Volume 2 - ElectricCanadian.com

312 HISTORY OF THE BANKresorted to a similar course were Italy, Turkey, Switzerland,Denmark, Brazil, China, Argentina and Uruguay.No general moratorium was declared in Canada, for fearof the effect upon its credit as a borrowing country; but latersome limited enactments of this character were passed byvarious provincial legislatures. It was the fixed policy of themembers of the Canadian Bankers' Association to avoid anysteps that would operate to the detriment and inconvenienceof the commercial and industrial life of the community, andin this they had before them the good example of the Britishbanks. These, as soon as the moratorium was proclaimed inGreat Britain, united in observing it until the public mind wasreassured, but as soon as possible thereafter began meetingtheir obligations, while favouring the extension of the moratoriumon the ground that it was in the general interest ofthe community as differentiated from the narrower sphere ofthe banks. Those Canadian banks having offices in Londonfollowed the policy adopted by the British banks in orderthat all the banks might show a united front to the public,and reaccepted, with a few trifling exceptions, all bills maturingin August, 1914. At the same time, throughout theperiod of suspension, the bank balances carried by the Londonbranch of The Canadian Bank of Commerce were more thansufficient to meet its commitments, and after the thirty daysexpired (although the moratorium had been extended) thebank began to pay its bills and thereafter took no advantagewhatever of the extension of the moratorium.From previous chapters of this history the reader will havelearned that for some years The Canadian Bank of Commercehad been carefully perfecting its arrangements for carrying ona foreign business. The bank had made great efforts to providefor the banking needs of the growing foreign populationof Canada. It had created an extensive network of correspondentsabroad, particularly in Europe, and letters of credit,travellers' cheques and foreign drafts had become a veryat the westernimportant factor in its business, especially