I

. I-and . lielune D! MORE WORK: 10 no Guardian. Charlottetown. Wed. Dec. 11. 1968lw_C0:lnwry'a ha?-539:! were t1Ie'alIow betweleni 1950 and‘ 193395 2113; tthiuflirtgl mtgngssgfsiigeén tel: lyse:‘!11e5:!‘.f;l1e1t1h esuqm; 31¢:-gxgttes eta“: recline: 1” “gm; “mg: Pg-'_gCKHOLM (AP)_ml:gim .7 _.. _.—.._—..__ 3 ' ‘ , ' 1 '

' moved ...f”‘1.,.u.°..,°,,;.,‘,‘.‘.“."‘,if.¥. 32;“! ,‘?,$°o‘3€i§§ §‘If..§. of 9.5 Alberta Bureau of Statistics iFo0thil.ls and Holy Cross 1103- |cI-eased the industrial eo-ordI- Calgarlana in koymplositions in Minister Rune Jobansson savs fplants. brought its employee; ape, “mi ., year, The rate said the whole province a-p- pitals sent permit values to nator‘s annual budget to 375,000 other citifl who be asked Sweden plans to increase the l and attracted subsidiary 1ndus- iclropped to 2.6 per cent in 1960. peared to be resting on an eco- .$27.?51,260. M8895! month in («H8 fr9m $5.000. let up In 1119"" to help prompts industry here, import of foreign construction }tries and businesses. and last year was three perlnomic plateau, and any in- cltys history. and ensured C81- trial C Ommltl-ee headed by The commune . Wm” M,_ rpgkeggusggmrtsaggfidznfgr

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Calgary Plans Strong Drive

O O - 1952 Id be n- ‘g‘8f‘y'S permit values for 19% Commissioner Steel. and red TO BI‘ "19 |ndUST TO i my in" "” tn‘ -'3" °'.°°m l:;rs::aI3:." Wu u would exceed last year's 888v a market researcher and an 1521' °"‘ ‘° ‘"‘''l ‘‘ "9" "" lender has suggested that mo growth In those days hit seven A city census last‘ &[")|‘llt1’%1BUn‘DING INCREASES moo _ vdusmal mg“ Imam“ of the yen.‘ ‘emu Cu, American carpenters be in_ 3! ED TREFIAK jotficials plan l" ”3"“l 3°"°35 l’:rufr::tp‘ery::ii.Nc‘iivy iitsatijstiiygd 27?7r0t\lfi.m popumon 0 1 A bright spot came in No- In its concentrated dfort tol The industrial committee huigary. vlted. . OALGARY tCP)—-In a 875,- Canada and the United States ' ‘

EDINBURGH (Reuters) - Kenneth Dewey, 29-year - old American theatrical director, told a court beie he thought showing a nude woman in a wheelbarrow was

000-a-year fight against unflat- jto find new industry. the city's senior administrator, , Qrheil‘ objectives: pants for streamlined buildings joint ment program by the City and mistic emphasizing industrial and in 20. the blonde model who sur- GROWTH RATE IWCMNES er’ ness and residential property,

tering statistics, Calgary cityl Marshalling the attack are ,Chief Commissioner John Steel.

and Ken Ford, his industrial co- ordinator.

To fill the city‘s expanses of bald prairie and find occu- depicted in sketches $35,000,000 downtown redevelop- Canadian Pacific Railway. .

2. To bring about a tax shift Dewey was a defence witness commerdal rather than red. the case of Anna Kesselaar, dermal assessment, prised the Edinburgh Festival Mr “eel ‘aid me assessment drama conference in septa“ :1-a'tio'now is 50-50 between bustl- Dewey said Miss Kesse- 1 th d 3. -11 laar's appearance in her birtb- i iatmtin h: 263005 splfi’ I W M up 3

day suit was "a happening.’ 1

He explained this was "an ex- Adella ’s

pression of art in the same O Sophisticated

way as painting." 21 she was wheeled In Millinery for a dis- ccrniiig clientele

the nude across the organ gal- Acccssorics to match

lery of Edinburgh's famous 3 McEwen Hall. Dewey said 15 events occurred. Organ music played, a debate took place, , and people appeared at dif- ferent windows shouting: “Me, look at me."

The prosecution charged everybody looked at Miss Kes- selaar and that she behaved ‘ “In a shameless and indecent manner." Publisher John Cal- der was charged with being part of the offence as confer- ence organizer.

The opening day's testi-

a 0 , Mlllmery % I Cafherihe 1-Iotchkiss, who said . (-harinuegown it was “an absolute scandal." "- Dec. ll Set lg As Seaway I Deadline

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St. Lawrence Seaway at mid-I night Wednesday, Dec. . ,

Although the Seaway officially; closed Nov. . ‘ has been, handling ships because of good weather and a minimum of ice ~ interference. V

The St. Lawrence Seaway Au- thority said here that ves- sels will be allowed to enter the » Seaway up to the Wednesday‘. deadline and "will be able to complete their transit. weather._ and ice conditions permitting. ‘

As of Monday, two oceani- werc heading eastwaI'di_ from Lake Ontario to Montreal‘)

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“Canada’s competitive strength improving”

“Present circumstances offer us an opportunity for vigorous efforts to cope with some of our underlying problems”, said J. P. R. Wadsworth, President, addressing the 97th Annual Meeting of the Canadian Imperial Bank of Commerce.

Highlights from the Prcsident’s Address

The record of the Canadian economy in the current year shows clearly that the over-all position is relatively favourable. New records of production have been achieved in many areas, and this production has been sold successfully at home and abroad. We have achieved an increase in the Gross National Product which, in current dollars, will probably be about six per cent in the year 1963.

An important source of this strength has been the improve- ment in our merchandise trade balance. The surplus on mer- chandise trade in the second quarter of the year was estimated to be running at an annual rate of $500 million. It appears that the deficit in the current account of our balance of payments during the second quarter of 1963 was running at an annual rate of approximately $460 million. This estimated annual rate of deficit compares with total deficits on current account of some $850 million in 1962, $980 million in 1961, more than $1.2 billion in 1960, and about $1.5 billion in 1959. However. the extent of the improvement should not be exaggerated for it is not at all certain, at this stage, that the deficit for the full year 1963 will be less than $500 million. In a period such as the present, with a high level of consumer expenditures and sub- stantial business investment, there is a strong tendency for imports to increase.

There are also certain special factors to take into account in V

making an assessment of current economic conditions in Canada. For one thing, 1963 will be the first full calendar year that we have been on the fixed exchange rate of 92.5 cents (U.S.), which was set with the International Monetary Fund on May 2, 1962. The advantages which have resulted from fixing and maintaining this new rate of exchange will continue only to the extent that they are not offset by price increases within Canada or compensating changes in the exchange rates of other countries. Economic Outlook

There is, however, no room for complacency about our economic prospects. The crisis experienced with respect to our exchange reserves and the foreign exchange value of the Canadian dollar in 1962, together with the immediate reaction to the Interest Equalization Tax Act proposed by the United States this year, are reminders of the basic sensitivity of the Canadian economy to judgments made and decisions taken in other countries. We must do all we can to build up a sub- stantial and sustained surplus in our merchandise trade and reduce the deficit on non-merchandise items in our balance of payments which continues to be in the vicinity of one billion dollars a year. The size of this deficit reflects in large measure the substantial outflow of interest and dividend payments which constitute the cost of servicing foreign investment in

anada.

The most gratifying aspect of the business situation in Canada at the present time is the fact that each major region of the country has been participating in the expansion. 1 woul like to touch on some of the highlights of developments in each of these areas.

Atlantic Provinces

The rate of capital investment in the Atlantic Provinces has generally kept pace with that of the country as a whole, and the proportion of the new investment made by business organizations is roughly the same for the Atlantic Provinces as for Canada as a whole.

Quebec

In the Province of Quebec business activity has continued at a high level through this year. There have been further gains in many measurements of activity reflecting the general buoy- ancy in business conditions which has been characteristic of 1963.

The manufacturing industries which produce items for basic consumer needs, such as the food industries, have continued to supply general strength to the economy while the industries which provide services of various kinds such as utilities, merchandising organizations, and financial institutions have been somewhat stronger.

Capital investment has again provided considerable stimulus for the Quebec economy. Total outlays for all types of invest- ment including housing are estimated at close to $2.3 billion in 1963, establishing a new record for the province. The in- crease over 1962 is estimated at $117 million, 51/; per cent, and follows an increase of $160 million in 1962. There continue to be strong increases in outlays for utilities, manufacturing facilities, institutional services and various other forms of social capital.

Ontario In the Province of Ontario, there has also continued to be a high level of activity this year. The general pattern has been similar to that of 1962, with the rate of increase in over-all activity showing a fairly strong upward trend. The manufacturin industry, with its many facets, has been the major source 0 stimulus. The value of manufacturers‘ shipments in the first nine months of 1963 totalled $10.6 billion, some seven per cent higher than during the correspond- ing period of the previous year. Manufacturing accounts for roughly two-thirds of total output in Ontario and substanti year-over-year increases have taken place in a number of its leading industrics—stee1, automobiles and parts, farm imple- ment: and machinery, to name some of the most important Increases. Capital investment in the Province of Ontario continues to be very substantial and in 1963 total outlays in private and public investment will approach $3.1 billion. This will be an

increase of about one per cent over 1962. a somewhat smaller increase than in the previous year. Prairie Provinces

In the Prairie Provinces the outstanding feature of the business situation is the fact that the wheat crop has set high volume records in two successive years and the sale of these ‘ L *" ' I ‘ ' is virtually assured. This year the Prairie wheat crop is estimated at 703 million bushels, last year the crop was 546 million bushels. The contract signed with the Soviet Union, which covers the sale of approximately 240 million bushels of wheat and flour to be delivered by July 31, 1964, is by far the largest single commitment in this crop year. In addition, important contracts have been made with Japan, mainland China, and some countries in Europe which have not recently purchased Canadian wheat. When these new sales are added to the requirements of our other customers, it is estimated that sales of wheat for export and domestic use in the crop year 1963/64 will reach a volume equivalent to this years entire crop.

The petroleum industry continues to make very substantial contributions to the economies of Alberta and Saskatchewan, with Alberta now accounting for about two—thirds of Canadian output of crude oil and natural gas liquids. Production of crude oil and natural gas liquids increased five per cent this year, reaching an average output of 785,000 barrels a day. Sales of natural gas increased by roughly one-third over last year and are expected to average over three billion cubic feet a day, one-third for export. By-products from natural gas production. particularly sulphur, have also shown a substantial increase in sales.

British Columbia

In the Province of British Columbia 3 number of factors has combined to make this a very good year. An important source of stimulus has been the sharp rise in capital investment which is running roughly 20 per cent higher than last year. This increase will amount to about $190 million and bring total outlays for private and public investment to some $1.1 billion for the year. The largest outlays for capital investment are concentrated in the pulp and paper industry and electric power projects. Housing also is up strongly this year with starts running about 15 per cent above the volume in 1962.

Another major stimulus for British Columbia this year has been a strong export demand for a number of the products of its major resource industries, the increase in sales taking place not only to traditional customers but to growing markets across the Pacific, particularly Japan. ’

The important forest products industries, which account for roughly one-third of the net value of production in British Columbia, have had a very good year.

Output of lead and zinc is comparable to last year and there have also been important developments in new copper and iron mines which have long-term sales contracts with Japan.

This regional review has pointed up the wide range of undertakings which make up the Canadian economic complex. At the same time it has provided a picture of the extent to which capital investment is giving support and further stimulus to each region of the country. It also emphasizes the extent to which economic conditions in one area of the country are directly affected by conditions in the other areas. This year, for example, the big wheat crop and the contracts for its im- mediate sale are bringing benefits to each major region of the country, the seaports and the industrial centres as well as the Prairie region.

Prospects Generally Encouraging

For Canada as a whole, prospects for the future are generally encouraging, but we are still confronted by certain basic pro lcms to which we must continue to devote careful attention.

One encouraging development has been the notable increase in the volume of Canadian manufactured goods sold abroad. In 1963 the value of these exports may be as much as $900 million compared with slightly over $400 million in 1960. Markets for manufactured goods are highly competitive and much depends on the level of unit costs as well as on product development and salesmanship. In this connection all the cost factors are important, because they directly affect our com- petitive position both in export and domestic markets.

In fostering the growth and development of Canadian industry and enterprise, both for domestic and export markets, the Canadian banks with their wide distribution of branches across Canada and extensive correspondent bank relationships throughout the world have played and will continue to play an important part. This Bank in particular, provides a worldwide banking service with constantly expanding facilities to Canadians with interests outside of Canada, be they exporters, importers, investors, or travellers on business or pleasure. For residents of other countries we provide equally extensive sefrygfiens, including the facilities of our branches in every part 0

The full text of the President's and the Chief General Manager's addresses may be obtained by writing to the Secretary, Head Office, Toronto.

CANADIAN IMPERIAL

World trade is growing and becoming steadily more com- petitive. Federal and provincial government departments are providing valuable assistance to the efforts of business enter- prise to obtain an adequate share of this trade. However, research, production techniques and marketing skills are pro- gressing rapidly in many countries. There is also the possibility of major changes in the field of commercial and tariff policies involving, for example, the working out of the United States Trade Expansion Act, the ‘policies followed by the European Economic Community, an the whole question of Common- wealth preferences. -

The present circumstances offer us an opportunity for vigorous efforts to cope with some of our underlying problems and to endeavour to ensure that the competitive strength of the Canadian economy both at home and abroad is steadily improving.

William M. Currie, Chief General Manager, reviewed the balance sheet, highlights of which are summarized. His remarks follow in digest form:

The Bank's 97th annual statement marks the first occasion on which total assets have ex , ,000,000, an increase of $486,000,000 or 10.2 per cent over the previous year end.

Items in transit included under cash resources showed a decrease of , , . ese are non-revenue-producing assets and the reduction of this total has been made possible by improved clearing procedures and, latterly, by the use of electronic sorting machines and computers, a field which this Bank was the first to explore and develop.

Quick assets of $2,655,000,000 were equal to 53.35 per cent of the Bank's total liabilities, as compared to 49.4 per cent as of October 31, 1962.

With the relaxation of monetary restraint during the twelve months under review, the country's money supply increased steadily and as a result the Bank was able to meet the deman for loans and add to its liquidity by additions to its security portfolio, which had been substantially reduced during the previous financial year. As at October 31, the ank’s commer- cial and other loans of 52.1 14,000,000 represent an increase of $29,000,000 over the previous year end.

During the year 39 branches were opened and 22 were closed, increasing the Bank's total branches to 1,283, of which 26 are located abroad.

Total deposits increased 10.3 per cent to $4,782,000,000, of which $2,209,000,000 represent personal savings in Canada, an increase of 6.2 per cent. Deposits by the Federal and Provincial Governments and by Other Banks also increased.

Undivided Profits of $20,385,059 were up $1,195,133, or 6.2 per cent, over 1962.

Earnings per share at $2.93 compare with $2.75 a year earlier. Total dividends of $15,678,000 were paid at the rate of $2.25 per share.

The Bank recently announced the acquisition of financial interests in two existing companies, Triarch Corporation Limited and United Dominions Corporation (Canada) Limited. The former specializes in equity and interim mortgage financing, while the latter en ages in medium and long-term capital financing. In addition t e Bank, through all its branches, will act as sole agent for Kinross Mortgage Corporation in the placement of first conventional mortgage loans. These new associations will further broaden the comprehensive services already available at our branches. ,

in closing I should like to say that progress such as that reported could not have been accomplished without the co- operation of a body of personnel which has provcn itself to be second to none in the Canadian banking scene. It is therefore with the greatest pleasure that I express the thanks of General Management for the hard work, devotion and loyalty which employees of the Bank at every level continue to direct towards the prudent management of our affairs and the realization of our ideals of service to the community.

ANNUAL STATEMENT I-IIGHLIGHTS YEAR ENDED OCTOBER 31, 1963 ASSETS cash Resources (including items in transit). ... S 709,441,696 Government and other Securities ............ .. 1,546,032,806 Call Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 399,523,935 .. . . . $2,654,998.43? Loans and Disc . 2,114,514,988 Mortgages and . » .H.A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 219,059,186 Customers’ Liability under Accaptancss, Guarantees and Letters of Credit, as per con . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167,731,763 Bank Promises .... .. .. 67,506,371 Other Assets. . . . . . .. 24,802,899 Total Assets ..... .. . .................. .. fi>T2_4~87,‘61-376471- LIABILITIES "— Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34.782.271.680 Acceptences, Guarantees and Letters of Credit 167,731,763 Other L in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. '26,565,936 Shareholders’ Equity Capital Up .............. .. 3 69,680,000 .. I Rest Account . .............. .. , .000 Undivided Profits ............ .. 2,364,265 272,044,265 Total Liabilities ..... . . , . . . . . . . . . . . . . . . .. $5,248,613.64-4 STATEMENT OF UNDIVIDED PROFITS Profit after ‘income taxes .................... . . 3 20,385,059 Dividends .............................. . . . .... .. 15.678_.0_00 Amount carried forward . . . . . . . . . . . . . . . . . . . .... . . 5 4,707,059 Transferred from Inner reserves after ' provision for ‘incorna taxes oxlglble . . . .. 6.000.000 Balance of undivided profits October 31, 1962 ......... .. . '... . - 2,657,206 . 3 12,364,265 - Transferred to not account............. .. 10,000,000 Balance of undivided profits » October 31. 1963 ............ . .. ..... . . . .... .. 8 2,364,265 ‘°Totat provision for income taxes $21.9 , ‘

BKNK OF COMMERCE