Volume 2 - ElectricCanadian.com

DEVELOPMENT OF CANADIAN BANKING 407which any individual or corporation was entitled was limitedto twenty. Votes might be given by proxy, the proxies tobe in writing and to be held only by another shareholder, whomust be a British subject, but neither the cashier nor anyother officer of the bank could vote or hold a proxy. Specialor extraordinary general meetings of the stockholders mightbe called, after six weeks' notice specifying the objects of themeeting, by seven of the directors, or by twenty shareholdersowning among them or holding proxies for at least five hundredand fifty shares. The legitimate business of banking is moresharply defined in this Act and additional limitations areplaced upon it. The customary prohibition that the bankshall not hold or lend money on lands or tenements is enlargedto include ships or other vessels, or shares of its own capitalstock or that of any other bank in the province. The bankmust not lend money directly on goods or merchandise, or"raise loans of money," or buy or sell goods and merchandise,or engage "in any trade whatever, except as dealers in goldand silver bullion, bills of exchange, discounting of promissorynotes and negotiable security, and in such trade generally aslegitimately appertains to the business of banking." Itmight, however, take and hold mortgages and hypothtques onreal estate and other property by way of additional securityfor debts already owing. In these requirements may beobserved an attempt to comply with the conditions laid downby the Imperial Treasury for the granting of the Royal assentto future charters.The rapid expansion of the note issue of the Bank ofMontreal rendered necessary a clause permitting the bankdirectors to delegate to other persons than the president andchief cashier the task of signing and countersigning the notes.Notes intended for general circulation, whether issued fromthe head officeor from any of the branches, must bear dateat the place of issue and be payable in specie on demand atthat place. Any office of discount and deposit under themanagementof a local board of directors was held to