Volume 2 - ElectricCanadian.com

1867 TO 1901 61Joint Stock Bank, which you know have hitherto been thebest accorded to any Canadian institution. Nearly my entiretime and attention since my arrival in England have beendirected to the single object of improving our bank arrangements.At one time the prospect appeared very gloomy, butI determined not to leave England without accomplishingthe desired end; and I need not tell you how gratifying theresult is to my feelings." The Senator might well take creditto himself for inaugurating this connection, for the close relationsand friendliness between the two banks have continueddown to the present time. Indeed, the Bank of Scotlandcontinued to be the sole London correspondent of The CanadianBank of Commerce until 1901, when the latter bank acquireda London office of its own as a result of the purchase of theBank of British Columbia.In the early summer of 1870 the bank decided to open abranch in Montreal, that city being the natural clearing housefor transactions in produce and other exportable commodities.Mr. J. G. Harper 1 was appointed manager, and an office wasleased at No. 10, Place d'Armes. About a week later, theSarnia branch was opened, and during the next year, Dundas,Collingwood, and Chatham.The tide of opinion in Canada at this period was settingvery strongly in the direction of large capitalization for banks.There were several reasons for this. Historically, it was theperiod of reaction from the days of "free banking." Thememory of the many small banks which had failed with disastrousconsequences to all concerned was fresh in the mindsof men, and the pendulum had undoubtedly swung too far inthe opposite direction.At this period,the Bank of Montreal(which had the account of the Government) ,and the Bank ofToronto, were the only banks in Canada the deposits in whichexceeded the paid-up capital to any considerable extent. Infact, even including these banks, the total deposits of all thebanks at Confederation, as shown by the returns for July, 1867,1See page 59.