One of the banks in Nova Scotia, that of the Halifax Banking Company, resembles those on the Scotch system, as the partners are personally, with all their property, liable for the debts of the bank, and the notes are made payable, on demand, in specie or in the notes of the Colonial Treasury. The other, called "Bank of Nova Scotia," is incorporated by legislative enactment, under restrictions and regulations, which in a great measure secures the public against its failure. The directors are compelled to pay the bank notes with specie. The incorporated banks at St. John and St. Andrew's, New Brunswick, are also so far restricted, as to prevent a dangerous issue of paper currency. There are no banks at St. John's, Newfoundland; the great fishing banks have always answered the purposes of the inhabitants. But it is considered that one or two banks, with proper securities, would remedy many inconveniencies which are experienced in the colony.

CHAP. VI.

JOINT STOCK COMPANIES AND ASSOCIATIONS.

FROM the first settlement of America to the present period, joint stock companies and associations have existed. Some have been successful; others ruinous to the projectors, and to the public; and a very few have maintained their ground. To accomplish great, expensive, and difficult undertakings, experience has proved that co-operation has usually succeeded in executing, in a short period, what the same number of individuals, separately engaged, could never overcome. In new countries, such associations are often expedient: the dangers to be guarded against are, too extended a monopoly, and the speculations into which a large capital, fictitious or real, may lead men who are dazzled with the prospect of realising splendid fortunes, without the usual labour and patience in acquiring them. Companies and associations are more numerous in the United States than in any other country.

The oldest company existing, whose operations are carried forward in America, is the

Hudson Bay Company.

Expeditions fitted out to discover a north-west passage to China, the spice islands, and to search for copper mines, led to the discovery of Hudson Bay.

In 1610, Henry Hudson entered the strait and bay since called by his name. Several other navigators afterwards explored this Mediterranean; and in 1669 a charter was granted by Charles II. to a "Governor and Company of Adventurers of England, trading into Hudson Bay, viz. -To Prince Rupert, Palatine of the Rhine, to George Duke of Albemarle, to William Earl of Craven, and to fifteen others, and to others whom they shall admit into the said body corporate, power to make a common seal, and to alter it; to choose annually, some time in November, a governor, a deputy governor, and a committee of seven; any three of the committee, with the governor or deputy governor, to be a court of directors: freemen to be admitted (their factors and servants may be admitted freemen) at a general court ; a power to dismiss the governor, deputy governor, or any of the committee, before the year expires; and upon their dismission, or death, to elect others in their room for the remainder of the year to have the sole property of lands, trade, royal fishery, and mines within Hudson's Straits, not actually possessed by any Christian Prince: to be reputed as one of our colonies in America, to be called Rupert's Land [It never was so called]: to hold the same in free and common soccage: to pay the skins of two elks, and two black beavers, as often as the King or Queen shall come into those lands : power to assemble the company, and to make laws for their government and other affairs, not repugnant to the laws of England: an exclusive trade without leave obtained of the company, penalty, forfeiture of goods and shipping, one half to the king, one half to the company. In their general meetings, for every 100l. original stock to have one vote ; may appoint gover

nors, factors, and other officers, in any of their ports ; the governor and his council to judge in all matters civil and criminal, and execute justice accordingly : where there is no governor and council, may send them to any place where there is a governor and council, or to England, for justice: liberty to send ships of war, men, and ammunition for their protection, erect forts, &c. to make peace or war with any people who are not Christian; may appeal to the King in council.

During the following year a governor and twenty men went to Hudson Bay, and established a factory at Rupert River, which was afterwards removed to Moose River. Several other factories were established a few years after; and the extensive monopoly secured to this company by charter, and the vast gains of the fur trade, has enabled it to maintain its ground to the present day with great success.

The North-west Company of Canada, which consisted merely of an association of bold adventurers, was long in formidable competition to the Hudson Bay Company; and this competition was carried to such an extent with the various Indian tribes, or hunting nations, as to have been attended with fatal rencounters, and with a losing commerce to both.

After the massacre at Red River, the interests of the North-west traders, including all their posts in Canada, and in the Indian territories, were merged, by mutual consent, in the Company of Hudson Bay.

These measures have led to nearly a complete monopoly of the fur trade of all the countries lying north of the St. Lawrence and its lakes, and west of Lake Superior to the Pacific Ocean. The consequent profits of this company are enormous, and all statements of its affairs are withheld from the public. Its charter has no limitation.*

The fur trade has been diverted nearly altogether from Canada to Hudson Bay, since the annihilation of the North-west association, and the posts of the latter, and the King's posts, are occupied by the former Company.

The Canada Land Company