Volume 2 - ElectricCanadian.com

DEVELOPMENT OF CANADIAN BANKING 447entitled "general regulations," "internal regulations," "powersand obligations of the bank," and so on. The preamble statedthat "it isdesirable that the provisions relating to the incorporationof banks, and the laws relating to banking, shouldbe embraced, as far as practicable, hi one general Act." Theprovisions relating to the incorporation of banks were moreparticularly those in the Act of 1870, and "the laws relating tobanking," in so far as they dealt with the "powers and obligationsof the bank," were taken almost unchanged from theAct of 1867. There were, however, many regulations, particularlythose in the group headed "internal regulations,"which although almost universally in force, had hitherto notbeen embodied in any general law, but formed part of theindividual charters of the existing banks. There were alsosome special clauses necessitated by peculiar provisions of thecharters of individual banks. For the first time the regulationsapplying to new banks and new stock issues and thegeneral powers granted to banks were contained in one Act.The principal changes from the Act of 1870 were thatthe minimum amount of capital required before commencingbusiness was placed at $100,000 paid up, and $500,000 subscribed,instead of $200,000 paid up. An additional $100,000,making $200,000 in all, had to be paid up within two yearsafter commencing business. The requirement that at leasttwenty per cent, should be paid up in each year was repealed.The following slight changes were made in the form of themonthly returns: Cheques on other banks were includedwith their notes, and "Loans to the Government" nowspecifically included loans to the Governments of the variousprovinces. The new form of return was first used in July,1871, the form prescribed in 1870 having, as already mentioned,never gone into force. 1 In consideration of the'The form of these returns was again amended and amplified by an Act of 1873(36 Viet., e. xliii) which went into force in July, 1873. Dominion and ProvincialGovernment deposits were distinguished in the amended classification, and headingswere introduced to show loans made against the security of the capital stock of anyother bank and those made against the security of bonds or debentures.