Volume 2 - ElectricCanadian.com

404 HISTORY OF THE BANKThe practical difficulties experienced in obtaining fromthe conflicting parties in the legislature authority for furtherincreases in the capital stock of the two banks in the UpperProvince, and the prospects of disallowance by the HomeGovernment, induced the banks ultimately to comply withboth Provincial and Imperial requirements.In Upper Canada also several attempts had been made toobtain charters for new banks.These were blocked by theLegislative Council, under the influence of the Bank of UpperCanada. In 1835, however, Allan N. MacNab, 1 a member ofthe Family Compact, and a former director of the Bank ofUpper Canada, managed to secure the passage through theCouncil of a charter for the Gore Bank. 2 In this several newprovisions appeared. No incorporated company was permittedto hold shares in the bank, unless conveyed to it in payment ofa debt previously contracted, in which event the corporationholding the stock was not entitled to vote in the election ofofficers. This drastic clause, however, was repealed in 1839. 3In section 27 is found, for the first time in the two Canadas,provision for the double liability of shareholders, 4 the object,as stated in the Act, being to afford additional security to thepublic against possible failure of the bank. In the event ofit being necessary to wind up the affairs of the bank, andthe president and directors decliningto enforce the doubleliability, the Government might appoint five commissionersto take charge.In the Act of 1836* increasing the capital stock of theCommercial Bank, the seventh section contained a new provisionto the effect that the total amount of paper discountedby the bank on which the name of any director or officer of1See Vol. I, p. 173 et supra.Variously described as c. xlvi, 5 Win. IV, 1835, and c. xxxiv, 6 Wm. IV, 1836,OB account of its reservation for the Royal assent. See Vol. I, p. 176, note.By 2 Viet., 1839, c. xli.4 In 1832 this feature had been incorporated in the charter of the Bank ol NovaScotia. See Vol. I, p. 09.Wm. IV, 1836, c. xxxiii.