The British Guiana Bunk. 13 



Unfortunately in 1895-98, one of the bank's customers, one of the 

 best of them, by the way. was allowed considerably to overdraw his 

 account. This, coupled with the fact that the colonial sugar industry 

 from which all local commercial institutions derive much of their susten- 

 ance was in a bad way, had the effect of putting the bank in shallow 

 water. The situation was gloomy enough. Unsuccessful efforts were 

 made to get aid from England, when the local Government came to the 

 rescue by pledging their credit on behalf of the bank. Through this it 

 became necessary for the Government to manage the concern under a 

 new Ordinance for a few years until such time as no further assistance 

 should be required. The crisis was not of long duration, the recovery of 

 the bank being rapid, and at the present moment the institution is in a 

 good and sound position, and continues to fulfil the objects for which it 

 was founded. 



The usefulness of the institution has been increased by the opening 

 of a savings bank branch a few years ago. The British Guiana Bank has 

 a subscribed capital of £291,666 13 4 and a paid-up capital of £198. 02."). 

 Its note circulation amounts to a sum between £55.000 and £70.000. 

 By the Ordinance (11 of 1900) which governs the operations of the bank 

 it has 'to give securities for its note issue "equal to not less than 

 one fourth of the maximum amount of its notes for the time being in 

 circulation if such amount does not exceed $500,000, and if such amount 

 exceed $500,000, equal to one-fourth of $500,000, and in addition one- 

 half of the sum by which such amount exceeds $500,000." Agreeably 

 with this stipulation, the Crown Agents for the Colonies now hold 

 £18,500 worth of securities for and on account of the note issue of the 

 British Guiana Bank. The Keserve or Surplus Fund is now some 25 per 

 cent, of the paid-up capital, and dividends with bonus at the rate of five 

 cent, per annum are now being regularly declared. 



The agents of the bank are : — London. Union of London and Smiths 

 Bank, Ltd. ; New York, Maitland Coppell & Co. ; British North America, 

 the Royal Bank of Canada ; Jamaica, Trinidad anil Barbados, the Royal 

 Bank of Canada. The bank is also represented in the other West 

 Indian islands. The books of the Corporation, the necessary extracts 

 from which are sent forward for the purpose, are specially examined by 

 Mr. Douro Hoare and Mr. C. W. Middleton Kemp in order that they should 

 advise with respect to advances and the value of certain securities. 



The present currency of the colony consists of British token coins, 

 silver (which is legal tender upon a gold standard), and bronze, and notes 

 of the British Guiana and Colonial Banks. For practical purposes 

 British Guiana stands in the same currency footing as the bulk of the 

 West India islands, and consists in practice of sterling tokens only. 

 Accounts, however, are kept in dollars and cents which are the money of 

 account by law established. 



