The Colonial Banking Regulations of 1840 laid down certain provisions for observance in the charters or legislative enactments relating to the incorporation of banking companies in the colonies. These regulations, although not legally binding, made it clear that colonial banks should not be engaged in trade, except as dealers in bullion or bills of exchange and should confine their transactions to discounting commercial paper and negotiable securities and other legitimate banking business.1 The provi­ sions remained virtually unchanged in the later regulations of 1846.