. nptull right is in . "ROIUGIII : . S W M” I UNDER FEDERAL AUTHORITY T 3-iExpects Canada To Have For Export, Hydro, Oil, Gas By JOHN E. BIRD Canadian Press Staff Wrlier OTTAWA (CPI-ESIIDIISIIIIIQII. of a national energy authority to control export of oil, gas and hy- dro-electric power was pl posed Thursday by the Gordon commis- sion on Canada's economic pros- peels. The royal commission's prelim- inary report said the authority would advise federal and provin- cial governments on lo:E-term en- ergy requirements in parts of the country. It also would advise on best USES Of energy SDIIITQS, Oil OXPOYE policy including the question of in- creased refining of oil and gas in Canada and disposal of by-pro- ducts. and on such questions is coal subsidies. The report recommended that the authority approve all contracts or other arrangements for the ex- port of gas. oil or electric power. Where necessary. public hearinls should be held to discuss con- tracts. REPLACE COAL BOARD The authority would assume re- spunsibilities of the Dominion coal board which advises the govern- ment on coal policies and subl- dies. The report said the authority would enable a "sound and com- prehensive policy” to be worked out for "development. exports. im- gorts and consumption of all forms I energy in Canada.” It forecast that consumption of all forms of energy will increase iteadily during the next 25 years. 81'0" nltional product. expected 10 luml? from S?-6.300.000.iX)0 about by 1930. The report recommended lim. lteg e;Iport olf hydro power to the U.. c polc would not a I to a're'a's locatyed long distahllelsl from the U.S. border. The recommendation is based on the conclusion that Canada in the years ahead wlll'have large. quantities of hydro power. oil and gas available for export. POLICY CHANGE The suggestion for export of hy- dro power would be changed from present policy to restrict exports and conserve electric energy for Canadian ,use. Trade Minister Howe told the Cglmfnolhl in!Februaryf, 1955. that tis po cy s one o ”no firm commitment for power." lie said export licences should be issued "on a surplus interruptibles basis only and that they should be re. viewed annually." Capital expenditures on hydro- electric Installations over the next 25 years may amount in between tl5.ooo,ooo.ooo and s2o.olxi.ooo.ooo. Net value of output in I980 may be four or five times as great as in 1955. No figures were given. "With the costs of large hydro installations so very great. and the difficulties of financina them correspondingly imposing. is in- ureaslng', clear that before these projects can be undertaken and financed immediate markets must be available for the power it Isl, proposed that they will generate."i be slower than the rise in they I toy However. the rate of increase will The most atriking single fact' Banker Says Credit Trends Go Counter To MONTREAL (CF) - Monleary and credit controls may need to be extended to wider areas than they cover at present. James Muir. chairman and president of the Royal Bank of Canada. said today in no address to the bank's annual meeting. Over the years. said Mr. Mllir. auch an abundance of other forms of credit creation has arisen that the au ply of credit may move compl ely opposite to the direc- tion which official monetary pol- icy attempts to induce. "It may be taking too positive a view of a distant scene." he added, "but it would at least ap- pear that. ln order to be fair and tc achieve theubest result. mon- etary policy and credit control may have to embrace a wider area of our financial world thin It now does." Mr. Muir's commenld were con- lalned in a text issued to the press In advance of delivery. TWO SOURCES There were at least two sources of lnfiationtry pressure which the '3' "P9 central bank. with its present power, would find it difficult to reach. One la in the capital funds market. it a condition where in- ierest rates were rising and were expected to rise mu further. some borrowers floated 'tal is- sites to provide cisli Illllticed which they might nessl later. ”What we have." said Mr. Muff. "is a sort. of pinic to get money now for fear it will not be avail- able later." A second rce of inflationary presture. Mr. uir tinted, lay in vile growth of hon-bank repositor- les of funds. Even institutions FIKJIHII ':l;la'nce (:).I:pll:l.E!. zit: rs to I as a as, a alleniallve tdugces ftthds. The Bank of Cdnada and the "inflated banks h co-operiatcd within the broad rarilewo o monetary policy to reduce to al- most ne llgibla pyoportlona the net lnnalbridry feet of char- tered-hank operations. Official Policy CREDIT EXPANDS Consumer credit continued to ex- pand, but that part of it directly or indirectly Ililfinced by banks had fallen off signiflciantly. Per- aonala loans by chartered banks had fallen off during the second half of the year, while similar loans by loan companies and credit unions had continued in 1956 the rising trend established in less. Retail consumer credit by instal- ment finance compani , rose. through I956 to a new high. while chartered bank loans to instalment 'inance companies had fallen steadily in the second half of the. year. i Consumption and investment ex- penditure could rise together only if. there was an increase in goods and services. or a rise in prices and the flexibility necessary to in- crease output of goods and ser- vices was likely to be smaller in 957 than in 1956. in l957. there- on. it was even more urgent to curb the rising trend in total mon- , nditure. "Unenlightened selfishness." Mr. Muir commented. "is perhaps the most dangerous tmlsgulded mis- aile' combattlng those who would confine Inflationary forces and pre- serve the integrity of our money. STATE OF CRISIS billing with Canada's ”human resources." Mr. Muir said the edu- cational system was in a state of crisis. and he thought the most pressing problem lay in recruiting and retalnlnk tiaff. "The economic osltion of all tea- chert." lie Ila , "lug deterior- ated rolative to other yIOT9SlIOII' of comparable training and respon- sibility, and relative to the work- ing force as a whole . . . . . "It is a ridiculous situation. but by so new All ut rlsttin one, to find that A new graduate re- colvod a salary on his first job that approaches or even surpasses what his teache n, in school and about the forecasts of Canada's steadily mounting energy require- ments was that by lwlhetween two - thirds and three - quarters would be met by oil and gas. On balance Canada would he more than self-sufficient. TENFOLD INCREASE Oil output by man was expected to be 10 times that of 1965 and between lb; and twice anticipated requirements. For gas the poten- tial output llkely would be 15 times 1955 production. and Shoot 50 per cent more than expected domestic requirements. "This means that there will be large quantities of oil and gas available for export. If we con- tinue to import oil into Quebec and the Atlantic provinces, (from the US, and other countries) the quantities' available for export from the Prairies will be corre- -- -1 spondingly greater. . . . "It seems clear that it is in Can- I ada's interest to perrnlt gas to be exported, provided that adequate reserves are maintained to serve GAS R A boy on a pony and I group of cyclists have this stretch of London-to-Brighton road all to themselves on a sunny Sunday af- our own longer-term future needs and assuming that reasonable pro- vision is made for the sale of the by-products of the purifying or cleaning process." The report said nuclear energy will play only A t role in adult. . M, . ATIONING LEAVES PEN ROA seaside resort is choked wilh. automobile traffic. (AP Wlrephoto) lcrnnon. due to rationing of gas. oline in linglanil. Normally in pleasant weather this main high- way from London to the popular Canada's energy program during the next 25 years. Electricity may be produced from atomic power we followers of Jesus take this liquor problem. Red Chinese Find Cost Of church alike. receive as their ma- torill reward for a lifetime oil on an economl basis by 1970 but it was not expected to contribute more than four per cent of energy requirements by I980. FIRST 1'0 BE SERVED . The first areas to be served by atomic power likely would be southern Ontario and the Mari- tlmes. But because of the abund- ance of other forms of energy it would not be an important factor in Canada as soon as it will be in other countries. including Britain. The commission said coal is pro- gresslvely declining as a source of energy. Production might increase during the next 25 years but by then it was , t i to account for less than one-sixth of all en- ergy consumed. compared with about two-fifths in i953 and more than two-thirds in 1926. Dec of large supplies of oil and gas in western Canada. de- mands for coal from underground mines in this section of Canada will continue to decline. However. buoyant employment conditions in the west and assist nce granted by provinces had sci ar revented the problem from ecbrn g acute. But the deterioration of the coal mining industry in the Mariilmes was a continuing cause for con- cern. W.C.T.U. NOTES Despite all of the evidence con- stantly pouring in from every side, the American people lteadfastly refuse to get very excited abou one of the gravest problems that we face as a nation. namely, the use of alcoholic bever ges. People . re alwayl elllng me that I vr d be.surprised to know how many of our church people serve and drink liquor in their homes. I don't think "surprised" is the right word. A better word is "saddened." it is undoubtedly I have always been interested in trends. Not where we are cur- rently, bill the direction in which we are going always seem to me to be the most important thing to look at. We know. because the figures are readily available, that there has been a steady increase in al- coholism and problem drinking in the United States. We know that the nation's brewers spent more money than any other industry group for spot television advIl.is- ing during the second quarter of this year. The figure ia S7.9l6.000. If any one wants to be shock-p ed. just stop to consider the im-I plications of the figures recently, released, that the American peo- le spend nine and a half billion ollars a year for alcoholic bev- erages.. while we spend less thani seven billion dollars a year tori billion a year for all religious ser- vices and programs. This means that we have more: treasure in alcohol than we do in: our public schools or in our chur-. ches. and Jesus said. ”Where youri treasure is. there will your heart be also." All of this is very disturbing to me. I don't see how anyone can justify It, or how any Christian can be a part of it. it isnt a) question of personal privilege. but one of personal responsibility. Here are some further disturb- lng statistics. In 1953 drinking drivers were involved in 18 out of every 100 fatalities. In 1954 the' proportion jumped to 20 out of every 100. Last year it was 22 out of 100. In our own city of Seattle. and in our state. there is increas- ing alarm over the astounding increase in automobiles accidents. Can't we see there is a connection between this tragic situation and t our "personal privilege" of drink- 319"- lng if we feel like it? things at least. First. we can resolve to have nothing whatever to do with liq- uor in any form. not primarily because of what it does to us. but because of our influence and ex- atfxlgle. e Washington Temperance A- ssociatlon. 5131 Arcade Buildln. true that I would be more sadden- ed that I am if I knew how lightly Seattle. service." Councillor Has Had His Ups And Downs But Succeeds By STAN 0'NIlI.I. RltAN'l'r0RD. Ont. (CF) 1 An achieve o - live it not so to D”! SE3- mlfl. Ii-year-til hardware mer- chant who will be mayor of this southwestern Ontario city for the next two years. "some people are born with a silver spoon in their mouths." he ."I was born with a nail in mine." 2 son of I Tortilla hardware store owner. be combined hard work and faith in the future to ov coma nll'nmes and setback: in youth. on a auceeaw business- mu. as had Means first Jew- af Ontario's seventh rn ofna fnrmhavuaaf I 'to 1. . doearteaoatmoch . hoaaya. man because of his religion. BUSY IXICUTIVI "Who can take things ens in a city council?" he am with grin. 1' I" ll IIICIW. III spends one evening a weak at home with hlsl wife Ma and daughter, attrdetiv? it-tier-old hilhnoezhohlll student. Pipe-smoking "Mays:-clshgnnmfg 1 . T A" 9 9'' I17 I m Millie add A rinneu amounting almost to obatlnacy. 1'71!!! Years ado. as chairman Recently. A lhayoc . glee ho” '5' 0"? IP09 Winter't xy- efffcient service. CHURCH REPORTS BOOKLEFS FOLDERS AN NOUNCI.-EJENTS CALLING CARDS TICKETS GUARDIAN JOB PRINTING Ollr new plant is now ready to give prompt and LI-I7l'I'ERi-IEADS ANT) ENVELQPES ALL TYPES COMMRCIAL STATIONERY ADVERTISING PROGRAMS l E wannmo mvrrsrlons. I J cmcunsn Lsrrrl-:li.s HANDBILIS AND eosmts , LABELS AND sfnfmtd TAGS Wilt! oridrup In at THE UUAIDIAN ,.. - ,..E., ,. , public schools. and less than four in Modern Antibiotics Too High .VANCOUVER 'CPl - Predic- tion that sclentific medicine in Communist China will be de- stroyed by the attitude of the Red government was made in an in- terview isere by Dr. Leslie Kil- born. head of Hong Kong Univer-i sity medical department. - He was dean of medicine all West China University in Cbengtu until 1952, and he said the regime was forcing universities to teach both modern and traditional Chin- ese cures. "it is attempting to mix two in-- compatibles after the governmentl made rash promises in cure all ills and found out modern anti- biotics cost too much." he said. "Sn the government is now try- g to tell the people the ancient herbalist cores are better than the Chinese increased their or- ders to him to teach non-scienti- fic medicine. he applied for pgr. mission to leave the country. Since then he has been at Hong Kong University. "There is quite a shortage of doctors in Hong K008. only one doctor for every 5,000 persons. The ideal rate is one for every 1.000. we have about 300 students in medicine now and graduate about 50 a year. Dr. Kllborn. who speaks Chin- ese fluently, was born in China 62 years ago. son of Canadian mis- sionaries. He received his MD and PH.D from the University of Tor- onto. sclcntiflc ones." Dr. Kllborn taught for two years under communist rule. As Yolande Pompey Named Contender LONDON (AP)-Boxer Yolande Pompey of Trinidad Wednesday was named "an oustandlng con- tender" for the British Empire light heavyweight tlila head by In Air Crash bomber near Loring air base here laws by a spokesman at the base early today: Capt. Richard A. Jenkins. 35. Huron. 0. Capt. William C. Davidson, 40. Stockton. Cal. Capt. John E. Mccuna, 31. Hay- ward. Cal. Gordon Wallace of Brantford. 0nt., The Commonwealth and Empire thampionships committee listed "outstanding contenders" in only: two other divisions-Percy Lewls'. of Trinidad in the featherweight v not be identified immediately. Two others were missing and presumed deatl. Flrnl Lleut. Joe 1.. Cliurch. section and British Champion Joe Erskine in the heavyweight divi- What can we do about it? Two -....----------g---g.--yyy-y yes"! We make loans fo Cohsolfdafe Bills D Oct cash hero to pay many of bills; t en have only one convonicnt payment to make each month. This single payment often Iona pay. Phone for your loan in one Vigil to the ofhca, or come in. loans 550 to 51500 on llgnnun. Iurnlturo or Lino NIW MIMI! Obnonal llnaoa Co. is new saflocf Imtflclll IINANCI 3. Only the none has boon changed! bBl.NEFlClAl FINANCE co. &au Il. clear ozone: s1-hen. cuatuorrrrowu Second Floor, Pldtl Iulltflng Fllanaslill-Aakfartlia YES Mllarv APPOINIIADII-PHONE POI EVENING MOI!" XIWEINIIIV without experience. holding a for September. 1951. PLOI: supplements Pill Grads IIIIQIIII: Post graduate seedling diploma. untversitv TEACHING OPPORTUNITIES ' FOII OATIIOLIO TEACHERS Catholic teachers under 35 years of age "1 Emil l""lllll Vlfll 0? tench in the elementary grades of the Montreal Catholic Schools HIMENYAIY SALARIES: lady lucIsn.......iIlilt (slim doom) (without College doom) Slum & Ielthlsulvlllft (Oil!!! 409"” . fwllhclt Collage mm) fiend lion iuon.t-in C-lies"! t-smi- iwlthovl (alien IIQINI Up II! In ys-an' credit on Salary Scale for experiences. . grants for dependents of llngle teachers: app"; Library work; Music lnstmerlnnt ml Edng-gtkm, Opportllrlitv classes. Teaching in I with pay; Insurance Benefit rortlnuewbnuoclulnpmmrom adcnulaauu pasta gnnredum-ugh amnprmlvc nmtnatfon. Adrlma appliat:.... nnmodutoly. mt-ng -2-. "P'"""""- Ilegveo held. reference as in Intel can-as dgned by p.mt.'poo.-t. to: - I Department 21 VIII KICIOI OINRAI OF STUDIO. CATHOLIC SCHOOL cO&II9fON. in st. cantssm st. war. natmsat. Gus. cnuaa Capt. Marquid H. D. Myers. so, Tracy. Cal. T-Sgt. cine. Wis. Remains of a sixth body could Charlotte. NC, survived. Identify Dead LIMESTONE Me, (CI-tint-live of the six airmen known dead in the crash of a United States B-52 Thursday were identified as fol- Ray A. Miller, 27. Ra- Universities Should Have. Top Priority, Commission OTTAWA tCPl-An urgent plea'lowed under the income tax law. for aid to universities. including al'l'he others was to exempt he- call for "substantial" salary in- quests to universities fran the creases. to university teachers, was. succession duty on estates. made in Thursday's preliminary NEED SKILLED LABOR report of the Gordon royal com- The commission. saying that cur- prospects. '.expected to get worse. recom- austained effort be made to raiseltechnlcal and university training the quality and standards of Cana-l ”UnfortI.u1ately. unless world." . . . No other single course of meet the demand." action would be so likely to have such an important and fundamen- I tai effect upon the long-term eco- nomic prospects for Canada." University enrolments are ex- skilled workers pected to double in 10 years, the,creased. report said. The economic statusl of teachers had declined SUIISIEII-i,IpPl'9IJtICCSIIIF in skilled trades. tlaily since 1939 in relation to thel ommendations in this regard: I. Pay differentials now Sl2.000.000 a year. have to be three or four timeslperalivc." higher by 1965. 4 In-plant EXPANSION SEEN Capital expansion during the nexti 25 years would require an aver- age 340,000,000 a year. lpersonnel. The report did not specify how .m the money might be raised. but . said it was "quite beyond" the JCMCS F. FUN capacities of the universities them- selves "without direct and sub- stantial aid from the BRANTFORD, Ont. (CPI menis concerned." James F. Fair. Popular personal- ”It is of the greatest importance ity in Canadian thoroughbred rac- also that no Canadian boy or girl ing. died Wednesday in hospital of ability should be denied a uni- here. aged 70. Ha had been ill for versity education because he or several weeks. she is unable to afford it." said "Jim" Fair, as he was alwdyi the report. known. was associated with horse- The report suggested twn tax law racing for 40 years. as a breeder. changes to encourage private do- owner and trainer. nations to universities. One was The highlight of and companies. Died Wednesday govern- mission on Canada's economic' rent shortages of skilled labor are It urged that "a deliberate andl mended a mammoth increase in preaent dian universities to among the. trends are changed. there will not highest prevailing anywhere in thelbe enough young men and women enrolling in training programs to The commission offered several between skilled and semi-skilled and un- should be in- 2. Added incentives to encourage 3. Expansion of technical and vo- countryls prosperity and salariesgcational training facilities and es- mighti tablishmcnt of new ones were "im- training programs pshould be fostered by govern- .ments. skilled tradesmenls groups 5. More efficient use of skilled his career to increase the amount nf tax- name In 1948 when his Last Mark The Guardian Pogo If Sattirdhy. Jan. 12. I957 IINQTOIED Colwill on Thursday even 1:. Jrd. Meeting opened by . f - lowed by Creed in unison. Rd! call was answered b 11 members with a book for the Dept. Correspondence was read. A thank you letter from Orphanage It was moved we get sewing and knit- ting from Red Cross. Mrs. Yon. treasurer, gave report. 8.16.1 was made on candy at concert. bill of 36.89 was paid Mrs. Newun for candy. apples and articles In school. Eight members subacri for Institute News. It was ed to have a parcel post sale at next meeting. Committees appointed: School. Mrs. liohnes and Mrs. Colwllls programme. Mrs. Yeo, Miss Mae- Eachern; lunch, sandwiches. rm. Holmes. Mrs. Newson; rest members to take sweets. Roll clll. grandmother's ailment for com- mon cold. Collection 754:; friend- shlp 36c. Next meeting at the home of Mrs. Whitfield Yeo on Feb. 7th. Mrs. Tyrus I-Iolmes moved meet- ing adjourned, after which the programme by Mrs. Dan Mclrao, Mrs. Iaelth Newson. Lunch was served by hostess and 'tte0 and a social hour spent. YUGOSLAV EHELLED BELGRADE (Reuters) - AI- hanla has expelled the first soo- retary of the Yugoslav Leaatiol in Tit-and. it was announced litre Friday. The official YugoalaO news agency Taniug said the Al- banian government refused fl give any reason for its action. free donations to universities al- won the King's Plate. James Muir questions if Canada developing her human resources as effectively as her natural resources Present teocbors' salaries malts decent living standard impossible for those who train and mould character of youth. Effective control of inflation may not be possible without broader central bank powers. Yugoslavia will protest the move. Annual Meeting of Shareholders The Royal Bank of Canada Total Deposits have now passed b3V4 billion mark K. M. sedgewiclr. General Man- ager. noted that llot only had assets of the Royal Bank real: the imposing total of 53,571,295 but that deposits had passed the Sm billion mark. both new lllga points in Canadian ” " hid- tory. While our loaning policy dur- ing the year was a restrictive one." said Mr. Sedgewick. "in ling with our agreement with the Bank of Canada. yet the buoyancy of our economy demanded that we ac- The "depressed occupational; status" of Canadian L .. churches. schools and universitles.l and the dangers posed by our appa- rent negiect of those responsible. for the training and building of the- moral character of our youth were. emphasized by James Muir. Chair- man an President of The Royal CAN PRESENT CUKIS HALT INFLATION "There are at least two sour- ces of inflationary , .- whlch tha central bank. with its present powers. will find it dffl tilt in " id Mr. Bank) of Ca:lada.lin hilyladdrel; at "Ten " the ank'a nnua mee rig n on- .. - ""1 "" Th"”d”' '7'"””7 10”” wllIT-lIl:'IlIf:fIe.l!ep(I;.I3ll:'Inglis ''It is clear enough that the econo- mic resources at the disposal of our schools and universities and even many of our chuches are insuffic- lent to maintain decent living stan- dards for the devoted men and whose life work it is to supply. to increase t.he activity of that supply by putting other- wise ldla funds into the hands of spenders through the ordin- arv devices provided by the capital market. uowi ul- TO to iworrrus TO RIPAVI no can now stretch your Ilvtnonts over so months an Inns over 3500. your than the total amount you now "Second. it is possible. with no increase in the money su ply. to increase the fun s available to businessmen and consumers from sources other than the financial inatitutions ordinarily controlled by our monetary authorities. "in both cases. we have. in the classic phrase. an increase in the 'velocity of circulatlon'. but the implications for policy are sufficiently different to merit separate treatment. ''It would seem to be at least open to doubt whether the present facilities and tech- niques available in our mone- iarv authorities are sufficiently wide in scope to deal with pre- sent-dav nrolvlems of credit control The classical wt-anon -vupward movement of in'er- est rates. largely through rom- merclal banks-may by Ilse" more an lmnofent poilov. If mav be taking too positive it view of in distant scene. but It would at least appear that. In order in be fair AM in order to achieve the best results, our nwvnet-rv and credit control mav have to embrace a wider trairi the minds and develop tbcj character of our young people."l said Mr- Muir. "in this we are fall-; in to make the fullest and wisest- use of key human resources; we! are failing to give them a reward , consistent either with equity or in- centive: and we are endangering therefore the future welfare of our whole economy." CRISIS IN EDUCATION l "The present economic position of the leaching profession is an anomaly The economic position of all teachers has deteriorated rela-, tive to other professions of com-1 parable training and responsihil-I ity, and relative to the working force as it whole. Thus the teacher. today finds himself III the same oc- cupaiinnal "floor:-ssed area" which he occuplcrl as long ago as I778. With the present disparity between? the salaries we pay our teachersp and the salaries we pay for com-3 parable inlcni elsewhere. we can-l not expect to recruit or to retain! enough riuallilcd men and women to maintain our present ieachingl standards in our schools and uni- versltles to-schr-r's diploma required to 32.450. - 53.750. Z.l50. - 3,450. 1.800. - 4.800. 2.500. - 4.500. 3.100. - 5.300. 2.800. - 5.WO. degrees, Cllrmllntixe Sick 14'!!! i s; l.llw-nil Iierirement Plan. l In high -rhnol grade: and "Here then is a case when the l lllnclfinn nr our human resources : would seem to he unresponsive to- l the ordinary operation of the price lmechnnism. But this is only part-; fly true. In fact, the supply of tea- chers is likely over a period of: l time in be only too responsive to area of our financial world than it now does. "A view-nus monetary poll:-v has slrearlv enlnved A lrrve measure of success in tho- tratllfinnai area'of bank credit. Its overall success mav de- nend in large measure on the '”'9 9"" '""I”""""' "'9 mnht I efflcar-v of the voluntarv ar- 'will work only too well. and we I I ' Iy d 'cMd I --II use "3"" if "'1' ”,';:,;t,,';;, u'."l.S"l?.'.'..i...l'..'.I. ..."..'.. the our educational W!" " ' extension of credit control by the spread of too small a staff over too many courses and stud-I eat: and through the deterioration, of the staff itself. e "We as citizens must. throuilh government. business. or IMIIVIIIU an! action ensure that our schools and universities are provided with, sources of funds sufficient to at- tract. to retain and to replenish those human re-sources of talent. training and experience that teach- inl requires. . INFLATION STILL THREAT I in continuing threat of infla- fbe central bank or other organs of government to M- clude this increasingly lingui- ant source of liquid triads. ----rile amt-of Canada and the chartered banks have co-operate: within the framework inflationary effect hank operations. "Consumer credit rondnues to expand. but consumer credit dir- ectly or ladlrecilv financed by ' banks fell off significantly In 1036. ' For example, personal loans by chartered hanks fell off during the Gourd Bank. with ' flung it dulled to ,,. J to many deserving clients with new or increased lines of credit. For this reason. the com- mercial loans of the bank increas- ed by 8125.000.000 or just over 10 per cent." The bank's liquid posi- tion. he pointed out. continued strong, total quick assets of Si.- 958.263.05B representing 57.36 per cent of the bank's liabilities to the public. Capital Funds now stand at 8iil'7.7nl.63:l. representing an in- crease of appmximately 336.000. 000 during the year." "In spite of lower balances in Government accounts of some 845.- mono." said Mr. Sedgewick. "da- poalts of the bank increased by ap- proximately s2ls.ooo.ooo- The nuns- ber or our depositors grows stead- ily and we receive much satisfac- tion in realizing the high percen- tage of the country's population who deal with us.' Earnings for the year were si2.467.26B after pro- viding for depreciation and inconla tax. This figure compares with 810.- 858.4ilJ in the previous year. Mr. Sedgewick discussed flb bank's extensive bllllding and re- novation programme. and mention- ed that branches and sub-branch- ea operating in Canada numbered 187. while those abroad totalled 73. ROYAL BANK ABROAD "International hanklnl on I 1 broad scale has been a special clin- iracterlsfic of the bank for a long lpcriod," said Mr. St-dgewicit. "it thus long becn our policy to select lbusincss cnrciuily. and. as a result l the asset position of our Non-Doifh l esilc branches continues at a hlsll isianria d. For over ten years. a special section of the bank's For- lelgn Department has been devoid I to the development of information . necessary in those 1-nailed in I trade. and the permanent staff of this department is augment” 5! i the flow of senior men between UV; l erseas branches and Head Office. j This. Mr. Seclgcwick mentioned. makes the bank well eqlllllltfd '0 render a specialized snd essential Iv service to clients and others engag- ' ed in foreign operations. He stres- ad that in an organisation such as the Royal Bank. there are Al- ways vmr1bwhile opportunities for young Canadians who have IP09!- lgl aptlludes and are interested in . bugging career abroad. to rise with the increased demand for funds. "In addition to overall policy 0! money supply and money rates. the Bank a Canada continues the ban on term loans. as well as its requirement. fully effective in May. I956. that chartered balka maintain second-ihle reserves of treasury bills and day-to-daylotas sufficient. with exilltlllg statutory cash reserves of I per cent. to es- tablish a tllquidlty ratio" of at last 15 per cent of deposit llabllittd." WIDER POWERS NBEDID Des lie the effective in wt are 3 taken. Mr. Muir felt that there were at least two sourced of hflatiovnry pressure which the its n16 powers, would lllehtasebnal if .