PAGE EIGHT 
     
    
   
   
    
     11w CHARLWEQQWALQIIARDLAN 
     
    
   
   
    
     Canada is’ lloming ThEgh n63»... Depression and Difficulties 
     
     Better Than Other Countries in Similar Economic Position 
     
    
   
   
    
     BANK OF MONTREAL ANNUAL MEETING 
     
    
   
   
    
       
     
    
   
   
    
       
     
    
   
   
    
     5“ 9111114," G°F1l°1L P11151191". ill-address to shareholders, reviews im- 
     
     portant developments in financial world-Takes view that there L; m; 
     
     need of a central bank in Canada-In dealing with Canadian banking 
     
     system points out that not a single depositor has hed to wait a rnorn_ 
     
     ent to get his money from s. Canadian bank during page ye"... 
     
     Stresses necessity for honest and efficient leadership in railway policy 
     
     inr the future, as this is country's moat serious 91-05mm 
     
    
   
   
    
     W. A. Bog, in submitting address oLJoint General Managers, 
     
    
   
   
    
     reviews pro- 
     
    
   
   
    
     gress made during past fiscal year-Bank has maintained traditional 
     
     liquid position-Points to difficulty of establishing money market in 
     
     (‘anadav-Only regular money market on continent is New York__ 
     
     Many considerations should strengthen confidence in (ianptlg, and its 
     
    
   
   
    
     future. 
     
    
   
   
    
     _._..___.->__.€. 
     
    
   
   
    
     The 115th Annual General Meet- 
     
     irg of the Shareholders of the Bang 
     
     of Montreal was held in the Board 
     
     Room at the Bank's Headquarters. 
     
    

    
     0n the motion of Mr. H. R. Drum- 
     
     mond, Sir Charles Gordon, G. B. E., 
     
     was requested to take the chair. 
     
    

    
     Major-General the lion. S. C. 
     
     Mewburn, C.M.G., moved, seconded 
     
     by Dr. George E. Armstrong, that. 
     
     lot-Col. G. L.. Ogilvic and Mr. G. 
     
     Rutherfurd Caverhill be appointed 
     
     m act as Scrutineers. and that Mr. 
     
     C. H. Cronyn be the Secretary of 
     
     the Meeting. This was carried un- 
     
     animously. 
     
    
   
   
    
     THE PRESIDENT'S ADDRESS 
     
    
   
   
    
     Sir Charles Gordon. President, in 
     
     addressing the shareholders, said in 
     
     part: 
     
    

    
     Gentlemcn- - 
     
    

    
     The report oi the business of your 
     
     Bunk for the year ended October 
     
     31st, which has just been read, will, 
     
     I trust. be deemed satisfactory, hav- 
     
     ing regard to the difficult conditions 
     
     wevailing throughout the eriod. 
     
    

    
     e have been confronted wi h de- 
     
     clining trade. dislocated foreign 
     
     exchange, lessened demand for 
     
     banking accommodation and low 
     
     rates of interest in the world's 
     
     monetary centres; yet we have man- 
     
     aged to eam fair profits, to preserve 
     
     I strong liquid position and to meet 
     
     the legitimate reguiremcnts of our 
     
     customers. 
     
    

    
     Before moving the adoption of the 
     
     report, I desire briefly to survey 
     
     conditions both hore and abroad. 
     
     The decennial revision of the Bank 
     
     Act, which precedes the renewal of 
     
     our bank charters, is not to be made 
     
     until the next session of Parliament. 
     
     Meantime, indeed for many months 
     
     past, discussion of the monetary 
     
     question has been rife. and in some 
     
     quarters there is advocac of a cen- 
     
     tral national bank after he pattern 
     
     of the Federal Reserve Bank in the 
     
     United States; of restriction of note 
     
     circulation to direct agencies of the 
     
     Dominion Government; and of the 
     
     introduction of inflationary meas- 
     
     ures by Government issues of irre- 
     
     deemuble Dominion notes. 
     
    

    
     Now, in the first‘ place, I submit. 
     
     there is no need of a. central bank 
     
     in Canada. For allpractical pur- 
     
     poses, such an agency already exists 
     
     in the Finance Act, under the pro- 
     
     visions of which the chartered 
     
     banks borrow at the Finance De- 
     
     p ment and obtain such amounts 
     
     o Dominion notes as may be rc- 
     
     quired. For these advances the 
     
     banks Day interest. This legislation 
     
     has been in operation eighteen years 
     
     and admirably ‘performs its purpose. 
     
    

    
     In the secon place, monopoly of 
     
     the note issues by the Government 
     
     would not increase by a. single dol- 
     
     lar the amount of currency in the 
     
     hands of the public, unless the notes 
     
    
   
   
    
     _ were made irredeemable and reck- 
     
    
   
   
    
     lessly emitted regardless of the se- 
     
     curity and solvency of the borrower. 
     
    

    
     The shore of financial history is 
     
     strewn with wrecks of ventures in 
     
     irredccmablo paper money. front the 
     
     time of the French Revolution in 
     
     the 18th century clown to the days 
     
     of the Great/War and subsequent 
     
     years. If there is one fact in finance 
     
     more firmly fixed than another it 
     
     is the certainty that the unres ct- 
     
     ed issue or paper currency culmin- 
     
     ates in disaster. I may point; out. 
     
     moreover, that we in Canada. do not 
     
     suffer from inadequate credit or 
     
     inadequate currency. Trade has con- 
     
     traced in volume and value to a 
     
     degree where much less currency 
     
     and credit are required for its con- 
     
    
   
   
    
     ' duct. Our banks welcome borrowers 
     
    
   
   
    
     to whom they can safely lend. and 
     
     as trustees oi depositors from whom 
     
     their loaning resources are derived, 
     
     bunks ought not to lend on any 
     
     other condition. 
     
    

    
     U on the subjects of a central 
     
     ban . the revision of the Bank Act 
     
     and also the tying up of the dollar 
     
     with the pound, much has been said 
     
     and written oi late. All these ques- 
     
     tlons are difficult for the lay mind 
     
     to grapple with, and it is not my 
     
     purpose to deal with them at this 
     
     time in detail. ' 
     
    

    
     So far as our banking system is 
     
     concerned, it is well to remember 
     
     that» not ‘l single depcsitor has had 
     
     to wait; for a moment to get his 
     
     monev from a Canadian bank during 
     
     the past year. while tens of thou- 
     
     sands of depositors in the United 
     
     States have had to wait. in line, onlv 
     
     to bc told finally that their bunk 
     
     lind closed its doors. This incl: is 
     
     nn argument that will appeal to 
     
     most people. 
     
    
   
   
    
     THE IMPERIAL ECONOMIC 
     
     CONFERENCE 
     
    
   
   
    
     The outstanding event of the year 
     
     has been the meeting at Ottawa of 
     
     the Imperial Economic Conference 
     
     made possible by the changed flsc 
     
     galley of the British Government. 
     
    

    
     y consent of the delegates, who 
     
    

    
     ame from the four comers of the 
     
     mpire, a new economic policy of 
     
     profound significance to the future 
     
     course of world trade was ado ted. 
     
     The agreements, by which the nit- 
     
     m Kingdom and the more important 
     
     units of the British Empire have 
     
     undertaken to trade on a basis of 
     
     mutual preference. open ::p to the 
     
     countries concerned trading vistas 
     
     of vast significance. and, as far as 
     
     Canada is concerned. it is impossible 
     
     not to believe that highly beneficial 
     
     results will accrue. Not only 
     
     Canada given a favoured place in 
     
     ihe markets oi the United Kingdom 
     
     or the more import mt oi her ri- 
     
     mary products, and not only oes 
     
     ihe secure frec entry into the Unit- 
     
     .» lngdom for a wide range of 
     
     manufactured roducts upon which 
     
     iubstantial dut es are levied against 
     
     ither countries, but these acvan- 
     
     ogcs. are scoured to us for a defin- 
     
     te period, long enough to tes the 
     
     vfilcacy of the agrement. In con- 
     
     lderation of these advantages. Can- 
     
     ida has given freer access to her 
     
     narkcts for an extensive range of 
     
     he products of the United Kin!- 
     
     ‘om both by enlarging the prefer- 
     
     nceaa bctwcru: these 06110111 911d 
     
     husc of forrign coun ries and by 
     
     rworlpq ("fle protection accorded 
     
     iauv of her own industries. Can- 
     
    
   
   
    
     adian matiuincturers 0:: this ac- 
     
     count have been called upon to 
     
     make substantial sacrifices, but I 
     
     think I can say that in every case 
     
     they nave done so in a spirit of loy- 
     
     alty and co-opcration, as their con- 
     
     tribution to the common cause. 
     
    

    
     There has been during the inst 
     
     three years a somewhat constant 
     
     decline it: Canada's external trade. 
     
     whether measured by volume or_b_v 
     
     value. In the twelve months ending 
     
     with October 31st lust. that trad" 
     
     amounted to $959,000,000 11111111155 
     
     32.584.000.000 in the corresponding 
     
     period in 1929, a decrease of about 
     
     60 per cent... but it. is iillOlTSilllg- 
     
     perhaps significant, to learn that 
     
     the ratio of decline has lessened ::: 
     
     recent months. Two features may bc 
     
     noted: Canada's commerce with 
     
     Great Britain is again riSlllF! H1111 
     
     our imports from the United Statcfi 
     
     have fallen oil’. Factors cttusingui 
     
     larger trade with Great Britain 
     
     are: tariff exclusion of Canada's 
     
     farm, forest and mine products 
     
     from the United States. and the 
     
     giving of tariff preferences to Em- 
     
     pirg products by Great Britain. Our 
     
     adverse balance has been converted 
     
     into a favourable one. In the twvivc 
     
     months to October 31st last, exports 
     
     of domestic products exccctlcd im- 
     
    

    
     orts by $43,013,000. while ill the 
     
     like period a year ago irr1l>°1"5 “"9 
     
     $42,095.000 in excess of exports, so 
     
     that the net; gain amounts w 
     
     $86,008,000. 
     
    
   
   
    
     CONDITIONS IN EUROPE 
     
    
   
   
    
     In re ard to conditions in Europe. 
     
    

    
     especialy as they affect time nut- 
     
     look for the recovery o_f internu- 
     
     tlonal trade, it may be said than the 
     
     Lausannc Agreement deslgurti to 
     
     reduce the burden 0f Yell-trillions. 
     
     the ratification of which is sublflcii 
     
     to a revision of war debts, has pro- 
     
     vided the flrst evidence oi practical 
     
     co-operstion between nations, and 
     
     the forthcoming World Efccnomic 
     
     Conference will, it is hoped. mark 
     
     a further advance in concerted 11C- 
     
     tion and succeed in evolving mons- 
     
     uros that will permit of 1i ircrr 
     
     movement of goods and money. 
     
     Greet Britain. since llcr cicpurlure 
     
     from the gold standard some fifteen 
     
     months ago, has reoovcrrci in largo 
     
     measure the confidence of ilio world. 
     
     and although for the time being the 
     
     ability of London to_ function as a 
     
     financial centre is limited bccmise 
     
     ‘of the existing, hindrances to the 
     
     free flow of credit,- there is assur- 
     
     ance that when these are overcome 
     
     the invaluable cxperince and mn- 
     
     chinery that Londoa,,czin oilcr will 
     
     again be availed of and will ploy 
     
     their part in l-he rcconstruciloi: of 
     
     the economic and financial fabric 
     
     of the world. _ 
     
    

    
     During the year Great Briton: has 
     
     balanced her udgct, has repaid the 
     
     credits obtained from thn United 
     
     States and France to support thr- 
     
     pound, and has effected a series oi‘ 
     
     conversion operations totalling the 
     
     vast sum of 122.500.000.000. 'l‘hcsn 
     
     conversions will produce a saving to 
     
     the Exchequer of 1230000000 per an. 
     
     num in interest, will make fnr n 
     
     lowering of interest on all borrow- 
     
     ings. and it may be will permit n. 
     
     lightening oi the burden of taxation 
     
     that: is bearing so heavily on thc 
     
     country. British Government secur- 
     
     ities now stand on a basis of about 
     
     3% per cent. 
     
    

    
     In connection with the decline of 
     
     the pound sterling, changes in the 
     
     cost of living, as measured by the 
     
     purchasing power of the pound, 
     
     have not been important. asihc dc- 
     
     clino in the values of commodities 
     
     and raw materials has kept pucc 
     
     with the decline in that purchasing 
     
     power. This. of course. cannot be ex- 
     
     pected to go on indefinitely. In the 
     
     meantime, however, there has been 
     
     no important aciynnce in the cost of 
     
     living in_ the United Kingdom. 
     
    
   
   
    
     CONDITIONS IN THE UNITED 
     
     STATES 
     
    
   
   
    
     In the United States. as a result 
     
     of the increasing severity of the 
     
     cie ression and the persistence of 
     
     pr ce declines, the number of com- 
     
     mcrclal failures reached the high- 
     
     est total on record. Liabilities in- 
     
     volved were also greater than in 
     
     any previous year . Particularly 
     
     sharp declines occurred in the iron 
     
     and steel industries, and thc out- 
     
     put of automobiles and rclalcrl lines 
     
     dropped to the lowest level of n 
     
     decndc. Agricultural iucnln» suf- 
     
     fered a sharp decline. owing to the 
     
     decrease in prices of farm products. 
     
     Evidence oi this is found in the fnct 
     
     that the average value pcr acre. of 
     
     the ten lending crops was less than 
     
     $0 in 1932, us compared with over 
     
     $13 in i980 and over $19 in 
     
     1929. The year was marked 
     
     by serious rims on banks, followed 
     
     by many bank suspensions. In rcc- 
     
     ent months remedial measures 
     
     adopted by the Government have 
     
     caused a sharp drop in such fail- 
     
     ures and reopenings of closed banks 
     
     during this period enunlled or ex- 
     
     ceeded the number oi suspensions. 
     
    

    
     Owing to doubt of the stnlvlllrv 
     
     of the American gold stnndnrd. 
     
     hcnvy withdrawals of foreign hal- 
     
     ances took plncc at one period, 
     
     causing an unprecedented dcmnnd 
     
     for gold: nll such demands wcrc 
     
     met, however. without weakening 
     
     the financial structure of the coun- 
     
     try, At the peak of the rlcmnnd in 
     
     June inst. the monclnrv gold hold- 
     
     ings of the United States were rc- 
     
     dttced "to l3.0l0.000.000. as against 
     
     average holdings of 84.464.000.000 in 
     
     1920, considered a normal post-war 
     
     year. Gold holdings are now back 
     
     to 04.200.100.000 and the flow con- 
     
     tinues inward. 
     
    

    
     It has been n. problem t.» cmplov 
     
     {irofltablv that portion of the Bank's 
     
     reserve carried in New York. as 
     
     money rates have been cxtrcmcly 
     
    
   
   
    
     l . 
     
     ow MANUFACTURE AND 
     
     AGRICULTURE. 
     
    
   
   
    
     In COmfiltln-Wiiih those of all other 
     
     countries manufacturing conditions 
     
     in Canadahave been fa:- from satis- 
     
     factory. Outstanding in this respect 
     
     hes been the situation in regard to 
     
    
   
   
    
     the pulp and paper industries which 
     
     have headed the industrial lists o! 
     
    
   
   
    
       
     
    
   
   
    
     l ublic debt which I 
     
     11g: mieotgiltais ‘included 51.044.000.- 
     
     000 borrowed by the Dominion Gov- 
     
     ernment and loaned to the Cflnfldim 
     
     National Railwa s, but I have not 
     
    
   
   
    
     the Dominion in wage and salary 
     
     distribution since 1022 and have 
     
     been the first in gross value of pro- 
     
     ducts since 1925. Canada's exports 
     
     of newsprint have for years been 
     
     second only to her exports oi wheat, 
     
     and it is unfortunate that over- 
     
     dcvelopmcnt oi productive ca aclty. 
     
     combined with sharp reduct on in 
     
     demand. has reduced the industry 
     
     to a non-profitable basis. Recent 
     
     price-cutting has added to these 
     
     disabilities and lms shown more 
     
     clearly than ever that there can be 
     
     no permanent bcttcrntent until 
     
     llll'35lll'€‘S for co-ordlnating produc- 
     
     tion are put into effect. Leaders 
     
     in the industry have been working 
     
     enrncstl and assiduously to this 
     
     end an are well advanced in the 
     
     intricate valuations and other com- 
     
     pllotlons neccssru-v as t1 bZlSlS upon 
     
     which to formulate plans for a, 
     
     practical solution. Other major in- 
     
    
   
   
    
     included that o 
     
     Dominion Government as 81111111111191‘ 
     
     for securities issued direct by the 
     
     Canadian National Railways which 
     
     amount to 9'10 millions of dollars. 
     
     upon which and other funded debt 
     
     of the Canadian Notional Railways, 
     
     totalling $306,000,000 interest of ap- 
     
     proximately $56.000,000 was paid in 
     
     i031, The Canadian National Rall- 
     
     ways are costing the people 35.00% 
     
     000 monthly in n 
     
    

    
     the Canadian National Railways in 
     
     private hands. and about the same 
     
     amount in interest on Dominion 
     
     debt representing advances to the 
     
     Canadian National Railways-w. to- 
     
     tai of $10,000,000 monthly. 
     
    
   
   
    
     er liability ‘of the 
     
    
   
   
    
     tercst on bonds of 
     
    
   
   
    
     Public ownership of more than 
     
    
   
   
    
     half the railway mileage 0f 011111111“ 
     
     has increased i118 011F119" 0! 
     
     taxation and complicated 
     
    

    
     finances. In view of this serious 
     
    
   
   
    
     enernl 
     
     cderal 
     
    
   
   
    
     zlustries have felt the depression state oi affairs. 1-116 301111111011 GOV‘ 
     
    
   
   
    
     ncufcly (luring the your. The lack 
     
    
   
   
    
     . , and Trans ortation 
     
     of cxpoit demand mid the low ebb gfitlllmixl‘): the sltuauwlll. 
     
     upon the report of this Commission. 
     
     and the presentation to Parliament 
     
     of a Bill drafted upon its recon:- 
     
     mendatlons, Parliament and 
     
     people of this country arc now giv- 
     
     ing serious study to the whole rail- 
     
    
   
   
    
     to whici: building construction has 
     
     fallen have brought the lumber in- 
     
     dustry practically to e. standstill. 
     
     In the milling field, producers oi’ 
     
     siltwr, ccpper. loud, zine illld as- 
     
     bestos have laboured under great 
     
     disadvantages owing to lo\v world 
     
    
   
   
    
     ‘ ernment appointed u. Commission on 
     
    
   
   
    
     to 
     
     Following 
     
    
   
   
    
     the 
     
    
   
   
    
     prices lor their products. and the way situation. 
     
    
   
   
    
     only brmich 0i the industry which 
     
     has advanced its position during the 
     
     your is gold production. Unsatisfac- 
     
     tory world lllnrkvls have rendered 
     
     fishery operations in the East rc- 
     
     lntivcly unproductive of profit. but 
     
     on the Puriiir: Coast the salmon 
     
     puck of approximately 1,050,000 
     
     cases is being nutrkctcd satisfactor- 
     
     i1 
     
    
   
   
    
     $1 
     
    
   
   
    
     yAmoug factories, those engaged 
     
     il'|)-')li cotton, vxouileti and artificial 
     
     $1ll€.-Il!'0(iUCif§ have been fairly well 
     
     cmpiovtrri, us also have boot and 
     
     shoe factories. Public works are not 
     
     being proof-riled will: Oil nny large 
     
     sonic, and riulwirv construction, to- 
     
     gether Will] (ht: production of rail- 
     
     way equipment and materials re- 
     
    
   
   
    
     m 
     
    
   
   
    
     The position ls that. 0n thv 011" 
     
    
   
   
    
     hand. we have the Canadian Pacific 
     
     Railway Company with a capital of 
     
    
   
   
    
     .1oo,oo0.oo0. composed of bends‘ 
     
    
   
   
    
     preferred and common stock sub- 
     
     scribed ior by the public, partly in 
     
     Canada, but for the most pail 
     
     abroad, not a dollar of which vnsl 
     
     sum is guaranteed 
     
     either as to principal or interest, b; 
     
     the 
     
    
   
   
    
     in any wn _v, 
     
    
   
   
    
     people of Cnnncin. and the 111W- 
     
    
   
   
    
     en of interest upon this caPiIfl‘ 
     
    
   
   
    
     depends entirely on the ability oi‘ 
     
     the directors and management to 
     
     make the road pay. This money has 
     
    
   
   
    
     Joint (lencral Iisusgerl. "W?! "ll 1" 
     
     part ls follows: 
     
    

    
     Mn President out! Gentlemen:- 
     
    

    
     On nehiiir or m. Dodds and myself- 
     
     I liuro tho honour to present to you 
     
     llie one liunilrcd and fifteenth annual 
     
     balance sheet of the Bank. 
     
    

    
     A ncficx of the further sbrinknite 
     
     in general business whlelrhns occur- 
     
     red tlirougiimlt the Dominion this 71"" 
     
     is to he fuunll in the figured inbuilt- 
     
    
   
   
    
       
     
        
     
    
   
   
    
     toil. WIIIPII show that the Hank's 
     
     its is now total $70'.),200,000 against 
     
     37!: ' mm u your neo_ 1: ilrrrcnlP 
     
    

    
     000ml. ’i‘l|1.~= decrease I 
     
    
   
   
    
     you will agree, is n nunlonite 
     
     one. in view of the stnte cl’ domestic 
     
     business, the large decline in foreign 
     
     trrulo nnd the lmv levels to which all 
     
     i-omnu-illty values have illcn. 
     
    

    
     As illustrating the effect o! the 
     
     illlrlllliulfi situation on banking figure?! 
     
     ii: t,"‘ii|~l<|i, tho totnl tlciiils 0f nil 
     
     hunks it: (‘nnmln to lutlivutluvil nr- 
     
     munls for llm l2 months outline Iilst 
     
     in-tolu-r inst amounted in $20,771,000,- 
     
     illifl n rlcciinn of $.':.iiii1,(l00.00l\. 
     
    

    
     (‘omuicrrinl failures ill (‘nnnrlri for 
     
     lilo. your muting 30th Hcyvtcmlier nun:- 
     
    
   
   
    
       
     
    
   
   
    
        
     
    
   
   
    
     lii‘l"i"(l 2,4"? with linbiiitics of $19:- 
     
     (NL000, s compares with 2,258 
     
     failures with liabilities of $44,307,000 
     
     ii: 1113i. 
     
    
   
   
    
     The linuk has maintained its tradi- 
     
     tinmil liquid position and this has 
     
     l-m-n done ivitlmut in any way cun- 
     
     miling thc legitimate needs of our 
     
    
   
   
    
     this has now been pnrlinlly relaxed 
     
     lo far as domestic nui Empire needs 
     
     Ire concerned. 
     
    

    
     l1: France during the YB-‘IP-mld‘ 
     
     and commerce, boll: llltflrnlll I110 
     
     foreign, have been on n greatly re- 
     
     iluccd scale nnti innny inilinltrics have 
     
     also seriously felt the strnin, Export 
     
     trade il hampered by reduced pur- 
     
     chasing power nhrond lmi by b11111 
     
     tar-m. Against Franco. imports have 
     
     IllllMl owing to the slowing up of 
     
     manufacturing nnil also on account of 
     
     the lntrmiticiloi: of (he quota system, 
     
     notwithstanding whirl: the visible liti- 
     
     vcrse balance of trnllu for the tel: 
     
     months up to 31st October vvns Fcs. 
     
     8,320,000,000. 
     
    

    
     The highly nm-cesnful conversion of 
     
     veverni high interest Government ls- 
     
     sues into n 41.’. percent. issui- has 
     
     Imp" my important stop tnwnriis pinc- 
     
     lng the cnunirws finances m: ll 
     
     pmmrlr-r unri lunrc ccmlnmil-ni trails. 
     
    

    
     In tho Vnitml States, throughout til". 
     
     past your the arr-no in the financial 
     
     ‘em-m h“ IIPF“ n shifting one, with- 
     
     out purniicl, nml 1|: inrlitslrlnl null 
     
     agricultural pursuits coulinuml fnii- 
     
     ing prices nmi lmivilvlcriiig uur-crtnlnty 
     
     have prcvnllril. 'l‘lu- your 1m.‘ R0011 
     
     liquliintlnn lu r-ni:::nodity' uml secur- 
     
     ity mnrkcts, Ivirlosprcnrl commercial 
     
     nnd banking failures, IlflIllVIlilR of 
     
     currency rind gencrnl lmpnlmnent oi’ 
     
     confidence. 
     
    

    
     Enrly in the your. for ll short time 
     
    
   
   
    
     i'il§i(1llil‘.i'.!. Tho cuiii nnd quick assets 
     
     (hut we heirl nt the clone of o::r bunk 
     
     _\'ll|I‘ nmounlcil to I430,7tl8,000, rep- 
     
     roscniliu; till-Iii per cont, of our tolni 
     
     lwihilltics to tho public. 0f these lis- 
     
     sots nrtunl cash, i. e., Government 
     
     locals 11ml coin, amounted to 12.1".‘ Der 
     
     i‘:'|ii'. 
     
    

    
     iii Loans ni $15,200,111]? show i: 
     
     use: ‘of 5117100000. Tlinst: in Cun- 
     
     rv zloivi: s|.1o0,on0_ tlmsc ebronti 
     
     .' \\‘r- imlil 1:: New York l 
     
     .--.vi..~i:::vli:il nmnunt of llnltcil Slates 
     
     (iovvriimcnt r-‘lml-t tern: nbiigullntin 
     
     (aim-l: nro iliiilii‘lllllii'l,\' realizable. 
     
    

    
     (Ml. ih-pnslls in other bunks are 
     
     $'Il}.i\u,0|:n_ m: inn-reuse of.$0,(i00,l'l00. 
     
     i-rvcmllng nuirkct 
     
    
   
   
    
       
     
       
     
    
   
   
    
          
     
         
     
    
   
   
    
     lll\'i'.1(llll‘lli.~l, , not‘ 
     
     \':l|ln\_ uuwuvit o $2li7,l\00.000, ns com- 
     
     |.;,.-.-,| w“), 0h_000 lust your; the 
     
     1..-.-.-...-.- nt‘ s nouuurrt being entirely 
     
    
   
   
    
     in immlnlmi ::|:(i Provincial Govern- 
     
     ment ercurltirs. 
     
     ,4‘|:i-rr=::i Loans in (‘nmltin (including 
     
     (I! t.» nmnicipilllties) tritnl $281,- 
     
     - , a div-rouse of $41,000,000, 
     
    

    
     {'|||-[‘(\||f Loans ciucwhcre aggregate 
     
     snunrhoun, .1 ili-i-ronru: of iii.l00,tl00. 
     
    

    
     Imnk luwunls-i-sflirc shown nt $14,- 
     
     pimium, Hm sflilli‘ figure as in 103i. 
     
    

    
     in ruining our nsscts, nmplo [Ira- 
     
     v'~ir.:: luvs iwci: nmrlc for all had snil 
     
     liiiiiilirill iIlliiH nmi depreciation of 
     
     'll‘itlt“l1, 
     
     -»'(-|l nml Iicst remain unchanged 
     
    
   
   
    
       
     
       
     
    
   
   
    
       
     
    
   
   
    
     been used by the Canadian PitClilC 
     
     Railway Company to carry out thv 
     
     terms of its original contract w_:th 
     
     the Dominion. made in 1851. Willfil» 
     
    
   
   
    
     qulrcd tor mniixtcnaiice. 0110B B provided for the establishment of .:' 
     
     1mm $011M" v1‘ (‘Illllloyinent of perpetual service. It has been used“ 
     
     labour. is at n standstill. Such not only in the building of a Tilli- 
     
     itidircs m. our loadings, railway way and of all the services that. go 
     
     earnings, bank pleat-lugs, bank de- with it, but in the development u! 
     
     bits and imts- circulation attest the many other projects. such its jmml. 
     
     rccessiol: in the volume of business. gratlon, agriculture. mining nnti 
     
    
   
   
    
     liydro-ciccirii: development has 
     
     rcurhrri the point of saturation, and 
     
     until trntlc iiilfl industry take on 
     
     more nctiritv ::r‘\\' projects are not 
     
     likely to he undertaken. 
     
    
   
   
    
     The full ~-: cmimodity prices and 
     
     the liuciuu l.\‘ m foreign exchange 
     
     have filSlfltilirii the commerce of the 
     
     your. The mick number of com- 
     
     lllOdliv priPr-s us a Wh01e has de- 
     
     clined 1.1 cmtndl: from 100 in i026 
     
     to 65.9 in Orinbcr last, or by_ one- 
     
     iliird. 'I‘hls riwvssioll has hit itard- 
     
     est the uzzrirtxltural classes, the 
     
     prices of whose. products have drop- 
     
     pccl to 44.0 from 100 in 1926, or more 1,, 
     
     tlum tmc-lzziif. In such circum- 
     
     slant-cs. inducement, to retailers to 
     
     curry unorc ihm: hand-to-mouth 
     
     sit is lacking. In the security 
     
     markets the lowest point was reach- 
     
     ctl in June. since which time there 
     
     has been some betterment. 
     
    

    
     The harvest, notably of grain, in 
     
     Cnnaulzt ivus of good average, the 
     
     411000.000 bushels of wheat pro- 
     
     duccci in the three prairie provinces 
     
     being 127000000 bushels in excess 
     
     ct lust. y'cnr's crop, and of coarse 
     
     grains production was substantially 
     
     largo:- thnn in 103i. The Western 
     
     whcnt crop nioireti rapidly. deliver- 
     
     lcs bctwccn August lsl: and Novem- 
     
     bcr 10th exceeding 230,000,000 bush- 
     
     cis. ‘it is (mfortunutc that. the price 9 
     
     of wheat has dropped to the lowest 
     
     figure in the history of the Winni- 
     
     peg Exchange, (iupllciltlng in this 
     
     (liiCliilC to new low levels the course 
     
     of many other world commodities. 
     
     'i‘hcrc has been u. largo make oi‘ 
     
     choose, butter and other dairy pro- 
     
     ducts, and a greatly increased ex- 
     
     port of meats to Great Britain. The 
     
     removal of restrictions on Cana- 
     
     ciinn cattle imported into Great 
     
     llritnin ns a result of the Ottawa 
     
     Cnnicrcllcc is expected to stimulate 
     
     slupiucnts to that market ncxt sea- 
     
     won. 
     
    
   
   
    
     PUBLIC DEBT AND TAXATION. 
     
    
   
   
    
     The weight of public debt and 
     
     taxation restricts trade. In loss than 
     
     two decades our Federal funded 
     
     debt: has increased from $336,000.000 
     
     in 52.500.000.000, or nearly eight- 
     
     fold. willie in the szimc pcriod pro- 
     
     vincial and municipal debts have 
     
     mounted in relative ratio. Scvcn- 
     
     tr-rn years ago, no direct. taxation 
     
     was imposed by tho Dominion Gov- 
     
     crnment; in the inst fiscal year the 
     
     ummmt raised by such levy was 
     
     $122,260,000. and within sixteen 
     
     yours provincial government taxe- 
     
     lion has risen from 3151100000 to 
     
     $125,000,000, I may point out that 
     
     this is m: onmml levy of a quarter 
     
     of rt billion dollars for Dominion 
     
     nml Provincial Government obliga- 
     
     tions alone. In this connection I 
     
     may mention that; in 1931 o. conver- 
     
     sion OIIUI‘ was mode by the Dom- 
     
     mini: Government; in the nature of 
     
     m: cxchnngn of the 5% per cent. 
     
     lion-lwklur- 1032. i003 and 1934 for 
     
     bonds of u. new issue which would 
     
     hour tho szunc rate over the same 
     
     110F100, unri ullcr that a rate of in- 
     
     terest nf 4‘: pct- ccnt, The total 
     
     mnount converted was $590,083,000. 
     
     The interrs‘. charges on this gum 
     
     nt. 5'5 per ccnt. amounted to $83,- 
     
     000.00!) pi-r nnnum. At 4%. er cent. 
     
     the interest charges are $2 ,000,000, 
     
     so that after 1034 the interest sav- 
     
     ing as a result of the conversion 
     
     opcrntion Will amount to $6,000,000 
     
     per tmnum. Oi the 1933 and 1934 
     
     issues there are Still outstanding 
     
     3390110000, and if ways and means 
     
     cnn bc found for replacing this bal- 
     
     mict- Int or before maturity at a rate 
     
     of 41,. pcr cent. the additional snv- 
     
     inr! per nrmum will amount to $4- 
     
     3011.000 or n mm of over sioooooob. 
     
    

    
     t is a new experience for Can- 
     
     nda to be confronted by the fact 
     
     that the oosf. of government has 
     
     become a major factor in the c“; 1 
     
     of doing business. Uncmplo ment 
     
     relief has, of course, nddcd e the 
     
    
   
   
    
       
     
    
   
   
    
     to 
     
    
   
   
    
     be 
     
     0D 
     
     Gil 
     
     ue 
     
    
   
   
    
     {)6 
     
    
   
   
    
     th 
     
    
   
   
    
     SE 
     
     1'8 
     
    
   
   
    
     85 
     
     SC 
     
    
   
   
    
     m 
     
    
   
   
    
     m 
     
     m 
     
    
   
   
    
     wcrc strictly confined to its flpprg. 
     
     priatc Junctions, n. large scaling 
     
     down oi expenditures could be ac- 
     
     complished. There i5 a -" 5mm 
     
     1" T11R11? quarters to look to the 
     
     Govemmcnt. both loceland fgdefg], 
     
     for bounty in one form or another 
     
     but; it should bc remembered that d 
     
     government. of itse p. ’ 
     
     nothing. The funds it dlsburses are 
     
     11 1011.1’ on the business activities of 
     
     the DMblc. no matter what form 
     
     tvxallon may take. nnd the heavier 
     
     the burden the greater the diffi- 
     
     rullv of business revival. I am glad 
     
     to be able to say that in many 
     
     quarters active steps are being ll 
     
     token to reduce substantially gov- 
     
     ernment. outlnvs. and it is to be 
     
     iloncd that this movement will 
     
     snrczuluuiill nll classes of public 
     
     cvncntliuiri- nro brought- into mtg. 
     
     tinn will: the nctual tax-paying 
     
     capacities of the people. 
     
    
   
   
    
     le 
     
    
   
   
    
     other activities which have played 
     
     a conspicuous port in the (iEVPhp- 
     
     ment of the country. 
     
    

    
     0n the other l:m:d,_vve have the 
     
     Canadian Notional Railways, owned 
     
     and operated by the Government. 
     
     upon which the immense stuns I 
     
     have already mentioned. provided or 
     
     guaranteed by the public exchequer. 
     
     have been expanded. This 
     
     has been used to b::lld up a separate 
     
     transportation system. but no mnt- 
     
     ter how carelessly or how exirnvu- 
     
     gently it may _ 
     
     dollar of botl: principal and interest 
     
    
   
   
    
     Canada. ' 
     
    

    
     'I’hus, in the first instance you 
     
     have a property requiring 1-110 11195‘ 
     
     careful management in order to 
     
     mrtke good, and on the other hand 
     
     you have a property without a bal- 
     
     ance sheet; and no matter what the 
     
     results may be, b 
     
     hold the obligations of the Domin- 
     
     ion Government, representing ex- 
     
     penditures upon tile publicly owned 
     
     system. need have no fear us to the 
     
     payment of principal or interest, for 
     
     the people pay those in any case. 
     
    

    
     The Bill now before Parliament. 
     
     which in its present form 1iroposcs 
     
    
   
   
    
     ti s in the hands oi’ arbitrary tri- 
     
     bunals, is receiving challenge as on 
     
     interference with the rights of the 
     
     private company, and it. is doubted 
     
     that in its practical results such a 
     
     Bill can achieve its object. It will 
     
    
   
   
    
     sents difficulties, and it is to be 
     
     feared that it would not cilcct ilic 
     
     economies which the situation l:::- 
     
    
   
   
    
     apparent, also, that the maximum 
     
     o! economy can only he obtuuicri by 
     
     a union of interests which will make 
     
     patted administration 
     
    
   
   
    
     may yet be devised to provide for 
     
    
   
   
    
     ncnt such an arrangement. rm: he 
     
     made the more eficctlvc and advis- 
     
     able it will be. 
     
    
   
   
    
     some may think I do not .. . a 
     
     very optilnistlc note. Al. 1111.". (‘no 
     
     last year most. of us thought. we 
     
     were nearing the end of tht- (lepros- 
     
     sion and that during 1932 we would 
     
    
   
   
    
     Unfortunately, 1032 has 50ml a fur- 
     
     ther recession in business, nucl any 
     
     improvement that has tnkil: place 
     
     from the low point, 
     
    
   
   
    
     up to expectations. 
     
    
   
   
    
     ever, that". the present dvprcstslon is 
     
     world-wide, few, if any, countries 
     
    
   
   
    
     countries; 
     
     Canada. the United States, (lrnnt 
     
     Britain and others that do a world- 
     
     wide business and in which manu- 
     
     facturing, agricultural illliI other 
     
     industries combine to make llp thc 
     
     volume of trade. 
     
    
   
   
    
     "Do you see any 
     
     tion and has there 
     
     for the better?" The answer to this 
     
    
   
   
    
     though there 
     
     turn for the better in the stock 
     
    
   
   
    
     and whilst the general financial sit- 
     
     uation is easier, still we have not 
     
     1"?“ i .1 
     
     usnessor nro. a . ldi 
     
     which tisually follovvsywtliliiito: rrelgf 
     
     sonable time 
     
    
   
   
    
     ahingdl hcan truthfully 
     
     burdens. b::t cvcn no, if Government trirme adeggelgstilglr? tiliggugrrlliiiigfiltflis 
     
     better than other countries 
     
     mill: economic position. We have 
     
     mflnesed to keep Well in the middle 
     
     0! the road and must continue to do 
     
     so. We require honest and efficient 
     
    
   
   
    
     the future, 
     
     Lars problem. We must continue to 
     
     mic position 
     
     our ability, 
     
     the b 
     
     the lung 
     
     soon come to on cud. 
     
     country quickly responding because 
     
     of the general soundness of its po- 
     
    
   
   
    
     lifnosgel, to reed the address of the 
     
    
   
   
    
     IIIOIIPY 
     
    
   
   
    
     be managed. every 
     
    
   
   
    
     guaranteed b the people of 
     
    
   
   
    
     those investors who 
     
    
   
   
    
     place the control of boll: proper- 
     
    
   
   
    
     apparent that a scheme of co- 
     
     eratlon and arbitration of differ- 
     
     ces under a. system which contin- 
     
     s the parties in competition pro- 
     
    
   
   
    
     ratively demands. It will bc 
     
    
   
   
    
     possible, and 
     
    
   
   
    
     be hoped thtt some plan 
     
    
   
   
    
     is. Obviously, the more permu- 
     
    
   
   
    
     ‘II-IE OUTLOOK . 
     
    
   
   
    
     In this brief skolch I four that 
     
    
   
   
    
     >( 
     
    
   
   
    
       
     
    
   
   
    
     e a marked change for the bcttrr. 
     
    
   
   
    
     whirl: was 
     
     ached in June last, has um, been 
     
    
   
   
    
     It must be bornu in mind. how- 
     
    
   
   
    
     caping, and that it has bet-n most 
     
     vcre in the most highly developed 
     
     I mean those such as 
     
    
   
   
    
     I am asked the question every dny, 
     
    

    
     ight ll: the situu- 
     
     been any t-lumgc 
     
     ust be very uarded, ilecnusn n1. 
     
     as been a (ivriclcd 
     
    
   
   
    
     arket since June, during WlllCh 
     
     onth it reached its lowcst point, 
     
    
   
   
    
     at improvement in general 
     
    
   
   
    
     the two changes 
     
     have mentioned. Nevertheless, I 
     
     50v that 
     
    
   
   
    
     in a sl- 
     
    
   
   
    
     sdershlp in o:::- rsilwny policy for 
     
     as this is our most scr- 
     
     fllllcrd our financial and econo- 
     
     to the very limit of 
     
     hoping that tho turn for 
     
     eiter is not far ofl and that 
     
     road of depression will 
     
     with our 
     
    
   
   
    
     tlon. (Appllllllfl) 
     
     rm: client-inns. annxumns- 
     
    
   
   
    
     AIIDREHN 
     
     Tlu- _('l:;:iru:uu tin-u :~.|l|...| m..." 
     
     r. \\ .\ ling, mi Joint (lam-rill 
     
    
   
   
    
       
     
       
     
        
     
    
   
   
    
     ,.,00'I_000 and $38,000,000 respec- 
     
    
   
   
    
     $4i.'l.'i.700.000, n de- 
     
     _00. Notion Deposits 
     
     shmv i lose of $13,000,000, De- 
     
     mund Tlflpfltilifi n decrease of 20.000000 
     
     no.1 nmnlnlnn and Provlncin Govern- 
     
     input Impusirs an increase of $12,000,- 
     
     mo. 
     
    

    
     liuiuurcu 
     
     i tumult), 
     
    
   
   
    
     due to other Banks are 
     
     , nn increase of $000,000. 
     
     Profits amount to 8411051000 as 
     
     i-onipurcll will: $530000!) lest year. 
     
     'l‘|:<- ill-cruise of $723,000 is 1r: keeping 
     
     uili: tin- rr-ilucrui turnover of business 
     
     FPHPFillV {iliil the lower rates earned 
     
     m: our reserve funds. . 
     
    

    
     In (ho pnvl we lmve published a 
     
     h-ilf-tourly report nt the onri of April. 
     
     We shall probably not continue this 
     
     as ii do"! not properly ludiente the 
     
     result of the full year's business. 
     
    

    
     Oz: the 31st October we hnd. 600 
     
     lvrnnviies in operation. 
     
    
   
   
    
     A DIFFICULT TBA]! 
     
    
   
   
    
       
     
    
   
   
    
     'i"|r\ _vr\.1r\ through which we have 
     
     just pnsscri ims been one of stress 
     
     mu! nnxicly‘ to nll nations o1’ tho 
     
     “with-whore hna been no exception. 
     
     in (‘nnndu we have done better than 
     
     illwtii other countries, but there arc 
     
     .--'lii| muuy difficulties to overcomt. 
     
     '.l‘l:o mirtlul pnrniysis of internation- 
     
     nl irnilc, induced principally by the 
     
     lli-li-rmlnntlon of cnciiltm- nations not 
     
     10 flvvcilt tmvment of debts in goods 
     
     lms adversely nffccterl commodity 
     
     prices nud particularly those ef unt- 
     
     urul products. All countries hrivo 
     
     Imcn endeavouring to llva within 
     
     Ihrlilsclv-o-to (lo this they are m-o- 
     
     iiuciug nil the ncccssnrirs possible 
     
     within ti:"ir nwn borders nnd heavily 
     
     i.':\'i|llZ iumnrtu-higl: tariffs are the 
     
     1'1"“. 11111111‘ minors-ll, m: those in Cou- 
     
     min, h: soil-defence. 
     
     llurinf! lhe .\‘t'ltl' (be opportunity for 
     
     rnfo and profitable employment of our 
     
     funds has been gronily limited, 
     
     suiting in lower net cnrnlugs not- 
     
     wirhstiuuling lnnny economies insti- 
     
    
   
   
    
         
     
    
   
   
    
     lutml, ililil the shareholders were 
     
     probably not unprepared to learn 
     
     that the directors i:n|i ilscrued it 
     
     il-lc in rctiuce the amount of 
     
     cnrl illsbtirsmenr. While at Jirst 
     
    
   
   
    
     sight the present illvltienil of l0 pel 
     
     cvlii. may soc-n: n high return, it must 
     
     be remembered ihnt tho shareholders’ 
     
     iuvi-sliiicnt in the Bunk is vnntly 
     
     grculcr (lum tho simple totnl of capi- 
     
     |::i m: which tho dividend rote is 
     
     i'llll'illliil‘ii. ln uridition to the cnpltni 
     
     thorn are n vt-st account and undis- 
     
     triivutcii profits, the pnppcrty of tho 
     
     -\'iliil‘i‘ltfllll"l'f'. which are higher by 
     
     so -r millioiis of dollars than the 
     
     total cnplini. Our rclt nceount ll made 
     
     It]: of uiullvlilr-il profits, which have 
     
     ii-‘cn nccilmulutlng since the estab- 
     
     lislnnent of tho Brink in 1811, nnd of 
     
     Huck premiums representing money 
     
     actually pnlri in 'hy shnreholdom 
     
     which have reached us high as ‘I00 
     
     nor cont. Tlicrrforq-Ivhile the dlri- 
     
     iicivd In l0 per rcnh, as n matter of 
     
     fact it works out on the total amount 
     
     which tho shareholders‘ have invested 
     
     ii: the Dunk nt It figure which is less 
     
     thin: ono-hnlf this rule. 
     
    

    
     Our stuff of over 11,000 have shared 
     
     in the nnr-nlflccs that iinve lien: rc- 
     
     quimii through the (lropplngofsnlnry 
     
     lmnnu which we hurl for thirty yearn 
     
     grnniml to the:n_ as well ns through 
     
     (lu- nmisslm: of increases. 'l‘l:ey have 
     
     luyniiy cn-operntcil with the milnnge- 
     
     lucnt, thus nhnwlng their appreciation 
     
     oi‘ tho difficult conditions untlor 
     
    
   
   
    
       
     
    
   
   
    
     whirl: nil flnnnelnl institutions nro 
     
     opcrnting anti the mlrnntnges of 
     
     slmuly employment with n pension 
     
    
   
   
    
     when they notlro, anti ll: the (‘use of 
     
     mnrrlcil mun, provision for widow! 
     
     and minor children. 
     
    

    
     Our new mnin office iiuilillliga in 
     
     filiuwn and (‘nignry nro now complet- 
     
     ml. llilii in appearance and equipment 
     
     urn fully ii: keeping with the slam]. 
     
     mi: oi‘ tho institution. This, for the 
     
     ilnln ivcing, completes our building 
     
     progrnnmic. 
     
    
   
   
    
     T RADE AND COMMBIICE 
     
    
   
   
    
     llctnlled reviews of agricultural in- 
     
     ilimtrlni nmi ilusincim conditions. in 
     
     the vnriouo provinces will he includ- 
     
     mi in tho printed reports of these 
     
     proceedings. The reports will be innii- 
     
     HI to sbnroholilcrc and nlso will be 
     
     nvnllnblo upon request tn nll who 
     
     mny be interested in rorelving them. 
     
     'i‘i:<-,v show how serious tins been the 
     
     (incline in pmctlcslly every branch of 
     
     business activity. ' 
     
    
   
   
    
     Fl NANCIAL CONDITION! AIIQQAI). 
     
    
   
   
    
     in London tho course of the year 
     
     lms been marked by a chain‘ of dove. 
     
     lopmontn that has brought jhout s 
     
     rcntnrknblo cllnnge in money market 
     
     wniililtifiiltl. A your ngo tho Bank of 
     
     llnglinul rntc stood nt il%—-it i; new 
     
     27,3. (lnll money was 6% sgnlnst “i, 
     
     tn 1% tmlny while the rcterfor three 
     
     months Trcnsilry Bills was MUG l- 
     
     gnlnst 1%. Money has been In‘ super- 
     
     nhumlmxt: supply, ettrihutnhlb to n 
     
     restricted domnnd from trntie pad 
     
     industry liIlII for financial operation! 
     
     and nlso to policy. This |e in 
     
     money pormittcil grout conversion 
     
     flpcrnllonl, approximately 40 b" cont. 
     
     nt tho loinl international (lent, anti 
     
     moreover, has encouraged the repat- 
     
     rlntion of’ lnrge foreign balances, on:- 
     
     plflyed in inn: inn and left the mar- 
     
     ket in n heal bier condition. ' - 
     
    

    
     Tim llliilliil sterling luis depreciate.- 
     
     ln forms of gold, although nt. one 
     
     (lino In appear-cu that n fnlr measure 
     
     of ntniiiiily (‘Olllli Ito tlmlnlillllofl flot- 
     
     withslnnvllng llin ubu-nce of n gold 
     
     lmrkinir. it must be recognized, how- 
     
     I-w-r, fivit Lr-mlnn is rflnmxt liic only 
     
     1'I'||ll'i‘ oft‘ gold iimi. hnv nllmvlul trim. 
     
     clnli: ::: lYiWllllfl nmi v-xt-hnngc. 
     
    

    
     lluraug iill‘ process of the conversion 
     
     loan opt-rations an embargo was pile- 
     
    
   
   
    
     od on capital issues in lnnden, not 
     
    
   
   
    
     commercial unzl industrial activity 
     
     slmwcri n slight expansion, but liicrc- 
     
     nftcr for n number of months there 
     
     was m: almost stcuily null vnutinuuiis 
     
     (incline, ranching n ion-or: lcvcl than 
     
     nt nnv time in runny ycnrn nnri cover- 
     
     ing nll linen. it is grntlfylnif in note 
     
     that recently this (incline has been 
     
     rnmcivhnt checked-it is lmpctl anti 
     
     lmlicvcd permanently. 
     
    

    
     There nro still some, disorganized 
     
     niluntions nud it sci-nu: prnimhln (hut 
     
     there will imvc tn be additional tux- 
     
     ntion to luilnnri: the l-‘ciicrni budget. 
     
     Novcrthcloss, tho conclusion may fnir- 
     
     ly he (lrmvn that the country is mak- 
     
     ing sinw hut nnnc the less stcndy 
     
     progress towards recovery, 
     
    

    
     'i‘l:e Pri-sulcnti: nmi Congressional 
     
     clcrtlrvus (ire now past cvonts nutl nl- 
     
     iiioligl: there is to he a change ln-nd- 
     
     ministration it is fclr tiint this need 
     
     course no really disquieting thought. 
     
    
   
   
    
     rnn‘ nxxx AC1‘ 
     
    
   
   
    
       
     
    
   
   
    
     A I|lfiii."l' wliici: orilinnrliy would 
     
     lmvo come up ion consideration at the 
     
     present session of Pnrlininelit (it 0t- 
     
     tnwn ls the ticcenninl revision of the 
     
     Blink Act; but this lmn been pa". 
     
     Pfiilcd ‘for a your nrvnltlug the out- 
     
     come of the Wnrlil ldrnnomle Confer- 
     
     ence at which banking mul monetary 
     
     reform will be (llscusscri. 
     
    

    
     Reform of the blinking gtrncturg 1g 
     
     not ii rcnl issue in this ns in some 
     
     other countnics, not only because 
     
     under the Finance Art Cnnnrln nlrcndy 
     
     possesses through Government chan- 
     
     ncls those nrlrontngcs ‘Vlllph warm] 
     
     come from a central bunk l! one ex- 
     
     istent, but also hecnuno the strength 
     
     of the present lmnking structure has 
     
     been the outstanding favourable 
     
     fentltre of the business (Ieprcgglou 
     
     through svhich we have been passing. 
     
     the clmuiatioi: privilege were 
     
     taken away from the banks hes 
     
     been mooted. I do not see Imw they 
     
     could justify continuing mnny of 
     
     their smaller branches, of which even 
     
     now a lnrgc number nre overotcd at 
     
     n loss. for instead of bold g their 
     
     own notes for till money they would 
     
     require to hold (Government. notes. 
     
     which would he iln ndrleii burden as 
     
     it would mean that the bunks would 
     
     have to cnnry, over fillli above their 
     
     nccennnry reserves, many millions of 
     
     idle Government notes (it i: substan- 
     
     tinl sacrifice in revenue. ' 
     
    

    
     That the declining trend in con:- 
     
     mcrcinl loans in Canada in rluo to de- 
     
     liberate restriction of crciilt by the 
     
     chartered bunks is t: suggestion which 
     
     has been mivnnccd from time to time; 
     
     but so inn us your institution is cou- 
     
     cerned, there hnl been no withholding 
     
     of‘ credit to those to rvlmm we could 
     
     safely lend our ilcnosltnrs‘ money. We 
     
     have over one million deposit accounts 
     
     in the Bank of lloxitrcal and tho aver- 
     
     age is, therefore, of modest propor- 
     
     tlnns-tho banker must nhvoys keep 
     
     iill depositors in mind, especially the 
     
     smaller ones, on llicin savings are 
     
     often their nll, We would fnli to jus- 
     
     tify the trust rcpnsml in us by these 
     
     capitalists ii’ wo were tn ninko what 
     
     we consider unsnfc nilvanvrs. Never 
     
     wnx the mivnvitngen n!’ n Snvlnus nc- 
     
     count better illustrated thnn (luring 
     
     the. inst fcw years. The ticnosllnrii’ 
     
     cnpitnl is intact, it hnl nlwnys been 
     
     immediately nvnllnhlc Illlii ii fair in- 
     
     come has hcon rocclvml thereon. Fun- 
     
     thcrmoro, l should like to (lrnw to 
     
     your nttcnlion the important pr-in- 
     
     cipla flint hn|:ks_ while seeking new 
     
     business, should not press money on 
     
     n hnrrowcr no mailer iinw high his 
     
     slnndlng~business tuft generate it: 
     
     own stenm. it would no ii most (lun- 
     
     gerous procedure for hunks, in" midl- 
     
     tlon to supplying croillt to encourage 
     
     cnvnnsioi: which they fccl is not 
     
     WIITNiIIIEiI. . 
     
    
   
   
    
     The decrease in loans which follows 
     
     the downward swing of i: trnds cycle 
     
     is ninlniy due to reduced borrowing 
     
     on tho pnrt of those who of their own 
     
     volition contract tlicii; opera ‘ to 
     
     conform to decreased consumption. 
     
    

    
     It has hr-cn suggested tlmt :: money 
     
     monks-t should be nslnlillslioil in Cen- 
     
     mlo, b::t mom-y murkcts cnn hardly 
     
     he ercntml; they grow nnturnliy ti: 
     
     grout centres when wcxlth and cabl- 
     
     tnl congregate. Only countries which 
     
     lmvc picntiful cnpitnl of their own are 
     
     likely to ntlrnct iliLv-tu-dny money: ll 
     
     (lclitnr country such ns Cnmtdn can 
     
     hnmlly IIOP!‘ in compote In this respect 
     
     with the Iinitcrl States. The only 
     
     reel money lnnritct. nt the present 
     
     time on this continent is New York, 
     
     and In iny npiuioi: 1t will so continue 
     
     for years to enmc. 
     
    
   
   
    
     CURRENCY AND CREDIT 
     
    
   
   
    
     A suhslnntlnl portion of our gov- 
     
     ernmental rlchls is pnyublc nbrnnd nml 
     
     order tn cnsurc tlint nil maturing 
     
     ilnymcnls thereon may ho effected 
     
     promptly, ll:o Federal ilcvonnuicnt 
     
     luun very properly placed ecrlnin ro- 
     
     slrlctlnnn upon the export of gold. 
     
     Nevertheless, the Cnnoillnn dolinr is 
     
     firmly llnkcd with. sound mom-y. ln 
     
     other countries, cnpitnl "Oil to for- 
     
     clgl: ccnlrrn ns sum: m: confide-hen 
     
     was umlormlncrl thi-ctigh the ilnliue 
     
     lnsuo of currency-under like cun- 
     
     ditlrms the snino thing would happen 
     
     in Canada with u most disturbing ef- 
     
     fort upon general business and e (Ils- 
     
     nstrous effect on our fnrei n credit. 
     
     1:: view of our heavy‘ fore n uny- 
     
     nicniu nnrl future vii-ruin, i a credit 
     
     of the Dominion must be maintained 
     
     uniinpulrcil. - 
     
    

    
     There is something tn be acid in 
     
     fnvour of n rensonnble discount on our 
     
     ilolinr in New York, although it l! 
     
     burdensome tc those having obilgl- 
     
     tlonn to meet in New York funds, but 
     
     to increase this discount nntlflcislly 
     
     i:: a competitive wny to s level with 
     
     those countries whose currency is 
     
     depreciated to c [renter extent than 
     
     curs would be an extremely danger- 
     
     ous xperiment as no one could tell 
     
     whore it would end. 
     
    

    
     We hnvo had three yenrs of busi- 
     
     ness depression, and‘ while: lbom is 
     
     still no strong indication of n return 
     
     tn normal conditions, yet ln ivnrhl 
     
     nffnlrn certain corrective»: not-newn- 
     
     to the process of winnlvllllntloi: lmvc 
     
     been nchiovcil, no hope tony roflpn". 
     
     ably bo entertained of brighter (my; 
     
     from now on. Settlement oi‘ (in quea- 
     
     tlen of disarmament, war (ichts nml 
     
     freer international Milo mum", h, 
     
     ho nccolllllliulicii brforl- n full goiter. 
     
     nl recovery ctln he PXIYPPIPII. As fnr 
     
     cl (filnntli: in (‘|)llI'I‘rIii"iI, ilicne lrvlng 
     
     times havi- hrnuglit mi to n rrnllsiitlon 
     
     of some of our Ilfliltlllili [trnivicnll- 
     
     nmong them the pnpcr industry the 
     
     rnllwny nllnnlimh tlu- when: nml, u". 
     
     flmlliflrmcut llrfliiicmfl. tic cxtmvs. 
     
     Ilincen in nilminislrulivo ‘expenditur- 
     
     es will: rvs-ililln: hcrlvy gyyyprflnu-nl 
     
     (Ir-Ms Illlll (xiv-salvo iflXiliiflI|->\\'llll‘|l 
     
     lulu-r b: one of the grout lmlnilcnpl: 
     
     to liuslncnu recovery ||n|| g3 “gum, 
     
     At tiic some lllne ll in "mm," Me 1mg 
     
     if: 1w struck liy the nlrenpth mm r... 
     
    
   
   
    
     illlicmw- “lilvi: this cuunly llfltt (-1- 
     
     hlhlh-ii. We imvc cxpervlcnreil n 
     
     ism-oi (‘liliirlifliiuil In our export. fro-in, 
     
    
   
   
    
     we have suulnluoti nuivslnnlini rebuffs 
     
    
   
   
    
     in the form of heightened tsrlffs s- 
     
    
   
   
    
       
     
    
   
   
    
     0’Loary And Vicinity 
     
    
   
   
    
     wnanchcrs in this section of the 
     
     Province are now busily engaged in 
     
     petting their focal. The demand is 
     
     brisk and fairly mod Prices are 
     
     being paid. . 
     
    

    
     Mr. H. B. Boston. West Point, is 
     
     doing s. l “ _ business pelting 
     
     snd_so fsr prepared c large num- 
     
     ber of skins for market. 
     
    
   
   
    
       
     
    
   
   
    
     There are also a lot of feathers 
     
     flying in this section this week but 
     
     unfortunately the prlcestare very 
     
     low especially for turkeys from 
     
     which hcrvtofore there have been 
     
     handsome returns. 
     
    
   
   
    
     Beautiful weather still (1001-1105! 
     
     with no sign oi snow Whlifivcr- 
     
     Fortunately we escaped the Willi-TY 
     
     blanket which eiievelopfid "19 @5315‘ 
     
     tern section of the Hovirtce over 
     
     the last days of November. 
     
    
   
   
    
     Dr. J. B. Champi . 0'Leary, in- 
     
     oculated a number of children for 
     
     whooping cough .at Welt Point on 
     
     Dec. 8 where there are a large 
     
     number of cues. 
     
    
   
   
    
     We regret to learn that the two 
     
     year old daughter of Mr. and Mrs. 
     
     lnussell McLean, West Point, is 
     
     quite seriously ill with whooping 
     
     cough and all hope for her com- 
     
     plete recovery soon. 
     
    
   
   
    
     Her many friends throughout the 
     
     Province will regret to learn thli 
     
     Miss Marion Stcwait student of 
     
     Prince of Wales College, Charlotte- 
     
     town has been obliged to return to 
     
     her home in West Pinffii recup- 
     
     erate from a severe attack of in- 
     
     fluenzc, 
     
    
   
   
    
     The "Western Star" division of 
     
     the Sons of Temperance held their 
     
     Regular meeting in Glenwood Hell 
     
     on Dec. 2 with s large attendance 
     
     of members. 
     
    
   
   
    
     His friends are pleased to know 
     
     that Mr. my smith, West Point, c 
     
     patient in l". C. Hospital is now 
     
     resting quite comfortably. 
     
    
   
   
    
     Among‘ recent visitors to Bum- 
     
     mcrside were Mr. David Livlngltnne 
     
     Dunblsne, Mr. atenley Malacca. 
     
     Glenwood, snd Mr. Leslie McLean, 
     
     Dunblene. 
     
    
   
   
    
     Mrs. Jarvis Dyment, Knutaford 
     
     has had as her guest recently. Miss 
     
     Bertha Btaiger, Dunblsne. 
     
    
   
   
    
     Mr. Willard Harris, Knutuiord, 
     
     was a guest of Mr. Alton Mclsaw. 
     
     l-Iebnm last week. 
     
    
   
   
    
     Miss Annie nerdy is mulling c 
     
     few weeks st the home of her sis- 
     
     ter Mrs. tester Gay, Olen-y. 
     
    
   
   
    
     Mr. Howard Livinlfltone is spend- 
     
     ing s. week visiting friends in 
     
     Knutsiord. 
     
    
   
   
    
     Mr. Harry Mclssac, l-Iebmn, was 
     
     a visitor recently 111 Dunblene. 
     
    
   
   
    
     Among recent visitors to Query, 
     
     was Mr. Llewellyn Livingstone, 
     
     Dunblane-O . 
     
    
   
   
    
       
     
    
   
   
    
     First Girl-The forewoman claims 
     
    

    
     to be thirty-eight. but I think she's 
     
     s let older. don't you? 
     
     Second Girl-Bey, if the right 
     
     numbe of candies were lit on that 
     
     dame's birthday cake, the heat 
     
     would sot oil the o- tomatlc fire 
     
     sprinkler. 
     
    
   
   
    
       
     
    
   
   
    
     gclnst our products. we have neon our 
     
     (iollnr go to i: heavy discount in the 
     
     llnlterl States: mid yet. with all this 
     
     we hnvc maintained ns high a level of 
     
     general well-being as any other conn- 
     
     try, and we nre among the few nations 
     
     of the world promptly meeting every 
     
     obligation, both externally and inter- 
     
     milly. 'i‘hc|e considerations should 
     
     strengthen our confidence in our 
     
     country anti its futunc. 
     
    

    
     Your Ilnnk hns come through this 
     
     pcrlmi with undlrnlnlshed prestige. 
     
     for it cm: ho claimed without ang- 
     
     gcrntlnn that events have only served 
     
     to emphasize the important and out- 
     
     standing position which it occupies 
     
     lll the business affairs of this country. 
     
     (Afipifllllla) 
     
    
   
   
    
     net-om- snot-inn 
     
    
   
   
    
     'l‘~i:c (‘ltnlrmnn then moved, necond~ 
     
     ed by lilr. ll. R. Drummonils, that the 
     
     lit-port of the Directors, now n-sil, be 
     
     uilnpted and printed for distribution 
     
     among the Rhnreholdsm. 
     
    

    
     The Report wns unanimously ud- 
     
     optetl. ‘ 
     
    
   
   
    
     TIIANIiH T0 OFFICER B 
     
    
   
   
    
     A. Campbell x. c, 
     
     then moved, seconded by n W, C. 
     
     Finley, thnt the thanks of the meeting 
     
     nro hereby tendered to the President. 
     
     the Vice-Presidents and Directors for 
     
     their attention to the interests of the 
     
     Bonk. 
     
    

    
     lilr. W. N, Tilicy, K. 0., moved, sc- 
     
     cnmlcil by Mr. Roll H. ll 
     
     "That the thanks of the nice 
     
    
   
   
    
     Mr. George 
     
    
   
   
    
        
     
    
   
   
    
     Superintendents, Menage s 
     
     Mill other officers of the Bank, for 
     
     their services tillflllig the poet year." 
     
    

    
     The resolutions were unanimously 
     
     litlorttctl. . 
     
    

    
     Tho ballot for the appointment of 
     
     Auditors and the election of Directors 
     
     for the ensuing year was than pre- 
     
     cerdcd with. 
     
    

    
     The scrutlneors appointed inn the 
     
     pilrpnle reported tbnLMeurl. Jamel 
     
    

    
     lutnliison, (l. A., and bet-leg A, 
     
     Iicrilson, C. A., were tiuly appointed 
     
     Auditors and the following cntlernln 
     
     elected Directors: Tho onoumhls 
     
     Thomas Ahcnrn, 1'. (3., D. Forbes An- 
     
    

    
     us. ll. W. Bonn , K. (7., W. A. 
     
     "Hi1. 11"‘ liftflournhIe Patrick linens, 
     
     the llonnunthle Henry (locklhutt. 
     
     (lscerni Sir Arthur (mule, G. C. lit. 
     
     "o K. C. 11., A. 0. Dawson, 1i. ll. 
     
     91111111001111. 1'1. I1. Frost-r. tile Charles 
     
     (lonlnn (l. B. 10., llnrolai Kennedy, .T. 
     
     w. Mrfiomwu. Rom: u. ltirMllllcf, v. 
     
     W- Mvmllth. k. (t. Mniirl-fienrrnl (u. 
     
     lion. N. f‘. Mi-whnrm i , 0,, 14,. 
     
     (‘.\i. llv-rbort Liaison‘. 1.‘. (L, .\i. 
     
     (Thrill. Spencer, W. N. 
     
     fir Frederick Williams-Taylor, 
     
    
   
   
    
        
     
    
   
   
    
     eecntstruo r1932. 
     
    
   
   
    
     Pilots’ Prize 
     
    

    
     Given Hinkler 
     
     For His Skill 
     
    

    
     (CIIIBTG-J‘ Press) I I 
     
    

    
     Apmiunmuiustralia, Dec. 0.- 
     
    
   
   
    
     A trans-Atlantic flight acocmpllsh- 
     
     ed almost exactly a yea:- ago, one 
     
    
   
   
    
     o 
     
    
   
   
    
     ments in the history of aviation, 
     
     recalled in the announcement that 
     
     the J0hI1Si0n_M‘3mOl*lBl Prim 101 
     
     this year has been awarded by the 
     
     Guild of Air Pilots to Squadron 
     
     Iesder H. J. I... ilnklerfi 
     
    

    
     It was or: Nov. 25, 1931, that till 
     
     tough little Australian pilot, who 
     
     hsd already established new recordi 
     
     during s. flight \: long hops from 
     
     New York to Port Natal, Brazil. 
     
     set his little “Puss Mdth" cabin 
     
     monoplsue at the creasing of on 
     
     Atlantfg Ocean. If.‘ aeroplane had 
     
     ever traversed the 2 000 miles of thl 
     
     south Atlantic from west to east; 
     
     no light aeroplane had got- safely 
     
     across. Hinkler airned- to make I 
     
     landfall at Bathurst, in the Gam- 
     
     bia. For 22 hours he fought his way 
     
     through terrific rain and thunder- 
     
     shrrms. and the inunense cloud for- 
     
     mations that overhung the sers 51! 
     
     hours he 808ml; flying a few fcct 
     
     off the water below clouds that 
     
     raced by Just overhead; six more 
     
     hours, and those during the night. 
     
     he battled through cloud banks e1 
     
     heights lip to 12,000 feet. his out- 
     
    
   
   
    
     pmeg end his own rare instinct 
     
     for direction. 
     
    

    
     When the fuel remaining in the 
     
     tanks would have been enoulh 
     
     only for another two or three hour: 
     
     in the air, Hinkler crossed thl 
     
     African coast l0 miles south oi 
     
     Batihurst, his objective, turned 
     
     north and landed on the Bathursl 
     
     flying field. The close approxima- 
     
     tion of the landfall to his prede- 
     
     termined objective is noteworth! 
     
     alter a sea crossing of such length. 
     
     The Johnston Prize is offered 
     
     each year for the beat feat of aerial 
     
     navigation in memory of 5111181111111 
     
     Leader E. L. Johnston, the much- 
     
     loved navigating officer oi the lil- 
     
     fsted- sirsl-iip l-€-l01. Last year t3 
     
     was awarded to F. C. Chlchestcr. c 
     
     New Zecisnd amateur Pilot. who 
     
     shaped successful courses in his 
     
     own light aeroplane over more than 
     
     soo miles or open sea between i=1- 
     
     ands in the southern Pacific b! 
     
     means of solar 0059mm“- 
     
    
   
   
    
     Fast of Gandhi 
     
     Again is Broken 
     
    
   
   
    
     _--- 
     
    
   
   
    
     POONA, India, Dec. a-Protest- 
     
    

    
     lng against alleged unfair treatment 
     
     of one of his fellow-prisoners in 
     
     Yerods Jail, Mahatma Gandhi 
     
     today completed a 24-hour hunger 
     
     strike with the threat that unless 
     
    

    
     some action is taken, he will renew 
     
    

    
     his fast; Wednesday. 
     
    

    
     The 24 ioedless hours caused 
     
     Gandhi to lose six pounds and ren- 
     
    

    
     dered him so weak that he has t4: 
     
    

    
     be carried in a stretcher, it was said 
     
    

    
     at the jail. 
     
    

    
     Gandhi became interested in the 
     
     ease of a prisoner named Putts- 
     
    

    
     wsrdhan some time ego and wrote 
     
    

    
     to the Government, asking that he 
     
    

    
     be permitted to air his grievances 
     
    

    
     When no reply was forthcoming 
     
    

    
     Gandhi began his fast yesterday.‘ 
     
     continuing it up to today, when he 
     
    

    
     took some orange Juice and break- 
     
    

    
     fast. 
     
    

    
     Pattewardhanu case centres on 
     
    

    
     the question of untouchsbility. I-is 
     
     is a former professor and a high- 
     
    

    
     class Brahmin, imprisoned for tak- 
     
     ing part in the civil disobedience 
     
     campaign. - 
     
    

    
     lie offered to do the prison sce- 
     
     venging, a task usually given to un- 
     
     touchables, and the Gevemment rc- 
     
     fused on tho ground that scaveng- 
     
     ing is reserved to "professionals." 
     
    

    
     Pattawardhun therefore began tc 
     
     reduce his own rations, determined 
     
     to starve himself to death in pro- 
     
     test. 
     
    

    
     "In loyalty to my dear comndo." 
     
     Gandhi said. "i demand to share 
     
     in his agony and offer my own life. 
     
     The Government's refusal amounts 
     
     to s means of checking the pro- 
     
     gress of the movement against un- 
     
     touehsbllity." 
     
    
   
   
    
       
     
    
   
   
    
     HARRINGTON SCHOOL 
     
    
   
   
    
     Honor rol_i for November: 
     
     Grade JL-l, Jessie Stewart. 
     
    
   
   
    
     Grade Vin-l, Mary Stewart. 
     
    

    
     Grade VIZ-l, Harry Rodd; 2 
     
     Doris Ford; 3, Norens Toomhc; c 
     
     Ohsrllo Wise. 
     
    

    
     Grade. V.—1, Joyce Newson; A 
     
     Helen Phillips: 8. Wesley Macbeodt 
     
     4, Amy lrysnton. ‘ 
     
    

    
     Grade IV.-i, Stirling MacPhcr 
     
     son: 2, Anstins Morrow, 
     
    

    
     Grsdo III.-l, Anita Gudmors; 1' 
     
     Oledlne Phillips; a, Ivan MOlTOw, 
     
    

    
     Grade IL-l, l-llison Hughes; 2 
     
     Arthur Rodd: 3, George cudmore; 
     
     4, Sterling Ford. 
     
    

    
     Grade I Br.-l, Bhcidon Walker; 
     
     2, Heflilie Walker. 
     
    

    
     Grade I Jr.-l, Glen Newson and 
     
     Iceman Morrow (equal). 
     
    
   
   
    
     Lester H. Selllck, teacher. 
     
    
   
   
    
       
     
    
   
   
    
     of the greatest individual achieve“ 
     
    
   
   
    
     ward vision completely ‘blanketed , 
     
     and his only guide the, two oom- . 
     
    
   
   
    
     t.» 
     
    
   
   
    
     l 
     
    
   
   
    
     Grade vnr-i, Verna Phillipa \ '