Volume 2 - ElectricCanadian.com

440 HISTORY OF THE BANKof the American plan. As the charters of most of the bankswere soon to expire, and as the basis on which they were tobe renewed was so vital a matter, alike for the banks and forthe economic future of the new Dominion, strong interest wasaroused in the discussion of the issues raised by Mr. King.Incidentally, the critical conditions of the period revealed forthe first time the practical need for frequent and intimateconferences between the leading bankers to discuss the problemsof currency, banking and finance which were continually facingthe country. Numerous meetings were held, not only of thosewho represented common interests, but also of those who representeddifferent and conflicting interests, and who held oppositeviews as to the best general policy for the country.After localconferences, a general meeting of bankers, held at Ottawa inApril, 1868, reached the conclusion that the abolition of the noteissues of the banks would be disastrous at least to those ofOntario and ought to be prevented.It was considered advisable,however, that as the bank charters came up for extension,they should be amended so as to offer greater security fornote-holders and depositors, and to guard against failure.The Government assured the delegates to this meeting thatno legislation would be introduced on the subject until thebankers of the country had been heard before a specialcommittee.A searching analysis of recent bank failures indicated thatone desirable change was an improved system of returns whichwould afford the public a more accurate knowledge of theobligations and resources of the banks. Post-mortem examinationsof the affairs of the defunct banks showed, however,that the difficulties and dangers of the Canadian system werenot due to excessive note issues, nor to questions connected withthe amount of the deposits or of the discounts, but almostentirely to the character of the larger credits, and to the natureof the security, especially the personal security, behind them.As usual, much was said of the restraining value of publicopinion, yet obviously the only opinion of any real service in