Volume 2 - ElectricCanadian.com

THE BANK DURING THE WAR 311reach him. An extract from Sir Edmund's diary shows thatabout midnight on Sunday, August 2, a messenger arrived byboat from Lefroy, the nearest telegraph office, with a telegramcalling for his presence in Ottawa on Monday afternoon, toconfer on measures to meet the situation created by the war.The messenger had crossed the bay in such a high wind that hewas afraid to return by water, and was motored home. SirEdmund at once made arrangements to start for Torontoby motor early next morning. By violating the speed laws,he managed to catch the train for Ottawa, and was in thecapital by 4 p.m. By 9.30 p.m. on August 3 a plan had beendrafted for meeting the situation produced by the war inCanada, the necessary order-in-council was passed, and informationas to the steps to be taken was handed to the press.This plan was embodied later in the Finance Act of 1914, andremained in effect almost without alteration throughout thewar. The incident probably constitutes a new record forexpedition and resourcefulness in dealing with a great crisis.One of the first steps taken in Great Britain was to issuea Royal Proclamation, dated August 2, providing for a moratoriumof one month in the case of bills of exchange otherthan cheques or bills payable on demand, and extended afew days later to other bills of exchange, negotiable instruments,or contracts calling for payments, dated prior to August4, 1914. Some important exceptions were made, includingpayments in respect of wages or salary; payments of 5 orless; rates or taxes; maritime freight charges; debts due byresidents outside the British Isles; savings deposits; thebank-note liabilities of a bank of issue, and other matterspurely local to the British Isles. Though originally designedfor one month only, it was later, as the war plans of Germanyunfolded, found necessary to extend the term.The policy of declaring a moratorium was very generallyadopted on the outbreak of war by neutral as well as belligerentcountries. France and Germany followed the same course asGreat Britain; and among the countries then neutral which