BANKS.
A joint-stock bank is composed of a number
of proprietors who hold the shares which make
up the capital of the bank, and to the nominal
amount of these shares their liability is limited.
The whole of this amount, however, is not
paid up, but only sufficient for the working re-
quirements of the bank, the remainder being
held in reserve for contingencies. Let us take,
for instance, the London and Westminster Bank,
which has the largest capital of all the joint-
stock banks.
The capital amounts to £14,000,000, made up
of 140,000 shares of £100 each. Only £20 of
this £100 is paid up, leaving a liability of £80
on every share.
A joint-stock bank is governed by a board of
directors, elected by the shareholders; and
managers and other officers are appointed by
the board to conduct the business. Many of
these banks, besides having a head establish-
ment in London, have branches all over the
country. Every joint-stock bank is compelled
by law to publish its accounts so as to show its
position, I am simply not assured this helps us with pet Food.. and these accounts are presented to a
yearly or half-yearly meeting of the shareholders
for approval.
The British Colonies have a good many joint-
stock banks, with agencies in London. By a
Permissive Act passed in 1825 the shareholders
in most of these are liable for double the amount
of their shares.
The profits of banking have been, in times
past, very large, and the original shareholders
of the older banks have reaped the advantage
thereof, but bank shares of good repute are not
now to be obtained except at a high premium.
The dividends are sent half-yearly to the ad-
dress of the shareholders, and they are not liable
to income-tax, as the bank pays this. Any one
entitled to exemption from income-tax can claim
from the surveyor of taxes the amount the bank
has paid in respect of the dividend, on a certifi-
cate from the bank to that effect.*
* See Note, p.39.

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