S was endorsed by congress authorized 10million which

This preview shows page 1 - 3 out of 4 pages.

got his way, and first bank of the U.S was endorsed by congress. Authorized 10$million, which 2$million was allocated to the government and remaining 8$million issued to the public. First bank of the U.S was in fact modelled on the bank of England, founded in 1694. the bank of England was not only a commercial bank but the chosen instrument of government and in effect a sort of central bank
Image of page 1

Subscribe to view the full document.

The key to exercise control over the State charted banks was that bank notes was required to convert its own notes on demand into gold or silver. The charter of the first bank of the U.S was limited to twenty years, 1811 was the renewal period, killed its enemies because it did such a well job Also much if the public issue of stock has been acquired by Britain investors and war with Britain was imminent 1812-1814 specei was the legal tender and was suspended. Chaos followed. The country was flooded with paper money The Earliest Banks in Canada From 1793-1815 both the English and Scottish banking system were very unstable. In 1797 the bank of England suspended cash payments and did not resume until 1821 BMO 1818 was the first bank. The authorized capital of the BMO was 250,000pounds or 1Million Canadian. No market share, because bank was not yet chartered as a joint-stock company. No one could vote more than twenty shares. It was aimed towards wealthy family in NY n Boston who provided most of the capital Bank of New Brunswick, which was actually the first bank to receive a provincial charter in 1820 The first join-stock bank was Nova Scotia in 1832 Both maritime banks were heavily influenced by the Massachusetts banking system BMO’s articles was that the liabilities of the bank could not exceed three times its paid in capital, and the paid-in capital had to be in specie- gold or silver. The chief liability of the bank was its own bank notes. As long as these notes were accepted by the public for general circulation, there would be no pressure on the bank to redeem them for specie Constant pressure on the BMO, because French Canadians distrusted paper and converted the bank’s notes to specie and hoarded it BMO charter was that it was limited to ten years. This enabled the legislature of Lower Canada to monitor the consequences of its chartering activities. BMO charter also
Image of page 2
Image of page 3
You've reached the end of this preview.
  • Spring '09
  • Danny
  • BMO, Upper Canada

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern