704 THE FEDERATIONS AND THE UNION [PART IV
conditions. On the other hand, an attempt by Quebec to
impose a tax upon the policies of insurance issued by a com-
pany doing business there has been defeated by the Privy
Council holding that the real nature of the duty was a stamp
tax, and that such a tax was not within the powers of the
province! So also with regard to stamps on legal proceed-
ings. On the other hand, it has been held that the Nova
Scotia law could impose a tax on Dominion notes held by
a bank as part of its cash reserve under the Dominion Acts
relating to banks and banking (34 Vict. c. 5).3 Moreover, in
the leading case of Bank of Toronto v. Lambe, a tax on banks
varying with the amount of paid-up capital and number of
offices was held to be direct taxation within the meaning
of 8. 92 (2).4 The question of taxation will be further con-
sidered below.
For a much wider definition of the meaning of trade and
commerce than has been accepted by the Privy Council,
there may be quoted the views of all the judges, and especially
of Gwynne ¢ and Sedgewick? JJ. in the Prohibitory Liquor
Laws case, and of Taschereau and Gwynne JJ. in the fire
insurance case. But the wide interpretation of the term
would, it seems, clearly have been contrary to the scheme of
an Act which mentions particularly so many branches of
trade and commerce as specifically reserved to the Dominion
Parliament, and the desire to explain away those reserva-
tions, though natural, is difficult to satisfy.
! Attorney-General for Quebec v. Queen Insurance Co., 3 App. Cas. 1090.
* Attorney-General of Quebec v. Reed, 10 App. Cas. 141.
* Windsor v. Commercial Bank of Windsor. 3 R. & G. 420.
‘12 App. Cas. 575.
* See [1896] A, C. 348, at Pp. 363, which makes it clear that Russell v. Reg.,
7 App. Cas. 829. does not decide on this issue. as had been thought in
Canada.
° 24 8. C. R. 170, at pp. 204 seq., and see Fredericton v. The Queen,
38. C. R. 505; Reg. v. Justices of King's County, (1875) 2 Pugs. 535.
? 24 8. C. R. 170, at pp. 230 seq. See also Lefroy, op. cit., pp. 551 seq. ;
Quick and Garran, Constitution of Commonwealth, pp. 542 seq.
