ay.

4

..gmer Liberal member. of Saskat-

TPO POH HEE RO HORE EH OHO HS SSeS L Eee

Ter eee >

2 ter wen ee

NERVES TO MATCH BRIDGE

_ Ray Santana of San Fran- 1 ison ts one of the 4 elite > painters_svho scramble daily + 746 feet above the rip tides of

.San_Francisco-Bay_to -protect_ + the famous . Golden Gate

__— ‘ .

‘ground (RIGHT)

line.

: N. Viet Nam Quarantine

* WASHINGTON (AP) = US

RS

Johnson Urged To Apply _-

Bridge with Ks coat of Inter- * national Orange paint. Here he is atap one of the two tow- ers. The other is in the back- sithouetted against the San Francisco sky-_ | (AP Wirephote)

“in any radical -or extremist

|

iRepublicans have urged Presi- organization.’’ While leaders in- *

«dent Johnson. ft» apmly sisted this includes the ‘against North Viet Nam the Birch Scciety. no

eident John F. Kennedy used resolution.

‘against Cuba in the 1962 mis- Turning to foreign affairs the “the! co-- maximum use of American con- 3 t al air. and sea power | in closed” session, unanimously against significant military tar-

‘eile crisis. . » The Republican policy ordinatine committee; meeting ventional air

Republicans advocated

‘avproved a statement assailing gets’’ in North Viet Nam. avhat it called the: inadequacy

‘ing the Southeast Asia war.

« The “.: member- committer @iso uiced Republican members ‘to: reject_ membership on North Viet Nam”

: Former MLA

publicans are not

Dies In Sask. 5 a (OP) Wit.

Hanoi, the capital. - Ham Carlton Woods, 74, a for. . or

schewan "legislature, died _ here not to carry military

“Sunday ® : ete y gis nn Vie . ; + Mr Woods wak elected to the Ode actos =

Aegislature in 1948. representing \). cheaid: ast: te +president of the Saskatchewan Nant ‘Rural Municipalities Associa. < 114’ ‘tion from 1945 to 1947. ;

‘Economic ‘Outlook — ‘ Encouraging

* TORONTO (CP)—The econo- | anic outinok for

Namara has_ indicated

United States

John : orzanization kind of quarantine the late pres- was named specifically in the

“Since it appears that the ma- tof Johnson's leadership in fight- jor portion of North Vietnamese Military supplies arrive by sea, our objective should be to im: party: pose a Kennedy-type quarantine

Senate Republican Leader \Everett M. Dirksen of Illinois told a press conference. the -Re- advocating the bombing of Haiphong, North Viet. Nam's chief port, or of

The quarantine should begin with a‘ warning to all nations supplies

Viet : ; uncondi- sKinistino constituency,” and WAS tiona) surrender of North Viet. | the Republican statement |-’ adding there is ;growing - _ danger ‘that the United States ff is hecoming involved in an end-

- less Korean-type jungle war.’ House Minority Leader Gerald

R. Ford of Michigan said De- lfence Secretary Robert S. Me- -the will have 200,000 men in South Viet Nam by the’ end of this year and the total eventually may exceed 300,000, Ford said the Republicans be- 1998 remains lieve that with greater use of

‘encouraging. despite mounting ‘air and sea power the commit-

pressures on costs and” prices.

ood Canadian a hens Bank--of Commerce sai readay, | ~. He. told the company’s annual | COUNCIL HAS Zneeting that attention will have |. to be paid to. these - pressres | ““f we are to retain the advan Jages gained. in four consecte | tive years -of impressive: “These pressures aré showing ‘up in: higher prices for services, shortages of skilled manpower, | Jengthening delivery dates for | certain types of materials and |

TORONTO (CP) Safety League: Christmas plants,

small children,

money market. *.

. “Coste of production are. creeping wp. with labor costs Lper unit of otput rinning aout | athree<per cent higher than a} year ago.” } - At the meeting, shareholders | -voted on 12 spectal resoitions Presented hy Hugh J. Bruce, a Toronto lawver. Mr. Bruce was nominated for the board of die |

plants fully.

plant—the a. fire hazard.

rectors but withdrew con) to get acquainted with chil. grounds he could not meet dren. . shatehelding- requirements, . Don't hang the pet in a » He said his resolutions =. 9&, Christmas stocking on Christ

defeated.were intended to give mas Eve. Christma

on the hank's aperations. | scare a baby animal, *« Chairman -N.. J, McKinnon:

mistletoe and holly berries are noi on- | ous an® could ‘prove lethal to

The most ‘important holiday Christmas tree—is

Planning to give your chil dren a pet for Christmas? The pet should be brought home: 4 few days before Chrisimas to give the animal a chance

: } is @xcit- Shareholders more information’ ing for: children, but it may

ment of ground, troops. may be President William M. Currie of much lower than now indicated

SAFETY NOTE «

Christ. | mas notes from the Ontario |

| Leaves from poinsettias and | equipment and tightness in. the | berries from dip*fenbachia

: ate dangerous -— and cause the mouth to swell pain

paid several of them would in.

wolve releasing confidential cus. “>Re Ria mem ti mea ieee

Imported Sweaters

tomer informationy while others

Sere criticized on grounds they avere concenred with the Bank |. act, due to come up for revi. from England fon at. the ‘text seasion of Par and Seotiand ament. 2 c%

<* As reported earlier, net profit

fore oe in the fiscal @ BOTANY |

year d Oct. 31, *ompared

grith . $91,402,602 in 1964. @ MOHAIRS

SEXPECTS MORE CHANGES © BULKIES

* PETERBOROUGH, Ont. (CP) i Vaticne Chabon ‘te the (0 SHETLAND ws of fasting and abstinence

free Drediet ed Monde © $10.95 to $35.00

: | uv ' "

Roman Catholie Webster, coll

returned

smenical ore a- trend yeetablished a years ago. ewhen fasting: regulations during |

a tt aA

wl ile 2] i # F

—j

“This has been a

year for the Canadian banking

system”, said William M. Currie, President, addressing the 99th » Annual Meeting of the Canadian Imperial Bank of Commerce.

PRESIDENT’S ADDRESS This has been another good year for the Canadian

economy. ~ The strong growth trend to which we returned in 1961 has been

maintained despite some initial concern as to its continuation for

another year, and every region of the country has participated in }

¢

full measure. . Momentum within the economy itself has had a great deal to ‘do with this excellent performance as indicated by the sharp increase in capital investment, the continuing rise in output of the manufacturing industries and the high level of retail sales. We have had a bumper crop of wheat and markets are assured for virtually the entire harvest of about 700 million bushels. Of importiaiice also has heen the fact that economic conditions in our »principal markets abroad turned out to be more favourable than

, had heen anticipated so that demand for our exports continued to be strong. The United States enjoyed another impressive increase _

mm output; Britain with international help weathered two serious financial crises, and growth rates picked up in mos} countries 0}

: continental Europe and in Japan. -

Developments within Canada

On the domestic scene, o'r Gross National Product for the year as-a whole is expected to exceed $51 billion. This would represent an increase over last year of some nine per cent in terms of current dollars and six per cent in terms of volume. Employ-

ment has continued to risé strongly, allowing for the usual seas ~~

sonal fluctuations: total employment in October was over the seven million mark, the year-over-year increase being approxi- mately 290,000. In October the margin of unemployment was estimated at 2.4 per cent of the labour force.

The personal sector of the economy which accounts for roughly two-thirds of the Gross National Product has been buoyant throughout the year. Rising personal incomes and the continuing increase in the use of constifner credit have been reflected in the demand for goods and services. Notably, sales of new automo- biles in 1965 are expected to reach about 700,000 units, a striking advance from the 440,000 units sold in 1961. ;

The new wave of accelerated capita! investment continues. In 1965, business investment in machinery and equipment and non-

residential construction within the range of $7.5 billion will be .

15 to 20 per cent higher than in 1964 and plans already announced suggest there may be a further increase next year. The expansion in capacity financed by this investment covers a broad range of

activity from the resotirce-based industries to many types of —

secondary manufacturing and some of the plants will produce products which are either new in Canada or were produced pre- viously on a limited scale. The 1965 estimate for total outlays of $2.8 billion in social capital projects also represents a sharp increase, over 20 per cent higher than last year. The investment in housing, amounting to approximately $2.3 billion, will be nearly 15- per cent above last year although the number_of starts will show only a modest increase over the 1964 record of 166,000 starts.

Capital investment on this scale creates strong demands ‘for resources.. The flow of materials and equipment for the pro- gramme has been reasonably well maintained but there are warnings which suggest that shortages. of engineering skills and, skilled labour, in particular, may prevent the completion of the full programme planned for this year.

Turning to the government sector, both current and. capital expenditures continue to increase with total outlays for goods and services by the threé levels of government estimated to exceed $9 billion this year. Tax revenues and other forms of government collections are considerably higher because of the high level of economic activity. At the federal level, the administrative budget should be close to balance and in fact may show a small surplus.

international Trade.

Looking abroad, our exports of merchandise, exclusive of wheat, were up about seven per cent through the first nine months of the year but the contraction in wheat shipments which followed

completion of the deliveries to Russia under the 1963-1964 con- «

tract brought the overall increase in merchandise exports down to about 1.5 per cent. However, following the Jatest contracts with

Russia and. China, shipments of wheat are again on the advance |

And total merchandise exports for 1965 are expected to show an increase of about five pet cent over the. 1964 total. of $8.3 billion. It is encouraging to see-the continuing penetration of Canadian manufactured goods into foreign markets but this trend will have to he maintained in the years to come if the Canadian economy is to continue to support a high level of imports.

The rate at which we import persists as one of our most difficult and fundamental economic problems. This year our imports have risen at a faster rate than our exports with imports of merchan- dise for the first nine months of the year up 12 per cent over the corresponding period in 1964. The list of major increases in imports runs all the way from fabricated materials, machinery and equipment to a broad range of consumer goods, reflecting the acceleration in the pace of activity in manufacturing, the rise in capital investment and the high level of consumer demand. Of special note is the expansion in trade in automobiles and parts

- between Canada and the United States resulting from the recent

agreement ON conditional free trade in motor vehicles and Original equipment parts. Comparing the first six months of this year with the same period in 1964, we find that our exports of automotive products to the United States increased from $37 million to $76 million while our imports of the same categories of pe from the United States increased from $387 -million to 70 million. At the same time, our: exports of automotive products to overseas countries increased by $45 million.

Balance of Payments

During this year a g00d deal of attention has been focused on the steps taken to bring about a sustained reduction in the overall deficit in the balance of payments of the. United States. In February the Interest Equalization Tax, applicable since July 1963 to most transactions in longer-term foreign securities by United States citizens, was extended to apply to commercial bank loans, with ‘maturities of one year or more, advanced to foreign borrowers in developed countries. In addition, all commercial banks doing business in the United States were requested to te in a voluntary. programme to cut back their lending abroad and business corporations were enlisted in'a national campaign to limit their direct foreign investments, their deposits in foreign banks and their holdings of other foreign financial assets, Measures, designed primarily as a means of limiting the mounting outflow of dollars to Western Europe, have been reasonably ive in the short run but it is too soon yet to evaluate their longer-run effects on domestic and foreign business. Because of the increasingly integrated, world environment in which we live, there have also been repercussions in countries outside Western Europe. Canada has been recognized as meriting special consideration in the application of the’ United States balance of payments measures because the capital markets of the two countries are so Closely interconnected and because exports of United States capital to Canada are normally required to finance a substantial Proportion of the annual Canadian current account deficit with the United States. For this reason, the Interest Equalization Tax has not heen applied so far to new issues of Canadian securities. In return for this exemption, it was understood between the two countries that our official holdings of gold and United ‘States dollars would not be permitted.to rise appreciably above their July 1963 level while the Interest Equalization Tax re- mained in effect. However, any undertaking to maintain a ceiling

‘

on official reserves has the effect of the Canadian eases rate Snuee more cua i ne of a States, res some extent bility of Canadian monetary policy. "Otherwise we would probably have seen a somewhat stronger rise in interest rates before the 6th December increases in the United States Federal Reserve rediscount rate and the Creston en ee Hosen have been rather more chatac- teristic of a period vity when pressures on capacity, materials and labour are ing within the économy and the deficit in the current account of our balance of payments is higher. It is clear from an analysis ef the full range of transactions between’ Canada and the United States that Canada has made a substantial contribution to the improvement in the United States’ balance of payments positiqn, Traditionally, the value of Cana- dian imports of goods and servites from United States has exceeded the value of Canadian exports to that country and in recent years the margin in favour of the United States has in- creased. In 1963 total current payments by Canada to the United States for merchandise imports and all other current account payments amounted to over $6.5 billion. This exceeded the value of current receipts from the United States by $1.2 billion. The

. Margin in favour of the United States increased in 1964 to over

$1.6 billion and there has been a further increase ip 1965. Trade with Canada in goods and services has thus beep an important factor in increasing the surplus in the account of the United States balance of payments and reducing that country’s overall deficit... : 5 fee Stated in the simplest terms, the Unifed States dollars required by Canada to cover our current account deficit with the United States have come from two main sources: the surplus earned in our current transactions with other countries and substantial net inflows of Short-term and long-term capital from the United States. This capital is either invested directly by United States citizens and corporations in Canada or borrowed by Canadians in United States financial markets. In 1965 the intake of long-

term capital from the United States continued without interrup- .

tion from the proceeds of new security issues marketed in the United States and from direct investment, there being no official directives or restrictions pertaining to the outflow in 1965 of such capital from the United States to Canada. The situation respecting- the supply of short-term capital, however, has undergone a marked change since February when United States citizens and corpora- tions, in response;to the President’s measures to improve the United States balance of payments, began to draw down United States dollar balances carried-in the Canadian’chartered- banks and to realize.on funds invested in the Canadian short-term’ money market. In the result, the net outflow of short-term capital from Canada to the United States during the first half of 1965 amounted to $339, million, largely offsetting the net inflow of long-term Capital from the United States which amounted to $367 million during the same period. It was therefore necessary to finance a. very large part of ‘Canada’s current account deficit with the United States, which

' amounted to over $1 billion difing the first half of this year, by .

employing substantial and unusual net inflows of short-term capital from overseas countries. Some $715 million in United “States dollars were obtained in thit way.

Operations of the Chartered Banks — This movement of short-term funds to meet obligations with

. the United States was accomplished primarily through the foreign

currency operations of the Canadian chartered banks. A substan- tial volume of United States funds became available through the banking system to help meet the current account deficit with the United States and to finance the sharp reduction in the deposits of United States residents in Canadian banks. In the latter con- nection, it is ‘significant that there has been very little net liquida- tion of assets held by the Canadian banks in the United States in order to t the withdrawal of these deposits. Otherwise, the improvement in the United States balance of payments from this

_ sOurce would have been illusory.‘ :

_ This has been a challenging year for the Canadian bai system at home. Requirements for credit to finance the high lev of business activity have shown steady increases while at the same time the supply of short-term funds normally available in the United States has been curtailed. In addition, the-inderstanding

-with the United States as to the ceiling on Canada’s official reserves has imposed certain limitations on’ the use of interest ©

rates in situations calling for restraint. In part the demand for funds to finance the higher level of gon-

~

sumer ex itures and capital investment has been met from the stronger flow of | income and from Canadian corporate earnings. There also been a comparatively substantial in- ~— crease in the Canadian supply amounting to about 13. per cent over the . The volume of credit outstanding is con- siderably higher than @ year ago, and credit facilities generally

’ are under more pressure. At the end of October the general loans

of the Canadian chartered banks were up about 17 per cent and exceeded $9.5 billion while the more liquid assets of the banks remained at about'the same level as they were a year ago. Thus, for the banking system as a whole, the ratio of more liquid assets to total Canadian dollar it liabilities has declined. In these terms, the liquidity ratio of the chartered banks was about 30.5

' per cent at the end of October this year compared with 33 per

cent a year earlier. » Outlook for Next Year

As we approach 1966 the favourable aspects of 1965 are still clearly in evidence on every hand.’ The rise in output has been- accomplished in an orderly way and the benefits are well spread out across the country. There are, however, signs of increasing Pressures which are chiefly associated with the extent of this comparatively long period of prosperity. These pressures are showing up in higher prices for services, shortages of skilled man-

power, lengthening delivery dates for certain types of materials -

and equipment, and tightness in the money market. Costs of Production are creeping up, with labour costs per unit of output running about three per cent higher than a year ago. While the outlook remains encouraging, we shall be well advised to give heed to the mountifig pressures on costs and prices if we are to retain the advantages gained in four consecutive. years of impressive growth. ~ ; ;

L. G. Greenwood, Chief General Manager, reviewed the balance sheet:

During the fiscal year ended October 31, 1965, the Bank’s total assets passed the $6,000,000,000 mark, reaching a new peak of $6,208,000,000. This represented an increase of $705,000,000, or 12.8%, over the total as at the preceding year-end.

The liquid position of the Bank remains strong. Quick assets at the year-end totalled $2,722,000,000, an increase of $162,-

‘

000,000 during the fiscal year, and were equal to 46% of the ©

Bank's total Habilities to the public. CANADIAN IMPERIAL

Over 1300 branches to serve you

\

BANK OF COMMERCE.

* + * EAE ERE EF TE PGR Oe a LO iad OE pit

“"s on

My’ — ill A NR a Se SB vs

ae Strong Growth Trend Maintained :

The balance of the Inereaue tn total aasets was centred in loans, which rose by $50,000,000 from $2,400,000, $2,930,000,000. This increase of 23° in total loans was distrib»

st

uted through ically all categories-of borrowers, both and pen and reflected the active pace of the economy throu out year,

Bank Premises at $73,000,000 showed a modest increase after - depreciation. salen, ihe ots tien wae & nat increase of 41 banking offices, including 7 new offices outside Canada. At the

~end there were 1,375 offices in all, of which 40 were located in countries other than Canada. * ‘

Total deposits rose by $667,000,000 to $5,637,000,000, an in- crease of 13.4°,. Of this increase, $175,000,000 occurred in per-. sonal savings deposits and there was also a gratifying increase in the numbers of savings bank depositors. In the category of Other Deposits; which includes other Canadian deposits payable after notice, Canadian demand deposits and other deposits in foreign currencies, an increase of $193,000,000 was recorded. Deposits by other banks, by the Government of Canada and by Canadian Provincial Governments rose by a total of $298,000,000.

Rest Account increased by $35,000,000 over the preceding year-end and now stands at $240,000,000. Further reference to this increase will be made later in this ;

Turning now to the Statement of Revenue, Expenses and Undivided Profits, it will be observed that this‘vear the Statement has been drawn up to show in some detail the principal categories of earnings and expenses, '

Total revenue was $287,706,839, an increase of over $32,000,- 000,:0r 12.6°,. From the breakdown of revenues shown on this statement, it will be seen that income from loans accounted for the largest proportion of this increase and this, of course, reflected the substantial rise in the total of advances during the past year.

As noted at the foot of the Statement of Revenue, Expenses and

~ Undivided Profits, the amounts of income from loans and secu- rities are stated after making transfers to inner reserves, that is, provisions for bad debts and /or other losses, out of which ful provision has been made for diminution in value of loans and investments.

Total expenses were $241 ,802,981, an increase of $29,000,000, Or 13.6%. Of this increase, approximately $21,000,000 was accounted for by higher interest costs reflecting both the substan- tial increase in total déposits during the past year and also the upward trend in rates of interest on certain categories of deposits. _ A further $5,300,000 of the increase was in salaries, pension fund and other personnel benefits.

Property Expenses and Other Operating Expenses increased by as “a veeggne Pps coy $1,000,000 respectively.

3 of Revenue totalled $45,900,000 and after deduction of income taxes in the amount of $22,600,000, there remained a balance of profits for the year of $23,30: 858, an increase of $1,901,256 over 1964. Earnings per share were $3.34 as compared

_-with $3.07 forthe previous year; :

Dividends paid were at the rate of $2.45 per share as com- - pared with $2.25 in 1964 and dividend payments totalled.

$17,071,600, an increase of $1,393,600 over last year. After deduction of dividends paid there rémained an amount so be carried forward of $6,232,258 to which has been added - $3,088,867 being the balance of Undivided Profits at the begin- ning of the year, and $28,000,000 transferred from inner reserves. This latter sum arises mainly from gains.on the investment over @

period of years of shareholders’ funds in the shares of other .

companies and does not derive from normal banking earnings; hence it should be regarded as non-recurrent. The. sum of $35,000,000 has been transferred to Rest Account aie a of Undivided Profits at the end of the year of The Statement of Rest Account shows a balance at the end of the year of $240,000,000, ‘ a os the er of the Bank’s 99th Annual State- ‘} ment. It remains to be'said, however, that the progress reported was made possible only by the combined efforts of all the men and women who are our personnel and who, at every level demonstrated qualities of ability, devotion to duty and pride;in the institution which augur for the future. To these people ¢ | Management extends congratula plishments during the past year and best wishes in their efforts to achieve high goals in the year that lies ahead, ; ;

ke “ANNUAL STATEMENT HIGHLIGHTS YEAR ENDED OCTOBER 31, 1968 assets Cash Resources (including items in transit). $ 715,829,781

Government and Other Securities... veoee 9,098,989 ,287 | Call Loans..........., fisted: lice a A, Total Quick Asset8......-............ Si vivaps 2, 722,585,963 Loans and Discounts... 0.20... 2.2... 2,980,678,488 are and Hypothecs -tnsured under the : '

N.H.A., 1954 : er 92,056,067 Customers’ Liability under Acceptances,

Guarantees and Letters of-Credit; as

DOF UG eos ea siss datcege cs cnsteveces 3 286,324,860 BANK PremiaeS.....ccsccccsssvccsscences bee 73,024,071 ONC ASRS. ic ciccesicirtians Cesvedees

| Bia i cheeks de skp buries soues hee 2S SS,

Total Assets i 405,418 LIABILITIES . DO PORE 55s 5 be 66 Fas cigs eadpe cascde sc cackes $5 637,417,563 Acceptances, Guarantees and Letters of

ROE@ONG, 5 £os Loses oes UF ea Se HERG vcs 238 324 ,860 OrnOF WiaDiNTOS: ow sees scree cess Piscean 20,661 870 Shareholders’ Equity: fy

Capital Paid Up... ..ccsc ce cccs 69,680,000

Rest Account. :.......... sss. 240,000, ;

Undivided Profits.........,... 2,021,125 312,001,125

Total Liabilities print ebeeeeeeeeeteeee eee $6,208 405.418

STATEMENT OF REVENUE, EXPENSES AND UNDIVIDED PROFITS YEAR ENDED OCTOBER 31, 1966

Revenue: Income from Loans* .................0.... $ 184,282,311 income from Securities*..........., ieecs 64,642,877 Other Operating Revénue.................. 38,781 651

TOE FAVGNUE SS 65555; ilivisinsitiocees 287, 706 639

Expenses: me. interest.on Deposits.......... ORV evey is 125,743,167 . Salaries, Pension Fund and éther Personnel OenOMS SFr i 73,382 ,263 _ Property Expenses, including Depreciation 22,974,260 Other Operating Expenses................. 19,703, TOU ExpOneee: ag. oicecees cscs cians. OH 981 Balance-of Revenue. .....>.. Sthicss+stvivws 45,903,858 Provision for Income Taxes..... Wis sos \ereeed 22.600,000 Balance of Profits for the year...,........... 23,303 DUVIGONGG eras ii ts 417,071 Amount carried fOérward..................... 6 Undivided Profits at beginning of year....... 3,068,867 Transter from inner Reserves}.......:...... 28,000,000 oa 37,304,128 Transferred to Rest Account.................. 35,000,000 Undivided Profits at end of year ........... g 2,301 128

*After making transfers to innér réserves'(i.e. provisions for bad debts and/or other losses) Out of which full provision has Been made for diminution in valué of loans and investments. tThis sum arises mainly from gains on the invéestmént over a period of years of shareholders’ funds in the shares of other companies and does not derive from normal Banking earnings;

_ hence it should be regarded a6 NOn-recurrent.

— STATEMENT OF REST ACCOUNT

Balance at beginning of year................ $ 206,000,000 Transferred from Undivided Profits. deboedess 35 Balance at end of year... 2... tbe e eens,

SERENE

YEAR ENDED OCTOBER 31, 1908 Beccaret

lg Aci hey

PEM,