over to the creditor banks the balances due to them in accordance with Rule 11. The said funds for the Chairman shall be furnished by being deposited in the clearing bank for the purpose aforesaid. The defaulting bank shall repay to the Chairman for the time being, or to his successor in office, the amount of such debit balance and interest thereon, and the said Chairman, and his successor in office, shall be entitled to recover the same from the defaulting bank. Any moneys so recovered shall be held in trust for and deposited in the clearing bank for the benefit of the banks entitled thereto. [This rule is intended to cover a case where for any reason the banks which have balances against a defaulting bank prefer, instead of having their items returned, to obtain the benefit of the balances due to the defaulting bank by other banks, a benefit which under some circumstances might be very important. The wording of the rule is rendered complicated by the fact that the defaulting bank is not the debtor of the several banks in the clearing house, but owes its debtor balance to the chairman of the clearing house (Rule 11).] Rule 15. If a bank neglects or refuses to pay its debit balance to the clearing bank, and if such default be made not because of inability to pay, the Board of Management may direct that the exchanges for the day between the defaulting bank and each of the other banks be eliminated from the Clearing House Statements, and that the settlements upon such exchanges be made directly between the banks interested and not through the Clearing House. Upon such direction being given the Clearing House Manager shall comply therewith and adjust the settlement of balances anew, and the settlements of the exchanges so eliminated shall thereupon be made directly between the banks interested. Rule 16. Should any case arise to which, in the opinion of the Board of Management, the foregoing rules are inapplicable, or in which their operation would be inequitable, the Board shall have power at any time to suspend the clearings and settlements of the day; but immediately upon such suspension the Board shall call a meeting of the members of the Clearing House to take such measures as may be necessary. Rule 17. Every Clearing House now existing, or that may hereafter be established, may enact by-laws, rules and regula tions for the government of its members, not inconsistent with Rules these rules, and may fix therein among other things: 1. The name of the Clearing House; 2. The number of members of the Board of Management and the quorum thereof; 3. The date, time and place for the Annual Meeting; 4. The mode of providing for the expenses of the Clearing House; 5. The hours for making exchanges, and for payment of the balances to or by the clearing bank; 6. The mode or medium in which balances are to be paid. Any by-law, rule, or regulation passed or adopted under this clause may be amended at any meeting of the members, provided that not less than two weeks' notice of such meeting and of the proposed amendments, has been given. respecting clearing houses. 20-BANK ACT. Uniform currency established. CHAPTER XXIX. CURRENCY AND DOMINION NOTES. The Dominion statute 34 Vict., c. 4, passed in 1871, after reciting that "it is expedient to establish one uniform currency for the whole Dominion of Canada," enacted that on and after the first day of July, 1871, the currency of the province of Nova Scotia should be the same as that of the provinces of Quebec, Ontario, and New Brunswick, in all of which one currency, of the uniform value thereinafter mentioned, had been and was then used. The Act repealed a tentative Dominion Act of 1868, passed in anticipation of the adoption by the United States of an international standard of currency by which it was proposed that a five dollar gold coin should be of the same value as a French gold coin of twenty-five francs. It also repealed certain statutes of the provinces of Canada, Nova Scotia and New Brunswick, and enacted substantially the provisions contained in secs. 2, 3, 4, 6, 8, 9, 10, 11, 12 and 13 of the present statute. These sections continue throughout the Dominion the decimal currency which was in use in the provinces other than Nova Scotia prior to Confederation, the pound sterling being the equivalent of $4.86 2-3. Sec. 6 makes provision for the conversion of Nova Scotia currency into Canadian currency at the ratio of 73 to 75. Legal tender is regulated by secs. 9 to 12, gold coins of the United States of the values, dates and weights specified being legal tender to any amount, Canadian silver coins to the amount of ten dollars, and Canadian copper or bronze coins to the amount of twenty-five cents, in any one payment. Dominion notes are also legal tender in every part of Canada except at the offices at which they are redeemable (R.S.C. c. 27, sec. 3, infra). The repealing clause of the Act of 1871 excepted from its operation sec. 2 of the Act of 1868, part of which is now contained in sec. 5. The provisions of secs. 14 and 16 also date from a time prior to the Act of 1871, they having been enacted by 32-33 Vict., c. 18, secs. 17 and 24. The statute 44 Vict., c. 4, sec. 4, passed in 1881, enacted the Currency provisions now contained in sec. 7 relating to the conversion into legislation the currency of Canada of any debt or obligation contracted before the 1st of July, 1881, in the currency of British Columbia or Prince Edward Island, but payable thereafter. The provisions of sec. 15 were enacted in 1906. value of currency. 2. The currency of Canada shall be such, that the British Standard of sovereign of the weight and fineness now prescribed by the laws of the United Kingdom, shall be equal to and shall pass current for four dollars eighty-six cents and two-thirds of a cent of the currency of Canada, and the half sovereign of proportionate weight and like fineness, for one-half the said sum. R.S., c. 30, s. 2. Gold is unlimited legal tender in Canada (secs. 9 to 12). It is also the standard of value. Any individual is entitled to take gold bullion to the English mint and have it coined into sovereigns at the rate of £3 17s. 1011⁄2d. an ounce, free of charge for coining, although the common practice is to sell bullion to the Bank of England at 11⁄2d. less than the mint price. English sovereigns are made of standard gold, which is an alloy or mixture of eleven parts pure gold and one part composed chiefly of copper. Standard gold is therefore said to be "eleven-twelfths" fine or twenty-two carats fine, a carat being a goldsmith's term for a twenty-fourth part of an ounce. At the mint price a sovereign should weigh 123.27447 grains troy, or 7.98805 grams, and should contain 113.00160 grains, or Sec. 2. Denomina tions in currency. Public accounts, etc. Private accounts, etc., from July 1st, 1871. Sums mentioned 7.32238 grams, of pure gold, but since absolute accuracy is a matter of difficulty (and was especially so in former times when the machinery for coining was somewhat primitive), the Mint is allowed a slight deviation called a "remedy," amounting to two-tenths of a grain in each sovereign. There is also a remedy in the fineness of the gold of two parts in a thousand. 3. The denominations of money in the currency of Canada, shall be dollars, cents and mills,-the cent being one-hundredth part of a dollar, and the mill one-tenth part of a cent. R.S., c. 30, s. 1. PUBLIC ACCOUNTS, DEBTS AND OBLIGATIONS. 4. All public accounts throughout Canada shall be kept in the currency of Canada; and in any statement as to money or money value, in any indictment or legal proceeding, the same shall be stated in such currency. 2. In all private accounts and agreements rendered or entered into, on or subsequent to the first day of July, one thousand eight hundred and seventy-one, all sums mentioned shall be understood to be in the currency of Canada, unless some other is clearly expressed, or must, from the circumstances of the case, have been intended by the parties. R.S., c. 30, s. 2. 5. All sums mentioned in dollars and cents in The British in certain North America Act, 1867, and in all Acts of the Parliament of Acts to be in Canada shall, unless it is otherwise expressed, be understood to be sums in the currency of Canada as by this Act established. R.S., c. 30, s. 12. currency. Payments in 6. All sums of money payable on and after the first day of July, one thousand eight hundred and seventy-one, to Her late 1871, to be Majesty Queen Victoria, or to any person, under any Act or July, 1st, in Canada currency. law in force in Nova Scotia, passed before the said day, or under any bill, note, contract, agreement or other document or instru |