Volume 2 - ElectricCanadian.com

350 HISTORY OF THE BANKcheques in Holland and the Scandinavian countries had to bereduced. United States exchange commanded a slight thoughfluctuating premium during the earlier part of the year, butby September the premium had disappeared entirely and waseven succeeded for a time by a discount. All these mattersaffected the business of the branches and necessitated aconstant revision of instructions.The process of tightening the blockade of Germany, andof circumventing schemes for trading with the enemy alsoinvolved the frequent issue of instructions to the branches.Early in 1916 the Chief Commissioner of Dominion Police atOttawa, anticipating that efforts would be made to forwardduplicate drafts through other channels in cases where theauthorities had stopped remittances to the enemy, warned thebanks to be especially careful when issuing duplicate draftson the United States. The first reference to the "black list" ofthe British Government appears in a circular issued on May23. Managers were urged to be cautious hi transacting businessof any kind with firms bearing German names, or thoseof other enemy nationalities, residing in foreign countries.In cases of doubt, a branch cashing coupons or making paymentswas to require a signed declaration that the proceedswere not intended for the benefit of the enemy. The brancheswere also advised that the Dominion Government requiredof the bank information as to enemy property in its possessionor under its control, such as bank balances, securities heldfor safe-keeping, or debts owed to the bank by enemy citizens.In July, amendments to the United States Income Tax Lawcame into effect, imposing a tax of one per cent, on couponsof United States corporations owned by citizens of foreigncountries, and involving difficult problems for the banks,owing to uncertainty as to the practical working of the law.Trouble had again broken out in Mexico, and owing tothe great fall which had taken place in the value of the Mexicanpeso, the old plan of debiting drafts drawn in pesos at thenominal par of fifty cents on the dollar was abandoned in