BY banking documents I mean prospectuses, applica-tions for shares, letters of allotment, deeds of settlement, certificates of shares, deeds of transfer of shares, notices of calls for further payment on shares, etc, bonds of security by managers and clerks, declarations of secrecy by the same, agreements with reference to lodgment of deeds as security, cash credit bonds, letters of guarantee for the due payment of bills not endorsed by the person discounting same, or for the due payment of bills discounted to a third party, or for the due repayment of loans.
I. Forms of those documents above enumerated, used in the formation of a joint-stock bank, vary so greatly at the discretion of promoters and solicitors that it is not expedient to reproduce them here. Such forms are, however, easily obtainable. When any persons propose to form a joint-stock bank in district, they procure the statistical returns of the district; such as the tables of the population-the exports and imports-the duties paid-the returns of the sales in the various markets-and every other information respecting the trade and wealth of the district. If these prove satisfactory, they take notice of the banks already established there, and observe whether they are joint-stock banks or private banks-whether strong or weak-and whether likely to oppose or to join any new establishment. If the existing banks be joint-stock banks, the projectors procure from the stamp-office a list of the shareholders, in order to observe the strength of their proprietary, and whether they reside chiefly in the district.
Having satisfied themselves that a new bank would be successful, the first document drawn up is a prospectus. This document usually sets forth the great advantage of joint-stock banking to both the public and the shareholders, and then points out the facilities of the district in which the bank is proposed to be established.
Previous to issuing the prospectus, some leading persons in the district are requested to become members of a provisional committee for the formation of the bank, and they obtain the assistance of an influential solicitor, to whose office the applications for shares are usually addressed. The committee then appoint a secretary, or sometimes the office of secretary is filled by the solicitor.
Attached to the prospectus is the form of an application for shares.
As the applications come in, they are entered in a book prepared for the purpose. In the first column is entered the date of the application; then follow the name, profession, and residence of the applicant; then the number of shares applied for, and in a farther column the number of shares granted. After the committee have determined what number of shares to allot to each applicant, letters are addressed to the respective parties.
After the sums to be paid up have been received, a general meeting of the shareholders is called, when the provisional committee make a report of their proceedings. Resolutions are then passed.-1. That the report be received and printed.-2. That certain shareholders then named be appointed directors. The bank is now formed, and the government is assumed by the directors. They appoint the manager and other officers; they prepare. the deed of settlement; and they adopt the measures necessary for the commencement of business.
II. I shall now notice those documents that are used after a bank is established, and are requisite in the ordinary course of business.