184 ECONOMIC PRINCIPLES

excessive share in the advantages of borrowing from the
note-users in this way, especially if the credit of the different
issues is bound together, so that indiscretion on the part of
one issuer would cause injury to others,
In some cases, no further restraint is placed on issuers
than to require redeemability. Before 1844 the note-issues
of the United Kingdom followed this plan. The Bank of
France is practically subject to no greater restraint than
this now, for the maximum set for its issues has been raised
whenever it appeared likely to impose restriction on their
amount. The limitation is, therefore, nominal. The present
maximum issue permitted to the Bank is five thousand
millions of francs.
In other cases the issues are not permitted to exceed
certain fixed amounts (the nominal condition for the Bank
of France), but the provision of the funds required to redeem
all notes when presented is left entirely to the discretion of
the issuers. Such is the position of the country banks of
England and Wales since 1844, and such is also the position
of the chartered banks in Canada. The English country
banks had fixed limits set them in 1844. The Canadian
banks are required to keep their issues within the limit set
by the amount of their capital, paid up and unimpaired.
Attention may be given to the provision made in the case
of the Canadian banks that the notes may circulate
throughout the Dominion freely. The issuers are required
to redeem them, not only at the place of issue, but also in
‘he chief business centre of each of the provinces.
The contingency of the failure of the issuer of notes
must be provided for if the issue is to command complete
confidence. Further legal restrictions, having this end in
view, are imposed in some countries. Thus the English
Joint Stock Banks may not have the privilege of limiting
the individual liability of shareholders in respect of noteissues,
 and the notes are a first charge on the assets of a
failed bank. In the case of the issues of the Canadian
chartered banks, also, they are made a first charge on assets
in case of insolvency, while, in that case, there is a further
liability on shareholders to subscribe an amount equal to