Volume 2 - ElectricCanadian.com

THE BANK DURING THE WAR 335ment to the Bank Act was passed by the Federal Parliamentpermitting the banks to lend money for the purchase of seedgrain and to take the resulting crop as security. A stamp taxof two cents on cheques, bank drafts and bills of exchange (inthe case of the last-mentioned items, only when transferred toor lodged with a bank) was adopted by the Minister of Financeas one means of raising revenue, and an additional tax of onecent was placed on all letters and post cards. These taxescame into effect on April 15, 1915. The banks were laterappointed agents of the Department of Inland Revenue forthe sale of war revenue stamps. In the case of the war taxon letters, strong efforts were made to induce the Governmentto surcharge the existing two cent postage stamps instead ofrequiring an additional stamp to be affixed, but in vain.When it is known that the annual postage bill of the bankamounted at that time to about $130,000, the labour involvedin affixing an additional stamp to each letter which went tomake up the above amount will be fully appreciated. A yearor so later the Government of its own volition overcame itsstrongly urged objections, and issued, first, a surcharged twocent stamp, and later, a three cent stamp which included thewar tax.Precautions had now to be taken against trading, evenunwittingly, with the enemy. In June it was felt advisableto warn the branches that a great many securities payable tobearer, issued by the Rio de Janeiro Tramway Light andPower Company, Limited, and the Brazilian Traction Lightand Power Company, Limited (both corporations in whichCanadian investors were largely interested), had been leftbehind, or had been lost by their owners, in those parts ofBelgium and France occupied by the Germans, and that greatcare must be exercised in negotiating coupons detached fromthe securities of these companies. The managers wereinstructed to satisfy themselves fully as to the actual ownershipof the securities, or as an alternative to accept the couponsfor collection only.