l in ql BANK OF M

\ i Annual General Meeting December, 1929

ONTREAL

Held 2nd

The 112th Annual General Meetl Montreal was held in the Board HD0111 Among those present were:

ng of the Shareholders of the Bank o1

at the Bank's Headquarters.

A, D. Anderson, G. E. Armstrong, M, 1),, The mm Th“ Ahennl P" C.

41G, Adam, R. H. Arkell, D Forbes ggylis, u. A. Bullion. _E. w. Beatty.

Ansus, W J. Ambrose. A. Bissett, S, M,

K. C.. J. W. Benningfw. A,

Black. W. D.. Blackader. W. A. Bog, Arthur Browning, w, w_ Bfux. Qeorge

n, Caverhlll, '1‘. Carllsle, Ross Clarkson, Hon. Henry Cockshutt. S. M. Connolly, D.

D- R~ Clarke. W. s. Clouston, ma E. Crutchclow, General Bh- Arthur

gurrie, G. C. M. G., K. C. B., A. 0. Dawson, J H. David. K. G., Jackson Dodds,

H. R. Drummond. P. DuMoulln. G. B. Elwin. Clair-all The Hon. G. G. Foster, K. 0.. A. B. Foster. H w, pooh;

B Fraser, J, Garrow, G. H. Greening, Gardner. Samuel Hart, Wm. Hanson, Ja

Fisher. W.C. Finley,

GeorgeR. Foster, G. Sir Charles Gordon, G. B. E., B, o, 5- E- Hflydon. E.- Haberer, P. C. Harr1-'

so“, C. A. K048151111. C. A.. Jas. Hutchison, C. A., G. B. Howard, E. P_ Hunggy-

“m, A. J. L. Haskell, 0. E. l-lurd, R. P. Kcnnedyl. M. Kllbourn, R. E. Knight oiphe Lemleux. K. G., C. W. Lindsay, F.

g, B. Ioucks, W. McDonnell, H. B. Mackenzie,

Jellett, L, Julien, J. S. Jones, Harold

. G- 1191115011. G. I1‘. Lalng, Hon. Rod-

X. Leduc. H. R. Little. S, B, Lindsay,

E. S, J. Martin, J. W. Mo.

cnnnell. F. E. Meredith. K. C.. T. E. Merrett, Mat-Gen The Hon. S. C. Mew.

burmC. M. G., W. R. Miller. Lieut.-Col.

Herbert Moison, C. M. G., M, c, w,

L Muygoy, D, G. Munn, G. H. Napier, A. E. Nash, Ryland H. New, Majol- s. C. Noteworthy. D. S. 0.. M. 0., W. '1‘. Oliver. L. H. Pinsolinault, C. J. Patton.’

M. D.. Edward Pope. H. E. Rayliilgs, B. neth Rea, James Rodger. O. R. Sharp,

Panel Raymond, J. R. Pudncy, Ken. W. A. Shields, 0, i-i, ‘sharps, J, w,

Spflffl» G. W. Spinney, E. H. Stewart. Arthur Terroux, W. Wfllhompson, W,

N_ “my, K, G., J. S. Watt, E. P. Winslow,

0n motion oi Mr. H. R. Drummond, quested to take the chair.

T- H- Wlmlow. R. s. White. Sir Charles Gordon, G. B. B., was re-

Maior-General The Hon. S. C. Mcwburn. C. M. G., moved, seconded by

Mr. W. B. Biackader, that Ml‘. W. R.

Mfller and Mi". Arthur Browning be

appointed to act as scrutineers, and that Mr. C. H. Cronyla be the secretary o1 the meeting. This was carried "unanimously. THE ERESIDENTS ADDRESS

Before moving the adoption oi the report. it is customary for the Presi- dent to make a few remarks .

since the last Annual Meeting we, have had to mourn the death oi Sir vinoent Meredith, Baronet. His life time may be said to have been spent in the service of thc Bankin which he rose to thc highest posi- tion, and, as its President for ten years guided its aflaivs ‘with great ability and signal success. Two other g1 your directors also passed on dur- m; the year. The Honorable Sh" Lomer Couin and Mr. Frederick w. Moison, who had brought to thc da- Lberations of the Board wide expel"- lento and ripe Judgment. The vac- ancies thus created were filled by‘ mo appointment of Mr, A. O. Daw- son, Mr. W. N. Tilley, K. 0., and Sir Frederick Williams-Taylor. - I am sure you will agree that tllc Bank is fortunate in having secured the services of the ilrsttwo named oi these gentlemen to assist in the dl-i rection of the Baillrs affairs, and now having as a member of our, Board, Sir Frederick. who for mailyl years so ably filled the position oi General Manager.

STATEMENT PROFITS

You have before you the report of your Directors for the year recently ended, as‘ well as a statement of profits in that period, and of assets and liabilities. which I trust will be deemed satisfactory.

Of the increase * ill the capital stock of the Bank authorized at the last Annual Meeting. 60 831i SllftFCh‘ were issued and have been readily token up by shareholders at a pre- mium of 100 pcr cent. that figures being made the maximum by lhc Bank Act. The paid-up capital now stands at $36,000,000, and "the ltcst account at $2,000,000 in c: rs cl that figure. It iilay be worth while again pointing out that thc largci earnings of the Bank are really nlocl-l crate in relation to the capital cin-i ployed. and that tho dividend rate made possible by accumulation of llil~| distributed profits of past yours. 1111i‘ back into the business nnd upoil which no dividends are paid. A 111129 Rest or Reserve account augments resources and strengthens the capital structure.

M QL%='-...‘__""¢ event in tile nl- falvs of the Bank was thc 1'(‘l'l1- quislnnent by Sir Frederick \‘lii- hams-Taylor in October oi the oi- fice oi General Manager alter a long term o! able. asslduous and fruitful service. He has bcconic 11 member 0f the Board, ill which ca- paclly his profound knowledge of banking and intimate ucqnalnlfllwfi with finance and commerce will continue to be available to thc Bank. Your Directors dccm thcm- selves fortunate .in having had on the staff a gentleman of the ntinln- merits and experience of Mr. ll. B- tlackenzie to succeed Sir Frederick

He was General Manager of the Bank of British North America when that institution was absorbed by the Bank of Montreal. and since Joining our staff has occupied positions of trust. in the discharge of the duties oi’ which he has exhibited qualities oi s. high order. YISYI‘ T0 BRANCHES

During the year I have visited practically all the principal branches of the Bank. not only in'Cahada but in the Unitcd States, Englandand France, for the purpose of meeting mlr Managers and acquiring first- hand knowledge of local conditions. I can assure you that wherever I went I found the Bank in high re- pute. and it was peculiarly gratify- ing to observe the standard oi’ our Managers and the loyalty, devotion and efficiency of the stall. a

In October, four of your Directors visited Mexico for thc purpose of acquainting themselves with condi- lions there. 'I‘hey report the situ- ation more stabilized, better. and that tllcy have found the business oi‘ the Bank in a very satis- factory condition.

In reviewing the commercial alt-

uation in Canada. it should be kept

in mind that there have been five years of almost uninterrupted ex- pansion. In that brief period Can- ada has achieved a degree of devel- opulent quite unprecedented. Not in one or two directions. but practi- cally in all, remarkable material progress has occurred - in agricul- tllrc,.in many lilies of manufactur- ing. ill milling. forestry. water power production and bulld- ing construction.

During the carly part oi the past year. business. generally in llcavly all lilies remained active and lhcre was no serious check rlilring lhc first tcn months. Pos-

sibly the greatest advance in any During the summer I had an opportunity Ol

direction was in mining.

visiting. together with other Direc-

tors. four oi the great plants of the country, namely, the British Empire Steel at Sydney. InternatlonalNickel nt Sudbury. Algoma Steel at the

Foo. and the Consolidated Mining 1S: gmoiinr; Company at Trail. must visit these enormous develop-

mculs to realize what they mean to thc districts in which they lire situ-

alcd. to transportation interests, and

to subsidiary interests all over the

country. Other ilallies which are ltcroilllllg almost are Noranda. Fiin Flori and Sherritt

Gordon. and they in turn will mean

nlucil to the localities in which they

are located, because they B19 110$ only great mining vcntures,.bvit i110- poso to cstablhh concentrators and rcflncrlcs.

Sn far as the banks are concerned. nnolhcr favorable feature of the situ- ation was the unprecedentedly high rate for money in New York. the rate

have the ti life tryinfl out. Ask

The flavor of H. &N. Black Twist is cured in~y°u n

enjoy yourself.

IIICIEY ulcllfllw" ‘rllblul lwlsl

me of your to chew it for it nnd

"CHEWING

‘.-

the outlook

trading.

speaking,

One

household words

\

_--_

running as high as 10 to 15'.» ior loci periods. No special ldlillllllu was taken of this by Canadian banks. astlie business of the country was so active that their money was fully em- ployed m Canada, and, with the ex- ception of the regular reserves held in New York, Canadian banking funds did- not flow that way and every legitimate need of this country was taken care ‘of at much lower rates than prevailed in the United States.

Favorable‘ is the fact that there is not inflation lllllarentln any oi thc great basic ommodlties such as \ wheat. sugar, cotton, steel an other raw materials. so that we h d not to" witness a slump in these prices as we 8s in the shock market.

e unfavorable features’ of the situation‘ have been: first, the sfnall crop oi the Prairie Provinces and the slow movement oi the graul towards the seaboard. This has ‘ai- iected United States exchange, which at times has ranged around 2% pre- mium. It has also affected the carn- inga of the railroads and steamship companies, and has caused some check to business generally. ' The second unfavorable aspect of the situation ‘was the crash in the stock markets. The call rate and other danger signals were out, but, with world-wide speculation rampant, these signals were not observed by many people until the situation got so top- heavy that a-crash was inevitable. Fbrtullately; only a small proportion of the people are in the stock market and so the losses will be confined to. comparativelyfew. At the same time what has occurred is bound to have its effect on the purchasing power oi the country as a whoio, '

For the first time in five years. grain crops were a partial failure in the Prairie Provinces, the yield of wheat - 270,000,000 bushels - being one-half that of 1928, and that of other cereals correspondingly smaller. The harvest was gathered rapidly in propitious weather and the quality oi the wheat has graded exception- ally high.

Discouragement has not, however. deminlited farmers of the Northwest. They were fortified against the short crop by four favorable seasons. The reduction in their incomes this year ia not to be measure-.- by the de- crease irr quantity oi grain; prices have been higher as well as the grades. Yet a reduced yield of about 270,000,000 bushels of wheat cannot be lightly regarded, for while thc profit to many individuals may be satisfactory, purchasing power in the aggregate will be curtailed.

‘Turning from the Prairie Prov- inces, it may be said that in the rc- mainder oi‘ Canada the harvest was irregular and somewhat below a. good average. thoughllighly satisfactory Over large areas.

Branch line railway construction has been considerable in the North- west during the year. Now country is being opened to settlement. espec- ially to the north, and -it is apparent that what the Great West is to the United States, the western provinces will bc to Canada. Mining has been joined to agriculture and industrial- ization bo both. Manufacturing in the prairies is supplying no incon- siderablc home market. Active oper- ation of the Hudson'Bay Railway is now within sight and. true to its pioneer spirit. the Bank of Montreal was first to establish a branch at Fort Churchill. [In the making oi highways for motor traffic, much labour has found employment, an im- pressiviey large tourist trade has been attracted. and cheaper and speedier transportation afforded com- munitles removed from railways.

- BUILDING CON STURUOPION

Both a cause and a onsequence of the marked trade activity oi’ the last five years has been extensive build- ing construction and the undertaking! oi important engineering works.

Water power development is still going on and finding a ready market for the electric energy created.

Residential, office, warehouse and factory building will this year out- strip all previous record. In the first, ten months oi the year contracts awarded amounted to 3498327500.’ being an increase of 17.6 per cent over the corresponding period of 1928.

In the nine months ending Septem- ber 30til. the period or largest in- flux, the number of immigrant arrivals. 143.947. was 2.435 lcs than in ‘the year before. From Great Brit- ain and the United States, immigra- tion has somewhat grown, the de- crease being in settlers from South- ern Europe. Emigration from Canada to the United States has continued. but it isencouraging to note that it has been in considerably smaller vol- ume.

The external trade oi Canada has suffered iil volume and value from diminished Brain crops and the slow movement of whcat to British and Continental markets. In the seven months to October 31st. the 08810- gotg, 51.467.431.000. was $45,000,000 less than in the corresponding period last year, imports rising 831800.000 and exports falling $83,000,000. This recession is more than accounted for

by a decline of. $133,821.00 in 6X- 1 ports of farm products of all kinds. principally wheat. Stimulation oi

CEIII. of total imports doling, the twelve months-to ' v

from the Uni d Stem. and barely 20 per cent om British" countries. For the first time in many years the balance or trade has turned against

domestic exports by $86,600,000 in the last seven months.

that this condition will be changed. The visit to Canada of Rt. Hon. J. H. Thomas and the activities of other agencies, both at home and abroad. will. it is hoped. be successful in enlarging inter-Empire trade.

PUBLIC BIVEN UEB—TAXATION

The buoyancy of the public revenue! luls reflected the activity of trade. 1n the aeveil uiontha n! the current fllcnl year to October 31st. Dominion rev- enue wua up 111.710.0110 over lalt yell‘. nnd debt down $74,800,000. The reduc- tion ln lnilea and atalup taxes produced n decrease o! $8,000,000 in income from lliese sources, linil it has been inti- ninicd that a further remission of nix- nllun will bl- made at the next session of Parliament. _

IIUHINHSH SITUATION ABROAD

Abroad. the innat notable event of the ,vcar hos been the rgreenient reached by a Pomnilitee of Experts oll repara- tions andlhandopiion of a definite ache- dule of nnnultica. The removal of a state o1’ uncertainty for wvhirh ‘this outlltau lug question ha: long been rcapoua bin allould react to the benefit of world financial nnd economic condi- tions. The creation of an Interdational Bank as recommended by the Conl- inittee appointed to consider ibia alib- Ject ,tn lie located in Belle. Switzer- land, is avvglted with interest and af- fords the hope that its influence will operate toward the establishment and nuilnieniilice of’ a greater degree of credit atnbillty throughout the world.

Aa regards Great Britain oversea! trade relurna for the first ten months of the year lire encouraging. the inost pleasing feature being ll substantial recovery iu coal exports. Meantime, progress is being math». in the country lu tlln direclinu oi.’ adapting Business organization to preaeilt-day needs, nnil there is evidence of n growing spirit of, cit-operation between employers and workers. There atlll remain around a million and a quarter unelnpl yeti‘. and although the Government la pro- moilng relief by means of public util- ity ivnrlls, it in recognized-that ll aub- atantnl rotllivlion in the number of un- ellipioyetl can be secured only along normal linea of economical develop-

ment. .

In the United States, for the greater part of the past year. indus- try pursued a fairly steady course, with many evidences ,oi an expand-

ing prosperlty. The average volume

highest peak- ever attained toward the middle of the present year. Some

long period of activity, be entirely a. natural consequence. The farmer appears to face the pros- pect of at least the same money in- ccmc as‘ he enjoyed last year. Com-

hezllthy condition and the average index for commodity prices has re- mailled more or less stable.

shown a. steady increase.

than in many years. with no evi- dence of congestion or delay. Infla- tion in securities has not been ac- companied by inflation in business. The effect of the perslstenltmount- lng of prices of many stocks to a

most ncglible. was a factor‘ made itself felt in the credit situa- tion, nnd the stock market demand for credit was the most important single factor influencing, money rates during the ycal‘.

severe continuum lgeak in prices in the short space of a fewllweeks. has been witnessed. but it is believed that the period of acute disturbance is now past. IN CONCLUSION

In conclusion. may I say there never was a time in the history of Canada. when business as a. whole has been at a higher peak than dur- ing the year under review.-or when thc developed sources of our wealth ivere mere wide and varied than they are today. and never a time when the eaming power of our peo- ple was sustained in so many chan- nels oi production. We must not al- low a possible temporary reaction. the result 0f R CUllBDEG ii’! 9- P117913! speculative orgy in the stock mar- kets. unduly to distort our view. Fun- damental conditions are sound. and there is no reason for apprehension as to the ultimate iutureoi Canada.

THE GENERAL MANAGER'S ADDRESS Mr. President and Gcntlemen:—-

It is my duty to present the an- mial balance ‘sheet to you. but. b0- iore doing so, may I express to thc progidont my appreciation of the generous terms in which he has been good enough to introduce me to you as General Manager of your Bank. I can assure you that I am deeply sensible of the responsibilities rest- ing uporrlnc. There are great trzvli- tlons to uphold and I follow a 1on8 line of eminent occupants of the of- flee. I feel that I have been specially fortunate in enjoying for the past eleven years the advantage of a close association withmy immediate pre- decessor. Sir Frederick Williams- Taylor. "and '1 wish to pay tribute. not only to‘ his great ability as a banker. but also to the unfailing hu- man kindness which has been so not- able a fqvtue of his administration. There hasjtrown up in the Bank under him- an esprit decorps that assures me ‘the support oi a. most inter-Empire trade is not yet con- loyal and efficient staff. We are hap- splcuous in results, almost 70 per py in the knowledge that Sir Fred-

‘BRINGING UP FATHER

Canada, imports having exceeded

and until .the wheat moves out it is improbable

of production continuously increased from the end of 927. reaching the

decline may be expected after this which will

inodlty inventories seem to be in a

‘rho productivity -of labor has Railroads are operating with greater efficiency

position where the return become al- that

Since the beginning of October the I great/est volume of publicselllng of; securities. accompanied by the most‘

rrlis>cnillgg> ..

erlck in a higher office may now look iorwardto a period-of eompab‘ atlve rest while the Bank will con- tinue to have the benefit of his ripe experience and counsel.

BALANCE SHEET

The balance sheet which I have the honour topreaerit to. you is a highly satisfactory one. It shows a healthy growth in the volume of our business, the strong liquid position it is our practice to maintain. and very good profits.

The following are the principal changes in the ‘balance sheet:-

Our Total Assets now aggregate $965,000,000 against $873,000,000 B. year ago, an increase of $92,000.00‘)-

Capltal and Rest aggregate nearly $74,000,000. an increase over last year of $13,000,000. reflecting the new stock issue and $1,000,000 added to Rest out of profits. Our Rest is now $2,000,000 in excess of ourCapital.

Deposits aggregate $772,000,000. an increase of_ $50,000,000. Dominion Government Balances have increased $32,000,000. Demand Deposits have in- creased 837.000.1100.. and Deposits af- ter Notice have decreased $18,000,000. the last. a reflection principally of withdrawals ior investment in se- curitics. The past year has been ex- ceptional in that. respect. and the Savings Department will probably now resume its normal growth.

Balances due to Banks are $39.- 000,000, an increase of'$27,000.000 for the year. the increase representing principally funds sent to us from Europe to take advantage of the high rates of interest then prevail- ing ior Call Loans in New York. With the fall in the rates these funds are now to some extent being re- called. -

Cash and Bank Balances including Central Gold Reserves), amounting to $148,000,000, have increased by $14,000,000. -

Cash Reserve to Liabilities to the Public are 13.40 per cent as against 14.95 per cent a year ago.

Call Loans aggregating $155,000,000 allow n decrease of $23,000,000 when compared with n year ago. -0ur (‘all bonus in (fanada are practically lilo some; the decrease la mainly in New \'ork and reflects the runlulntlre eilevt of advances larger than uauai lo nua- lomers, Ill Cnumhl against securities. tho increased requirements of expnnding buanesalln vrilisda and the delay iu shipments of grain. Oua own Call Loans in New Icrk. 1.9,, omiltlngntboao offset by apeclui deposits; were aub- alllntliilly less than-in 10.38. llnd we been able to eulploy the same ainouut. of intuit-y there this your during the pt-rlud oi’ high rntr-s our profits would hnve been greatly increased, but we have drawn lrom New York to supply expanding Canadian requirciueula. i may flilll {but the manner Ill which the New York Stork Exchange funcilouril anti llle prnulp ‘a with whit-h brok-