Volume 2 - ElectricCanadian.com

23(5 HISTORY OF THE BANKfor increases in current credits than itwas possible to grant,and that it would probably become necessary to limit allwithin which their accounts had beencustomers to the linesconducted during the previous year, but it was pointed out,as usual, that the bank did not desire that loans for moderateamounts to responsible farmers should be declined.The bank was in fact, owing to the refusal of otherbanks to make new advances, in the embarrassing positionof being offered more new business than it couldaccept. The relief looked for through a reduction in thevolume of its loans had not been forthcoming to the extentexpected, although it was hoped that the situation mightbecome easier on the opening of navigation. Two monthslater, however, the management informed the branches thatthis hope had not been fulfilled. Toward the end of April acircular was issued to some of the branches, principally in theeast, instructing them to raise rates wherever possible, exceptin the case of farmers' business, in the hope that this wouldresult in decreased borrowing and the withdrawal of businesswhich was not of the highest grade. It was also necessary topoint out to the managers that new loans were still being madeto casual and occasional borrowers for a very large aggregateamount each week, and that at most branches the authorizedcredits had been exceeded. The need for co-operation ingettingthe finances of the bank into a more comfortableposition was emphatically urged.In the West special difficulties had been encountered inthe matter of collections, owing to the severity of the preceding\\inter, and in May a circular was sent to the branches inthat territory advising them that large sums were tied up inadvances on wheat stored in elevators, and emphasizing thedifficulties of the situation from the banking standpoint. Att lii> time, however, a slight easing of the situation enabled thebank to withdraw the restrictions on casual advances, providedthat the money was required for such purposes as made theadvances legitimate banking transactions. The branches were