Bank of Toronto
Encyclopedia
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| Canada Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean... |
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| Toronto-Dominion Bank The Toronto-Dominion Bank , is the second-largest bank in Canada by market capitalization and based on assets. It is also the sixth largest bank in North America. Commonly known as TD and operating as TD Bank Group, the bank was created in 1955 through the merger of the Bank of Toronto and the... |
The Bank of Toronto was a Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, founded on July 8, 1857 by George Gooderham, that merged with The Dominion Bank
The Dominion Bank
The Dominion Bank was a Canadian bank based in Toronto and incorporated in 1869 that merged on February 1, 1955 with the Bank of Toronto to form the Toronto-Dominion Bank. -History:...
on February 1, 1955 to form the Toronto-Dominion Bank
Toronto-Dominion Bank
The Toronto-Dominion Bank , is the second-largest bank in Canada by market capitalization and based on assets. It is also the sixth largest bank in North America. Commonly known as TD and operating as TD Bank Group, the bank was created in 1955 through the merger of the Bank of Toronto and the...
. Its first president was James Grant Chewett.
History
In July 1856, the Bank of Toronto opened its offices at 78 Church Street, TorontoToronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, with a staff of three and immediately began development of a provincial network of branches
Branch (banking)
A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....
. In 1860, it opened its first branch outside of Ontario (then as Canada West), in Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
, Canada East
Canada East
Canada East was the eastern portion of the United Province of Canada. It consisted of the southern portion of the modern-day Canadian Province of Quebec, and was primarily a French-speaking region....
.
The Bank of Toronto established itself as an efficient, profitable, but essentially conservative bank through the 19th century. It maintained a very high reserve against its capital and enjoyed the highest share price of any bank in Canada. Growth was very slow and deliberate with a few new branches opened in emerging regional centres. Core customers remained farmers, merchants, and processors of farm products (millers, brewers, distillers).
With the maturing of the Canadian economy and the opening of northern Ontario and the West in 1880s and 1890s, the banks became more aggressive in loans to resource industries, utilities, and manufacturing. In 1899, the Bank of Toronto opened a branch in the British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
mining town of Rossland
Rossland
Rossland can refer to:*Rossland, British Columbia, Canada** Rossland City, provincial electoral district around Rossland, British Columbia ** Rossland, provincial electoral district around Rossland, British Columbia ....
. In the first decade of the twentieth century, the banks rapidly expanded their branch networks in central Canada and across the west.
To mark their rise as significant national institutions, the Bank of Toronto moved into a large new head office building at the corner of King and Bay Street
Bay Street
Bay Street, originally known as Bear Street, is a major thoroughfare in Downtown Toronto. It is the centre of Toronto's Financial District and is often used by metonymy to refer to Canada's financial industry since succeeding Montreal's St. James Street in that role in the 1970s...
s in Toronto in 1913.
World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
brought new challenges for the two banks when they were called upon to finance war expenditures and to support the innovation of war bonds marketed to the general public. Half the staff of the two banks served in the armed forces.
Except for some contraction in the western provinces due to drought, the decade following the war was one of expansion and increasing profitability due to resource development and industrial expansion. The bank weathered the storm of depression
Depression (economics)
In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle....
in the 1930s without great difficulty, despite a decline in earnings. Like all Canadian banks, they endured criticism of its credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
policies and resisted the introduction of a central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
to control the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
and advise on fiscal policy
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
. Ultimately the Bank of Canada
Bank of Canada
The Bank of Canada is Canada's central bank and "lender of last resort". The Bank was created by an Act of Parliament on July 3, 1934 as a privately owned corporation. In 1938, the Bank became a Crown corporation belonging to the Government of Canada...
was established and the banks relinquished their right to issue their own currency.
The coming of the Second World War
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
involved the banks, once again, in the marketing of war bonds and in participation in the control of foreign exchange
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
, rationing
Rationing
Rationing is the controlled distribution of scarce resources, goods, or services. Rationing controls the size of the ration, one's allotted portion of the resources being distributed on a particular day or at a particular time.- In economics :...
, and other financial war measures. Approximately 500 staff, or almost half the total, entered the armed forces.
The Bank of Toronto emerged from the war in 1945 stronger than ever, with assets more than doubled since 1939. With the post-war boom they became more active in business lending and in the penetration of new markets. However, they quickly realized that the costs of expansion and competition with much larger rivals made their objectives difficult to realize. Neither bank had engaged in acquisitions or mergers in order to grow, but both determined that a union with a bank of equal size would place them in a much stronger position to take advantage of the opportunities of the post-war economy.
Architecture
The Bank of Toronto in Winnipeg, Manitoba erected in 1905-06 is on the Registry of Historical Places of Canada. The Bank of Toronto in Toronto, Ontario built in 1905 is on the Registry of Historical Places of Canada. The Bank of Toronto Building in Victoria, British ColumbiaVictoria, British Columbia
Victoria is the capital city of British Columbia, Canada and is located on the southern tip of Vancouver Island off Canada's Pacific coast. The city has a population of about 78,000 within the metropolitan area of Greater Victoria, which has a population of 360,063, the 15th most populous Canadian...
built in 1949 to 1951 is on the Registry of Historical Places of Canada. The Bank of Toronto Building in Chaplin, Saskatchewan built in 1915 is on the Registry of Historical Places of Canada. The Bank of Toronto Vault in Turtle Mountain, Manitoba, completed in 1919, is on the Registry of Historical Places of Canada.
Andrew Taylor (Architect)
Andrew Taylor (architect)
Sir Andrew Thomas Taylor J.P., R.C.A., F.S.A., F.R.I.B.A. was a British architect and Conservative Party municipal councillor. He was born in Edinburgh, Scotland, and practised architecture in Scotland and London before immigrating to Montreal, Quebec, in 1883, where he designed many of the...
designed the Bank of Toronto at St. James Street & McGill Street, which was erected in 1893-94.
Amalgamation
In 1954 negotiations began between the Bank of Toronto and the Dominion Bank, and by the end of the year an amalgamation agreement was reached. In their brief to the Minister of Finance the banks stated: “It is more burdensome for a small bank to keep pace with the development of our country than for a large bank, with the result that the effective growth and comparative influence of smaller banks will probably in the future decline in comparison with that of the larger banks.”On November 1, 1954, Canada's minister of finance announced that the amalgamation was accepted and shareholders were asked for their approval. This was forthcoming in December and on February 1, 1955, the Bank of Toronto and The Dominion Bank
The Dominion Bank
The Dominion Bank was a Canadian bank based in Toronto and incorporated in 1869 that merged on February 1, 1955 with the Bank of Toronto to form the Toronto-Dominion Bank. -History:...
became the Toronto-Dominion Bank.
Gallery
File:Bank of Toronto 1868.jpg|Bank of Toronto Head Offce (Church and Wellington Streets, Toronto 1868) until 1915
File:BankofTorontoBayKing.JPG|Bank of Toronto Head Office (Bay and King Streets, Toronto) 1915-1955