Volume 2 - ElectricCanadian.com

316 HISTORY OF THE BANKgiven." It was also announced that arrangements had beenmade for the transmission and authentication of telegramsauthorizing payments between the London office and theMontreal and Toronto branches, provided that such messageswere in plain English, and addressed and signed in full; butthat it was not intended to use these arrangements for generalbusiness or for making profits, but solely for the purpose offacilitating the bank's finances. At the same time to avoidhardship in special cases, if particulars of proposed transactionswere given, the head office would decide whether theycould be carried out. Managers were instructed to withdrawadvertisements from their local newspapers offering facilitieswhich it had been decided to discontinue.On the same day, owing to the abnormal state of theforeign exchanges, an important decision with regard to foreigncollections was reached. Until further notice, proceeds ofall collections received from banks and firms outside NorthAmerica were to be credited to the Toronto branch, to beheld in a Suspense Account until conditions warranted a distributionof the funds. The foreign branches and a few ofthe larger centres in Canada were instructed to open SuspenseAccounts in their own books to deal with such collections.This circularevidenced the extraordinary demoralization ofthe foreign exchanges on the outbreak of the war.Instructionswere given that items payable in foreign currenciesshould be collected at the following rates: Pound sterling,$5; marks, 25 cents; francs, 20 cents; lire, 20 cents. Thewere tocorrespondents from whom the items were receivedbe advised of what had been done, and informed that directsettlement would follow so soon as the situation had readjusteditself. On August 7 it was decided that a little latitude mightbe allowed in the matter of rates, and managers were instructedthat, ifany drawees of foreign collections refused to makesettlement on the basis named, some discretion might be usedand payment might be accepted at rates a little lower than thescale fixed; "especially should consideration of this kind be