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Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

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412 HISTORY OF THE BANKknown as "English stock." 1Such old stock of these banks asmight be held in Britain could be exchanged for "Englishstock"; the old shares received in exchange by the bank mightbe held or sold at its discretion.In 1843 the firm of Viger, De Witt and Company, whichhad carried on business in Montreal for some years as a privatebanking corporation, obtained a legislative charter as La2Banque du Peuple. The bank had been established on theprinciple of an association in which some of the partners weresubject to unlimited liability, and others only to the amountpaid in. As this arrangement was to be preserved, the Actnaturally differs in several respects from the other charters ofthe time. This chapter, however, is concerned only with suchnew features as were contributed to the banking system ofthe country, and it will be found that nothing of a permanentnature was added by this charter, while on the other hand,the bank created by it was required to conform to all theessential banking conditions of the other charters.Between 1845 and 1850 two new banks in eastern Canadareceived charters, but did not <strong>com</strong>e into operation. Thesewere La Banquedes Marchands and the District Bank ofQuebec. 3 In the charter of the latter there was a slightinnovation in the conditions connected with the calling in ofthe capital stock. Subscribers who did not pay their callspromptly were required to pay interest on the amounts due atthe rate of six per cent. They might also be sued for arrears,to be recovered by the usual process of law; but on the otherhand might, ifthey chose, pay in the full amount of theshares at any time in advance of the regular calls.In 1850 the Act to establish freedom of banking waspassed. 4 The immediate object of this, as already indicated,7 Viet.. 1843, c. bra.*7 Viet., 1843, c. Ixvi, reserved for Her Majesty's pleasure, and proclaimed June7, 1844.The respective Acts were 10 Viet., 1846, c. cxv, and 10-11 Via., 1847, c. cxiii,reserved for Her Majesty's pleasure, and proclaimed January 8, 1848.

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