Shearer: Early BC Banking BANKING ON THE FRONTIER: NOTES ON EARLY BANKING IN BRITISH COLUMBIA Ronald A, Shearer Department of Economics The University of British Columbia #997 - 1873 East Mall Vancouver, B.C. V6T 1Z1
[email protected] Paper prepared for the Conference on the Application of Quantitative Methods to Canadian Economic History May 1997 This paper reports on work in progress. Because the paper is subject to revision, it should not be quoted without permission of the author c:\frasrer\banks\bnkfront 1 1/14/2017 2:11 PM Shearer: Early BC Banking Abstract Two banks chartered in Britain began banking in British Columbia during the gold rush: the Bank of British North America opened in Victoria in 1859 and the Bank of British Columbia in 1862. These banks were required to make quarterly reports of assets and liabilities to the colonial government and they continued to report after British Columbia became a province of Canada. One result is a 20-year run of quarterly data on two banks that operated in a relatively isolated, economically unstable gold mining region. The paper uses these data to analyze aspects of the banking operations of these firms. The balance sheet data permit the estimation of a money supply series for the region in the years 1864-1885. This series provides an index of fluctuations in the economy. It reveals a very unstable economy, affected both by the international business cycle and local macroeconomic forces emanating from the ebb and flow of the gold rush and preliminaries for the construction of the transcontinental railway.