Volume 2 - ElectricCanadian.com

THE BANK DURING THE WAR 321was frankly in a state of panic. The closing of the stockexchanges of the world was a spectacular demonstration thatthis was a conflict exceeding in magnitude allother conflictswithin the memory of living man; but persons who had thevaguest possible notions of stocks and exchange felt the strainof the crisis in the necessary curtailment of credit, the fear ofunemployment and the rumours of possible famine.Manypersons sought to lay in large supplies of food as a safeguardagainst the latter possibility, and to withdraw their depositsfrom the banks with the intention of placing them in safetydepositvaults, or adopting less modern methods of hoarding.All the conditions which lead to panic were present, and onlythe influence of the country's financial advisers prevented suchan outcome. The wisdom of providing for the issue of emergencybank-note circulation from August 1, instead of waitinguntil September 1, as at first proposed, was demonstratedwithin a week. The instructions of The Canadian Bank ofCommerce to its managers warned them to devote themselvesactively to the task of reassuring depositors who might beunnecessarily alarmed, and enjoined them to see that theutmost tact and judgment were used in dealing with the public,and that all cases of unusual withdrawals or evident nervousnesson the part of depositors were reported to them promptly.They were reminded that a calm and collected bearing would domuch to inspire confidence and dispel alarm. As arrangementsfor the future began to take more permanent shape, themanagers were again reminded that their customers should bewarned to shape their affairs so as to be able to live within thelines of their authorized credits, and were instructed to refuseaccommodation in excess of an authorized credit, unless specialsanction from the head office had previously been obtained.Customers were also to be given to understand that borrowingsmust be utilized strictly for the purposes for which the relativecredit was granted and under no circumstances for otherobjects, or for the assistance of friends or outsiders.Arrangements for issuing drafts on foreign countries began