Volume 2 - ElectricCanadian.com

62 HISTORY OF THE BANKwere $32,003,341.64, while the total of the paid-up capital was$31,018,810.82. The note circulation also bore a more importantrelation to lending power then than now, and paid-upcapital was the main factor in determining the legal limit ofthe note circulation. Finally, there was the rivalry betweenthe Montreal and Toronto banks, which caused the latterto aim at cutting down the lead in paid-up capital held by theMontreal banks and increased by the passing of the two oldestand largest western banks, the Bank of Upper Canada and theCommercial Bank. These conditions and the natural desirefor expansion were reflected in a resolution of the shareholdersat the annual meeting of The Canadian Bank ofCommerceheld in July, 1871, when it was moved by Mr. E. H. Rutherford 1of Toronto, seconded by Mr. T. D. McConkey of Barrie, bothwealthy and well-known men in their respective communities,that the authorized capital of The Canadian Bank of Commerceshould again be increased by an additional $2,000,000, makingthe total $6,000,000. Although the bank was little morethan four years old, it was proposed to make the capital sixtimes the amount originally authorized. The step wasfacilitated by the provision of the new general Bank Actwhich vested the power to increase the capital of a bankThis hadin the shareholders in general meeting assembled.gone into force just ten days before the meeting was held,and rendered the special Act of Parliament formerly requiredunnecessary. At the annual meeting in the following year(1872), it was resolved to issue the balance of the authorizedcapital stock, amounting to $1,200,000, at a premium oftwelve and a half per cent. The new stock was allotted to theshareholders on July 31, 1872, the premium to be payable withthe firstinstalment of ten per cent, at the time of acceptingthe allotment, and the balance in consecutive monthly instalmentsof ten per cent. each.1Edward H. Rutherford (1820-85), a native of County Leitrim, Ireland, was from1850 to 1855 partner in the brokerage firm of Whittemore, Rutherford and Company.Toronto. He was at one time vice-president of the Bank of Upper Canada. From1867 to 1873 he was president of the Consumers' Gas Company, Toronto.