estriction on the
Japanese, but the act was disallowed by the federal legislature.

_Finance_.--Since 1871 the decimal system of coinage, corresponding to
that of the United States, has been the only one employed. One dollar is
divided into one hundred cents (L1=$4.86-2/3). The money in circulation
consists of a limited number of notes issued by the federal government,
and the notes of the chartered banks, together with gold, silver and
copper coin. Previous to 1906 this coin was minted in England, but in
that year a branch of the royal mint was established at Ottawa. Though
the whole financial system rests on the maintenance of the gold
standard, gold coin plays a much smaller part in daily business than in
England, France or Germany. United States' notes and silver are usually
received at par; those of other nations are subject to a varying rate of
exchange.

The banking system, which retains many features of the Scotch system, on
which it was originally modelled, combines security for the note-holders
and depositors with prompt increase and diminution of the circulation in
accordance with the varying conditions of trade. This is especially
important in a country where the large wheat crop renders an additional
quantity of money necessary on very short notice during the autumn and
winter. There has been no successful attempt to introduce the "wild cat"
banking, which had such disastrous effects in the early days of the
western states. Since federation no chartered bank has been compelled to
liquidate without paying its note-holders in full. The larger banks are
chartered by the federal government; in the smaller towns a number of
private banks remain, but their importance is small, owing to the great
facilities given to the chartered banks by the branch system. In 1906
there were 34 chartered banks, of which the branches had grown from 619
in 1900 to 1565 in 1906, and the number since then has rapidly
increased. The banks are required by law to furnish to the finance
minister detailed monthly statements which are published in the official
gazette. Once in every ten years the banking act is revised and
weaknesses amended. Clearing-houses have been established in the chief
commercial centres. In October 1906 the chartered banks had an aggregate
paid-up capital of over $94,000,000 with a note circulation of
$83,000,000 and deposits of over $553,000,000.

There are four kinds of savings banks in Canada:--(1) the post-of