Co-Operation With Other Banks

In addition to these matters, the general manager gives a part of his time to the shaping of the general course of the bank. Canada has recently seen how the banks' well-considered policy of repression of speculation and enthusiasm on the part of business men and others aided in enabling the Dominion to sail with dignity and honor through the stormy financial weather that overwhelmed the banking system of the United States. In preparing for trouble, and in dealing with it when it comes, co-operation is an important factor. There is probably no country in the world where the science of co-operation among the banking interests has been so highly developed as in Canada. In the first place, the system of banking lends itself admirably to co-operative action; and in addition the Canadian Bankers' Association has been developed to such a degree that when it speaks the voice is regarded as the voice of the united banking interests of the whole country.

It is the general manager who represents the bank in the Association's councils. He conducts negotiations and enters into compacts or agreements referring to general movements among the banks, getting the requisite authority from the board when necessary.

Shareholders' Audit

Section 56 of the Bank Act of 1913 provides for an audit of the bank's affairs. The section says: "The " general managers of the banks (or in the absence of " a general manager of any bank, the official designated " by him, or in default of such designation, the prin-" cipal officer of the bank next in authority) shall, at " a meeting duly called by the president of the (Bankers') " Association for the purpose before the thirtieth day " of June in each year, select by ballot persons deemed " by them to be competent (no one of whom shall be a " body corporate) not less than forty in number, any " one of whom shall, subject to the provisions herein-" after contained, be eligible to be appointed an auditor " under the provisions of this Act."

This list of forty persons is to be forwarded to the Minister of Finance for his approval; and when approved by the Minister the list is to be published in the "Canada Gazette." From the list so published the shareholders of each bank, at the annual meeting, must select an auditor or auditors to hold office until the next annual meeting.

The auditors are to be paid by the bank. They are to have "right of access to the books and accounts, " cash, securities, documents, and vouchers of the bank, " and shall be entitled to require from the directors and " officers of the bank such information and explanation " as may be necessary for the performance of the duties " of the auditors."

If the bank has branches or agencies, the auditors are to examine the reports, returns and statements of the branches or agencies; and they may at their discretion visit any branch or agency for examination purposes.

They are to report to the shareholders, also to the Minister of Finance. The annual report of the bank, when submitted by the directors at the annual meeting, must contain the auditors' certificate or report.