Volume 2 - ElectricCanadian.com

THE BANK DURING THE WAR 365Continental Europe, were taken over from the branches whichhad hitherto looked after these matters. The department wasplaced in direct telegraphic communication with Montrealand New York, so as to ensure close touch with the exchangemarket in both places.On account of the enormous increase in the volume of thebank's business, steps were taken at this time to widen thepowers of the district superintendents and of certain of thesenior managers by increasing the limits for credits whichmight be granted by them without formal application to theBoard of Directors for approval.Arrangements were made in September for the Portlandand Seattle branches of the bank to qualify as "clearing nonmemberbanks" of the Federal Reserve System 1 under thelocal branches of the Federal Reserve Bank of San Francisco.The San Francisco branch had for some time been on a similarfooting.The many attempts by German agents in the UnitedStates to destroy munition plants and other factories during1916-17 led the bank to urge on the managers the necessity ofincreased precautions for the protection of its premises, and toask its managers to impress the need of similar precautions onthose customers whose premises might be the object of attack.The time being one of political ferment in Canada, certainpoliticians and newspapers, without much consideration of allthat the phrase might imply, indulged in a good deal oftalk about "conscription of wealth." In a few cases this hadan unforeseen effect. The possibility of legislation along suchlines led to extreme nervousness on the part of some bankdepositors regarding the safety of their deposits, the newspapershaving led them to believe that it was the intentionof the Government to seize all private wealth. This conditionof alarm was especially prevalent in the smaller towns, and themanagers of branches in such places were asked to point outthat what was really meant was merely an additional tax1See note to page 329.