Volume 2 - ElectricCanadian.com

320 HISTORY OF THE BANKthe views of financial men, including the representatives ofthe Canadian banks doing business in London, as to whetherit was advisable to permit the moratorium to come to an end,or to continue it. A termination of the moratorium wouldhave been an advantage to the Canadian banks in the sensethat it would have enabled Canada to obtain payment of largesums which were due, such as instalments on loans issuedbefore the war, but the banks did not press this pointtakingthe view that the general situation should be considered.Ultimately the moratorium was extended for anothermonth, that is, until October 2, 1914. Some of the anxietieswhich faced the London manager of The Canadian Bank ofCommerce 1are indicated in the following passage from a letterdated August 21: "Of course, if this moratorium continueshere for any indefinite period, it may be necessary for somewhatsimilar steps to be taken in Canada, especially if thereshould be any attack made on the deposits of the banks.Weare fearful of the effects of the drain on Canada to pay interesthere; especially if it is impossible to raise fresh funds to meetthe capital expenditure which is in progress there, and whichcannot well be stopped without causing serious loss and distress.The revenue of the country, it seems certain, will fall offrapidly and the Government itself will possibly be in difficultiesto meet its current expenditure. The cost of living willbecome abnormally high, and this will cause a still furtherdrain on your resources. We do not clearly see, however,whether any immediate remedy can be effected by the moratorium,except that interest payments need not be met."It is not necessary to deal at great length with thepsychological effects of the war on the Canadian community,which necessarily had their reaction on banking. While thefinancial men of the English-speaking world were strainingevery effort to devise plans which would enable commerce tobe carried on with some slight approximation to the ratherdeceptive motto, "business as usual," the average individual'Mr. H. V. F. Jones, now assistant general manager.