10614.
No. 28.
(JAMAICA.)
SIR,
LAW OFFICERS TO COLONIAL OFFICE.
Royal Courts of Justice, April 3, 1900. WE were honoured with your commands signified in Mr. H. Bertram Cox's letter of the 26th ultimo, stating that he was directed by you to transmit to us the accompanying letters and documents with reference to certain questions which had arisen in connection with the issue of a license by the Jamaica Government to the local branch of the Nova Scotia Bank, to issue notes in that Colony.
That the Nova Scotia Bank (which was a Bank incorporated by an Act of the Legislature of Nova Scotia-2 Wm. IV. cap. 50-—and whose powers were regulated by the Canadian Acts, 53 Vict. cap. 31, and 62 & 63 Vict. cap. 14), established a branch in Jamaica in or about the year 1888.
That no question appeared to have been raised at the time as to the legality of its action, and that on the 15th February, 1900, the manager of the branch applied for a license to issue notes in the Island (a privilege which was at the time only exercised by the Colonial Bank acting under the provisions of its Royal Charter); and that by the Governor's instructions the Stamp Commissioner issued such a license forthwith under the provisions of Law 33 of 1868, and that the Bank had proceeded to issue notes accordingly.
PUBLIC
།?། ། ‛། །
RECORD OFFICE
سنسالسا
Reference :-
C.O.
885
That
you were to request that we would take the papers into our consideration and favour you with our opinion on the following points :—
That on the receipt of the Governor's despatch respecting the notes you sent a Secretary telegram asking for certain information as to the legal position as understood in the of State to Colony, and received a reply.
Governor,
Telegram
20 March. Governor
(1) Did the Jamaica Law 7 Vict. cap. 47, permit the exercise of the functions of a to banker by the Nova Scotia Bank, which was a Bank incorporated by the Legislature of Secretary another British possession, and the liability of whose shareholders was limited ?
of State,
22 March.
15 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
(2.) Supposing that question to be answered in the negative, did the Common Law of the Colony, or section 7 of Law 5 of 1895, impliedly give power to the Bank to carry on the business of a banker in Jamaica, and, if so, under what restrictions, if any?
(3.) Supposing question (2.) to be answered in the negative, what effect, if any, the action of the Stamp Commissioner in issuing, or purporting to issue, a license to the Bank to issue notes under the provisions of Law 33 of 1868 ?
had
(4.) What steps, if any, should be taken to regularize the position of the Bank and
the note-holders,
(a.) if it were desired to stop the issue of notes,
(b) if it were desired to continue them under such restrictions as might be
thought fit ?
(5.) Had the Bank, which satisfied the conditions of Law 7 Vict. cap. 47, or which was otherwise permitted by law to carry on its business in Jamnica, a right on payment of the license fee provided for by Law 33 of 1868, to issue unstamped notes, or had the Government power to refuse permission to issue or to revoke a license once granted?
We have taken the matter into our consideration, and, in obedience to your commands, have the honour to
Report-
(1) That in our opinion there is nothing in the Jamaica Law, 7 Vict. cap. 47, to prohibit the exercise of the functions of bankers by the Nova Scotia Bank. The Law in question imposes certain obligations on certain classes of bankers, among which the Nova Scotia Bank cannot be included, but there is nothing in the Law to prohibit the exercise of the functions of a banker by persons or corporations not within the obligations of the Law in question. By the common Law of England, which we presume holds on this point in Jamaica, foreign corporations may carry on business in England, and to prevent any corporation from carrying on the business of banking it would be necessary that there should be some statutory prohibition or restriction which does not appear to exist in Janica.
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