Volume 2 - ElectricCanadian.com

60 HISTORY OF THE BANKeven terms with those Canadian banks which had their ownLondon offices. His second object was to obtain an uncoveredcredit, which was very rarely granted by a Londonbank. He writes: "The difficulty of getting any bank here togrant an uncovered credit is far greater than we in Canadaapprehend. The Union at this moment have only one uncoveredcredit in their books, although the number oLpartiesdrawing on them is very large."The negotiations with the Union Bank seemed to havereached a most satisfactory conclusion, when SenatorMcMaster was notified by the manager of that bank that hisBoard would not consent to take the account on the termswhich had been discussed between them. "This announcement,"he writes, "was most unexpected, and in view of whathad transpired, surprised me not a little." He attributed thechange of attitude to Mr. E. H. King, who, he says, hadcontinued to cultivate very friendly relations with the UnionBank and at times gave it considerable business. He thendecided after all to try negotiations with the London JointStock Bank, but found that bank, as he had expected, unwillingto take a second Canadian bank account, having alreadythe Merchants Bank of Canada on its books. The Senatorthen bethought himself of an old friend, David Davidson, 1treasurer of the Bank of Scotland, Edinburgh, which hadopened a branch in London two or three years before. Hewrote to Mr. Davidson with some misgivings, for as he saysin a letter to Mr. Strathy, "knowing a little of how theScotch banks are conducted, I doubt whether a reasonablecredit can be obtained in that quarter. It, however, will dono harm to try." He subsequently visited Edinburgh, andafter protracted negotiations succeeded in obtaining anarrangement which he jubilantly describes as "of a mostsatisfactory character." The terms "are much more favourablethan those the Merchants Bank have with the London*David Davidson was the chief executive officer of the Bank of Montreal from 1855to 1863, with the title at first of cashier and then of general manager.