% V] <^ //, /a G^. /A IMAGE EVALUATION TEST TARGET (MT-3) 1.0 If: Ilia iiM Mf 1^ 12.2 u 1^ I.I Hf 1^ UUu 2.0 1.25 1.8 14 Hill 1.6 Photographic Sciences Corporation 4 V W^j, 'O ■v*. ^ %' '^^ 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 872-4503 li >" mp. signifie "A SUIVRE", le symbols ▼ signifie "FIN ". Les cartes, planches, tableaux, etc.. peuvent dtre fllm6s A des taux de rMuction diff^rents. Lorsque le document est trop grand pour dtre reproduit en un seul cliche, il est f ilmi A partir de I'angle supArieur gauche, de gauche A droits, et de haut en bas, en prenant ie nombre d'images n^cessaire. Les diagrammes suivants illustrent la m^thode. 1 2 3 32 X 1 2 3 4 5 6 I I This Book may be used only within the Library. -^^^^sure Roo m CoIIectInn University of Western Ontario LIBRARY LONDON - CANADA DUE 0^1 m OCT 28 1935 RETURNED OCT '^9 1938 m INSTRUCTIONS r^ so OFFICEES or TBI BANK OF UPPER CANADA. ADOPTED BY RESOLUTION OF THE BOARD OF DIRECTORS, 14th FEBRUARY, 1861. ROWSELL & ELLIS, PRINTERS, KING ST.. TORONTO. 18fi1. i Mn^^ GENERAL INSTRUCTIONS, . . . CASH DEPARTMENT, INDIVIDUAL LEDGER KEEPER'S DEPARTMENT, DISCOUNT AND BILL DEPARTMENT, STOCK DEPARTMENT, .... BANK NOTE DEPARTMENT, - . . . ACCOUNTANT'S DEPARTMENT, - CORRESPONDENCE AND REMITTANCES, - PAOI. 6 • 12 21 27 48 67 64 81 CONTENTS. GENERAL INSTRUCTIONS. r„i,,_ Copy of Instructions to bo supplied to each Officer 1 Co-operation of Officers in corrying out routine 2 Cc'jrtesy to those doing business with the Bank 3 Conversations and disputes to be avoided 4 Affairs of the Bank, &c., not to be made public 5 Presents not to be received ; g False Entries and Statements 7 Gambling, Estravagaace and Speculation 9 Sundays and Holidays jg Cashier, application of term n Supervision of Departments 12-14 Checking Transactions of Office 15-17 Overdrawn Accounts ^g Custody of Securities, Lills, &o 19 Books and Blank Forms 20-21 Hours of Attendance 22 Payment of Salaries 23 CASH DEPARTMENT. Treasubt. Cashier and Accountant to have distinct Keys 25 Treasury Book 26 Deposits and Issues 27 Cash to appear in " Cash Balance Book" 28 Examination of Cosh 29 Teller's Cash. Cash Counters gn Duties of Teller 31-34 Remittances 35-38 Discrepances , 39-41 Assorting Cash 42 Br&iich Notes 43 11. TKttBR*a CaS^, eontinued. tvtt. l)eposlts in Treasury .. Payment of Cheques .t Blotter • *2 „ , 46-48 Bordereaux, or Deposit Stotementa 49.50 Deposit Certificates g. Deposit Receipts "m a* Bills of Exchange 1""1"1" .'.'.".'.'." .".".'.'.".'.' 55.57 Notes and Bills due of the day .'".".'."!".'.'."!"..'"".'.".'58-61 Cash Balance Book ..".'.'.*.'.'..' m Examination of Teller's Cash ..". !!..'""..*" .,,.",.,, 63 INDIVIDUAL LEDGER KEEPER'S DEPARTMENT. Ledgers to be kept on Progressive System 65 Accounts to be opened Alphabetically !..'.'.'.".','."."* 66 Posting to be from Vouchers ".'".".*.'..'.'"" 57 Balances to be proved by frequent addition ""!."".'.""."„'..' 68 Cheques to be posted before payment ,.,„[[[ 69 Accepted Cheques not to leave the Office......'.*."!!.'.*.*.'.'.*,".". 70 Notes and Bills presented for payment !!!.*.'!!!!!!71.72 Accounts not to be overdrawn !!!!'.!!!!!.!. "73 Entry and Posting of Deposits ""'[[ 74 Posting "particulars" !!!!!!.'.!!!!!!,!!!"" 75 Deposit Certificates !.!!!.'!.'..'.!!.'!!!!!!.'!' 76-80 Signature Books ! „. Checking Individual Ledgers !!!!!!.*.'!!!!.'!...82-8a Vouchers to be assorted and distributed !!!!!!.'!!!. 84 Balances of Accounts to be taken out ! '" §5 Pass Books ""'' _ Surrender of Cheques ■....*.'....'!.'..!.!!!!.'.',!!' 87 New Accounts \ „„ Accounts not to be exhibited ..*.".'!.'!' 89 DISCOUNT AND BILL DEPARTMENT. Officers of the Bank not to Discount their own Notes 90 Accommodation paper to be avoided, &o 91 Amount to be discounted for any one party !!!!!! 92 Notes not to be discounted on one npme !!!!!."!.'.'!! 93 Residence, &c., of parties to be marked on Notes!!!!!!!!!! 94 Bills to be submitted to Local Directory !! 95 Calculations of Discounts, &o., to be on Notes!!!!!!!!!!!!!96.97 Crediting proceeds of Bills Discounted gg m. Discount and Bill Depaetment, continued. eulb. Presentation of Bills for Acceptance 99 Bills to be tr&nsferred to cliarge of Cashier IQO Arrangement of Notes, &c jqI Notes and Bills due of the day 102-103 Notes paid before maturity io4 Testing Bills on hand with Ledger Balances 105 Reports on Discount Transactions 106 Classification of Bills iqj I^egisters !l09-110 Diary jjj Discount Progressive Ledger 112-118 Defaulter's Book 219 Local Bills Discounted 1?'^-123 Bills Discounted Remitted, Canada 1 27 Bills Discounted Remitted, United States 128 Past Due Bills 129-133 Bills in Suit 134-142 Collection Bills, Officers 143-1,46 Collection Bills, Private 147-l,i4 Act regulating Rate of Interest. Page 41 STOCK DEPARTMENT. Stock Books 155 Transfer of Stock 156-162 Certificates of Shares 163-165 Instalments on Stock iqq Stock Ledger 1G7-170 Stock held at Offices or Agencies 171-173 List of Shareholders for General Meeting 174 Dividend Lists 175-176 Payment of Dividends 177-186 Amended Charter, Extracts relating to Stock... .Page 50 BANK NOTE DEPARTMENT. Officers specially appointed to charge ,. 137 Bank Note Books jgg Register of Bank Note Impressions 189 Register of Bank Notes issued , .190-191 Bank Note Ledger 192-195 Register of Bank Notes cancelled 196-197 Circulation Register 198-199 IV. Bank Notb Depahtmbnt, continued. Treparation of Notes Instructions to Cashiers and Agents. BULL ,200-204 .205-214 215 216-225 .... 226 007.234 .... 254 255 257-259 200-264 ACCOUNTANT'S DEPARTMENT. Books Day Book.. Special Journal Deposit Receipts Register of Bills of Exchange and DraftVsol*d".".."!"..""2S5.'237 Register of Bills of Exchange and Drafts purchased..238-241 Register of Steruog Deposits 242 244 General Ledger ::Z:245-252 Vouchers given for Entries 053 Checking Books Profit and Loss Account Statements and Returns Form No. 1— Balance Sheets and Returns.....!. _„. , 2— Account Current with Head Office 265-266 3— Balances Depositors' Accounts, &c 267-270 4— Copies Inter-Office Accounts 271 5— Copy of Profit and Loss Account 272 6 — Inter-Office Accounts 273-277 CORRESPONDENCE AND REMITTANCES. COERESPONDENCE. Letters to be signed by Cashier or Agent 278 Letters to be addressed to Cashier Special Letters Letters from Officers of the Bank .".'.....' Routine Business Letter Returns and Statements [][ Business Information Remittances. 279 280 .... 281 282 283 284-285 Remittance of Drafts, Cheques. &c 286-288 Accountant to maKe distribution ...'........ 289 ! , GENERAL INSTRUCTIONS. 1. A copy of the Instructions herein set forth shall be supplied to each of the Officers of the Bank of Upper Canada, for whose guidance they have been sanctioned and issued. The said Instructions shall neither be made public, nor be lent to those unconnected with the Institu- tion ; and an Officer leaving the employ of the Bank shall return to the Cashier or other Officer in charge of the Office the copy with which he may have boon fur- nished. 2. The satisfactory working of an efficient routine of busi- ness must depend ;aainly upon the hearty co-operation of all concerned. In carrying out fully the Rules and Regulations sanctioned and issued from time to time by the Board of Directors, or by their executive officers such co-operation is looked for from the officers of the Institution generally. 3. The Tellers, Individual Ledger-keepers, and all other Ouicers of the Bank placed in more direct communication B If. 6 with the public, are expected to be courteous and atten- tive to those requiring their services. Conduct at vari- ance with this rule will at once necessitate a change in the arrangements of the office. 4. Loud talking during the hours of business shall be carefully avoided, as well as all private conversations, and disputes,— whether on private matters or on Banking transactions, either with parties at the counter, or with the officers of the Bank,— and should any difference of opinion arise on matters of business, immediate reference shall be made to the Cashier or other senior officer in charge. 5. The affairs of the Bank, the mode of keeping its books and accounts, the salary or peculiar position of any of its Officers or Clerks, shall not be made the subject of out-door conversation ; neither shall any information be given on such matters to those unconnected with the institution. 6. The Officers and Clerks of this Bank shall carefully avoid receiving presents or favours from those transact- ing business with the institution. 7. No Officer or Clerk shall lend himself, in any way, to the falsifying of entries or balances in the books of the office, or to the rendering of Returns and Statements at variance with such Books, and tending to mislead as to the real natute of any transaction contained therein. The orders of superiors shall in no wise serve to oxcul- r f t J)ate those knowingly aiding in such false entries or Statements.* 8. If at any time it shall come to the knowledge of an Officer of the Bank that any one in its employ, whether he be a superior in rank or otherwise, is wilfully acting to the injury of the institution, or of those doing business therewith,— whether by hiding the true nature of the transactions of the Office ; by the falsification of entries in the books ; by rendering incorrect and fictitious Statements and Returns, or by the misappropriation of the funds and property of the Bank— it shall be the duty of such officer to acquaint the Cashier of the Office at once with the facts in connexion with the transactions of the party so offending ; he shall also see that the Inspector is notified of the same: and if the offender be the Cashier or other Officer in charge of the Office, the facts shall be made known without delay to the Inspec- tor by the Officer to whose knowledge the said facts may come. 9. If it shall come to the knowledge of the Board of Directors that any person in the employ of the Bank is in the habit of gambling— has become involved in debt by extravagant and imprudent living, or by reckless speculation, or is in any way leading a loose and dissi- * " If any Cashier, Assistant Casliier, Manager, Clerk or Servant of the said Bank, shall secrete, embezzle, or abscond with, any Bond. Obligation, Bill Obligatory or of Credit, or other Bill or Note, or any Secvinty for money, or any moneys or effects, intrusted to him as such Cashier, Assistant Cashier, Manager, Clerk or Servant, whether the same belong to the said Bank, or belonging to any other person or persons, body or bodies politic or corporate, or institution or institu- tions, be lodged and deposited with the said Bank, the Cashier, Assis- tant Cashier, Manager, Clerk or Servant so offending, and beina thereof convicted in due form of Law, shall be deemed euiltv of f«Innv " — Vlautexl., Amended Charter, « » „- Iff i f 8 pated life at variance with a position of respectability and trust— such person sliall be at once dismissed from the service of the Institution. And it shall be the duty of any Cashier, or other superior Ofiicer, to whose knowledge facts of the nature herein set forth shall come, to report the same to the Inspector for the information of the Board of Directors. 10. In the Rules and Regulations herein set forth, it shall be understood that when any such Rule shall refer to a particular day, and that day fall on a Sunday or Holiday, that In such case the said Rule shall be taken to apply to the preceding day. 11. It shall further be understood that the duties set forth herein as appertaining to the Office of Cashier shall be taken to apply to the Office of Manager, Agent, or other Senior Officer in charge for the time being, as also to the Assistant Cashier or Assistant Manager, where such Offices exist. *• SUPERVISION OP DEPARTMENTS. 12. The Assistant Cashier or Chief Clerk, where such Offices exist, shall have tho immediate supervision of the several departments of the Office, and shall be responsible to the Cashier for the due carrying out of the Instructions for conducting the routine thereof which may be sanctioned and issued for that purpose. At Offices where there Is neither Assistant Cashier nor Chief Clerk, these duties shall devolve upon the Ac- countai't. 9 18. It shall be the duty of the Officer having the supervi- sion of departments to see that the Clerks of the Office are in their respective places at the required times, that the work be not allowed to fall in arrear, that the entries in the Books and Statements are fully and clearly made, and that due attention be paid to the public. He shall also bring under the immediate notice of the Cashier all cases of incorrectness, neglect of duty, or insubordina- tion on the part of those under him. 14. The supervision of departments set forth in the fore- going Rules, shall not be taken to supersede, in any way, that responsibility and general supervision necessarily attached to the office of Cashier, Manager, or Agent, nor shall it apply to the Inspector's Department at the Head Office. CHECKING THE TRANSACTIONS OP THE OFFICE. 15. The Cashier thall examine and check, each morning, the entries of the transactions of the previous day in the Books of the Office ; he shall see that all drafts, certifi- cates, &c., signed by him, are duly brought to account ; that the entries in the Day Book are supported by their respective Vouchers, that the additions thereof are true, and that the balance of Cash is correctly brought down. 16. In checking the Vouchers with the entries thereof in the Day Book, the said Vouchers shall be cancelled by the Cashier in such a manner as to prevent their being again produced in support of fresh entries, or otherwise made u$e of. ! id IT. Tho posting of the General and Individual Ledgers shall be checked daily with the Day Book by the Cash- ier and Accountant, tho former taking the Lodgers, the latter the Day Book. &.»'"« 18. Overdrawn deposit accounts shall be carefully avoided • the Cashier or other officer in charge for the time being,' allowing such, without the sanction of the Board of Di' rectors, shall be held personally liable for the same. CUSTODY OF SECURITIES, BILLS, AC. 19. All Securities, Bills, Promissory Notes, &c., whether the property of the Bank or deposited therewith for col- lection, shall be held by the Cashier until surrendered for payment or otherwise, as hereinafter set forth. BOOKS AND BLANK FORMS. 20. .1 '^^ ^JTJ^ *^' ^°°^' '^'^^P*^^ fo'' general use by the Head Office, shall not bo changed without reference thereto; nor shall Books of any kind be ordered from the Printers unless sanctioned by the Cashier or other Officer m charge of the office. 21. To insure uniformity in the Books in general use, Kequisitions for those required shall be made through the Inspector at the Head Office ; and to prevent unne- cessary delay in the supply, each office shall send in to the Inspector, in the month of July in each year, a 11 Statement of such Rooks, Blank Forms, &c., as will be required by it for the ensuing year. 22. nOUUS OF ATTENDANCE, Each Officer shall bo in his pluco at least one half hour before 10 a. m. — the time of opening the doors of the Bank for business — and shall remain until the trans- actions of the day are reported by the Accountant to bo balanced, after the close of the doors at 3 p. m. But it shall be fully understood, that if required in seasons of pressure, or to prevent the work of the Office falling into arrear, the services of the Officers of the Institution shall be given at other extra hours. • 23. PAYMENT OF SALARIES. The Salaries of the Officers of the Bank shall be paid monthly, in arrear, on the last day of the month, and on Pay Lists made out upon the forms supplied for the purpose. Officers transferred from one Office of the Bank to another, shall be furnished with a Certificate of date of the last payment of Salary. [12] CASH DEPARTMENT. THE TREASURY. 24. The Treasury shall consist of the Cash not required for the immediate demands at the counter, and therefore not in the hands of the Tellers. 25. • The Cash in the Treasury shall be under the joint charge of the Cashier and Accountant, who shall hold distinct keys of the Vault or Safe in which such Cash is deposited. 26. A " Treasury Book" shall be kept, in which shall be entered the details of all deposits made in the Treasurv the issues of Cash therefrom, and the balance remaining therein. 27. Upon a deposit being made in theTreasv/y, the entry thereof in the Treasury Book shall be initialed by the Cashier and Accountant. The entry of an issue from the Treasury shall, in like manner, be initialed in the Treasury Book by the Teller receiving the Cash. 28. The amount and particulars of the Cash in the quired irefore 18 Treasury shall be incorporated in the General Cash Bal- ance of the office at the close of each Jay. 29. The Cash in the Treasury shall bo examined at least twice in each year. At offices having a Local Directory, this examination shall be made by a Director, assisted by one of the Senior Officers of the Bank, and the amount examined shall be certified in the Treasury Book by such Director. Where there is no Local Directory, the examination shall be made by the Cashier, Account- ant and Senior Teller, or by the Cashier and Teller, whose joint certificate of examination shall bo placed in the Treasury Book. 5 joint 1 hold 'ash is all be isury lining entry y the from a the the tellers' cash. 80. The Cash Counter shall be cf a width, when practica- ble, of at least 4J or 5 feet ; behind this each Teller shall have a compartment screened off from the general Banking-room. And the arrangement of these com- partments shall bo such as to prevent at any time the Teller's back being turned to the Counter,— a danger- ous position, and one annoying to the puolic. 8L To avoid unnecessary detention at the Counters, and too great an assembly in the Banking-room at one time, the Tellers shall be careful to attend expeditiously, and in their order, to those requiring their services. 32. The paying out and receiving of all moneys in the Bank shall be confined to the Tellers alone. C 14 8«. *l%a Tellers shall bo held pcrsuniilly rosr.onsiblo for all Funvl* lull '%nd .Securities received b^ >'<>ra or in- trusted to tbeii nutp; tlicy yball, therefore, neither pay out nor surrender the sftnio except in the regular course and routine of the legitimate business of the Jlank, and upon Vouchers duly authorised, accepted and completed —the orders of Superiors to the contrary notwithstand- ing. The Tellers shall further strictly prohibit all un- authorised persons from interfering with, or i.pproachin<' their Cash, &c. " 34. No uncurrcnt cr doubtful Coins and Bank Notes shall be taken in deposit by the Tellers. 35. llomittances of money shall in all cases (c^; ''opt by " Tared Post") be accompanied by a Statement or Bordereau thereof, signed by the Teller furnishing the same, a copy of which Bordereau shall be retained by the remitting office. The Bordereau of a Remittance by "Parcel Posi" shall accompany the letter of advice. 3(5. No Remilianco of Moneys shall be made by "Parcel Post," except the same be specially authorised. 37. The Teller shall be responsible for all Moneys furnished by him for remittance ; he shall also see that such Remit- tance be carefully and strongly enclosed,— made up and sealed, in such . ^.ai.ner as to reader an attempt at abstraction diffic.'U -. .mpiiah, and easy to detect. (4 u I i i^. When a package or parcel of Specie or Bank Notes is received by a Teller for account, ho shall carefully examine the Box, Keg, or Wrapper in which the sumo is contained ; and if the said package or parcel shall appear in any vuy broken or damaged, or shall bear marks of liis-ing been .umpcrcd with, or opened, before its delivery to such Teller, he shall at once report the same to the Casliier, or other officer in charge, who shall hinis.'l!" ijo present, or shall nominate some other officer to bo present, jit the opening and examination of such package or parcel. 89. On a deficiency or discrepance of any kind appearing in a parcel, or other remittance of Cash received for account by a Teller, immediate notice of such discrepance shall be given to the Cashier, or other senior officer, who shall at onco cause the Teller's examination of such remittance to be verified ; the office or party making the remittance shall then be advised of the particulars of the discrepance, and should a dispute arise in connexion therewith, or should the fact remain unnoticed by such office or party remitting, the circumstances of the case shall bo fully and without delay reported to the Inspec- tor at the Head Office. 40. In case of a deficiency or surplus arising in the Cash of a Teller, be shall immediately report the fact to the Cafc...c.-, or other senior officer, who shall investigate the circumstances in connexion therewith, and, if ho deem it of sufficient importance, shall report thereon, without delay, to the Inspector at the Head Office. 41. In case of deficiency in a Toller's Cash, the amount 16 thereof shall at once be made good by such Teller. When a surplus of Cash shall appear in the hands of a Teller, in order to provide for any future call for the same, the amount thereof shall be credited to an account styled "Teller's Surplus Cash," to be opened in the Individual Ledger of the Office. 42, The Cash in the hands of the Tellers shall bo kept carefully assorted and ready for use and inspection, the Specie according to its kind, the Bank Notes in their Banks and denominations. 43. The Branch Notes of this Bank, received in deposit or otherwise, shall be assorted according to their Branches, and shall be charged and remitted thereto, as further set forth in Rule 219. 44. The Tellers shall not be allowed to retain in their hands at any one time a larger amount of Cash than is necessary to meet the demands at the Counter. On the Cash accumulating beyond the sum required, it shall bo reduced by depositing the surplus in the Treasury. 45. No Cheque on the Bank shall be cashed or taken in deposit by the Tellers, without first being accepted by the Individual Ledger deeper. Ill 46. Each Teller shall keep a "Blotter," in which shall bo entered the transactions as they occur at the Counter. 11 47. On payment of Cheques in Cash,- the denomination of Notes, or kind of specie in which such Cheques are paid, shall be set down at the time in the Blotter. as I 48. For the entry of the particulars of deposits the Blotter shall be ruled in three columns, the one shewing the proportion of each deposit received in Cash, and Cheques on other Banks ; the 2nd the Cheques on the Bank ; and the 3rd the total amount. The total of the 1st column will therefore be the actual amount of Cash received by the Teller during the day ; the total of the 2nd the amount received in Cheques on the Bank ; and the aggre- gate of the 1st and 2nd columns will be equal to that of the 3rd, or total receipts of the day. 49. All deposits shall be accompanied by a Statement or Bordereau giving the details of such deposit, the date thereof, and for what account deposited ; it shall also bear the signature of the party depositing. 60. On testing the correctness of the Statement of deposit, the Teller shall enter the particulars of such deposit in his Blotter ; he shall then initial the Bordereau, and return it to the party depositing, with instructions to hand it, together with the Bank Pass Book, to the Indi- vidual Ledger-keeper. 51. When a Certificate of Deposit is required, the Teller shall write upon the Bordereau, above his initials, " Cer- tificate ;" the Bordereau shall then be handed by the Depositor to the Individual Ledger-keeper, who shall prepare such Certificate. 52. Deposits on Interest shall be received on such terms as may, from time to time, be authorised by the Board of Directors. 53. For moneys deposited at Interest, "Deposit Receipts" shall be issued specifying the rate of Interest to be allowed, and the terms upon which such deposits are received. 54. For the issue of "Deposit Receipts," the Teller shall write upon the Bordereau, above his initials, " Deposit Receipt," the Bordereau shall then be handed to' the Accountant, who shall prepare the " Deposit Receipt." 55. Parties requiring Bills of Exchange or Drafts on the Branches or Agencies of the Bank, shall make a Requi- sition for the same on the form supplied at the Counters for that purpose. 56. Upon a Requisition being made for a Bill of Exchange or Draft, the Teller shall calculate thereon the amount of Exchange or other charges, and having received and credited the amount of such Bill or Draft, and charges thereon, shall place his initials to the Requisition, and shall hand it to the Accountant, or other Officer in the Accountant's department whose duty it may be to draw out such Bills of Exchange or Drafts. 19 57. Upon the completion of a Bill of Exchange or Draft, it shall be handed to the Teller through whom the llo- quisition has been made, who, havjng entered in his Blotter the number of such Bill or Draft, shall surrondor the same to the purchaser. 58. All Bills, Notes, &c., due of the day, shall bo hundod to the Tellers in the morning. 59. The Local Bills due of the day on being recoivod by the Teller, shall be at once credited to their Account ; those that remain unpaid at the close of the day shall then form a portion of the " Teller's Cash," and shall bo dealt with as described in Rule 121. 60. Collection Bills, OflSces, and Collection Bills, Private, shall be credited only when paid ; those remaining un- paid at the close of the day shall be returned to the Bill Clerk. 61. The Bills due of the day payable at the OfBco of tlio Bank, shall be presented in the morning by the Toiler to the Individual Ledger-keeper, who shall charge thoso to Account where there are funds sufficient for the pur- pose. The Bills not .payable at the Bank shall bo sent out and presented at the place specified in such Bills. 62. At the close of the business of the day the Tollers shall make up their Cash and enter the details thereof 20 in a " Cash Balance Book." Where there are more- than one Teller, the details of each Teller's Cash Balance shall be incorporated, together with the Cash in the Treasury, in a " General Cash Balance Book." 63. On the removal of an Officer from a Tellership of an Office, the Cash in his hands shall be examined and re- ceived over by the Cashier or other Officer in charge. The Cash in the hands of the Tellers shall also be ex- amined by the Cashier or other Officer in charge, at least once in each month ; at the Head Office the exami- nation shall be made by the Cashier and Accountant, or by such other of the Senior Officers of the Bank as the President may think proper to select for the duty. [21] at INDIVIDUAL LEDGER-KEEPERS' DEPARTMENT. 64. The Individual Ledger-keepers shall be placed in a position that the public can readily communicate with them. 66. The Individual Accounts shall be kept on the " Pro- gressive System," the balance of the Accounts being struck as the entries are posted thereto.* The Accounts in the Individual Ledgers shall be opened and arranged alphabetically. 67. The posting in the Individual Ledgers shall be from Vouchers. 68. The balances of the Accounts shall be tested by fre- quent additions, in pencil, of the debit and credit col- umns. In order to ascertain periodically the aggregate of the transactions of each individual account, the addi- tions of the debit and credit columns at the foot of lach folio shall be made in ink, and shall be carried into * To insure accuracy and quickness in keeping the Ledgers on the Progressive system, one principle must be adhered to in striking the balance of an Account — "Never deduct, but always add, by a mentcl process, the difference, or balance to the smaller amount." This method of balancing should pervade the whole system of Book-keeping. D i S2 their respective columns on the commeticetnent of a new folio. At the close of the half yearly periods of the 30th June and 31st December, the accounts shall be ruled up and balanced, and the balances brought down in the usual manner. 69. Cheques presented for acceptance and proved to be genuine and complete, shall be posted at once to the debit of their respective Accounts, then being initialed by the Ledger-keeper and stamped ''Cancelled," they shall be returned to the party presenting, who will hand them to the Tellers for payment or deposit. 70. To facilitate the periodical taking out of the Deposit Accounts Balances, the Individual Ledger-keeper shall be careful to prevent, as much as possible, the "accepted" cheques from leaving the Bank. Parties shall be desired to ask the Tellers for large Notes when the funds are required for local purposes other than circulation, and when required for remittance to take a Bank Draft. 71. On the presentation of the Notes and Bills due of the day, held by and payable at the ofiSce of the Bank, any such Note or Bill shall be charged as a Cheque against the deposit account of the maker or acceptor thereof where there are funds sufficient at credit for the pur- I pose. 72. A Note or Bill not held by the Bank shall not be charged a/^ainst the Deposit Account of the maker or acceptor ^hereof unless special instructions to that effect * " And the Bank may charge any Note or Bill held by and payable at the Bank against the deposit account of the maker of such Note or acreptor of such Bill, at the maturity thereof, any law, statute or usage to tho contrary nolwitlislaudiug."— ^ztraci from clause 2y Amended Charter. 28 1 have been given in writing by such maker or acceptor of such Note or Bill. 78. The Individual Ledger-keeper shall not, under any circumstance, assume the responsibility of allowing an account to be overdrawn. In case of doubt he shall cause reference to be made, or shall himself refer to the Cashier, or other officer in charge, whose initials to the Cheque shall alone be authority for a deviation from the general rule ; and the Cashier or other officer in charge 80 authorising the advance, shall be hold personally lia- ble for the same. 74. Upon a deposit being made at the Counter for the credit of an Individual Account, the Statement or Bor- dereau thereof, initialed by the Teller, together with the Bank Pass Book, shall be handed by the party depositing to the Individual Ledger-keeper, who shall enter in the pass-book the date and amount of the deposit, and shall })lace his initials to such entry. The deposit shall then be posted to the credit of its account, and the Bordereau being initialed by the Individual Ledger-keeper, shall be placed on a file for the use of the Day Book-keeper. 76. In posting " particulars" in the Individual Ledger, the term " Cash" shall be used to imply an ordinary transaction through the Tellers. When a Note is charged to account, the number of the note shall be entered. When a deposit is made by another party, the name of such party shall be given ; and if a credit ap- pear by Bill of Exchange purchased by the Bank, Bills 24 collected, or by proceeds of Bills or Notes discounted, the particulars of the same shall also be given. 76. When a Certificate of dept nt is required, the State- ment of such deposit initialed and marked by the Teller, " Certificate," shall bo handed by the Depositor to the Individual Ledger-keeper, who shall prepare such Cer- tificate, and hand the same for signature to the Cashier, or other Ofiicer in_charge. 77. Certificates of Deposit on being signed by the Cashier, and countersigned by the Individual Ledger-keeper, shall be handed to the depositor ; the deposit shall then be posted in the usual manner. 78. The Deposit Certificates shall be printed with mar- gins, for the pariculars of the Deposit, and shall be bound in books similar to Drafts and Cheques. The Certificates shall be numbered consecutively as they are issued, and the Cashier or other Senior Officer signing the Certificate shall at the same time initial the margin thereof, which shall be retained^in the Bank. 79. Deposits for which Certificates have been issued shall only be withdrawn in one sum, and upon the surrender of such Certificate by the party in whose favour it is given, or upon authority of such party attached thereto ; and the party to whom payment of the amount is made shall give a receipt for the same on the Certificate of deposit. 80. Certificates of Deposit shall not be issued in cases 26 I where it is likely the moneys will be withdrawn in portions ; nor shall an entry in a Bank Pass Book be made of a deposit for which a Certificate has been issued, until such Certificate shall have been returned to the Bank. 81. Signature Books shall be kept by the Individual Ledger-keeper, in which parties doing business with the Bank shall enter their Signatures and place of residence. 82. The posting in the Individual Ledgers shall be checked daily with the entries in the Day Book and Special Journal, as further set forth in Rule 17. 88. In checking the posting of the Individual Ledger with the Day Book, &c,, the debit and credit items shall be ticked oflf, as they are called, on the 2nd Cash column, or column dividing the debits from the credits ; thus by running the eye up this column any unticked entry will at once appear. 84. On the completion of the daily examination and check- ing of the Books, Cheques, and Vouchers, such Cheques and othc * Vouchers shall be assorted and distributed. The Cheques shall be assorted according to their names. The deposit and other credit Vouchers shall bo tied up in daily parcels, on which the date shall be marked, and kept ready for reference. 85. The Balances of the Individual Accounts shall be taken out in an Individual Accounts Balance Book, and B 26 tested with the Balance of Current Accounts in the Gen- eral Ledger ut least once in each month. 86. The Pass Books of those doing business with the Bank shall be made up once in each month, and oftener if required. On the evening of the last day of the month, all the Clerks of the Office shall assemble to assist in this duty ; and to prevent as much as possible the accumulation of such work at other periods, the Ledger-keepers shall endeavour to obtain the Pass Books from the Customers at the time stated. 87. Customers' Cheques on the Bank can bo returned with their Pass Books, provided the account be not over- drawn. On the Cheques being surrended by the Bank a receipt for the same, together with an acknowledg- ment that the Balance of the Account as stated in the Pass Book is correct, shall be taken in a book to be kept for that purpose. 88. No nevr deposit account shall be opened in the Books of the Bank without reference first being made to the Cashier or other Officer in charge. 89. The Individual Ledger-keeper shall not allow any person, not being a Director or authorised Officer of the Bank, to look into the accounts of parties dealing with the Bank ; nor shall information relating to a P 'nosi- tor's Account be given to any but to such depositor or other person duly authorised.* * " The Books, correspondence, and Funds of the said Bank, shaTl at all times be subject to the inspection of the Directors, but no Shareholder, not being a Director, shall inspect, or be allowed to in- spect, thti Account or Accounts of any person or persons dealing with the said Bank."— Clause IX., Amended Charter. 1 t27j DISCOUNT AND BILL DEPARTMENT. 90. No Manager, Cashier, Agent, or other OfRcor of the Bank shall be permitted to discount his own paper, neither paper on which his name may in any Avay ap- pear ; nor paper in which he may be in his private capacity concerned or interested, either directly or indi- rectly. ADDENDUM— RULE 91. And nc Note or Bill shall be discounted which may bear upon it the name of a party then appearing in defauU to the Bank, either upon a Past due Bill or Bill 'u Suit. 93. No Note or Bill shall be discounted on the strength of one name only. Members of a firm signing as such, and also individually, shall be regarded as but one name. 94. When a Bill is offered for Discount, the residence and profession or trade of each party thereon shall be marked in pencil under the respective signatures ; this is more particularly necessary in reference to " Bills Discounted 26 tested with the Balance of Current Accounts in the Gen- eral Lcilgor ut least once in each month. 86. The Pass Books of those doing business with the Bank slmll be made up once in each month, and oftcner if required. On the evening of the last day of the month, all the Clerks of the Office shall assemble to assist in this duty ; and to prevent as much as possible the accumulation of such work at other periods, the Lodger-keepers shall endeavour to obtain the Pass Books from the Customers at the time stated. 87. Customers' Cheques on the Bank can be returned with their Pass Books, provided the account be not over- drsi n„ fV.^ ni The Individual Ledger-keeper shall not allow any person, not being a Director or authorised Officer of the Bank, to look into the accounts of parties dealing with the Bank ; nor shall information relating to a Deposi- tor's Account be given to any but to such depositor or other person duly authorised.* * " The Books, correspondence, and Funds of the said Bank, shaU at all times be subject to the inspection of the Directors, but no Shareholder, not being a Director, shall inspect, or be allowed to in- spect, the Account or Accounts of any person or persons dealing with the said Bank."— Clause IX., Amended Charier. [27] DISCOUNT AND BILL DEPARTMENT. 90. No Manager, Cashier, Agent, or other Officer of the Bank shall be permitted to discount his own paper, neither paper on which his i^ame may in any way ap- pear ; nor paper in which he may be in his private capacity concerned or interested, either directly or indi- rectly. 91. "Accommodation" paper shall be avoided ; also paper on which accommodation is required for speculative pur- poses. 92. The accommodation given to any one party or firm shall in no case exceed $4000, except upon special authority from the Head Office. 93. No Note or Bill shall be discounted on the strength of one name only. Members of a firm signing as such, and also individually, shall be regarded as but one name. 94. When a Bill is offered for Discount, the residence and profession or trade of each party thereon shall be marked in pencil under the respectivo signatures ; this is more particularly necessary in reference to "Bills Discounted i- 28 Remitted," to enable the Notary to give due notice of protest in cases of non-acceptance and non-payment. Care shall also be taken that the Bill is drawn in a reg- ular and formal manner, and that it is complete in every way. 95. At Offices where there is a Local Directory, no Bill shall be discounted without first being submitted thereto for approval, and the initials in all cases of the Cashier or other Officer in charge shall be affixed to the Bills as the authority for their discount. 96. On discounting a Bill, the date of maturity and the calculations of discount and other charges shall be marked thereon by the Bill Clerk ; these calculations shall in all cases be tested by a second officer. The necessary Voucher shall then be drawn out for the proceeds of the Bill, which Voucher shall bear upon it the initials of the Cashier, or Accountant, and the Bill Clerk. 97. The calculations of Discount or Interest on Bills Dis- counted shall in all cases be made for the number of days comprised in the period for which such Discount or Interest may be required. 98. When it is required that the proceeds of a Bill Dis- counted shall go to account, a credit Voucher for that purpose shall be prepared, which, together with the debit Voucher, shall be handed to the Individual Ledger- keeper. 99. Bills taken out of the Office for presentation for in th N ^d acceptance can be left for one day, if necessary, (and there be no risk,) with or for the parties upon whom they are drawn. In cases where it may not be deemed safe to leave or surrender such a bill, the party on whom it is drawn shall be notified of the particulars thereof, and that the same is lying at the Bank for acceptance. 100. On the completion of the entries in connexion with Bills Discounted or Bills received for collection, such Bills shall be transferred to the custody of the Cashier or other Senior Officer in charge, who shall place his Initials in the Diary against the entry of each Bill in acknowledgment of the receipt thereof. 101. The Notes and Bills in the hands of the Cashier, or other Senior Officer in charge, shall be kept distinct in their classifications, and shall be arranged according to maturity. mo ADDENDUM -RULE 97. If a Note be drawn payable "with Interest," such interest, from the date to maturity, shall be added to the amount of the Note, and on the aggregate of such Note and interest shall the discount be calculated. "I ■esse*'' When payment of a Note under discount is tendered before the maturity thereof, and it may be deemed advi- sable to receive the same, no rebate or refunding of the 28 Remitted," to enable the Notary to give due notice of protest in cases of non-acceptance and non-payment. Care shall also be taken that the Bill is drawn in a reg- ular and formal manner, and that it is complete in every way. 95. At OflSces where there is a Local Directory, no Bill shall be discounted without first being submitted thereto for approval, and the initials in all cases of the Cashier or other Officer in charge shall be affixed to the Bills as the authority for their discount. 96. On discounting a Bill, the date of maturity and the calculations of discount and other charges shall be marked thereon by the Bill Clerk ; these calculations shall in all cases be tested by a second officer. The necessary Voucher shall then be drawn out for the proceeds of the Bill, which Voucher shall bear upon it the initials of the Cashier, or Accountant, and the Bill Clerk. keeper. 99. Bills taken out of the Office for presentation for acceptance can be left for one day, if necessary, (and there be no risk,) with or for the parties upon whom they are drawn. In cases where it may not be deemed safe to leave or surrender such a bill, the party on wliom it is drawn shall be notified of the particulars thereof, and that the same is lying at the Bank for acceptance. 100. On the completion of the entries in connexion with Bills Discounted or Bills received for collection, such Bills shall be transferred to the custody of the Cashier or other Senior Officer in charge, who shall place his Initials in the Diary against the entry of each Bill in acknowledgment of the receipt thereof. 101. The Notes and Bills in the hands of the Cashier, or other Senior Officer in charge, shall be kept distinct in their classifications, and shall be arranged according to maturity. 102. The Bills due of the day shall be handed in the morn- ing to the Teller, who shall place his Initials in the Diary, against each of the said Bills, in acknowledgment of the receipt thereof. 108. The Bills due of the day shall be presented in the morning to the Individual Ledger-keeper, as further described in Kule 71. 104. When payment of a Note under discount is tendered before the maturity thereof, and it may bo deemed advi- eable to receive the same, no rebate or refundir g of the difference of Discount between the date of payment of such Note and the maturity thereof, shall be allowed. 106. The Notes and Bills on hand shall be taken out and tested with their respective balances in the General Ledger, at least once in each month. The Local Bills Discounted shall be compared with, and ticked oflf in the Diary, commencing with the day on which such trial is made. The Diary being then added up, and the aggre- gate of such additions being found to agree with the balance of the account in the General Ledger, will prove the Notes and Bills, and Books in connexion therewith, to be correct. This Rule will apply generally to all classes of Bills and Notes. REPORTS ON DISCOUNT TRANSACTIONS OP OFFTOB. 106. At the close of the quarterly periods of the 31st Marca, 30th June, 30th September, and Slst December, the Cashier, or other Officer in charge, shall transmit to the Inspector a report on the liabilities, position, nature of account, and business of parties receiving accommoda- tion, or otherwise appearing on paper under discount at the Office. A change, or likelihood of a change, in the position of such parties, or any other information tend- ing lo protect or to facilitate the business of the Bank, shall be fully referred to in these Reports. lOT. The Bills and Notes shall be classified, arranged, and lettered as follows, viz. : Local Bills Discounted. (L. P. No. _ ^) Bills Discounted Remitted, Canada. (Ji.li.C. No. .) 31 Bills Discounted Remitted, United States. (B. R., U.S., No. .) Past Due Bills. (P. D. B. No. .) Bills in Suit. (B. S. No. .) Collection Bills, Offices. (C. B. 0., No. .) Collection Bills, Private. (C. B. P., No. .) 108. The Books requisite for the entries in connexion with the foregoing Classification of Bills and Notes are : Register, Diary, or Notes due Book. /- Discount Progressive Ledger. Defaulter's Book. REGISTER. .) 109. For each class into which the Bills and Notes are divided, a separate Register shall be kept, in which shall he entered the particulars of all paper so classified, 110. A separate series of Numbers shall be used for each class of paper, and the Notes and Bills of each of such classes shall be numbered consecutively as the transac- tions occur and appear on the Registers. DIARY. 111. The Diary shall be constructed of 365 folios — one for each day in the year commencing with the 1st January. The folio shall consist of the face of a full sheet of the Book, and the day of the year shall be placed at the head thereof. Each folio shall be divided into five compartments, ruled and headed for the entry of 82 Local Bills Discounted. Bills Discounted Remitted. Collection Bills, Offices. Collection Bills, Private. Collection Bills Remitted for Collection. DISCOUNT proqr:^ssivb ledger. 112. This Book shall show the liabilities to the Bank of each party receiving accommodation, and of those whose names appear on the paper upon which such accommo- dation is given. To this end a separate Account shall be opened for each party. 113. The Discount Progressive Ledger shall be ruled in such a manner as to show on the left hand side of the account the amount of the liabilities of the party as Pio- miser, and on the right hand side the liabilities as Indorser. 114. The Discount Progressive Ledger shall be kept on the same principle as the Individual Ledger, that is to say ; the balance of the Account shall be struck on each transaction posted thereto. The balances shall also be tested by frequent additions in pencil of the debit and credit columns, but the additions at the foot of these columns shall be in ink, and shall be carried forward into their respective columns on the commencement of a new folio. At the close of the half-yearly periods of 30th June, and 31st December, the Accounts shall be ruled up and balanced, and the balances brought down in the usual manner. 115. The posting to the debit of the account shall be fro m 88 the Registers or from the Notes themselves, and the credits from the Diary. 116. The - accommodation given on Local Bills and Bills Discounted Remitted shall be kept distinct in the Dis- count Progressive Ledger. For thi^ purpose, and when the entries are few, the upper part of the page shall be reserved for the transactions in Local Bills, and the lower part for Bills Discounted Remitted. In cases where the Account is a large one, and the entries numerous, the left hand folio of the Ledger shall be used for the Local Bills, and the right hand folio for the Bills Discounted Remitted. The total liabilities of each individual will thus be seen at a glance, which will not be the case if separate Ledgers are used for each description of paper discounted. 117. In posting a credit entry, when the Bill is paid, the number of such Bill shall alone be necessary in the space for " particulars," but when the Bill is allowed to go into "default," the letters "P. D. B." shall be added thereto. 118. In posting a credit entry, it, with its corresponding debit entry, shall be "ticked off." The unticked debit entries will thus constitute the Balance of the Account. That the unticked items may more readily be seen, the ticking of the debits and credits shall be on the same column, namely, on that dividing the debits and credits. defaulter's book. 119. This Book shall be paged alphabetically, and the names of parties appearing on overdue paper, whether 84 as Promiser or Indorser, shall be entered therein, to- gether with the number and amount of the Notes upon which they appear in default. LOCAL BILLS DISCOUNTED. 120. These comprise all paper discounted payable at, or in the vicinage of the discounting oflSce. 121. The Local Bills due of the day, on being received in the morning by the Teller, shall be at once credited to their account. Those that remain unpaid at the close of the day shall form a portion of the Teller's Cash Bal- ance, and shall be handed for presentation and protest to the Notary, whose acknowledgment for the same shall be taken in a Book kept for that purpose. On the following morning, when returned by the Notary, whose fees shall then be paid, the Bills and expenses shall be charged to "Past Due Bills." 122. In order that the Local Bills paid of the day may be shewn in the Diary, in cases where such Bills are paid before maturity, they shall be taken from the day on which they mature, and added to the day on which they are paid. The total amount of Local Bills paid of the day on the Diary will thus correspond with the total amount credited by the Teller. 123. The fate of the Local Bills due of the day shall be detailed in the Diary. The amount of each Bill retired shall be carried into the column headed "Paid," — those that are charged to " Past due Bills", in like manner, shall be carried into the column headed - ■ P. D. B." The _^ aggregate of these two columns will thus be equal to that of the Bills entered in the column headed "Amount." BILLS DISCOUNTED REMITTED, CANADA. 124. Under this head shall be comprised all Bills discount- ed payable elsewhere, within the Province, and therefore remitted to an Office or Agency of the Bank in Canada for Collection. 126. Upon such paper being discounted, it fihall be charged at once to account of "Bills Discounted Remitted, Canada," and being entered in the Register and Diary, shall be remitted with due diligence, for collection. At maturity it shall be charged to the Office or Agency to which it has been remitted for collection, and " Bills Discounted Remitted, Canada " shall get credit for the same. 126. When a "Bill Discounted Remitted, Canada" is returned under protest for non-payment, the amount thereof and expenses shall be charged to account ©f " Past Due Bills," and the Office or Agency returning the same shall be credited with the amount. 127. When a "Bill Discounted Remitted, Canada" is returned under protest for non-acceptance, it shall be charged at once to the account of the drawer or other party for whom it may have been discounted, if there be funds sufficient at credit for the purpose ; otherwise it shall be charged to "Past Due Bills," and immediate action taken in the premises as set forth in Rule 132. DILLS DISCOUNTED REMITTED, UNITED STATES. 128. Under this head a separate account shall bo opened for Bills Discounted, or Drafts purchased, payable in the United States, and remitted to Aj^cnts therein for col- lection. Bills drawn at sight, or short date, shall be charged to the agent on remittance, and credited to this account. In all other respects, the foregoing Rules in connexion ^Yith "Bills Discounted Remitted, Canada," shall bo applied to this class of paper. PAST DUE BILLS. 129. This class shall represent tho yrholo amount of Over- due Paper discounted on hand, whether in " Local Bills Discounted," or "Bills Discounted Remitted," and returned under protest. 130. It shall bo clearly understood, that no Overdue Bills shall under any circumstance be retained in the current paper. 131. Overdue Paper, with the exception of " Bills Discount- fed Remitted," returned under protest for non-accept- ance, shall not be retained in " Past Due Bill," beyond a period of ten days, when, if not then arranged, they shall be charged to account of " Bills in Suit,'' and placed in the hands of the Bank Solicitor for collection. 132. A "Bill Discounted Remitted " returned under pro- test for non-acceptance, and charged to "Past Due Bills," shall be retained therein for three days only, when it shall be charged to " Bills in Suit," and handed for collection to the Bank Solicitor. 87 188. Partial payments tendered and received on Past Due Bills shall bo placed at onco to credit of that account. "BILLS IN SUIT." 134. To this account shall bo charged all Bills and Notes placed in tho hands of tho Bank Solicitor for collection. 135. In placing overdue paper in tho hands of tho Solicitor for collection, the amount of tho Bill and Expenses thereon shall alone be charged to account of Bills in Suit. The overdue interest shall not bo brought to account until tho same si. ill have been recovered in tho settlement of the suit. 136. Upon a Bill being handed to the Bank Solicitor for collection, he shall place his signature in tho Register of Bills in Suit, in acknowledgment of the receipt of such Bill. 137. Moneys received by a Bank Solicitor on account of " Bills in Suit," whether in part payment or in full, shall be at once paid over by him to the Bank, and shall be credited to account of Bills in Suit. 138. The Solicitor shall furnish to the Bank, at the regular quarterly periods of the 31st March, 30th June, 30th September, and 31st December a report on the suits in his hands. This report shall shew the proceedings taken in each case, the moneys received in part payment there- of, and the prospect of final settlement. 88 189. The Quarterly Reports of the Bank Solicitor shall be certified, as to amounts, by the Cashier or Agent, and shall bo transmitted to the Inspector's Department, at the Head office. 140. All arrangements for the settlement of Kills in Suit shall be made through the Bank Solicitor, and in no case shall Deeds or other legal documents taken in secu- rity on behalf of the Bank bo drawn out in the name of either the Cashier, Agent, or Bank Solicitor, in his individual capacity. 141. The name of the Bank shall not in any way be lent or made use of for the prosecution of suits not bona fide belonging to the Bank. 142. If at any time it shall become necessary to take pro- ceedings at law for the recovery or collection of the amount of any bill, account, or security on, or in which the name of, the Solicitor of the Office shall appear in his non-official capacity, or in which he shall be in any way non-officially interested, such Bill, Account, or Security shall be handed for collection to another Solicitor. COLLECTION BILLS, OFFICES. 143. These shall comprise the Bills discounted at the other Offices of the Bank and received therefrom for collec- tion. 144. Collection Bills, Offices, shall be entered and num- bered consecutively in their Rocistor at the Receiving do Office ; they shall also bo entercil in their compartment on the Diary. 145. These Bills shall bo credited to the Office from which they have been received only when paid. In case of non-payment at maturity, they shall bo handed to the Notary for protest, after which they shall be returned with all diligence to the Remitting Office, to which the expenses of protosc, &c., shall be charged. 146. When a Collection Bill, Offices, is received for collec- tion in the shape of a Draft for acceptance, and the acceptance thereof is refused on due presentation, the Bill shall be handed at once to the Notary for protest, after Avhich it shall be immediately returned to the Remitting Office, to which the expenses of such protest shall be charged. COLLECTION BILLS, PRTV 147. Under this head shall bo comprised all Bills and Notes left with the Bank for collection. 148. Collection Bills, Private, shall be received on account of the customers of the Bank only, and with the under- standing that the Bank shall not bo held liable for any error or omission, either in the entries in the Bank Books, or in the forms of proceedings in connexion with such bills. 149. In order to do away with all liability of the Bank on Bills received for collection, no charge shall be made or commission taken on such iBills. 46 150. When a Collection Bill, Private, is paid, the proceeds thereof shall be placed to the credit of the account of the party for whom it has been received. 151. On payment of a Collection Bill, Private, received through another Office or Agency of the Bank, the pro- ceeds of such Bill shall be immediately remitted by a Draft on such Office or Agency. 152. When the proceeds of a Collection Bill, Private, are remitted by a Draft on another Office or Agency of the Bank, the usual charges shall be made for such Draft. 153. In cases where Collection Bills, Private, are not accept- ed on duo presentation-for that purpose, or are not paid at maturity, they shall be handed to the Notary for pro- test, (unless special instructions are received to the con- trary,) and shall be returned with all diligence, either personally or by post, to the parties from whom they have been received, and from whom the expenses incur- red thereon shall be recovered. 154. In surrendering a Collection Bill, Private, the acknow- ledgment of the party to whom the same is returned shall be taken in the register. When such Bill is returned through the Post Office, the words " By Post," with the initials of the party posting the same, shall be written in the Register in place of the acknowledg- ment. [41] ANNO VICESIMO-SECUNDO VICTORIA REGINiE are Cap. lxxxv. An Act to amend the laws of this Province regulating the Rate of Interest. {Assented to 16th August, 1858.) Whereas it is expedient to amend the laws relating to Interest of Money, and for that purpose to repeal the third section of the Act of the Parliament of this Pro- vince, passed in the sixteenth year of Iler Majesty's reign, and intituled " An Act to modify the Usury Laws, as to future contracts:" therefore. Her Majesty, by and with the advice and consent of the Legislative Council and Assembly of Canada, enacts as follows : 1. From and after the passing of this Act, the third section of the Act mentioned in the preamble to this Act shall be, and the same is hereby repealed, except only as to contracts made after it came into force and benre the passing of this Act, as to which it shall remain in force. 2. It shall be lawful for any person or persons, other than those excepted in this Act to stipulate for allow and exact, on any contract or agreement whatsoever, any rate of interest or discount which may be agreed upon. 3. It shall not be lawful for any Bank incorporated by any Act of the Legislature of this Province, or of the late Provinces of Upper or Lower Canada respectively, or by Royal Charter, nor for any Bank established or to be established under the provisions of the Act of the Legislature of this Province, passed in the session there- of, held m the thirteenth and fourteenth years of tier Majesty's reign, intituled, " An Act to establish Free- dom of Banking in this Province, and for other purposes relative to Banks and Banking," to stipulate for, take, reserve or exact a higher rate of discount or interest than seven per centum per annum : and any rate of interest not exceeding seven per centum per annum may be received and taken in advance by any such Bank ; and it shall bo lawful for any such Bank to allo'v and pay any rate of interest whatsoever upon moneys deposited in such Bank. 4. Notwithstanding any thing to the contrary in the Act passed in the session held in the nineteenth and twentieth years of Her Majesty's reign, chapter forty- eight, intituled, « An Act for enabling all the Char- tered Banks m this Province, to enjoy a certain privi- lege therein mentioned," or in any other Act or Law, it shall not be lawful for any;Bank or Banking Institution carrying on business us such in this Province, in dis- counting at any of its places or scats of business, branches, agencies or offices of discount and deposit, any note, bill, or other negotiable security or paper payable at any other of its own places or seats of business, branches, agencies or offices of discount and deposit within this province, to receive or retain in addition to the discount any amount exceeding the following rates per centum, according to the time it has to run, on the amount of such note, bill or other negotiable security or paper, to defray the expenses attending the collection of such bill, note or other negotiable security or paper that IS to say, under thirty days, one eighth of one per cent., thirty days and over but under sixty days, one tourth of one per cent., sixty days and over but under ninety days, three-eighths of one per cent., ninety days and over, one-half of one per cent. 5. Six per cent, per annum shall continue to be the rate of interest in all cases, where by the agreement of the parties or by law interest is payable, and no rate has been fixed by the parties or by the law. 6. Nothing in this Act shall be construed to apply to any Corporation or Company, or Association of persons, not being a Bank, heretofore authorized by law to lend or borrow money. [431 STOCK DEPARTMENT. 155. The Books for this department shall bo : Stock Subscriptif-r "Book. Transfer Book Instalments c . ...l;3cribed Stock. Instalments Certificates. Certificates of Shares. Stock Ledger. Dividend Book. Register Powers of Attorney, &c. 156. Parties requiring a transfer of Stock to bo raiido HJiall notify the Bank thereof, on the printed forms of lloqui- sition furnished for the purpose, at least two hours pre- viously. 167. The transfer of Stock shall be made by Shareholders only, or by their Attorneys or other legal roprosontu- tives duly constituted. 158. The Requisition for the transfer of Stock shall give the name, residence, and profession or occupation of the party transferring, the number of siiares to be transfer- 44 red, and the name, esidence, and profession or occupa- tion of the party to whom they are to be transferred. 159. On a Requisition being made for the transfer of Stock, the same shall be submitted for the approval of the Cashier or other Senior Officer in charge, and no transfer of Stock shall un any account be made without such approval. 160. No transfer of Stock shall be made so long as any indebtedness to the Bank by the Shareholder, or estate thereof, equal to the amount of such Stock, shall remain unpaid.* . 161. When application is made for the transfer of Stock by the Attorney of the Shareholder, or by an Executor, Administrator, Assignee, or other legal representative of the Estate of a Stockholder, it shall be necessary before such transfer be made, that there shall have been lodged, or shall then be lodged, in the Bank, the Power of Attorney of such Stockholder, or a copy of the Will or Certificate of Probate thereof, copy of Letters of Administration, or certificate of the issue thereof, or copy of Deed of Assignment, or proof thereof. And all such documents lodged in or exhibited to the Bank, shall be entered in the Register and Index of Powers of Attorney, &c. 162. ^\^hen a transfer of Stock is to be made, such transfer _ * " But no ftssigriraent or transfer shall be valid and effectual, unless It be made and registered in a Uook or Books to be kept hy the Di- rectors for that purpos^e, nor until the person or persons makinn the same shall previously discharge all debts actually due ly him, her or them, to the Bank, which may exceed in amount the remaining Stock, (if any ) belonging to such person or ^(ivsovis." — Extract from Clause xx A mended Charter. •*;t 45 shall be prepared by the Transfer Clerk in the " Stock Transfer Book." 163. No transfer of Stock shall be considered complete, nor shall a Certificate be issued for the Stock so transferred, until it shall have been accepted by the Transferree, or other party duly authorised. 164. Certificates held for Shares to be transferred shall be surrendered to the Bank before, or at the time of such transfer. "When a portion only of the Shares specified in a Certificate is transferred, the number and amount of Shares so transferred shall be written across the face of such Certificate, which shall then be returned to the Shareholder. 165. On the surrender of a Certificate of Shares to the Bank, such Certificate shall be cancelled and attached to its corresponding margin in the Certificate Book. 166. On the Payment of Instalments on new subscribed Stock, Certificates shall be given specifying the number, amount, and rate of such Instalments. When the whole of the Instalments shall have been received, the full Cer- tificate shall be issued for the number of shares so paid up, and the Instalment Certificates shall be surrendered to the Bank, and being cancelled, shall be attached to their respective margins in the Instalments Certificate Book. 167. The Stock Ledger shall be kept on the " progrecsive system," according to the annexed form, the balance of Scock, in Shares and Amount, being struck on the post- ing of each transaction. G ^■.■»i&,- . 46 168. FORM OP STOCK LEDGER. JOHN THOMAS. Date. Particulars. Shares. Amount. — Dr. Cr. Bal 18 2 Dr. Cr. Balai i)0b 100 ice 1360. Jan'y 3 6 7 By VVm. Watson " Jno. Jones To Thomas Smith... ' 16 8 10 800 00 400 500 00 00 ... 169. An Account shall be' opened in the Stock Ledger for each Shareholder, to which shall be posted the trans- actions in Stock in connexion thercAvith as they occur. 170. The posting of the transactions in the Stock Ledger shall be from the Stock Transfer Book, when they occur by Transfer ; and from the Stock Subscription List and Instalment Books, when arising from these sources. 171. In cases where it may be deemed expedient by the Board of Directors to open separate Books for Stock transactions at any Office or Agency of the Bank, there shall be opened in the Stock Ledger of the Head Offices a general Account or Register, to whica shall be credited the Stock so transferred from the Books of the Head Office, and the Individual Stock Account of the party transferring shall be charged with the same ; and upon such Stock, or any portion thereof being re-transferred from the Books of an Office or Agency to those of the Head Office, the proceedings shall be the reverse. 4f 900 100 172. When it is required that Stock shall be transferred from the Books of the Head Office to those of an Office or Agency of the Bank, or viee versa, or from the Books of one Office or Agency to those of another Office or Agency, a Requisition to that effect 'jhall be made by the Shareholder or legal Representative thereof, on the printed Form provided by the Bank for that purpose. ns. Transfers of Stock from the Books of oneOffice or Agency to those of another Office or Agency, shall alone bo made through the Head Office, to which the Requisition for such transfers shall be remitted. 174. There shall be prepared for the use of the Board of Directors, at least one sveek previous to the Annual General Meeting of Shareholders, held on the 25th day of June in each year, a List of Shareholders of the Bank ; this List shall shew against the name of each Shaveholder the number and amount of Shares held, and the number of Votes appertaining thereto. The names of Shareholders eligible to be elected as Directors shall also be distinguished in the said List. 176. At the close of each half-yearly period of the 30th of June and 31st of December, a General Dividend List of the Shareholders shall be made out in the " Dividend Book." And in order to prepare such list for the pay- ment of any Dividend that may have been declared on the Stock of the Bank, the Stock Transfer Book shall be closed for such time previous to the payment of such Dividend as the Board of Directors may deem neces- sary. u 17^. In the Dividend List the names of the Shareholders shall be arranged alphabetically, and numbered consecu- tively throughout. 177. The payment of Dividends, with the exception of those for Stock on the Register in Great Britain, shall be on Cheques prepared for the purpose, and which shall be filled in and completed previous to the payment of the Dividend. 178. The Dividend Cheques shall be numbered consecu- tively to correspond with the number in the Dividend List ; that is to say, each Cheque shall be for the pay- ment of the Dividend to the Shareholder whose name shall appear against the correspcriding number in the Dividend List. 179. The Dividend Cheques shall be drawn payable to the order of the Shareholders, or to their Attorneys or other legal Representatives duly constituted, and the indorse- ment of such Shareholders or other authorised party, on the said Cheques, shall be the acquittal of the Dividend 80 paid. 180. When the payment of a Dividend is demanded by the Attorney or other legal Representative of a Sharehold- er, it shall be necessary before such Dividend is paid, that there shall have been lodged, or shall then be lodged in the Bank, the Power of Attorney or other legal Instrument, or Copies or proof thereof, upon which ,: I . payment of such Dividend may be required. And ail such documents lodged with, or exhibited to, the Bank, shall be entered in the Register and Index of " Powers of Attorney, &c," 4d isi. when a Dividend is paid to the Attorney, or other legal Representative of a Shareholder, the Office in vir- tue of which such party may act, shall bo mentioned after his or her name on the Cheque, and care shall be taken that the indorsement on such Cheque bo in ac- cordance with the tenor thereof. 182. Care shall be taken that tlie Cheques for Dividends payable to Shareholders at the Offices and Agencies of the Bank, be transmitted so as to be received by such Offices and Agencies prior to the day on which the Dividend is notified to be payable. 183. On payment of a Dividend Cheque at an Office or Agency — for Shares not upon the Register of such Office or i^gency — it shall be at once charged to the Head Office, and shall be remitted thereto in due course. 184. For the payment of Dividends to Shareholders in Great Britain, (not upon the London Register,) there shall be prepared and remitted to the Agents of the Bank in London, a list giving the names and residence of such Shareholders, the number of Shares of Stock held by each, the amount of Dividend thereon, in ster- ling, and the party to whom such dividend is payable. Care shall be taken that this list be remitted so as to be in the hands of the Agents of the Bank in London as nearly as possible to the day on which the Dividend may have been declared payable in Canada. 185. The amount of Dividends payable oa Shares upon the It Ad London, England, Hegister, oi- upon the Ilegiater of* anV Office or Agency of tho Bank, shall be placed to the credit of tho Agents of the Bank in London, and to the credit of such Office or Agency in ono sum. 186 The foregoing routine for the payment of Dividends, and for conducting tho Stock transactions generally, shall be carried out in its details, as far as th.7 cnn be applied, at all Offices and Agencies of tho Bank holding distinct Stock Registers and Stock Books. L EXTRACTS FROM AMENDED CHARTER. {Received Royal Assent, Ist July, 1856.) *••«♦* III. The Capital Stock of the said Bank, (the words the said Bank meaning throughout this Act the Corporation aforesaid,) shall be one million of pounds currency, divided into shires of twelve pounds ten shill- ings currency, or fifty dollars each ; and so many of the said shares as may be unsubscribed for when this Act shall come into force, may be subscribed for either withm or out of this Province, in such proportions or numbers and at such times and places, and under such regulations, and at such rate of premium, to be paid by the subscribers over and above the amount of the shares as the Directors of the said Bank shall from time to time establish ; and the shares so subscribed for shall hfi naid 61 in by auch instalments, and at such times and places as the said Directors shall from time to time appoint, and executors, administrators and curators paying instal- ments upon shares of deceased shareholders, shall be and are hereby respectively indemnified for paying and aro required to pay the same : Provided always, that no share shall be held to be lawfully subscribed for, unless the Eremium (if any) which shall have been fixed by the hrectorg, and at least ten per centum on the amount of such share be paid at the time of subscribing : and pro- vided also, that no part of the Capital Stock unsubscribed for at the time when this Act shall come into force, shall be subscribed for after the end of six years from that time ; and the whole of the stock subscribed for shall be called in before the thirty-first day of December, one thousand eight hundred and sixty-one : and provided ftirther, that it shall not be obligatory upon the said Bank to raise the full amount of the Capital Stock here- by allowed, but the number of shares to be thereafter subscribed for, may at any time be limited by a By-law of the said Bank, in such manner as the SharehoMcrs shall deem most advantageous for the interests of the Bank. IV. If any person or party subscribing for Share of the Capital Stock of the said Bank, shall also be willing to pay up at the time of subscribing the full amount of the shares subscribed for, together with such premium thereon as aforesaid, it shall and may be lawful for the Directors of the Bank, and at any time within the period hereinbefore limited for subscribing for such Stock, to admit and receive such subscriptions and full payment, or payment of any number of instalments, together with such premium; and in every case the premium so re- ceived on any Stock subscribed for, shall be carried to the account of the ordinary profits of the said Bank. V. If any Shareholder or Shareholders shall refuse or neglect to pay any instalment upon his, her, or their Shares of the said Capital Stock, at the time or times required by tlic Directors as aforesaid, such Shareholder or Shareholders shall incur a forfeiture to the use of the said Bank, of a sum of money equal to ten pounds per ^'entum on the amount of such Shares ; and moreover, it shall bo lawful for the Directors of the said Bank (with- I 62 out uny previous formality other than thirty days' public notice of tlit'ir intention) to hoI, at public auction the said HJia. >-.s, or so many of the said shares as shall, after deducting the reasonable expenses of the sale, yield a sum of money sufficient to pay the unpaid instalments duo on tlu; remainder of the said shares and the amount of forfeitures incurred upon the whole; and the President, with the Vice-President or the Cashier of the said Hank,' shall execute the transfer to the purchaser of the shares of Stock so sold, and such transfer being accepted, shall bo as valid ;ind eh"ectual in law as if the same had been executed by the original holder or holders of the shares of Stock thereby transferred: provided always, that nothing in this section contained shall bo held to debar the Directors or Shareholdors, at a general meeting, from remitting either in whole or in part, and condition- ally or unconditionally, amy forfeiture incurred by the non-payment of any instalment as aforesaid. *♦*♦*♦ XVII. The number of votes which the Shareholdors of the said Bank shall respectively be entitled to give at their meetings, shall bo according to the following scale, that is to say : for one share and not more than two, one vote ; for every two shares above two and not exceeding ten, one vote, making five votes for ten shares ; for every four shares above ten and not exceed- ing thirty, one vote, making ten votes for every thirty shares ; for every six shares above thirty and not ex- ceeding sixty, one vote, making fifteen votes for sixty shares ; and for every eight shares above sixty and not exceeding one hundred, one vote, making twenty votes for one hundred shares; and no Shareholder shall be entitled to give a greater number of votes than twenty ; and it shall bo lawful for absent Shareholders to give their votes by proxy, such proxy being also a Share- holder, and being provided Avith a written authority from his constituent or constituents, in such form as shall bo established by a By-law, and which authority shall be lodged in the Bank : provided always, that a share or shares of the Capital Stock of the said Bank which shall have been held for a less period than three calendar months immediately prior to any meeting of the Share- holders, shall not entitle the holder or holders to vote 68 at sucli meeting, cither in person or by proxy : provi- (lojl also that where two or more perHons are joint holders of shares, it slmll be hiu f'ul that one only of such joint holders bo empowere.l by Letter of Attorney from tlio other joint holder or holders, or a majority of them to represent the said shares and vote accordincly : and provide, also that no Shareholder who shall not bo a natural-born, or naturalised subject of Her Majesty, or who shall bo a subject or citizen of any Fov-.g;. JVinco or State, shall either in person or by prox; vote a: my meeting whatever of the Shareholders of t .c Mtid Bu.k, or shall assist in calling any meeting of ti:- liwehc^jl crs ; any thing in this act to the contrary notwi " o \ ^0 274. In rendering an Inter-Office account, an exact tran- script thereof shall be made from the Ledger — that is to say, the debits and credits in the statement shall be in accordance therewith. Example : — London rendering to Sarnia. Heading of Account: "The Office at Sarnia in Account Current with the London Office." 275. The Balances of Inter-Office Accounts fjhall be settled on the last day of the month by Draft on the Head Office. Transitu items, likely to affect the settlement and adjustment of the accounts, shall be avoided as much as possible at that time. ' 276. Upon the receipt of an Inter-Office Account, it shall be examined without loss of time, and any error appear- ing therein shall be immediacely notified to the Office rendering, in order that such error maybe duly rectified. And in case of neglect on the part of an Office to rectify an error, or in case of dispute between Offices respecting an entry in Account, immediate reference shall be made on the subject to the Inspector at the Head Office. 277. The Inter-Office Accounts shall be retained at the re- ceiving Office, and, after examination and settlement, shall be kept arranged, according to their Offices, in half-yearly parcels. fsil CORRESPONDENCE AND REMITTANCES. CORRESPONDENCE. 278. All Letters on Bank business shall be signed by the Cashier or Agent of the Office, or, in bis absence, by the Officer in charge for the time being. 279. Letters to the Head Office shall in all cases be ad- dressed to the Cashier of the Bank; those for other Offices shall be addressed to the Cashiers or Agents of such Offices. 280. Special or important subject of communication, which it may be necessary to submit to the Cashier, shall not be included in the ordinary routine business letter, but shall be given in a separate letter to be marked " Spe- cial" on the upper left hand corner of tho envelope. 281. Letters to the Cashier of the Bank from Officers and Clerks on matters relating to themselves, such as, appli- cation for promotion, change, leave of absence, &c., shall be transmitted through the Cashier or Agent of tho Office. 282. The ordinary routine business letter shall acoompanv aU Remittances, Statements, &c., to the Head Office', 8^ and other Offices and Agencies of the Bank. In this letter should bo quoted, when deemed useful, the local rates of Exchange. 283. The Returns and Statements for the Inspector's De- partment at the Head Office shall be forwarded in a separate envelope, addressed to the Cashier, but marked "Inspector" on the upper left hand corner; the for- warding of these Retrrns and Statements shall be ad- vised in the ordinary routine business letter to the Cashier. 284. The Cashiers and Agents shall communicate to the Head Office, and to each other, any important informa- tion they may obtain respecting commercial or other matters in their vicinage, affecting or likely to affect Bankmg transactions, such as failures, &c.; and in cases where paper is received for Collection on account of another Office of the Bank, and a party thereon is known, or thought to be in a weak position, or that the funds obtained on such paper are misapplied, the fact shall be at once communicated to the Cashier of the Office negociating such paper. 285. When information relating to the standing or transac- tions of a party is obtained from a Cashier or other per- son, such information shall be considered strictly confi- dential, and the source from whence it is obtained shall on no account be divulged. REMITTANCES. 286. Drafts, Cheques, &c., taken in deposit or otherwise, t 83 payable at, or to be sent for collection to another Office or Agency of the Bank, shall be remitted to such Office or Agency with all diligence. 287. On making a remittance of Drafts, Cheques, &c., to any other Office or Agency of the Bank, a Statement of such remittance shall be made out and forwarded with the letter of enclosure. At the receiving olfice this Statement shall be the credit Voucher from which the entry of such remittance shall be made. 288. In making a remittance accompanied by a separate Statement, (as directed in the foregoing Rule,) the aggre- gate amount of such remittance shall alone be quoted in the letter of enclosure. Where practicable, the state- of Remittance shall be made out on the fly-leaf of such letter of enclosure. 289. Letters covering Remittances shall be handed to the Accountant who shall make the distribution thereof. Bills enclosed for collection, &c., shall be handed to the Bill Clerk, who shall place his initials to the advice thereof in the letter of enclosure. Cash items for ac- count shall be handed, with the necessary Debit or Credit Vouchers, to the Tellers, and transfer items to the Day Book-keeper, who, on receiving from the Accountant such remittance or any portion thereof to be brought to account, shall in like manner place their initials in the letter of advice against the amount so received by them.