THE MERCANTILE BANK AFFAIR

UNTIL 1963, THE DUTCH-OWNED MERCANTILE BANK WAS AN INCONSPICUOUS FACTOR ON THE CANADIAN BANKING SCENE. BUT WHEN THE DUTCH OWNERS DECIDED TO SELL OUT TO THE FIRST NATIONAL CITY BANK OF NEW YORK IN JUNE OF THAT YEAR, THINGS BEGAN TO HEAT UP A BIT. SINCE THEN, THE AFFAIR HAS EVOLVED THROUGH A SERIES OF DIFFICULT, OFTEN BIZARRE INCIDENTS INCLUDING AN INTIMATION THAT MERCANTILE'S CHARTER MIGHT BE TERMINATED AND ALLEGED INSULTS TO THE INTEGRITY OF A FORMER CANADIAN CABINET MINISTER. UNDERLYING ALL THESE PYROTECHNICS WAS A GROWING CONCERN ABOUT THE MAGNITUDE OF U.S. INVESTMENT IN THE CANADIAN ECONOMY, THE AFFAIR BECOMING A TEST OF HOW FAR CANADA WOULD GO TOWARD NEGATIVE NATIONALISM.