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Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

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DEVELOPMENT OF CANADIAN BANKING 465the <strong>com</strong>munity are so interested in the maintenance of thepowers given to the banks by these sections of the Bank Act asare the farmers and the wage-earners. The farmer's ability toturn his grain crops into cash is largely dependent upon theability of the grain buyer and the flour miller to borrow from thedoes not entitle thembanks to an extent to which their capitalwithout the safeguards provided by these sections of the Act.Without these provisions the men engaged in these industriesmust buy their raw materials largely on credit, giving thefarmer grain tickets redeemable only when the grain representedthereby, or the resulting flour, has been sold and paidfor, or else stored in a public warehouse, and a negotiablereceipt issued for it. The men in the woods would likewisebe dependent for the payment of their wages in cash on thesale of the lumber which was the product of their labour inthe woods and mills. The interest of the banks in this mattercoincides with that of the farmers and the wage-earners, but is<strong>com</strong>paratively of small moment.The arguments of Mr. Z. A. Lash on behalf of theBankers' Section of the Toronto Board of Trade, in connectionwith the changes in the "pledge" sections of theAct, have already been mentioned. The new clauses weredrafted under his keen eye and embodied the results of hisripe knowledge of law and banking. The fictitious extensionof the term, "warehouse receipt" was abolished, and such adocument, to furnish valid security, had in future to beissued by a person having the goods actually in his possessionas bailee in good faith and not as owner. The powers of abank to lend money against the security of goods, wares andmerchandise, in place of being confined to a limited andillogical list of persons engaged in certain kinds of business,were extended to include all those engaged in wholesale manufacturingand all wholesale dealers in agricultural and certainother products, and a simple form for taking the security wasprovided by theAct.In addition to the returns already made by the banks,

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