On account of the fact that practically all the business of Canada is transacted through its banks, the Canadian Banking System enjoys a unique position compared with the systems of other countries, and accordingly the statement of the Chartered Banks of Canada for the year ending October, 1920, reflects better than any other medium, the actual business condition of this country.
LOADING the boats at an H.B.C. inland post. The start of a long journey to the great auction market in London.
Banks Curtailed Credit to Stabilize Business
Much has been said and written in criticism of the policy of the banks in curtailing credit, but there is not the least doubt that the present comparatively favorable condition of Canada is due in good part to the continuous pressure that has been exercised by the banks, throughout the year, to restrict advances.
Notwithstanding this effort on the part of the banks, current loans are higher by three hundred million dollars than they were a year ago. If a conservative policy had not been adopted, the increase in loans would have been considerably greater; as it stands, the increase is balanced by a corresponding decrease in holdings of Government securities, acquired originally in connection with the Dominion and Imperial Governments’ war financing, and now redeemed.
BE A BOOSTER
By J. H. Pearin
Boost, and the trade boosts with you,