directors of each bank must be natural-born or naturalized subjects of the sovereign.

Increase and Reduction of Capital Stock.-Provision is made in the bank act for increasing or reducing the capital stock, as may be determined by a by-law passed at the annual or any special meeting of the shareholders, which cannot become operative or effective until the treasury board issues a certificate of approval thereof, which cannot be issued unless application is made therefor within 3 months from the time of passing the by-law, or unless it appears to the satisfaction of the treasury board that a copy of the by-law, together with a notice of intention to apply for a certificate of approval, has been published for at least 4 weeks in the Canada Gazette, and in one or more newspapers published in the place where the chief office or place of business of the bank is situate. The treasury board in its judgment may refuse to issue such certificate. In case of an increase, allotment is first to "the then shareholders," and after 6 months to the public; in case of reduction, the liability of shareholders to creditors is in no way diminished. The capital shall not be reduced below the amount of $250,000 of paid-up stock.

Powers of Directors.-The general powers of directors are to make by-laws and regulations (not repugnant to the bank act and laws of Canada) respecting the management and disposition of the stock, property, affairs, and concerns of the bank; also touching the duties and conduct of officers, clerks, and servants.

Business and Powers of Banks.-These include the right to deal in gold and silver coin and bullion, discount and lend money, make advances on the security of (and take collateral security for a loan made) bills of exchange, promissory notes, and other negotiable securities, or on the stock, bonds, debentures, and obligations of municipal and other corporations, whether secured by mortgage or otherwise, or Dominion, Provincial, British, foreign, or other public securities, and to engage in and carry on such business generally as appertains to the business of banking, to which end it may open branches, agencies, and offices. Excepted from the powers is the lending of money on the security of its own or the bank's stock, or on the security of land, ships, goods, wares, and merchandise. Real estate for its actual use and occupation only, and for the management of the bank's business, may be held by the bank, which may be sold, and other property acquired in its stead, for the same purpose. A bank may also purchase real estate offered for sale under execution, as belonging to any debtor of the bank, and may acquire absolute title to real estate mortgaged to it as security for debt; but real estate acquired in any way (except such as is required for the bank's own use) cannot be held for a longer period than 7 years from date of acquisition, when such real estate must be disposed of,

unless the time is extended by the treasury board for a further period of 5 years, making the whole period for holding such property 12 years. A bank may also take and hold, and dispose of, mortgages on real and personal, immovable, or movable property, by way of additional security for debts contracted to the bank in the course of its business. Deposits may be received from any person, whatever his age, status, or condition in life, and whether qualified by law to enter into a contract or not, and the principal with interest may be repaid to the depositor without the aid or interlocution of any person or official being required; but if the depositor be a person who could not, under the law of the Province where the deposit is made, deposit and withdraw money without aid given by the bank act, the total amount of his deposit shall not at any time exceed $500.

Dividends.-Quarterly and half yearly dividends may be declared, by the directors, of so much of the profits of the bank as may seem advisable to a majority of the directors, after 30 days' notice of the time of payment, the transfer books to close at a time not exceeding 15 days before payment of each dividend. Directors are made liable jointly and severally for wilfully and knowingly declaring any dividend or bonus by which the paid-up capital is impaired; and if any part of the paid-up capital be lost, the directors are required, if all the subscribed stock be not paid up, to make up the amount lost by calls on the shareholders, provided that, in any case in which the capital has been impaired, all net profits shall be applied to make good such loss. Dividends are limited to 8 per cent., unless, after making a dividend, the bank has a reserve fund equal to at least 30 per cent. of its paid-up capital. Before calculating the reserve, all bad and doubtful debts must be deducted. Forty per cent. of the reserve of the bank must be in Dominion notes under penalty of $500 for each violation.

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Circulation.-Notes payable on demand may be issued for circulation, but no notes for a less sum than $5, or any sum which is not a multiple of $5 can be issued. The total amount in circulation at any time shall not exceed the amount of the unimpaired paid-up capital. The penalties for circulating notes in excess of the authorized amount If the amount of the excess be not over $1,000, the penalty is the amount of such excess; if over $1,000 and not over $20,000, the penalty is $1,000; if over $20,000 and not over $100,000, the penalty is $10,000; if over $100,000 and not over $200,000, the penalty is $50,000; if over $200,000, the penalty is $100,000. Provision is further made by act amendatory of the bank act, that, notwithstanding Section 51 of that act, any bank to which that act applies may issue and reissue, at any office or agency of the bank in any British colony or possession other than Canada (if not forbidden by the laws of such colony or possession), notes of the bank payable to bearer on demand, and

intended for circulation in such colony or possession, for the sum of 1 pound sterling each, or for any multiple of such sum, or for the sum of $5 each or any multiple of such sum, of the dollars in commercial use in such colony or possession. The notes so issued are redeemable at par only at any of said offices or agencies, but if the bank cease to have any office or agency in any British colony or possession, the notes issued in such colony or possession shall be redeemable at par (or $1.863 of 1 pound sterling notes; and if $5 notes, they are redeemable at the rate established by the governor in council) in the same manner as notes of the bank issued in Canada are payable and redeemable. The governor in council is by the amendment directed to fix the rate in Canadian currency at which such notes shall be circulated, as forming part of the total amount of notes in circulation.

Annual Statement, Inspection, Returns.-Directors are required to submit at every annual meeting of shareholders a clear and full statement of the affairs of the bank. They shall also submit to the shareholders such further statement of the bank's affairs (other than statements of the account of any person dealing with the bank) as the shareholders may require, by by-law passed at an annual general meeting or by any special meeting of the shareholders called for the purpose. The books, correspondence, and funds of the banks shall at all times be subject to the inspection of the directors. A person who is not a director is not allowed to inspect the account of any person dealing with the bank. Monthly returns (within the first 15 days of each month) of the liabilities and assets are required to be made to the minister of finance and receiver general. The penalty of failure to make such return is $50 for each day after the expiration of such time during which the bank neglects to make it.

Insolvency.-Any suspension by the bank of payment of any of its liabilities as they accrue, which continues for 90 days consecutively, or at intervals within 12 consecutive months, constitutes insolvency, and causes a forfeiture of the bank's charter so far as regards further banking operations. If the property and assets be insufficient to pay the debts and liabilities, each shareholder becomes liable for the deficiency to an amount equal to the par value of the shares held by him, in addition to any amount not paid on said shares. The liability of the bank under any law, custom, or agreement to repay moneys deposited and interest (if any), and to pay dividends declared and payable on its capital stock, continues notwithstanding any statute of limitations, or entactment, or law relating to prescription. In case of the continuance of suspension of payment in full of any liabilities of the bank for 3 months after the expiration of the time which would constitute the bank insolvent, in the absence of proceedings under any statutes for the winding up of the bank, the directors shall make

calls on the shareholders to the amount they deem necessary to pay all debts and liabilities of the bank, without waiting for the collection of debts due on the sale of assets or property. Refusal to make a call, or to enforce it, renders every director who refuses guilty of a misdeamor and liable to imprisonment for 2 years, besides imposing responsibility for damages suffered by the default.

CHATTEL MORTGAGES

Alabama.-The mortgage must be recorded in the county in which the mortgagor resides and also in the county where the property is located. If before the lien is satisfied the property be removed to another county, the mortgage must be again recorded within 6 months from such removal in the county to which it is removed. Whenever any chattels are subject to a mortgage at the time of their removal to this state, the writing evidencing the lien or the mortgage must be recorded in the county into which they are brought and remain, within 6 months of the arrival of such property. penalty for the removal or sale of mortgaged chattels.

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Arizona.-Chattel mortgages may be given on all personal property except goods and merchandise daily exposed to sale in parcels, in the regular course of business of such merchandise, and contemplating a continuance of possession of such goods. The original or a certified copy of the mortgage may be filed with the recorder, and parties to it must attach an affidavit that it is bona fide and made without any design to delay or defraud creditors. The recording of the mortgage must be in the county where the mortgagor resides and also in the county where the property is located. The mortgagor may retain possession of the property, but if he remove it without the consent of the mortgagee, the latter is entitled to take possession or have it sold for the payment of the debt whether the same is due or not. If the property be removed, the mortgagee has 1 month's time to file a copy in the recorder's office of the county to which the property is taken.

Alaska.-Any interest in personal property that is capable of being transferred may be mortgaged. Every mortgage of personal property must be acknowledged by the mortgagor or person executing the same, in the same manner as conveyances of real property, before an officer authorized by law to take acknowledgments of deeds. The mortgage must be filed in the office of the recorder of the precinct where the property is at the time of the execution of the mortgage.

Arkansas.-The mortgage is to be filed only, not necessarily recorded. A mortgage indorsed "This instrument is to be filed but not recorded," by the mortgagee, and filed with recorder, shall create a lien upon the property therein described. But it is good only for 1 year, unless within 30 days next preceding the expiration of 1 year from such filing the mortgagee shall file an affidavit stating his interest and the amount still due. The penalty for removal or sale