Question 263.— Can anyone presenting Canadian bank notes at place of issue demand gold for same up to any amount, and similarly with legal tender notes at the place of issue?

Answer.—Anyone holding the note of a Canadian bank may demand gold for the same at the place of issue. The bank may pay in gold or legal tenders, at its option, but should the party demand a certain proportion in legal tenders, the bank must comply therewith. See sec. 57 of the Bank Act.

The place of issue in most cases means the office of the bank at which the note purports to be issued. The practice of the banks in Canada now is almost altogether to domicile the notes at the head office. A bank is not bound to pay gold for such notes at its branch offices, but it must receive them at par in payment of any debts due it. See sec. 56 of the Act.

As regards legal tender notes, the government is bound to pay their face value in gold on demand at the place at which they are made payable.