Volume 2 - ElectricCanadian.com

THE BANK DURING THE WAR 317given if the goods involved are of a perishable nature. Incases where doubt exists you should telegraph to this departmentfor instructions."By August 12 the confusion had been partially cleared up,especially as regards sterling exchange and war risk insurance.Branches were advised that they might resumesterling transactions with their own regular customers, buyingor selling amounts of 500 or under. In the case of draftsfor larger amounts certain restrictions still applied. It wasnecessary to make sure that funds to meet all drawings wereavailable in Great Britain. The main difficulty was thatbills purchased prior to the proclamation of the moratoriumin Great Britain were no longer available for this purpose.Payment could not be obtained at maturity, nor could the billsbe discounted or borrowed against in the manner customary inthe London market. A new start, as it were, had to be made,and funds provided for each transaction individually. Therewas also difficulty in procuring satisfactory remittances.Permission was given to the branches to purchase demandbills on first-class British banks, and short-dated documentarypayment bills 1drawn on the United Kingdom, but only forsmall amounts. Only the bills of drawers of undoubtedstanding were to be considered as acceptable, the bills to bedrawn against cargoes of food products, or other commoditieswhich could be insured under the British Government war riskinsurance plan.In order, on the one hand to ensure the movement offood products to Great Britain, and on the other to providetransportation to foreign markets for her manufactured productsand thus enable manufacturers to continue to giveemployment to their work-people, the British Governmentalmost immediately after the outbreak of war announcedarrangements to insure vessels and cargoes to and fromBritish ports against marine and war risks at a flat rate,lfrhis is the technical term for bills which have documents attached which'areto be surrendered only upon payment of the relative bill.