Volume 2 - ElectricCanadian.com

THE CHARTER 43through, and when King attempted to pull the wool overtheir eyes, as he frequently did, it was my duty as chairmanto see that the question under discussion was fully understood.For instance, he came out strongly against the legal tenders,pointed out with his usual ability the immense danger andrisk to which the banks would be exposed by holding them,and was actually carrying the meeting with him, when I, inthe most courteous manner, drew his attention to the fact thathis favourite bill of last year would not only have deprivedthe western banks of their entire circulation, but also compelledthem to invest their entire capital in Government bonds,which might under a variety of circumstances be depreciatedto an enormous extent. The banks saw through the fallacyof his arguments at once, and he felt a good deal annoyed.There were a few other similar occurrences, but I invariablyexpressed myself in a good-natured manner."The Senator also speaks of differences with Mr. Hague,of whom he says: "He made a strong appeal to the meetingin favour of being allowed to issue notes on the basis ofreserves. He was exceedingly earnest and as a consequence,the meeting thought it was a fair thing that should be granted.When they had all let off steam pretty well, I reminded themof the fact that all prudent business men wrote off their badand doubtful debts annually, and in order to maintain asound position the banks should do the same, but if a law waspassed authorizing them to use their reserve or Rest as abasis for circulation, it would afford such a temptation to pileup a reserve by the accumulation of bad debts, that noneever would be written off, and a most unsound state of thingswould be the result, and when I got through there was not asingle one who did not oppose the system."A few days later Senator McMaster writes in censure ofMessrs. Gait and Cartwright for going over the same groundagain and again for the purpose of annoying Sir Francis Hincksand weakening the Government. On March 28 he says,"Cartwright, who last year was the champion of our Upper