1 vo ms masesty me sanes | Si John Power & Son Led. century for its delicacy . of flavor, 4 Of highest standard of Purity. ~. Itis'especially | recommended by the * Medical Profession or account of its peculiar ~ "DRYNESS" J cure the | tion in order to FEEEEE ier counts. The Canadian bank act, which is one of the most advanced of its kind in the world, exercises very strict super- vision over the formation of each careful watch over ite future activi- ties, No bank can secure a charter with less than $500,000 capital, which must be divided into shares of $100, 000 each, and the number of provi- sional directors must not be less than five or more mn ten. No 'wild-cat mining dollar share methods can' be applied to the flotation of banks in al ; The starting of 'a bank is fairly sim- ple. To float a bank with a capital a million dollars, the organizers divide this into a series of hundred shares, which per Syndicate. | . ; Ah aa akg ay od Bl Ua 4 Sy aking way by loans and dis- 'bank as it is born, and kbeps just as - t Liabilities ow how to make more of it Bi willing to pay for its use; wo Capital ..... mh in bio per Top BRORILE re ris wee bank the two standing in the relation of debtor and creditor. Naturally the f o 10 = bank does not let the money lie idle Species and legals if it can help it, but gets it into | C00 TEC TEA Boe Bank premises ... ... .... In the increase of its business the bank now makes loans to its custom- ers, by discounting bills or otherwise and proceeds to issue its own notes, Suppose that the advance amount is $1,000,000 and the bank notes in cir- culation $500,000, the balance sheet would now be as follows : Liabilities-- Capital " Ciroulation Deposits Assots~ Species and legals ... ... .. Investments ....... .... Loans and discounts ... ... Bank promises Thus the original million has become three millions of money working for the bank, which is employed in _dis- comnts, loans, purchasing investment Y, FEB. 16. dually grown and improved nti it § is to-day recognized as amongst it in thy world, and it has been used as a model for banking legislation in a ood many other countries, while of Fite the Americans have been using it as a point of argument for the im- provement, of their own banking sys- . The Canadian legislation puts rig banks in a very enviable position in some ways, for the simple reason banks there can be no stability of business. The Canadian Bank Act was origin- There business -- ats a ® ti tion, because ally passed in 1870, under the admin- hat og ie ol Canaria du Tar nin id rooted ite operations | the greater. the Profits, nd vice versa. | istration of Sit Francis Hincks, as th a in ; dur { far Seyand its capital by B ving de- It is stated by bankers in Can- | minister of finance, and by that act the y Pat same Shen hat o posts, hich abl Sivided inte hick ada that the average proportion . of | right to control banking affairs was kanking. At the = do ime which in boar 8, poyacie on Semand, sapital to liabilities is 124 per cent, centralized with the Dominion govern- : on catalle oh is how i wok Rous _ of ractienlly the bank is doing its | ment. By law the bank must be revis- hy The aupervisstl by the govers. he gids Rich umanily % small - DuSiness the public on the pub- | od every ten years, and so it was until : The bunk of this 'country ns actically | i Rh, Th i t of they, eur % of c's money, and naturally the more it | 1890, when the Hon. George E. Fos- control its entire capital and he ah to the bank, iui. it} an do the more its profits grow. | ter, aided by Byron E. Walker, and a onl capi orm a oh RE uo ke » i The pro is for the managers | committee of bankers framed the the i ve bo ing taggethor idle to re top eough Fig Ying to strike the happy medium of absol- | "great" bank act, which proved so ing claswos, make up the usr ter dopo -- of great 3 as they ute security in capitel without increas- | satisfactory that it has since scarcely ' , Ress Popilation of the country. can be lent on discounts and loans at ing it as to effect the dividends, be- | heen touched. cally, the business of a hank [increased interest without the danger | see---------- is to borrow money from one set of | of being suddenly withdrawn in embar- customers, at a low rate, and lend -it | rossing sums. This is the "borrowed to another at a higher rate. Is uses | capital" of the bunk, and if the in- are two fold." It takes charge of the | stitution makes fair success within a surplus money which people do not | very few years the public confidence how to use profitably, and pays | and money should increass its business the use of it. Then it rein- [to wbout the following figures : I ---------------- "| cause public confidence is always caus- ed by healthy dividends, and public confidence is the very life of a bank. To insure this perfect security with- out unduly raising the capital every bank adopts the expedient of creating a "rest account." Each bank tries to put as much money in this account as possible on the theory that while there are decided objections to too much capital stock' to pay dividends on, there can be none $0 a very large rest account, which is simply the ac- lation of undivided 'profits, set 4x. i SIR FRANC ts ------ x + 2 IS HINCKS. the bank must have at least $500,000 of its capital subscribed, and to se- genuineness of the subsorip- tion' the government rogmires that $260,000 in cash be placed in {he hands of the finance department. These pro- liminaries done'and the necessary ar- rangements made with the govern: ment, 'a certificate js issued hy the minister of finance authorizing the bank to begin business, when the $250,000 guarantee fund is returned. About the first thing that the new does is to isdue a note cireula- tion of the ordinary bills of com- merce, which ' are simply the bank promises to pay the holders their face value, at any time and at any place in the dominion whers they may be presented for redemption. This priv- iloge of issuing bills instead of coins is a very valuable one to the banks, as they are lent to persons borrowing from the bank at all sorts of interest from six per cent wp. As the notes gost nothing more than the expense of printing, it can easily be understood that the banks make good profits in this line of business, Naturally, the government is par- this note circula- teet the public from loss. No bank may issue notes in excess of its paid capital. In addi- tion to this the shareholders of the i i it fails, to pay in as much more as they have al- ready i ticularly careful of {form a fund for the pro ly in d to such an extent en to se cure redemption of all bank bills, but it is not the only safeguard. The gov- ernment coi a charted Nank to put up with the finance ERT aT \ , 96 as - tection of bank ilThe whole of this fund is ap- g ve gone under." Under this liom, there is practically ality of the note 4 bit their money, no matter how bad- ly a bank may have been mishandled, especially at the redemption of the notes is the first claim against the bank's assets. Having secured its charter and cer- tificate, the bank is ready for business to use ite original million dollars to attract other millions Seams the public ich to e its profits. ofit- on the million dollars invest. ook, the bark must con: t of its } bank ke securities and in keeping up a suffici- ent cash reserve to protect the bank agninst any sudden demand. The hunk act demands that not less than forty per cent. of this reserve fund shall be in dominion notes, which is The ways in which a bank invests the public money are always widely extended, but are generally so closely watched that when a bank does go wrong it is nearly due to, dishonesty rather than bad business acumen. The first demand of a bank before parting with its cash, is' absolute security, and that is where the local manager comws in. The commonest form of a bank/s lending is in financing business institutions by discounting their "pa- per," notes and = drafts, etc., or by lending mosey on warehouse receipts or unfinished contracts, which are practically pawned to the banks. It is the business of the bank ger to see that these are only lent to re- liable peoplo--and it is the man who Las the faculty of not lending to shaky credit who wine speedy promotion, al- though he may not become too popu- lur with the bank's clients, Having lent as much as he considers prudent in this way, the banker fig- ures on investing the balance of his money in securities which can be imme. diately turned into cash. This is done by lending "call money" or cash lent to brokers and others on the security of gilt-edged stocks and bonds, which can be turned into money at amy time. © Money lent in this way earns big interest, and must be repaid the "| bank at a day's notice. It is the re- calling of their "call money" which often produces panics on the stock ex- change. In pursuing these transactions the ops on making its origi million dollars grow like a snow ball on the down grade, and within a few vears the original capital becomes a move nucleus around which the pub- lic is kept revolving, at from six per cent. upwards. In a few years its ac count should read this way : Liahilities-- Circulation Noposits. ... .... wu Due to other banks To public ......... ........ Capital ..... . Dividends .... .. Due shareholders Assets Species and legals Notes and cheques |. "hearing in: Dye foreign accounts... ..... gat 0003 lines, and the bank mana aside to meet any unforseen losses. This fund is, of course, employed in the ordinary business of the bank,and its profits go-to swell the dividends. The bigger the rest fund the steadier and bigger will the dividends be, and this wil naturally be reflected in n- creased public confidence, and a pro- portionate increase in the deposits and note circulation, and happy results for the stock-holders. * As a matter of fact the general bank statement exhibiting its earings as on capital alone is not correct, because its earnings should be computed 'on both capital and rest account, Were this done apparent earnings of 7 per cent. would only show profite of about 5% per cent. on the funds actually em- ployed to earn the profits. When a bank publishes its annual statement of liabilities and assets it has to show first its liabilities to the public, consisting of notes in circula- tion and deposits received, and then its liabilities to its shareholders for its capital, rest account and undivided pro- fits, while on the asset side of the shoet it must show how/all this mon- ev is paid out. The bduk act compels this, so that at ledst once a year the public can make a more or less rough guess at the financial standing of eack bank. In the ordinary statement of 5 bank in good shape the total assets imme- diately available for cash purposes amount to 46 per cent. of its total lia- bilities to the public. This is re- garded as the soundest test of the bank's condition, as every bank likes to have as much of its investments as possible of such a character that thev BYRON EDMUND WALKER. {enjoying the best of health. I have so | TORTURED BY INTIGESTION. Dr. Williams' Pink Pills Cured After Doctors Had Failed. Mrs. T. J. Jobin, 368 King street, Quebee, wife of the circulation mana- ger of L'Evenement, is ope of the best known and most estimable ladies in the city, and her statement that Dr. Williams' Pink' Pills cured Bet of a very Severe attack of indigestion will bring hope to similar sufferers. Mrs. Jobin says: "About a year ago, I was seized with indigestion which had an alarming effect upon my health, Day by day my strength grew less, | suffered from terrible headucles, dizzi- ness, palpitation * the heart and sleeplessness. 1 was In this condition for about six months. I consulted two doctors and although I followed their treatment carefully it did not help me in the least. Last October, seeing that instead of regaining my health, 1 was growing worse, 1 decided to try Dr. Williams® Pink Pills. After 1 had tak- en the second hox there was a change for the better, and after taking the pills for 'a month longer the trouble entirely disappeared, and 1 am again much confidence in Dr. Williams' Pink Pills that I always keep them in the house and take them occasionally as a safeguard. Just as surely as Dr, Williams' Pink Pills cured Mrs. Jobin's indigestion they cam cure all the other ailments which come from bad blood. Dr. Wil- liams' Pink Pills actually make new, red blood. That 1s the one thing they do--but they do it well. In making this new rich blood, this medicine strikes straight at the root of such common ailments as anaemia, head aches, and backaches, general weak- ness, nervous debility, neuralgia, rheu- matism, and the toruting weakening ailments that afflict women and grow- ing girls. You can get these pills from any medicine dealer or by mail at 50c. a box or six boxes for $2.50, from The Dr. Williams' Medicine Co., Brock- ville, Ont. Letters For A Lonely Isle. can be promptly turned into cash. At the same time the loans and discounts issued by the bank would amount to between two and three times as much as its capital and rest acgount bined, the cash deposite making the difference. That is where the skill of the hank-! er is needed--to make sure that the vast loaning operations with other people's money' are made along safe com- up ; | months, when there is no regular mail London, Feb, 16.--~The postmaster general has been able to arrange, by the 'courtesy of Mr. Moody, of Fleet- wood, for mails to be sent occasiongl- ly to the Island of Kilda, Inverness: shire, by steam trawlers from Fleet- wood during the winter and spring service to the island. Muiton and fish in Australia rarely cost more than one cent a pound. HON. GEORGE CENNE---------- who can avoid losses and doubtful acpounts is the man the big banks are all looking for with the big salary. Even with the utmost care--and every who tries to secure money from the knows how great that care iderable sums have to be set aside every year by each bank to cover these losses. Since the original passing ar@ dew elopment of - the Canadian Bank Act, system of banking in: Canada hes gra- EULAS FOSTER. Dress Suit For Wrecked Sailor. Liverpool, Feb. 16.--The crew of a steamer City of Dresden arrived at Parkeston, yesterday, their vecsd hav- ing been sunk in collision. The men had lost all their belongings, and were but slightly clad. One of the engineers was attired in a dress suit that lad been lent him. ---- In 1906 the Uhited States imported that without absolute security in the EE ---------- £STABLISHED 1873 $1.00 OPENS AN ACCOUNT ings Department. Deposits of $1 and upwards are received, Jags Sa the highest current rate of interest is allowed. No Delays in making Withdrawals Savings Bank Department in Connection with all Branches. KINGSTON BRANCH J. §. Turner, Manager COR. PRINCESS AND BAGOT STS, F. H. DEACON & C0., | | Members of Toronto Stock Exchange STOCKS, BONDS AND INVESTMENT SECURITIES Correspondence Invited 72 West King Street, TORONTO Long Distance Phones, Main $733 and 6734 Long Distance Telephone Main 5200-01-02 Bonds and Stocks Bought and Sold on Commission Investment Securities Both Listed and Unlisted. Information upon Request Members Toronto Stock Exchange Commission Orders Executed on All Exchanges TORONTO " . This Week ea 2.49 This week we are are selling a lot of broken sizes Women's High Laced Shoes, consisting of Vici Kid, Velour Calf and Patent Colt. These goods regularly sold at $3.50 and $4. See Them in Window HH HATIAAANS HAIRS This Week Only $2.49 ANN KAHAN : ® ; Abernethy's Shoes # MADE IN CANADA BY A CANADIAN COMPANY. Tale PRICES TO SUIT EVERYBODY. | TERMS TO SUIT ANYBODY, ALWAYS LOOK FOR THE NAME THE WILLIAMS MANUFACTURING CO. Cowrany Ornices: MONTREAL, P. Q. ta, TORONTO, LONDON, HAMILTON, OTTAWA, ST. JOHN, N. 8. AGENTS WANTED EVERYWHERE. 256,738,029 cigars irom Havana. M. W. SINPKINS; AGENT, NEWRURGH. » "The Pex A perfect br possible wit} just as good three t you real nourishmer For Malta-Vita is ri nutritive element of the be: malt extract, The malt e wheat, converts the starch o sugar, makes it easy for eve: and adds a pleasing taste w foods sweetened with su; Malta-Vita with cream or INDOOR SPORTS Men of sedentary habits req exercise. The inventive genius with physicians knowledge has inv ed. EXERCISES That will develop the muscles almost any part of the body sired. For that tired, slug feeling, make a selection of s good Exerciser from our stoc Sporting Goods. ANGROVE BRO 88 and 90 Princess St. RELIABLE FOOTWE FOR BOYS Just what you want for time of year. something 1 stand the wear and tear. Inan't fail to see our B fore you purchase Our Price $150 and $1. vs', L H.Jennings, King You cannot possibly have a better Cocoa than EPPS"S A delicious drink and a sustainii food. Fragrant, nutritions ai economical. This excellent Coc maintains the system in robu health, and enables it to resi winter's extreme cold. COCOA Sold by Grocers and Storekeepe in }-Ib. and }-Ib Tins. « Appendicitis Less Fashiona Londom, Feb. 16.--To a jury a! ston-on-1 hames, last night, Dr the coroner, remarked that he we to say: that appendicitis was ? ing out of fashion. INSURANC LOOK AT A MAN IF HE CANNOT EVER HAD RHEUMATISM So you see how it bars happi to prevent and cure -- the gre South Americ is the effective means, and ones" from such a cause may to oneself, it is one of the m should take in dead earnest. ailment that flesh is héir to h heed or suffer the consequen experience or observation ? numbness, aching muscles, § The great South American Rl and it gently and effectually ¢ gets at the root of the evil a cases cured in one to three dz the best and surest cure they ALL DRUGGISTS A SOUTH AMERICAN NER! rich ahd re! --and that "801 abn