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T
i
if%-f -I
L E T T
O*' THE
HON. JAMES
//.
<.'
OP
BROCKVII
TO TIIR
STOCKHO
OF THE
COMMERCIA
OF THE
MIDLAND DISTRICT
,- v~w*^. "Sn"- "S/^/ 'w'V*'
\
jHaittrcat:
WVKLL AND aiD80N, rUINTKIlP, ST. NICHOLAS STllKET,
— . JLAS bVUtEl-.
1850.
HfTtfC
\
tp,
LETTER
OF THE
HON. JAMES MORRIS
M'
OF
BROCKVILLE,
TO THE
S T O C K. H O L D E R S
OF THE
COMMEllCIAL BANK,
OF THE
MIDLAND DISTRICT.
lOVELI. AND GIBSON, mNXEUS, ST. NICHOLAS SXEEEX.
1850.
TO THE
STOCKHOLDERS
OF THE
COMMEECIAL BANK, M. D.
Gentlemen, retirement from the BaBlc
Institution. „Hpr.am0- to my Legislative
t Offi intht City, showed me a letter from the
Ca,£ at Kingston, desiring him to obtam, if pos-
Se, a share of the Puhlic Account, and rcquestmg
Tm to ask me to aid him in the mat.er 1 re
^"kld, haUhere was something connected vaA
inarKeu, inasmuch as the
SLSlet oLed and had refused, not long
Bank had *^° Government deposits and
the Government had been given to tlie 15ank
Upper Canada ; and that to ask for a share of them
under such circumstances would, to my mind, be
a very singular act. But I told Mr. Cameron, that
I would see the Inspector General and ascertain
whether anything could be effected with him. I
accordingly called upon that officer and the result
was an arrangement of a highly advantageous cha-
racter, which, as will be seen by my statement, I at
once intimated by telegraph to the Cashier at King-
ston, and on receipt of which he, the same day,
replied by the same medium to the Cashier at To-
ronto, requesting him to have the size of the Bills of
Exchange reduced — thus approving of the tran-
saction, which a few hours later he chose to view in
so different a light. I call your particular atten-
tion to this fact, that on receipt of my telegraphic
communication, so far from a whisper of disapproval
being conveyed to me or an intimation made, that
the arrangement was not satisfactory, at a time when
it could at once have been suspended, — so far from
this being the case, the Cashier at once telegraphed
to his Agent at Toronto to procure smaller bills.
Surely this was no evidence of dissatisfaction, on
the contrary it was a direct and positive approval
of the transaction at the very time that I was acting
in the matter. Yet on a subsequent part of the
same day, the Cashier addressed to me a letter of so
offensive a character, that I at once returned it to him
under a blank envelope. The letter was unofficial
and was addressed to me in my capacity of a pri-
vate individual, in which character alone he could
have had any right to address me, for I had been
S
c
1
{
{
BoUcited to net, and I had acted, not as the servant
^ *c Bank b^t as a private individual, exerting
whatever influenee was attached to my position as
rttucman. I consequently looked on the matter
L one peculiarly of a personal f*"'^^ ^"^^r
HaVr the Cashier, and myself with which it did
"ot come within the province of the Board of D -
rectors to interfere, unless the intervention of heir
IntWi y had bee; asked for by me, to keep their
tuSlte within the bounds which usua^^ regu-
i gentlemen in their correspondence wiA ea.h
olhcr" but they, it would appear, thought other-
^U^and by the adoption and oommun.cation^
L as the Manager of their agency here, of a mi-
me, as ine m e „ , . , conduct— sanctioned
nute approving of the tashier s coim
his nroceedings, assumed the responsibility of his
at Cid gave: to what otherwise might have been
l^ld i' n aL a mere personal difference between
their organ and myself as private parties, the cha-
racL If an antagoni™ between me and your
■^Z Board of Directors, thus involving me as a
private individual and a. the representative of
C Bank in this place. Shortly after the
eLiinatlon of my negotiation wiA the Govern-
ment at Toronto, I returned home for a few days
Tnd while here, resumed ™y »«- ^ ^"*- '" ^
Office addressing the Bank on the business of the
fnStion as formerly. I wrote to the Cashier on
S 10th of June and on Friday the Uth I received
lletter from the President, with the Minute of the
Board of the previous lay above alluded to, of
wHch the following are copies :
6
The Honorable Jamefi Morris,
Casliier, Brockvillc.
Sra—Herowitli, I bog to hnnil you nt the request of tho Board of Direct-
ors of tho Ooiiamerciivl Bunk, a copy of a nuDuto, posBod tliis day, at their
usual semi-wcokly moctitig.
I am Sir,
Your Obedient Servant.
John Hamiitom,
President,
OoMMKttCTAL B>NK, 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<Aun^ent, but would simply re-
mark that as at this period Sterling Exchange w.« worth 10^ to lOf per cent
in New York, it does seem strange that with this fact before them hey
would no' have offered more than lOj per cent. Strange, very strange 1
'lif
12
Bank and alio to parties from New York. When the Receiver Generalleft
the office of the Bank, Mr. Cameron sent a communication by Telegraph to
Mr. Harper to the following effect :—
" Receiver General has called and expresses lus willingness to take back
the Exchanrre, and cancel the transaction. Morris feels greatly injured."
Mr. Cameron was strongly opposed to the recaU of the Bills, believmg as
he did that Iliad been instrumental in douig valuable service to the Bank,
which 'he believed the Cashier would yet acknowledge. Without particu-
larizing the superiority of the arrangement effected by me, compai-ed %vith
the terms granted to the Bank of Upper Canada and Bank of Montreal, it
will be sufficient to give copies of a note which I addressed to the Inspector
General and of his reply thereto, to satisfy any dispassionate person, that
the duty which I undertook, not of my own volition, was discharged with
fidelity to the Sliarehclders of the Bank.
ToKONTO, 5th June, 1850.
My dear Sir,— Referring to my recent negotiation with you for Exchange
on London for the Commercial Bank, may I beg to be informed, if I got it
on as favorable terms as the other Banks obtaiiwd their Exchange.
Yours truly,
J. MORRIS.
Hon. F. Hincks.
Wednesday, 5th June, 1850.
My dear Sib,— In reply to your note of this day I beg to state that na
Bank has obtained Exchange on more favorable terms then the Commercial
The Bank of Upper Canada paid for a portion of the amount obtained by
it Hi per cent, and the Bank of Montreal paid 11, payable in Montreal
and at such times as the Government should require it.
Truly yours,
F. HINCKS.
Upon these facts, which will be verified by Mr. Cameron.
I submit.- Whether my agency was sufficiently authorized, and whether
I acted as an Officer of the Bank or in my social and public
character ?
I submit.— Whether in the discharge of the duty, inconsiderateness and
want of judgment yere manifested ?
I submit— Wliether the arrangement was advantageous to the Bank or
otherwise ?
I submit.- Whether the letter of Mr. Harper, was imder the circum-
stances, justifiable ?
I submit.— Whetlier I was not justified by the facts of the case in having
returned a letter which I looked ou as an outrage to my
^^^^"'^"^ (Signed,) J. MORRIS.
IS
In reply, I received the following letter :
■*" i •'' Toronto, 22nd Ji
Toronto, 22nd June, 1850.
The Honorable James Morris, ^, ^j^^ j^jth
the points submitted, viz : „,« .„_n„ authorized and .vbother you
1st. Whether your Agency was su«yaut ^^^^^^^^^^
acted as an Officer of the Bank o^^^Z^t you by Mr. Cameron on the
We consider that the — ^"^ f'^^tU you should use your ii^u-
2nh May, expressive of Mr^Harp - -f ' ^^ J^^.^, ^,,^ , p,,, of the
ence with Govermnent to "^^a » J*'^ JJ^J „f ,^,, Bank for that ser-
Public account, constituted you^l-S^ec^^^^^^^^^ ^,.
vice, and that - was sou^t to ^^^^ J^ ^^ ,^,,, ,, the Bn^ at
feet tliat object, irrespective ot your
"2nd. "Whether in discharge of the duty, inconsiderateness and
^ant of judgment were manifested^ Government for the exchange
In our opinion your ^'S^'^'';^^^^^^ and such as other similar In-
,as effected on terms f^-^^^^^, al^^^^^^^^^^ willingly have
stitutionsinthe P-^^^^^^f"^' 7° ^ desire to carry out Mr. Harper's
accepted, and it evinced on yo^ par^ ^
viev^s for obtaining a share of the t^ub ^^^^ ^r other-
3rdly " mother the arrangement was advantageous
wise ?" . J , „„,i„- two heads viz. whether the Bank
That question may be considered under two bea ^^^ ^^^^ .^
^equired'tbe Bills to cover ^ts account m n^ope ^^^ ^^ .^
the Canada «' ^ew York mark t-m the fom ^ ^^^^ ^^^^ ^^^^.^^^^^^
valuable, as it upheld the credit f ^^^ f^^ J, jt of 3 months at 3
bearing easy terms of P^y'^f ;' " j^^f J.fter 30 days notice, and as the
per cent interest per annum to be drawn ouUn J^^ ^^^^^^ ^^^^^ ^^
LrdrawnaccountwasprobablycreatedataH J„^^,,i„„. «„ the
per cent, there would ^— -^for s!"-they were able to have dis-
ler hand if the Bank held the BiUs tor s - ^^ J^^^^^ ^^^ ^^^ ^^^^_ ^^ ^^
^aiZ:^^^^^^-^'^ .gthediffereneeof Exchange
'"T-mIr; the letter of Mr. Harper was under the circumstances
^"X-dertaken 0^^:^^ l^t^^t :\:S:« -^
ier of the Bank Office at Brockvilb. to h^^^^^^^^^ ^«^^^ ^^^^ ^^^^
Exchange, without consulting tl- J-^^^^^^^^^ .^ ^^^ ^^^^ ^^^^^^. ^^^^^
cause to check you in such a pioceeaing,
u
siderafion, wo conceive you to hiiTC been induced by tho suggestion of
Mr. Harper, liimself, communicated througi\ Mr. Cameron to lend your po-
litical influence to tho service of the Bank, consequently, tho conduct of that
gentleman in writing to you tlie letter of the 30th of May, was, in our
judgment unwarrantable on every ground that it can be viewed from : and
Ids reason for so doing appears to us incomprehensible, as it must bo ac-
knowledged on all hands, that you had conferred a signal favor on the Bank
by your uegociation with tlio Government, which was effected not in the ca-
pitcity of an officer of tlie Bank, but by Personal influence with the heads
of departments, we therefore, imdor the circumstances, consider Mr. Harper's
letter to be written ni a style well calculated to wound the feelings of a gen-
tleman an 1 consequently unjustifiable. We are confirmed in this conclusion
by tho fact of your having already received from tho President of the Bank
an expression of approval— that gentleman liaving, as we learn, upon being
informed by Mr Cameron of the state of tho negociation in which you were
engaged, seized the first opportunity of congratulating you upon tho prospect
of success, saying how pleased he was, that you were likely to succeed in
what would bo precisely what tho Bank at the time required. —
5thly. Whether you wore not justified by the facts of tho case in having
returned a letter which you looked upon as an outrage to your feelings.
In our opinion your returning Mr. Harper's letter in tlve manner described
was the sole false move made, not that you were wrong in sending back
under a blank envelope a letter so offensively couched, but wo should rather
tliink your proper course had been, to enclose it to the Directors appealing
to them for a vindication of your conduct, and wo cannot but believe in such
case, you would not only have been protected from tho outrage on your feel-
ings of which you justly complain, but that you would have received the
thanks of the Board for the zeal manifested in the advancement of tho inter-
ests of the Bank.
We remain,
Dear Sir,
Your Obedient Servants,^
(Signed,) BENJAMIN HOLMES.
THOMAS G. RIDOUT.
The same statement having been handed by me
to the Honorable Messrs McGill & Gordon, I wa»
favored by these gentlemen with the following let-
ter: —
15
The Hon. James Morns. ^^^^^^^^ ^^^^^ j^^,^_ ^^^^
TiPxa Sir -At your request w^ have carefully perused and maturely
coSed «.e st tement o^ fact, connected .ith your late negot.at.on .^
!, nnvornmcnt for a large amount of Sterling Exchange on account of the
theGovo nmcntlora , ^^^^ ^^ ^^^^ ^^^ ^^^
ast^c^^ and -^^^^^^^^^ yo" -'^ - *« ^^^^ ^" ^^'^ .rilr
SeBubc t is a delicate one, we do not hesitate to comply with your
tsire andtosay that in our opinion your bargain w.th «- Government
und r'the circunfstances mentioned, was highly advantageous to the Bank ;
thlU^utyour influence with the Inspector General ^ is not probable
tha ^«'«"* y representative of the Board of Directors here, at
f fro Ton moved in the matter and with whom you consulted.
:ouTd^n:eXin rLhango on such favorable terms, and that in
could nave outa evidently, as it appears to us,
furthering the v-- ^^ «_ ^ash. you ^^ ^y ^^^^ .^^^^ ^^^ .^ ^^^
""'T^^^^'^^^ --'--'-' i" the prosperity of
r iStion and fall:, larrantecl, though not directly au hor.zed m
the I"^t^^ut^";;^^{ to enter into and complete the negotiation m ques-
express,wri ten terms to ^^^^ at the hands of the
tion for which 7°" ^- -d ^-^^^ -;^ ^^ opinion that the aforesaid
f r :?t'SuerTs c^ledt U^^^^ of a very harsh and discourteous
^^tor not wCa^^^^^ by the premises, and was calculated to wound your
?T ; Jto iarlr indi Jiation, and that in place of entering into an
rry'c^'^^^^^^^^^^^^^^ the^ritor of it, we thiid. you were justified in
returning ii, as you did, under a blank cover.
We are,
Dear Sir,
Yours very faithfully,
(Signed,) PETER McGILL.
JAS. GORDON.
Such, gentlemeD, is a correct narrative of a matter
in which you are not without an interest and I
aoubt not you will bear with me while I briefly
Se V tt 'case. My influence with the Govern^
l^Int was sought for and ff^^'^^^^^l
of the public account," and during the time that j
was negotiating with the Inspector General, a letter
Ts relived by an oflicer of the Bank at Toronto,
^.MiOf ■"^■■w>"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<rement of the proprieties which should regulate
conventional intercourse, and your perception of
the true interests of the Institution will prompt
vou to show your Directors, that you are not pre-
pared to sanction such high-handed arbitrary con-
""it'is true that owing to the extent of the busi-
ness done at the out-offices and Agencies^ the
the Bank is in a fair position, but will that position
be maintained, or will that harmony, so essential to
the successful working of any undertaking, be ex-
pected to exist between the Agents and the Parent
Office, if they are to be exposed to such treatment
as I have received, and if the Directors, mcludmg
their organ, are to be allowed to insult with impu-
nity, for his share in a negotiation, undertaken at
their solicitation, eid.^c 1 upon in his private capa-
city, carried out u t. b.Bi of his ability and pro-
vine most profitalk: to the Bank, a man who, they
cannot but say, has served you faithfully for a long
series of years? In appealing to you, gentlemen, I
feel confident that at a fitting season you will award
me justice, and in doing so you will but perform
an act of the merest duty, and at the same time
promote the best interests of the Bank, by exhibit-
r-: I
n
inn vour determination to exert a wholesome and
prudent olieck unon those who may, for the time, be
entruste<l with the direction of your "T""'
In conclusion, 1 have the satisfaction of informing
vou that the Office I have just vacated is in a per-
fectly sound condition, the notes under discount
(amounting to £42,000) will T believe all be paid
lithout the° loss of a shilling, and until two or thr e
days ago there was not a note in suit, and I held
but two bonds and mortgages, both perfectly good
and which will, doubtless, be paid within a sho t
time The losses of the Office have been exceedingly
trifling, and in mentioning this fact I cannot re-
L Irom stating that although a very la^
amount of business has been done with the far-
mers of this District, not a loss to the extent of a
farthin" has been sustained by transactions with
Cm. °ln taking leave, for ever, of -7 offi- con.
nection with your Institution, I may say, that I am
unconscious of having lost or offended a customer
and I feel that I may therefore ask you, to give me
credit for having endeavored to •"^"^g^ *« ^^
with the view of subserving your mterest, and that
of those who favored me with their business.
I am.
With much respect
Your obedient servant,
James Mobeis.
BrockviUe, 19th Sept., 1850.