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Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

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DEVELOPMENT OF CANADIAN BANKING 409RETURN OP THE AVERAGE AMOUNT OF LIABILITIES AND ASSETS OF THE BANK OFMONTREAL DURING THE PERIOD FROM IST TO 18MONTH ENDING30th 81st 30th 31st 31st 28thLIABILITIES. Sept. Oct. Nov. Dec. Jan. Feb.Promissory notes in circulation, not bearinginterestHills of exchange in circulation, not bearinginterestBills and notes in circulation, bearinginterestBalance due to other banksCash deposits, not bearing interestCash deposits, bearing interest18 18 18 18 18 18Total average liabilitiesASSETS.Coin and bullionLanded or other property of the bankGovernment securitiesPromissory notes or bills of other banks .Balances due from other banksNotes and bills discounted, or other debtsdue to the bank, not included underthe foregoing heads.Total average assetsAlthough, somewhat later, returns were required to besubmitted to the Government monthlyinstead of semiannually,this remained the standard form prescribed in allbank charters and amendments until the passage of the firstgeneral Bank Act in 1870.The attempt to make the currency and banking systemof the country serve the financial necessities of the Governmentby tacitly allowing a bank to increase its liabilities indefinitely,provided the excess over a certain amount was invested ingovernment securities, has already been mentioned. Thisexpedient, which was resorted to for the first time in theamended charter of the Bank of Montreal, and which wasadopted solely with a view to induce the banks to purchase

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