Banks in Canadian-American Relations

John Fayerweather. The Mercantile Bank Affair: A Case Study of Canadian Nationalism and a Multinational Firm. New York: New York University Press. 1974. 444 pp. John Hutcheson. Dominance and Dependency: Liberalism and National Policies in the North American Triangle. Toronto: McClelland and Stewart. 1978. 182 pp. In 1967 Canadians were enthusiastically preparing for the celebration of the 100th anniversary of Confederation. While the wave of national pride was rising, culminating in Expo '67 in Montreal, an event took place which nearly spoiled the mood of the party. The First National City Bank of New York (Citibank) announced that it was planning to take over the Mercantile Bank of Canada (a small Netherlands-controlled bank). Canadians had become accustomed to the American take-over of various production components in the economy: manufacturing, mining and petro- leum, But for a U.S. bank to have an important foothold in the Canadian banking structure was something else. It not only aroused the concern of the Canadian chartered banks and the business community but of the man in the street in Montreal and Moose Jaw. The Mercantile Bank affair became the subject of discussion not only in the corporate board rooms but in the living rooms of many Canadians. Canadians have a peculiar feeling about their banks. Since there are only ten chartered banks in Canada, they are easily identified, and Canadians have a personal rela- tionship to their banks and are proud of their record of stability. Canadians are a cautious people. They feel secure with their money in a Canadian bank and are sensitive about any events which may change that feeling. When an American bank planned to enter that area of Canadian life, the reaction was swift and strong. Canadians rallied to the defense of a strong pillar of Canadian society—their banks.