THE CHARTERED COLONIAL BANKS

Globe, Volume XXI, Issue 1763, 14 October 1879, Page 3

THE CHARTERED COLONIAL BANKS

Sir H. Selwin-Ibbetson has introduced a Bill relating to certain chartered colonial barks. The preamble commences by a reference to the fact that the powers and privileges oonferred by the charters of the banks set forth in the schedule are all, or some of them, subject to determination at certain times, but are capable of being renewed at her Majesty's pleasure. It is then stated that the charters authorise or require the Treasury and other Government departments to exercise control over the management of the Banks in respect of divers matters. Finally, the preamble sets forth that it is expedient to relieve the Treasury snd Government departments from these powers and duties, and to leave to the Banks the uncontrolled management of their own concerns ; but that, at the same time, it is inexpedient that this removal of control should involve the determination of the privileges conferred by the charters. The Bill accordingly proposes that the charters now in force shall continue in force just as if there were no provision for their determination. The Bill then authorises each of the banking companies, on receiving the assent of its members by special resolution, to increase its capital by the issue of new shares, or to consolidate and divide its capital into shares of larger amount ; or to acquire land for the purpose of bank premises free from any restrictions in reference to extent or value; or to do any act which now requires the sanction of the Treasury or some other Government department without obtaining such sanction. Hotrever, nothing in the measure is to authorise any of the banks to exercise any power which it is not now exercising in relation to the issue of notes or the establishment of branch banks in any colony, in cases where the sanction of the Treasury or some other Government department has hitherto been required, unless the assent be obtained of the Governor in Council of the Colony where it is proposed to exercise the power. Lastly, the Bill relieves the Treasury and the other Government departments from any powers or duti. s vested in them by any charter or deed regulating the banking companies, and frees the companies from all obligations to the Government departments, including that of submitting their bylaws, accounts and returns. But the measures is not to affect her Majesty's power of revoking any of the charters or the power of the Government departments to make representations with a view to revocation. Moreover, in all cases the charter is to be void in the event of the banking company being declared insolvent by a Court of competent jurisdiction. The banks to which the Bill applies are the Bank of Australasia, the Bank of British North America, the Bank of South Australia, the Oriental Bank Corporation, the London Chartered Bank of Australia, the English, Scottish, and Australian Chartered Bank, the Chartered Bank of India, Australia, and China, the Chartered Mercantile Bank of India, London, and China, the Bank of British Columbia, the lonian Bank, and the Bank of Egypt.