An Act to Observe the Commercial and Financial Interests of Canada.

[Assented to .22nd August, 1914.]

"Whereas for the purpose set forth in an order in council of the third day of August, 1914, advances to the chartered banks in the form of an issue of Dominion notes, were authorized to be made against deposits by the banks with the Minister of Finance of such securities as might be approved by the Minister, such advances to be repayable not later than the first day of May, 1915, with interest at a rate, to be approved by the Minister, not less than five per cent, per annum; and whereas under the authority of an order in council of the same date, the chartered banks were authorized to make payment in bank notes instead of gold or Dominion notes until further official announcement in that behalf, and were also authorized to issue from the date of the said order in council, and until further announcement, excess circulation to amounts not exceeding fifteen per cent, of the combined unimpaired capital and rest or reserve fund of the respective banks, as stated in their respective statutory monthly returns to the Minister for the month immediately preceding that in which the additional amount is issued; and whereas under authority of an order in council dated the tenth day of August, A.D. 1914, the redeeming in specie of Dominion notes was suspended; and whereas it is expedient that the said orders in council be confirmed: Therefore His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. This Act may be cited as The Finance Act, 1914.

2. In this Act, unless the context otherwise requires,

(a) "Minister" means the Minister of Finance;

(b) "excess circulation" means the amount of the notes of a bank in circulation in excess of the amount of the notes of that bank which may be issued pursuant to subsections 1 and 3 of section 61 of The Bank Act.

3. The issue of Dominion notes, and all things done under the provisions of the orders in council cited in the preamble, are hereby confirmed and shall be deemed to have been duly authorized, and the said orders in council shall continue in force until the fifteenth day of September, 1914: Provided always that the Governor in Council may at any time by a proclamation published in The Canada Gazette revoke the said orders in council, or any of them, or any of the provisions in the said orders contained, but such revocation shall not affect the previous operation of any such order or anything duly done thereunder, or affect any right, privilege, obligation or liability acquired, accrued, accruing or incurred thereunder.

4. In case of war, invasion, riot or insurrection, real or apprehended, and in case of any real or apprehended financial crisis, the Governor in Council may, by proclamation published in The Canada Gazette, (a) authorize the making of advances to the chartered banks and to the savings banks to which The Quebec Savings Banks Act, 1913, applies, by the issue of Dominion notes upon the pledge of securities, deposited with the Minister, of such kind and amount as may be approved by the Treasury Board; such advances to be repayable at such times as the Board may determine with interest at a rate likewise determined by the Board of not less than five per cent. per annum;

(b) authorize the chartered banks to make payments in the bank notes issued by such banks instead of in gold or Dominion notes, but the total amount of the notes of any chartered bank in circulation at any time shall not exceed the amount of its notes issuable under the provisions of The Bank Act and of clause (c) of this subsection;

(c) authorize the several chartered banks to issue excess circulation, from and including the first day of March in any year, to and including the last day of August next ensuing, or during any part of such period, to amounts not exceeding fifteen per cent, of the combined unimpaired capital and rest or reserve fund of the respective banks, as stated in their respective statutory monthly returns to the Minister for the month immediately preceding that in which the additional amount is issued;

(d) suspend the redemption in gold of Dominion notes; and (e) authorize, in so far as the same may be within the legislative authority of the Parliament of Canada, the postponement of the payment of all or any debts, liabilities and obligations however arising, to such extent, for such time and upon and subject to such terms, conditions, limitations and provisions as may be specified in the proclamation.

(2) The securities deposited with the Minister under this section shall, as respects the Dominion notes issued hereunder, be deemed to be the security required to be held by the Minister under section 5 of The Dominion Notes Act, 1914.

(3) A tender by a bank of its notes in payment of any of its liabilities, when a proclamation made under clause (b) of the first subsection of this section is in force, shall be a sufficient and valid tender, and the payment at such time by a bank of of its liabilities with its notes shall be as sufficient ami valid a payment as if the same had been made in specie or Dominion notes: Provided In either case the total amount of the notes of the bank in circulation at that time, Including in case of tender the amount tendered, does not exceed the amount of notes of the bank issuable under the provisions of The Bank Act and of clause (c) of said subsection.

(4) Subsection 16 of section 61 of The Bank Act shall apply to the excess circulation issued under the authority of this section, and interest shall accordingly be payable thereon as if such excess circulation had been excess circulation issued under the authority of said section 61.

(5) No proclamation issued under the provisions of this section shall continue in force for more than thirty days after the beginning of the first session of Parliament held after the issue thereof, unless it is approved by resolution passed by both Houses of Parliament.

(6) Any proclamation made under the provisions of this section may be varied, extended or revoked by any subsequent proclamation, and separate proclamations may be made dealing with separate subjects; but if any proclamation is varied, extended or revoked neither the previous operation thereof nor anything duly done thereunder shall be affected thereby, nor shall any right, privilege, obligation or liability acquired, accrued, accruing or incurred thereunder be affected by such variation, extension or revocation.

5. The Governor in Council may make regulations, not inconsistent with this Act with regard to advances to the chartered banks, and to the said savings banks, the terms and conditions affecting the deposit of securities, and all other matters necessary to give effect to the provisions of this Act.

6. The part of section 135 of The Bank Act immediately preceding clause (a) is repealed and the following is substituted therefor: "135. If the total amount of the notes of the bank in circulation at any time exceeds the amount authorized by this Act and by The Finance Act, 1914, the bank shall, - „

5 George V., Chap. 4. An Act Respecting Dominion Notes.

[Assented to 22nd August, 1914.]

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short Title. 1. This Act may be cited as The Dominion Notes Act, 1914.