liquidator, receiver, assignee or other proper official, the amount at the credit of the bank, or such portion thereof as it thinks expedient:

Treasury Board may regulate management of fund.

10.

The Treasury Board may make all such rules and regulations as it thinks expedient with reference to the payment of any moneys out of the said fund, and the manner, place and time of such payments, the collection of all amounts due to the said fund, all accounts to be kept in connection therewith, and generally the management of the said fund and all matters relating thereto : II. The Minister of Finance and ReceiverEnforcement of General may, in his official name, by action in the Exchequer Court of Canada enforce payment (with costs of action) of any sum due and payable by any bank under the provisions of this section.

payment.

Notes of bank to be payable at par throughout Canada.

55. The bank shall make such arrangements as are necessary to insure the circulation at par in any and every part of Canada of all notes issued or re-issued by it and intended for circulation; and towards this purpose the bank shall establish agencies for the redemption and payment of its notes at the cities of Halifax, St. John, Charlottetown, Montreal, Toronto, Winnipeg and Victoria, and at such other places as are, from time to time, designated by the Treasury Board.

Redemption of

notes.

Payable at chief place of busi

ness.

Payments in

Dominion notes.

56. The bank shall always receive in payment its own notes at par at any of its offices, and whether they are made payable there or not:

2. The chief place of business of the bank shall always be one of the places at which its notes are made payable.

5%. The bank, when making any payment, shall, on request of the person to whom the payment is to be made, pay the same, or such part thereof, not exceeding one hundred dollars, as such person requests, in Dominion notes for one, two or four dollars each, at the option of such person: Provided always, that no payment, whether in Dominion notes or bank notes, shall be made in bills that are torn or partially defaced by excessive handling.

Torn or defaced notes.

Notes may be signed by machinery.

59. All bank notes and bills of the bank whereon the name of any person intrusted or authorized to sign such notes or bills on behalf of the bank is impressed by machinery provided for that purpose, by or with the authority of the bank, shall be good and valid to

all intents and purposes as if such notes and bills had been subscribed in the proper handwriting of the person intrusted or authorized by the bank to sign the same respectively, and shall be bank notes and bills within the meaning of all laws and statutes whatever, and may be described as bank notes or bills in all indictments and civil or criminal proceedings whatsoever: Provided always, that at least one signature to each note or bill must be in the actual handwriting of a person authorized to sign such note or bill.

One signature must be written.

Penalty for unauthorized issue of notes. for circulation

60. Every person, except a bank to which this Act applies, who issues or reissues, makes, draws, or indorses any bill, bond, note, cheque or other instrument, intended to circulate as money, or to be used as a substitute for money, for any amount whatsoever, shall incur a penalty of four hundred dollars, which shall be recoverable with costs, in any court of competent jurisdiction, by any person who sues for the same; and a moiety of such penalty shall belong to the person suing for the same and the other moiety to Her Majesty for the public uses of Canada:

What shall be deemed

such notes.

2. The intention to pass any such instrument as money shall be presumed, if it is made for the payment of a less sum than twenty dollars, and is payable either in form or in fact to the bearer thereof, or at sight, or on demand, or at less than thirty days thereafter, or is overdue, or is in any way calculated or designed for circulation, or as a substitute for money; unless such instrument is a cheque on some chartered bank paid by the maker directly to his immediate creditor, or a promissory note, bill of exchange, bond or other undertaking for the payment of money, paid or delivered by the maker thereof to his immediate creditor, and is not designed to circulate as money, or as a substitute for money.

Defacement of

note.

61. Every person who in any way defaces any Dominion or Provincial note, or bank note, whether by writing, printing, drawing or stamping thereon. or by attaching or affixing thereto, anything in the nature or form of an advertisement, shall be liable to a penalty not exceeding twenty dollars.

Penalty.

Counterfeit and

fraudulent notes
to be stamped
as such.

62. Every officer charged with the receipt or disbursement of public moneys, and every officer of any bank, and every person acting as or employed by any banker, shall stamp or write in plain. letters the word "counterfeit,' ""altered" or " worthless," upon every counterfeit or fraudulent note issued in the form of a

Dominion or bank note, and intended to circulate as money, which is presented to him at his place of business; and if such officer or person wrongfully stamps any genuine note he shall, upon presentation, redeem it at the face value thereof.

No advertise

issued in the

form of a note.

63. Every person who designs, engraves, ment, &c., to be prints, or in any manner makes, executes, utters, issues, distributes, circulates or uses any business or professional card, notice, placard, circular, handbill or advertisement in the likeness or similitude of any Dominion or bank note, or any obligation or security of any Government, or of any bank, is liable to a penalty of one hundred dollars or to three months' imprisonment, or to both.

NOTES

ANNUAL MEeting OF THE CANADIAN BANKERS' ASSOCIATION-The Annual Meeting of the Association this year will be held at Montreal, on the 25th October and following days. The Council will be pleased to see a large attendance of Associates, who are again invited to bring before the meeting-by means of a paper, a letter to the Secretary, or otherwise-any matters upon which discussion might prove interesting or profitable.

CANADIAN EDITION OF THE Bankers' Magazine-The attention of our readers is directed to the announcement by the publishers of the American Bankers' Magazine, to be found at the end of this number of the JOURNAL, of a special issue of that periodical in which the subject of banking in Canada will be dealt with at length. In view of the attention which the subject of banking legislation is now receiving at the hands of the legislators and financiers of the United States, and of the interest which has been evinced by the public there in the working of the Canadian system, the issue of this special edition is timely. The Bankers' Magazine occupies very much the same position among bankers in the United States as its namesake does in Great Britain.

THE

QUESTIONS ON POINTS OF PRACTICAL
INTEREST

HE Editing Committee are prepared to reply through this column to enquiries of Associates or subscribers from time to time on matters of law or banking practice, under the advice of Counsel where the law is not clearly established.

In order to make this service of additional value, the Committee will reply direct by letter where an opinion is desired promptly, in which case stamp should be enclosed.

The questions received since the last issue of the JOURNAL are appended, together with the answers of the Committee:

Cheque, unmarked, received on deposit by the bank on which it is drawn-Right to recover on finding that there are not funds

QUESTION 255.-A bank receives on deposit from another bank a cheque drawn upon it by a customer, and enters the deposit at the credit of the other bank in the latter's pass-book. After entering the credit, but before 3 o'clock of the same day, the paying bank discovers that the cheque is not good, and wishes to charge it back to the depositing bank. right to rescind the credit which has been given? action takes place at a small office where the teller, who took the deposit, should have known or been able to ascertain at once the state of the customer's account?

Has it the

The trans

Would the position be different in a large office where the teller, who receives the deposit and passes the cheque, might not know for some time whether or not there were funds for it?

ANSWER.-The case of a cheque drawn on the same bank in which it is deposited differs from the case of a cheque drawn on another bank. In the one case the holder of the cheque when presenting it is entitled to know at once whether it is good or not, and his recourse against the drawer and endorser depends upon the cheque being dishonoured on presentation and upon