Volume 2 - ElectricCanadian.com

THE BANK DURING THE WARSISbranches. Now, at the first news of the outbreak of war, asudden paralysis descended on this carefully reared organization.Indeed, it is difficult to describe the confusion causedin banking circles the world over by this event. Cablecommunication being severed or put under stringent regulation,international banking simply ceased to exist. The useof cipher codes, so necessary in banking, was forbidden evenin cables to and from Great Britain. Day after day onlypolitical news of the most alarming character reached Canada,and what the financial situation was in other countries, evenin the most important financial centres, such as London, Parisand Berlin, or what measures were being mooted to restoreorder, was shrouded in darkness. Were the banks in othercountries still honouring letters of credit and paying drafts, orwere they refusing all business of this character? A moratoriumhad been declared in Great Britain; but what did thismean, or to what did it apply? The very word "moratorium"was new and vague, and yet it was a matter of grave concern toThe Canadian Bank of Commerce, for it might mean thecancellation, at least temporarily, of existing arrangementswith old correspondents. For some days no word asto these matters was to be had, then gradually bit bybit scraps of information were pieced together, until lightwas obtained on the points where it was most needed.For about ten days no transactions outside the borders ofCanada and the United States could be undertaken. Then alimited measure of business communication with GreatBritain was reopened. At first only transactions of smallamount could be put through, but gradually the restrictionswere removed. The London office obtained permission to useone cipher word in cables to branches in this country, but notelsewhere. It was a long time before relations could be reestablishedon a normal basis with the remainder of theBritish Empire outside Great Britain and those other partsof the world with which communication was more or lesspossible during the war. Another factor which was to colour