CANADIAN BANKING

Poverty Bay Herald, Volume LX, Issue 18208, 2 October 1933, Page 3

CANADIAN BANKING

SYSTEM INVESTIGATED COM MISSION’S BROAD SCOPE OTTAWA. August 16. A Royal {"ommission headed by Lord Macmillan, one. of Great Britain's most eminent jurists and economists, is conducting a very thorough inquiry into the banking and financial system of Canada, and on its recommendations, it may reasonably he expected, will depend the nature of the decennial revision of the Canadian Bank Act which will be made at the next session of Parliament.

Lord .Macmillan’s associates on the commission are Sir Charles Addis, a hanker of international reputation; Sir Thomas White, Canada's Minister ol Finance in the war years and a distinguished economist and financier; Mr. ,1. E. Brownlee, Premier of the province ol Alberta,; Mr. Beaudry Letnan, general manager of the Banque Canadienno Nationals and former head of the Canadian Bankers’ Association. The Government's direction to llte commission authorises a “complete and detailed” examination of the Bank Act as it stands and of its practical exemplification in the hanking system built upon it. study of the Finance Act, consideration of the proposal to establish a ovr.wal hanking institution in the Dominion. Furthermore the commission is to study “the entire monetary system of Canada, including credit, currency and coinage, particularly in their relation to commodity price movements and fluctuations in international exchange.” Nor does this exhaust the field. The commission also will consider “whether and in what respects” Canadian hanks and the nation’s monetary system “may ho modified, extended or developed for the purpose of facilitating inter-]inperiui and international co-operation in public policies designed to promote the revival of domestic and foreign trade and enterprise and the general increase of employment, and to ensure a greater measure of stability in lespect thereto." In striking contrast with the situation in the United States, the Canadian hanking system stood up during the depres sion without a break or anv sign ol

weakness. Thus the present imptiry was not forced by any emergency, but rather is the result of a desire to profit by tlm experience of (he recent extraordinary years, In improve the financial and mono larv system—if investigation shows room for improvement by lessons leal lied m these limes of’stress.

It is exported the eommissioit will present, its report within the next couple oi months,