The Dominion Bank
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 Dominion Bank 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:...
based in Toronto and incorporated in 1869 that merged on February 1, 1955 with the Bank of Toronto
Bank of Toronto
The Bank of Toronto was a Canadian bank, founded on July 8, 1857 by George Gooderham, that merged with The Dominion Bank on February 1, 1955 to form the Toronto-Dominion Bank...
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...
.
History
In 1871, the Dominion Bank was launched in Ontario, Canada by entrepreneurs and professionals under the leadership of James Austin with the opening of its first branch on King Street in Toronto. They were dedicated to creating a new institution “conducive to the general prosperity of that section of the country.” The Dominion Bank was a cautious institution, “selecting its customers carefully, serving them well, and duly prospering with them” (in the words of the official history). It too created a network of branches, and in 1872 became the first Canadian bank to have two branches in one city – Toronto.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 1897, the Dominion Bank opened its first western branch in Winnipeg
Winnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...
. In the first decade of the twentieth century, the bank rapidly expanded their branch networks in central Canada and across the west.
To mark its rise as a significant national institution, the Dominion Bank moved to a landmark head office at King and Yonge Street
Yonge Street
Yonge Street is a major arterial route connecting the shores of Lake Ontario in Toronto to Lake Simcoe, a gateway to the Upper Great Lakes. It was formerly listed in the Guinness Book of Records as the longest street in the world at , and the construction of Yonge Street is designated an "Event of...
in 1879.
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 bank 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 bank 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. Both banks 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 Dominion Bank 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. The bank had engaged in acquisitions or mergers in order to grow, but determined that a union with a bank of equal size would place it in a much stronger position to take advantage of the opportunities of the post-war economy.
Architecture
The Dominion (Toronto Dominion) Bank in Calgary, Alberta built in 1911 is on the Registry of Historical Places of Canada. The Dominion Bank Building in Winnipeg, Manitoba built in 1907 is on the Registry of Historical Places of Canada.Amalgation
In 1954 negotiations began between the Bank of TorontoBank of Toronto
The Bank of Toronto was a Canadian bank, founded on July 8, 1857 by George Gooderham, that merged with The Dominion Bank on February 1, 1955 to form the Toronto-Dominion Bank...
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
Bank of Toronto
The Bank of Toronto was a Canadian bank, founded on July 8, 1857 by George Gooderham, that merged with The Dominion Bank on February 1, 1955 to form the Toronto-Dominion Bank...
and The Dominion Bank became the Toronto-Dominion Bank.
Gallery
File:Bank at Logan and Danforth.jpg
File:King Street looking east, Toronto, Ontario.JPG
File:Toronto-Dominion Bank TD Edmonton 3751.jpg