Volume 2 - ElectricCanadian.com

512 HISTORY OF THE BANKto the point where a considerable sum was paid out annuallyin premiums, and experience had shown that the risk of losswas small. Under existing arrangements whereby the bankpaid one-third of the cost of unconditional bonds, its expenditureannually for the purpose was about $2,200, and would be$3,000 if it was decided to refuse private sureties. It wasevident that the bonding companies had found the businessprofitable, and that they were building up a large business ofthis kind on the basis of very moderate reserves. Taking pastexperience as a guide, it was plain that by the establishment ofa guarantee fund a considerable sum could be saved to themembers of the staff, and at the same time a satisfactoryreserve could be built up in a few years without imposing anyadditional burden on the bank. It was also hoped thateventually this reserve would grow to such a size that its surplusmight form the nucleus of a fund to provide for the needs ofold and disabled officers of the bank. Much stress was laidupon the safeguard provided by the community of interestbetween the staff and the bank in such a fund. It wasproposed to make the members liable for additional contributionsin the event of the fund proving insufficient to meetits liabilities, and thus to enlist the co-operation of all membersin maintaining a supervision over the conduct of other membersof the staff.On September 19, 1877, the matter was first brought tothe attention of the Board and was referred for further considerationto a committee consisting of the president (the Hon.William McMaster), Messrs. Stayner, Barnhart and thegeneral manager (Mr. Anderson). On the same day amemorandum was sent out to all the agents and managers ofthe bank, giving particulars and explanations of the proposaland inviting suggestions in regard to it. The plan proposedwas much more complicated at the outset than it was whenfinally adopted. The fund was to be placed in the hands oftwo trustees appointed annually, one to be nominated by theBoard of Directors and the other elected by the members.