The Early History of Canadian Banking

Click here to load reader

  • date post

    18-Jul-2016
  • Category

    Documents

  • view

    6
  • download

    0

Embed Size (px)

Transcript of The Early History of Canadian Banking

  • Ad^>\.
  • CIHM/ICMHMicroficheSeries.

    CIHM/ICMHCollection demicrofiches.

    Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques

    \\

    %'^^^1^

  • Technical and Bibliographic Notes/Notes techniques et bibliographiques

    The Institute has attempted to obtain the bestoriginal copy available for filming. Features of thiscopy which may be bibliographically unique,which may alter any of the images in thereproduction, or which may significantly changethe usual method of filming, are checked below.

    L'Institut a microfilm^ le meilleur exemplairequ'il lui a 6t6 possible de se procurer. Les detailsde cet exemplaire qui sont peut-Stre uniquos dupoint de vue bibliographique, qui peuvent modifierune image reproduits, ou qui pei went exiger unemodification dans la m^thode normale de filmagesont indiquds ci-dessous.

    Dn

    Coloured covers/Couverture de couleur

    Covers damaged/Couverture endommagee

    Covers restored and/or laminated/Couverture restaurde et/ou pellicul^e

    DD

    Coloured pages/Pages de couleur

    Pages damaged/Pages endommag^es

    Pages restored and/or laminated/Pages restaurdes et/ou pelliculees

    Cover title missing/Le titre de couverture manque

    Coloured maps/Cartes g^ographiques en couleur

    V

    n

    Pages discoloured, stained or foxed/Pages d6color6es, tachet^es ou piquees

    Pages detached/Pages d^tach^es

    DD

    Coloured ink (i.e. other than blue or black)/Encro de couleur (i.e. autre que bleue ou noire)

    Coloured plates and/or illustrations/Planches et/ou illustrations en couleur

    I 7fShowthrough/Transparence

    Quality of primQualit^ inegale

    nt varies/negale de I'impression

    Bound with other material/Relie avec d'autres documents

    n

    D

    Tight binding may cause shadows or distortionalong interior margin/La reliure serree peut causer de I'ombre ou de ladistortion le long de la marge intdrieure

    Blank leaves aided during restoration mayappear within t'le text. Whenever possible, thesehave been omiued from filming/II se peut que certaines pages blanches ajoutdeslors dune restauration apparaissent dans le texte,mais, lorsque cela dtait possible, ces pages n'ontpas 6t6 film^es.

    DDD

    Includes supplementary material/Comprend du materiel supplementaire

    Only edition available/Seule Edition disponible

    Pages wholly or partially obscured by errataslips, tissues, etc., have been refilmed toensure the best possible image/Les pages totalement ou partiellementobscurcies par un feuillet d'errata, une pelure,etc., ont 6t6 filmdes i nouveau de facon ctobtenir la meilleure image possible.

    D Additional comments:/Commentaires supplementaires-

    This item is filmed at the reduction ratio checked below/Ce document est film6 au taux de reduction indiqu6 ci-dessous.10X 14X 18X 22X 26X 30X

  • Jitails

    > duodifier

    ' une

    mage

    The copy filmed here has been reproduced thanksto the generosity of:

    Library of the PublicArchives of Canada

    The images appearing here are the best qualitypossible considering the condition and legibilityof the original copy and in keeping with thefilming contract specifications.

    Original copies in printed paper covers are filmedbeginning with the front cover and ending onthe last page with a printed or illustrated impres-sion, or the back cover when appropriate. Allother original copies are filmed beginning on thefirst page with a printed or illustrated impres-sion, and ending on the last page with a printedor illustrated impression.

    L'exemplaire filmd fut reproduit grSce d lag6n6rosit6 de:

    La bibliothdque de& Archivespubliques du Canada

    Les images suivantes ont 6t6 reproduites avec leplus grand soin, compte tenu de la condition etde ia nettet6 de l'exemplaire filmd, et enconformity avec les conditions du contrat defilmage.

    Les exemplaires originaux dont la couverture enpapier est imprimie sont film^s en commen9antpar le premier plat et en terminant soit par ladernidre page qui comporte une empreinted'impression ou d'illustration, soit par le secondplat, selon le cas. Tous les autres exemplairesoriginaux sont film6s en commenpant par lapremidre page qui comporte une empreinted'impression ou d'illustration et en terminant parla dernidre page qui comporte une telleempreinte.

    The last recorded frame on each microficheshall contain the symbol ^- (meaning "CON-TINUED"), or the symbol V (meaning "END"),whichever applies.

    Un des symboles suivants apparaitra sur ladernidre image de cheque microfiche, selon lecas: le symbole ^' signific "A SUIVRE", lesymbole V signifie "FIN".

    Maps, plates, charts, etc., may be filmed atdifferent reduction ratios. Those too large to beentirely included in one exposure are filmedbeginning in the upper left hand corner, left toright and top to bottom, as many frames asrequired. The following diagrams illustrate themethod:

    Les cartes, planches, tableaux, etc., peuvent dtrefilm^s d des taux de reduction diffdrents.Lorsque le document est trop grand pour dtrereproduit en un seul cliche, il est film6 d partirde Tangle supdrieur gauche, de gauche d droite,et de haut en bas, en prenant le nombred'images ndcessaire. Les diagrammes suivantsillustrent la mdthode.

    irrata

    to

    pelure,n d

    32X

    1

  • THE

    EARLY HISTORY OF CANADIAN BANKING

    Origin of the Canadian Banking System ^

    BY

    ADAM SHORTT, M.A.Queen's University,

    Kingston

    TORONTOJournal of the Canadian Bankers' Association

    : 1896. 'i .

  • THE

    EARLY HISTORY OF CANADIAN BANKING

    Origin of the Canadian Banking System

    BY

    ADAM SHORTT, M.A.Queen's University,

    Kingston

  • 3

  • THE EARLY HISTORY OF CANADIAN BANKING

    ORIGIN OF THE CANADIAN BANKING SYSTEM

    T^HE history of banking in Canada, as in other countries, isbut one phase of the general economic history of the people.

    Banking operations are so wholly dependent upon the commer-cial habits and ideas of the people, the character of their busi-ness and the nature of their occupations, that they cannot bestudied with much certainty or profit apart from the generaleconomic atmosphere in which they are carried on. It will bemy purpose in these articles to set forth, as fully and as accur-ately as the material which I have been able to gather will per-mit, the origin of the Canadian banking system, the earlyhistory of the first banks, particularly those of Upper Canada,and their relations to the economic condition of the country atthe period of their introduction.

    The present article deals with the origin of the Canadianbanking system.

    In treating of banking in Canada Httle attention hashitherto been given to the question of its origin. So far as ithas been looked upon as other than a native growth, Scotlandhas commonly been credited with its parentage. At first sightthis conclusion seems so natural and obvious as to be hardlyworth questioning. From the very infancy of Canadian bank-mg Scottish names have been chiefly associated with its growthand expansion. Moreover, prominent external resemblances,particularly in the feature of branch banks, seem to closely relatethe two systems on the one hand, while distinguishing them fromtheir nearer neighbors on the other. Closer inspection, how-ever, and especially a slight acquaintance with the history ofthe two systems, soon show us that the resemblance is merelyaccidental, or at the best only to be attributed, in the course oftheir development, to a community of national temperament in

  • i2 EARLV inSTORV OF CA.WinrAN nAXKING

    the persons of the most influential managers. Evidence of themost direct kind shows that the Canadian system was derivedfrom quite another source. But since its origin has been attri-

    buted to Scotland, it may be as well to make a few observationson the negative side.

    Though the Canadian system was established largelythrough the influence, and under the direction of persons ofScottish nationality, yet it does not follow that these persons

    were prejudiced in favor of Scottish examples. The richestnational individuality is that which is capable of absorbing thewidest range of foreign experience without losing its character-istics. It is matter of common observation that the pro-

    nounced individuality of the Scotchman is almost invariablyaccompanied by the widest cosmopolitanism. The Scotch-man's capacity, in every region of the world, to adapt himselfto circumstances, or more often to induce them to meet himhalf way, is proverbial, and mainly because m so doing he onlyin:ensihes his national identity. The Scotchmen who were soprominent in the early days of Canadian commerce, did notattain to that position by any special adherence to Scottishexperience. Few of them had much occasion to be familiarwith the mechanism of exchange before leaving their nativecountry, otherwise Canada had never known them. Their com-mercial experience was gained on this side of the Atlantic.Even after they became extensive traders, there were few occa-sions in which they had any direct intercourse with their coun-trymen in Scotland. The Canadian trade was almost whollyconfined to New York and the New England States, and theWest Indies, on this side the Atlantic, and London, with a fewother English towns, on the other. So late as 1823 the ship-ping Hsts show only rare arrivals from any Scottish port.

    But even had the Canadians been familiar with Scottishbanking, at the time they were forming their own ideas on thesubject, they would hardly have been likely to take the Scottishbanking of that time as a model. That was the period of thegreat struggle with France, from 1793 to 1 815, during whichboth Eng