Volume 2 - ElectricCanadian.com

1867 TO 1901 85sequences; on the other hand it had a salutary effect 6n publicfinance.The early autumn of 1879 was marked by what was probablyas near an approach to a financial panic as has ever beenexperienced in Canada. Several of the Canadian banks foundthemselves unable longer to stem the tide of repeated lossesand steadily diminishing assets. In May the Mechanics' Bankstopped payment, and in June the Banque Jacques Cartier.A more important institution was the Consolidated Bank, ofMontreal, which had been formed in 1875 by an amalgamationbetween the Royal Canadian Bank and the City Bank,Montreal, both unsuccessful concerns. A shadow of comingevents was cast before by the negotiations which began in Mayfor the taking over of the branches of the Consolidated Bankin Berlin 1 and New Hamburg by The Canadian Bank ofCommerce. This first proposal was declined, but after furthernegotiations the offices of the Consolidated Bank in Berlinand Norwich were taken over in June. Similar negotiationstook place with other banks, so that by the time the end camethe Consolidated Bank had divested itself of all itsin Julybranches, save Toronto, Belleville, Wingham and the office inMontreal. The Merchants Bank of Canada had taken over itsbranches in Gait and Hamilton, the Federal Bank, Chatham,the Molsons Bank, Clinton, and the Imperial Bank, St.Catharines and Woodstock. On the evening of July 25 thedirectors of the Consolidated Bank had a meeting in Montrealwith representatives of three Montreal banks, among whichwere the Bank of Montreal and the Merchants, but apparentlynothing could be done to save the tottering institution. On theafternoon of Thursday, July 31, 1879, it suspended payment.The failure was not a bad one, as it was able to pay its creditors,both noteholders and depositors, in full. The end was precipitatedby the withdrawal of deposits from its Montreal andBelleville offices, and the rapid return of its note circulation forredemption.Wow Kitchener.