r

“pressed

bers’ bills.

Premier Lesage (left), seems deep in thought as he and Prime Minister Pearson meet the press following Sunday's

Reaction Generally Favorable To Gov't Bank Act Proposais

Bennett. had said he would take

By THE CANADIAN PRESS Satisfaction the fs apparently moving toward recommendations of the Porter: royal commission on banking bas been expresstd in Toronto after the introduction of the long-awaited revesions of the Bank Act in Parliament.

At-the same.time, bankers ex- surprise and —disap- pointment Finance Minister Gordon decided to retain the present six - per - cent interest” ceiling on bank loans.

S. T. Paton, president of the Canadian Bankers’ Association and ‘general manager of the Toronto-Dominion Bank, criti- cized what he called the gov- ernment’s ‘‘stand-pat attitude” on this matter. ¢

“It is difficult to understand in the light of the strong rec- ommendations of the royal com- mission on banking and fi- nance,” he said.

The commission, which ta- bled its report a year ago, had recommended that the ceiling: be lifted even if its other sug- gestions were not accepted. ALLOWED TO ENTER

Of the proposal to allow char. |

tered banks to enter the mort- gage - lending field gradually, Mr. Paton said it would allevi- ate banks’ problems somewhat and so was welcomed.

“But it does not solve the ma- jor problems arising from the six-per-cent ceiling on ordinary bank loans,”’ he. added.

“The reduction in the cash re- serve requirements from eight per cent to seven per cent is @ step in the right direction, but I feel the variable reserve ratio for time deposits proposed by the royal commission is prefer- able.”

Sinclair M. Stevens, president of British International Finance (Canada) Ltd., said on first glance the proposed changes in the Bank Act generally look fa- vorable.

“T am specifically pleased the government intends to imple- ment the Porter report. They’ve not erything the com- mission recommended. but they are moving in<that direction.” PRAISE GIVEN

Mr. Stevens, a leading figure in a move to get a charter for the proposed Bank of Western Canada, gave most of his praise to the proposal that would make it easier to form new banks.

Mr. Gordon. said authority will be sought to issue charters

to acceptable would - be ‘new.

banks bv letters patent; appar- ently in the same way that most commercial enterprises now are incorporated under the Compa- nies Act.

These charters, however, would be subject to upset by Parliament. Only Parliament now can grant charters for new banks.

In addition to the Western Bank, charters are being sought by the Laurentide Bank and the Bank of British Columbia. But they have been delayed in Par- liamentary debate

“This is a very progressive step,” Mr. Stevens said ‘We are extremely pleased. The ef- fect will be to reverse the onus.

“At present, a minority can block us very effectively by talking us out in the one hour a week given to private mem- The change will make it necessary’ once a bank Obtains its charter, for a ma- jority vote to be taken to annul the charter.” ~ THOMPSON APPROVES

In Ottawa, Social Credit Leader Thompson said he ap- proves Finance Minister Gor- don’s vroposal to’ remove from Parliament the authority for in- corvorating new banks.

Mr. Thompson said in the Commons duri discussion of fevisions to the Bank Act that with regulations existing for starting new banks it should be unnecessary to hy Parlia- ment approve each one.

Mr. Thompson also said bank- ing should be under federal con-

government '

talks between the two govern- ment leaders in Montreal. They hinted that some sort of

trol but the legislation should

not be so rigid that it would after provincial bank. In Montreal, G. Arnold Hart,

prevent establishment of near- banks or provinces acting within the framework of federal legislation.

Mr. Gordon said to make it “easier” for applicants to get a bank charter one amendment to the act would permit banks tobe incorporated by — letters patent, with the House of Com- mons having the right to annul such letters within a stated pe-—

riod of - time. ~

The amendment could affect proposals for the Laurentide Bank of Canada and the Bank of Western Canada which have been tied up in the Commons iby MPs who object to the Sen- ate’s' rejection of Premier Ben- nett’s proposal for a provin- cially-batked Bank of British Columbia.

BUYING PROHIBITED

The Bank Act revisions also propose to prohibit provinces from buying shares in char- tered banks, a step that Mr

QUEBEC TREATY-MAKING DISCUSSED agreement had been reached ‘decision to retain the six-per- Gustercnhiiag claims.

ere

FOSHHMOHSHOHOOOOOOOOOO OOS

2

By KEN ‘SMITH, Canadian Press Business Editer

Canada Development Corp. is shaping up as one of the major business reactions to Fi Minister Gordon's new budget.

Many executives. however. are holding off comment until | | Mr Gordon reveals more de- tails of his proposed $1,000,000,- | 00 baby

The objections are built) around two basic points—first, fears that the corporation would lspread itself through all seg-{ ‘ments. of the economy, with political and not economic rea- sons being, a dominant factor | in its decisions and, secondly, it would make it tougher for private enterorises to raise cap- ,ital on the Canadian market.

In his b +¢et address Mor’av night, the finance minister did little more than outline his thinking on the project.

Ninety per cent- of the cor- ~poration's—s-h-a-r-e-s would-be available to the public or pri- | vate institutions, with the fed-

oe Oe Charlottetown, Mon., May 10, 1965.

~ Opposition Reported Shaping. To Canada Development Corp.

eral government holding on!s

per ‘cent. Initial price of i

Opposition to the , proposed |shares would be $5 each

| Its capital would be used to buy shares in enterprises just starting up or looking for money to expand its operations MANY OPPONENTS Summing up \iews expressed by many opponents of the pro- |posal was a comment from Sin- jcelair M. Stevens, president of |York Trust and Savings Co., who said the CDC*‘could be- come a monster at some time.” + Im a more cautious vein.” the Canadian Chamber of Com

|merce said it needs close exam-

ination and added:

“While the objective of en couraging investment by Cana- dians in their own enterprises is decirable, there is some ques- tion that such a structure may encourage too much investment control by the government.”

On the tax aspects of his budget; Mr. Gordon: was roundly —criticized—by—- business for not reducing corporation taxes or removing the contro-

ichairman and president of the |Bank of Montreal, expressed “surprise and amazement” about the federal government’s

cent ceiling on bank-loan inter- est rates.

Mr. Hart, in a statement, re- stricted himself to commenting on the ceiling retention.

“My i

their talks on Quebec's (CP Wirephote)

in such strong terms by the royal commission on

and finance for the removal the six-per-cent ceiling on loan rates has been disregarded

in the | amendments to the Bank Act‘ now proposed,” said the

bank of Montreal chief. .the Senate rejected his “4

Sree of flexibility in the inter est-rate structure.””

_ ST. DUNSTAN’S UNIVERSITY |

_ [SUMMER SCHOOL

Opening date changed to July 2

Closing date now August 12

Classes will be held on opening day.

_’ Additional half-credit course— Sociology la.

HHS HO OOOO OOOO 040660000 ©

ae

(sgd.) W. J. MacDonald Lieutenant-Governor

useful lives; and

rehabili preven

aside as

unto affixed.

of Our Reign.

5

(GREAT SEAL),

versia] ll-per-cent sales tax on production machinery

Winning praise was the 10- per-cent cut in personal income taxes with its expected

boost ;

. (Sa

on the! sale and trensmis tronic chassis for Ciairtone tus- | new have been com sion of power from the 9,000,-| ers, amplifiers and record : pleted and construction wil 000-horsepowersite had proved ers will start coming off the as- start June 1. It is to be com-

fruitless.

Brinco chairman, said a recent May 15 meeting with Premier Lesage had been Said the company various cost factors to be pre- cided to move its operations to | sented to. Quebec.

eral ees by Jan. 1, 1966. Scotia. He said an announcement will be made soon concerning de- tails as to the design, location and contractors for the new plant.

Clairtene last year earned $109,619 or 19 cents a share

. sembly line of the corpora The next day Robert Winters, interim plant in Nova

This plant was leased from “constructive” and|Nova Scotia’s Industrial Es- is analysing |tates Ltd. after Clairtone de-

‘Neva Scotia, pending the con-

would be aimed at the Shermans iron mine in Northern Ontario and the Wabush mine in Labra- | dor

To help finance the expan- | -ior.. Dofasco will issue $50,- 000,000 worth of preferred | shares

Steel Co. of Canada—already | in the middle of a $200,000,000 ' expansion program — ab-| nounced lower first - q ~earnings, duction and sales. President V. ,W. Scully blamed the drop to/| ” $8,154,000 from $8,907,000 on sharply increased costs. BLAME WEATHER

Another industrial -giant also |

came in with lower first-quar- | ditiomally

ter earnings. MacMillan; Bloe- de! and Powel! River Ltd.. said earnings declined to $9\678,000 from $10,981,000 and blamed it on the severe winter weather.

Chairman’ J. V. Clyne newsprint sales were higher, | following the cut of $10 a ton | inethe price. - -

The on-again;- off-again de velopment of Labrador’s Chuf- chill Falls went through an- other gyration. Premier Jean Lesage of Quebec said talks with British _ Newfoundland

for consumer spending, al- many critics said it wasn’t enough of a reduction. PLAN EXPANSION Elsewhere on the business scene, Dominion Foundries and Steel Ltd.- joined the heavy. ex: pansion programs already re- ported by other steel firms, an- nouncing plans to spend ‘$120;- 000,000 on plant and mining de- velopments by the end of 1966. About 75 per cent of the new expenditure would go in addi- tions and improvments at its

100-Gallons

of hot water per hour at lowest possible cost.

FOR. ONLY A... FEW... PEN- NIES A DAY BUY AN ESSO | WATER HEATER.

Palmer Electric Ltd.

96 Fitzroy St.

months of this year,

the similar 1964 periof~ despite record PFO dent Peter Munk told

| $2,373,218 compared with $1.

compared with $300.660 or 32

|Struction of a new factory. cents ayShare in 1963. 's

Mr. Munk said plans for the

Clairtone Sound | Changes Loss To Small Profit

TORO? (CP) Cc Sound Corp. Ltd., had a net fit of $21,839 in the’ fi

CLL LLL PE AA A A

EXCAVATING ... °

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fe

$139,248

a

with a net loss of

i

the | nual meeting here. Hé reported that sales rose

s §

| 450,780 in 1964.

He told shareholders that tr Clairtone has taken large- losses in the first half of the year because of the sea- sonal nature of its business. The strong first - quarter showing

@ TRENCHING . @ BACKFILLING DIAL 4-6423

Machine Operate KEITH CARMICHAEL

i

AME OE AE OF ME LEE LE ME ME LE MEME

should _ substantially improve said earnings this year. an MacLean Brackley Pt. Rd- ‘ Ch'town . He also said the first elec- ' MPL SI LID AP LIS SBS MI EB

Sia ~ ANNUAL MEETINGS ~

of the following

ARTIFICIAL BREEDING CLUBS

PLACE” DATE East Kings ——_ Legion Hal ,!Souris . May 10th 8:00 Speaker: HAROLD HEARTZ wae York Winsloe Station Hall May 11th 7:30 ican Clluashka Moyles 606 Film Reid Sangster . on Crapaud Englewood High Schol May 13th 8:00

REID SANGSTER é

DIAL 4-8543

steel - producing facilities in Hamilton, while the balance

.

CANADA 4

PROVINCE OF PRINCE EDWARD ISLAND

ELIZABETH THE SECOND, by the Grace of God. of the United Kingdom, Canada and Her other Realms and Territories QUEEN, Head of the es Defender of the ait ”

GREETING

A PROCLAMATION

WHEREAS The Canadian Association for Retarded Children was founded in 1958 to promote the of all ages everywhere; and

general welfare of the —, retarded

WHEREAS more than half a million children and adults in Canada are mentally retarded; and a

©

WHEREAS retarded children can be educated and trained in special facilities geared to their needs and given. an opportunity to lead happy,

WHEREAS a vital need exists for intensive research to uncover the causes and preventive measures in mental retardation; and

WHEREAS during the period from May 9th to May 16th, funds will be sought for these programs and facilities by the Provincial Retard- ed Childrens Association of the Province of Prince Edward Island of the Canadian Association for Retarded Children: and

WHEREAS the success of this appeal will substantially benefit the health and strength of the nation by making possible better education and rvice and expanded and accelerated research toward the mental retardation:

NOW THEREFORE We. with the advice and consent of Our Execu- tive Council for Prince Edward Island, do by this Our Proclamation order and declare that the period from the ninth to the-sixteenth day of my in the year of Our Lord one thousand nine hundred and sixty-five be set

CANADIAN RETARDED CHILDREN’S WEEK

and urge that all citizens of Prince Edward Island consider the matter of retarded children “as a year-round project.

IN TESTIMONY WHEREOF WE have caused these our Letters to be made Patent and the Great Seal of Prince Edward Island to be here-

7 s*

ty

WITNESS the Honourable Willibald Joseph MacDonald, Our Lieu- tenant-Governor of Our Province of Prince Edward Island, at Our Govern- ment House in Charlottetown this fourth day of May in the year of Our Lord one thousand nine hundred and sixty-five in the fourteenth year

ty Command,

Wendall MacKay, Deputy Provincial Secretary. ae

vec haiane & a ee Wil os ec

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