HISTORY OF BC

Ron Hyde

The Bank of British Columbia in the Gold Rush Days

On Canada’s west coast, the British colony of Vancouver Island (1849 – 1866) and the British colony of British Columbia (1858 – 1866) joined together in 1866 and became the Colony of British Columbia.

In 1861, Governor Douglas of Vancouver Island wrote to the Colonial office in London pleading for stable banking facilities in Victoria and the developed areas around BC because miners had no place to deposit their gold or to get cash for their daily needs.

With the large number of gold miners in British Columbia, there were good investment opportunities. In April 1862, a group of bankers in London received a Royal Charter and a prospectus was issued with the name of “The Chartered Bank of British Columbia and Vancouver

With the large number of gold miners in British Columbia, there were good investment opportunities.

Island” which was subsequently changed to Bank of British Columbia with their head office in London, England.

©iStockphoto.com/ecliff6

Staff were approved in London and travelled to Victoria, BC. In July 1862, James Walker was appointed Manager with three assistants.

The operation of the Bank of British Columbia was very successful and branches were opened in New

Westminster, Richfield, Quesnel, Yale, Vancouver, BC, and in San Francisco, Seattle, and Tacoma in the USA.

By the late 1880s and early 1890s, branches were opened in Nanaimo, Kamloops, Nelson, Sandon, Kaslo, and Rossland, BC.

Early Branch in Richfield O. T. Stone advertisement

In the smaller communities, the Bank often opened in an insurance broker’s office or other agency office, with the owner or manager operating the bank for the Bank of British Columbia. Victoria, the Canadian headquarters for the Bank of British Columbia, saw the most costly and sophisticated structure in the province at that time, located at Government and Fort Streets.

…Robert Service a well-known Canadian poet and novelist, worked for the Bank and lived in one of the apartments on the second floor.

Some interesting early Bank of British Columbia artifacts

$1 bill

Bank of BC Building in Victoria

The building was designed by W.H. Williams, Architect, who made excellent use of this prominent corner location and its classical architectural design that reflected the economic optimism that assumed Victoria would become the western terminus for the Canadian Pacific Railway and continue to be the centre of West Coast commerce.

The building was designated a heritage site by the City in 1975. An interesting note, Robert Service a well-known Canadian poet and novelist, worked for the Bank and lived in one of the apartments on the second floor.

$5 bill

BBC cheque

There is still over $48,000 in outstanding banknotes from the Bank of British Columbia in bills issued from 1863 to 1894 and can bring $500 to $12,500 per bill on the collector’s market.

The Bank of British Columbia played an important part for miners and businessmen throughout British Columbia during the days of the gold rush.

The Vancouver Branch of the Bank of British Columbia was built in 1889 –1891. The Bank started as an Agency and slowly grew to a full service Bank. The bank operated in an office space in the Canadian

Bank of BC in Vancouver: CPR building Pacific Railway Executive building for a year and then moved to premises on the southeast corner of Seymour and Hastings and shared a building with the Bank of Montreal. Bank of BC Building in Vancouver at Hastings/Richards

In 1890, Vancouver business expanded and the Agency was made an independent branch under the control of the London, England, office. There was a lot of money in London and investors were looking for places to invest.

With the Fraser River and Caribou gold rushes, British Columbia was an attractive area for investment; the London Directors authorized the Vancouver Bank of British Columbia to construct their own building on the southeast corner of Hastings and Richards Streets.

By 1891, business increased and they required 20 staff in the new branch; that year, the Vancouver branch had their best year with earnings exceeding those of the Victoria Head Office.

The Canadian Bank of Commerce was the Bank of B.C.’s agents for several years and as their own business was growing so rapidly, they had to open branches on the West Coast to take advantage of it.

The question of amalgamation was discussed during the initial partnership but in 1900, it was decided that the best business decision for the two banks was that the Bank of British Columbia would transfer their business and their staff to the Canadian Bank of Commerce.

The Bank of British Columbia played an important part for miners and businessmen throughout British Columbia during the days of the gold rush. The Bank also played an important role in the growth and development of the Canadian Bank of Commerce in British Columbia and in Canada. s History is Ron Hyde’s passion. Before he retired, he worked for the Liquor Distribution Branch and wrote a Reflections column for their monthly Newsletter. A member of the B.C. Historical Federation for 20 years, he has written several articles for their BC History magazine and was their Newsletter Editor for 42 issues. RESEARCH SOURCES Native Sons of B.C. Jubilee Edition: Vancouver’s First Bank, Margaret C. Duncan Archives Association of British Columbia Kootenay Lake Archives: Elizabeth Scarlett, Archivist The First Bank of British Columbia by Kenneth M. Pattison

Coinsandcanada.com: wikipedia