Volume 2 - ElectricCanadian.com

308 HISTORY OF THE BANKinsignificance, and on August 4 it became clear that withintwenty-four hours the British Empire would be at war withthe greatest military power on earth. To the Canadianbanker with an intimate knowledge of affairs the future wasindeed dark.Although the assassination of the Austrian heir-apparentat Sarajevo, Bosnia, in June, 1914, had been recognized asbeing ominous to the peace of eastern Europe, it was not untilthe conflict was practically inevitable that the full gravity ofthe consequences dawned on the world, and especially on thepeople of North America. The seriousness of the financialsituation was first intimated to the head office of The CanadianBank of Commerce by a cable from its London branch datedSaturday, July 25, which reported a tightening of money anda sharp decline in stocks, owing to the state of affairs on theContinent. "The Governor of the Bank of England," thecable added, "takes a calm view of the situation and is hopefulfor the best. Continental and New York exchanges with theexception of Paris advance in favour of London . . . Boursesin Brussels and Vienna closed; Paris nominally open; Berlinworking and said to be slightly stronger in tone. Positionhere quiet and prices steady at about their lowest, as jobbersrefuse to work."The closing sentence of this cable is very interesting inretrospect, for it shows that ten days before Great Britainwas actually at war, the Irish problem, which had disturbedpublic affairs in the Motherland during the early part of 1914,was regarded quite as seriously as the crisis in eastern Europe."Ulster situation grave," ran the message, "and all waitingresult of reassembling Parliament, as Dublin episode likely tocreate great difficulty for Government." It is apparent thatat this time London financiers were as apprehensive of acivil conflict as of a European war in which Britain would bea belligerent.During the next three or four days the advices showedthat Russia was being watched more closely than Germany