In the United States Banks pay direct tax of one-half of one per cent. on their notes, which are backed by $100 in gold for every $90 of issued notes. The gold to redeem the currency is in Uncle Sam's vault, and he is responsible for it.

The Banks of the United States must buy their currency from the Treasury of the Republic by depositing gold at ten per cent. over par, or the gold bonds of the United States, which bear only two per cent. interest and issued especially for banks.

Nearly all the Saving Banks of New York pay interest at four per cent. per annum to depositors, therefore the Banks pay heavily to the public for issuing notes.

Direct and indirect, they pay about $2.45 per cent. uer annum for the privilege of issuing notes. The Canadian Banks pay not one cent, except the cost of the paper and the engraving, against which they get all the benefit of lost and destroyed bills, which in the United States inures to rlic.

The Banks of the United States lend money to farmers and manufacturers cheaper on the average than do the Canadian Banks. The Canadian Banks don't often lend to farmers, however good, and never when money is tight.

THE BANK OF Belgium and ITS OBLIGATIONS TO THE STATE.

The Bank of Belgium pays the State for the privilege of issuing notes, does all the Government business free, discounts small notes as low as $2, and at an average rate not higher than three and a half per cent, per annum. From its net earnings it pays the State fully fifty per cent. more than it pays its shareholders in dividends. The State appoints the President of the Bank and the Bank pays his salary. Truly the Bank of Belgium does not own the Parliament and Government of Belgium.

THE BANK OF NORWAY.

The Bank of Norway pays tax on its notes and half the Bank's profits from six to ten per cent., and all above ten per cent. is divided by the Bank getting one-fourth and the State three-fourths.

NOTE. A share of Bank profits returning to the State is equally as just as the Gas Company of Toronto being obliged.

to return all profits above ten per cent. to gas consumers by a reduction in the price of gas, and all increased amount of shares issued are sold by auction in small lots. No meloncutting permitted.

THE BANK OF AUSTRIA-HUNGARY.

The Bank of Austria-Hungary pays heavy taxes on its notes in circulation, and the Empire claims all profits over seven per cent. on the actual paid capital.

NOTE. The Toronto Street Railway Company returns to the Treasurer of Toronto fully one million dollars per annum for its franchise. Why don't the Banks of Canada pay to the Dominion Government a share of their enormous earnings which their franchises enable them to make?

THE BANK OF FRANCE.

The Bank of France, notwithstanding its great service in war and peace to the Republic, pays stamp duties and interest on its currency amounting to several million dollars per annum; loans permanently to the Government of France free of interest, nearly fifty million dollars, and does all the Government business without charge; also lends to the Government of France thousands of millions of francs at one and two per cent. interest. It returns to the State threefourths of its earnings over five per cent. and one-eighth of the entire charge on discounts.

The discount rate, unlike Canadian Banks, is alike to all. In addition to the above conditions, and others too rumerous to specify, it loans many million francs every year to farmers, through their agricultural societies, for purely agricultural purposes at two per cent. per annum. Is it any wonder that the farms of France are so productive, and that France is not alone the richest nation on earth, but the controller of the money markets of the world?

The Bank of France in no sense owns or controls the Government or people of France. The interest and welldoing of the people demands and receives from this great institution the first consideration. Herce French farming and manufacturing industries are amongst the most prosperous in the world. During the past thirteen years the rate of discount has only changed ten times and has never exceeded four and a half per cent.

Yet even the above conditions have not been considered sufficiently favourable to the State, for under the new law which came into effect on January 1st, 1912, the share of profits to the Government has been much increased and the Bank is obliged to lend to the Government, free of interest, an additional one hundred million franas, and twenty million francs also free of interest or charge, in aid of new and desirable industries, as directed by the State. Surely the Bank of France does not control the Government or the people of France.

THE BANKS OF ITALY, SICILY AND NAPLES.

The Banks of Italy, Sicily and Naples pay to the Government of Italy more than two and a half million dollars per annum as currency tax. They are compelled to lend to the Government money, as required, at one and a half per cent interest. They pay to the Government one-third of all profits from five to six per cent., and one-half of all abore six per cent. The Banks of Italy don't own the Government of Italy.

NOTE. The Government of Ontario, with perfect justification, taxes tavern-keepers a substantial percentage on all the bar receipts over an amount which is supposed to represent the cost of doing business. This is the price of obtaining a public franchise of special value. Query: Have the Canadian Banks not a specially valuable franchise, and should they not be taxed as well as tavern-keepers? Let the Bank lobbyists explain why, and the Bank directors on the Banking Committees of the Senate and Commons stand up and answer.

THE BANK OF HOLLAND.

The Bank of Holland for its franchise loans to the State. fifteen millior. florins, on which no interest is charged, does all Governmert business free, and apportions the profits as follows: 1st, to capital, three and a half per cent. as a first charge: 2nd, twenty per cent. of remainder to the Reserve, which must not exceed twenty-five per cent. of the paid-up cash capital; 3rd, three per cent. of residue to directors' fees, commission, etc.; 4th, of the remainder, one third to the shareholders and two-thirds to the State.

THE BANK OF SWITZERLAND.

The Bank of Switzerland, for the privilege of doing business, pays to the Republic thirty centimes per capita for the first fifteen years, after which eighty centimes per capita is levied, at which figure, if imposed on the Banks of Canada, would realize nearly one and a half million dollars per annum. The Rest or Reserve must never exceed thirty per cent. of the paid-up capital, and the profits are divided as follows: four per cent. to the shareholders and the residue to the Federal and Canton Governments in two-thirds and onethird, respectively. The thrifty and shrewd mountaineers have never bent their necks to the moneyed interests, but ever kept in view" the greatest good to the greatest number," and largely through their intelligent Bank Act take high rank. as manufacturers of textile fabrics and machinery of all kinds, though there is not a pound of coal or iron mined. within her gates. The Bank of Switzerland was not founded nor does it exist to make money for the favoured few, but for the good of the Republic.

THE IMPERIAL BANK OF GERMANY.

The Imperial Bank of Germany is allowed to pay its shareholders all the net profits up to three and a half per cent. From the surplus twenty per cent. is allowed to be set aside as a Reserve so long only as it does not exceed twentyfive per cent. of the actual paid-up capital. If there is any residue the shareholders get one-fourth and the State threefourths; but no matter however great the earnings of the Bank be, the shareholders must never receive more than six per cent. on the paid-up capital.

The discount rate is alike to the small and large borrowers, and the Government of Germany watches over the interest of the farmers, manufacturers and traders. The President and Vice-President are the Chancellor of the German Empire and the Finance Minister of Prussia. Notwithstanding the exacting conditions imposed on the Bank the State receives annually from the Bank as its share of the profits about ten million dollars. In Germany the interest of the people has the first place, and the State is paid for the value of the franchise, which in Canada is a gift enterprise to the moneyed guilds.

The Imperial Bank of Germany has no monopoly in banking. It is in healthy competition with the Deutcher Bank, the Dresdner Bank, the Banks of Baden, Bavaria, Prussia, Saxony, and other Banks, all of whom have to pay their respective States for the right to do banking business. The Banks of Germany don't own the Germanic Empire or people.

THE BANK OF SPAIN.

The Bank of Spain, as one of the conditions of its charter, loans the Government about thirty million dollars in our currency, free of interest, pays ground tax, stamp duties, and one-sixth of the entire earnings of the Bank.

SCOTCH BANKS.

The people of Canada are frequently told that our banking system is based on the Scotch banking system. It may be in some features, but the Banks of Scotland, unlike Canadian Banks, pay 8s. 4d. per £100 tax on the issued currency, which is nearly one-half of one per cent., and the Scotch Banks pay a special business tax of $300 on every head office, $150 on every branch office, and about $16,000 per annum per bank for stamp duty. Altogether the Scotch Banks pay to the Crown $500,000 per annum for what the Banks of Canada get for nothing.

The Banks of Scotland establish a weekly uniform rate of discount. The stock broker and the exploiter of foreign enterprises are said to pay the same rate charged to the farmers, merchants and manufacturers. There is no double liability on the shareholders, but there is greater security to the Bank creditors, for several of the Banks are unlimited liability to every shareholder, and the remainder of the Scotch Banks have only twenty per cent. of the subscribed capital paid up. There is no limit to the liability for the redemption of the notes. The Scotch Banks specially aid farmers and cattle and sheep raisers before harvest and shearing time by discounting joint notes at a rate never exceeding one and one-half per cent. above the Bank of England rate, and only charge interest on the daily debit balance.

In Canada the farmer is the first man to feel the squeeze and the last to receive assistance, and then only after the demands of the large centres have been served.