Volume 2 - ElectricCanadian.com

DEVELOPMENT OF CANADIAN BANKING 4013. One-half of the capital of the bank to be immediatelypaid in.4. The amount lent on paper bearing the name of adirector or officer of the bank to be limited to onethirdof the total discounts.5. The bank not to hold its own shares or make advancesto itsshareholders on the security of their shares.6. A statement of the affairs of the bank to be preparedweekly, and a half-yearly return compiled from thesestatements to be made to the Government.7. Shareholders to be liable for double the amount oftheirshares.8. The funds of the bank not to be lent on the securityof land or of other property not readily disposable,the bank to hold such property only to the extentthe bank notnecessary for carrying on its business;to own or be interested in merchandise except forthe purpose of realizing on securities held; thebusiness of the baak to be confined to the legitimateoperations of banking, namely, advances uponcommercial paper or government securities, anddealings in money, bills of exchange and bullion. 1Nearly all these conditions were shortly afterwards incorporatedin the charters of the Canadian banks; several ofthem, the third, fourth, fifth and eighth, were virtually inoperation at the time, while the first was already implied. Thesixth was objected to only as unnecessarily exacting becauseof the frequency of the returns. On the other hand, the secondand seventh were strongly opposed. The opposition to thesecond was based on the amount of specie required to be kepton hand at both the branch and the head office to meet thesame notes, and on the serious difficulties of transporting speciein a country such as Canada, but it was the seventh, or doublelThese regulations have already been referred to in Volume I, in which a briefsummary of them appears on page 20.