Volume 2 - ElectricCanadian.com

406 HISTORY OF THE BANKAfter a virtual interregnum of about four years, the needfor reconstructive and unifying legislation as regards currencyand banking led to the introduction of a series of measureson these subjects during the first session of the united legislature,in 1841. The Bank of Montreal obtained a newcharter, 1 giving it authority to increase its capital stock byanother 250,000 currency. In this a number of new featureswere introduced and some older ones were developed. Its fieldof business, including the future establishment of branches, wasnow extended to the whole of the new province of Canada. 2The revised qualifications for directors required that all ofthem should be natural-born or naturalized British subjects,who had lived seven years in Canada and three consecutiveyears in Montreal, or within seven miles thereof, and thatthey should each own at least ten shares of fully paid-up stock.Seven of the directors in office at the period of the electionwere to be re-elected for the following twelve months. By-lawsmade by the directors were to be approved by the shareholdersat a general meeting. The president was the only directorpermitted to receive a salary, but he might be paid a sufficientsum to enable him to devote his whole attention to the affairsof the bank. Bonds were to be required from all the leadingofficers of the bank, the amount to be furnished by the chiefcashier, afterwards known as the general manager, being fixedat not less than 5,000. The votes of the shareholders werevalid only when their stock had been held at least three monthsprevious to the voting, and the aggregate number of votes to^ Viet, 1841, c. xcviil*A general Act (4-5 Viet., 1841, c. xcix) was passed at the same session to enablethe banks heretofore chartered by either Upper or Lower Canada to carry on theirbusiness throughout the united province. It stipulated, in the case of Upper Canadabanks opening branches in Lower Canada and issuing notes therefrom, that the notesshould bear date at the place of issue, and be payable on demand both at the placeof issue in Lower Canada and at the head office in Upper Canada. The Act was notto come into force until the bills extending or renewing the charters of the three LowerCanada banks, the Bank of Montreal, the Quebec Bank and the City Bank, shouldhave received the Royal sanction. This Act was reserved for Her Majesty's assentand was proclaimed April 27. 1842.