.TG'uaI9tliaIt

T i i , "against-:1 I-I-I I-uu me D--'' . - pinning up .dIy nnrnhu It ll: Prince street. l, ”" sag. L". by tbs Thomson company Ltd. . M . W.. 'lbronto. Bl & 9 Iunlqodl Ullamfixngewglfgjowzr dl l '- -. r-gnnnl-uInIlcr.lIn A Ins: 5. if Ifemhel” Nuwmrer '4, g Publacl-I Aunt-.1: Member of The Cundlu Press

.. llembcr Audit Bureau of Circulation-

' I or-k offices It summerddo. Montana and Alberta! . A horlzed II Iecond Clnn full by the Post Ouics

f Department. 0tlIwI.

Iyr Curler Charlottetown, Summenlde 515.00 per sn-

Iug. Elsewhere in P.E.l. 08.00. Other Provinces Ind '. 11.6. Il2.o0 pa Innum.

-;l7The strangest memory is weaker than I the weakest ink."

FRIDAY, JAN. H. 1955

.,..,e Baseless Assumption

g Air Vice-Marshal Guthrie, Pre- sident of the Royal Canadian Air Fbrce Association, is reported to have told an audience in Sherbrooke, Que., that ”a war starting today

. would be over in seven hours." Am- plifying his statement the disting- uished airman went on to say: ”It is not necessary for the enemy to bomb the principal cities in a country to destroy that country. A few bombs strategically dropped would suffice to wipe out all form of life. Every- one would die from radio active par- licles."

With a few unimportant changes brought about by the development of atomic: power, this is the same thesis that was employed when both World Wars broke out, and. prob- ably, prior to every war in history. llitherto it has not been confirmed by the course of events; and there is not I shred of evidence that it is any more valid now than "it was

- forty years ago or more. It is, of ' 1 course, true that. theoretically,

bombs could be made capable of

H "wiping out all forms of life”. Act- . ually, competent authorities have l T , never hinted that such bombs are " " ' available at the present time; and, even if they were, it is inconceivable that either side would put them to use. For. despite all the current talk about the suicidal aspects of mod- ern. war. surely no government would ever start a war if they felt there was no possible chance of win- ning it: which, of course, there wouldnit be if it was known before- hand that "everyone would die from radio active particles.”

All this aside, how does the Vice-

Marshal or anyone else know for a

certainty that any be fought with atomic and lhy lio- gen weapons? Assuming that they are as potentially destructive as they are made out to be. what ad- vantage would theyf-zhavc for either side? (Unless, of course, one side could be sure of getting in a telling blow before the other side was able to retaliate-a most unlikely event.)

It is generally understood in the

Western world-Nlfn Dulles' occas-

ional enigmatic "statements. not- withstanding--that no Western na- tion will be the first to use a hydro- gen bomb: As for the Russians, there seems to be general agreement that they could hope to do better by sticking to conventional weapons in which. for the time being at any rate. they are said to have superior- lly. What advantage would it be for them to start throwing hydrogen bombs at the West. since there is not one chance in a million that

- n--any-on gag-,

......... .....-.-.

HlV'Rl'PS? It is. of course, possible that a war at this time would be over in seven hours. It might even be over in twenty minutes, with no one lcf' in the world to talk about it. Bi"- both history and the current state of international relations are against any such assumption. Far better to assume that, if warshould come. it will be a long and bittcronc. And safer, too: for the promise of short j vars is likely to encour- i ' ncy, never In aid to

table. Anniversary

.- he-Qconfegteration Fathers:

of the Young Men's ” -Association."in..Charlotte- " bettefitthan they knew . . "W3-ml" ' ' - - V I cofftury ago, lllt twelve, years after the move- ment had been launched modestly in 1'3IElEnd- The meeting wIs held on

t

by -lnmlnfy 7 I constitution had ,h9fl.dl"Iff.ed and approved, Ind a week later the first slate of officers .-.mr.ly. .. lneetlngs -of Mellglousv nature, 9100'! they included-discussion on A .0! general concernsna .53., movement had dsvetopca

fll3.lll'.8..ili.?!-E. J!

such action would take the VVcsl un-

Y.M.C.A. buildings on the continent. served its purpose for three-quaffefs of . century until the commodious premises on Prince Street were erected, the corner stone being laid by Lord Alexander, Governor Gen- eral of Canada. on August 19. 1949- This briefly is the story: but 3 VOL ume would be required to tell of the efforts put forth by public-spirited workers, of the difficulties over- come, the results achieved and the impact made upon the lives of thous- ands of our citizens, over the D851 Century. by this wonderful experi- ment in practical Christianity.

For the Century Banqllel 0" Tuesday evening next, during Na- tional Y.M.C.A. Week, the local or- ganization has obtained an out- standing speaker in the person Of 1).-, H, L. Keenleyslde, Director Gen- eral of Technical Assistance Ad- mini-'Iration of the United Nations. A nativc of Ontario. Dr. Keenleyside. holds many honorary degrees and has had a distinguished record in the diplomatic and government ser- xii-in in N28 he entered the Depart- mr-nt of External Afflalrs at Ottawa

and next year went to Tok.V0 85 Firsl .Rcr-rotary to open the first Canarlinn Mission to -lalian. FOUT

vc-ms later he received the rank of b0llllit)ll()l' and in June 1941 became Assistant Canadian Ambassador to Mexico. In January 1947 he was ap- pointed Dcputy Minister of the De- partrnonl of Mines and Resources. In March 1930 he led the Canadian delegation to the United Nations Scientific Conference on Conserva- tion and Utilization of Resources. Subsequently he w as appointed Chief of the United Nations Techni- cal Assistance Mission to Bolivia and in September, 1950, received his present important appointment. He has served as a member of numer- ous international councils and com- missions, and was the first chair- man of the Arctic Research Advis- ory Committee and of the Advisory Committee on Northern Develop- ment. He saw service with the C.F.A. and the 2nd Canadian Tank Battal- ion in the First World War, and has found time to write numerous art- icles and books on literary and inter- national subjects.

Dr. Keenleyside's subject on Tuesday evening will be "The Crisis We Face", and it should be one of ,,,great interest and importance. -. Among tho's'e"present will be direct descendants of the founders and early presidents of the Charlotte- town Y.M.C.A., as well as a large and representative number of other citizens.

EDITORAL NOTES

Following Secretary of State Dulles' "necessary art" speech the Manchester Guardian observed: "Mr. Dulles is no historian and not much of a diplomat." That's unusually strong language for a paper that is noted for exercising restraint at all times. No plainer evidence of Mr. Dulles' indiscretion could be forth- coming.

0 O I

Russians and Australians have not been on speaking terms since early last Spring when the Aus. trali-an Government granted political asylum to the Russian Embassy Secretary. Vladimir Petrov, who had exposed a Soviet spy ring. However. if the Russians want to compete in fhis year's Olympic games in Mel-

-lhnuarv 1 last. Paul's schoolroom; -

hournc, they may. Provided. of course. they promise not to smuggle in a few spies on the side.

A report from New Delhi savs that an abominable snowman is thought to have been killed near the Assam-China border. and scientists are on the way to make an investi- gation. Why can't they leave well enough alone? Himalayan tribes- men have claimed for years that ab- ominable snowmen existed, a n -1 now they have proof of it, provided the experts don't dcclarc otherwise Avvhich they are almost certain to

do. just to be cantankerous. O O I

Usually, hiding money under- ground is not considered a good eco- nomic practice. There are times. though. when it has its advantages; witness the case of the Edmonton policeman who, back in 1917, buried s21,000 because he was afraid the Govemment might confiscate it if it were left out in the open. The In. come Tax appeal board "has ruled that. since the money was buried be- fore the Canadian income Tax lIw came into effect. the Government lmnoclIlmonInypsrtoflt.DoIs this mean that I new fashion has

been established?

PUBLIC FORUM

This column is open to the discus- slun by correspondent: of quextlnnu If interest. The Guurdin does not Iocuuarlly endorse the opinion It oirnlpondcnu.

FAIlMERS' PREDICAMENT

Sir.-Ever since the crippling silver freeze I have noticed in your paper many statements and com- ments regarding lhe great incon- venience and loss to the people. 1 also noticed some criticism ul the Government declaring Prince County a disaster area. My busi- ness takes me all over the County and if this recent ice storm cannot be called a disaster I wouldn't know what to call it.

I live in a town but I travel from farm to farm and sleep in a different bed every night of the week. Much has been said about the loss and hardship caused the town people, and it is all too true. but as I see it there is no othci class of people who have lost so heavily and suffered more incon- venience thangthe farmers.

have suffered thousands of dollars loss in the woodlot alone. I find they are losing in many ways; milk production going down and loss of buttcrfat by not being able to use a milking machine that the cows have become ecustomed to.

The situation in the country is still very serious; no lights. power. telephone or laundry facilities, and roads that cannot be travelled by car. What a predicament when some member of the family gets seriously ill! I have had occasion to try to help save a valuable sick cow, when her owner could not even contact a vet, let alone get . him to the farm in time.

Now I am writing this just. to draw attention lo the farmc-rs' pre- dicament and if any assistance is forthcoming by way of Govern- ment aid surely the farmers should receive a generous share.

l am. Sir. etc. W. ll. BROWN 'l.0.P. lnsprctnr. Kenslngtnn.

Square Dancing ls Contagious

4National Geographic Bulletin)

"Vinegar Mel: and Cotton Eyed Joe sure makes a mess of the tin- sel-do."

some modern square dancers nay in truth "pill their hands vherc their feel should go." But ill have their hearts in their fun.

So contagious is their enthusia asm. that square (lntlcilul has spread to nearly every corner oi the nation and abroad to United

States government posts as fat away as Slngannrc. Whcrecvrr lhcrcls a collar a

flddlrr. and an open space. Ill.-rc'Il be a whirl of gals and dudes as gay as any frontier crowd that ever raided a barn early to practice in Chicago. a club of blind dancers win: their partners once a fort- night. E l s e w h e r e Amerlclns aquarc dance on horseback. on skates. in the water and in wheel- chairs.

As many as 15.000 people haw- dnm-ed in one Jamboree in Cali- fornia. Nearly 3,000 self-named tpllgrims" promenaded to flu-

'ourth national square dance con- vention in Oklahoma City carlici this year.

There they learned new step.- Blld Polished up old ones. Although the basic dInce hasn't changed. new music Ind patter hIvc enriched ll. Cowboy call: such as ”Rope you steer. brand your calf," have been modern- ized by ones such as ”alIemamIe loft and right to your loss, thr- Ilght is green so step on the gas "

songs and dance llllcs blend both old and new: "Flop-Esred Mule" "Ewe Turn,” "Angleworm Wiggle". "Dip Ind Dive." "Lonesome Pine Mixer." Powder Your Face With gsunshlne." Somebody Goff The most popular dance hi the last cm- venllon wls "Run Outta Names."

Square dancing the Cllickasba. Oklshonu Slur once edltorlalized better llIIn socialized for grhilmails us." it mended to rnlrrluos,

Ilcohollnn. relieved men- tlests Ind thus liven rise to

org

1' have been at farms where they '

sARL1wMgRNTG' APPE

OTTAWA REPORT

Ottaua. 'i'll.n'..- the way the money goes. as the old nursery rhyme says. But for our money today. we get much more than the rhymes ”half a pound of tuppenn. rice and half a pound of treaclc".

Full details of our national food bill. as just released by the Dunl- inlon Bureau of Statistics. show that catering to our inner man has become one of our largest indust- ries. Processed fouds and bever- ages accounted for exactly unc- fiftl by value of the output of all our factories.

in the latest year to be reviewed in statistical detail - i953 - this business was carried on in 8.129 plants. employing 176,649 persons. with an output wnrtli three and one half billion dollars. Nearly twelve per cent of this output was exported.

Naturally! enough, food was the largest single base by the aver- Ige Canadian. n 1953 as in every other Your. That statistical creat- ion. the avera'!r- Canadian, spcnt al 1051 exactly 3250 on food dur- ing that year - some of it unpro- cessed, -such as raw eggs bought, in the shell; some of it processed. such as canned tomato juice; some of it rady cooked and served, such as a hot dog or a full course meal.

This expenditure was approxi- mately double the sum he-or you or i -spent on transportation (lur- ing the year. Transportation in turn almost exactly matched the amount, say 5125. which the aver- age Canadian spent on clothes and personal furlllSlllllI.!S. This last phase. in the goliblcdcgook of slot- isticians. does not mean that the aye age Canadian wore a Chester- llftl in l953. It covers personal items other than clothes. such as a hairbrush. ' HEAT AND DRINK T00

By -: statistical an-idcnl not re- peated in other recent years. that average Canadian in l953 also spent approximately S125 on ltousinc. and 3125 on household operation. He could have afforded better housing if he had been able to resist the temptations of the demon rum. As a nation. we sprnt hialf as nutch on alcoholic bcvcrmzes as we spent on renting or owning our homes.

Of some 350 individual Fill!-f10l'lf'S of processed foods and beverages. the most costly was bottlrd am) canned beer. lotallim: s267.n0n.0m Then came. in this order hy dollnr

"nine. fresh beef, butler. brcnri.

The Way The Money Goes

By Patrick Nicholson

fresh pork, fresh milk. rye whiskey. cane sugar, pies, and roast coffee. Among our exports of these cute- ; ;orles. the best dollar earner was 3 .vheat flour. Second was fresh and dried fish, largely cod. Breathing odoriferously down Newfoundlaud's neck came rye whiskey. I close third. Then came British Colum- bia's canned salmon. After that world-famous sockeye came- the whole range of other exports with- out any one standing forth signi- ficantly.

Beverages soft and hard like- wise figured prominently among our imports of food. Green coffee, sugar, tea and Scotch whiskey - in that order - led the parade.

A survey of the industry of pro- cessing foods and bev ages shows that not only is it our fifth largest in value of production; it is also I fast-growing business. It has an even larger future ahead of it. for Canada is one of the world's great- est. producers of high quality new foods.

The food-processing industry to- : day gives probably nearly 250,000 well-paid jobs. It utilises 140,000 turbines. engines and other power unitsnwhlch together have I rated capacity of over one million horse power. Thus each human worker employed in this industry has forty robot workers behind him. While the workers in the big plants aver- age better than 33,000 per year in wanes. the robots cost a mere nine cents per week.

While excelling in quantitative achievement, the industry still has a long way to go qualitatively. which statistics cannot measure - except in tent): of our declining tourists trade. For Canada is be- coming known as the nation with the best beef cattle, yet the tomb- rsl steaks: with the best breed zzraiti. yet the most rubbery bread: with an unsalable surplus of cows cream. yet I universally-used stomach-turning substitute made of imported vegetable Ind fish oils.

Speaking of odd food facts brings to mind these two real Rlpleys: in the official list of manufactured funds and beverages. 350 in num- ber. sixly-second place by value of tiroductlnn is held by glycel-type Anti-freeze. Also gleaned from this statistical review is the eye-open- or that Canadians spent on liquor l in one year sufficient dollars to

fimmce nur famous Baby Bonn; . for twenty-eight months.

Medically ; Speaking

STRIKES OVER-40 GROUP Glaucoma. a most dangerous ye disease, usually can be halted ny early treatment.

There are nboutH,'l20.p()Q blind persons in this country. Of this number. one out of every eight is a victim of glaucoma. And once zlght is destroyed by glaucoma. it is gone for good.

Willi glaucoma. increased fluid pressure building up inside the rye slowly damages the nerves. Side vision usually goes first since the pressure strlkes.the fibers in the retins before damaging the retinal nerves which control the central vision.

Primnrily. glaucoma is a disease of the middle-am-ti and the elder- ly it is most apt to strike you if you Ire over 40.

now can you protect yourself from this disease? The best way

is to have your eyes eumited thoroughly It least oncce v two yenn if you Ire 40 or old .

CIDUDY VISION

While Icute galucnma usually strikes suddenly with slurp psln around the eyes and cloudy vb- ion. the slowly creeping chronic typo is much , more common.

(mode . some of the following oms: Frequent changes of uses;

ybmmife: "Don't take I

ii

I

lossofdlevilnblurrsdorfolu

vision; inability to adjust the eyes to darkened rooms such as theaters. rainbow-colored rings around lights.

Let me emphasize that these symptoms do not necessarily mesn you have glaucoma. Maybe the trouble in much less serious. But you should have I complete eye examination as quickly Is possible.

Don't wait until some of these vymptoms develop for tlIIt eye 'heck. Glaucoma does not Ilwsys give warning Iipnls.

Drugs or In operation can usu- wlly reduce the cyebnll pressure. Eye drops. if your doctor pre- scribes them. probsbly will luv: to be used for the remainder of your life.

Even after In opentlon or drug treatment. you're going to have to svoid emotional upsets-lhny might increase the fluid pressure-Ind You may luvs to llmil'tIlIvlIioI Ind movie viewing.

If you Ire I glaucoma victim, don't use belladonna. even if pre- scribed by your physlclsn. with- out first checking with your ocullst.

QUESTION AND ANIWII

Mrs. G.P.: My bIby hId I hit?! temperature Ind Ibont four months I30. What II the best way to bring down I (WI! In order to prevent recurrence of convuls- ions?

Answer: Of course. you dtould

DOG Anon-r -rows

Es wandered in one u-y night, A sorry-looking -dog. forlorn and

cold. no must have trsv "ed for. his V feet were sore And snowflakes gllstened from his 1

shluy cos .

But in he came. Ind finding each in turn.

He thrust I chilly nose inside our hsndl.

And. in that: simple gesture. won our hesrts.

Wlu : he remains. for we'll re-

member long

How he would welcome us. and

bring I shoe To show his Joyfulness on our re-

rn. But we were not the first, nor wul we be The hot to claim his favor, for one dIy 1 Spring fever fired his blood and he was off . To new adventures into that some- where. The same somewhere from which he came. ' -Helen Hill Young. in the Toronto Daily "far.

The Age i5iory

The Lord. lle it is that doth go before thee: He will be with thee. III will not fall thee. neither for- nke thee: fear not. neither be dis- maxed.

The United States birth rate of about 25 babies for every l.()l)() people compares with 15.6 in the United Kingdom.

About the only was you on not anythinzfornsangtbesadaysis to write oe. -London Press

If Mr Elnnhuwcr with his new "soil bank" can get U. S. wheat and other surpluscrop acreage back to normal proportions and keep it there. Canadians will cert- ainly be thankful. But they cannot be too hopeful. so long as Wash- ington contlnues to maintain artif- ically high domestic farm prlcel. a policy which encourages U. S. farmers to do their utmost to wreck the new Eisenhower plan. -Fin- anclal Post.

A record number of births in 1955 was accompanied by the lowest death rate yet experienced in Can- ada. giving evidence of a constantly improving health program. The improvement is no small factor in the country's continuing boom. pro- viding as it does a rapidly-incream ing population able to produce and consume goods. Additional efforts to improve the nationals health Ottawa Citizen

The curious hypothesis discussed by Charles Dickens in "Pickwick Papers" and by o'hcrs that two people can live as cheaply as one meets with no encouragement from the Dominion Bureau of Statistics in its latest bulletin on family food costs. in fact llle DBS doesn't. even t'ccogui7.e this roman- tic theory and only admits that. food costs per person in a family drop x-"wn the number of children in the family increase. Hence when a two- adult family will spend 59.18 week- ly per person on food. cost per p:-"son in a family of two adults and four children sinks to 35.10.

-Ottawa Journal

i ' r-Notes. By, The

It nut be to nu-cc Mll- lster Harris at he will dlIIp,...m the public I. he does not su.-:-ad in making some further tax .-e. ductions this year; Ind he will be falllng in his proper duty if be 114-.- not take the opportunity. Elven to him by the present Iuncspbc.-e of good times and prosperity, to c..;.-y much further the economies in government spending; that he be- gan last year. M ntreal Gazette

"The crow is I smart bird. but be is also very superstitious," says Mr. I-lub Dear of Wiunsbom, Louisi. sinus. Working on thIt superstition. Mr. Dear ' ' success in keep.

"melon patches. He uses I Very simple device. stakes are driven in the field and string is stretched from stake to stake. Mr. Dear says the crows look on the arrangement as some kind of trap and won't come near it. He has been using his string scarecrow since 1917. -Saint John Telegraph-Jounnl

Of all the social institutions that survive long past their usefulness. the most hideous is the cocktail party-even it it were ever proved that some service was once p.-. formed by this freakish pantom. lme. It was devised. in some cyn. 1081 moment. in order to enable unwilling hosts to "pay off" more guests than they could adequately accommodate or entertain. liar- lng no facilities to ply them with the beverages that I human being could consume. they were brusq. uely handed lethal mixtures of non. compatible ingredients. And the recognition of the cocktails dan. gerous potentialities is shown by the pitinble size of the glasses coli- taining this wltch's brew. -van. couver Herald

;Af'Il'lUCll Meeting Of Shareholders

The Royal Bank

James Muir warns against pace of consumer buying

and tightness of markets ' in commodities and labour

Canada can ill afford luxury of group or sectional

parochialism. Diverso

Iconomic interests present opportunities as well as problems in achieving national unity.

climates, cultures and

Some of the more pressing prob- lems con'rontlng Canada in 1956 were reviewed by James Muir, Chairman and President of The Royal Bank of Canada, in his an- nual address at the Annual Meeting of Shareholders held on Jan. 12 at Head Office. One of the more un- portant of these he felt was the new inflationary pressure built up dur- ing the boom which charactcrizrd I955. While admitting there may be some difference of opinion on the seriousness of the threat pos-

ed by the boom. he believed there ,

”are definite danger signs. not so much in prices as in the frantic pace of consumu buying. business expansion. and the general tight- ness of markets in both commodi- ties Ind labour.

No modern banker will deny 'the efficacy of wise central bank policy in curbing inflation." he said. "In- deed. experience shows that mone- tary policy is more effective atznlnst Inflation than against deflation. But there are dangers. As I have al- ready Wllited out. the policy may go too far. it may also be un- selectlve. curbing healthy as well Is unhealthy or excessive bank credit. In addition. certain types

. of credit. and these by no means

the least inflationary. lie almost entirely outside the chartered bank- lng system. I should like to nomi- nate two candidates and possibly three for the attention of those charged with devising and admi- nistering credit control on ll selec- tive basis: consumer credit: term loans by banks: and (with caution) mortgage credit.

rnostisms or cnrzmr

"Consumer credit. or 'buylng on tlme' is In essential part. of our modern economy. But, like all good things. it can be carried to extremes. For the individual. to live in constant heavy debt is to live in bondage; and the burden of debt usually the greatest for those who can afford it least: vlz.. those who need or Ire Itti-Icted by ion down psymantl offers. For the economy Is I whole, consumer cmdlt results in the production Ind ssle of durable goods la form of long-tenn investment by the con- sumer) without It the same time I corresponding Ici of saving. 'l'lnrenssdbenohIrmlsthls provided the consumer inn is it- Iolf flnsnced out of sIvlng- the consumer borrows In order to spread his own ssvin over time. But if I at me consumer ions is nIru.-ed through buk credit expansion we hIve In ex-

nsion not of short-term. half-

quldntlng credit but.I long-tum loIn id-buck only over I loll! purl , Ind I consequent expansion of the mood! mpplzi ,

"Term losns by to to corporr this Ind the purchase by bsnks If carpccts Icrinl issues In similar in effect in expansion of bunk-flnsncsd consumer credit. Ind may be more serious in that the repayment period may be long-

It. "Mortgage loss: by banks Ire I departure from traditional short- urm hInk ftnsnclu. bon -term lnvsstluont, this time in I . is financed without I correspond- ing Id of saving. As I device for IxpIIdln( home ownlult during I of rslndvoly slsck trade. the Imms but may vir-

foss. In with I return in normal with I re-

NEW "BUILT-IN STABILIZER" FOR FUTURE BUDGETS

"in all the excitement over the switch to deficit financing. said Mr. Muir, "one extremely important. decision in the realm of fiscal policy went almost un- noticed by the general public. This decision is all the more im- portant because, unless or until reversed. it will presumably deteminc the overall pattern of federal budgeting for years to come.

”lu the budget speech of April 5. i055. the Minister of Finance said:

'l propose to recommend to

the house a tax policy and I

tax structure that would pro-

duce a balanced budget under

conditions which represent a

high level of output and em-

ploymcnt.'

"Now a high level of output and employ......: is reflected in the figure that meaures the gross value of our national pro- duction over the year. The new tax policy and tax structure referred to by the Minister of Finance is geared to this gross national product in such a way that if in any year the product falls below I certain ideal level. there will be an automatic bud- get deficit. If the national pro- duct rises above thls level. there will be an automatic sur- plus. And the ideal level of gross national product is appar- ently dcflncd as the level that would have obtained bad em- ployment and the rate of growth of the economy been "normal" every year since the base year I953. It may be open to question whether this kind of built-in stabilizer will prove suf- ficiently strong to produce the desired effect. It may prove too passive to meet the crises that lie ahead. It may well be thnt the Iutomatlc principle was adopted as I device to ensure lhst fiscal policy would It least not make things worse: that it would at least he I neutral fuc- lor In the short run. Menn- wbile, monetary policy with its 2 r I I t l y superior flexibility could be relied upon to tsks care of short swings in busi- ness activity Ind employment. leaving longer run problems of e c o n o m lc development and growth to the necessarily slow- er Idjustmsnts through Innusl revisions of the budget."

of Canada

Total Deposits have now passed b3 billion mark

x. u. Sedgewick, General Man- ager. noted that not only had the assets of the Royal BInk reached the imposing total of 03.284.143.865, but that deposits had passed tbs 33 billion mark. I new high point in Canadian banking history. "Ten years ago our deposits were 31.888.- 757.074, approximately 61 per cent of todayls figure. whereas then out depositors numbered 1.555.359 as compared with 2.557.900 at the pre- sent tlme." The bank's liquid posi- tion, he noted, continued strong. total quick assets of 3l,9l0,7-19,57! .e..resentlng 61.24 per cent of the bank's liabilities to the public. "Our Rest Account hIs been in- creased to 3l08.000.000 which with paid-up Capital of 342,000,000 and the undivided profits balance of s9l8,000 odd menus that the bank now has at use Capital funds of close to :l51.000.000. This is I very strong position indeed."

Mr. Sedgewick noted that NHA Mortgage Loans. made by tbs Royal Bank. now total 8100.805.- 905 as compared with 822.612.3011 the year before. "Other current loans also have shown expnnslon in line with the higher general business activity and the total If Sl.l88.559,855 shows In lncrclse of more than 3l37.000.00t) in the twelve-month period under review We Ire now. in common with thu other banks. cooperating with the Government and the Blnk of Canada in carrying out I llcy o credlt restriction design to pre vent lnnatlonnry pressures. It l: important that the timing if any variation in such I policy should coincide accurately with changing conditions within the Iconomy."

Mr. Sedgewlck Ilso discussed the bank's extensive building Ind re- novation programme. in Iddition to alterations Ind impovemonts to existing premises, :9 new branches were opened in Canada in 1055 Ind 13 new buildings. for opening this year or later. an under construct- ion. Branches now tol.Il 851, If which 74 Ire Ibroad.

ROYAL BANK ABROAD

Elie bank will gs? occupy litew. In more comm mu mm M! in Rio de Jsnelro shortly Ind cou- Ildention is being van to further explnslon in the Irlbbeln ares. Since the bunk began opentlnns Ibrosd nearly 60 years :3 said Mr. semwlcx. the local ff had been encouraged to In to senior positions and this. he oil. had been I major factor in tho success of the bank's

There was, he IIld. Canadians in the bank's

did opportunities Royal Bank's forcln II-Inches Iny Csnadlnn nun: mun interest- ed in I satisfying Ind Iuecessfnl career In lnternntlonsl bInktntl- Mr. Sedgewlck pIId I high trlbuti to the bank's stuff. w now num-

dcr present monetary policy: and "control of consumer credit does not lie primlrily in the field of banking. WI: and post-war experi- ence have shown thst this can he

IlloI It the null level. with good will no co-opcruton between those who extend the credit Ind the cun- trol Iuthorities. There should be nothing. therefore. in these three vsrflties of Ixodlt over extension

that I ltuls comma-sass. rs- III bootlctsdoncunot cure."

CANADIANUNITY

hers well over 14.500. ' I In var! - plelssd indeed to no I unwind. vIrlIt.les -of credit over-expansion gummy or young man mllllsoon bocomsless serious dus Itnff Ind fool lhnt they sin- to Istunl ccusu Ind to the effect cm.-av. appomnauq mu". said of llclosmaw in him. llomsnr. . ' ng and constructions unet- Il would bI effected by uIsonIl factors; term loans by banks and I factsrln Ic nltluol will! the purchase of corporote securl- Ind well being. In-. Riff us were no longer pnctlcable un- development of I DIIII llllonll

most effectively hIndled by regul- mats

IHIII-Iooosounlcpouqwss

ln5t'te:i away from 'hls wst.er- C

l

, g