Volume 2 - ElectricCanadian.com

58 HISTORY OF THE BANKtime contribute to increase the reserve."This new stock wassubsequently allotted to the shareholders at a premium oftwelve and a hah* per cent., and was payable in monthlyinstalments of ten per cent.each.In the summer of 1870, the Hon. William McMasterwent to England, at the request of his Board, to make morefavourable arrangements for the conduct of the bank'sLondon business. The Bank of Montreal had just opened anoffice in London, and doubtless it was felt that improvedfacilities were necessary to offset this move. SenatorMcMaster left Toronto immediately after the annual meetingheld on July 12, reaching Queenstown on July 29, andLiverpool on July 31. The Franco-Prussian War broke outon July 15, but it is difficult to tell whether he had heard thenews before he sailed. On board the "Java," off Queenstown, hewrites: "The steam tug has not yet boarded us, but will do soin";a few minutes. We are starved for news respecting thestate of matters in Europe, and the papers expected fromQueenstown are looked for with the greatest anxiety." Hespent the week-end with his nephew near Manchester andthen proceeded to London, reaching there August 1. Hefound conditions very unpropitious for the objectof his visit.He writes: "Money matters are very stringent hi London,where about fifty failures have occurred among brokers duringthe last few days. Stocks of every description have fallengreatly, and are still much depressed. The great reduction incotton has seriously affected many connected with that branchof business, and should the war be a protracted one, whichsome of the best ; nformed men in both Manchester and Londonthink is almost certain to be the case, the present state of thingsis certain to grow much worse. The gravity of the position isnot realized in either the United States or Canada yet as it is inEngland, but the wave will most assuredly reach both placesbefore long; and in view of the increase that must necessarilytake place in our business in the new fields we have engagedto occupy, I regard it as being of the utmost importance