The first general Bank Act was passed in 1870. Before that each bank had its special charter. Charters expired at various dates, and did not confer altogether uniform rights and privileges. For some years efforts had been made to bring the banking interests into agreement on legislation to equalize banking conditions in all the provinces. But the interests of the banks in the different sections were by no means identical; and, until Sir Francis Hincks undertook the task, no statesman had been able to make much progress. When he finally succeeded in getting his Act of 1870 through Parliament the effect was to bring all the banks in the country under the one general Act. As their various charters expired, the rights, privileges, and obligations pertaining thereto were replaced by the rights, privileges and obligations contained in the general Act.

What The Banks May Do

Under it the chartered existence of all the banks was continued till 1881. Since 1870 there have been four general revisions of the Bank Act-in 1880, 1890, 1900, and 1913. Every tenth year a careful examination is made of the events of the preceding decade, complaints against the banks are noticed, suggested improvements considered. Then, before the laws are drafted, conferences are held with the representative bankers, who are in turn required to give their ideas and suggestions. In 1910 pressure of business compelled Parliament to postpone consideration of the renewal of the Act. It was not until the summer of 1913 that the new Act was passed. By it the charters of the banks were extended for ten years - to July 1st, 1923. The Banking and Commerce Committee of the House of Commons called a number of expert witnesses, representing different classes of the public as well as the bankers; and in the course of the hearings the good points and defects of the banking system were thoroughly discussed. It is not necessary here to go into the matter of the changes and improvements effected at the different revisions. It will suffice if some idea is given of the powers conferred on the banks by the present Act, and of the obligations it lays them under.

The meat of the Act is in Sections 61 and 76. Section 76 says: "The bank may (a) open branches, agencies and offices; (b) engage in and carry on business as a dealer " in gold and silver coin and bullion; (c) deal in, discount " and lend money and make advances upon the security " of, and take as collateral security for any loan made " by it, bills of exchange, promissory notes and other " negotiable securities, or the stock, bonds, debentures " and obligations of municipal and other corporations, " whether secured by mortgage or otherwise, or Do-" minion, provincial, British, foreign, and other public " securities; and (d) engage in and carry on such " business generally as appertains to the business of " banking."

Section 61 says: "The bank may issue and re-issue " its notes payable to bearer on demand and intended " for circulation."

The rest of the Act consists chiefly of prohibitions, of regulations prescribing the manner of issuing and transferring the share capital, and of organizing a new bank, of details as to how certain transactions must be carried out, and as to the responsibilities and obligations resting upon stockholders, directors, and the bank itself, of instructions regarding the form and substance of the reports to Government, and to the stockholders, and the dates and occasions on which they are to be made.