March 27, 1924 (14th Parliament, 3rd Session)

LIB

Frank S. Cahill

Liberal

Mr. CAHILL:

Of course, my hon. friend
knows as well as I do that every man has to be recommended by his home office before he can get to head office, so there is nothing in my hon. friend's contention. Apparently he is not able to get recommended at either place.
We are told that we have the best banking system in the world, that we have very few failures. I have been told repeatedly that in the United States this past year there were four or five hundred failures of banks. That would mean forty or fifty bank failures in Canada, in proportion to our population, and as a matter of fact we have had sixty or seventy bank failures in Canada in the past year. The failure of each branch of the

Home Bank Investigation
Home Bank is the failure of a bank just as much as the failure of an individual bank at any point in the United States. They have several systems in the United States, and I am not competent to speak with authority on any of them, but I do know that in some of the states where the branch bank system is operating-not on the same lines as ours but along similar lines-they have had more failures than in other states where branch banks are not permitted.
I believe that the motion of the hon. member for East Calgary (Mr. Irvine) is very good, but I think that instead of referring this matter to a special committee his motion, or something similar, should be referred to the select standing committee on Banking and Commerce, and I therefore propose to move an amendment:
That all the words after the word " That " be struck out and the following be substituted therefor:
In the opinion of this House, in view of the failure of the Home Bank and of the fact that official prosecutions and inquiries have been instituted, including the royal commission which has been appointed to investigate the facts alleged in the petition represented by the shareholders of the bank and the affairs of the bank generally, and considering that the evidence received and to be taken before the several tribunals will be available for consideration, the Select Standing Committee on Banking and Commerce should be instructed to consider the provisions of the Bank Act, with a view to recommending such amendments to the act as will better protect the interests of the depositors generally and will prevent similar occurrences in the future; and also to consider the report of the royal commission in its bearing upon these matters and with respect to the possibility of saving the Home Bank depositors from loss.
I think that will serve the purpose better than my hon. friend's resolution.

Topic:   EDITION
Full View