The Financial System of Canada: Its Growth and Development by E.P. Neufeld (review)

REVIEWS 299 throughour military historybut too little spaceremainsfor his ostensible topic,our militarytradition.Whilehe establishes the close Britishlinksof all threeof the formerservices, he haslittle timeto explaintheinconvenience of that particulartradition,particularlyin involvingFrenchCanada,and none at all to consider howfar it hasbeensupplanted byAmericaninfluences. Those familiar with R.A. Preston's essay on military influences on Kingstonwill welcome hisextension of that topic,albeitanecdotally, to the entirecountry. G.F.G. Stanley's account of militaryeducation in Canadais devoted chieflyto postwardevelopments. He and anotherparticipant-contributor, Lieutenant GeneralG.G. Simonds, enjoyanotherroundof debateaboutthe meritsof a degree-granting militarycollege. Other contributors offer two viewsof the unificationcontroversy, both from narrowlyfocussed perspectives. Wing CommanderJohn Gellnerurgesus to rememberthat military spendingservescivilian purposeswhile Pierre Coulombe, armedwith datafurnished to theRoyalCommission onBilingualism and Biculturalism, tells us that the socialand culturalcomposition of our armedforces does not reflectthat of thepopulation asa whole.Thisastonishing discovery wouldmatterrathermoreif Mr Coulombe had a sophisticated understanding ofwhythishadhappened. However,the faultsof the booklie mainlywith the editorwho failed to provideuswith coherence (or evencarefulproof-reading) and hispublisher. Therearefrightening rumours thatthiskindof conglomerate production isthe waveof the futurein academic publishing. If that should betrue,theleastwe mustdemandis that editors worka lot harderto earntheir placeon the title page. DESMOND MORTON ErindaleCollege,University of Toronto The FinancialSystem of Canada:Its GrowthandDevelopment. •..r. Toronto,Macmillan,z97•. Pp.xxiv,645.$•o.oo. This is a comprehensive historicalstudyof the institutions of the Canadian capitalmarket.In recentyearsthe volumeof research and writing on this market hasbeengrowing.Royal Commissions have made their contributions as have private scholars, includingProfessor Neufeld. Most of this recent materialhasconcentrated uponthe contemporary scene or uponvery recent times.In it a point of view asto the functions of a capitalmarkethasbeen articulatedaswell asan analysis of the rolesof moderninstitutions in serving thosefunctions. Professor Neufeldhassought to utilizethismodernanalytical frameworkin examiningand describing the evolutionof Canadianfinancial institutions. The bookiswellorganized. It begins withanintroduction thatexplains what a capitalmarketis and does,how the variousintermediaries in it assist in the process of passing savings to investors, and how the regulations of authorities mayhelpor hampertheprocess. There followsa conspectus, runningovertwo 300 THE CANADIAN HISTORICAL REVIEW chapters, of the more detailedmaterialto comelater. Elevenchapters then follow,eachdevoted to thestoryof a particularclass of institution. A chapter on interestratessitsratheruneasily between thesechapters and a concluding onethat summarizes themainfeatures of theevolution of thefinancialsystem. A valuablestatistical appendixfollows.In it thereare two tablesthat include the main fruits of the author's statistical research. In the first of these tables thetotalassets of broadgroups of financial institutions aregivenfor eachyear i87o-i97o, in currentdollars,in constant(•935-9) dollars,and, for the current dollar data, as a proportionof gross nationalproduct.The second table gives, for a detailedclassification of institutions and for eachyearof the last century, the assets of the class of institution and their relativeweightamong institutions. A verycomplete indexhasalsobeensupplied. Professor Neufeld has written his book in a workmanlikeway. It is not poetry;but it is clear,concise prose froma first-class expositor. Many groups will be interested in what he has offered us. Those who work in corners of the financialindustry will be interested in howthe authorfitsthemin themosaic. Students of historywill find the materialherewhichwill assist themin seeing the financialdimension of our Canadiandevelopment. Students of economics and financewill welcome boththe chapters on thepointof viewof thecapital marketand thechapters onparticularinstitutions. The general publiccanalso readthisbook.It is,of course, a specialized book,but its vocabulary is accessibletoanyone whose curiosity islikelytobepiquedbytheritle. In hisconclusion, the authorremarks that Canadahasdeveloped 'a remarkably sophisticated and comprehensive financialsystem and one that is quite flexible.'He notesthe gradualbreakdown of the functionaldistinctions among institutions and regardsthisasa desirable development from the viewpointof increasing the economic efficiency of the capital market. Professor Neufeld suggests that thisbreakdown and the changing patternof concentration within sectors of the industry makes the development of 'an explicitand economically rationalmergerpolicy'perhapsthe mosturgenttaskfor government in its guidingof theevolutionof ourfinancialsystem. WILLIAM C. HOOD CanadianBusiness History:Selected Studies,•497-•97•. Edited by i)^vms. MACrnLLA•. Toronto,McClellandandStewart,i97•. Pp.vi, 346.$i•.5o. Business historyseems to be a major centreof actionin Canadianhistoriography , at leastat the level of graduatedissertations and of need felt by historians.The first collectionof essays in the field, then, shouldgenerate considerable enthusiasm. Or, at anyrate,theprospect of sucha collection did. Readingthe essays gatheredhereunfortunately makesit veryeasyto restrain that enthusiasm. CanadianBusiness Historyisa disappointing, uncreative, often slipshod - in short,bad- book. Any collection of thissortisinevitably a grab-bag of...