisfaction. Phone 786. -P. 0. Box 861. of your Suggested that all the Banks should be made responsible for the deposits of anyone, Mr. White declared that wasn t T asible. The bill was given its first. teading and after the second read- ing will go to the committee on bank- ing and commerce, Crystal Ice Co. - NUMAN SANDERSON gt; Successors to Mr. Peter Robinson The Spanish chamber of deputies ratified the Frarico-Morocco treatry by a vote of 216 to 22. Forty years in use. 20. years the standard, prescribed and recommended by phy- sicians. For Women s Ail- i. A. E. Browne, ments, Dr. Martell s Female Hina oftios: Suite 25, Bette a , at your druggist, poo Competition for the New Williams Sewing Machine y Bey Holders Kindly Bring Keys for Trial eer Anderson Plumbing Go. HARDWARE - HEATING ; Opngeie Feige a

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Attribution Image 1171 (1912-12-19), from microfilm reel 1171, (CU1773619). Courtesy of Early Alberta Newspapers Collection, Libraries and Cultural Resources Digital Collections, University of Calgary.