4. Deposits (Sections 95-98)

A bank may receive deposits from any person, whether qualified by law to contract or not, and may repay the same to such person unless the money is lawfully claimed by another. Where this conflicts with the law of a province regarding minors, married women and other persons not competent to enter a contract, the total amount received from such person shall not exceed $500.

A bank is not bound to see to the execution of any trust in relation to deposits.

Provision is made facilitating the transmission of deposits not exceeding $500 in case of the death of the depositor.

Official checks of the Dominion of Canada shall be cashed at par at the branches of every bank in Canada.

5. Purchase Of The Assets Of A Bank (Sections 99-111)

These sections provide for the amalgamation of banks and set forth the necessary procedure. However, before a bank can enter into any agreement to sell the whole or any portion of its assets to another bank, it is necessary to obtain the consent of the Minister of Finance in writing. The agreement to sell and purchase must then be submitted to the shareholders of the selling bank either at its annual general meeting or at a special general meeting called for that purpose, a copy of the agreement having been mailed to each of the shareholders at least four weeks previous to the date of the meeting.

To carry a resolution approving of the agreement the votes of shareholders representing not less than two-thirds of the amount of the subscribed capital stock of the bank are necessary. The agreement may then be executed under the seals of the banks, and aproved

Chartered Banks' Statement To The Dominion Government - JULY, 1913

5 Purchase Of The Assets Of A Bank Sections 99 111 2

Figure 1

T. C. Boville

Deputy Minister of Finance plication made to the Governor-in-Council, thru the Minister, for approval thereof.

The approval of the Governor-in-Council is not given, however, until the Minister is satisfied that all the requirements of the act have been complied with and the necessary publicity given by the insertion of notices in the Gazette and certain newspapers. The approval by the Governor-in-Council of the agreement will then be evidenced by a certified copy of the Order-in-Council approving thereof.

The notes of the selling bank, of course, cannot be reissued, but must be called in, redeemed and cancelled as quickly as possible.

6. Returns To Government (Sections 112-114)

Banks must send a statement in a specified form1 at the end of each month to the Minister of Finance. The statement must be signed by the chief accountant and by the president and general manager, or persons duly authorized to act in their stead.

The Minister of Finance may call for special returns from any bank at any time.

A bank at the end of each calendar year shall transmit to the Minister:

(a) Detailed returns of all unpaid dividends, bills of exchange, drafts and certified checks outstanding for more than five years and of all balances in respect of which no transactions have taken place or upon which no interest has been paid during the five years prior to the date of such return;

(b) A list of shareholders with their addresses and the number of shares held by each.

1 See combined statements of all banks, Figure 2.

Return Of The Total Liabilities. Canadian Banks As Reported

Percentage to

Total Assets

Liabilities to Public

Capital authorized .....................

$190,866,666

12.56

14.97

Capital subscribed

118,190,966

7.78

9.27

Capital paid up

116,520,153

7.67

9.14

Amount of rest or reserve fund

108,959,833

7.17

8.54

Rate per cent of last dividend declared,

.................................................... per cent.

LIABILITIES

1

Notes in circulation

$99,143,411

6.52

7.77

2

Balance due to Dominion Government after deducting advances for credits, pay-lists, etc.....

6,760,046

.44

.53

3

Balances due to Provincial Governments

34,075,596

2.24

2.67

4

Deposits by the public, payable on demand in Canada

356,585,196

23.47

27.96

5

Deposits by the public, payable after notice or on a fixed day, in Canada.

621,347,388

40.89

48.73

6

Deposits elsewhere than in Canada....

86,600,194

5.70

6.79

7

Loans from other banks in Canada, secured, including bills rediscounted. .

8

Deposits made by and balances due to other banks in Canada

6,002,957

.39

.47

9

Due to banks and banking correspondents in the United Kingdom........

14,228,085

.94

1.12

10

Due to banks and banking correspondents elsewhere than in Canada and the

United Kingdom

9.713,020

.64

.76

11

Bills Payable

21.169.142

1.39

1.66

12

Acceptances under letters of credit. . . .

11,134,246

.73

.87

13

Liabilities not included under foregoing heads

8,537,905

.56

.67

$1,275,297,267

83.93

100.00

Aggregate amount of loans to directors, and firms of which they are partners.

$10,105,316

.66

.79

Average amount of current gold and subsidiary coin held during the month

37,107,557

2.44

2.91

Average amount of Dominion notes held during the month

91,656,478

6.03

7.19

Greatest amount of notes in circulation at any time during the month......

108,178,424

7.12

8.48

I declare that the above return has been prepared under my directions and is

We declare that the foregoing return is made up from the books of the Bank, clearly the financial position of the Bank, and we further declare that the Bank has ion notes less than forty per cent of the cash reserves which it has in Canada. ...........................this........day of...................19... .

Figure 2 42

Form Prescribed for And Assets Of All The To The Government On the Thirty-first Day of July, 1913

Percentage to

ASSETS

Total Assets

Liabilities to Public

1

Current gold and subsidiary coin: In Canada, $28,582,779. Elsewhere, $13,590,170...........

$42,172,949

2.77

3.31

2

Dominion notes:

In Canada, $90,994,635.

Elsewhere, $17,055...........

91,011,691

5.99

7.14

3

Deposit with the Minister of Finance for the security of note circulation.....

6,616,333

.44

.52

4

Deposit in central gold reserves.......

5

Notes of other banks

12,908,263

.85

1.01

6

Checks on other banks

47,819,945

3.15

3.75

7

Loans to other banks in Canada, secured, including bills rediscounted........

138,100

8

Deposits made with and balances due from other banks in Canada

3,588,651

.24

.28

9

Due from banks and banking correspondents in the United Kingdom

9,201,286

.61

.72

10

Due from banks and banking correspondents, elsewhere than in Canada and the United Kingdom..............

24,892,762

1.64

1.95

11

Dominion government and provincial government securities

10,958,221

.72

.86

12

Canadian municipal securities, and British, foreign and colonial public securities other than Canadian

22,584,905

1.49

1.77

13

Railway and other bonds, debentures, and stocks ......................

73,697 295

4.85

5.78

14

Call and short (not exceeding thirty days) loans in Canada on stocks, debentures and bonds

67,991,255

4.48

5.33

15

Call and short (not exceeding thirty days) loans elsewhere than in Canada

89,266,235

5.87

7.00

16

Other current loans and discounts in

Canada

858,429,069

56.49

67.32

17

Other current loans and discounts elsewhere than in Canada

42,960,513

2.83

3.37

18

Loans to the Government of Canada. . . .

19

Loans to provincial governments......

2,111,836

.14

.i6

20

Loans to cities, towns, municipalities and school districts

43,121,384

. 2.84

3.38

21

Overdue debts

4,291,208

.28

.34

22

Real estate other than bank premises. .

1,340,100

.09

.10

23

Mortgages on real estate sold by the bank

2,471,176

.16

.19

24

Bank premises, at not more than cost, less amounts (if any) written off. . . .

40,896,616

2.69

3.21

25

Liabilities of customers under letters of credit as per contra ..............

11,134,246

.73

.87

26

Other assets not included under the foregoing heads

9,912,824

.65

.79

$1,519,517,013

100.00

119.15

correct according to the books of the bank.

Chief Accountant. and that to the best of our knowledge and belief it is correct, and shows truly and never, at any time during the period to which the said return relates, held in DominPresident.

General Manager. Figure 2 - continued

Individual Statement

7. Payments To The Minister Of Finance Upon Dissolution Of A Bank (Sections 115-116)

The liquidator of a bank must, after three years, pay to the Minister of Finance all amounts due to shareholders or depositors remaining unclaimed, together with all interest due. The government will hold the money in trust for the owners and, in case of interest-bearing deposits, will continue to allow for six years' interest at the rate of three per cent per annum.

Liquidators of banks are also required to pay to the Minister of Finance within three years an amount equal to the excess of the outstanding notes in circulation over the amount at the credit of the bank in the Circulation Fund, the same to be held by the government for the purpose of redeeming such notes.

8. Canadian Bankers' Association (Section 117-124)

In the event of the suspension of a bank the Canadian Bankers' Association is intrusted with the appointment of a curator who continues to supervise the affairs of the bank until it resumes business or until a liquidator has been appointed to wind it up.

The association may make by-laws, rules, and regu-lations respecting:

(a) All matters relating to the appointment or removal of a curator, and his powers and duties;

(b) The supervision of the making of the notes of the banks which are intended for circulation, the delivery thereof to the banks, the disposition made of them, and their final destruction;

(c) The custody and management of the central gold reserves and the carrying out of the provisions of this act relating to such reserves.

No such by-law, rule or regulation, however, shall be in force until approved by the Treasury Board.