M
\
.   -:>~:ss*2..i"‘.t\.ii.-.s-is-1 1   »
ETOWN Guanplily
-...ii A l
i
PAGE THREE
NOVEMBER 13. 1933 . ~
  I'
CENTRAL Glillllllll
This column In leurvol hi’ Glliil
,v-,,,,,¢y news of local Interest ‘lui al-
vrnlnlng of a nwsy nature an N
-pneried at 4 eeutl a word strlofe
,gp-uble in advance.
ST. PAUUB TEA and sale on
rhursday, 16th. Gifts, fine fllllwl.
mitted article, candy and refresh-
ment tables. 3053
,rr uoivm-Mrs. J. Arthur Lewis
,,411 receive on Wednesday, Nov.
isthfromdtodatthshcmsof
her mother, Mrs. B- Ray Holman,
pg Brighton ROM. 2681
Dlt. J. D. REDDlN'S Charlotte-
town office will beclosed from the
iath to the istn. :soo
BRING Tl-IE CHILDREN-Bt.
muy; Thursday aftemcon for their
rpeelal attractions. 2651
cxinurrloiv or rlimrmos
by Mrs. Gass, 10'l Queen Bt., Mon-
day and Tuesday aftetrnoon. 2669
B! SUB! T0 HAVE HIGH 'IIA
at st. Paul’s Thursday. Delicious
i-oust chicken, ham, tongue and
hot scalloped potatoes will be
rcrrcd. 3353
DINNER TENDERED “MERRY
n|lNSTRELS"-At the conclusion
of l-lallowe‘en tea. last Thurs-
day evening the Holy Name Social
Coiiunittce tendeiv.\‘ a. dinner ln
the .Holy Name Club to ths "Merry
Mlnstrels" cast. 'llhe catering was
attended to by the ladies of the
st. Charles Auxiliary who prepar-
ed and served the “big feed" that
was much enjoyed by all. When all
satisfied their appetites Mr. Ern-
est McCai'ey, chairman ol’ the So-
ciul Committee, treated the boys to
cigars and cigarettes, after which
Mr. P. B. McTague eloquently ad-
dromed those present in words of
gratitude and encouragement. This
was followed by short speeches by
R.+~\'. E. 0'!-lanley. S. F. Doyle,
M. J. MoQus.id, Wm. Morgan, Alf
Doucette, Wm, Trainer and Clar-
ence Howatt, all of whom express-
rd themselves, as being most pleas-
ed with the success of the Minstrel
Show and with the many pleasant
outings with the show during the
past summer and autumn. Before
dispersing, Mr- McTague on behalf
nf those present, extended a vote
of thanks to the ladies of the St.
Charles Auxiliary to which the
President. Mrs. W, J. Maclntyre,
replied stating that it was s real
plensiire for them to have theop-
poi-tuniiy of showing their appre-
ciation in a. tangible manner of
the work the Holy Name Society
has done since its inception a little
more than a year ago.
ransorrnas si*
Mr. Albert Roop. of the Bank of
.M<.>l\troal. has been transferred to
Moncton and leaves for his new
position on Friday. ‘
Dr. Seaman and Mrs. Seaman are
leiiving this_,moming for Montreal.
They will be the guests of Dr. and
Mrs. David MacKenzie for g fgw
weeks.
Friends of Mr, stewart; yvu,
third year student at 'Prince of
“"‘1‘~‘-= C°ll€s'2 wg# regret to hear
that he has been oblged to under-
‘U all °P€ratlcn for cppendleitls.
ll” is in the Prince Edward ls-
liind Hospital, where hs is resting
conifoitabl .
Y
r .- »_-_-_
BIRTHS
     '--i-~“~===
N1)ERb--At the P. E. Island
llvsiiltiii on November iotn to Mr.
and Mrs. Elmer Saunders, City, a
daughter.
ARMSTRONG-At the P. E. Island
Hospital. November l0th, to Mr. and
MVS- G€0l”Ee Armstrong. Union Road
Il duugliter. .
ll_0LMAN-At the Z l. Island Hos-
liitnl on November 12th to Mr. and
;\ii~s. Robert Holman, city, a daugh-
(‘l'.
DEATHS
lin/loLitylin`£hTrf`Eity`,`rfi.
1933. Sergeant Peter Brad‘ey~ Fun-
eral .frcm his lste residence i4
D°“3'*35 55-' Tuesday morning at
8-46. to the ciiuoii of the Most
Holy Redeemer. thence to the E. C.
Cemetery.
@_.___
 D. MacLean
UNDEBTAKEB
EHBIAUII I
c|‘*!'|°tteto1rn and
North Wiltshire |
Phone |49
l-- ____-
or. fl. il. Garson
cmuomaorou.
‘Hires Year Palmer Graduate
IM Prince St. Phone 101!
Home Cslls llade.
  Banking Commission A
(continued from me in whloh such' on institution asm.;
1,, mt,,,.;,,,,¢,m ,md ,memmoml “UU all tho expectations that tho
Dublic mind might attach to it, A
'ML in is “amd mn me need central bank could not cure all the
for international monetary co-oper- e
t
t
m°D°\~l\’Y °°'°D¢ratlon are also dealt
IUDB il “ment and constant, par Mt' be 5 5°“’°° °f “numued °l'°¢|l
tlflllll-Fly 111 View of the importance mr “U b°"°W°’5 °“ “ll °°°°-5105!?
that external financial inter rela indeed “S °P°Wll°l15 ml8ht as of-
gmmhgps mv, wumed in me mt ten be restrictive as expansive.
decade. The report goes on to say
1-mf, 1-gh, ptecln degree to which services would, we believe. be very
he level of economic activity in the
by concerted international monetary
lotion. may be a matter.of opinion,
port
consi ,
world as a whole may be influenced 1°’ me Present “l1d€‘V¢l° ii and
but that si common direction in structure; it would provide a suit-
ab
DIODSW-fy policy may have an im
ant influence in avoiding eco- °f B 113501151 P°ll¢y in regard to
cmic excesses or in stimulating re the extemal value of the currency;
n ._
vival is beyond dispute. “The go. it
ith many difficulties, its effects m
operation of Central Banks is beset skilled financial advice for the D9.
W .
are limited or distorted by many cial govemment; and, finally, it
D o
on monetary influences; but ii we
' w
wish to continue that mutual inter- could maintain relations with sim.
change of goods and services which liar institutions in other countries.
in the past has stimulated the eco-
wh _
nomic life ofall parts of the world, pg,-g_ 1,, Canada with Wmeh to
we ought to use all possible means m
of bringing order into the realm of
conomic ills of Canada; it would
W
"On the other hand, its posltlvs
derable' it would substitute
deemed over |. specified pmgd pg 8
years.
itcd to five Percent or six percent .
cumulative,
THE CHARLOTT
i i ~ .
6. The dividend should be lim- th
b
Pro
We therefore recommend that
e Dominion Government, prefer-
ly with the cooperation of the
vlncisl Govemments, should
 ‘$351 m'°vl‘l°“ 1°’ dividend forthwith institute a special invest-
° P’°Vl°l°1\ l°r l'°°°fv°S igotion into the whole problem or
the remainder of the profits should
the provision of short and inter-
Ko tn the government. mediate rural credits with a view
'l. The bank should be the bank- to
er of the Dominion Government
the preparation of an adequate
""1 might 515° by l8'f¢¢U\¢llt bs- mission to parliament."
come the banker of provincial gov-
The report also deals with' various
ernments. miscellaneous questions relating to
8. A minimum deposit equal to, 1
existing banking practice. Regard-
D2
anomalous system a more rational
and unified control over the credit
say. five per cent of. its deposit li-
abilities in Canada should be main-
le instrument for the execution
would be increasingly a source of
inlon and possibly for the provin-
uld provide a central body which
ich find at present no counter
aintain contact."
ng the statutory maximum interest
rate of seven' percent provided in
the Bank Act, the report states that
xtlrdthzybzxh °°'“m°’°m bwk all charges made in excess of this
' rate are illegitimate, although “the
il. The bank should take over b
the issue and management of the
Public debt of the Dominion Gov- h
anks appear to have taken the
view that if ii. client agrees _to a
igher rate than seven percent and
eminent (and possibly also of thei actually pays "_ 5° N tg render the
Provincial Governments)
yment irreccverable, the transac-
, ' ' P5
` tion is legitimate."
Bmk's Operation
which tho bank should bo iiuoweo. F
to conduct. should be: ` mbse
su ction still subsists, that the their strong rinancm, position' can
fa) To buy and sell gold;
tb) To buy and sell silver;
In support of the retention of the
10_ The principal opemuons provision, it has been argued that
h
e purpose which parliament had
view in originally enacting the
should not make loans in
Dissents:
international relations. In the mon-
etary sphere the genn of such order to
is to be found in the inter-relations .bank Ml. Beudry mmm wma
of Central Banks working to har- th
monlze' national policy with the D
needs of the international situat-I
ion." C
before the respective legislatures. st
Slwh balllfs are eminently suited to full approval of on the provinces
bs the instruments of imperial mon- before the venture is undertaken.
etary co-operation.
“M-“°° 5°* l“*"d°‘l“°‘° in addition to the reasons given
ortuno because of the existing ec-
onomic difficulties in Canada; be-
ause it is difficult to conceive that
Attention is drawn to tho fact, such it bank would be free from
that in south Africa. and Australia political influence: and because
Central Banks have become an in- world monetary and financial pol-
dispensible element in the financial ieies are in such a state of flux
machinery and that legislation for that Canada should proceed cau-
the creation of such institutions in -tiously and await developments be-
India and New Zealand is presently fore founding such a bank. I-le also
the central bank proposal because,
In dissenting from the proposal
establish immediately a central
at the time is at present inop-
icsses the necessity of gaining the
Sir Thomas White dissents from
. by Mr. Loman, he believes that
Th°'Fm““°° 5”' a°°°‘jdm5 "° th” such a bank would be "an impedi-
inaiority of the commissioners, does mem to the government' in bm
not supply adequate central banking trying penoch when direct unfeg
facilities. The powers of this act te
are entrusted to the Treasury re
Bmud "which is in effect 3 °°mm:t` establishuient would be sufficiently
to t tn fi oil ii-
thus directly in poutiouinoncs." It  ffm; cofmtxa; ';mf;°';c_
too of the Cabinet and they are
is pointed out that tihere are pro- 0
eminent advantages to the state in e
eutrusting the special and highly
technical functions of a Central S
Bank to a body “not subject to the H
violssituaos or pouueoi iiro." °’
in concluding that, as between an
administrative board," which was
recommended by the Canadian following qunnfymg paragraph to"
is note of dissent:
Bankers” Association as c first step, h
"and a Central Bank, the latter al-
ternative is clearly preferable.” ln-
sofar as a. board attempted to over- tion of the sdvisobllity of the es-
come the special difficulties with tnblishmcnt
which it would be faced. “lt wvllld cunfuio. iles with the government
an
ma
im
require powers and an organization
so ssentially similar to those of a
C¢I\ll'¢l 35111! is W make ll Ilaifllflll relating to the promotion of intra-
to inquire why a Central Bank
should not from the outset have which may mam-muy mfluemo
that determination of which the
an
been established."
"So for from the time being in- m
opportune, we are of the opinion
that _there are cogent reasons for its
early establishment." The incon-
vertibility of the Canadian dollar
would moon that “tho Brink would
be spared at the outset the risks
with which it might be faced if it
began its operations with a legal ob-
ligation to ensure convertibility at a
time when gradually accumulated
economic forces might already have
weakened the strength of the cur-
rency . . . We are unable to see in
what respects such an institution
could effect any material disturb-
ance" in the existing financial sys-
tem.
A Decisive Influence
The commissioners admit that in
the absence of a highly developed
money market the control of a
Central Bank in Canada over the
financial system could not be as
sensitive as that exercised, for in-
stance, by the Bank of England.
They hold, however, that the fin-
ancial system and economic life of
Canada are already sufficiently well
developed to make the instruments
of the discount rate, the purchase
and sale oi' securities and operations
in the foreign exchange market of
sufficient importance in the hands
of a well-managed Central Bank to
give it a decisive influence on the
credit situation in Canada.
On the question ol cost, it is poin- |
ted out out that an organization
adapted in its structure md size tc
the present Canadian sys m, need
be neither large nor expensive.
Experience, skill and integrity are
required in the management of a
Central Bank, but the commission-
ers "have no reason to suppose from
their discussions with leaders in
Canadian finance and industry that
these qualities are lacking in Can-
ada. On the contrary, they are con-
vinced that there are resources of
intelligence combined with experi-
gpso md public spirit fully adequ-
ate to ensure the successful manage-
ment of s Central Bank."
The majority of the Commission
summarises its position sa follows:
"We should perhaps sound 0. note
ll .
xistlng banking system ci’ Canada
upplemented by the provisions of
ie finance act" affords an effi-
__ iey to the government of the day
The ma-Wrny has “° h°5lt°u°“ 'which must, in the last analysis.
be responsible for the policy.
‘ goto right of note issue; the com-
---__._..._..._.g¢g “ming uwthadesm tolmereislbuikswnumoiuobore-
red governmental action is manl-
stly required," that its immediate
cmic recovery' -and that "the
ent instrument of financial pol-
Siri Thomas, however, adds the
"The determination of the ques-
of e. central bank for
d Parliament of Canada. 'I’here
y be considerations of policy
perial and international _trade
embers of our commission have
d can have no immediate know-
ledge, We are not legislators. We
make our recommendations and set
out the reasons therefor upon the
evidence adduced before us and
having regard to our individual
views of existing conditions in the
hope that our report may be oi’ as-
sistance to the 80V€1‘l'im9llif arid
parllnnicnt in dealing with thc
many 'important and p@l‘Dl€7<lllB
questions which have formed the
subject of our deliberations as com-
misslonersf’
Constitution of a central bank:
In an appendix to the report
there are suggestions as to the
main features of thc constitution
of a central bunk in Canada. These
81'!!!
l. The bank should have a head
office and should be allowed to es-
tablish branches, to act as note
depots, etc., and to' take over the
offices of the assistant receivers
general.
2. The capital should be $5,000,-
000, offered for public subscription;
ull shareholders to b`c British sub-
jects resident in Canada.
a. 'rho bunk should be managed
by a board composed of a Bovernor.
deputy govenior, assistant deputy
governor and six to eishli dll'¢¢t'°"~
The govcmors should be men of
usted banking experience and the
directors men of diversified occu-
pations; none of the latter should
be bunkers or bank directors and
no mcmbpl- of thc board should be
ia. member of the Dominion Parlia-
nm-,L 0,- nny provincial legislature,
or a civil servant-
Prnposed Constitution
The first governor, deputy gov-
ernors and clirctors should be ap-
pointed by the Governor General
in Colli1cii.‘ The directors should
retire in rotation. Future appoint-
ments of thc govemor and deputy
overnors should be subject to the
B
epprovul oi the Governor General
in Council.
4_ Tha bank should have the
during any one year, or to a pro-
volving such risks as to warrant the
(c) T° buy 'md sen f°"°13'“ °"' charging of more than seven per
change; C
(di To buy and sell 90 days' (or
ent.; that higher rates than seven
or cent constitute a. burden too
13° d“YS`) Prime bank °\‘ Wmmef- lieiiigr for agricultural activities to
cm bins? bear: that although competition ex-
(e) To buy and sell a. limited
amount of six months' agricultur-
al bllis; |
(fi To buy and sell short term
(up to twelve months) domestic
Dominion and Provincial Govern-l
ment securities;
tg) To buy and sell s limited
amount of long temi Dominion
and provincial securities;
(hi To buy and sell short term
securities of the United Kingdom,
British Dominions, the United
States and France;
(i) To buy and sell a limited
amount of long term British and
United States government secur-
ities;
tj) To grant advances on any!
of the foregoing (or any other
readily marketable securit'es);
(ki To accept deposits without
interest;
(1) To discount promissory notes V
suitably secured of banks up to say _°
15 days' currency. c
_ m
U' The bank smuld be pmhlb' ing only two and a half dollars on
rn
ited from:
ta) Engaging in trade; E
(b) °
Making unsecured loans,
Paying interest on deposits;
(d) Allowing the renewal of
bills; '
(e) Advancing to the Dominion
Government in excess of say 33 1-3
per cent of the income expected
(ci
vinciai government in excess of
say 25 per cent of yearly income,
in both .cases the repayment oi
varioiis banks it is not manifest in
the rates of interest demanded from
boi~i'ou‘ii~ig customers. particularly
~oiri those engaged in agricultural
piirsuits and that in consequence
piirliainent. was justified in enacting
a iiiaximuin rate of interest."
“On the other hand, in support of
lie repeal of the provision, it has
D
lsts iii the services extended by the
fi
tuiicts in which if regard be had
to llic iisk and to the cost of pic
viding ciedit, a charge ln excess of
seven percent is warranted: that
l
t _ _
been argued that there are circum-
s'  ‘ ,
t
ic enforcement of a rigid maximum
loan rote of seven percent would so
rest riet business as to necessitate the
closing of a large number of small
branches, especially in newly-settled i
districts, and thus deprive many
comniunities of banikiiig services
except 'at the expense and con-
enienee of long journeys; that a
barge of, say. one percent in ex-
ess of seven percent is a small
utter to the customer, represent-
loan of five hundred dollars for
months while to the banks it
ay make cumulatively the differ-
ence between being able to carry
on st branch in a particular district
or closing it dovm: that in 1854 all
usury statues were repialed in
Great Britain and the principal of
restricting rates of interest aban-
doned, as being ineffective and ln-
expedient in the public interest;
that if the banks were unable to
lend. atqraies over .seven .peishlentn
advances to be C0mP1€f£ by the wheresuch charges were justifiable
end of the first quarter after thc
close of the fiscal year.
12, 'I’li§'b'ank shouldwoncentratc'
the gold holdings of the country.
13. The bank should maintain n
proportion of 25 percent ln gold
and foreign exchange against its
outstanding note issue and sight
liabilities.
To some of these suggestions
Mr. Beaudry Loman and Sir Thom-
as White take exception. They urge
particularly that the 25.percent re-
serve of the central bank should
all be in the form of gold. Hon.
J. E. Brownlee is opposed to pri-
vate ownership `of the bank shares
and of the attendant voting rights.
He recommends that the capital be
subscribed by the government and
that all directors and executive of-
ficers be appointed by the same
authority, The latter suggestion
has the agreement of Bit Thomas
White.
ltural Credit
In regard tc rural credit. the
Commission agrees that the need for
some new organization “is a real
one" . . . “evidence was adduced
both by individual farmers and by
representatives of farm organiza-
tions t.o show that as a result of this
declining revenue the maintenance
andoperattng costa of farms can-
not be inet, farm debts have con-
siderably increased, taxes are un-
paid, farm equipment has seriously
deteriorated, and a large percentage
of farmers are unable to obtain new
credit to meet the operating costs
incidental to putting in and liar-
vesttng the crop.
"Ilhis evidence was confirmed by
representatives of the banks, partie-
ularly in Regina, where it was a-
greed that a large proportion of
farmers could not carry on their
operations without some form of
credit, that the credit could not be
supplied by the banks and that it
serious problem therefore existed
which had to be met if agriculture
was to be revived; The indebted-
ness of many farmers appears to be
such that evon s substantial rise of
sgriculttuml prices would not be suf-
ficient to warrant the extension of
s new credit through ordinary eoiii-
mercial channels."
"The material placed before us on
l-ml lllllkct in the course of nur
enquiry is not sufficient to enable
us to make a specific recommendi-
smuuitiiopruuoronn vnuiiio
in view of the risk, many borrowers
owing to the banks' inability to
uccommoditc them 'would be driven
to money~lcnd/ers not under the
some restriction; that to deprive
borrowers, who are willing to pay
more than seven -percent where
such cliarges are justifjalic, of the
opportunity of obtaining loans
from the banks would restrict their
freedom and often prevent them
from engaging in profitable enter-
prises."
Four of the coinmissioncrs, after
careful consideration of these
arguments, ieecmmznd that the
statutory maximum should be
abolished. lVLr- Brownlee dissents
from this on the ground that the
statutory maximum sti`l serves a.
useful purpose and adequate reas-
ons for its repeal have not been
adduced. They agree, however,
that if the maximum is retained
the section of the bank act should
be made clear and "rt penalty for
contraveriticn should be imposed-”
Period Of Loans
Regarding the dlscrepzmcy be-
tween the periods of loans. which
run usually for three or four
months, and farmers' require-
ments, which are-for credit of from
six to twelve months, the com-
mission recommends that “the
banks would be well advised in
the case of satisfactory customers
to endeavor to meet their wishes
and convenience in this matter."
Collections
Regarding charges for cpzrating
accounts and coiecting cheques.
the commssfcn iecogiiizcd that the
costs of these services to the banks
justify same charge, but recom-
mends thc Canadian Banks to_
"consider wlictlier it would not be
in their interests and in the in-
tciests of the country to extend
general par privileges nnd recoup
the consequent expenses by exten-
s‘on of the cllstom of making
phm-g¢g by ugzeement for carrying
active accoiints and by l‘<’5il‘lCt-l0I\
nf the use ns cliequeing accounts
or saving riep0‘llS_ upon which ln-
tcrsst is paid-"
Spread ln Interest '
Regarding the spread between
the rate., changed to the bank;
“C11 HH Oflanlzation might take and the rates charged by the banks
to provincial governments munici-
pallties and school boards, the rg.
port points out that banks only
draw a small portion of their fluids
from this soiuce. The great ma-
jority of' their liabilities are the
deposits of the public. The costs
of banking operations require s
spread between the rates paid by
and comprehensive scheme for sub- the bank on d'pfsits and the rates
charged by them on loans. In his
memorandum at the end of the re-
P°l'¢. however, l-lon. J. E. Brown-
lee urges that interest rates on de-
posits and loans alike should be
reduced. The evidence, he also
says, shows ciearly that higher
rates prevail on government and
municipal loans in the westem
provinces than elsewhere, and this
_is unjustifiable.
Investment Business
The commissioners do not re-
commend that the banks should
withdraw from the investment
business. They refer to the velur ble
assistance which the banks, with
their widespread branches and
rend'r _in the flztaticii and distri-
bution of Dominion, Provincial and
mtuiicipal seeiuities. “There seems
to us no justification for legislative
interference with the practice
which ensures keen competition
and ciosc tendering."
But "while there is no doubt of
the banks' right to deal in securit-
ies we could not. fail tc be im-
prcssfd by evidence cf abuses. It
may be true that the volume of in-
dllot ial or other securities sponsor-
ed and distrubuted by the banks
may have been small in compar-
i=;on with that of the governmental
and inun'c'pal issues sold by them,
but wi, nsvertheless, slroligly llrge
ii]i1.li the Canadian banks ilio ad-
vlsability of refraining from deal-
ing in, or distrubuting for their
own account, any but the highest
class securities available' in the
country, and iiiorc particularly
those issued by govcinincnts, mun-
icipalities ahd ct-hfi' public or
semi-pubic bodies."
Section 88
Regarding section 88 of the
Bank Act, the ieport says:
"The se:t‘on is anornrfous inas-
much as it contravenes the general
principle of law that a borrower
cannot pledge articles which he
retains in his own possession. This
principle affords a safeguard to
creditors and is of importance in a.
trading community. We recognize
that the section was introduced to
meet the conditions of a develop-
ing country lacking accuinmula-
tions of working capital and we are
not satisfied that its utility is
spsht, although the time may come
when the advantage of retaining it
'may well be questioned( We do not
advise the repeal or the sf.-eiion
but we do not thirk tliui it should
be further enlarg~d." ,
,
Dirac tora tes
In considering the alleged sub'
ordlnaton of eastern and westcm
interests to those of the central
urea, the report rcc mniends that
"the shareholders of tho Canadian
banks should, in their own interest,
consider the advisabiiiiy of prov-
idlng not only a fair but a gener-
ous proporton of directors from
the eastern and western sections of
‘the country and oi further extend-
ing their local committees for the
purpose of sllaying any regional
fee`ing of discrimination."
Considering the matter of bank
elfrectorates, the repoit also states
“it would seem unwise to :cstrict
membership in bank dire:-iorates tc
those 'who are not cliiectors of oth-
ef cp;-pg;-at1o:is," for this would
preclude the tiaiiks from obtaining
as directors men of affairs active-
ly engaged in business enterprise
and with wide knowledge of com-
mfreial and financial conditions.
“1t must be left to the sense of
propriety of directors not to place
themselves in a pesition where
their interests may conflict with
their duty on which may justifi-
ably attract ‘unfavourable com-
ment.”
The report suggests that any
banks whose by-larws at present
permit directors to vote or be pres-
ent sit meetings of their boards
when credits to themselves, or any
fi;-n-ig or eonpcratlons of which they
are partners or directors, are un-
der consideration should introduce
0, by-law foxfoidding the practlcc.
i
Bank Profits
Regarding. bank profits, the re-
port 'points out that the average
net profit available for dividends
over the past decade was 6.36 per
cent of the shareliolders' invest-
ment, and that, siniiliirly calculat-
ed, the dividends pad amounted
to 5.93 per cent. ln considering
whether these rates oi profit arc
reasonable, ri-:ccuiit must. be taken
of the earnings upon other types
of investment, of the double Izu-
bility which attaches to bank slznr-
el and of the desirability that mon-
ey should be a'.'cilc.blc from tml
to time for bank caipllal.
ng additional ltotutory protection
need he accorded to insurance
agents other than that already pro-
vided in the bank not and provin-
cial legtslation. They recommend
that the legal restrictions indirect-
ly imposed by the bank act upon
the deposits of married women in
the province of Q/udaec be rescind-
ed.
The terms of reference of the
Commission required them “not
merely to examne the banking sys-
tem of Canada and its operation
but`a',so to investigate the working
of the .finance a/:t and other re-
lated statutes, to consider the ad-
visability of establishing a central
banking institut.on, in study the
entire monetary system of Canada,
particularly in relation to com-
modity prioe movements: and inter-
national exchange fluctuations, to
consider whether the monetary sys-
tem of Canada may be so modified
and developed as to facliiaie Ln-
tra-imperial and international oo-
operation in policies designed to
promote the ie-rival of tra/sie. the
:increase and stability of employ-
ment and the raising of the level
of oommodty prices, and gmt-rally
to make such recomniendaticms as
we may deem proper and revising
or supplementing existng ieg;s1a.-
tion or for the adoption of other
measures calculated to promote
' a 1
Ogpé./9 Actually
'C' 1, KILLS
El. au. ran/is
'O ‘°`~‘-" /\ -LICE and
40000 l\||1'rrH on your
FOXER or PET]
Tlifre In no substitute for
l‘l l.\‘I£.¥-because It Is the only
flea powder fully gnu-n||t¢¢¢| M
.\( ’l`l'.\l,l.\' |i|LIi l|eill_ lite
.intl miie- on Foxes and gli
ni lmr I ii r-lwrsrlng gn lmiqgl
-“""°°\'"- ll Druterln gg-'Inge
inniirdlnii- re-lnivnliilinn-some.
:`l;'|';l’ "0 00|" nulirido don as
KEROL- `
'I he l‘ElU'E("l‘ DlSl.\‘I"EC’l'AN1,'
Another Unouer Product,
i)rdrr from your l’ux Bu|-|p|y
lillulf. DHI: or_6snsr»l Store,
if uniblnle in oiiiiiin ihrre-write
tin diro¢t_
Cnniuliun Distributors;
.ANADIAN C0-OPERATIVE
.VOOL GROWERS, LIMITED.
|l|C.~\D» 0|`l"l('lE: TORONTO
~i.\'rnri|o_
llmnehela Weston, 0nt__ 1,5.
Jmxlillr, (|||r,, Ileglnls, §m¢k_
nvnnx Nuiuunns or
4 sucmtrrx Pnrczs
The Lfivestors‘ index of industrial
coiiimon stocks was 89.2 for the
week ending November 2 compared
ivrtii 861 for the previous week.
Domestic utility common 39.4 com-
of Canada."
ln regard to these terms, the re-
‘Wiithin the latitude of so wide
a reference it might no doubt be
open to us to attempt to investi-
gate every aspect of the political,
social and oconome life of Canada.
We have taken a more moderate
view of the duty eiiiriistecl io ils
and hlive coiisidergcl it rather to
be our task to t~iil.ei‘ upon the
f;elci of these large topics only ili-
soiar zis they affect and are af-
Puliiical Aspects
"Such questions no doubt have
their pol tical aspect but they need
for their solution light. not heat.
It is obviously well that such a
time as this the adequacy of the
financial mechanism of any coun-
try to the now demands' inade up-
on it should be examined in order
to ascertain whether the cxsiing
mcclianisnl is working well ci* could
be made to work better, not only
under existing conditions but un-
der those likely to prevail with the
return of normality. The vvorld will
not rc;|iin io the ‘status quo ante.”
Wllcli ;ii~c:ipei'lt_v icturiis, li. will rc-
turn to a world chaiiged in many
important i-cspccits. We have in _gee
wlietlter in the particular sphere of
our iiiqiti-5.' Criiiada has the best.
equipment to deal with those new
conditions, liaving Ngard to all
their economic ;`ii1plications.”
The report, consists of :iii intro-
duction, n brief history of the
growtli of Cziiizicliun financial in-
stitutions nnd a valuable summary
of the rvoi~ki.ng of these inst tutions,
in particular of the operations of
tho chartered banks. There than
follows a elubpter which sets forth
the general economic and financial
problems of Canada which are in-
evitably associatcd with the de-
rponclencc of the country upon world
markets and the bnlziiicc , of
international payments. lt sing-
the economic and financial welfare'
port says: i
gssis the inadequacy of the
cents.
oertions for the price of mo, strictly
payable i.r| advance.
__ __1_`_0 Let
HOUSE T0 LET - APPLY 20
u§§‘8';l,§‘- ___ .__. _ . 2""
STORE T0 LET - 144 GREAT
George Street. Apply 146. 2570.
.'I'oi’§AiT_`3'§ i1'uk‘TT¥€iiiitE*i't';s"u`i
and Ewa. Amos Rodd, Milton.
i  . _.___ ..___..26.‘;‘~
Male Help Wanted
RELIABLE “AN T0 TAKE CARE
store route, Distribute and coll(-rl.
New product. Protected territory.
Earn excellent weekly iiicoiiic.
Borland Nut Co.. St. Paul, Nilill.
N-731.
Miscellaneous
iiow`ro our A' tiovaiisbibvivlii
Job. Free Booklet The M. C. C.
Ltd.. 'I`oi'onto 110' 542-
i-lvtlvnrrigirorib ;"niNiir§ii<`§in-
img pny We start 501| The
Canadian Kindergarten lrstittltc
_T2¥9i‘9_i1".." __ ..  _"_§‘.3;
Female Help Wanted
WOMAN WANTED T0 Sl-IW FOR
its at home. Srrviiig macliiiics
necessary. No selling. Ontario
sdvll\°¢auD4l»¢\lil||\°M1°\s|l‘ The ¢cmmiseicuerssoa|idu:that~l puppy gmpmy, mpg, ug,
pared with 39.1, common of com-
panies abroad 64.9 compared with
62.9 and for all three groups 64.!
compared with 62.7. _
existing financial machinery par-
ticularly that of the Financial
Act, to cope with the problems.
The chapter entitled "The Exist.
ing Canadian financial system and
thc- 0:-'taibllsliiii<»n»t oi a Central
Bank" is the moot lmportaiit cf the
roport. ll. states the general illne-
tions of ccntml banks. describes the
part which they play in modern
[apron by me more rm.-,rific subjwt financial systems and outlines the
of our study, namely, the baiikirigil
‘ fziccrl and the place which would
iroblems which would have to be
imve to be occupied hy a central
bank in Canada. It refers briefly to
the usefulness of central banks in
other British Dominions. Chapters on
agricultural credit and on miscel-
laneous problems of banldng prac-
tice follow. The concluding recom.
mezidatioiis occupy only a. page and
they are followed by the memor.
nnda and addenda of various com-
missloncis and by fifteen appendices
mostly containing statistical mater-
ial regarding the operations of the
chartered banks.
;1zi' 
NOTICE
All interested foxmen and
others of the 4th District of
Prince County are requested
to attend a meeting in the
rink at Borden on Monday
evening. Nov. 13th, at 8
o’clock to complete arrange-
ments for the fox exhibition
being held on ,November 21st.
2665
il. 0. U. F.
District mt-¢‘t’ng will be held h
Orltlfellnws Hall, Charlottetown
lilnndny. Nov. I3. 1933. Sessions ni
2 :ind 8 p.m. Deputy Grand Mnsfel
Brother Robison. Motu-ion, will be
Present at l~vl~ning session, All 0dd»
follows wclcnmc.
____ :evo
___...::l;:_-_;__; .v _..r..___-_'_ ;r:--r'*~. ;';':f:~_.-._-fu;-._~~::;Tl
5*OO~¥§+*'f*°§O-fO&O9v9'O'OO~OOQ 0-0 W* 
» Advertising Rates-Payable in Advance
Central Guardian locals, de. pci- word; Western and
Eastern locals, 2c._ per ward; Announcements and Coming
Events, 20. Der Word; Cluneilied, 24:, per ward; In Memo;-|35
Notices, 70c per inch: Lists of Floral and Spiritual 0B’es‘~
lugs, Cards, etc., dc. per name; Letters of Condnlence, ’l0c.
per inch; Notices of Thanks and Appreciation, loc. per inch
0|' 40 Der word. 0|-her rates on appllcatitms.
Minimum Charge for any adveriiseincnt twenty - five
%¢44-4-¢o»++¢n4- -oooooooooorooaeo-vo-ooo-oo-0-0000-oc-0440)
RATE:-Ze per word, three In-I
For Salt:
l°°l____;.__`_’______.. ;'__;s..‘_".
FOB SALE - AllfT'I`lUN FOBTY-
Five. Bridge and Whist Score
Cards. Guardian Central Joi:
Printcry Nov. l-tf.
-._ ->-___.:“._. .:_._'_;._;;~,l*-___L '*
GRA\'l‘22\'5TElN APPLIES 75c PER
bushel. Also M'tc!ntosli Apples.
F, S. Rccvcs, Southpoii. 
cnnuosiw sUi'1'i\nLr: Fon
lining outhouses. etc., le por
sheet. Guardian Office. tf.
-_ f -Y-'4"_1:’*1: T.. Y  i-‘Z
1-'on s,-lu: on 'ro m:N'r-on
sirublv rrisiiiciicc, 10 Grafton St
Iiiiiiicd:atc occupation. Apply
1»’alin~~i' & Flirnicr. 2592
FOR. SAL!-I-MALE AND FEMALF
i pups from lnrgc litters, over 100
l to pick fi-om. Some pair silvcrs.
G. Claiiclc Smith, East Royalty.
2800
FOR SALE - AUCTION FORTY-
Pive, Bridge and Whist Score
Canis. Guardian Central Joh
Priiitery. Nov. l-tf.
I-‘OR SALE - 50 ACRES LAND IN
good culliviitloii. shore frontage.
3 miles to City limits, 1 mile by
' ire in \\'i:\ll‘l`. Apply "J," Guard-
ian. 2579.
51' __'____‘i°_”._"_”.-_"1: _ . TT ; 
,.__.___..__.les1S.i._. 
LOST-(l0liD WRIST \VA'l`CH AT
i tli Foriiin. Finder please apply
li.?Mncl.ean, P. E l.-land Hospi-
il tel. UI
.
l
i
- _ ;@»
_-.».~.<. .~ -,
}@i`?¢’, .-
if
.}_,,:_ .

‘t
~.:_.,.`,
i
t
I
i
»
i
l
1
1
-fin ',
...,, e
7
5,4
If-'f
..'~4
. gl
_ 1',-‘
1;:
tt"
F.
i
\ ." -\
.e -.wa
f
-.-
I

if
-'17,
'iv
it
PQ
H
i
;;’f\, L-T'T'>
2.?
..
_.
is
Y.
iff -
lf 
_lt >
531.;
.i_
-'tr
'.~r
l'r. ‘.
it
“li L
if' =’
ti
_ if-§§§:;-&i&rii;u;»_st
. ,,
.
1
i V
'ti
,..
.Q-`-.._!. j
3.;
if
it
it
5'.
5. .
as ‘I
. t.,‘.~
\
Q.
 i
f,~',».
1-.
'-la
.~,_» _
tr- `f
ri 1
1 .-
r
f
l‘ .
v
1) `
4.,
cu
st
,_
H1
ns
on
lcl
i
fl( i
.ef
ill
lc-
.lb
me
".o\
0* 1
za
D
. ».
o
., . ._ _ W.  vW___ 
i