Volume 2 - ElectricCanadian.com

DEVELOPMENT OF CANADIAN BANKING 445under the provisions of the Act from the tax on note circulation.Each bank was bound to receive its own notes at par atall its branches, but need only redeem them in specie orDominion notes at the head office and at any other place whereit chose to make them payable. Dividends were limited toeight per cent, per annum until such time as a reserve fund equalto twenty per cent, of the paid-up capital should have beenaccumulated, but it was unlawful to pay any dividend or bonusthat would impair the paid-up capital. Any bank suspendingpayment of its liabilities in specie or Dominion notes for ninetydays forfeited its charter, except for the purpose of enabling itto be wound up. The double liability of the shareholderscame into force six months after the date of suspension, evenif all the assets of the bank had not been realized. The oldermethods of voting at shareholders' meetings were greatlysimplified by a clause allowing a shareholder one vote for eachshare he had held for three months before the time of voting.Details incidental to the management of the affairs of thebanks, such as the number and qualifications of the directorsand their remuneration, were left to be regulated by theshareholders at their meetings. As is necessary in a generalAct there was more flexibility in the regulations than it hadbeen customary to permit in the charters of individual banks.The monthly returns to be made to the Government,which were intended for publication, were very considerablyamplified, chiefly by an increase in the number of headings.Thus, instead of the deposits being classified as interest-bearingand non-interest-bearing, they were classified as payable ondemand and after notice, government deposits of both classesbeing also shown separately. Balances due to or from otherbanks were divided into two classes, to distinguish banks inCanada from those not in Canada. Five headings wereprovided to take the place of "Notes and Bills Discounted."These were: Loans to the Government, Loans, discounts andadvances on current account to corporations, Notes and billsdiscounted and current, Notes and bills discounted, overdue