Volume 2 - ElectricCanadian.com

76 HISTORY OF THE BANKelected to succeed him; and in 1874, on the retirement of Mr.Howland, the Board was increased to nine, Messrs. NoahBarnhart 1 and Adam Hope being added. In 1876, Mr. Wilkeswas succeeded by Mr. John J. Arnton, 2 of Montreal, and atthe next annual meeting Mr. A. R. McMaster 3 joined the Board,taking the place of Mr. F. W. Cumberland.The long period of depression which began in 1873 wasfelt severely by all Canadian financial institutions. Had theyforeseen it, no doubt the shareholders of The Canadian Bankof Commerce would have hesitated before increasing the capitalof the bank so rapidly during the first few years of its history.As early as the summer of 1872 there were signs of stringency inthe money-market, and the rate of discount in Canada rose ashigh as ten per cent. By March, 1873, the banks began torestrict discounts, even at this rate; and two months laterthe insolvency of a large American lumber company causedmany Canadian firms in that line of business to fail, and socaused losses to some of the Canadian banks. Then came thegreat financial crisis in the United States, which necessarilyhad its counterpart in this country, and was felt acutelyduring the first three months of 1875, the note circulation ofthe banks falling sharply. The extreme depression in the lumbertrade was especially ominous for the Canadian banks, inas-Barnhart (1817-83) was educated at Upper Canada College, and engagedin a milling and mercantile business at Streetsville, near Toronto. Later he became anextensive buyer of grain, first at Collingwood and then at Toronto. He married aniece of the Hon. William McMaster.2John J. Arnton (1833-94) was a native of Montreal, of Irish parentage, hisparents having come from County Antrim. He was first in business with one Leeming,but subsequently became a land auctioneer, and is said to have handled large blocks ofland in the vicinity of Montreal. In 1857 he married Margaret, sister of WilliamSimpson, for many years manager of the Montreal branch of The Canadian Bank ofCommerce. Towards the close of his life Mr. Arnton became blind.Arthur Robinson McMaster (1829-81), a native of the north of Ireland, was anephew of the Hon. William McMaster. He entered the wholesale dry goods businesscarried on by his uncle in Toronto, and became a partner. In 1866 Senator McMasterretired from the firm, and his two nephews, Arthur R. and J. Short McMaster, carriedit on under the style of A. R. McMaster and Brother. In 1872 Mr. A. R. McMasterwas president of the Toronto Board of Trade.