This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 593.— (1) Can a bank make advances to a wholesale dealer in tobacco and cigars, who is also a manufacturer of cigars, under section 74 of the Bank Act and Amendments ?
(2) How would you answer the above question if the party was, besides being a wholesale dealer and manufacturer, a retailer of tobacco and cigars?
Answer.— (1) If he is a "wholesale manufacturer" of cigars a bank can under the first clause of section 74 make him advances on the security of the cigars manufactured by him, or of the goods, etc., which he has procured for the purpose of manufacturing cigars. If he is a "wholesale dealer " in tobacco in its unmanufactured state he would be a dealer in products of agriculture under sub-section 2, and could give security on such products.
(2) The fact that he is a retailer as well as a manufacturer and wholesale dealer would not affect the question, but he could not give security on the stock bought for his retail business.