many years the policy of the Canadian Government to foster a certain collective responsibility among the chartered banks of the Dominion. They are, for example, required by the Bank Act to give what is really a guarantee of the payment of one-another's note issues—the sums deposited by each bank with the Dominion Treasury in the Circulation Redemption Fund being liable to be drawn upon to make good any deficiency in the payment of the notes of any other bank which may become insolvent and prove to have insufficient assets for this, its first liability, the amount of any such reduction in the Circulation Redemption Fund being ultimately replaced by the banks. This might appear to be making the banks responsible for matters over which they have no control; but the Canadian Bankers' Association is by statute charged with the duty of supervising and controlling all details connected with the issue of notes, and, in addition, through the operations of the Association and of the Clearing House, the banks as a body do exercise a very large measure of control over the policy of the individual institutions. The Minister of Finance was therefore able to feel assured that any special privileges which he might grant the banks for the purpose of sup-porting the credit fabric of the country would be exercised only in such manner as the entire body of banks would approve, and would not be exploited for the selfish benefit of individual institutions.
On August 3rd, 1914, therefore, the Minister of Finance prepared and laid before the Governor-Generalin-Council a Memorandum in which he made certain far-reaching recommendations regarding the monetary system and banking regulations of the Dominion; and in an Extra Edition of the Canada Gazette of that date there was published an "Order-in-Council (No. 2033) providing for an increased issue of Dominion Notes."
The recommendations of this Order-in-Council were three in number, not including the supplementary recom-