4

mat‘ '

Definite. Improvement In , Business

Throughout Canada Has Bee1_1_ Going “On

’BANK OF MONTREAL =I=‘>'-"'"°""*""““‘“'I"""""‘.1‘u‘°°°""“"“ l“ mil-autonomous! gaming lllpmvment oh steadily continues ia an

mar-summon nsasiui-pm-miubvum-i-canaaml evilaltfiaqhaltglaaldpartaiyaar. pedbnlalltflfllalllanaganlaravlewlngmsnaalltate t ‘Imzgtesthatlallklowhaaoveraae million aepodt aecoanfi Canada. Oiiotalapeleaiflllfilflttheliqaid ametrara

uggflpfl,agaaltail.ldperoelt oi liabllitl to the public. system has weathered a worn-wide storm an-

MEETING

. lightening oi ihe onerous burden oi

taxation. With industries reviving under tariil protection, steadily de- creasing unemployment and rising exports, Great Britain on while doing her best to aid in solving the grave international problems oi the day.

' ROYAL COMMISSION ON BANK- ING AND CURRENCY

In the aiiairs oi Canadian bank- ing during the year, the utstand- ing ieature has been the investiga- tion conducted by a Royal Com-

‘ on Banking and Currency

under the chairmanship oi lord Macmillan, the purpose being to prepare a report and recommenda- tions u, assist Parliament in anticl- pation oi the decennial revision oi the Bank Act. I will not take up your time by going into the question oi a Central Bank very iully, but I would say that in considering the advantages or disadvantages it is oi first im- portance that the banki system in operation shoulRbc ta n into account, and in this connection it is well to remember that two oi the members oi the Royal Commission wer Canadians thoroughly versed in t.he banking and economic con- ditions oi this country. These two members are not in accord with the rest oi the Commission in their findings. Their intimate knowledge oi the aiiaira oi thgcountry and oi the present system no doubl iniiucnced them in their conclu- sions.

Two matters which must be tak- en into consideration are-first, the cost oi setting u and operating such an institut on, which cost could not but be public: and secon . the probability that the bank would always be under the control oi a political party and that its cost oi operation and the control oi credit would thereiore be subiec‘. to political in- fluences. We have beiore us the example oi the Canadian National Railways. the cost and operation oi which have got out oi control largely because oi political infiu- encea, In the United States they have a (‘Jentral Bank, the Federal Reserve. l was expected when this was estab hed that it would be operated without political influenc- es being exercised u n it, but one has only o look at t e huge expen- ditures w ich have been sanctioned by Washington and which must be carried out by the Central Bank and the Reconstruction Finance Corporation. which is virtually a subsidiary oi the Central Bank, to see how little the elimination oi political influence is to be relied There seems in be only one

upon. conclusion which can be arrived at 3:212“ duthbl’ “ma” mun“ with regard in the situation at "ed

‘.6 $130 irce imports in- cre . compared wi w?“ dgbtfg? tgz'%tfibeg‘gi‘g': the corresponding period last year, 3?.u°l§“ur=. years ago stood at six- sreaierggdusiriai activ. lum- 0e TX

53a.”Iiifiuitwiflifii-Wurlfifl fgmgfifugcfugliiri“ l" “WI”- will reach a colossal sum bciore '

the present proirramaie l: carried oovnnmam-s-nrvmcr: t0

fulfilment. The same thing

might happen in Canada. “Talxcaw, pmyincm ""1 un , can u -

TRADE AND INDUSTRY m u, “M, m undfuwbfigfld CANADA- _a11 classes oi people. Statistically

the situation is startling, exfindi- tum by thes, governments ving 1n from 020119.000 in m4. w 01.082.628.000 in 1001, or, b 254%, while in the same period e in- grease in wpulatlon was 35%. ailing revenuu necessitate ngw levies to mcet fixed charges on in. vrdlneie debt. and budgets remain unbalanced. Demands upon our various governments ‘do not abate. Care oi the unemployed is costly Yet. J0me sllsht improvement may b, need. Governments have cut down controllable expenditure. rev- enues are and cheaper money has enabled bt conversion into lower rate interest bearing bonds to be made. ‘rhere has been a di- ‘ un-

A Ross H. ueusster moved. 260mm by Mr. W. H. Blackadcr. ur Browning and Mr.

illlflllllilOll-Sly- THE PRESIDENTS ADDBIBS Sir Charles Gordon, President.

I, ' _ the share- “ said

nomy has tberab elected. The entity at each

Y 0789-0111. however. remains with dual

in part: Gentlemen-

You have beiore you the report oi vour Directors ior the year end- plfoctobcr 31st, as wall as the statement 0i proilts in that period, together with the statement oi “sets and liabilities, all oi which I lrust you will find satisiactory hav- mg m view the exceptional condi- HOILS which have prevailed.

The year has been a diiiicult one, but in the later rmnths business in zrncral has shown evidences oi a rrtilrn to more normal conditions, and 1 am glad to say that this has been reilected in the ailairs oi your Bank.

During the year your Board oi Directors have supervised the Banks alialrs with the greatest oi care, and I have no hesitation in assuring you that in our inion the provision made ior ba and doubtiul debts is ample to cover all losses ior which the strictest pru- dvnce would make allowance.

THE ECONOMIC SITUATION

oi. may hope tionfil be firml pressed in its ex- tremest limit in {he inicrest oi the

taxpayers. In conslderi the problem oi our railways we bear contin- that they are the le employer oi labour in Canada, t many allied trades flourish when our railways ilour- lsh. and that. thcreion, ii only ior seliish reasons. aaclLoi us should consider this his individual problem and assist to the extent that he can in its solution.

IOREIGN TRADE

in respect to Canada's trade. significant is the iact every month since

have been

{K531i

linking the ‘year strange and startling events have occurred in lhn ilcld oi finance and economics, particularly in the United States. Beginning with a run on banks in the state oi’ Michigan whichvneces- sitated the closing oi these institu- tions. the panic rapidly became country-wide, causing in the month ol March the unprecedented and until then unbelievable situation oi every batrlik in thedlUnited States iemporar y suspen n payment. To this alarming con ition, com- bined with severe trade depression and large ployment, may be attributed the measures oi the Con- gress and the drastic plans ior re- construction launched by President Roosevelt. d recently in process oi rxecutio . ho United States wrnt on the gold standard at a time when the country held up- wards oi 04.000.000.01!) oi the metal.- and repudiated contractual obliga- tions oi bonds issued in terms oi gold. A deliberate policy designed to depreciate the vaue oi the Am- Irlcllll dollar has been pursued to the point or depreciation in terms cl gold oi nearly 40%, in expecta- g t commodi pr would me in the domestic market in close Bwportim to tho drop in the dol- r, an expectation not yet realised. Other measures wide in scope, involving an immense expenditure 0f public . have been taken m revive business and put men back w Work. amongnthem bonusing oi mm products compensation ior

898.400.4110, whcnas i months ending with Oldtober oi this

year exports needed lrn b $125,700,000. This reversm thz 0U000 in

trade balance oi $224, , three years has been oi incalculable w °""‘li. ii. "was: and the relative stability oi it; (my- N110)’- The swing oi trade to lim- Pll’! Wlalfilel. aedmgvement ehcour- aged an oeter y the compacts made at the Imperial Economic Conference in Ottawg lgt ypg’ h" been marked. The percentage or Canada's trade with British coun- tries in the fiscal year 1930 was 34% oi the whole, while in 1083 it was 46.0%. The tarlii concessions now beingngivcn by Great Britain to a num r oi 1m rtant Canad- ian primary produ have proved oi definit, benefit, as has also the rise in sterling. Lastly. in this con. nection may be mentioned the iac that in the seven months to 0e-

Turning to the field oi trade and industry. it is not a matter oi 0P1"- ion but oi statistics; iactuihfit during the past year PRO 0! 7 every country oi importance there has been a revival oi business-in some countries a remarkable re- vival. Canada has shared in that revival. trade. both internal and external, havlrg progressively im-

raved since bruary. when the ow point in recent years was reach- ed. Completc returns ior seven consecutiv montlu since that time are availa 1e, and they show that

seven months have been months oi’ recovery. As indicating the extent oi this recover! I cw- not do better than reie; to figurga m the 2'..'i‘°3..7l'.§f...“‘s§'.f§..i“.. stuns. e-wwe» we we! u these being the latut available. show in seven months a Iain in business oi 35.5% and a Bllll l" manuiacturin oi 65.2%. us situation has de- veloped in our western provinces. owing to the iact that hundreds 0i millions oi dollars have been spent on railways, branch lines and other means oi t tion. also up!!! elevators ior the handling oi the western grain oropl. these expfll- ditures all being m the as- sumption that the iull surplus oi the crop oi wheat W001i! IIWIYI b0 adfl table abroad at a iair

Strange to say,

although some oi the mos iar-seeing men in the United tates have pointed out that there must be a resumption oi rradc with other countries ii proa- Wrlty is to be restored to the ilultcd States, this seems to have hivrn entirely lost sight oi. Al- ihvush it was ex th United states would countries at the find 1-“ onomlc Coni luss the stabilisation 0! and the modification oi tarifl considered by President Rooscirclt that any discussions along these lines would interfere with his

financing ma

P011 part and not lacking in courage. an or the W!‘ can, however. wish it succes- iul iruition because prosperity in Zirlklffi ‘We...’ “u? vc a country as e United states must radiate to Can- l aria and could not iail in be help- liul lo the world at 1 . Ilean- ‘While, it may be said tha many oi ‘W’ problems which are now con- "ilm-"il States. such as lllnemployment rcliei. old age pan- illms. low thine who other

Bfllllll llld mifllfi mum in a Illllfltla“ u ‘ Y" Europe‘ tlfiitt tion has been‘ ‘ rapid suc-

ENCOURAGING SIGNS lnwbatlhavesaidlwouldnot

l rcndered

‘lfszsion oi events. diam: Oflilfihyfibfllfi termina

5 ri

regent 5

ll testimony to the Bank's long-estab-

_ pared

g recove

t 102i! levcls than

haveyouthlnklhavestruckade- on

’°“”°"“‘."ii‘u ‘renewed

611858.

Current Loans in Canada (in- cluding advances to Municipalities) total "ODQOOOMW. a decrease oi 040M130. Under this Yielding advances w pmducers o! primary products, to manuiriicturfirs and to cus n a

oi commerce. and the reduction rc- ilects Khg lessened requirements oi bin-rowers in these clams.

u‘ as we have an excess

present . __

Current loans elsewhere Illic- ste 01lfli0.000, a decrease oi 000.000.

Bank Premises are shown at tgiflfllfl. the same figure as in

In valuing our assets ample res- gum. t ervations have been made ior eon- Wm, Auiiwgn ‘Exfivfmm ' cles. bad and doubtiul debts 15457‘ mcludm‘ H

depreciation oi securities. '

Capital and Rest remain un- changed at 806000.000 and $38,000,- Owrulkctively.

Deposils total $634,700,000, a de- crease oi 81.000000. Notice Deposits are down t15,003.000 and Demand Deposits 82,000,000. Dominion and Provincial Government balances are ‘“’n'.i"l°°'£.'°°°' ie Sa in De

nrestra on vgs -a,-@m e posits was reduced irom 3% to hi“.- iofiqificfj 236% as irom 1st May last by all the Banks.

twelve months. IMMIGRATION

which included Canadians.

butc ovrr the and funds are ""11 Private sources to asls distribution. It is

' iarms land suitable ior mixed

We have over one million deposit accounts in Canada. which bears suppgytinl

lished policy oi maintaining a CENTRAL BANQ

strong position and to the quality oi the service rendered. The reduc- tion in total Notice Deposits is evi- dence that many are obliged to draw on their savings, which have proved a boon to them 1n these times oi reduced income.

Advances under the Finance Act. 89.001000 re resent our share oi the 035,000, special borrowing by all the Banks in November, I082.

Balances due to Banks are 06,- NODOO. a decrease oi 00.400000.

Profits are shown at 04.005000. as Wmlllfed With $4,663,000 last Year, a decrease oi 8656.000. The balance carried iorward is $1,505,000, an in- crease oi 8340.000.

CONDITIONS IN CANADA.

Whcn we met twelve months ago we looked back upon a year about which the best that could be said was that it was past; than was little to encourage hope ior the year which is now under review. riot- withstanding the apprenhensive outlook, it can now be said that im- provement has taken place. It would be a greater satisiaction w be able to say that it was shared in by all alike. Uniortunatcly this is not the case, but 1i conditions else- where do not interiere, we may look iorward to more general improve- ment. Canada, whose foreign trade is the firth largest In the world, Illnllvt be expected to return to Dlilwiirity until world trade is rc- sumcd on nomial lines. Every coun- try appears to be striving ior an excess oi exports over irn rts, but this will remain a matmmatical impossibility. Meanwhile the great. wt creditor nation in the world will not accept payment oi debts owing hcr. in the only iorm that "l?! 0m be paid. namely, in goods or services, and her money market 1s practically closed to outside bor- mrrel? h t r

w ea crop or all Canada is estimated by the Bureau oi Statis- tics at 271.821.4100 bushels. as com-

with 425.514, ‘- r ' 135i, 1001'. It has been a disappointing year in agriculture, and until the debt-paying and purchasln power ~oi iarmers ls restored omesiic fill-limes generally cannot regain normal activit .

Commodity rlccs. whiclbdeclincc rv I 32 and the first two months oi 1933, showed "m! N00"??? in March and this l‘? ed to July. since when there has been a minor re. cesslon .

Manuiactured goods Oficiélslcrilr midsummer‘ - l0 l’ ave rrmai r

mm"!!! the epaessiorthecloeernto V

prices oi raw maicI-iis, ‘vane Prim o! (arm products sank to a

critically low level at the end oi

1032, showed ‘substantial improve-

ment in 1035, but have receded

s. rear...“ rom- . s were .

hali oi the 1026 lc l. m, one

oi tho Bank Act.

time. Canada have

listened to the representati any and all who wished to before them, including the

Cvmpriscd the Commiss iormcd their task with ti;

their report contains a

CIICB.

cd a world-wi

The banks in by 40,271 “areholders, had entrusted to them th vested iunds oi over depositors. It is not

institutions themselves

they are national in sco a spirit oi co-operation will, whatever decision

TAXATION.

to the need ior economy 1n l y less trators who growth oi the tax burden

in c reduction

are to be maintained.

“pp”: to which have come to be

aiiord to iore do clilde

their own, are temporarily

DIXIE

been said that is not to members oi gove

owed improve- ‘ last, but have

i This is a welcome it is hofid that Canada's d valuable mar-

still the important d t ing that the same can: in the

0X

Palm's exercise sonal expenditures. UNITED STATES One oi the es

the It!“ ior without

some ieel

(i what u desired. Qlllllflilfl llld It the

trade within the Brit-

p- . °' F"

»l'llg_tll previous "m, our trade

prudent

$10 . an; stale flag! _ , um-escaumifi _I\- '

IN

to the point it has now reached. which Ls adm ttcdly the limit oi endurance, and some cases beyond it. can mean one thing only, and that is drasti in ordinary and BPcclal expenditures. Budgets must be balanced ii credit and solvency

K5211

. phys equipment over the needs oi our

ities oi $47,063,000. This com with 2,427 ialluru. with liabfiities oi $49,684,000, during the previous

months ending atlotn was Cranadians. compared withna total Enfixfixm o 22,030 the previous twelve months . m“, rammed ment is steadily/ml?! f: l"? Great ,Britain has a lessened b7 w“ ' n “ p” large silrplus population to distrl- year" M m‘ ‘m’ oi living has increatf: ILIUQ- Pig! » 1 eemmod s avmg - prom!“ rmfugual: 2n {$5551. only during the year- Money has been superabundant l

Canada is not attracting her share l“ Eharwlggas wand".- n"... $- y The Dank oi England rate has held at 2% and the call

\] I money rate, which has hi8? aosr llo: 32's: gg:','"",‘,,,,',";,,;‘,.';f. ,,.,,,,,;,,..,| now abou .. m -

Empire " annually

apparent that

oi agricultural iamilies, though we more people and and irce wh ith h l r 1 vifimmng’ '1 '4 ere w ep u super on the ' ‘m. risbr. zype would soon become seli- g’;nt'x‘g“‘gisurylmbuu'“e h“ num“ ated between l.’ oi 1% and the pnsew; 1%_ sflqggk scalar!- a pound for carlots or less. A ltles genera an r i1 . _- ,_. . _ industrial: and home nus in pnr- """ '°"- ‘ ‘°"' °' '3 ""‘ ' m“ which was due in t'cu1ar have appreciated consider- 1933. will come beiore the next ses- sion oi Parliament. In the mean-

Tlie postponed decennial revision

300K100 and Currency in healthy conditlfl . been overhauled b

Royal Commission which vislyt

"QTY province oi the Dominion

Our banking s stem has weather- storm unprece- dented in history, and it remains ia to be seen whether or not it is to men be allowed to continue to scrvc the "@008 0|’ "18 volmtry as in the past. the dollar is Canada are and -have cxpa-tcra although they hoped that Qtm

ued low prices oi raw mat; tendon , iour million erials may remain an oiiset ltains- aiiicers oi the B unlikely that uniavc the views oi depositmg and ghgyg- tug; holders as ‘to the need ior drastic ' changes in our system will be tak- cn into consideration. So iar as the 001l-

eunin-

lGovemmental bodies. oi whcih we have in Canada besides the Federal and nine Provincial. over iour thousand Municipal, do not all welcome advice irom taxpayers as spend- scem to

This will involve the dlscontih. uance oi many outlays ior services looked as necessities, but which we cannot Ply ior and must there- without. These do not in- iniellisem. and well admin- istered expenditures ior reliei oi t the many who. through no iault oi