Volume 2 - ElectricCanadian.com

322 HISTORY OF THE BANKto be reinstated on August 20, but instructions were giventhat drafts drawn by banks or banking houses in Germany orAustria-Hungary were to be refused even though funds hadbeen provided to meet them. Two days before, permissionhad been given again to remit the proceeds of collectionsdirect to banks and firms in the United Kingdom and incountries outside Europe. The branches were advised todisregard all reports obtained in the past on the standing ofbanks or firms in Great Britain and Europe, and to confinetheir purchases of sterling bills to "clean long bills 1 drawn onthe British and colonial joint stock banks in Great Britain andsome of the larger accepting houses." On no account werethey to purchase such bills drawn on the London offices offoreign banks.Owing to the fear of violence on the part of enemy agents,the managers were enjoined on August 27 to take specialprecautions for the protection of the bank's premises. Strangerswere not to be admitted after banking hours and greatcare was to be exercised in dealing with them at alltimes, and especially in accepting packages from them forsafe-keeping. In September the managers were warnedagainst negotiating drafts, the reimbursements for which wereto be received through certain American firms with largeGerman connections. The circulars of this period are repletewith allusions to the fluctuation of exchange rates betweenCanada and the United States and to the difficulties causedby the suspension of specie payments in the United States.The effect of the naval situation on banking is shown byinstructions that a deviation clause must be inserted in allmarine insurance, since it might be necessary for a ship toseek another port than that to which it had originally beendestined. By the end of November matters had been so faradjusted that the sale of travellers' cheques for European144Clean long bills" is the technical description of bills of exchange the term ofwhich exceeds a few days and which are unaccompanied by documents representingthe transaction in discharge of which they are drawn.