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'. l .' ~ ' r ‘ SAIGON iAPl—The U.S. gov- ‘ rnment has agreed to pour in =more assistance to expand ISouth Viet Nam's armed forces iand economy for the anti-Com- munist war. Premier Tran Van government Cost is

Hucng's troubled

undetermined.

A proclamation of a joint plan I“to give greater effectiveness '» A, lagainst the infilitration threat” . hinted the war soon will be ex- »‘ tended beyond South Viet i lNam's frontiers. North Viet Nam has been routing recruits land supplies to the Viet Cong iGuerrillas via Communist - con- .‘trolled trails through eastern

aos.

Even as a government com-‘ munique summarized So llthi IViet Nam‘s view of decisions Itaken in recent urgent consul-i ltations in Washington and Sai- ;gon. the South Vietnamese Bud- ‘dliist hierarchy called for sup- .port of the United States in a irevived campaign to oust Huong.

, The Buddhist leaders—inflw ential in the downfall of the Ilate President Ngo Dinh Diem .last year—charged in effect that the premier is losing the war by alienating the use of

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'U.S. Agrees To Furniin More Aid To S. Viet Nam

rexpectaiions that Viet Cong sup.

the people. Decrying‘can support for the Saigon gov-

8‘

recs. Canada

But American backing on thelernment and that as much will buddhist drive seemed uniikeiyﬂge given as seems necessary to 0 l

e job. U.S. BACKS HUONG The communique on plans. drafted after a with the American mission, made a point of saying that. “in the course of the discus- sions. the US. representatives expressed full support for the duly constituted government of

He oted that Canada help to the

c‘Iieacl: Canadian Group Due In Tanzania By Next Month

_ DAR ES S.AhA.AM (Reutersl . . .V . .An advance group of about 30 ane M”"“_“ Huong‘ ‘ lCaiiadian military personnel I" saying 311‘ dPIPM'PS “"11 he Will arrive in Tanzania next strengthened. the communique month to train and advise Tan- lmpiled mori‘ U-S- ‘Val' Planes zanian military forces, it was and other equipment were on. announced here.

Canada.

vention of employment

smoummm.noou,m

The second vice-pres‘dent and defence minister. ‘ wawa, said-in a statement that the group's main task would be to train and build up the armed

also had agreed to help establish a military acad- emy for army officers and other military personnel. he added

iment program and that 12 )ffi- ‘ cer cadets were already training in

RATIFY CONVENTION

GENEVA (Reutersl—Canada has become t ratify the International Labor Offices convention for the pro

the ILO annou .- day. Canada transmitted the in- strument of ratification to the 1L0 last week.

“a. I! l!" M as M Nations. told a State of [and SAYS WAR mm”? ‘bonds dinner leaders of moder. TORONTO (GP, _ Ferment on m both sides are working . r 0 case tensions. chief justice Ivan ganddof tbs}— Supreme Court of ana a sa . Wednesday a large-Scale warl SPACE GARBAGE between Israel and the Arabt Space debris crashing at re... Countries is unlikelv because :itvrific speed digs countless crat. American nnd British influence’ in the Arab countries. Mr.las a pinhead and some the size Rand. who helped partition Pal-10f Hudson Bay.

Rashldi K't-

ers on the moon, some as small

with appreciation had given other national develop-

ﬂ.

he 50th country to

discrimination in and occupation. need here Mon

Always there with ready cash . . .

the way. Strengthening of the air arm would be in line with

. I Q; . ply lines ‘ii Laos will come un- der attack.

There was no indication. how- ever. that the United States plans any substantial reinforce. merit of the 22.000 U . soldiers already on duty in South Viet Nam

The new assistance will mean an increase in the American monetary outlay now running about .Q’itlflxlltiillitl a year. Asked whether there was any ceiling. a US. spokesman said no limit , - has ever been placed on Ameri-

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Remarkable prosperity of the Canadian economy in 1964

Importance of the Bank Act revision

The remarkable prosperity of the Canadian economy has been frequently analysed in the past few months. For the last four years there was an upwar end . . . Fire well characterized growth periods have con noted since World War ll: none lasted as long as ' now experiencing. As the months go by, it is us urn asking what the future holds. ln this respect. we must not only examine the_ present state of the economy. but also identify those factors which have most actively inﬂuenced the economy in the recon pas

Growth factors before 1964-

As we know. certain events or policies have had spectacular results in sustaining the growth of the economy. One example which has 0 ten been pointed out is the contribution made since 1962 b the devaluation of the Canadian dollar to the recovery of several industries and. in particular, the manufacturing in us

Near the middle of 1963, the Canadian economy was showing deﬁnite signs of steadiness and it was feared that the period of growth had ended. Several factors then united to al ow a new start. First. contracts for wheat sales to the Soviet Republic were signed in September 1963. At approximately the same time an extraordinary increase in car sales happened. lusting severa months. Thirdly. by offering a $500 p

built durin ‘ the building trade

2 Winter. the federal government activated . to such an extent that. at the beginnin for the construction of

64. the total expenditure

n the budget of the Federal , uric. t e American economy as reacting strong] to the reduction of taxes in the U. .A.. and this helped to maintain a high level of activity in Canada in many sectors of our export business . . .

Economic conditions in 1964

It is essential to stress these features of growth in the Canadian economy. even though they extend beyond the frnnicwor' c currcnt year. i. some loss of strength was noticed in the middle of 1964. the scope of which can only be estimated if the bread aspects mentioned above are considered.

Symptoms of stabilization in several sectors

a matter of fact. the second quarter of 1964 has indicated a certain slowing down in the growth of several sectors of the economy. However. this situationshould cause no surprise. For instance. it could be expected that. after the stimulus given to residential construction. the level of such investments cou not c maintained and would. or later. quickly recede. it would also have been unreasonable to expect national car sales to continue increasing unendineg at the pace already noted. Apart from the above two sectors. the symptoms of slowdown are. appearing elsewhere. In general. during the ﬁrst eight months of 19 , pr uciion was sta iona in non-durable consumer go 5 and dropped in the clothing business. The production of furniture fell off by the‘middle of the year and that of certain houscho appliances as now increased. after havmg lost beginning 0 ‘19 . Brieﬂy. it seems that. after a rapid rise in his purchases. the consumer was satisﬁed to remain. or a time. at the level already rcachc . A in. i should be noted that the volume of retail sales. which increased regularly in 1962 and 1963. grow from Januar August of this year. Under such conditions. the rate of increase in manufacturing production dropped strongly and. for the second quarter of 1964. ' vestment in usiness enter rises re ained at the same level as for the ﬁrst quarter after nearly three years of sustained progress.

This pause in the growth of the Canadian economy is not et strongly accentuated. By mid-year this pause had resulted in setting unemployment at :1 oval slight y higher than might have been expected. It does. howeverhraise the question of the continuation of growth and threatens the dynamism of the activity shown up to the present.

Bank assets over half a billion dollars

The 64m annual report of the Bank. which I have the privilege to gresent. reﬂects not only the high level of the Canadian economy throughout the year 1.64 but at: the $10.: so easy monetary policy followed by the Federal authorities during the

man .

Continued growth of the Bank . Total ass ts rose from .34871 to $506.9 millions. If one considers the pace aintamed to reach the half a billion dollar mark. it is now one pleasant to note the accelerated rhythm in the growth of our Institution. Our assets ave increased from. $400 to 00 millions in a little more than three yearuwhereu the preceding $100 millions Increase had required almost ﬁve years. '- '- Howcvcr. the rate of growth was deposits which have reached $4 5.9 millions. is only 4% 1963 the increase was close to 9.5%. crtain chart ' in our accounun ure made uring the year have accelerated the payment of cheques issued by our depositors and, as a result. the rate of increase was re u by at least 2%. However, the main reason for this situation is the slower rate of increase. of the money supply this year. ‘ cumstnnces. it is ﬁtting to bé_sstisﬂed with the results obtained of Savings Deposits from individuals which reached the total of » . The 6.5% hicrcase under ' m WI.

somewhat slower in 1964. The total of our higher than last year while in wood

It er a Cu' especially in the division $229.5 millions t the end of the ﬁscal year this headinl compares invaluany with the average of dishonored

I Maximum utilization of resources By contrast to this moderate increase of our resources. our loans have increased by $21.5 millions, or close to 10%. to reach $309.2 millions at the close of the fiscal year. r to_ meet all justiﬁ

_ In orde. _ ed tions for credit, the Bank had to modify the distribution of its assets. As a result. the investment portfolio was reduced by 56 millions during e year and cash resources another 55 millions. Nevertheless. the liquid'position remains fully adequate, considering that the primary and secondary reserves. rips other. federal government bonds and call and day loans. tots SHO.‘ millions. This em :lishes a liquidity ratio of 29.5% at our deposits, compared to 31.3% last year.

submitted applica

Diversity of loans granted 1 e have again this year complied with the needs for credit of various categories of borrowers. A particular attent has be "van to the agricultural group: advances in this sector now reach a total of approximatey 315 millions, more than half of which is authorized under the “Quebec arm mgrovemcnt Act". Our cans to industrial enter- prises have increased by ap roximstciy 2 ‘1: during the ﬁscal year. However. loans to individuals is the catcgor w ich has progressed more rapidly. Our “Bud Mans" plan continues to be extreme y well received and at the end of the ﬁscal year it totalled $20.5 millions. representing an increase 0 96 over the previous year. The building trade in general is enjoying a period of great activity which dos not fail to reflect in our loans. Under another caption. the ﬁnancial needs of municipalities and school cork missions continue to tax our resources rather heavily. We cannot but wish that and

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Extracts iron address by the President of The Provincial bank of Canada.

Mr. J.-llliaid layer.

at the 64th Annual General Meeting

of Shareholders. bold in Montreal, loco-int 8th. 1964

Growth continues in other sectors Let us note. however. that the trend described above is far from being tgeneral.

In several important sectors the upwardjwmg continues or is resumin Such is 6 case in particular With the machinery industry and agricultural implements. so. the production of non-ferrous metals. petroleum and gas. continues to advance, spurred on by an active international market and the dcvolopment _of new oil elds . . . Moreover, the export of manufactur oods, which was. as we noticed earlier. avourably inﬂuenced by the dollar devaluation. continues to gain in a remarkable fashion . However. it is ibla that the Unite _ es government may seek to clamp down on imports of Canadian automobile parts. which the recent Drury plan had favoured so well. Should this happen. the dy-

' ' in in. this section 0 .d 0 Similarly. the temporary r in British duties on manufactured goods will also restrict cenain Canadian sales. This. however. seems to be a factor which will have limited importance as far as our condom is concerned. On the other hand. it can be clearly shown that the United States economy in .1964 was not affected by the‘samo slowing down as that experienced by the Canadian economy . . . As long as American expanSion goes on. the Canadian economy will continue to receive an impetus to offset the soft spots which have begun to appear

Monetary policy

64 as in 1063. monetarypoli'cy has reﬂected the general economic situation and. to a certain extent. it may be said that it has not played a very active fpart, aside from permitting the orderly development of the economy, which '5 in itsel no mall achievemcn .

As a matter of facthto the extent indicated. when the Canadian econo

not yet reached a point of strain which would render it susceptible to inﬂationary pressures. it was to be expected that the increase in the monetary system be ado unto to the demand. It had been increased a alm 9 in t . rs was maintained until July 1964 but the money supply has tended since then to level while the pace of owth f bank. ans was diminishing. Only in November do we ' notice some expansion. This odiustment of the monetary system has been accompanied by a remarkable stability in interest rates. particularly or long-term financing . . .

the annual rate 0

Revision of the Bank Act 111 be revised in the next few months. Already deferred until. bmitted by the Royal Commissi Banking and Finance.

rt su on this rcvrsmn will have to give consideration to. if_not to implement as they standhthe ' ' is ommrssion. Two of the recommendations

recommendations and conclusions 0 C . made are exceptionally important: one concerns the removal of the interest rate of 6% as‘ being t e maximum which ma be charged by banks. and the other refers to the control which the Bank of Canada would extend over other financml enterprises en aged in some of banking activity. The acceptance of these two prowsions would ring about important changes in the ﬁnancial and monetary mar c . to bring about considerable improvement in the credit structure of Olll' country.- g imposed on bank interest rates. has had particu- to say since the

The B publication of the.repo

r whi h ed

their size and opera e same reliability as bthers. Suchodispsrities in the _elcment of risk should call for disparities in rates. Because of the limit prescribed. this is rarer i e. When its application for credit has been turn must call upon other lenders _w use interest rates are in ave and to maintain such div genes in the gradation of rates. Our ﬁnancial partilt‘ioned th s are. up about. interest rates maintained at a level

on i

markets. as ey w ’ in some cases and too ow mpth . ln " to the market and to overcome the barriers

_ inch to order to 8|VG_thO required. flexibility uuon must out appear

that diVide it. the existing com

be accentuated. in this respect the two recommendations already point ' particularly useful.

Extracts fro- adtiross by tho Mal Manger, Ir. 1.60 stsio

.inccrtainlnstsnocs specdu theftoaungotbondsontaelongterm order to reimburse inoro rapidly their bank credits. which are shon-

ggblic bodies would use elsewhere also to the benefit of the community.

social market in term by deﬁnition and could be of amount to “460,112..

Proﬁts on the Increase

Our overall opera profits for the“ last ﬁscal after depreciation and dediiltli‘tlon of the usual provisions loo contingencies. a $210,000 improvement over the revious ear. After contributin $15 .000. to the Stsﬂ Pension Fund Society and setting aside 8 170.000. for Income ax purposes. remaining profitsavailnble to our shareholders stand to 52.140.312. This is a $2.30 yield per share. or an increase close to 8% over last year's earning of $2.21 per share.

Agrowthinour uascreasoincuhrcsourccsotlowerrstum.

th our constant effort in controlling an ever increasing operating cost. account for such a progress.

Total dividends paid to our shareholders amounted to $1,405,000. Thu is a return of $1.65 per share. Close to 30% of net proﬁts of the year were set aside to be added to the aharcholdcrs' equity and t a 3100.000. do it to rest nccount. The paid-up capital and rest account now stand at $26.4 millions. is approximately 5.5% of total deposits. which i a normal ratio.

Modernisation of branches

We have and four new branches in Greater Montreal: two on Sbcrbrooks Street East. one arrogant Avenue and one hi the City of Verdun. 'l'wo agent: namst Mont-Rolland and Edmundston-East..N.B.. have been converted into bunches. a now have a total of 197 branches and 161 agencies. Furthermore. nine of our older branches either moved into new premises or were completely renovated.

Asaresult.tholsnkPremiscsscctioaofourMsctshuincrcsscdbySl-l million. after deduction of the appropriate amounts for

depreciation. The dynamic attitude of our personnel ‘ which

A reorganization of our administration structure has been undertaken.

f ittcd us to establish similar to the one strand! in existence in the Maritime Provinces for the past few years. Two were created in the c-Dlstrict and another in Windsor. Ontario. Our ﬂatulence so far has clin indicated at through such a decentralisation we bring the uni: closer to its customers. Therefore we w I endeavour to complete our room-nits yogi-mm. during 1965.

which will and; our branches m the supervision of Regional mono. Our means as an Institution rests the talent. initiative and ass] of all the members our stall. I wish to compliment them

oﬂlcers. branch managers and f their cellsnt work and assure than that it b our honest desire to b forward °r " will render, an beneﬁcial as possible. the fulﬁlment Simian: duty

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