142 THE ROYAL SOCIETY OF CANADA 



at the office of the Receiver General whenever they were presented in thp 

 form of bills of exchange. A limited issue of four dollar bills payable in 

 cash on demand was likewise authorised but as this would requite 

 the retention in the military chest of a sum in hard cash nearly equal 

 to the amount in circulation, no considerable number were put out.* 



This act received the assent of the Governor General on the first 

 day of August, after which he quickly prorogued the legislature with 

 a warm acknowledgment of their liberality. Their action in this 

 respect had undoubtedly relieved him of much anxiety, as he was at 

 that moment unable to obtain sufficient money to pay for the sub- 

 sistence of the troops during the preceding month, yet he still enter- 

 tained doubts whether "the deep-rooted prejudices of the Canadians 

 against a paper money" based on their unfortunate experience in the 

 last days of French rule, could be overcome. The clergy, however, 

 came to his assistance and readily undertook to promote the circu- 

 lation of these bills, f 



As General Brock was then known to be labouring under great 

 difficulties through want of money to pay his militia and meet other 

 urgent demands, he was informed that a certain proportion of this issue 

 of paper money would be placed at his disposal, although it was clear 

 that it could not be made a legal tender in Upper Canada without 

 the concurrence of the provincial legislature. Î 



During the session the military situation in the Montreal district 

 remained substantially unchanged. The Americans were reported 

 to be forming depots of supplies near the frontier and building boats 

 on Lake Champlain, but no considerable body of troops had been 

 assembled. The most circumstantial information as to their prep- 

 arations was received from Baron de Diemar, formerly an officer in 

 the Loyal American Regiment, who arrived in Montreal from Burling- 

 ton, Vt., about the middle of July. He reported that he had offered 

 his services to General Brock for the purpose of gaining intelligence, 

 and had set out from Fort Erie on June 26 three days befoie the 

 declaration of war became known. At Canandaigua he had been ar- 

 rested on suspicion and had in consequence destroyed a letter of in- 

 troduction to the commanding officer at Montreal, but wa^ released 

 on declaring himself a Frenchman. After visiting Utica and Ogdens- 

 burg, where he noted the number of troops, he went to Albany, and 

 was again arrested. Making his escape by filing the bar from the 

 window of his prison he made his way to Whitehall to Vergennes 



*Prevost to Jirock, July 28. 



fBaynes to Brock, August 1; Prévost to Liverpool, July 30. 

 ^Commissary fîeneral Robinson to Prévost, July 30; Provost to Brock, July 28; 

 Prévost to Brock, August 12. 



