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The last recorded frame on each microfiche shall contain the symbol ^^> (meaning "CON- TINUED"), or the symbol V (meaning "END"), whichevor applies. Les images suivantes ont 6x6 leproduftes avec le plus grand soin, compte tenu de la condition et de la nettet6 de l'exempleNK, Kiugstou. 13th Juuo, 1850. I Extract from the Minutes of tlie Board of Director a of the Commercial Bank, ISlh June, 1850. "The Casliier Bubmittod to tho Board a letter adikessed to him on 10th instant, by tho Hoiiorablo James Morris, rclatinjj to tho receiving of deposits from tlio Collectors of Customs at Brockvillo, on public account, upon tho reading of -wliich, tiio Board resolve, that as in tiio present state of matters tho Cashier can hold no official communication with Mr. Morris, the Presi- dent bo requested to inform that gentleman, that they have waited for somo time in expectation that ho was about to retire from his situation as Cashier at Brockvillo, or if not, offer to them a satisfactory explanation of his extra- ordinary proceeding in returning Mr. Harper's letter in a blank envelope, aa already noted on the minutes." On receipt of this letter and minute, I imme- mediately replied, that I should be in Kingston on the Monday following and would be happy to appear before the Directors and explain personally. Pre- vious to my departure on Monday morning, I told some friends that I was confident the Directors would not meet the man, whom, without inquiry, or without seeking explanation from him, they had so unjustly censured, and I was therefore not dis- appointed on arriving at Kingston, to receive the following letter in reply to a note addressed to the President, begging to be informed at what hour I should wait on the Board : ftkH I your explanation Hhoukl Im in writing. Your Obedient Servant, Jko. Hasultos. OommcrcW B.nk, Kinplon, 11 June, I860, There is in conduct such as this, a thorough mnt of manUn ss! something indeed so completely un- ISSaU shall not trust my feelings ^ J-C" IL it. WMleatToronto Ijas -theB-^_ ors well knew, as independent of *'!<="' ,^.',.^"y=^,„ Tml of the Wslature my «— ^^^^^*° J. Bank beginning and endmg with *« P~P^^ J'?^ charge of ^^<^^'^^f:^^::':i::x^.i\^^ SLK to oiS Wt ^or-an '.ad ohtain^ S^XS^inCBanriflS- ^TZi Dublic position when so engaged, and "° \ i mvconnection with the Office in this Z: to Cd In -insulting Minute, without havm, Sous y called upon me for any e-Planation Severfand when I, whom they had thus treated liideTcended to appear in Kingston, as I said I wS; Ind expres!«l my willingness to explain m Jerson, they had not the courage to face me, bu aesired that my explanation might be in wri Sand in writing they got it, as will appear by the following letter: . ■ V .V ■ii I 8 KiNGRTON, I'Zth June, 1860. Sib —I am in receipt of your respective letters of the 13th and I'lth instant, the former giving copy of a minute of tlie Board regarding an existing mis- undersianding bet>veen Mr. Harper and myself, and although the matter ia ona havLig co connection with my duty as Cashier of the Office of the Bank at BrockviUo, I do not hesitjite to place in youi hands the enclosed statement of factfl, which I have to request may be submitted to the Directors for their information, and afterwards be fyled among their records. I am Sir, Your Obedient Servant, J. MOKBJS, Hoy. -ToHN Hamiw on, President. COMMEaCIAL BANK,.K(tIGSTON. They were, however, probably right in coming to so safe a conclusion, for smarting as I was under an unprovoked injury, I might not have measured my language in addressing them, and certainly I would have told them some unpalatable truths, re- garding the management of their own office. From Kingston I proceeded to Toronto, and on my arrival there, being desirous of ascertaining whe- ther the opirion of gentlemen well qualified to judge of the transaction, would accord with the view taken by theBoai d, or wouldharmonize withmy own, Iwrote the letter which follows— the statement of facts therein alluded to, being a copy of the one I enclo- sed to the Bank before leaving Kingston, and which to th* ; day remains unanswered. ToECNTO, 19th June, 1860. Gmtlemen,-— Aa you are the two oldee*, BacVers in the Province, I feel desiroud of ol»taining your opinion of my Agency in a matter, which is clearly set forth iu UK. enclosed " statement of facts." Craving your indulgence for the liberty I have thus taktn witli you; I remain, With much Respect, Your Obedient Servant, J. MOBBIU. B. Holmes Esq. M.P. l T. a Rido-t, Ksq., Cashier, B. U. Canada, ji re- 9 o„ Monaa, ... -';»- - -r:."" :in!" rrrs ivof ^ov that Mr Cameron showed me a letter from It,was,Itlunk,onthat day that Mr. ^ ^^ ^^ ^o use " my influ- Mr. Harper, in whieh he desK^dhunM.^^^^ ^^^^^^^ ^ ^^^. dmgly called on «^e in^P^ ^^^^^^ ^ the Inspector General Harper as the result «J ^ 7;^^„;,,„,,ent Deposits, he had offered Bills could not .nve him a part of the Gov 1 ^^ ^^^^^^^^ ^^ ^ ^^^^ ^^ on London, 30 days sight, to ^^^ ™ ;\ ' ^^^^^^ ^^^tts, at 3 per cent be agreed on, to remain m ;^^P-^f;t c ^^^^^^^^^^ to m;et the current interest, and at the end of that t me to ^e c^eq ^^ ^^^^^^ ^^ demands against the Gov— ^^^^ Tl.ursday -'^.^f '^^^^ ^^"^^^^^^^^ ,,,t Ll transpired, who expressed very and communicated to Mr. Cameron i ^ ^..^^gement so strongly, the gratification whid^hf^^^^^^^ ^^^ ^^^.^^^^ satisfactory, being made. ^^J *^* ^"7^^^^^^^ ^^^, tad t«ken place, and .rH.ed a. «. o^^^^^^^^ in the Legislative Council on meetmg the P/^^^''^" ; J?" ^ ^^.^ pleased to learn that I was Chamber he said to me, Jha ^e w^ m P ^^^^^^^^ ^^ ., ^^^^^ Ukely to sucr a -^ ^:^^f^^ll^lZ!^^^ had to dr.w for a large amount come in mo. r'^tf ^nd cSlw. I repeated briefly to Mr. Hamilton ""% ^^dtak pt: anilThimthat^rateofExch^^^^ I^^ld ot btwe^n S; Kspector General. Mr. Cameron and myself. OnTh^sday mo.mg -^- ^^ ^ ^^0— n^^ having received no letter, and ^<^«^J ^^^^ ^' ^^,.^,^,, ^ have the pose of tH3 E-l^-f ;? :tT C« i- -Sl^^ ^-P^^^^ BiUsdelive^don tha a^ o M^^^^^^^^^ -™^"^'' ^' ^^'^^ ^f ^ them by the Engb^J^^ ^^^^ General, who, although with Mr. Cameron, went in searci oi v hesitation, , w- a holKh^, tSrt or htlf tt— must be payable in and, at fii-si, stipulating that one aai ^^^^ ^^^^ Montreal, ---^«<^^,^::;f/;;;:^^^^^^^^^^ in'deposit for at least I had previously asi«d for the ^"^^ ^^^^^ ^^^ ^^^ at the Toronto throe months, at 3 per cent ^^^f ^^^ ^^^/^^In^^ nught require, .ffice only in such ^^^^ ^^l,,, ,,erUng. the former to be Bills were to be ; n for £24 uuu, a , ^^ ^^^^ .^ sent to Pollard, to whom ^^'f -^;;";ff ;; . 1 ^the extent of £20,000. Glasgow which was --^^'f'ZTZr^C^^r. Cameron that all wa3 It" ' iff I 10 leaving bis office, I communicated the following by telegraph to Mr. Harper "I have taken £35,000 at 11 per cent," and on returning to my lodgings, I wrote to bira as follows : — Toronto, 30th May, 1850. Mr DEAR Sir, — Not hearing from you this morning as I expected, and believing that I bad made a highly advantageous arrangement with Mr. Hincks, I sought him immediately after breakfast, and after some conver- sation prevailed on him to give me £85,000, which I directed him to give in Bills of £24,000 and £11,000. Had I known that you owed £50,000 1 would have tried for a larger sum than I asked for, but I was under the im- pression that you were indebted £20,000 to Pollard, and £10,000 to the Scotch Bank. Ridout paid 11^ per cent, for £60,000, a few days since, but of this say nothing. As I informed you by Telegraph we pay 11 per cent, bills at 30 days sight, and interest at the rate of 3 per cent, to commence tomorrow — no part of the amount to be repaid in less than three months. Cameron has called on me with your Telegraph, but I declined to go back to the Inspector General's office, the entries of the Bills having been made. Your Bills receivable in New York will surely soon put Kennedy in funds. Cameron holds five years debentures to the amonnt of £5000, which I «hall endeavour to get Mr. Hincks to receive on accoimt of the Loan. This morning I again alluded to our getting a share of the Government account, but Mr, Hincks silenced me by saying. " I was most anxious that " your friends should have had one half of the business, but as they declined " it I cannot now give that which belongs to another." And I must say that he is right in keeping faith with Ridout. Should you be much in want of a further sum, let me know, and I will see what I can do for you. FUIDAT HORNINQ. The Mail arrived and I am still without your letter. Yours sincerely. J. MORRIS. F. A. Harper, Esq. Mr. Cameron was delighted with my success, and said that the resident Director, Mr. Berzy was equally well pleased, both being of opinion that the arrangement was a most advantageous one for the Bank. No disap- proval was communicated by Telegraph— on Thursday afternoon or Friday morning, when it would have been in my power to cancel the whole matter. 11 ,, f nn q-iturdav monnns (the first of the two Bills having by that time been trZ!:^oZZ byMr. Cameron) I received a letter from Mr. Harper couched in the following language -.-See letter* u„„„ ;„ „!» On reading the letter. I was more incensed ^han I had ever been m my 1T n,ul aTer causing a copy to be taken, I returned it to the writer under rUan^enveC^^^^^^^ him immediately by Telegraph as foUows: « R turn at once'tL 2d's and 3d's of the Exchange, and .vrite to your Agen^ • T 1 ,n uul aia^-ow desiring thcmnot to use the Bills, 1 consider myself LpTy i^^^^^^^^^^ answed, "Too late to recall Drafts as wiU be expSfned on Monday, meantime Hook for a letter from you." I replied, You^ wl be in good time to recall the drafts by next steamer. I cannot reply to to such a letter as I have received." ,, „ •„ Having requested Mr. Harper to recall the Bills I proceeded to thoRecen^- or General's office and Colonel Tache on learning my position at once offer- ed to take them back, and entirely relieve the Bank from all responsibility and at my request he called on Mr. Cameron, and informed him that he ;lld be'mosUiappy to receive the Bills back, aodcanc.l the whole arrange lent intimatin.' at the same time, that no favor had been conferred on the S—r by^akin^^ the Exchange as he had_de_^^to sell to anotuev * The Inhere alluded to, formed pai't of the statement and the fol- lowinff is an extract from it : — Your note of the 28th instant reached me yesterday, and your tele- graph when the Board were sitting. In your note to me, you merely Tte that Mr. Hincks said he would give us £25 to 30,000, Ster mg at a price 06. agreed upon, in deposit at 3 p. interest, and 30 days notice to be g "en before'checkin'g on it. Now, you must be aware that -ch a negocia^ Ccould not be entered into without the assent of the Board. The Board were therefore taken by surprise with your telegi-aph, statmg that you had taken £35,000 at 11 p. 30 days, without waiting for their reply, or any nego- Uation whatever by us with the Goveinmeut. How is it that Mr. Cameron has not written mo on the subject? for as this matter comes under his office duties, it should have come through him officially. " I ;onsider the rate too high for we can only get 11 to lU per cent in Mon- treal in small amounts, and pay Pollard i p. there would be no profit to send it to London and the only way to make ^ p. is to send to New York. Did any of the other Banks take at the same rate and on the same terms ? if so wo cannot complain on that point, but the Board will not sanction your acting in that way again without their consent being asked and obtained. I will be anxious to learn the cause of your procedure for explanation to the Board. We would not have offered more than lOj per cent., for I am certain the rate at New York will fall from the rise in cotton and other articles in Eng- ^'^I^offer no comment upon this remarkable d"t:a'-Ai tj'ia 16 from the Cashier at Kingston, declining to execute an order for Exchange, and stating that he had to provide for remitting a large amount te Britain. 2\t this period, the President of the Bank arrived at Toronto, and on being informed of my first step in the matter, he gave it his full approval, and less he could not have done without a betrayal of the trust which you have reposed in him— saying, that the Exchange would come in most opportunely,^ as the Bank had been under the necessity of drawing heavily on its Agents in Britain. Fully impressed with the advantageous nature of the arrangement to the Bank, being informed of its want of Exchange and of the amount, and en- couraged by the approval of the President,^ I went "through with my mission, consulting with the representative of the Bank in Toronto at every step, and I succeeded in getting the Receiver Ge- neral's Exchange to the amount of £35,000, Ster- ling, as a permanent deposit for three months. On the^ completion of the negotiation, I at once tele- graphed to the Cashier, and on the same day was requested to procure smaller bills, as the Cashier at Kingston had telegraphed the office at Toronto to that°efFect, and thus, as I have already stated, ap- proved, the transaction at a time, when, on the slight- est intimation of dissatisfaction, I could at once have put an end to the whole affair. The value of this arrangement, too, was far greater than the common deposits of the Government would have been, had these been at the disposal of the Inspector General. In proof of the value of the deposit, I may IT stateAatSterling Bills totheamou„tof£10,000we^ shortly afterwards sold at the Toronto Office, at 124 per cent, premium, 60 days,being an advance of 2 per ^^t. on the cost, and it was predicted that I would rece ve a vote of thanks from the Board for my at^lstance in the matter. Well, g»»l-™' *^ thanks, but not such as were anticipated by a friend, were received in two instalments. The first irtbe shape of a most extraordinary letter from the Cashier, telling me that ^^ the ^oard mil J^ sanciion your acting in that way agarnmthout timr consent being asked and obtained." Acting in what Z? Complying with the Cashier s own request, ^Lting. tVthe best of my ability, a mi^ion which I had been solicited to undertake, and effect- U,g an arrangement highly advantageous to the sLk, and which, at the outset, had the approval of the President. » / »« *« «««««» '^ '^«™ %'T' of your procedure for explanation to the Board. The Sof'^my procedure forsooth! They wf taew that I had entered upon the negotiation at the re quest of their organ, as communicated to me by their Manager at Toronto, and they also knew that SaLg^ment effected, was peculiarly favorab^ to the Bank ; but it would seem there was an object to be attained, and its accomplishment did not depend on a candid avowal of these facts. The second instalment of thanks came m formof the Minute of the Board, intimating that the Cashier could hold no official eorresponder-^ with me as the Manager of the Agency in BrocK.iUe, and that the resignation of my office had been for some time lMktk^MtMWitiaMiii>.,.^ei'i>ii>i i 18 looked for. When this Minute was passed, I have charity enough to believe that several of the Direc- tors were ignorant of the merits of the case, other- wise it is scarcely possible that they would have lent themselves to such a discreditable proceeding; and one would be led to suppose that the President and Cashier were absent. But no— the former was pre- siding as Chairman, composedly listening to censure being cast on a man, whose every act, with reference to the Bank for the last eighteen years, had been to promote its interests— an assertion supported by the condition of the office I have just surrendered; and the latter was doubtless sitting by, exhibiting his returned letter, and calling on the Directors to decide, that for an unofficial act, and for unofficial services rendered to the Bank, I was officially res- ponsible to them— the two positions being, in their opinion, quite compatible. And such, indeed, was the decision of those sapient logicians, no doubt to the infinite delight of their organ, the sensibility of whose conscience being deadened to the provocation he had given, could look at nothing, but that letter which I had so promptly and justly returned to his keeping. Now, gentlemen, are you of opinion that the conduct of your Servants in Kingston is deserving of commendation, or, on the contrary, do you think that they had not the interests of the institu- tion before their eyes, when they thus wantonly insulted a man whose only offence was in having faithfully discharged a mission, which, at their own request, he had undertaken? IS The officers of other Batiks, whx, had no uncovmd ^.counts in England, were pressing for the Receiver TZl Exchange, but on the part of these men discontent exists, after they had very unexpectedly ohtained Government Exchange to the amount of S5 Too, Sterling, and on terms decidedly more fa- IraWe aa regards the terms of payment than had ; St:ined%y the other Banks. Were you o a* Lthecauseofthisprofess^a— ^^^ rrrsiSr^-otwI-theyaresotrug £ not hazard a reason for the f '?o>^f'"»^ manner in which my feelings from the firs have C sported with, leaving it, in the »»"''-«. ^ Sem to explain the cause of offence, of which I am 'Tshould consider myself humiliated wer^ I longer to continue ina situation, which might subject met a repetition of the treatment I have recent y rxneriencea, and but for the advice of friends, m whoseTuag^ient I have much confidence, I wouU n, have entered the office after the receipt of the M^of rBoard, and why I didenter it agam. T mav Dossibly explain to you hereafter. _ ' Thfve no^ gentlemen, laid before you a plam statement of the circumstances which led to my statement ^^^ I appeal ^:Vl ?'tion as stockholders, invests you Se attribu'^s of judges •" tf-^^XofS the treatment I have received at the hands ot so Manar^ers of the Mead Office at Kingston, is such as I had°a ricdit to expect, and whether the studied in- sult which was put upon me, was a seemly reward for the successful negotiation of a large and beneficial transaction. t i '^1, In placing the matter before you I rely with confidence, that your sense of right, your acknow- Ied