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Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

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DEVELOPMENT OF CANADIAN BANKING 469session of 1911, an Act was passed extending the charters for1one year, and this procedure was 2again adopted in 1912.The period during which excess circulation might be issued hadbeen found to be too short, and the Act of 1912 extended it soas to include the two months of September and February.No further change has been made in this respect, and thepresent limits are from September 1 to February 28.The last thorough revision of the Bank Act took place in1913, 3 and reflects the highly developed condition to whichCanadian trade and industry had by this time attained.While following the established principles of the Canadiansystem, this Act continued its historical development on soundconstructive lines. There is need to refer only to the moreimportant changes which were found expedient in order tomake the system a more efficient servant of the economicinterests of the country.The interpretation clauses are elaborated more fully thanin previous Acts. The details to be furnished in the monthlybank statements, especially in the case of the liabilities, are notso numerous as in some of the former Acts. The classificationof the assets is made to depend upon the character of theinvestments of the bank and the directions in which its creditsare extended."Bills payable" and "Acceptances under lettersof credit" are two new headings giving information not hithertoafforded, both being in some degree the out<strong>com</strong>e of the openingof branches outside Canada, particularly in Great Britain, andof the great growth of Canadian <strong>com</strong>merce and banking duringrecent years. The continued discussion of the problem of anadequate audit of the books of the banks, so as to prevent thedevelopment of objectionable practices, led finally to theframing of requirements for a shareholders' audit, under thesupervision of the Canadian Bankers' Association and of theMinister of Finance. The Association, subject to the approval4-2 Geo. V, 1911, c. iv.2 Geo. V, 1912, c. v.3 3-4 Geo. V, 1913, c. ix.

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