May 9, 1944

LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

Certainly.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

John Power Howden

Liberal

Mr. HOWDEN:

When it is paid the banks receive one million dollars for which they have given nothing but service transactions?

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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SC

Norman Jaques

Social Credit

Mr. JAQUES:

When it is paid there will not be any money.

Bank Act-Mr. Slaght

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

May I say to the hon. member for St. Boniface (Mr. Howden) that his statement is not correct. When they credit the account of the finance minister with one million dollars he cheques against it all around, as I indicated, and ultimately those cheques all come flowing back into that particular bank, or nine others, and therefore the banks as a whole. We have to look at the ten of them as one, for this purpose at least. The banks as a whole have on their books a promise to pay another million dollars, and that is an obligation of the bank. Therefore they have done something. They have agreed to pay, and if it was ten dollars and you walked in with a cheque they would cash your cheque and you would go away with the money-the same would apply to a thousand-

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Gerald Grattan McGeer

Liberal

Mr. McGEER:

You never do that.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

I do sometimes, I am afraid. Does the hon. member wish me to follow the second transaction?

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

John Power Howden

Liberal

Mr. HOWDEN:

No. It was the first transaction I had in mind. .

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

It creates an obligation. Suppose the finance minister chequed that whole borrowing of one million dollars to the one firm, the John Inglis company, and they dealt with the bank of Montreal, and that cheque is chequed in the next day and deposited in their current account in the bank of Montreal; the finance minister is then debited with the million dollars. He has nothing, but the bank owes one million dollars to the John Inglis company, and they could come in and take that in currency if they wanted to. That is the transaction.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

John Power Howden

Liberal

Mr. HOWDEN:

I should like to ask another question. The bond is taken to the bank and exchanged for an entry in the books of the bank for one million dollars-

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

And they give you a little passbook too.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

John Power Howden

Liberal

Mr. HOWDEN:

Who owns that money?

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

The bank owns the money. The bank has given you as their customer nothing more than a promise by them to pay you a million dollars when you come and ask for it, and they pool your million dollars with everybody's else million; it goes into one pot, and you do not own it any more. You have exchanged your million for a promise from the chartered bank to pay you a million dollars the minute you come in and ask for it. That is all there is to it.

100-175J

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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NAT

Richard Burpee Hanson

National Government

Mr. HANSON (York-Sunbury):

They give you credit.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

It is bank credit; and ninety-five per cent of the business of this country is transacted with cheque money, bank credits, just in that way.

One word more; I thought I had finished. The owners of the stock of the chartered banks-

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Thomas Vien (Speaker of the Senate)

Liberal

Mr. SPEAKER:

The hon. member's time has expired.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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?

Some hon. MEMBERS:

Go on.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

Thank you. I will not trespass. I shall be but a moment. It is an interesting reflection to know that the owners of the stock of the ten chartered banks of this country numbered on December 31, 1942- I have not the figures for last December- 51,071. That is the number of individual shareholders, corporations and different shareholders. Fifty-one thousand shareholders owned all the stock of the ten chartered banks and, as hon. members will see, that number constituted one-quarter of one per cent of the people of Canada. The other 99} per cent of the people of Canada have not and probably never did have in their lives a bank certificate or a share of bank stock. I venture to say that if a poll of the House of Commons were taken on how many hon. members owned a share of bank stock in their lives, not more than six men would stand.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

Who wants one?

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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LIB

Arthur Graeme Slaght

Liberal

Mr. SLAGHT:

Therefore, one quarter of one per cent of the people of this country is in possession of that tremendous monopoly and the taxpayers of the country are paying the shot.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
Permalink
LIB

Olof Hanson

Liberal

Mr. HANSON (York-Sunbuiy):

Does my hon. friend suggest that the stockholders of the bank paid only par for their shares when he is figuring out the money? I suggest that the present shareholders of the chartered banks paid very much more than that.

Topic:   BANK ACT AMENDMENT
Subtopic:   CONDITIONS GOVERNING TEN-YEAR EXTENSION OF BANK CHARTERS
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May 9, 1944