Bank of Montreal

“ The Montreal Provident and Savings Bank, which has just been projected, under the patronage of the governor-general, and which is to receive deposits of from one shilling and upwards, is a patriotic institution, as the directors and all concerned have only the advantage of the entire community at heart, receiving nothing for their services, and desiring, chiefly, to extend, by this means, the basis of social order and morality, and religion. ”

“ If the Bank of Montreal endorsed a financial scheme it was a go. Only one thing seemed to lie in the way—the willingness of the bondholders to sell out at a figure which our four Canadians could pay. Mr. Hill was for going to Holland, and interviewing the bondholders, personally. Stephen, more astute in big finance, said, bring them over here. Hill could not fetch them, Kittson couldn't and Donald A. Smith couldn't, because there was no dog-sled line to Amsterdam. ”

“ Canada is still a young country, not yet done with pioneering, and its banks must lend a hand in promoting its development. When a branch bank is opened in a tent or shack in a new mining camp, the people know that the manager is there to give them service, and that he represents a strong institution with millions in assets. A remote fishing village or new paper-mill town is thus provided with banking facilities quite as effective as those of Montreal or Toronto. ”

“ Judged by this standard Francis Wolferstan Thomas was a most successful man. Along strictly business lines, too, his advancement was continuous until he stood among the prominent representatives of banking interests in the country, the growth and development of The Molson’s Bank of Montreal being attributable in large measure to his efforts and sound business judgment. He was born at Moorwinstow, Cornwall, England, January 9, 1834, and was educated at King Edward VI School in Sherburne, Dorsetshire. It was the family wish that he should enter the priesthood of the Anglican church ”

“ The statistics of bank clearings at the principal centers also serve to illustrate the financial growth of Montreal and of Canada. In 1892 there were clearing houses in operation at four cities—Montreal, Toronto, Halifax and Hamilton. ”

“ These great industries impart to the local trade an extraordinary amount of activity, which is further enhanced by the well-known fertility of the surrounding agricultural region, and moreover, provides business for a local bank and two branch banks, in addition to the business of the same kind done in Montreal. When a stranger visits this pretty little town, he is always struck by the pervading air of ease, progress, and prosperity. Its buildings are noted for the remarkable taste shown in their construction. ”

“ They are the work of a newly-formed colonial company, and are worthy to take rank beside any which have been manufactured by the rival companies of New York. The design, as we stated last month in noticing the 15c—the first of the set to appear—bears a resemblance to that of the lower values of Nova Scotia, but shows the Queen's head turned to the right. The new “British American Bank Note Company, of Montreal and Ottawa”, has done well to copy so good a device, and certainly has not [Pg 32] spoilt it, as the English engravers did in the four penny South Australian. ”

“ As his worth and business talent became recognized his cooperation was sought along many lines and when keen business judgment prompted his investment in any interest he was almost at once accorded voice in the management. He became a promoter of the New York Daily Graphic, the Consolidated Bank and of the Montreal & Sorel Railway, now a part of the Delaware & Hudson system. As a business man, his position was second to none and his record was one which any man might be proud to possess. ”

“ Thomas passed away on May 18, 1900, and the Montreal Star in an editorial said: “In mourning the death of Mr. F. Wolferstan Thomas, Montreal sorrows for the loss of one of her most prominent and useful citizens. A successful banker Mr. Thomas was, as the growth of Molson’s Bank under his guidance shows; but he was more than that. He was a citizen in the fullest sense of that much abused word. At every point he bore the duties that attach to citizenship duties, that far too many busy men neglect. ”

“ Street Railway, and is vice president of the Molson’s Bank and the Sun Life Assurance Company, while he is a director of the Atlantic Sugar Refinery, the Standard Clay Products, Limited, the Crown Trust Company, and the Illinois Traction Company. One of the local papers said of him: “It is doubtful if there is a more active man of his age in the city of Montreal.” What he undertakes he accomplishes, and he utilizes opportunities that many others have passed heedlessly by. Moreover, he has the ability to unify seemingly dissimilar elements, coordinating them into a harmonious whole. ”

“ On February 27, 1872, loyal Montreal observed the day as one of thanksgiving for the recovery of the Prince of Wales. On April 27th the intense interest of Montrealers in the new railway culminated in the voting on the million dollar railway subsidy. October 2d of this year saw St. Patrick’s Hall burned down; a run on the City and District Bank on the 7th, which was stopped by a citizen’s large deposit and by the timely advice of the Rev. Father Dowd, the pastor of St. Patrick’s parish ”

“ Howard Winthrop Pillow is the Montreal manager for the British American Bank Note Company and is vice president and one of the directors of that corporation. His position as one of the younger business men of the city is enviable. He was born in Montreal, May 9, 1883, and is a son of John Alexander and Annie Elizabeth (Hillyer) Pillow. He attended Bishop’s College School at Lennoxville and for two years was a student in McGill University. With liberal education to serve as the foundation, he has gradually worked his way upward, the exercise of effort developing his latent powers and talents. ”

“ It is not the Director who borrows from eight to ten thousand pounds in bank notes, that assures to them the profits that flow from the slow return of their bills, the issue of which they increase in proportion to the hope they have that they will come slowly back. Those large borrowers, who pay interest, throw into circulation bills as soon as they have received them. Those who withdraw them from circulation, as keep them in their hands are the mass of citizens, who keep by them trifling sums of ten an twenty pounds, or more, for their current expenses. ”

“ Although Montreal can claim only about one-third of these institutions as her own, in the sense that they have head office in Montreal, yet it is the case that the financial development of the city has been promoted by the growth of practically all of the banks.
Probably there is no other country in the world able to show such a record of advancement. In the case of eighteen banks with resources in 1890 of $215,221,000, the increase has amounted to $1,225,000,000, or nearly six hundred per cent, in less than twenty-two years. ”

“ Each institution clears within itself every day a very large aggregate of transactions.
The banks of Canada originating from Montreal now have an international reputation. The greatest financial institutions and the most famous financiers of Europe and America regard our leading banks as worthy of their respect. Our banks have established their branches in the United States, Mexico, the West Indies, Newfoundland, and in England and France; and they do useful work in all those countries. ”

“ If a customer desires to obtain second or third rate securities, being eager for a high rate of return, [Pg 431] a bank can accommodate him, not by selling him out of its own stock, but by negotiating the purchase of the desired securities in New York or London.
As the wealth in Canada increases and idle capital accumulates in excess of its immediate needs, this financial side of the business of Canadian banks will doubtless expand. It may, indeed, during the next generation or two greatly expand and become an important feature of the chartered banks. ”

“ Financially, Canada is part of the United States. Fully half the gold reserve upon which its credit system is based is lodged in the vaults of the New York Clearing House. In any emergency requiring additional capital Montreal, Toronto, and Winnipeg call on New York for funds just as do St. Paul, Kansas City, and New Orleans. New York exchange is a current and universal medium in Canada and is in constant demand among the banks. A Canadian wishing to invest in securities that may be quickly marketed commonly turns to the New York market for stocks and bonds. ”

“ But the abolishment of this redemption system would at once give Canada a new banking system. The bank note is almost the sole circulating medium in Canada, and the people have confidence in it because it is tested every day at the clearing houses and proves itself as good as gold. This daily test would probably not take place with the same regularity as now if the banks did not have branches or if they were obliged to deposit security against their issues. Canadian banks are national, not local institutions. ”

“ Poor management or bad times, under your system, may bring disaster to a single bank, whereas with us losses in any branch would be easily absorbed in a great volume of business covering the whole country, and the shock hardly felt at all. Under our system it is a simple matter for a bank to concentrate its funds in the districts where they are most needed, and money flows easily into the channels where there is the greatest demand. This is of the utmost importance to Canada, for we have limited capital, and therefore must keep it liquid at all times. ”

“ That the chartered banks of Canada are financial as well as commercial institutions is evidenced by their holdings of stocks and bonds. These securities represent partly an investment carried as a secondary reserve and partly a business carried on for the benefit of their customers. In Canada the demand for long-time investments is not large, but whatever market there is for securities is mainly in the hands of the chartered banks. An investor seeks the advice of a bank manager and often is able to obtain from him securities which satisfy his needs. ”

“ And as Canadian banks are not required to keep a legal reserve against their demand liabilities, there is no reason why the idle gold in their reserves should not be sent to Montreal to form the basis of new note issues, especially when it is considered that the gold may be recalled at once when no longer needed to cover notes. ”