yANUARY 19, r926 ~ ‘-

is BENIRAL GUARDIAN

' THE CEVIARLOTPETOWN GUARDIAN

I PAGE saves

°__y.,,,,- calendar il THE FARMERS GUIDE i»... m- you to subscribe CALENDAR will be iounil very‘

5,, "hscflptlon.

' Until the old Free th l, ED»- - W- a new o 1 ,l Iii: Get your cdlantdir scflpuon‘ \ r renews sub

"ion

. f. ‘i - tier 0f JOIIHBWIXQ R i . MARIES Any res "B nt and caienu . ‘ laiL "mm"! l‘ Ndwljm" m" Fillmore Guide aiitl czileinriii , uohary W"! h!" l0 llIlI the Auld Lang Sync Cil-UINILII‘ w Wye is only I f"! m0" He Will!‘ each new or renewal. I r

_____.

AULD AOQUAINT- be the best game oi’ the season in ' FORGOT n01 WIUI B“ aiilillllfifflIilfl ‘iuesday iiiglit. s,“ Calendar in the 728a_18_2, with your new 0r

lfnblcylpliDll.

iJggEER-BELL — On w m9 United Church of .1, Manitoba was the

- gxccedlnl)’ i179"? W911‘

Jaw], Loweuherge, WPQRE thins when he asked his hi the lute Jacob liow- lufllfmm‘? Tm“ I" D889 three and . W, Slapham, Lou,“ oegin the second week o: “The

liter of lMr. and Mm.

3,“ at -Sliellinonth. form; told in Color Cut-Outs. Theie is at mmy, l’. E. i. were unit- pretty paper doll to go with each

wedlock by the Rev. l). y“, bride who was charm

"not i“ White seflreiw» DICKIESON-NICHOLSON. _. A

with fillVPl‘ 811191“! U16 vieiy quiet wedding took place on oh the til‘!!! U! I19!‘ Illlllfll‘ .lie nitsriition oi‘ ’l‘iiesdny, Jan. 5th, strains "I ‘Mmli-Wlrmllllh‘ at the home oi Mrs. D. D. Nichol-

‘ liarcli. She was attended

[later Myflle- Wllofle 11"!“ ilatigliter, Miss Christina Nicholson,‘ -]Jll1Ii'Cl‘1.‘Ilf5'(l9'(-'I'|9n3- trlllf was united in marriage with Mr. lli tifllil- llr- Lowenberger“ Stanley Dickieson, oi’ iPatederic-ton. jAllilll "Fwd "9 heel ""1" The ceremony was performed liy 1hr fllgflmg °l ‘he reglswl‘ Rev. H. H. Stavert. 'i‘lie bride was! llorii hiijlvllrl ""3; Ill") attended by Miss Jeanette McDon- n llflllllwo lfiiflecll-l Li)": aid. teacher iii the Glen Vullcy ptslllll" l: it‘; fétgflngns Th}! school, while the groom was sup- Tcllibilhill em“ no“ “ufiseir ported by .1. l). Nicholson, lirotlicr ltlllfaihullnchg “Isl; the mmr uf the bride. After tho ceremony “MM and meauflml gm”. was over all sat down to u iluiiitlly they received testified to u“ ,| a , ‘ _ _ will" "l “l” Y°‘"'B "WW"- 0Il-I0ile iiiiitli-Zsidgrinuntirlieii“bailiff.

llllglfglnd bamllgetcufglegllllii The Guardian Joins in wishing them

id; helped in,uo small way ."iiilmif.siiiifif..lli.‘?“iiié . A w~<=

gift to the bride was a _r cliieque. to the bride- string of pearls. and to the nan illl onyx tie pin. Mrs. presided at the organ in a

shie manner. Mr. & Mrs

erger ill‘? spending their] non in Regina, and on their‘ .§,wiil make their home on ' ‘. r - Ii ~t i - nifiilrifshbllliiiioiitlis. giimnilei-‘old’ m"! BI-charlb “mm” “mule”

ourniil leiise copy.

tutti‘

,_

uaranteed

Selected for quality,

pisleurized for pur- ity. wrapped for ‘cleanliness, we pui our name on it and assume a moral re- iponsibility for every ounce of it that goes on your table. Al- ways look for the ' Kraft label.

“aided for flavour‘ iin the long ago. Jacob says he has

Free Recipn

iwhen he passed away. A brother

-ago he went through the distress

i

- i

Jsuitllnlll the caring or live “our, as we as fora diary o! events;

THREE ci-ioiczs. -a oa-Liixei

-___ . ! HOCKEY, HOCKEiL-You Wm‘

“OF THY SPEECH BEWAR~E-" ~~Whai was it that niudc the ilro .-.nd the feast vanish‘! Had the "0""? ‘llflllsliten been unkind to ~l1e stranger? Had she said the

..\'llll6i"s Daughter" which is being

JIIYW! story.

son, (lien Valley, when her only;

prepared supper to which all did

many years of happy wedded life.

Jacob Price, of Price Settlement. Northumberlund County, N. IL, is only very DOOTIY-dil his 83rd year the old gentleman is keeping up tho family tradition 0t’ being long- dived. lie is one oi six brothers who never gave in till the eight- ieth milestone was passed. His [brother James who died ut New-

castle some time ago was 88 years oi‘ the Price Settlement, was 8d

Jesse. died in Dakota at the uti- variced age oi’ 88. Wm. Price, of ‘Hlllshoro, is still living at the page oi‘ 92 and ‘Henry, still another brother, is one oi the old men oi Bangor, Maine, in his 88th year. Mrs. John ‘Robertson, of Tahusin- tnc Bridge, is a sister and sheis lriisi. becoming a candidate tor these octogerian honours. The father oi‘ this remarkable group of children came to the Price Settle- ment from Prince Edward island

lived where he is for sixty years mid would not rbe happy anywhere. else on earth. A little over a year

‘and excitement of a fire that des~ troysd the dwelling and nearly all its contents. In a new house on tho old site he tries in reconstruct the scent"! and associations of a long and thrifty pnet.

New Glasgow Notes

Mr. George Brown and Rev. W.

Book will: Kraft MscLnien Cheese Co. Lid.

Montreal.

l‘? ,~. nil limo...

fig.“ ~ ‘ l

Rexall Dyspepsia Tablets

__i.

"MP"! relieve the worst '°"'" oi indigestion, im- “WN and dyspepsia.

A Trial Will ailtvince You of Their Merit Pnics so ceurs AND "-00 PER eox.

soto outv av

J. IMcLeud visited the City on Sat- ,urdny.

‘Owing to the severe storms and tllreiltelilllg iveatiier the open 11'1" rink has been abandondeii for the present.

This Rev. E. iM. and Mrs. Altkin have taken rooms with Mr._ Blair Aiiilrew's.

The many friends of lMr. Art-l (‘lliilti Moifatt will be glad to know that he is slowly improving since his prolonged illness.

Two oi’ New Glasgow's young men who were recent vfsitors to Union Road report that Mr. Edi!" isteveeon aim! ‘family who lately moved to thut vicinity are getting along nicely iii their new lioiiie.

The Misses Ester and Evelyn Stevenson of Brooklliie N. Y. i1"? spending the winter here. hiivinit been called home on account 0t ‘thew mother's serious illness, but we are glad to report that she is slowly improving.

The New Glasgow School ls. progressing favourably under the skillful manailvllle"! OI ‘Ml CY?" Horton. 'i‘he\ Women's lnstltilts made many improvements in the school equipment this term, unil the new signboard will be much appmcitation by the ‘totirists next month. ,

Mrs. John tMellett is able to he around again since her attack o! La Grippe.

iMusa iStevenson spent the Christmas holiday at her home hero. '

Our village blacksmith, Mr. El- bert Hill is very lbtlBy this winter.

IMrl. (Dr.) Stevenson is able to he. around again alter an attack ot rheumatic lever.

‘Mr. l tMrs. Stewart Parkman are being congratulated on the arrival ot a baby girl.

Mr. Stirling Brown, student at

Dalhousie spent his Christmas holidays st his home here.

Mr. IPreoton Campbell is doing

IMMENSE PROFIT POSSIBILITIES. IN

HAMBURG 415% soups

In the year I9l9 the ca; of Hamburg lgsflflwliy). fIOBIGd I IOBII. IQ.“ w‘. Iggy‘ "' ‘If’ H'mb"l'l 4Vz% State Loni of o‘ _—-Series B-—the Bond's forming part

0"} loft’: are the securities which possess possibilities of earning pmfih up g, ‘tazéoooqo on the capital amoun‘ invested

o ay.

125mb")? 472% Bonds represent n direct Obligation of the City of Hamburg just as Ch)’ of Montreal Bonds or City of Winnipeg Bonds represent a direct obligation of the c0)’ of Montreal or the City of Winnipeg: l“ G°Ymlfllfl GU of Hamburg Bonds are IQRBI investments for trust funds and savings bank; in short: the prime type of security.

Canadian Municipal or City Bonds are payable, that is, they are bought, sold and redeemed with Canadian Money: likewise German Municipal or City Bonds are pay- able in German Money i.e._ may)“, Th; Paper Mark, or what is known as such. hav- lnk no value. itqnight be thought that the Bonds which are payable in that money or currency are also without value. It is not so, however, Hamburg 4l/;% Bond; u. not only worth hundreds of dollars in cold cosh today, but they will be worth much more in the future.

We can best judge by compariwn, Take for example: City of Toronto Bonds, a $ I 00 City of Toronto Bond today is worth $ l 00.00, perhaps more, in Canadian Money; Canadian Money consists of Notes issued by the Canadian Government: every $I.00 Note is theoretically worth $I.Q0 in Gold. Supposing, however, the Canadian Govern- ment was to print many millions of Dollar Bills without at the some time increasing the Gold Reserve; it is obvious that if there was no real demand for the new Currency Notes or Dollar Bills, there would be no means olf securing the necessary Gold Reoerve-dwhat would happen? Simply this: those Notes or Bills which were already in circulation would lose some of their value since the newer Notes would share in the theoretical dis- bursement of what was in Reserve.

Inflation Defined-The ptocegfl of iggu- ing Currency Notes without adding to Gold Reserve is known as Inflation. i.e., the Money becomes IIIIFIGCQJ. T9 return to our supposition: if this process of inflation were continued for very long, Canadians would soon lose all sense of the actual Gold Value ‘of their Currency and it would be found necessary to measure its value with the value of some Currency that was mound, i.e., worth its Face Value in Gold. During the Great War such a currency was the United States Dollar.

If the inflation process should continue until I Canadian Dollar ($I.00) was worth only 25 Cents ($0.25) in Ameriqn Mongy and conversely I American Della‘: ($l.00) would be worth 4 Canadian Bills ($4.00), it can thus be seen that a City of Toronto Bond of a Par or Face Value of $I .00 could be bought for 25 American Dollars ($25.00).

If we will further suppose that n period of a few years elapses between the date on which it would take I00 American Dollars ($ I 00.00) as well as I00 Canadian Dollars ($I00.00) to buy a $I00 City of Toronto Bond, and the date on which it required only 25 American Dollars ($25.00), while it still required I00 Canadian Dollars ($l00.00) to purchase the same Bond we will have a good idea of the situation in German Municipal Bonds today.

When the City of Toronto cells it: Bonds for Redemption, which wc suppose the City lwill do at the end of the two-year period, it is obvious that if the bond holders are offer- ed Canadian Dollars that are worth only one-quarter (l/4) of their Face Value in I Gold when the Bonds were issued, a great injustice will be done them. Moreover, it is extremely unlikely that the bondholders would accept depreciated Paper Money in payment of their charges on the City of Toronto. '

Situation in Gcrmany—-Thatis just what happened in Germany after the Great War. V/ealth invested in Government and Muni- cipnl securities was literally wiped ulmool ouZ of existence by the Inflation of German Mtmcy. Our example of a City of Toronto Bond that supposedly loses three-quarters (V4) of its Face Gold Value is almost farcical in comparison with the losses in Gold Values which took place in German Government and Municipal Bonds.

A classical indication of the extent of the '

Depreciation in Gold Values resultant upon the inflation of German Money is furnished by the fact that I000-Mark Bonds were never traded in alone: Bonds were dealt in that aggregated millions of Marks. A Bond transaction that involved 522300000 would have attracted some attention before the War, yet in I923, The Investment House of C. M. Cordasco 6t Company, sold many millions of Marks in German Government Bonds for a few tens of doIlarr-blforo ffld War the some transactions would have Involved millions of Dollars.

Th; greatest example of Currency Infla-

tion that the world has ever known, took

Place in Germany during the years tIut followed the War. In fact, the Gold Value of the Gannon Mark depreciated from Inn- unry Ist, I9I9, to November 29th, I923, to such an extent that the Muk caused to function as a Currency and ifwns necessary to introduce a new Currency.

.Now German Mon¢y_"]"h, 1,“, monqg. cry unit isknown as the Roichsmark or more commonly the Mark (this _ eness of name has led to endless confusion). and It has today a Gold Value of 23.8 cents as Ind the old Mark prior to the War.

At the beginning of I9I9, l,000,000 Marks in German Currency had an approx- imato Gold Value of $l22,000.00, just prior to the adoption of the new monetary

' unit in November, I923, the Gold Value

of l,000,000 Marks in German Currency- was an infinitesimal fraction of a Cent- in fact, the depreciation had been so greet that German Marks were traded in trillions, one trillion (I,000.000,000,000) Marks having a Gold Value of about 24 Cents.‘

In spite of the tremendous decrease in the GolifVeIue of Germain Currency, Ger- man Government Bonds, State, Federal and MITIIQIPCI Issues retained considerable Gold VI ue ' comparison. True enough, their Gold islue was ridiculous by comparison with normal Gold Valuers (German Gov- ernment 5% Bonds worth $238,000.00 be- fore the Great War. could be bought for $I0.00 or less during the latter months of I923), but nevertheless, the great faith of the bondholders that ultimately Gold Marks would be paid Where Gold Marks had been received, kept prices up.

Rrices of German Government Bonds reached their lowest levels at the height of the Inflation period. At that time (in the Fall of I923), The Investment House of C. M. Cordnsco 6t Company, strongly advised Canadian investors to buy selected German Government and Municipal Bonds.

The outlook at that time, however, was one of extreme gloom. All of

. Europe was in a chaotic condition. In-

flation lsad been taking place in many countries. Confidence was at a low ebb, Th: pmblcm of reparations was hang- ing fire over the heads of the German people. Mdny lost faith in the ultimate recovery of Europe to anything ap- proaching Arm-war conditions.

The Dewey-Young PIGII——1Tl¢n came the Dawes-Young Plan and the Financial Commissions; ' uncertainties were removed. The road to future prosperity was laid open. Confidence returned. Hope sprang anew in the breasts of the German people. They agreed to shoulder the Reparations burden.

e wheels of industry began to turn once more.

Reflecting the new confidence in the future German Government and Municipal Bonds made spectacular rises. Many issues jumped hundreds of dollars overnight. The table following illustrates graphically the ex- tent of the first great rise, and gives at the same time an indication of the extent of the previous declina:

Bends. All quotations per l,000,000-Mark Unit I'll] of llfil Fill Of IDII Full nfllll City of

Berlin 4s -. . . - $5,500.00 S 9.00 $13,000.00 ' 5,000.00 I200 9,000.00 0,750.00 11.00 5,000.00

7,250.00 10.00 18,000.00

7,000.00 9.50 13,000.00

7,500.00 9.75 13,000.00

7,500.00 0.75 10,000.00

7,500.00 9.25 13,000.00

7,250.00 10.00 23,000.00

hit] 7,500.00 12.50 15,000.00 Goff. Wu Loans 5s 5,500.00 0.00 2,800.00

At what was believed to be the top of the first rise, The Investment House of C. M. Cordasco 6t Company advised its clients to sell their holdings of German Bonds and take their profits.

During the months that followed prices of German Government Bonds held steady around their recently reached levels. At that time the pressure of the Bondholders on the Government to have service resumed, i.e.. payment of principal and interest (which bad been temporarily suspended), on Fed- eral, State and Municipal Bonds. began to be felt.

An election was only a few months off. Both political parties promised n careful a- nsider-tion of the demands of the bond- holders. '

Revaluation Explain¢d- W h e n Ger- many had accepted the terms of the Dawes Plan, there was no provision made for the redemption of her own Government. State and Municipal obligations—tliousands upon thousands had lost their fortunes during the Inflation period; their Bonds Iind becomb well-nigh worthless. The recovery of er- mon industry and finance from the date of the acceptance of the Dawes Plan was so

. rapid, however, that her nationals perceived

that there would be a surplus remaining after the nuity Payments prescribed by the Dawes Plan and the demand for com- ponsatio from the Govemmeni on account pf losses sustained through the depreciation

In the Gold Value of Government securities become incessant.

This oompensstion was necessarily partial. The Government could not afford to ro- sume service on the full Gold Value of Gannon Bonds. The measure of i.- mpori- notion, accordingly. took the form of Re- vlluntion Cvvvl merit Bonds were to be fevulued. that is. an agreed upon Rate of Valuation would be mode: this Rate would apply on the normal or original Gold Values of the various Bonds. To illustrate: l0% Revaluation of War Loan Bonds meant l0% of. l,000,000 Marks. each Mark worth 23.0 Cents 5r l0% of the total szsaooooo which would be $23,B00.00—in Germany. of noun-o, the Revaluation was expressed in so many Gold Marks for so many Marks For Value of Bonds.

TTie Election took place. The Nationalist Party which had promised I5% Revaluation ho bondholdon came into power. It must be understood that I5% Revaluation meant that the Government would pay Bondholders I5’: of the Gold Value of their holdings. Injho case of German Government 5% Bonds aggregating l,000,000 Marks, men- tioned heretofore, which were worth $238,- 000.00 in I9I4. I5% meant a Gold Value 0f I50,000 Gold Marks» or $35,700.00.

The Revaluation Law—A few months after the election a Revaluation Bill was submitted to the German Reichsteg (Parlia- ment). This Bill promised only 5% Re- valuation and later the rate was still further reduced to 2V1%. On July l5th, the Bill was made a law and the firs! step in the way of honorable settlement of her rational obligations was taken by Germany.

Wlienit become known that only 2V1% of the Gold Value of German Government Bonds could be expected for the present, the market which had discounted (i.e., risen to or reflected) u much higher figure, fell sharply. Tbe table below indicates the ex-

tent of the reaction: All Qlwtltlins per ' IJW-(IID-IIII U!“ lands. lull of lull oi 10%

isu City of Berlin 4s .. .. ..- ., 013,000.00 0 7,500.00 Bronson 4s .. .. .. 9,000.00 4,000.00 Coblelu b .. -. .. 15,000.00 15,000.00 Colognsls .. .. .. .. 18,000.00 0,500.00 Dresden 4s .. .. 13,000.00 10,000.00 Essen 4s .. .. .. .. 13-00030 ‘aw-W Frankfurt 4s .. .. 10,000.00 0,000.00 Lsiisig 41/; . . .. .. 13,000.00 8,500.00 Mlllidl 4| . . .. .. .. 23,000.00 15,000.00 Stuttgart 4s .. .. .. 15,000.00 0,500.00 Government War Loans 2,800.00 700.00 A secondary reaction followed and prices moved still lower. Iust prior to and im- mediately after the Locarno Conference.- however, n vigorous recovery set in and all issues are moving into higher ground. During the course of the events depicted above Hamburg 4V1% Bonds of I9I9 fol- lowed the course of the market. As the Loan was issued in I9I9 when l,000,000 Marks had a Gold Value of approximately $ I 22,000.00 City of Hamburg 4% ‘)5 Bonds aggregating (i.c., denominations making up) a Unit of l,000,000 Marks had a Gold Value of approximately $|22.000.00. In the Fall of I923, however, ‘the aforemen- tioned Unit Iud fallen to $6.50, and at the time .of the first rise, reached $I.500.00. Today a l,000,000 Marks Unit in Hamburg 4Vg% Bonds may be bought for as small a sum as $420.00. The Revaluation Law compensating hold- ers of Hamburg 4%% Bonds to the extent of not Icu than 2Vg% of the Cl Id Value

of their holdings places an approximate

.Golcl Value of $3,050.00 on every l,000,-

000 Mark Unit. or on every investment of $420.00. made in Hamburg 4y;% Bond- todey. Every $420.00 invested today can. therefore, cam a profit of $2,630.00. Ind this is only die firs! step.

Many Cities in Germany are reported I0 have made an initial Revaluation of their Bonds at as much as I0%, I596 and even 25%. We believe flint the City of Ham- burg will increase the rate of Revaluation to 5% before long. The financial condition of the Municipal Government It” shown great improvement during the pest months.

When the City of Hamburg increases the Revaluation rate applying on the estimated Gold Value of these Bonds—upproximately $l22.000.00 per l,000,000 Mark Unit. every $420.00 invested today will eam a profit of $5,600.00 at 5% Revaluation: It I0% the profit will amount to SI L360 00 for every $420.00 invested today.

We believe that eventually, City of Ham- burg Bonds will be Redeemed at their nor- mal Gold Value or I00%. and the far- sighted inveetor can accordingly expect that ultimately he will obtain the estimated Gold Value of $I22,000.00 for every l,000,000 Marks Unit in City of Hamburg 4V2% Bonds or for every $420.00 invested today.

Wealth of Hamburg- The present pop- ulation of the City of Hamburg is close t‘ a million and a half and is steadily increas- ing. The City of Hamburg is the greatest seaport in Germany. The City does not rely solely upon its commerce and shipping for prosperity. Ii has its own industrial plans such as railroad shops, ship yards, iron and boiler works, refineries, cotton mills. printing anclldyeing plants. and many others.

Official figures from Iingliiih sources state that the shipping and trade of Hamburg Iias been increasing by leaps and bounds. and that the Government shipbuilding industry in the past your has mode great strides towards regaining its fonner place. i

The wealth of Hamburg and its citizens is e common by-word in Germany. It has been crested. maintained and increased in centuries.