[143] The Report of the Monetary Commission of the Indianapolis Convention, pp. 377-8. The University of Chicago Press. 1898.
[144] Adapted from H. M. P. Eckardt, Branch Banking Among the State Banks, The Annals of the American Academy of Political and Social Science, Vol. 36, No. 3, November, 1910 pp. 626-630.
[145] Adapted from Everett W. Goodhue, The Revision of the New York State Banking Law, The American Economic Review, Vol. V, No. 2, pp. 413-421.
[146] Annual Report of the Superintendent of Banks of the State of New York, Jan. 6, 1915, p. 33.
CHAPTER XXI
THE CANADIAN BANKING SYSTEM
[147]Financially, Canada is part of the United States. Fully half the gold reserve upon which its credit system is based is lodged in the vaults of the New York Clearing House. In any emergency requiring additional capital Montreal, Toronto, and Winnipeg call on New York for funds just as do St. Paul, Kansas City, and New Orleans. New York exchange is a current and universal medium in Canada and is in constant demand among the banks. A Canadian wishing to invest in securities that may be quickly marketed commonly turns to the New York market for stocks and bonds. Yet the American banker visiting in Canada, if he is unacquainted with the history of banking in his own country, finds himself in a land of financial novelties, for Canada has a banking system unlike any in operation in the United States at the present time. Twenty-nine banks, known as the "chartered banks," transact all the banking business of the Dominion. They have 2,200 branches, and each may establish new branches without increase of its capital stock. [At the close of the year 1915 there were twenty-two banks with approximately 3,200 branches.] They issue notes without depositing security with the Government and in such abundance that no other form of currency in denominations of $5 and above is in circulation. Notwithstanding the fact that the notes are "unsecured," their "goodness" is unquestioned among the Canadian people.