&'^ A/. o^;\'^Tx% IMAGE EVALUATION TEST TARGET (MT-3) ^4;^^ 45 4io WJ'.:> v: . %" <*/ %" 1.0 I.I '° IK lilM Hi ffi IIIM , III 2.0 1.6 A 'c3- ^ '% o 7 ///. Photcgraphic Sciences Corporation 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 872-4^03 A ^ 'q"^" ^\ '% V r^ 6^ ^U ^' CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microroproductions Institut Canadian de microreproductions historiques 1980 Technical and Bibliographic Notes/Notes techniques et bibliographiques The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. 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Maps, plates, charts, etc., may be filmed at different reduction D^tios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent f>Ue filmds d des taux de reduction diffdrents. Lorsque le document est trop grand pour Stre reproduit en un seul clichd, il est filmd d partir de Tangle supdrieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. ' es diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 Ko. id. THE BANK BAROMETER. OLD TABIFF. NEW TABIFF. How the Country Went to the Dogs Under the O ld Tariff. THE HEW TABIF F BESTOB ES PBOSPEBITY Great Increase in Ciroulatioti— Business Develops— Overdue Notes and Debts Decrease— Bead the Record. BAnK AND DOMINION STOTK GIRCVLATION. Tbl8 ia cje of the oest, if not the very beet lest of the condition of l)U8iaeM in Canada or anr other conntry. The following table will ihow how bunincss has been UerelopioK during rrccr;t yeiurs. The circulation ia made up from tbe leturna of the chartered banlsB aa to banli uotea, and fruni the publiehed nlatementa of the QaTernment as to Domic 'an notea. The amount ot the latter of largo denominatioaa held by tbe bnnlia ia not inclnded. Thi tkiek linei rtpreunt the old lariff yean, and the lighter linet ihe new tariff year:' A glance at theae lines for tbe yeaia 1874-79 will ahow that in ihe old tariff yeate the circulation waa amall and dnlDcMed down year by year. Another glance will show that from 1880 under the National Policy the circulation h^.8 grown from $31,700,000 to $43,- 600,060, which latter ia the largeat ever known in the banking history of OaLadaT Oct. 31, 1S73. ■ 9.13.500 OOO- .15,700,000- 3» 200,0OOa :S7 iiOO,O0Oa 87,ffOO,OOOa 1874... 1875.... 1876 ... 1877.... 1878... 187».... 1880... 1881.. 1888.... 188S.... 1884.... 188S.... 1886 ... December, 1886... 48,600,000- 35,S0O.O0Oii 3A,:tOt),anka during the two months of September and October of each year. The blaci' lloea represent the old tariff years, and the lighter linea the present tariff i Ye.\r. 8181,676,350 145,036 W07 I TbeM loans and disoounts at tlie end of December last amcanted to $171,702,000. Here it will be noticed that the general busineaa of the country, the importing and ail other branches of trade and commeice, went steadily down up to 1880, and waa tbe last to be beneficially affected by tbe Natibnal Policy. Aa apccial b'lincbes of industry felt tbe re- viving influencea of tbe National Policy, the general bualneaa also felt the same. In 1881 tbe general trade, as registered by tbe discounts given by tbe banks, took a leap forward, and needed $26,000,000 more for Its autumn business. In 1882 it had taken another leap for- ward, and it no^eu $54,000,000 more than in 1880. Tbe next . rears were yea'S of very deep depression all over the world, and Canada's generjl busineaa felt tbe effects to a certain degree, tbe diacounta for the autumn monlbs of 1884 and 188s dropping down below tbe amount needed In 1882. But while other countries felt tbe depression very severely, Canada felt the deeper depression of i883-86 far less than she felt the slighter depreaaion of 1 876-/9' T'la discounts of I88S — the lowest of tbe recent depression — were $38,000,000 moretlian: those of the lowest year of the earlier lepreeaion. That later depression waa felt for a much' shorter period, and iu Heptrmbur and October of las^ year tbe uiejnunta had riseni to vitbin $7,000,000 of tbe boomio,'; year of 1882. The discounts of December show that the< increaao continues, the amouot required for that month beiug $12,000,000 more than that, for December, 1886. Placing the hand upon the business pulse of tbe country, we Bud that under tbe old> tariff it b<'\t feebler and feebler each year ; tbat the patient too': a long lime to recover fronii Ibe depression of tbat period ; that when Ihe Ionic of the National Policy fairly permeated; the system, tbe pulae beat vigorously, tunning up to 173 ; that the tbe vigor of constitution, thus (cquired enabled Ihe country to withstand the attacks of the epidemic oi Iradtt dttprexsiom viciling all other countries so severely and that in cunsequeuce of its protected oondition tbe pulse only went down slightly fur a couple uf veais and bounded up again rapidly, not- withstanding that In the lost year the Canadian Pacific railway had pracliciilly ceasud borrow- ing from the banks. In fact, taking Ibis latter circumstance Into accoiiut, it may be faid that the general business of tbe country, as indicated by tbe bank discounts, was better tiian is. any previous year. The National Policy has been the friend of the general busineas man. ATEBDITK HOTEIi AK» DEBTS. These represent the amounts at the end of each month which the banks have not been able to collect from their cuetomers. When times are bad, people cannot meet their notes when they fall due. Kvery business man kuows how it ia himself. A. has a note in the bank which bt< has to pay on the 30th of the month. Money comes in slowly. B.,who owes him, falls. C. " cannot possibly settle tbat little account to-day." A. worries over the thiug, passes a sleepless night, and when the 301u comes cannot lift his note, which goes to protest, piling expenses on to him. B. C. D. and all the rest of tbe alphabet find themselves in the same Lox. But when limes are good, everything ia different. It is easy to get money. It allps ■ from hand to hand as lively as a telegram from one town to another. The result ia tbat in 1i)ad times there Is a great accumulation of overdue notes and debt^ . In good limes the accumulation is cleared of to a very largo extent. Hence the proportion of overdue notes and debts due tbe banks to the whole amount' of money loaned by the banks ia a capital test of the condition of the business of the country. Tbe followiDg table shows how many dollara and cents were at Ihe end of October each year overdue and unpaid in every $100 borrowed from the ba^ks. The thick lines' rep eseni I he old tariff years ; the lighter lines the new tariff years : — Oct. 31. 1878. $ Overdue on each $10p. . 98.07-^— 1874... S.OSi 4.73I 4.30I 4.45a 4 56a 4.«Oa 4.84- 8.68- l.»0- 8.45- 8.57- 8.45- 1.68- 1875.... W76.... 1877... 1878... 1870. . . . 1880.... 1881.... 1888. . . . 1888.... 1884.. 1885.... 1886... November, 1886... 1.50—* InDeoembcr, 1886, the overdue notes and debts reached the lowesf point they have- ever reached in the history of Canada, being then bnt $1.63 on each $100. Tou will see at a glance that as soon as Oattwright'g tariff began to work— !n 1819— up went the amount overaoe. the banks' customers could not raise the money. This went on getting worse and worse until in 1871) tbe busiueas of tbe country, taken aa a body, had overdue in the nan as at llio end of the month of October nearly $5 out of every $100. One-twentieth part ol all thn money borrowed was overdue and could not be paid. Tbe National Policy began to do its work In 1880, and busineaa began to improve. In oonseqiience, the overdue notes and debts began to get leas in amount. The country tided over tue years 188.3, 1884 and 1885— which in other counties were the aevereat yeara of depression ever known-wlthout feeling the depression nearly as much tt ^t, > <^ei"'e»»'"n P«rlod under the old tariff. Fhen last year It recovered Itself at a bound, aud in Deoombe: last the overdue notea and dehia were the unalloat snm »nd the smallest amount on each $100 ever known slnct Confederation. W hat nas done this? The Liberals predicted ruin worse than any which betel th« co nlry under tnelr plan The country wati attacked from •ulalde bv a aeverer depression than ever Known, yet it stood up against the attack and recovered Itself almost Immediately. Thn answer is, the fence of the National Policy waa up, and kept in good repair by Its friends, ana tne resnit waa oiilsldora could not lo easily get in and make of Canada a slaughter mar. ket like they did under the old Uriff. !,„ "P"^**'' of the bridge that carries yon safely over the stream. Don't let anybody -!2!S .1 "T'?! .?*•'' "* '^'*°'*'' '° • Po«ttlon to walnh over It. In a wortl, vol. tor' Kood tl; V i and the National Policy.