I

EPTEMBER 1. 193s

jock Quotations MINING

(Canadian Press) TORONTO. Ad! li- Stocks

ontreal

Stock Market

(Onnadinn Press) Acme Oil ... ... ,-.. ... -... s; i

our Steel and‘

‘at llrcw ,.. 0W9!‘ (‘orp . uelwc Porn-r . llawluignn ,. » tecl of C1111

Pivotal New York Stocks

(Canadian Press)

’ 1s 140 o5 40::

Stocks

Allied Chemical

Am and F‘ Po and

Anaconda _.. (Canadian Press)

30 2 1

27

411

17

88

Kir-k Lnko Kirk Pro ... Kootenay ...

30

. 90

.. R3 ... s. 200 4

230

‘is

Moss Mine Newbec ,.. Nipissiug Noraudn .. . North Can . 0km

(‘use ,.. ffhcsnnouke an (‘nn Gas . Corn Products

limolifi ..I-"..l ,_"

Studncoua .. . ‘ St. Anthony Sud Basin Sud Cont .

Thoma (‘ad . Towugmnc Unit Kirk Vacuum . lvuito A M Wiltsey-C . Wright B Wayside

Silver ,.. Total sales 855.000, UNLISTED

. ... ,.. ... ... ,, Brownlee . . . . . .' . ,-

Cal and Edm

Cnn Kirk ,

Cap Ilouyn

Cen M

Canadian Press) G, Aug 81-

cross Oct 701/‘; Dee 721,5; '. Oc-t m4; Dec salts;

rhcy: Oct m4; Dec ems;

TVINNIPE

lliay MAY Hey

CASH PRICES

t' No l hard 70%: No 1 no!‘ 2 nor 001,5; No 3 nor 01; No - No l5 581/1; No 0 55%,- Feed

l‘ - ' Track 60%. nt N2 WSTVuNoBCW : Ex 1 fem! 35%: Na 1 feed 88%: 2 fct-d 3l%;-No 3 C W 28%; Track .. 'lvyg d row ox 3 C W 401i: No 2 -ex 3 C“! 44%; No 3 CW 40%: 417 W 37%: No 5 C W 30%; No W 81%: Truck 40%.

PRO_,_D__UCE"

(Cnnadlnn Press)

MONTREAL, Aug 8l—Stocka of tter, cheese snd eggs in storage at ontreal at the end of August were lnounccd by the Montrel Board of rude today, Cheese stocks were hown to be away ahead of u month fro and n year ngo as n result of he light exports of late. Storage ggs supplies are also greater while utter and fresh eggs showed do-

rases from a year sgo. The totals follow: Aug 81. 1988 er. utter 181,088 boxes. dn, butter 2,020 n. Cheese 201,803 boxes. Fr. eggs l acs, St. eggs, 112,128 cases. ‘ c month ending Julv 31 1033: or \. tier, 140.734 boxes. Dr. butter, 200i boxes. Cheese 102.210 boxes. Fr, rugs 10,031 cnacs, 5t. eggs 111318 cas- es. For the month ending Aug, 21. 111112: Cr. butter 100,232 boxes. Dr. butter 714 boxes, Cheese 108,218 box- us, Fr. eggs 14,310 cases. St. eggs 02,-

"REPS. ccs on the lilfnntreal dairy »lco market generally lunged today. No 1 ' uerl st 17% to 17 for carlota or less. Receipts - ..d only three boxes.

the cheese market Ontario held ..t 0'79 to 9% cents a pound while Que-b sold for 9% to 0% cents. A lotnl f 800 boxes was offered lor

linttetrrlonl ihqon ... Ruynlite , So Keora . Ventures .. Wood Kirk

(Canadian Press)

Stocks

Amer Cyan B ... Amer Sup Power As G and El ,.. Can Marconi ...

and

Miscellaneous

(Associated Press)

staple commodity prices (D90 l

1001 equals 100), Today 180.6 prov dsy 130.0. Week ago 180.2 month a’? 187. 1038 high 148,0 1088 low .7, 1003 low 108.9 1982 low 79.8. (Copyright 1038 by Moody's.)

Ialo.

Graded shipments in eariots or lass bf eggs remained at i1 to 22 esnta s dosen for extras 11 to 1S cents for firsts and 14 to 16 casts for seconds. Arrivals amounted to 412 cases.

ntnio market new Banshee ll."

tinned to he quot at

0h e tntoea con be

cents per 80 onnd Iinanh Linirsseni eaasa Cpralns.

_ Save These Coupons 100 vorrs rnrr

OR

‘(Name of Contestant)

In every issue of this paper each week up to Sept. 23rd. Start saving votes NOW. If not for yourself, why not save them for your favorite candidate?

This coupon, when neatly cut out and mailed or brought to the Campaign Department Headquarters of The Guardian will count for the person whose name is written thereon.

MAIL THIS COUPON BY SEPT. 28rd.

l0 2%

8400 2V1 I

lfzi give personal security for

o.

85f This he understood is a

N. Y. CURB

NEW YORK, Aug 81-inch! of 15

Many Changes

(Continued porn Psgo I)

fault made: against whom would the bank go to cover the amount of the debt?"

Hon. Dr. Macmillan: "They have their real estate. their factory and their plant." ’

m. .1. w. Boulter, Deputy Min- ister of Agriculture, explained that the co-operatives are Joint stock

Pltrona of the fsctoriesQTheir ss- curity is the plant snd machinery, and the butter or cheese they may have in stock. The difficulty has been that th, farmer is in need of money every month. At, the pres- ent time the price of butter is

i

I

_ vence the cheques each month and

is felt that higher prices will be

farmer is suffering for 1m];

I feel that the banks should carry;

, lbw: amounts as over-draft. The

' iProviucial Department hag been

:2; advised that the directors are find- 15] ing great difficulty and have to

l loans they may receive.

i The Chairman said another new I matter covered by the brief was [the suggestion to extend Section | 8B of the Bank Act. to cover foxes. special iindustry of Prince Edward Island

24%! and it is suggested that the provi.

:' sions for giving security be extend-

12- “v ed to them; also that the provision

. for seed grain be extended to fer- tilizer as well. He asked what in- terest rate is charged by the banks on loans. _

Hon. Dr. MacMillan: one-half per cent."

The Chairman: “That would be the minimum. I, suppose it is some- times more than that. Is that the rate that: was charged to the co- operative companies?"

Mr. Boulter: "I119 large co-op- erstlve organizations secure their loans at six per cent; the smaller ones pay six and s. half and some- times seven per cent."

BANK BRIEF SUBMITTED

Hon. Dr. MscMillen then intro- duced Mr. L. D. Murray, manager of the Bank of Nova Bcotla, who, on behalf of the banks established in the Province, presented the fol- " lowing statement: '

On behalf oi the Banks estab- lished in Prince Edward Island, the following review is submitted in re- woct to trade, industry and bus- iness. and the manner in which the flnsnclsl needs are being met by the Banks.

The Province of Prince Edward, aptly described as the “Gordon of the Gulf" is essentially an agricul- tural province and has been high- ly developed as such. Its popula- i tlon is 88,000 and it. is served by five Banks, operating twenty-seven branches. or one in every 3.76s per- sons. Ii: has an sres or appxoflmn- tely 1,400,000 acres, of which about 85 percent ls represented by farm properties. Improved farm lands

"Six and

l6 constitute 55 per cent of the total

acreage of the Province.

The ivllvwins wmmrstlve names indicate the growth of the net pub- lic debt in the last ten years, in which Period the population has ramped practl ‘ly constant:

107.2 1983 Net Debt 01.4mm: $3,632,333 Population 88,616 88,038

Mixed farming is carried on

generally, the principfl-l Products of

‘it the Province being poiitoes. oats,

My. livestock. poultry. eggs and butter. The soil is especially adopt- ed with the aid of chemical fertil- iser to the glowing of potatoes and

EXCHANGE

(Canadian Press)

‘ONT-REAL, Aug Sir-British and‘ foreign exchange in relation to the Canadian dollar, as compiled by the Royal Bank of Canada, closed today

as tailors:- ina peso .8810.

1.

.885. Csechoalovskis crown .0458. Denmark krone .2120. Finland finrnsrk mess. .‘ y relchsmsrk .85?! lroet Bftniln polka; 4.1m. mecs rac ma , Holland florin _600i. Hungary bongo 3B6, Hungary pengo .184. ndia rupee .11 rtaly lira 07%“ span yen . . s dinnr $331.

fiiugeslev- orwa rrone . , N Zyea snd pom 8.0080. o nd aoti , 7S7. out»: Airiq; pound 4,1020. g 1251. 2408.

in peseta . kron . Swiiserluud franc .2881. United States dollar BK per cent premium. (Associated Press) NEW YORK Aug Sb-Forei n change firm. Great Britain hig low 4.51%: close 4-5? : 00 4.51%: France 5.57 : Italy 7.40: Bv-lgimn 10.88: Germany 84,00: Can-

ada 00.00, __ (Canadian Press) Exchange rates at the close today PPO!:—

Canadian dollar in New York 05. French fmnc in New York 0.07%. Csnndlnn dollar in Paris 17.00

francs, u s can» in Paris 11.5 anus.

companies, the stock being held by

very low; the peak of production is Past. and by holdins’ the butter iligdthl: fieelyunflzgnc: by ‘:8 in void storm for a slim time u; dim 8 d“! °“ °i

I sales-s seasonally require to borrow

' their customers. Country merchants _ generally make s. practice of grant- tonn credits to those they; an average with the rest of the

rnE CHARLOTTETOWN GUARDIAN

m!‘ Product is exported in large quantities. The Province specializes in seed stock, for which there is a strong demand from the potato sections of the United States snd Cubs. ‘mole stock is also exported to Quebec and Ontario and to the nstern United States markets st times when prevailing prices are

product which commands a ready market owing w its high quality and

flnd s. ready market.

I purchasers. Eggs snd poultry are

elation of farmers formed for that; ipurpose. This association has been iililiie successful in developing mar- kets and in improving both the

It finances seasonally through ‘ills Bankers against the security of ilts members notes given for colla-

Eteral purposes. In the spring large ' "Y Quantities of fBIfl-UZQI‘ ingredients

iare imported co-operatlvely and by "ipfilllifl concerns. This business is [financed through the Banks in the iilrst instance against the security ‘;of the ingredients procured for the jmanufacture of the fertilizer and after distribution by discounting notes of farmers to whom sales are made;

Low prices which have prevailed ‘during the depression for all farm -pmducts have naturally affected (adversely the income of the farm- ing community. but possibly not quite so seriously as elsewhere ow- ing to the abundant crops and the

W811 quality thereof. Iiarmers are freely accorded credit by the Banks seasonally to enable them to pay for supplies and wages pendlu realization of their crops and as a Eeueral rule such advances are promptly liquidated in the Fall.

what slow. but even so the Prince Edward" Island farmer l; berm- vthsn an average credit risk.

Fox ranchins. ‘which ls closely allied to the farming industry qw- lng to the fact that a great. many

of the farmers or the province Carry at least a. few foxes, is high‘- 111 developed. in fact it was on Prince Ediwerd Island- that the industry bud its inception about twenty five years ego. This industry‘ which in times pest has been ex. trwrdinarily profitable suffered‘ during the depression duo w a decline in prices, but scarcely to the Point- where some small gain

could not be shown for the year's

work. The principal return to the

rancher is from the sole of pelts,

breeding stock no longer being in

active demand as formerly. The

P01" 0J9 disposed 0i’ on the New

3701*. Iondion and Paris markets

through the agency of local dealers‘ or the large fur companies operat-

ing in those centres. The raising

of foxes in captivity is subject to

greater than the usual hazards

owing to the prevalence of disease

periodically and lo the wide flucl

tuation in prices for pelts. Accord-

ingly the Banks have stood aloof from extending assistance to ranch-

ers other than of quite moderate

amount. Iiiowever, credits are made

available to dealers in good stand-

ing in season pgsinat the security 0f pelts valued at conservative 11g-

ures.

The fisheries also provide a sub- stantial revenue to the Province. Canned lobster is the principal item of export snd finds s. ready market in Great Britain, Continen- tal Europe and the United States. The individual fishermen ls financ- ed by the supply houses and the large commission houses..end the latter in turn borrow from the Banks against the security of the canned product, either by wsy d warehouse receipts or under the provisions of Section as of the Bank Act. lbwort. business is fin- anced by the discounting of drafts on purchasers.

manufacturing is carried on in the Province to s. very limited ex- tent, being confined largely to items for local oonatlnlption. such as cans used by lobster factories, light farm machinery. and fox biscuits. ‘rhere _ara several meat packing plants and butter iaotorles established st various points which obtain their Fsesaonsl financial requirements through the Banks against the se- curity of their inventories. ‘Wilrolss-ie trade is controlled by

supplying the needs of the Prov- port in large volume. ‘Iiheso whole-

heavily from the Banks against warehouse ',. security and their general assets, and they also are freely accorded credit in the way of discounting paper drawn on

mamed- In the meumme the ihandlcd co-operatively by an s.soo-_

of money. The directors wish to ad-

quallty and the output 0f its mem- i

farmers notes payable lathe All through the Banks.

The requirements of the Prov- ince and municipalities for current and capital expenditures are regul- arly handled by the Banks, such advances on current account being liquidated when the annual rev- enues are collected and those en

mildew-iv high to shame use capital account when the debt has heavy American duty Isllnst f0r- {been funded eign potatoes. Seed oets is soother ibentllfu.

by the issuance of de-

~As the forming remarks attempt to indicate, the problems oi this

is exported in volume to the rnain- Island Province in regard to mark- land. Hay, hogs, poultry, lambs. ‘etingits productsandfinancing dur- @831. and butter are shipped to the lug the period of production are mainland and Newfoundland and inot difficult and given a "eiaurn of

normal prices for what it has in

The mutating of produce is ‘sell prosperity mould soon return handled byoo-opeo-etive associations. _ to it. private companies gnu mdlvlqun]; Charlottetown, PEI.

August 313i. 1988 ORAL EVIDENCE

Having thanked Mr. Murray for his presentation, the Chairman said: "With regard to these co- operative companies or societies, it has been suggested that credit is not given unless the directors’- per- sonal pledge is received. What. is the banks’ position in that regard?"

Mr. Murray: “Phat is largely a question of individual merit. It de- pends on the risk involved, and

t

just how fer the different menu‘

bers wish to speculate. It is purely a speculative proposition."

The Chairman: “D0 you always require the personal security of a director 0r directors when you make advances to co-operstivo or-

‘ ganlzaiions?"

i

i

i

i

Mr. Murray explained that his bunk dealt with only two butter factories, and these concerns had sufflceni; capital under thg Act to be financed without personal guar- antee.

i em Provinces?" Mr. Murray: "The other Eastern Provinces."

Trustworthy Iks-rnOr-s

The Chairman: "There is an ides. that the Maritime Provinces

large scale.‘ Do you find that you have s. specially trustworthy popu- lation i0 dell with?"

Mr. Murray: "Yes, I think on the whole that the Island farmeri ia s pretty sane and careful in- dlvidusl."

The Chairman: "What propor- tion of your farmers require to go, to the banks to help them?"

Mr. Murray: "A very small pro-

or do per word. Other rater Mhrlrnusss Charge for any curls.

BATH-lo per word. throa in- sertions for the prioo of iws, strictly payable in advance.

1

Agents Wanted

MEN WITH CAB. WANTED TO sell 160 guaranteed home necessi- ties in their own district. Also

portion."

‘i710 Chairmen: “Are the othersi able to carry 0n with enough’ working capital w run their farms; ihflitllelvcar I

Mr. Murray: "I think so." I

The Chairmen: “Even in these? difficult times?" i

Mr. Murray: “I would say so." i

‘ms Chairman: "How many farmers are there in the Province altogether?"

Mr. Boulter: "About 10,000."

The Chairmen: “Do you find? i that they withdraw their savings?" ‘

Mk. Murray: "They don't. like to' do that. ‘Ihey would rather bor- l row." ,

The Chairmen: "Even though their savings are only yielding two and one-half per cent?" Q

Mr. Murray: "They would rather j borrow or incur a bill with the country merchant."

The Chairmen: “But. if your cus- ' tomer has a deposit account on which you are paying two and one-half per cent, you have pretty good security, haven't you?"

The Chairman: “But I under- stand there are a. number of these institutions on the Island?"

Mr. Murray: "Yes."

The Chairman: "They deal with

g Ofillel‘ banks?"

Mr. Murray: "Yes."' The Chairman: “Do they vary in

1 15h l " ,1'..a/tterly payments have been some-i m potent a‘ ‘Crumb?

Mr. Murray: "Very markedly; but such companies as provide s. margin of 25 per cent would have very little difficulty in obtaining advances. The banks are clearly entitled to a. margin."

The Chairman: “What is the rate of interest you charge these oo- operatives?"

Mr. Murra : "Our rate of inter- est to the two customers I referred to is six per cent."

The Chairmen: "With regard to farm loans purely, what is your rate?"

Mr. Murray: “Six and one-half. It was reduced from seven and one-half since the first of May last."

The Chairman: “I gather from your paper that so for as this Is- land is concerned the farmers meet their obligations reasonably well."

Mr. Murray: "I think so, yes."

The Chairmen: "Have you many cases of frequent renewals?"

lvlr. lvlilrray: "Yes, we are carry- ing loans on our books for fertil- izer for 1930 and 1981-1931 par- ticularly. We had occasion yester- day to renew loans up to late this fall on paper that originated in 1931 for fertilizer. With regard to renewal notes for short periods, I think that very largely refers to loans that. have been mtagnatlng for two or three years, and the banks have been endeevoring to work them out.

Terms of Credit, Etc.

The Chairman: "What. we have heard elsewhere is that the farmer who wishes to finance his orop would get an advance, but it. would be limited t0 three months. There- fore he must. come back at the snd of three months, and if he comes back he gets s. renewal but the interest is compounded with the principal, and he must pay st s higher rate. It has been suggested that that is not a good way of doing business. The answer that. is mode is that the banks like to have the opportunity of seeing how the security is standing. It is an advantage to them to see the debtor at the 9nd of three months. ‘Iihat one could understand; but it is not: quite so easy to miderstand why the result of the visit should be compound interest. Have you experience of that kind of thing?"

Mr. Murray: "lhat, after all, is getting down to s. question of in- dividual credit." He pointed out that in his own experience many fertilizer loans do not. fsll due un-

lomwmsrassnslnsaorlsnwlifl the M"! Dmmbslu "w

note: are usually made out to that

inee they handle produce for ex- i dill-

The Chairman: "You realize that the term of credit should be in line with the date n to meet the obligation."

Mr. Murray: "Yes."

Tho Chairman: “Have you large deposits in the banks here?"-

Mr. Murray: "Not individual de-

I

ingl

posits. They are, I would say, on

acrve the oclnmunivy and fln- Province."

Mr. Murray: "Yes, of course.” The Chairmen: "You are entitled = to put his deposit against your advance?" ' Mr. Murray: "Surely." i The Cheirlnan: "If you get six ‘ and one-half per cent for whet: you lend him and he gets two and

lends you, it is pretty good busi-j ness?" , ‘

Mr. Murray: “We differentiate! in those ircumstances." I

am getting at. We have heard that the bank rate is very rigid. D0 you discriminate in this Island?"

Mr. Murray: “Yes; it depends on the class of borrower snd how he takes care of his paper."

The Chairman: "Suppose you had one of these trustworthy farmers; whet would you charge him?"

Mr. Murray: "We would be very glad to loan him at six per cent if he had a nest-egg with us." The Chairman»: "Wouldn't you give him better than that?"