Question 567. - Can section 88 of the Bank Act give a bank taking security under it, a lien on all materials on the pledgor's premises; for instance, a manufacturer of clothing? Can the security cover in addition to clothes, linings, buttons and other articles which actually go into the manufactured product, other articles such as wood, coal and fuel-oil used in furnaces for making steam to run the machinery of the plant, and can it include groceries, boots and shoes, dry goods, etc., in a pledgor's store, such store being run for the sole benefit of the workmen?

Answer. - Security under section 88 certainly covers all articles which actually go into the manufactured product. The position as to fuel has not yet come before the courts, but it is doubtful, and such security should not be relied upon. Groceries, etc., in a store run for the workmen, would probably be altogether outside the scope of the Act.