M,” Lydia Tuplin was a recent visitor to Baltic. the guest of Mrs.

Reuben Wall.

and the surroundllll I9- ,ended the wedding in Keir Mem- orial Church at Malpeque, of Bar- hara Joyce McKay, daughter of Mr, and Mrs. Earle McKay. Sea view, and Darrell Murray son of Mr. Frances and the late Mrs. Murray of Grahams Road.

Mr. and Mrs. Dan Taylor, Clint- on, were visitors to Kensington on

Dec. 10th.

on Friday evening Dec. 10th. a large number of neighbors assemb- led at the home of Mr. and Mrs. George Riley. Hamilton. where a card and crckinole party was sponsored by the members of the Baltic Hockey Team. The prize for the ladies high score went to Mrs. Everett Wall, and for the gentleman's high to Mr. Keir Craf- er- Consolation prizes were award- ed to Mrs. Keir Crafer and Mr. Denton l-iogg. Refreshments were served by the hostess and a good sum was realized. a

His many friends will be sorry to learn Mr. Sutherland Cousins, Baltic. is confined to his home with an attack of measles.

Miss Judy Woodside, daughter of Mr. and Mrs. Douglas Woodside, sea View, is confined to her home with measles.

S pathy is extended to the famly of the late Henry Hender- son whose death occurred very suddenly at his home in Margate, on Wednesday.

Her many friends are pleased to welcome Mrs. James Hickey to her home in Darnley after being a patient in the Prince County Hoa- pitsl for several weeks.

Miss Jean Hunter spent the week- end in Baltic, the guest of Mr, and Mrs. William Hunter and family.

Her many friends will be very sorry to learn of the illness of Mn,

Flfderlck Ramsay at Charlotte-'

IDWII.

On Sunday evening a large (:03. gregation gathered at the Prince. town United Church at Malpequu Where the sirls and their leader: M "'0 C- G- 1- '1'-'lroup presented

their National Christmas Vesper-

Service. 'l'he musical part of us. service deserved more than pas. sins comment. The church was VERY 'nrettilY decorated for the occasion. After organ selections by Miss Elizabeth Ramsay. the service opened with the Congreggl. I0" SIDRIIINI "Hark the Herald Ang- 9" 51118. The call to worship WI! Elven by Miss Mary Hunter; 5CI'IDlure readings .by Mrs, Ann. Ramsay and Miss Mae Sllllker. The choir sang "Silent Night" and

Away in a Manger." Responsive Rendins with Mary Hunter as the leader. The story was given by :he leader of the group. Mrs. Den. 01" "088. The Candle-lighting ser- vce followed during which five candies were lit to emphasize first- 1 Jesus as the light of the world-by , M”? Hunter. then the four told Purposes of the Canadian Girls in Training: To cherish Health. Sick Truth, know God and to serve on. x" V"? lit by Misses Mae Silllker,

'”" Rlmlby. Joan and Drona

Csrnithers. After the gm of "An ith oi W” .. mu :4.” adness Men of Old

benediction.

Hunter pronounced the C.V-

Don't be surprised if one of "'9'? ill?! you see a coal Ind :0 by loaded with shining stuff that csstainly doesn't look like coal. one big coal oornpug 50'' way: its anthracite with aluminum paint. Not only makes It cleaner to handle; it burns better, too.

We now. too, that ahsmlmaa Is involved in anottIerfuelopan- lion-this time incspturing Inn from the sun. All ailujn mm. W"-V "RN55 I solar furnace that focuses the surfs rays by n' -ns of I I20-inch gtumhlg ' :ior to create gen” 3 um moo P. ltls uusu;... W 'ieriaIa undeg am". 1

MUMJNU commvop

csnam, 4

i,Wed.. Dec. 14. 1955 Hie Guardian lugs 13

Conjidence in coming year will raise

x

NINETEEN fifty-five has turned out to be a record year with new peak levels presently being established in many segments of our economy. The encouraging feature of the current picture is the recovery from the slow-down in business activity that took place during 1954, and which continued into the early months of 1955. In the late'Spring our export position began to improve and a renewed wave of capital spending served to recreate the atmosphere of confidence so necessary to the maintenance of the growth cycle. For a large part of our population, conditions have never been more favourable. For some, however, the situation is not quite as buoyant as it was a few years ago. Despite the over-all prosperity as reflected in national account- ing aggregates, farm income is down and there is an unemployment problem in a few localities. In point of fact, continuing didiculties in such industries as primary textiles, farm implements and coal mining are contri- buting to the unemployment situation.

MAJOR economic developments during this year have again centred largely on resource development. Iron on production is well ahead of last year with increased shipments from the Steep Rock area and from the Iron Ore Company in Labrador. The first shipments from the Labrador mine began in August 1954 and total shipments to the end of August of this yearhave beenoverfourmilliontonstowardstarget for this year of six million tons, which objective, it is rcportcd,willberaisedtotenmilliontonsnextyear and to twenty million tons when the St. Lawrence Sca- way is opened. Another new iron producer came into production with the first shipment of on from the MarmotaaseainMaycfthisycar.

While the first expansionary phase in the oil industry appears to be over, a steadily increasing rate of produc- tion and a continued indow of investment capital char- acterize the industry today. Intensive exploration is still being carried on in all three prairie provinces. Indica- tive of the rate of development work done by the indus- try, Manitoba is now producing at an annual rate which will supply almost half! of its annual consumption. Naturalgasdiscoverieshavebecnwellupthisycarand with the recent announcement of plans for the construction of the pipeline to carry gas to central Canada, this source of wealth will in the foreseeable future flow into the economy. An early start on the Toronto-Montreal branch (I the pipeline is planned, for completion late next year, when it will, pending ap- proval of the United States Fedenl Power Commission, be fed by gas from the Tennessee Gas 'll-ansmission Company until such time as it is connected with the line from western Canada.

mmm- I

PROSPEROUS conditions in the economy during the past year have contributed to and in part resulted from an cxpansiim in foreign trade. The high level of domes- tic spending and capital investment increased our imports by some 12 per cent in the first nine months of the year, with all areas except the United Kingdom sharing in the increase. Likewise the high level of indus- trial activity in other parts of the world resulted in increasing foreign demand for many (hnadian primary and extractive products. The value of our exports to the United Kingdom and Commonwealth countries increased relatively more than those to the rest of the world, while to Latin America and the Far East,

lexportswlllbelowerthanlastyear.Thisisresultingin

a much larger favourable balance in merchandise trade with the United Kingdom, and an inaease during the first nine months of this year ofmore than S150 million in our deficit with the United States. In other words, at bilateral trade with our two major trading coun-

es is mine unbalanced than last year, and the over- allmultilateral deficit in commodity trade in the nine- month period was S43 million lai-pr than in the same 1954 period. -

Astudyofthepatternofcxportcommoditiesreveals I

current levels 0 f business

Extracts of addresses

delivered at the 89th Annual Meeting of The Canadian Bank of Commerce

' 'fIf conddence In the future continues firm,” said James Stewart, C.B.E., President, addressing the 89th Annual Meeting of The Canadian Bank of Commerce,

When most fields of activity should continue to show further improvement.”

that the gains this year were largely in primary products I

with the exception of newsprint and chemicals. Secon- dary gooda appear to be suffering from cost or price differentials. While actual comparisons of prices and wage levels between countries are subject to many inaccuracies, it is generally recognized that the high standard of living and high wage levels in Canada at the present time reduce the competitive position of Qnadian manufactured goods against those made in Britain, Germany and Japan. among others, and that we have not, generally speaking, the benefits which the United States derives from mass production methods made possible by their larger market.

mom?

WIILE dealing with the agrlcullural scene I cannot refrain from commenting on certain aspects of the current situation that bear contemplation and reflec-

' lion in the light of the wider applications. Production

artificially encouraged by subsidies or support prices cannot, in the long run, result in other than market disturbance. When products enter into world markets, such activity invites retaliatory measures such as im- post restrictions and the like-restrictions certainly not within the framework of multilateral principles seemingly supported by many of the free nations of the world. The world wheat situation presently is a case in point and surely we can do something more than rely on acts of God to solve difficulties and reduce surpluses.

mom...

SINCE the steady rise in capital investment has been andthadynamicfactoninthsmsintensnceof buoyant business conditions one is bound to ponder the questions and issues inherent in encouraging a steady low of investment funds. It is generally agreed that over the past few years a large proportion of total capital formation has come from corporate saving as contrasted with open market activity. It is possible

i that this pattern may shift and that more capital

may have to be sought f'rom the public, provided of course that the investment climate is favourable. Time does not permit it exhaustive discussion of possible alternative government measures in the field of mone- tary and hscsl policy to encourage capital investment, but I am cnmpetledto suggest that the tax policy should be geared!) the "encouragement of venture capital. I suggested a moment ago that we well might see some shift towards seeking public subscription for capital expanaim. Generally speaking, in a period of growth, a corporation's working capital position will need to expand accordingly and a growing corporation well may have to look to the public for its capital needs.

.?m.-.j.......

Tim price structure ccntinucs to be strong, and, in fact, evidence is accumulating to suggest, tentatively at this point, that prices may again move upward in the months to come. We continue to have the wage-price spiral ever before us, though differing in impact from time to time.

This Invites comment on the growing belief that parity wage rates can be achieved as between the Unstedrstates and the Canadian economy. Whether this view is encouraged by international influences or is of domestic origin is difficult to ascertain. Regardless of source, it.is suggested that, while the factor of monopoly power over an important element of produc- tion possibly and probably can achieve this statistical relatianhip for a short period of time, the longer run implications, equally influence such action. Bear- ing in' mind size of our markets and the dispositim (1 our resources, there is bound to be I social cost in such a goal. As we improve our productivity and as our markets expand, thereby showing for costs per unit, it is conceivable that we can achieve some measure of parity at some futuso date. but legislatlng for it or negotiating for it

v

now are fraught with dimcultles and particularly since "full employment” continues to be an objective of policy, we must not price ourselves away ftoin this goal.

.ASweturnourthcughtstotheycaraheadltlswell to bear in mind the continuing importance of our trade to the maintenance of a high level of business activity. It may well be that the diversity and depth of our industrial evolution has provided some degree of itin- sulation" from recessions in other parts of the free world. On the other hand, the breadth and extent of the upsurge in United States business conditions cer- tainly playcd an important part in stimulating our economic recovery this year. If it can be anticipated - and signs are not wanting to invite such anticipation - that the momentum presently inherent in the American economy will carry well into the coming year, then we can expect stimulation in at least two directions: in continued demand for our export products, and in the psychological factor - confidence in business.

p We seem at this point to have established a tempo of production and consumption reflected in a level of Gross National Product approximating 326 billion. If productivity improves during the coming twelve months by two to three per cent in the aggregate, and if we assume even an average agricultural outturn, we well might anticipate an even higher Gross National Product for 1956-in the neighbourhood of 52617, bil- lion. Should this be the case such improvement would be-reflected in a relatively higher level of disposable income than last year and the natural concomitant thereof--s high level of employment. If confidence in the future continues firm then business in most fields of activity should continue to show further improve- ment.

. On the spending side it would be in line with the prospective movement of Gross National Product to suggest that both capital spending and consumer spend- ing will continue in an upward direction. The consumer spending pattern continues to be quite nexible and it might be that increasing amounts will be spent on services during the coming year. In the capital sector it is likely that somewhat less will be spent on housing than during this year while industrial expansion is likely to show some acceleration.

T.-mm.

I WOULD conclude on a note of caution arising from the growing awareness of the fact that scientific dc- velopments may have brought us closer to the absence of war as we understand it at the snid- twenticth century. In fact, atomic and nuclear develop- ments seem at this time to have generated a form of military stalemate. We must adjust our thinking to meet the change that this signifies. But of even greater significance to my mind is that under such conditions the dangers of propaganda are heightened rather than reduced. We must be on guard lest internal disturb- ances and doubts weaken the political and social fabric to the extent that our basic objectives are obscured or that we lose the will to defend them. We must learn to live with the technological and scientific developments that we already have witnessed and those that are ahead of us, and we must be prepared to resist attempts from whatever source to destroy the political and economic framework within which we have accomplished so much up to the present and which promises so much for

NEIL J. McKINNON. VICE-PRESIDENT and GENERAL MANAGER, after reviewing tlsl balance sheet, highlights of which are sum- marized below, said in part I V

The eighty-ninth Annual Statement of the Bank now before you reflects a record breaking year d growth in the business of the institution. Aggregate de- posits increaaed by more than S272,000,000 and will assets increased over S298,000,000 to a total of morn than 52,356,000,000 reflecting the greatest year of growth in the Bankis history.

Business conditions during the past year moved for- ward from the pause in 1954 into steadily increasing activity and practically all aspects of the economy with the important exception of agriculture will achieve new records. In agriculture the generally good, even bumper. crops tend to offset the lower farm prices for many products and farm cash income for the year will not likely differ much from that of 1954.

The increase during the year in all forms of credit . has been substantial and with business at a higher level of activity and with presently no general labour surplus of consequence available for employment caution is necessary to guard against ll19 P05'll'”l1lY'd an increase in money supply with po corresponding increase in production of goods and services, which would of course encourage increasing price levels. No one under these conditions can justihably object to a degree of restraint designed to avoid an unwas- ranted expansion of credit but it is at the sametims of the greatest importance that there should be con- tinuous adaptation to the legitimate needs of business growth. The banking mechanism is a sensitive one. and policies and attitudes need to be at all times flexible, with a full understanding that the business and trading environment is constantly in a process of change.

The Balance Sheet shows an increase in person?! savings deposits in excess of 595,000,000 and an in- crease in other deposits of approximately Sl69,000,- 000. Deposits by governments declined 316,000,000 while deposits by other banks increased by 524,000,000.

nThere has been an increase of Sl50,000,000 in the quick assets of the Bank reflected principally through an increase in cash and transit items of 332,000,000, an increase in holding of Government of Canada se- curities of 342,000,000 and an increase in call loans of 338,000,000.

Other current loans increased by 598,000,000 and mortgage loans under the National Homing Act in- creased by 343,000,000.

The Balance Sheet also reflects the increase in capi- tal stock and Rest Account arising from the issuance of subscription rights to shareholders in December 1954. The Rest Account has been additionally increas- ed by a transfer of 52,250,000 from profits and, in all, the shsreholderf investment in the Bank has increased by more than 322,000,000 during the year.

The Statement of Undivided Profits shows an in- crease in profits after taxes of 855,000 and after pay- ing enlargcd dividends arising from the issuance of ad- ditional capital stock there remained a sum of 53,001,000 out of which, as already mentioned. 32,250,000 was transferred to the Rest Account leav- ing a balance in Undivided Prohts of 31,399,000 com-

ilrg future, pared with S6-17,000 a year ago. ANNUAL STATEMENT HIGHLIGHTS m- YEAR ENDED OCTOBER 31, I955 ASSETS LIABILITIES Cash Resources (Including items in transit) ....... .. S 350,329,012 Deposits ............................ .. . .. 52,21 l,427,472 Securities ,,,, ,, , 873,804,326 Acceptance , Guarantees and Letters of Credit 32,506,859 Total Locum, .... .. I,0II,450,327 Other liabilities .... .. 8,137,603 Mortgages and Hypothocl Insured under the Capitol, Rest Account and Undivided Profits I04,837,97'l N.H.A. I954 ................. .. . . 49,172,067 ' Acceptcnces, Guarantees and Letters of Credit 32,506,859 , Other Assets ........................... .. 39.647314 -6?- 'n,,,,' An.” 32 356 Total Liabilities ........... .. . . . , . . . . . . .. S2,356,909,905 eeeeeeeeeeeeeeeeeeeeeeeeeee la "A"""t I I I STATEMENT OF UNDIVIDED PROFITS mm. before income Taxes . .. 5l4.309.399 Provision for Income Taxes ---- -- 7.050344 Bclunds available for distribution 3 7.259.555 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . s - - -- - - t A - - - v - H 43533 11 Amount carried forward .......... .. . 3 3.001.444 Iclcnee of undivided profits P L 31, 1951 H 647.648 3 3,649,092 Idlellco of undivided profits 9 L 31,1951. ................. .. S l.3”.092

The full test d the President's and the General Manage:-'3 addresses may be obtained by writing to the Secretary, Head Ofllca, Toronto.

I

THE CANADIAN BANK or commence v

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