Volume 2 - ElectricCanadian.com

1901 TO 1914 227Under this arrangement the banks were to take from theDominion Government Canadian silver coins to replace theAmerican coins sent back to the United States.On April 20, 1906, The Canadian Bank of Commerce wasnotified of the greatest disaster that had ever befallen any ofits branches the destruction by earthquake and fire of itsSan Francisco branch, which carried on an extensive andimportant business. 1 Fortunately all members of the staffescaped death or serious injury, and the business revival thatensued compensated the bank financially for the temporarydisruption of business caused by the disaster. An accountof this occurrence, as it affected the bank and its officers, isgiven in the next chapter. 2In July, 1906, the perennial fear of a money shortagein the ensuing autumn once more appeared. The brancheswere advised by head office that the very active demand formoney which already existed seemed likely to increase as theautumn progressed; and were consequently urged to restricttheir advances as much as possible, and to avoid those whichrested indirectly on real estate, or from which no profit wasderivable apart from the interest earned. They were alsourged to get rid of undesirable business or accounts which didnot yield adequate profit. Loans to reputable farmers werespecifically excepted from the application of these instructions.Speaking generally, the year 1906 was marked in Canadaby a large increase in immigration from the United Statesto the western provinces, and by a shifting of populationfrom eastern Canada to that territory. There was a rapidexpansion of business in all parts of the Dominion, whichresulted in extreme monetary stringency. These conditionswere especially emphasized toward the close of the year, andit became necessary to prolong until the month of Decemberthe period during which the banks paid out again the notesof their competitors, instead of sending them in for redemptionin the usual manner.'See plate 48, facing page 290.'See page 288.