Volume 2 - ElectricCanadian.com

414 HISTORY OF THE BANKsecurities bearing interest at six percent. Each bank wasrequired to redeem its notes in specie on demand, but the noteshad the privilege of being receivable at par for all public dues.Should any bank fail to redeem its notes in specie on demand,it must be closed by the Inspector-General, and a receiver beappointed by the Government to wind up its affairs; the securitiesdeposited with the Government were then to be sold andthe notes outstanding became a first charge on the assets. Inthe event of voluntary liquidation, somewhat similar conditionsapplied to the redemption of the notes. Each bank was requiredto submit semi-annual statements to the Government, 1differing somewhat in detail from those required from thechartered banks, but covering much the same ground. Thegeneral expenses of administering the Act were to be chargedto the banks operating under it and might be taken out of theinterest on the securities deposited with the Government.The existing banks, without surrendering their charters, werepermitted to avail themselves of the provisions of the Act tothe extent of depositing securities with the Government andobtaining in exchange special notes which had the privilege ofbeing receivable for public dues of every kind. Such noteswere to be a first claim upon the total assets of the bank andwere exempt from the tax on bank-notes.It will be observed from the foregoing that the chieffeatures of permanent interest contributed bywere:c.lik).this measure1. It was the first attempt to enact general legislationapplicable to all banks.2. It made the first effective provision for definitelyconnecting the Government with the issue of papercurrency.3. It made bank-notes for the first time a first chargeon the assets of the issuing bank.Naturally, there were subsequent modifications of thelThese statement* were subsequently (in 1851) required monthly (14-15 Viet.,