I[he Guardian Charlottetown. Wed. Dec. 9, 1904. 7

Pearson's UN Approved By

By JOSEPH MscSWEEN

LONDON (CPl — Canadian Prime Minister Pearson’s plan for a United Nations peace force has been approved by the House of Commons.

The House agreed to a mo- tion calling attention to the need for UN reforms “in particular by the creation by like-minded states as suggested by the prime minister of Canada, of a .mall peace-keeping force on a permanent basis."

It. appears certain the force will be discussed this week

when Prime Minister Wilson, : powers could not control or con-

jtain the great powers." said

who has stressed his new Labor government’s k e e n concern

about UN matters. meets Pear-Haw of a former Canadian gov-

son in Ottawa.

There was no formal division on Monday's motion. presented by Conservntive member John Tilney. former joint undersecre-i tary for Commonwealth rela- tions.

eorge Thomson. minister of state in the foreign office. spoke in support of the Pearson plan

n within the terms of the charter.

Force Plan British House

being done by the prime minis. iter of Canada and we were ac- tively exploring whether we can assist in this work in a way that would be acceptable to the United Nations. In particular we were looking at the possibil- ityrt of providing logistics sup-

_Lady Tweedsmuir. conserva- tive MP for Aberdeen. said what Pearson proposes is that middle powers should combine

a force outside the UN but

“But the forces of the middle

Lady Tweedsmuir, daughter-in-

. ernor~genera1. “The disparity of strength be- tween the middle and great

Countries which have contrib- uted to various UN peace-keep- ing operations recently held an Ottawa conference on the tech- nical aspects of the problem.

but said in answer to a ques— tion by R. A. Butler, former Tory foreign secretary. the gov-C ernmcnt does not plan to ear-‘ mark British contingents for

“No. I had not gone so far as that." Thomson told Butler.

"I thought I had explained we were fully supporting the work

The Scandinavian countries, as well as Canada. have car- marked forces and Prime Min- ister Shastri of India said on a visit here Friday he warmly supports the concept of a perm- anent force, But he said a way will have to be found to en- courage participation by the So- viet Union

Thompson Denies Planning Merger With PC Elements

By JAMES NELSON

OTTAWA (CP)40ciai Credit leader Robert Thompson said

ere many Conservative- minded Canadians are seeking his leadership in a political vacuum being created by the old Conservative and Liberal parties.

But he said in an interview he knows nothing to support a report in the Montreal Gazette that Social Credit leaders ap- proached Conservative part executives in Ottawa over the weekend, to look into a right- wing merger which would result in a new party dedicated to private enterprise and he maintenance of confederation.

Conservative sources also de- nied knowledge of such meet- ings. Opposition Leader John Dietcnbake; dismissed it as an- worthy ot comment. and other sources indicated some Social Credit MP5 from Quebec 8 seeking Conservative support.

One Conservative source said Mr. Thompson conferred with some persons attending Satur-

'4

8

reported overtures for a merger i may have been prompted by Alberta Premier Manning's re- cent statement that Canada

needs a more clearly identified 3 .

party of free enterprise. Pre-i mier Manning and Mr, Thomp- v son are known to maintain ai close liaison.

Premier Bennett of British' Columbia also has emphasized. the same assessment of na-l tional politics. Mr. Bennett’s. relatiins with Mr. Thompson,‘ however. have been more i strain. ’

l

LANDMARK GOES

LONDON (CP) - London- erry house. a famous land- mark in Park Lane, Mayfair, is to be demolished to make way for a luxury hotel. The, mansion. built in 1830. was in the Edwardian era for brilliant political receptions

S? 5

given by Lady Londonderry.‘ London County Council ap- pealed for its preservation but was overruled by the housing ministry.

day's Conservative party execu- tive meeting here, but Mr. Thompson said he had no deal- ings \I‘ltn executive members of the party

DENIS REPORT

"i can't understand the basis for such a report," Mr. h son said. “I have not held any high-level meeting with any ex- ecutive of the Conservative Party and I am not pushing anything."

But he did say that the road ahead for Conservative-minded Canadians has lect of widespread discussion lamong politicians and the pub- ic

p-

There are a lot of people. he said. who don't want a socialist party so they are looking for somewhere else to go. He said that in many of his trips on speaking engagements outside Ottawa he is approached by busmessmen who he believes are conservatives.

_'They look to me for leader- ship m private enterprise and confederation.” he added.

1 r. Thompson also said the

DAI

TURKEY

WITH ALL THE TRIMMI'NGS

FREE TURKEY DRAW

A Fm M wlll be given away every week until airlstmss. "‘9' you sane when you buy a Turkey Dinner.

lY

DINNER

RIDAY

COMPLI'I‘I

FISH DINNER

ALL m FISH YOU CAN EAT

ZEILER'S “D.

159 [dot at...

77°?

“Good Reason to Approach the New Year with Confidence”

“Trends within the economy may be more varied and increases in output more moderate than in 1964 but, in general, economic conditions should

We meet today at the close of a year that has been favourable for Canada in many respects. Economic con- ditions within our country have been generally good with each major region continuing to participate in the general prosperity. Total Gross National Product in 1964 is now expected to exceed $46 billion, an increase over last year of some 6 per cent in volume and approaching 8 per cent valued in current dollars. This is the fourth year of steady growth achieved without marked pressures on labour and materials and within a framework of comparatively steady prices. It is a good record of sustained expansion.

The strong rise in output this year has been achieved primarily throu a sharp increase in export sales and a substantial rise in private capital investment.

Exports 0n the export side. strong demand from the United States. the United Kingdom and “‘ ‘ L " ‘ in high volume sales of Canada’s major traditional export items including wheat and flour, newsprint and pulp, lumber and ply- wood, and various semi-processed non-ferrous mineral prod- ucts. In addition. there has been a sharerise in. shipments Iof

of aircraft and parts, semi-fabricated steel, industrial and farm

" ’ ' r ‘ ‘ Exports of products from I ' _ industries ‘- '- encourag- ing gains in volume and variety, and the delivery of a sub- stantial portion of the 250 million bushels of wheat sold to the Soviet Union has been a major supplement to the usual flow of exports. The total value of merchandise exports from Canada is estimated at 86.2 billion for the first nine months of 1964, an increase of about 23 per cent compared with the corresponding period last year.

almanulvl ’ AL J 1-

. Capital Investment Capital investment has also been the source of substantial stimulus to the economy. The estimate of total outlays for r' ‘ ‘r "' ' ‘ ‘ " ' ‘ vis810.8billion for this year. If this program is accomplished it will mean an increase in outlays over last year of about $1.5 billion, by far the sharpest increase since 1956. rise in capital investment in the business sector has resulted from a combination of developments. World demand for the products of our mines and forests has increased in a number of the basic resource industries to an extent that war- rants further expansion of capacity. The development of extensive energy resources is going ahead following the con- summation of agreements for the sale of power to the United States. Industrial Production The general pattern of industrial activity has reflected the stimuli from exports and capital investment as well as the of domestic demand. Industrial production rose sharply during the latter part of last year and has moved gradu- ally higher in a saw-tooth pattern through 1964. The average level of industrial production in the first eight months of this year was 9 per cent higher than in the corresponding period of last year. Agriculture The outstanding development in the agricultural sector has been very high volume of wheat exports in the crop year ending July 31, 1964. Wheat and flour exports amounted to nearly 600 million bushels, almost 80 percent higher than in the previous year and t double the average for the proceeding ten-year period. The dollar value of wheat exports in the last crop year was more than $1 billion and the major export mar- ket for Canadian wheat was the Soviet Union which purchased about 40 per cent of total export shipments. The wheat crop this year is estimated at some 600 million bushels, 17 per cent below last year’s record harvest but still the fourth largest on record.

Consumer Sector ,

Personal expenditures advanced markedly during the last half of 1963 and the early part of this year. The rate of spend- ing for durable goods was especially strong, paced by record purchases of automobiles. Outlays for imported goods and for travel abroad increased quite sharply, following the pattern of previous business expansions. In the second quarter of this year consumer expenditures increased only slightly but the year-over-year increase was still almost 7 .

Personal income has followed a similar pattern, rising sll‘iarply in the fourth quarter of 1963 and the first quarter of t is year.

Government Sector

In the first seven months of the current fiscal year, April to October, the Federal budgetary s lus was $451 million com- pared with a deficit of $128.6 million in the concsponding period of 1963. In the seven-month period this year expendi- tures were up 875.5 million but revenues were up $655 million. which suggests there is some possibility of balancing the Federal budget in the current fiscal year.

Employment

The advance in economic activity this year has been accom- panied by some increase inemployment. The total number of people at work in September was estimated at 6,754.000. an increase of 189,000 over a year earlier. Unemployment was estimated at 218,000 in September 1964. some 32,000 under a year earlier. '

The employment picture, in terms of the utilization of the labour supply, is the most thvoursble since 1957 and in some regions are ' tions of considerable pressure on the supply of certain types of labour.

Balance of Payments

Canada's balance of payments for the first half of 1964 showed a deficit in the current account of $518 million com- pared with a deficit of $452 million in the corresponding period

u‘yus..nt J! r- I r u Inn'invo ‘ each ng over 20per cent. Merchandise exports for the six men , . .

valued at 83,767 million; the

ass your: on tredewas 8160million, up 812millionfromayesr earlier. At the some time, the continuing deficit on non- encamwm.wm ....m .. mi n, to 'ts in and the lowest and ' account. In lllcreased by 866 million. connection it is important to note the very sharp

oncummaccounttnmscuonswrththe utheresultofthemuch mechandhc wuslso

sorneincreaseinthedsfidt'onnon-msrchsndise '

Oudooktorfl“

Itlsfrom‘arecordlevelofeconomicactivttyintheflnal Motthisyesrthstwomoveonintolm. 'I'helevslling out appearedinsomesressoftheeconomysroundmid- andthesuongupwardnendin inthefall. ‘I'hoeconomysdllsppears bahnce, inventory-sales ratios in by historical standards, the

5' 3:-

J . I, . j ..

volume of unfilled ' . is keep- ing a tight rein on prices. trength is continuing to flow from many sources. _

There are indications that the surge in capital investment will continue through next year although the increase in volume may be somewhat less than this year.

The climate for Canadian exports may not be quite as fa- vourable next year. Assessments of the economic outlook for the United States in 1965 indicate a somewhat slower rate of increase in economic activity than this year. crseas there has been some slowing down in growth rates in a number of coun- tries which purchasc substantial quantities of Canadian products.

Consumer expenditures and government outlays for goods and services, the other two major sectors of final product demand, have provided firm support to the economy through this year. Changes in detailed patterns of expenditure in these areas are to be expected as demands change in response to shifting income flows, _ , ‘ " v , ' U ‘ ‘ r ' ‘ influences. However, there does not appear to be any reason to anticipate marked changes in the general trends of demand in these two sectors.

During the coming year, the economy will continue to be affected by events and changes in policy at home and abroad that are difficult, if not impossible, to foresee. With this im- portant proviso in mind, there is good reason to approach the new year with confidence. Trends within the economy may more varied and increases in output more moderate than in 1964 but, in general. economic conditions should continue to be favourable.

Saving and Investment in the Canadian Economy

There has recently been a good deal of discussion in Canada about the extent to which Canadians are themselves providing the necessary financing for their economic development.

The largest single source of savings, and hence of investment funds, is from the retained earnings and depreciation allow- ances of corporations. The most important use of such savings is to finance additional real investment in Canada covering new construction. new machinery and equipment including mining equipment and drilling costs. The second major source of investment funds is personal savings.

The savings derived from the business and personal sectors of our economy would normally be more than adequate to finance the real investment required by the private sector. This, how- ever. is not the whole story, since the various levels of govcm- mcnt also draw heavily on the savings of the community, and the net borrowings of the government sector have the effect of reducing the amount of savings available for investment in the private sector of the economy. The extent to which the volume of domestic savings falls short of the achieved level of invest- ment, both private and public. is also the measure of our not import of foreign capital. If the problem is examined in these more fundamental terms, there are two courses of action, each of which could help to reduce the gap between the actual volume of domestic savings and the volume required to meet the demands in Canada for private and public investment. The first approach is to try to encourage a greater flow of domestic savings; in this connection, taxation policies are obviously of great importance. The second is to reduce the net diversion of investment funds to all levels of government, leaving a larger portion of present savings available for produc- tive employment in the private sector.

Canada Pension Plan

The Canada Pension Plan now before Parliament will have an important influence on the flow of savings and the pattern of investment. It is important to consider what the impact of the plan will be on the availability of investment funds for use in the private sector of the economy as well as its effect on the over-all rate of growth in Canadian productive capacity. Much will depend on the ways in which the funds are used by the responsible government authorities and on whether the availa- bility of these funds tends to encourage increased gavcmment expenditures.

Another aspect of the problem is the way in which savings are mobilized and made available to those requiring them to finance economic activity. As already indicated, business enter- prise may use its own savings directly for investment purposes. but its ability to do so frequently depends on the availability of working capital loans from the chartered banks. Insurance companies and pension funds also play a very important role in the process of gathering together savings and making them available in N ‘ ‘ ‘ " ‘ “a, fora " ,, ' economic activities. An important factor is that these institu- tions operate through a market process so that borrowers, whether private or governmental. have to compete for funds on a price basis, and lenders obtain a return which corresponds to the value placed on their funds in a free market.

Role of Chartered Bank:

The chartered banks, of course, have a crucial part to play in the whole operation of the capital markets. As a major deposi- tory of the savings of the community they are also a major source of financing for business, personal, and governmental operations. The ds entrusted to the banking system, whether as savings deposits, demand deposits. or other types of liabilities, are in no sense idle funds. They are constantly at work in the form of loans and investments in every branch of economic activity in Canada.

e Chief General Manager has dealt with two of the major restrictions in the present Bank Act which inhibit the employ- ment of bank funds. The ceiling on lending rates and the prohibition against takin conventional mortgage security serve only to reduce the availability and increase the cost of credit in certain important areas of financing. The removal of these arbitrary limitations would mean that the funds en- trusted to chartered banks could be used even more broadly

d more effectively in ways which could provide an added stimulus to the Canadian economy.

William M. Currie, Chief General Manager, reviewed the balance sheet, highlights of which are summarized:

The Bank‘s 98th Annual Statement reflects a growth in assets of approximately $255,000,000 to a total and new peak of over 35.500.000.000. The cc of the economy was reflected not only by an increase of 81 8.0w,000 in total deposits but also by an increase of 8286,0m,m in continental and other loans.

Deposits with other banks increased by 824,000,000, Govern- ment of Canada direct and guaranteed securities were reduced by 878.000,“)0, and call and short loans to investment dealers and broker} were lower by “minnow.

The liquid position of the Bank continues to be strong with quick assets at 82,560,M,W. equal to 48.99 per cent of the Bank’s total liabilitiu to.tlie public.

The owtbincommetcialandotherloansofslmost 14px

CANADIAN IMPERIAL

BANK OF COM MERCE

Over 1300 branches to serve you

continue to be favourable,” said J .P.R. Wadsworth, President, addressing the 98th Annual Meeting of the Canadian Imperial Bank of Commerce.

cent was widely spread over the full range of the Bank’s lending business.

Bank Premises shows a net increase of 83,600,000 after depre- ciatinnl" 'w‘ 1 "' ' r ‘ ‘llclo to bring the total number of branches and banking offices to 1,334. of which 1,302 were located in Canada and 32 abroad.

Total deposits, up $188,000,000 to 34.971.000.000, reflect an increase of $123,000,000. or 5.6 per cent in personal savings ‘ deposits, and a substantial increase in the total number of sav- ings bank depositors. Other deposits increased by 81 10,000,000; included are other Canadian deposits on demand and payable after notice and deposits in foreign currencies.

Throughout the Bank there were gratifying increases in the total number of current and personal chequing account customers during the year.

Turni'. ‘ ‘L ‘ ‘ ‘ '

,, " " ’, m the net profit of 821,402,602 represents an improvement of 81,017,543 over last year. Earnings per share were 83.07 as compared with $2.93 in 1963. Total dividends of 815,678,000 were paid at the rate of $2.25 per share, leaving $5,724,602 which, together with the balance of $2, , 5 in undivided profits carried forward from 1963, made up a total of $8,088,867 from which $5,000,000 was transferred to Rest Account. The balance of $3,088,867 was carried forward to the 1965 fiscal year.

Paid-up Capital, Rest Account and undivided profits totalled $277,768,867, and the Bank’s shareholders increased by 1.282 to 2 , .

Growth in loans and deposits is perhaps the best evidence of the part played by the Bank in meeting the credit requirements of Canadians in every walk of life. The chartered banking system could finance a much wider range of Canadian needs. Two of the restrictions imposed by the Canadian Bank Act, the six per cent ceiling on loan interest and the prohibition against loans secured by conventional mortgages, prevent the banks from competing with other lending organizations whose rates would be lower if faced with chartered bank competition. Large seg- ments of the public thus are forced to pay higher rates than they would if the banks were permitted to compete in these fields.

uring the past two years data processing centres were opened in Montreal and Vancouver and this year a second com- puter has been added to the Toronto centre. Presently, the book- keeping of over 200 branches in these three centres is largely done by this electronic equipment and the number of branches within the system is steadily increasing. Cheques processed in the Toronto centre alone have been increasing at a rate of 10 per cent per annum and the annual volume is now in excess of 100 million individual cheques. Modern electronic data processing eliminates much of the tedious bank work and releases person- ncl for more challenging and constructive work.

Important as these installations are, Canada’s need for wide and diversified financial services extends to the smallest hamlet. In most cases chartered banks, including many of this Bank’s

nadian branches, provide the only financial services available at such points, bringing to them every facility avail- able in the largest metropolitan centre.