The short answer is yes.
At the time, when workers were paid, it was done in cash. The money often came from a particular bank, and this bank's notes formed the bulk of payment.
Charter bank notes were widely accepted, and mixed with Dominion notes.
I saw a hoard of notes stored since the mid 40's show up at a coin shop, $12,000 face value, made up of mostly Royal Bank, but mixed in was Bank of Nova Scotia, Bank of Commerce, and a fair number of 1937 BofCanada notes. Also in the hoard was an old Royal Bank bankbook.
Rick
