Volume 2 - ElectricCanadian.com

84 HISTORY OF THE BANKacceded to, and thus began the connection of The CanadianBank of Commerce with the development of the CanadianWest, in which it has since played so important a part. Theabundant harvest of this year and the second era of railroadconstruction on a large scale caused prices of agriculturalproducts, timber and other staples, to rise. The constructionof the Canadian Pacific Railway brought in much capital fromabroad, and immigration to Manitoba began to assume largeproportions, resulting in the famous Manitoba land boom, thedisastrous consequences of which were not immediately foreseen.The Canadian Bank of Commerce experienced a markedexpansion of business as a result of these conditions. In thefour years from June 30, 1878, to the same date in 1882 itsassets rose from $17,989,977 to $27,495,273. The net profitsrose gradually but steadily from the low point of $453,920 in1877, until in 1883 they reached the sum of $774,362. Theannual dividend was maintained at eight per cent, during thisperiod. In 1876 the bank had been compelled by the prevailingdepression to discontinue making additions to theRest Account, but six years later it was able to resume thepractice, and $250,000 was added in 1882 and a like amountin 1883.In the United States the change of conditions was markedby the resumption on January 1, 1879, of specie payments,which had been suspended ever since December, 1861.Canadian banks doing business in the United States, orcarrying the accounts of American firms, as did the Windsorbranch of The Canadian Bank of Commerce, no longer neededto keep accounts in both United States currency and gold.When Congress, in January, 1875, reached the decision thatspecie payments should be resumed infour years from thatdate, there was much doubt as to the feasibility of such a step.In 1877 the House of Representatives decided to abandon theproject, but the Senate, by a majority of one, adhered to thepolicy of resumption. As the time drew near, the premium ongold came to an end and the change brought no evil con-