Question 214.— (1) Why have no clearing houses been established at Quebec and Ottawa ?*

* Since established. J.K.

(2) Would it not be advisable to put them in operation wherever there are five banks or more?

Answer.— (1) We think clearing houses would unquestionably be found to serve a very useful purpose at the points mentioned; but for an answer to the enquiry why they have not been established we must refer our correspondent to the local banks concerned.

(2) We think that in any place where there are (say) seven banks established, a clearing house would economize time and labour greatly. They might with advantage be established where the number is less, but the economy would not be so marked, nor the gain very great. We see no difficulty in establishing them in places where settlements are not made by legal tenders. The rules of the Hamilton clearing house on the point of settlement are suited to places where balances are settled by drafts on Montreal or other central points.