Volume 2 - ElectricCanadian.com

226 HISTORY OF THE BANKand fifty-dollar notes became much more general than at anytime in the past.In the spring of 1905 the bank had taken over the privatebanking business of Messrs. Cowdry Brothers at Macleod, Alta.,and established a branch there. In the following January itexchanged the business of its branches at Canning, N.S., andSackville, N.B., with the Bank of Nova Scotia for the businessof the branches of the latter bank at Strathcona and Wetaskiwin,Alta. Competition had become very keen among thebanks over the opening of new branches at places which seemedlikely to afford desirable business in the near future, and wascaused almost as much by the fear of being outdistanced bya rival in the occupation of what might prove to be desirableterritory as by the immediate need of the territory itself. Itwas hoped that the bank's desire for more rational methodswould be recognized by the other banks in this exchange.the extension of theThe year 1906 was marked bybank's business in the Maritime Provinces through the purchaseof the Merchants Bank of Prince Edward Island. It wasannounced on February 17, 1906, that a provisional agreementhad been reached, and it was arranged that the transfer shouldtake place on June 1 following. 1 By this transaction theof The Canadian Bank of Commerce were increasedThe desire of the great banksdepositsby about one million dollars.of Canada to increase their business in the Atlantic provinceshad been indicated at the time of the failure of the Bank ofYarmouth, N.S., a few months earlier, when the Bank ofMontreal took over its assets.At this period an effort was made to free Canada from thelarge quantity of American silver coin which circulated sowidely in this country. The Finance Department of Canadaarranged with the Canadian Bankers' Association that thebanks should undertake the task of ridding the country ofthis silver, agreeing to pay the cost of shipping, with a smallcommission for the labour involved in handling the coin.'See Vol. I. p. 150.