glandular: u, 19a_o_ STOCK QUOTATION l Maming Stock Letter u Pltfleld and Co's steels and rails. 1uollvdrfivatc WIN) yoRK, Dec. iii-Accord- w Jones Prime Minister _. Dvgm make a statement in - - sitl n. 91‘ 01¢ “ffoiofilan opapers the Kin! _ e Me ma“; m favor of the Duke and paw Jones reports that "i! Y“... market ore-fwd 011 mfilrilted volu '18 but later r1111 ‘e ‘o-nmg impltrlcd. In view ‘he mmm of the London mar- TORONTO, Dec. l0—Aldermao—- Announcement is made of plans foi- stepping up the prrent mill from 500 to 1,000 tons daily cap- acity. Federal Kirkland-Looks higher. It was a strong feature yesterday with an excellent calibre of buy- ing in evidence. As stated in re- cent personal wires feel this stock has definite attraction as a spec- Nd c 11°15 111° t‘ l. o1 the New uiiiuoii. t and Si; aSéSxi-dny we would Yiifktmzn mamm- m-m o ‘ Tashota-Shareholders yester- mie hesitation un- day approved increare in author- ‘ 171E553]! sstgitement is made, ‘ill B“! market look: as though it it! 111° dc a temporary bottom at “ma we wguld expect better lmllam. in me day. Para- es directors are scheduled to lillllfioday m take dividend action the 51x per cent preferred stock. Izwoulti favor the farm imple- oiLi, amusements, cing will probably be announced. Rouyn Reward—Work is report- ed to have started yesterday at Rouyn Reward the property ad- joining Pontiac and Powell Rouyn. A crew is understood to be at sur- face work preparatory to diamond drilling. or less were quoted at 85 1-2 to 30 cents a dozen for A large. 28 for A medium, 27 for A pullets, 23 1-2 to25 l-2 for grade B and 22 to 23 for C. Butter wa". quoted at 25 to 25 1-2 cents per pound for carlots or less of no i while lots to retailers were 28 to 26 i-2 for solids and 26 1-2 to 27 for prints. 1 Exchange '5 h Pitileld a Co $333211: oily Montreal Stock’ mhmge and Curb Market), t’l Stock Exchange Close (Supplied by Pltficld k Co, members of Montreal Stock Exchange and Curb Market) llnckl Abitlbl Asbestos Bnlhnrat Beaubarnoil Bell Brazilian Brow (‘orp Can Ilruck Silk Ii i.‘ Pow A lfullrl Prod Pun (fern Can Nor Pr (‘nu (‘nr Fri Cari (fern Can Ilydo llfd (Tan Inrl Al A 1i Doru (‘our I'M Ilorn Bridge Dom St B Diim Stores Dom Tex lion illni: Elcc A B Ifrusor Co Found l‘1i " Gcn St Wares f-li Goodyear How Smith lrit Ilmv I'M r linkc “Hulda , 3!‘- Mnsi-cy ilrir . 7 7 .\l1‘i‘oll Ft Mil Pun‘ Nat Brow Nat St (‘irr .\'or.1iill:i Pow Corp l"\ QucIn-c lH-w ' Sliuwlnlgan St Law Sou (‘an l’ J uilil, Fl nf (‘an St of (‘nu PM 1a 111,; c".- “1 FINANCE 24s". ‘J-l y. BY FREDERICK GARDNER _ Associated Press Financial Writer l" NEW YORK, Dec. l0 — (AP) —- With tension over the British cri- sis limited by abdication of the King, and confidence in further" domestic business recovery renewed selected stocks rallied sharply in today's market. Steels, mines and specialties for- ged ahead for gains of l to 2 points. with a few jumping 5 or so. WASHINGTON, Dec. l0—(AP)— Loans on securities to brokers and dealers, held by weekly reporting member banks in New York City, were reported today by thu Federal Reserve Board to have totalled $1,- 059.000,000 for the week ending yes- terday, an increase of $57,000,000. Loans for the corresponding week a year ago totalled $950,000,030. NEW YORK, Dec. 10 - (GP) — Official control, traders saidmain- me o - tained order in a narrow advance ‘k “n I HD8110, 1111011100811; QUO- d m Qunmcjg; ggglnstthc ; gumlllilltil- mus emu dollar following l!“ 11-11-25 1-8 to .25 1-2. statement of Britafnboonstitution- . mediucartons: A-l large .453 .1 "1535 tot-mm - n,“ 431“ 515- 5'1 P111193! 33- The pound sterling advanced I-2 32 - 54119171111111 ~34} A9111‘ ccilt to $4.90 7-16, Frciicli frurai “'27 ‘lam 29 t0 B0: B-meil- rc > o» i-s cf a (Till. lo 1-2 ' to ‘n: c '25- m"; .110 Nrtlicrlaiids guilrll- closed uowrizmnmfln‘ 7"") .05 of a cent; higher. C slinll [ind UnChEALI D"- 1°-'P1'1¢" fluids hcrdcncd l-il to 100 l-3. 0m "w! i» slirhilv lower NDW YORK. n». 1o _ (AP! - imam m!“ ‘mm Pmduw 11'1"‘ Cotlm fvturcs vlrisrd vcry stcudy u,“ 1' “ q"1‘~"1~"“1°- today, 12 lo "11 lligllcv. new irr-l "1 css shipments in carlots ii Wcsirrli 1mm, 7's! Air li yo rli» luollvcrm Produce Prices Momma, Dec. 1o _ (c?) - ""1911. Nor. 1 $1.20; No. 2 ‘"11 NO- l $1.22; N0. 4 $1.111 1-1; "n; 5 81.16: barley, C.W. No. 3 "I i110. 5 77; oats, feed. No. 1 .52 *1: N0. 2 .54 1-2; oats, C.W. No. 1501-2, wring wheat patents, k .0: seconds $6.40; bakers 11- winter wheat patents, choice B “.85; white corn 88,50. "l1- wn $31.25; shorts, ton ‘.515, mlddllngs, ton cams; i-oueo < bile so lbs. $3.45; hiiy, No. 2 1°11. carlots $9 to 07; Jan. 12.40; March l . lzMnv 12.24 lo 25: July 12.07 to .08: Cci. 11.64 to C3. Spot stcady middling; 12 98 LICNTREAL, Dec. i0 - iCPl — 00005 c produce section today 1 H" "qi1.‘.cd. - ,' ['53s sp:t-— A-1 largo Sula; 1 A-mariw» 2:1: A-Illlllfii m: B- 1. f» ' l"" ‘.2 25; B-rncuiunr 23 l-lz; C, ~ . “it Que. regradcd .25 l-8 “r M l l“ ~" 22h. “(Hal n .11 i" .1 cur-r averaged twi "extra rants “l "‘ fgi- ("it Ice v.‘1'l~ Q1‘ l:"l.< urn Il"‘ ' Oil m I: V, - P. If I. (‘V 5.1 Cu". 00'», ."l.i0 s. alts. 00's $1.20 m $1- M! . (-1- to Z5. ized capitalization and new tlnan-' Sir Charles Gordon Warns, another substantial addition to the The financial statement showed total assets to be $805.l00,000 as compared with 3792.860 0C0 a year ago. with quick assets standing at $606.50’c‘.000. representing 83,27 <75 all liabilities to the public. Deposus by the public were shown at $653.- 000000, an increase of $1i600000, Profits. after ilic deduction of Domi- nion and Provincial Government taxes. amount to $3 181,501 as com- pared with 530115.212 in 1935. an in- crease of $176000. A feature was the announcement that the Rest Account had been increased to $39- 000,000 bv a. transfer of $1001.00!) from Profit and Loss Accornt, This sum of 539000.000, which had been accumulated from profits over the past 119 years and pr:- mlums on new stock issued, was held, it was explained as a protec- tion for depositors: that is. as pro- tection for deposit liabilities the Bank has not only 100"» in corn-r- vatlvely valued assets. but in addi- tlcn assets renrescntnz $38.0'l0,000 of Capital and $39,000,000 Rest. THE PRESIDENT'S ADDRESS Sir Charles Gordon, in presenting the report of the directors, drew attention to the continuance in high figures of the Bank's assets and to the relatively high liquidity of those assers, remarking: "This is the ninth annual meeting over whichl have presided. The report which was presented on the first occasion when I had the pleasure of address- ing you as President, xiamelygdii 1928, showed that our commercial lcans ntthat time amounted to45'ib of our deposits and our investments to 15%. Today the commercial loans amount to 21% and the in- vestments to 64¢. This representss. great change; in fact, so great has been the change that a large portion of our business has bsccme, for the time being almost of the nature of an investment trust. In a recent visit to New York I found the same conditions existing with the larger institutions there. In their case, however, interest is paid upon less than one-tenth of the deposits plac- ed with them and therefore they are able to loan funds at a very low rate of interest—in fact, at a‘.- most any rate-and still meet the’: overhead. The reverse is the case ill Canada, as while no interest is paid on deposits in our current depart- ment. the largci- volume of money is placed in the savings department. with the result that we pay interest upon nearly seven-tenths of our total deposits. This interest must be earned. in addition to the Banks cost of operating, before there can be any rcturn to shareholders. Wc I l l l l l l l l 110cc that with the encouragement- whlclr improving trade will give to business enterprise. the demand for banking accommodation will increa- se and that at our next meeting wc shall be ablc to report u better bal- ance bclwcrii commercial loans and ‘gilt-cdgcd investments." A YEAR 0F RECOVERY Tlirnirlg lo a review 0f the tvadc and inrlu." "y of Canada. lic said: “It lms bccn said ihnt fam- _ today has many spokesmen, confidcwc but few. I fcchtliat Cll'Cl.llTiSI'."illC"S warrant my speaking with more cori- fldcnce than for several years p‘st regarding conditions in this country. this view being based to a great ex- lent on personal observation. In mv recent. trip to the Pacific Coast I found a marked improvement over the conditions which prcvailrd at the time of my previous tour two {mars ago. The _ycar' under review can truly be said to be a year 0i recovery in which with certain re- servatlons. it- can be claimcd that every province of the Dominion has participated. If‘ I were preaching a sermon instead of addressing a meeting of shareholders, I would sav that a, note o.‘ Sursum Corda-—L ft up your hearty-should strike a responsive chord eVG-Wlvllele "0111 the Atlantic to the Pacific. Five fundamental feiit-urcs are outstand- ing in any review of the yearspro- gross. They are: the recovery in agriculture. tlio cxt.r1\o_rdlrl'i1'.i'i1("1Y- icy in mining. tlic all-time record_ in newgprint produrfon. tlic rratifilflil incrpasf! in 11cc tourist trade. the striking expansion in our eXPOW trade." I-lc showed how thesc features were reflected irr the conditions cirr- icntly obtalriingiritlie various prim- lnces. observing 111 conncclsxon W1.“ tho Prairie Provinces that‘ an l-lfl has bccn given to the who c West by the bcst wheat price level 111 3701115- the value of this V981‘? 91°11 13°11‘? estimated at $l97000000 as com- pared with $156.000.000 1°81- T801‘- An acldcd factor in the uplift is an cxmrt demand which is raurldkil 11's; glpnlfnsl; the depressing cl ud tin has overshadowed the market in the form of the ‘large carry-Ovfl‘ 1'1"" - . rs. MITIPIII; yglJlLDING INDUSTRY While this had been a vclllr Gov“... Lhy-Qughflllt Canada. rslllillllcd Ill("‘.‘ iverc ir-lwliallt 11l- Eiiistrics ill which vcc-avzlvy W05 01115’ now becoming 00111119111- Thoy “m” llic building inausiry and gllliilrlmggf known us" tlic 001111-111 80° 5 i d “its by \\‘lllClI was meant n us- irics’ which supply the requirements forhproduction. "Buildillil 11nd c1191‘ Liil goods ludu-lries are nniollil 111'"! first to fcol ll depression ‘and U"! mgr, to rccovcr.“ he said. We are approirchlirg the time when 3:10P‘ swing in thcsc industries may be iiiiticiplllcd. T-lv best way to Siilglli- lute this and to bring our w oe economic llfc i3 a balance is to in- iroducc an elcnient of certainty about tho future into the picture. I f,“ glad to OlL-ETVB that this feel- ‘mg apparently permeates the ad- ministration at Ottawa." He colnniczidcd tire Home Im- provement Plan put forward by the Donfllllon Government. acting on lhe recommcndationofthe Nation- M Employment Commlssibhidei-illl- c'i its scope and the co-operation "lhlch tile lldllks were giving w it, ‘lild ioiicherlon the plan for devel- oping low cost houslugto which at- o-inglon was now being ven by the National Employment- 01l- trong expressions of confidence in keynote of the proceedings at. the annual meeting of the shareholder: of the Bank of Mcnlreal, held a-t the head office of the Bank in Montreal on December 7. The meeting v. as also informed that the bank is-in an ex- posits had been further protectid by reserve account. Sir Charles G. B. E., president, was in the chair and the 119th annual report which waspresented was unanimously approved. trcmely strong position, and that de THE (IHAl{l.i)'l‘l_‘i_'./\_:{l§' GUARDIAN _, However, Against Policies That Would Bring Credit of Country Into Disrepute the outlook ln Canada were the Gordon, adding: "The adoption by the Domi- nion Govemment of a, broad hous- ing policy of this nature should withopt question have a consider- able effect in putting to work mcn whom the depression has hltmore severely than almost any other type of Canadian citizen," EXPORT TRADE Sir Charles proceeded to deal ivlih the continued expansion of Canada's external trade and the growth to substantial proportions of the favourable balance. "The excess of exportsflhe said "is, of course, decidedly advantage- ous to the Dominion as a. debtor country and at thesame time there is in the continued upward movc- ment of this trade a factor of the utmost importance in its bearing upon the general industrial welfare of Canada. It is particularly grati- fying to note that the products of agriculture are regaining their nor- mal place in the export list. The reciprocity agreement with the Un- ited States, which became operat- ive at the first of the year, has con- tributed to a heavier exchange of products between our neighbours and ourselves, and the results on the whole appear to be satisfact- ory. The Canada-United Kingdom trade agreement of 1932 is due for revision next year and it is gener- ally assumed that the Dominion will be asked to augment its con- cession to British exporters. The present ratio of trade between Can- ada and the United Kingdom cre- ates a prlma facie case in support of such unanticipated request, but the Canadian Government will have to consider, as, indeed, is necessary in all such negotiations. the calcu- lable effects of new concessions upon domestic manufacturing industries and domestic industrial employ- ment."_ Classrng wheat, the tourist traffic, newsprint and mineral products as the four most important items en- tering into our international trade, he dwelt more particularly on mineral products. " A NEW MAJOR. MOVEMENT "Thls country," he remarked. "is now well launched upon what is un- doubtedly another major movement in the history of her development. I refer to the mining of metals. Our physical heritage of minerals is being appreciated now that the whole world has entered upon an agc in which metals are so urgently required for many new purposes. The activity in mining such mcmls as gold, copper, nickel, lead and zinc is phenomenal. It has been estim- ated that atotal of more than $200.- 000.000 annually is being placed in circulation by the mining industry. of which in exccss of $100,000,000 goes to payrolls of mining emp'oyces and up\vardsof$75,000,m0 for sup- plies and equipment. This does not trike into account dividends and runny capital cxpcirditures, nor (loos itinclude taxes paid to governments or ihc industry's large payments for transportation service, with the resulting bmiefit to o".1i" railwryvs. With regard to capital expenditures, 1 would like to emphasize the point ihat the activity in mining devel- opment which we are now witnes- sing would be impomible were not capital, that great and little-under- stood instrument of modern indus- try. available. It is capital which finances the prospector, capital which provides machinery and ex- plosives, cnpiial which sink shafts, capital which takes chances on finding hidden treasure and, when that treasure is found, it is capital which provides the means of mak- ing the stubbornrocks yield upthat treasure. A recent survey which the Bank has made suggests that of all Canadian industries that ofmlnlirg, with its collateral activities, is the greatest contributor to the federal income tax." BALANCED BUDGET IN SIGIIT AT 0'l‘TA\VA Touching upon how the state of Dominion Government finances had refiectcd the change that has rc- cently come over business and other conditions, he said: “Total federal receipts for the fiscal ycar to Octo- ber 31st were nearly $268,000,000, an increase 01011000000 over the same period of last year, the largest sin- glc increase being registered in in- come tux collections. Slmriltancous- ly, total cxpc-udlturcs wcre down from $280,000,000 to $275,000,000, due largely to the reduction in the Can- adian National Railways deficit and decreased relief expenditures. Thus. up to October 31st. the excess of total expenditures over total rove- nue is only 07.000.11.00. If the pres- ent rate of revenue receipts is main- gd, with accompanying mea- sures of operating economy, thereis every indication that the deficit of the Dominion Government for the present fiscal year, aside from lCans and investmenls which prcslrmahlv may be classed rs rrcuvcrarlc, will be reduced lo a relatively" small figiirc. . “When \v." corridor that during tlic past six years these deflcltshavc averaged OVCI‘ $133,300,000 per year,’ hf‘, ri-markcd. “ii. is gratifying t0 note that. at ‘nst- thcrc is in sight. a bRlflilCPd budget-the goal 0f svcrv finance iniriisi ci" and the cornerstone of any pl'(2f'1‘i.1l"l(‘ for restc“! birslncss cuniidcnr‘ and thr ircu flirictlzlniirg oi pri Jtc elltripu ' T1115 rmruvav T“ ‘ With respect to brought in by thc~ stituting a board c for the inanagcmc . dlan National Railv of three trustees iiiiu. _‘ late GOVOTIIIIICIIt-Eill Cu.‘ l I "It is at yct too early to apprnznc the value of this cliarlflt of svsiclll. although the appointments 161 thr Board have been such as to lic general approval. It is co".i .11 e d.that the new directors wil ta e it as their duty to exerum :'\- ery effort to redircc the .. .'. annual deficit .0. the publicly calm-ii ; railway s-iysnom, T.» some extent this, may possibly be accomplished ii‘: measures of lntemal economy. Tol SIR CHARLES GORDON, G. B. E. some extent savings can probably be made by measures ofiurthci" co- operation with the Clliliillflil Pacific Railway, which, presumably, will be ready to assist ill every proper fashion." . As to the announcement of the Government that it had undercon- sideratlon a measure to provide for o. revision of the capiral structure of the Canadian Naiional Pail- vvuys, he said such a proposal was commendable if a revision of the railway accounts to bring theminto keeping with accepted accounting practices was necessary, but he added: “Unfortunately, there is always the possibility" that, in en- In presenting the 119th annual W. A. Bog. speaking on behalf of ager, Jackson Dodds. pointed out feature o.’ banking, not only in Ca mercial lcans and, as a result, the turned to investing in securities. “A number of factors have coil- bank credit." he said. facilities have been instrurnentalln reducing the size of inventories of both raw materials and finished goods carried by ,1ll1511l'355 011191‘ prises, thus lessening the worklilu capital necessary to finance 0119111“ tions. Another factor has been tilil-i business corporations have been ublc to obtain their requirements by means of public financing encour- aged by the prevailing lou level of interest rates. These steps 111W concenti-ationof busincssiiito large companies has, in many instances, enabled the various components ul these corporations to arrange thcir financing through the parent organ- izations, which generally have been deavouring to havcthc railway ap- pear self-supporting, some may urge that part of its indebtedness SlIOIIAd be transferred to the general ac- counts of the Dominion. There is rhus a. vcry real danger" that the accuracy" and completeness of the record of publicly owned and oper- ated trausportalionulill be obscur- ed. While it may not be palatable from the point of viewof those dir- ectly "concerned in the results of the Canadian N ationrrli Railways, a strict account is necessary to record fully the total losses. the deb.s and the annual deficits which have resulted, I11 the iiricrcst of the proper fro,- ming of future policies ivitli respect lo tne Canadian National Railways, it is to be hoped that no changes will be made in sucli accounts which ivcluld fend l0 make more dif- ficult a. proper understanding of the true fuels of the railway situation. "The iaublicly and privately own- ed railways will benefit ‘from the increasing volume of business which is evident in Canada. It is to be hoped that this relief for the tat;- pirvcrs will be considerable. but I wish to record again the opinion that prudent administration of the public affairs requires that we should give the most careful con- sidcration to some more complete and permanent solution of n grave national problem that can be ob- tallied by any expected increase in earnings. It is urgcntly necessary that every effort be made to re- dricc to the minimum the burden placed on the citizens and tax-pay- crs of this country by the maint- enance 0i‘ an unnecessary mileage of’ railways.” THE CREDIT OF THE DOMINION Referring to his remarks at the last annual mcctingonihe change of Government tliul. had occurrcu 11151 Prcvoiuslv. he said: "I think you will agrce that in the interim the airuirs o1 the UOIIIlZIIOII have been ill good lrairds, butI am sorry that 1' cannot say us‘ lllllCll for ail of our provinces. Our shareholders are all aware of the changes which have been taking place inthe vari- ous provinces wirii ll visw r0 better- lilg rlicii" financial liifklltlll with re- garclto debts. You will have your own idvzis on llrn- sllbjlfil. icrpiiriia- tion, which is nothing more orlcss than a breach of conrruchrs some- iimcs talked about, mldlcinrnotsee llO\\'l.li1.§‘ llncof ihuirghtcairbe pur- sired without the creditor rho whole Llciirlrrroir coming lrltc disrcpute," He also touched on tlhlrisciiithc slack market that IHIGDOCII contin- uous for some lll0lltilfi, expressing tho hope "that the government may not; continue i0 :1 point whore we shall. “fitness, even 1n small (lcirrcc, s recurrence of those disastrous experiences that prcccdcd lhc do- pression from which we are now emerging." well provided with cash resources. Another development has been lhe tendency for manufacturers’ to sell direct to retailers and so ehminatc, to a large extent, the services of wholesalers, who were 011cc impor- Lant borrowers from banks. Wilh a world-wide declining price level, the funds required to finance a given physical volume of goodsor COfll- unodities have been appreciably re- duced and, accordingly, there has been a, corresponding decline in the demand for bank credit. COURSE 01-‘ COMMERCIAL LOANS "In view of the various factors that affect the situation. it is not possible to forecast the future trend in the demand for bank loans. While the decrease attributable to changes in production technique may be permanent, this cannot be said with regardto many other" fac- tors entering into the situation. As the volume of business activity in- creases, companies will doubtless find it necessary to utilize existing liquid resources in plant or other capital expansion and, as such re- sources are thus utilized, recourse will again be had to bank barrow- lngs for inventory and other cur- rent requirements. Extenswe capi- tai expansion normally has the terr- dency to stlfi‘en money rates, and short-term borrowing from banks for working capital purposes will be relatively cheaper than. obtaining funds through the issue of securi- ties, especially if the requirements of the borrower are of o, seasonal nature. The upward movement in the level of prices will also tend to increase the demand for bank bor- rowings and firm 11p in crest rates. “Even if the future should reveal that well-established companies in- dividually will require less bank credit than in the pasna return of confidence should fostcrrrew enter- prises and there should bea tend- ency Ior the demand for commer- cial loans to increase in the aggre- gate. BANKS INVESTMENT POLICY Upon the question of bank invcst- merits, Mr. Bog said the abnormally high ratio of investments to total HSSELS. which had bccumc a feature of bank balance sheets. called er. When commercial problem of investing in suiurliirlsc- curitics was comparatively simple. Then, lic t an optimistic note. saying "We still have problems to face but. as n‘- gards these problems I szand squa- rely on the opposite side of the IL‘ c:- from the pessimist; ‘and 1 bcli v i that, with the cxpcr" c gained in the past feiv years. vi".- in U." will steadily work our ivay toward Sir Charles closed his remarks (m W. A. BOG better things." JACKSON DODDS Banker lleprccatos Influences weakening sanctity of Contracts “rize two grcntz-st d1 positaries for" witlisuch SCll-dflllillUYCPilIC course thi- savings of Canadians in all walks of life are the banks and in- ‘-ll‘.“ll{‘(‘ companies," dcclarcd W. A- L . _ p rgr l. manager, at the Bank of ivlri re ‘ ruurrnl rvcrtrlz. ~ 1 i- ll“ "Mil! “Tllfl'l‘ were," 0'15. over" 4,600,000 chart ‘rcd banks of years to ensure a mcn-urn of securit in old age or to Ilfflflili‘ for depcn ents after death is nird al- ways has been the first ca" idcra- tlsn of this bank and sho id also bc that of all G."l\"t1"i1ri1cr" "thori- iles. In most instances. tli "c sav- ings are not large and a lo-"s ofonly tributed to the reduced need for l merit. Allhouglr formerly tlic qu "The specda I I _ L du tio proccssesan only a matter o re arrvc impor- lggrege8111:1110swlftelltransportation ance, the yield on short-term Do- lessencd [he necessity for" borroiv-" 'l 111g from banks. Furthcrmorc, lilo- for great care on the part of the bank- 1 loans vvc-rc; the principal source of rcvcrluc, tlic » Economic Situation and Prsopects Reviewed by Bankers Horses oi "Recovery Once lllore in Ascendant Says Bank of Montreal President General Managers Discuss liommercial Loan Situation REPORT IMPROVED BUSINESS AND FEELING? OF CONFIDENCE financial repori to the slnrexdders hlnLself and his fellow general llYlll- , that during the past fcw years a rrada but also Great Britmn and the United States, had been the regrettable decline in the demand for coni- banks to an incrcas ng dcgrce had lgations of the Dominion Govern- tion of income from irivcrtuicrlis 1 minion bonds was high in compar- ison with the return on these scc- urlties today. He pointcrl out lira. , thcre was an clement of danger in ‘ following. cvcu tcinpo1"aril_v,z1 pili- 1ic_v of long-term iiivr-"lncnt, and added: "The policy followed as rc- , gards our own invcstinczrts has . I been to purchase the shorter tern , securities with the intention of, 1 holding thcm until they fall duinl ‘ and arranging the maturities lll| ch a mariner rhat at intcrvalsl ‘oughout tire yearn sullstantarill " volume of funds becomes available 1 for" commercial purposes should the ; demand arise. In illustration of tlic y ‘sound principles eriunc atcd abovc. )47-49':C of our securiiic.» rnaturc within two years, and only 10.59" thereof mature subsequent to 31s‘. October, 1943. In other words, our" .' holdings are so arranged as to sc- l cure the utmost protection against fluctuation in the level of bondl prices and to provide for tlic nor- 1 rnal demands for commercial loans as and when required.” SAVINGS ACCOUNTS PARTICU- LARLY VALUED Speaking on the reduction of in- l tcrcst on savings (lcposiis to 1211,.- per annum -— the third, reduction , since May, 1933.110 said the rcduc-l‘ tron had been made with reluctance, and it was only the continued de- cline in the yield on securities and l the low level of commercial loans that had compelled the banks to take this step. He added: “One rice-d only ' instance that, on the 31st October, 1935, the yield on three month Do- i minion Government Treasury Bills’ was 1,3017%; at the same date this year an issue was made at an ave- rage rate of .73'é, and an even Iow- er rate of .643',2i September. "'1 would repeat that these reduc- tions in savings interest rates were made with great reluctance as any action that curbs the incentive to thrift is detrimental to the welfare of the community. In most cases, the first stepin building up reserves for" ‘the rainy day is through the medium of a savings account, and we particularly value such accounw, regardless of the initial balancqas we consider that the principles of thrift instilled preferably at an early age are of irrcalculable value to thc- country as a whole and the depos- rtor inparticular." Tuming to the question of legis- lation affecting thesanciiiy oi con- tracis, Mr. B05 declared that any P0116)’ which would tend to wcakcn the binding effect of such agrcc- merits W85 to be deprecated, as. he observed, "such a policy would strike at the vcry core of our ecoir- , omrc order. for when there is lack of confidence, a slackcningog busg. ness activity takes place. bringing unemployment in its train." CREDIT ABROAD _ "The effect on our" credit abroad rs also of pammoiint considcrtaion, Thcrc 1s a. large volunrc of foreign capital invested in Canada. I\‘lll(‘ll has contributed very materially m- wards building up the country and we may" be sure that we shall coir- , tunic to need such capital in our. l future (lcveiopnrent. At all events.’ l it vmuld be imprudent in the cx-1 foster any legislation was recorded in which would irrisettic those foreign l have rilrcady irr a‘, l investors who tangible way shown their c0nfld-‘ once in Cdllfldfl. | fAt this point it would be per- tiiicnt to state; thatrlie bank atlopts, :1 sympathetic aititudclowards bor-, rowers in distress. Where borrow. crs. tliroirgh unfortunate crrcum—1 stances beyond. their control. are‘ unable to inc-ct theirobligationsrhc‘ 1 bank shoivs I-VGTY Consideration, A; j the seine time, it cxpccls xliiil those who are able to do so will l carry out their undertakings." l A WORD 0N CORPORATION , FINANCING Having described thc course oi, ‘ financing during ilic your" followcd‘ by the rcdcral Government, he rc- j ferred torssuesfloated by Provincial , and Municipal Governments and to corporation and railroad financing, l remarking: “A feature of some of these refinancing operations has been the issuance in part of short- term serial bonds Such a procedure in some cases can no doubt beJust- ifled. My belief is. however. that iii aiming at low iritercstchargcs some companies may have ovcrlookul 1.: fact that their working caplial 1i. tioii would be less vulnerable 1i .121 amount borrowed had becnobruiir- cd by means of longer ienn issues to be retired by the operations of a reasonable annual sinking fluid." He also referred to inc lllI]lOI'l;illC8 of stability of cxch1ri1gc,rcmar"king that thcre was indication of nlmncl lowardsthe resumption of mi ulter- national money standard based in some form on gold. "Thc npprc- hensions cxpi-oswd in the past that there is insufficient. gold in exist/circa for the purpose of a return to an in- tcmatrorral gold standard would now appear to have losttheir force," he 501d. adding: “With the rise in the Drlce of gold since 193i, production has been accelerated corrsldcrablv. The mivance in the price of ilfild and the hlglicr lcvcl of production, together with the rclcnse n1 gold hoards in the East have been iri- strumental in increasing the gold reservesof Central Banks and Gov- ernments of the world from about $i1,275,000,000 in September, 1931, to roughly 021.770.000.000 in Sept- ember. 1938 (using the higher price of 801d at the latter date). In the same period gold holdings of the United States have risen from $4,- c,:.'.i. 02.090,- a small portion of the principal is 364,000,000 to $10,845,000,000 __ and _ nililf,‘ illl l w". of sufficient in nnny cases to bring since September the flgurg has l l1" chi-ii ac : .L. 1t ls want and anxiety’. Passed the mark of eleven thous- _» ~ "lllll “Any policy which would loud to and million. The increased produc- ~ - ,~ i 1"} -'.i iii l'i 1 weaken the sanctity of co livacls 1s tion of gold by Canada has helped ‘u.- J-“d-"w 0.1 l to be deprecated as, in addition to the country materially in meeting _.;~. l‘! pioectctl liargreiingxthosc whohcan least 11113:‘! its foreign obligations." [\|l\"il‘.li. to ov." .‘ Cl"7l"j~.l0. .0 ar east, suc a po cy wo u ,, My |,--_-. f - - ill" "itrike atrthe vcry cnrc or our ccon- wmFflzgsNAgnigtégéma 0F 1ui,,_iii,_- ll! dip . uiid policy- omlc order. for when HUT!‘ is lack holders is lmlcsv: .1 u" ‘iecurllics. The. ]"""r"‘," "r-i iii ilul sriuilvs of CFYIZI- dlililr‘, built up so laborious-y and unpmploymefit in its train." of confidence, a slackening of busi- ihw. iwlivity takes place. bringllli; Paying a hi htribulo to the loyal ‘ rciiril \lL“-\I))lii'., ll; ‘ prompfccl the m-clperatiorio the stafhnc remarm‘ F,‘ 4.1a liq-xvii. l “We in Canada Will fitmdily Work Our Way Toward [fetter 'l'liinys" ' concluding h.s rclil-llks w 111! rcinuulrs, 511" Cllilllbs‘ GQTdOI-l u; "niiilc INCH‘ Rl‘r'(l(;iIlL‘>liC|)lJ- ,;.1it1il 11.11.11?» 1111-1111;‘ implied hH-pum 1o our iutriii: “lll-bluilfl Lillil illniu 11-".- rnusr .l bu (161111! Quip-uni, or tiic lJltlgll develop- iirfcciiir; the general uull .01: lic c l1" ‘iu nil of iL-J, frull oivi: clisl-r" Lion, that the for- m.» o. lLL‘l)'C\ 3' rm.- iiilCL‘ riicrc i: Lul- ZXJJPLKlZiUl, A hide vazhw o. 111g to gin: lul , ivise uf dill." plai- uicsc facrors is flit Uflllilitlliill that there arr -cu'.s to better tirires and . 0Dst.'l'\' T‘ o1 age-old eco- iiuc laws fllllsl. lic iliu basis 01 nL/llilll pfugffinn. We still have ilroli- liiirs 1.1 racc- but, 11:, filgiifdé rliiaie problcrrls I stand squarely on lift opposite side 0i the fence from 1l1( iflcli’. . lkfiSlmiild and I lnlicve that, wit the experience giiriivd in the pas 10w ycursgve il ‘lizrula lvrll nlkflds ily work our " Lxlard better lfllilgl-" r ___;_._7___ _7 ___*"_‘=11 Bank's service irrlirllt be uztributed irr gnirt. to SOFUILIY of cmpiol T911‘ riinrii. so 1.10‘. iriliulrrlii Lion i111; r1.i uiirizzg ‘.111: pa.» 11w ycars ivncii r110 Dani; hurl tzizrrcd a surplus of staff. QOlJZLK~O1 PfOCcc riiarlcd 1 4.11.1 .1» .1 ..1 mi, no -obrari1cd y 01hr upon ik.‘(llil“lq l the gil-Ufoll mull g >3 d. 'l‘lic rc- pori, will C0111.‘ 1 l». crxll 1.11:1- ness ‘and ilrlirrrcirll survey u till Uiiiacd stztics and Great. l: and, us 1isu.i., a cl tuned re condition.» 1:1 1:11; \"- nus pi" ilIlLl Flr-vxfouiizilriii lic lrlvaludl-ri: sonic (kstuiiiirrg l "Killiblfi l" inc rrzll , cos 1n Canada, \\'ll.tll not ‘out a1 as a dclcrrcilt to rccm rircrc rs a (llSllllCL improvciiil-i 1:. blrsincss as a vvliolc ilild a 1 fidr-ncc rii c‘. 0111K.‘ nclrv Ci (‘Oll- WlNNlPrJLi. Dcc. 1o - lCPl _ Weigliry proflt-tnkiiiglook the edge 0E rhe advance on the Winnipeg grain exchange today after ivhcat prices had risen to their higiicsa levels since mid-June, 19110. A cunt llflYiillClcfl u; ihcrr viilucs. ended an nctivv 2011.101‘. cont higlicr to l-: cclii lovvcr. Buying il-Qarirsr "ibllfwO-buslicl ca- ilort sales, 1 7-8 gains at Liivcrpolil and the sale of szx cargoes lit wheat. of Llflkl10\\'11 4‘,“lQil] {Q [(33) czuly pncc riw. i, ,. ucs skidded abruptly lll a pro-cl - 111g selling flurry, Coarse grains prices cstabksnli lic-l, l-é new seasonal llkflls‘ rn Wmpn .v with wheat. D-cciribcr barley, up . . nt cnc riiiic, h ii; . llcrrrritrixl ‘l1 1 c - scvcil-_vcar 11,221 n:' of Cash-grains trading WAS with steadiness prcvalilrzg a -h "-1 WINXIPEG, Di". Closing grain " lfl —— lCP- -- 1H‘ \Vll(1l Drc. 4;; “u;- 135 5-8 r0 11-4: .1111): l2 7-8 m ii3_ Oats: Drc. 49 '.-S‘.:; Mai: 49 3-4; July ~18 l-ézi. Doc. 761-1 May 6P; .1111] 100 0, . ." 511001112 80 ' CHICAGO, Dcl‘ In late clc “nus today, wlicat col as l11_:"'i1 hcr 1i,- s‘ "9 3.3 a bmhe] Dc-ci-mlzci" bu‘. as on m" _ Porting courztiucs furrrishcd tilc chief incentive for market upturns. Canadian vvlisxl export business was estimated iu total 500,000 bushels. At the close when: was l-2 lowcr to 1-2 ccnt lllfillill‘. ‘ice. 1" 3-3 lo l-L‘: Nfay 123 7-8 fr) 12-1; com l 1-8 dmvn t0 1-~i up; I)“; 109 5-8 to 3-4: May rlcw 103 3-8 11 1-‘31 001i unchanged to 1-1 off, niiq pl'\'l\'1‘l‘_)ll$l unchanged to 22 ccriie dcarcr. cr-izk M T’L. CURB ilri-rvivi-il ll\('f l 1.. l-l and (‘h- l'rl\'illi- \\ irv, \, | , V . f [hp \,-“ Iork Moi-k llll‘ .\Innn'ciil Curl: .\|llI'|\l'l) Sloi-Ls ll . II i i..." _ll A 0i , q ll. lll srorvl _ Ford i\ _ lillp Uri _ u.‘ inn-r Pete :11, .\ii lclrcrs .\ ‘ii \\'11lkl'i' Guild M/g/vzpivc TORONTO, Dru. lil- "Cill Tilt mining FPCIIOII of lllv 'l'oi\lil'.r> (x- Cllillltli‘ rcgrsicrcd its l1 st advance of rcccirt wccks illciili" as iiic at- mospheri- Clflllftlli in in. don. Buy- ing pcrkvd lip r11 boil", QClilK rind biisc inLi-rls. Hard Rock closed l0 vflllls lliuh- or, Mining Covpointhln 2'3 npi Darkwriicr" 18 up and Yxlncouvcr 15 up. Domc rccovcrcd tv.".i 3i ..1l:= oi reccnt losses and Llikc ill". re also BUJOG 2. ~ Nornmla ri-gi-lerilrl ..ii idvarirl of ‘.2 point.- io 72 urni llll. on lily was up nearly a piiilll. ed that the high morale in the lur \lluur-l'a fur "New. i -._..-i-J:9».::ii>.r§wr‘ C ' “ ' A