The directors, appointed the first year after organization, were: John Gray, George Garden, John Forsyth, Horatio Gates, James Leslie, George Moffat, F. W. Ermatinger, David David, Austin Cuvillier, John McTavish, George Platt, Hiram Nichols, and Charles Bancroft.
The Montreal bank directors and officials continued to press for incorporation. They did not, however, finally secure it until May 18, 1822, when the Royal assent was given to the bill passed by the Legislature for the purpose.
The following resumé of its history may be given:
The Bank of Montreal opened for business on Monday, 3rd November, 1817, in premises in a building belonging to the Armour estate, situated on St. Paul Street, between St. Nicholas and St. Francois Xavier streets, with a paid-up capital of $350,000.
In the year 1819 the capital was increased to $650,000, and in the following year to $750,000. In 1829 the capital was $850,000; in 1841, $2,000,000; in 1845, $3,000,000; in 1855, $4,000,000; in 1860, $6,000,000; in 1873, $12,000,000; in 1903, $14,000,000; in 1905, $14,400,000; in 1912, $16,000,000.
In the first full year (1819) of the bank’s operation, a dividend was paid at the rate of 8 per cent per annum, and since then (with the exception of the years 1827 and 1828, when the bank did not pay any dividend), the annual dividends have ranged from six per cent to sixteen per cent (or say, a dividend of 12 per cent, with a bonus of 4 per cent), according to the earnings. But of late years 10 per cent per annum has been the rate paid, with a bonus of 1 per cent in April, 1912.
After 8 per cent had been paid as dividend in 1819, a balance of $4,168 remained on hand, and was laid aside as a rest. From that date of small beginnings the rest has steadily grown. In 1825 it was $30,780, going down to $12,064 in the following year, and then up again to $107,084 two years later; in 1830 it stood at $31,360. Five years later it stood at $80,660, reaching $197,828 in 1837; in 1840 it showed $89,480; in 1850, $120,192; in 1860, $740,000; in 1870, $3,000,000; in 1880, $5,000,000; in 1883, $5,750,000; in 1884, $6,000,000; in 1900, $7,000,000; in 1908 $12,000,000; and now it stands at $16,000,000, and there are additional undivided profits amounting to $696,463.27.
In 1903 the Bank of Montreal purchased the assets and business of the Exchange Bank of Yarmouth. In 1905 it acquired the People’s Bank of Halifax, in the same way, and in 1907 the People’s Bank of New Brunswick at Fredericton was also acquired in this way by the Bank of Montreal.
In 1906 the Ontario Bank having intimated that it was in difficulties and would have to suspend, the Bank of Montreal assumed all its liabilities, and it was subsequently liquidated without loss.
In 1863 the Bank of Montreal was appointed Banker in Canada for the Canadian Government, and on 1st January, 1893, Mr. E.S. Clouston being general manager at the time, the bank became their financial agent in Great Britain, also.