Volume 2 - ElectricCanadian.com

DEVELOPMENT OF CANADIAN BANKING 393relieving the bank from the liability. No one, except theofficers of the bank, might inspect the account of any individual.The bank was to pay half-yearly dividends from its profits.Returns were to be made to the stockholders at each annualgeneral meeting of the bank, and these had to show the totalamount of debts due by and to the company, notes in circulation,bad or doubtful debts, and the profit and loss account.Such were the essential features of the articles of associationof the Montreal Bank, and they still remain the basis of theCanadian banking system, with the addition of such detailsand developments as the expansion of the country and itstrade and finances have required.Although no express provision was made for the establishmentof branches of the Montreal Bank, yet authority forthis was understood to be included in the general powers givento the directors, and it was exercised by them, shortly after theestablishment of the bank, by the opening of a branch inQuebec. The same general authority was considered sufficientto enable the bank to issue notes of any denominations fromone dollar upwards. The fact that the denominations of thenotes were expressed in dollars rather than in Halifax currency,which was the legal money of account, was a sign of the closeconnection between the business and financial interests ofCanada and those of the adjoining American States, andconstituted a prophecy of the ultimate adoption of the decimalcurrency as the Canadian money of account.in 1817.The Montreal Bank had applied for a legislative charterA bill for that purpose was introduced and was underconsideration when the legislature was prorogued. Shortlyafterwards, in the same year, the bank went into operation asa private company. The following year, 1818, a bill to incorporatethe bank passed both branches of the legislature, butwas reserved for the expression of the Royal pleasure. Thiswas, however, delayed indefinitely, and the bill was thus killedby a pocket veto. The bill was again passed by the legislaturein 1821, but it was not until May, 1822, that the Royal assent