T0 cool-ti: Ryintbrionan SMALL vE¢EMEP§ia.12i°-._ @061; QUOTA TIONS ‘II-IE _C_HARLOTTETOWN W GUARDIAN y PAGE FIVE __-= Livestock Monramc. o '_ __. Dominion Livestcecfk JBft-‘Iilili “e M, Y. Stock - Exchange 1.1111 * ~ i Twill» wfltigllill‘ o I N l N G Agents \Vantcd M r9 sauna‘ A m, Jlto, 1435 Mflll t . 1, h/IOHIYPJI. ca n N4- tliftl _<‘.‘.111'.1'y 110mg Gvnritiiii, L-ta-lfifll. strayed ¥*.111T\~|_;n_ " ~——~ -——-~'- _-~——— —-i~-- fffi<flllnlfle‘l‘lyfllllli‘ldlfltlwgEgrllli srnavco maroon. BLACK. 1w l"? “llll hart-time sesrvicg Give voars on my vf°lnl~iil~j~ 11111;; 111 , ' ' ' gebe-lfi 1w! . Pmlnillflrlhiflgnghe‘xlilaslgslliwtfa glilttilnfelatl‘ ‘Archie Chap- cmflllnnv, 1.1111111“, R s_ p91‘ North Granville. _1.;2-12- _ b83-12;3_-31. r; ____y FTHR SAIJE A rsw EXCEPTIONALLY rm: cross FOX P . Muted with your Silvers will produce tine crosse Willi Ireok white ioce foxes may produce the lYPe "l" moods such high prices. Cross iox pelts enter the Wis: DUTY FREE and command good 915°"- p 1.20 FRANK, Sbtillipfllli i‘ UPS s; motod r com- United I‘. E. I. Montreal Stock Exchange ~ __._ ported there were 108 cattle rail . (txiiiiiillan Press) §§§"§al*v£lg1rnbs.al1.014 ll es ~.iii:l~ (Qimamjn ha.) s e 1 - ~ Close Montreal livestock mallltetsit ‘$0.1M famk‘ m“ u 2 ! Grass calves were about 25 ceIits 1331121515111 15g b‘ 1 1- cwei- other kinds n -'~- - - lg I12 aftgiélégls rtmgedlltrom $350 l” “"25 C“ 0mm!“ o 1-4‘ _ 5 ° Q1141 W. There were no Coll Car Found 1 g i: Ifgldl Aedllew d cows made $5.50 Can Car Pfd 22 76 a4 gind m um lnds from $4.50 t~ s5 l Can Pacific 5 1-4 75 élcmmon biltffihfifs down to s3, lCan steamship 4 1-2 _ . anners and cutters $2 75 p, Celanese 39 1.2 35 1 4 Common bulls mostly $3115 u, gons gmeltpfd 39 - l om ca go g3 2:3 Veal calves ranged frcm $1150 to Dom Bridge g1 1-2 34 b: $11 with three choce veal; up to Dom Steel B 9 3-5 37.14 $11.50. Grassers were .25 cents Dom Textile 33 >13 L8 lower. selling mostly for $4.50 w Dryden 51.3 16 ma $4.75. How Smith 14 1-9. 21 34 Good ewes and wtcthors were $10, 11111) Tob 14 33 b2 Cults and bucks $8 and SIIEQD $350 Int Nickel l 34 3-4 3B 34 toHM. h fililssgwfzilirrrls 2g 4, B ‘ilgxigge $1122 ggeetcriuaé s11 for Nat Bre- . ' ~ - - .0 u W $9 g? i: A_ drew $1 Der hog prcmluI-rl vrillitlei Iwrlml-la 56 i-8 m 14 discounts on off grades. sows were ggxélnlcggp e 1'5 l“ :2 $5.50 with a few young sow,- SL Lawgcom 1g a-‘ '- _________§_ S! Lew Pro 1s 1-2 St of Can 14 1 c b GIIRRENGIES s‘ °‘ " M°"""" "' MINING .. it r mow YORK. Dec, 3—(CP)—'I'h€ ‘I'm m‘ m“) m", mllgd lépélg‘ dollar gllflkllllf! free ___ r15 flfifl I050 T15 y 0n the 6 1.3 FYITBiEH intent-nee Market today, i mm§9§'“$§ 33m) 14 1-4 ThedFar Eastern currency ad- stocks ’ ' mo“ l8 3-4 llarlfélatigil ca) athcentutcii 23.64 cents Acmg Q11 m i2 1-4 n fl e n ted States Ajax O11 21 ._ dollar and Sterling gamed 1-2 Aldcrmuc 15 10 1-2 cent to $4.04. The Canadian dol- Anglo Cdn 55 ._ lar was a trifle lower at 8G 7-11 Anglo Huron Z25 9 1-4 cents. (Ottawa Foreign Exchange Arntfiled 3 l4 1 2 Conttrgl Boar?) rate 9.09-8.91 per Aunor Gold 210 2 - cen scoun . l Bagamac 11 — —~—— Bankfield B gcalfEx 1 5 5-3 on 1e 10 Cram Bldlmd 12 Market Al‘ A r gg-lyg/Ics g; 1-2 ——-— BraIorne 995 CHICAGQ, Dec. 3-—(A1f)—-Whcat ‘Broulan g4 futures PTIECS vyere COIlfIIIIGgI tho a gulf Ajnk 435 - narrow ra 111g range o a ou n‘, a E in 14.5 ——~ til". razor: .. .12 . i“ (- d1 pugs) c rm spoa 1c. y, ‘c c n" ' "1 miiilll.‘ illil rlriltiktiallillglwl; base 90 1-8. up 5-8 cents. a1. t1:c_ (in t; lCas Trelh 55 niciuis .i1\r1 indusirials lower; bg5l- bul- wgsbuxbé? d“) "Ital" l Y gglc 1?? ' ‘. ‘ ." d . a ‘Vance an a c own o tun‘ - “m” fill? iiviiii gold stocks at 89 3-8—1-2. Oillel’ WIYQSI. fillfl Jli cliestci 12a ,0," hmugh-j-h |owu_ corn futures closed near thc day‘- lCf-lflhflllolll‘ 84 "iTIi-flvliivkfi closed umhanl- liiws- lconlamm 14° H‘ ‘ ’ Wheat ckscld unchanged to I l-2 l: -.__, stl er ta 11.1011: s 111i ~y M‘: ‘mkslqslgt"lt‘nd!llq)fffi:ubglif ‘prlxcesovlgeoenlbcl? so 3-8 . Mar lllilillf‘ 011 25 "g a6 7-11-87: corn 1-2-7-8 . .15 off. ~ Iyvqursue a ___ Dfifémbel‘ c1 5-8-—l-2. May so r-algflstyM-"l 290 .34; and cots 3-11-11-4 lower. 223 e ~ - - . I 3__(CP _ I<cd Knk 4 1.2 PFOdUCB PTICBS prigfcmcved w H)‘ n llfrancocul" 41 1 4 narrow lmits today 011 tn- Wiimi- 1C. . ‘ , ' _ , _ 9 1 L, i ‘OHS Lake 39 11.. Dec. a-(crl- ‘V’, ugi‘“.;?3_-.§‘l‘.‘if“‘l“i¢i.$‘ IoHle-tl ceitll lamgali’ 15 1-2 u ‘ken prices here today. lower with Deccntbol‘ at 1a 1-8. May l Cunngagold )3 a by tlio DJHIHIOU - '11 1-8 and Jilly 7a 3-4 vfllitS. 1 ‘ _‘ 46 1"- 01 AHICUIIUTQ follow" B m Aim-ivy“ 111\Q'-"fl1\f"d w th l Hfilcmw 2 - lifwt graze‘ flcrrarnegy nrjclég the lzc-glgrti ll1.llllll,1ill1 lcv- l fgfk pr J cg price. 3 : rst gfa e ‘e1- : Ho“, , ‘o st .1 -\ m"; c. 32 1-2: Qlle- Cram close: F mfg“ Mm g5 1_-, lli i l ‘I.1li'iZ€fI. current re- wmali Dm- 73 1.315, May i7 1-8 vlckcl - _ , l l 34 3-4 top. 111cc 11 3-4. Quebec no 2, 30 B_ July 7g 3.4. Jack ‘v31 31 : 1r r iio_l pastcurlwd. while- 9M5. DN- 33 1.g_ 311p,- 3: fi-llA. Kpn- Add 355 .1 pllcr, (Josh. 32 1-8;_ "__- Julv 31 1-4A. _ . Lzittrshore 19 3.4 1-4: Qu.bcc no 2, flesh, Bay-Ry; Drc 43B, I\'I.:_v 43 3-813. 1 mam“. 509 . s1 1-2. July 41 3-412. , li..._ii.~i Cad 7 3-», $10111 white. current ___,- ————— ——- L“1lf}h t 51 w; 13 lliglfig-rlgel-llalilqcsl- - lli/liile r. 1. i1. ice: . - — ~ ocnssa ' l jlilte ard colored, whcle- 23$ ta. q price, 14. Quebec - 59 cokrrd. 1 lrrlent Jrglglpt 111; 11:1. 171 3-4: who esa e c ng —~—-—- 117 pri-s. l-i ‘ (Canadian Press) _ _ 53 i-iigéi-Ll““iélliifl‘”li‘li‘ié‘.“ Ail-dill‘; Stocks ("W i.“ '. 1 A-cuvets 82 » 311 B-— Canada T 2 nal 24 1-2 commerce l” ' 56 a-i l“ no 1 75's amntreal 192 30 - NB mountain Royal m“ I15 r11 ' ~'~”*- PE! cobblers no 1 Nova Scotin '" lOlnPeu 15 1-8 - _ -_ p131 mounmin, m 1 -———-—-————— lPr-lncul‘ 141 Keep Minard's In the home. ‘Pandora 3 ‘ ._ __ Partancn 3 ‘*" ‘" ~—~~— ' ‘ -—d__— Tavlnaster 24 Pcrron Gold 171 . glck Crow _ , _ ioiiccl" hilliflfllsillg “alt-S . Payable I" Advance ggxlglla 10g l P "c t n 320 Mimimurn Chlrle for Any ll|'""”'“'n" 25 can“ nlensnoGold H b2 ~ _ - . I 4- w tern and Eastern local.- 1st Afllli 9 r1122‘t-.11<"*11..::.;';t..,°: P".1:'.-:..-iif. oi- oi tlihsiiit-il 3c Incl‘ word; lri Mcmorium Notices 70o pci inch; this "I lSlllld River 5 3-4 rliii-iii Illlll siiliniiiil omit-in Cards. m, so 1w "Mm"- ‘Immst "l ls-“WQOY 42 1-2 toiiiliila-ncc 70o per inch. Wedding elllllilmenl w w"'",‘\” h" ‘u ifillmll“ so and 10 rents for every additional 3 words. Notices 0| ‘fir-inks "i" nlglna 760 l1 i ii. 10c oer Inch or to a r d l- “ “I. *“b’"‘lm°"; 515°“ 4'9 1 4 \l11i‘t‘1.'l In t W01’ . l! - "arts or: inch Address and Presentation $1.00. Jtlirr ra cs n sxlave Lake r9 "‘“lIr1\IlI1Il. l bleep Rock 194 lglirdlwaillslke lag 5'8 n __ gudkcontl 33 1-4 . - ~ e illltllt.‘ illld remote Help I'm bale 1111c iiilmg‘ hi; Wanted fiiiT-Kii. -'-"171'1'om1i1§o1. I 1 ___.____- uUfhi-‘S ‘lhllfi l_ yvdr» nl~~v-- wi-‘e- gm; 011s a; 1.3 “IN IODME" is. rt. b, b11211-(JtuLlti\Vit_uA1-l2_3_hy Uppfl. cda 185 uiisitmiq Qlufig 51511.9“ etc. "o r’ " M’ ' "" "“"‘“ veugfeb 290 l _ _ Wen go 21 _ I ileiiiiiiien-wloe exams helm L051 _ wood cad 9 11.11 11.111111, Free Booklet. ___________ _ _,___ ,_____.. W“ Hurg no --1 t c D-llU-JB 1.141., ‘ioronw l0. LOST _ A PM“ up Boy-g ~ UNHSTED r» Dialect in cullau No A8911“- _ glasses, 111 u_ case marked. ulc gum o" . T L‘ ""' “a~:f~"s..:r...,""rent; one ~1- - 0 et Iyéllflilll. Reatlrd Al letuiiit-tt fol ‘I01 T- ‘HM_‘_‘- '1 n1 Cla-te. 0d 0111101‘ FY1119‘? siiri, “ARAM” “Jfli-“EZTQI. atuieet. u-iv. _____1:‘_"P_‘13§_'1‘l:_‘_‘_‘l FE -e-ln-i By Frederick Gardner L-30-12-3-2l. ‘ “IAN'I‘ Associated Press F1 anclal Writer \_ ' —-——--———-—— 15,553.23 c; ,0... (J\\‘11 iiiin .1>.¢:mv1 NEWYORK, Dec. 3—((AP)—Se- Wanted lpqependcilt, wrilc tcdav 101' lHf lcctlve lmplovemsnt was to be seen ff - . . “yak-i Jlto Proposition No risk untul .11 today's stock market. 11AM‘ 1 __ ONE HEATED 300M thirty dav ulal cffci '11ic inc i, D.st;llers Seagram. Brazilian unliil-iifuirti. Phone 1638- complete line oiierc jTruction and Marconi, in the Can- L-57-l2-1-1i. Products far consumers. action 11st. advanced small frac- W“ -—_-__--_--- now u, . ii the new tic . liilrd, Impfrlal Oil and Lake 1 ' omen and mcn north .. .e ncs lo". as much. I“ enflneuus w l The Associated Press average of 60 Issues was unchanged at 44. month ago the composite stood at 40 and a year ago at 50.4. Trans- fci-s totalled 449,200 shares compar- ed with 478.300 yesterday. Allied Chemical retained a point vslvaocc when directors announc- rd at. s2 extra: total payments of tlto company. though. have aggre- gated s8 this year against w in 1939. in the losina- division were 11.5. Sit-cl, Bethlehem, Crucible steel. General Motors, Chrysler. Grod year. Montgomery Ward. Standard 011 of N.J., United Aircraft. West- mi Union. Consolidated Edison. nu Pant. American Con, Anaconda. Ki-iiiieoott, N.Y. Central and Great Northern. improvement was retained by Seal-i Roebuck, Amer! m Tele- viizoi-e. North American. _Loew‘s Paramount. Union Carifde, Sperry. American smelting. Rtbber and Oheswenlfe 8M 01110 Bankers Review Canadian Business Scene After Year of War Bank of Montreal President Sees IlewPro1l1ems,New Opportunities Confronting Canadian People COMMENDS GOVERNMENT ACTION ON ROWELL-SIROIS REPORT Holds Wheat Crop Is Asset of Great Potential Value — Culmirlating a comprehensive review of -Deprecaies Spending On Peace-Time Projects the Canadian business scene with an enjolnder to his countrymen to "do everything that in us i lies to keep our house in order," l-Iuntly R. Drumrnond, in his presi- ‘ dential address to Bank of Montreal shareholders at their annual meet- ing prob The president said that while Canada was at present on the crest of‘ a wave from a business view- 01m. with employment higher an in any previous period and industrial output on a swiftly ris- ing scale. it must not be forgotten that there will be an aftermath He declared, therefore. that “it behooves us all. while contributin in the utmost in. the prosecution 0% the war, to keep in mind the aci- justments which will later become necessary." “Eiconomy in private and public expenditure," he said. "should be practised to the utmost and pro- jeots not relating to the war effort should be postponed to a time when they will not interfere with that effort and when the employment they afford will be needed. We winds. but must do everything that in us lies to keep our house in order. We need prudence in gov- crnmental expenditure. prudence in business administration and pru- dence in our individual commit- merits. “We need a determined and unit- ed front; to limit the inflation of costs of material. wages and the cost of living—-the “vicious spiral" which created such havoc after the Great War, when astaggering re- adjustment of prices marked the return to a peace-time economy and left widespread misery and ruin in its train. We must bear constantly in mind that conditions such as now prevail cannot possibly last, and that when the inevitable end to them ccllnes. avd we enter upon the ntov chapter in our his- tory and the ilistory of the world, the readjustment will tax every vo- scurce that we possess nationally and individually. “It is not an easy life to which we arc being s1“ . but a hard life. Heavier trials and sacrifices titan we have known arc likely to be imposed unon 11s loefore tile curse of Hitlcriszn is removed from the world. Removed it will be. Life has no moaning for any free peoples unless it be removed. and not all the powers cf darkness can prevail against the conscience of mankind. now thorouohlv arous- ozi Already, hccailse of tho war. Canada 112s attained an import- "co among tllc nations of the world such as it could not other- w'=.e have aitain~d in certs-rations When viciorv comes-nnd it nlav be sooner than wo 01I'7!".'I—-€1101‘- mous new laws, new problems and. fYl“'\t"Sl o" i111. new 0p‘7'11‘t.l"\ltii"S will confront 11s. Lot us. there- fore. do cvervtlllne in our nawcr to be worthy of the ntlsiFon WIIICII i"r-€ shall be collrrl nDfm to as=ume 'in the loconstvliclioi- of the world 0r. a new and a finer basis." BANKS STiXTEMltIYI‘ Mr. Drummond. in his opening remarks. commented briefly on the banks financial statement which was laid before shareholders. “It ‘is ‘with satisfaction." llc said, “I report that. uohvithstancirirr the unusual tinlcs through winch we are bassinet. your bank continues in its customary strong position Our total assets. Wllllf‘ showing a decrease from last year. continue at a high figure. F1111 provision lhas been made for all losses and we are in a strong position. as al- ways. to moot any contnflvncy. “Notwithstanding a heavy in- crease in taxation. willingly borne. profits under a generally larger vol- ume of business have been suffi- ‘cient to care for this added im- lpcst, to pay dividends in the same amount as ill the tin-it several years and to carry forward a small nlar- lziii to our profit and loss account iThis result has been due largely ltu the hard work and loyalty of the bank's staff. In my remarks of last year reference was made to the restriction lzilaccd upon bank rofits bv the very low rates of ntercst prevailing and other fac- tors. and it is interesting to note that, for the twelve months nclf under review‘, on average assets of seraoooooo. ivlilcli is seooooooo more than last your. the not carn- ings for each $100 of the Banks assets wrcre 35 cents." wan FACTOR DOMINATES BUSINESS lNDlCES In revievzlng the business situa- tion. the piesldent observed that, while a year ago business was just beginning to feel the impact oi tvar conditions. today the economic lndices no longer give the true picture of the ebb and flow of business because of the over- riding influence of the mobiliza- tion and the progressive utilization of every asset the country pos- sesses for the most intensive pro- secution of the war. "We fully recognize the stake which is at issue." the speaker de- clared. "We know we are fighting for all we havi- and are. and our whole national economy Is geared to that realization. Few of us who were hcvc last year thought Call- ada could go s0 f!" In effort in the production of material aid as she has _ just at the lar-riiiiiiinir. The pro tlon of war supplies will be im- nmnselv grenm. ncxlllvenyt- i n1‘ " usincss LwIlPYfl Y l 5 5 ' of b that practically I "iclenh 1w slullldtlklflill and com . x0 o v - Irleagiallnlthtlvitv is reflecting the of oiii- war programme- lnwnslw been the impor- loutstanding has .tance of our mining industry. only n fully recognized and of the lgreatest help Ill stabilizing our ex- change. Onr railways are show- in; the highest traffic returns in years. Employment is at such a high level that we arc approaching the point vilhcro it may become ne- necessary. as Great Britain. to curtail peace-limo activities for tho purpose of. furthering the II ff t e or rally. Canada had A 1' nu wennulillng 1940 which. the done presi- must not throw prudence t0 the. _ 30 per cen war l l crops. “Sales of dent said. had been a year of good _ livestock dairy products.’ he observed, "have been satisfactory and the aggregate of revenue to the farmer will be‘ large. What, in the final account- esterday, declared: “When victory comes enormous new tasks, new ems and. greatest of all, new opportunities will confront us." HUNTLY R. DRUMMOND anri GOVERNMENT FINANCES In referring to the finances of the country, Mr. Drummond urged economy in all “peace-time expen- . dltures" so that Canadlrs war tusks ‘might be the better prosecuted. ' He referred to the Price Control was “zealously seeking to stabilize prices." “The Excess Profits Tax," the president remarked, "largely elimin- ates company profits; it IS equally the duty of the Governmenttosee that wages, which form the major part 0i.’ the cost of manufacturing. are not unduly inflated." On the subject of taxation, Mr Drummond observed: “War has cast a glaring light on the clumsy and inequitable structure of over-lap- pln taxation which has grown up wit iin the separate jurisdictions of our various governments, andIam glad to note that the FederaiGov- eminent has called a Dominion- Provincial conference for the pur- pose of considering the adoption, without undue delay, of the main principles and recommendations made in the Rpwell-Sirois Report. "This report was compiled after several years of investigation and study by a most sincere and able body of men. If taxation of an es- sentially national character, such as taxes on income and succession dues. were reserved exclusively to the Dominion Government, as the Commission has recommended. 1t could be levied with greater equity, efficiency and economy to the join‘. benefit of government and taxpayer Business would undoubtedly bene- fit from a definite allocation as between governments of taxing powers and o! control over busi- ness, and the saving to the country in costs of governmental adminis- tration would be great." GOVIQRNIVIENT CONTROL$ Recalling his remarks at the 1939 meeting on the subject of overn- mental controls, which. whIle ne- cessary in war-time, must of ne- cessity act as a weight and retard- ant upon the free operation of business. the president declared: “If only for the purpose of keeping the matter to the fore, I would re- peat here that when peaoe is re- stored these controls should be removed as rapidly as conditions ‘Dormit if we are to avoid whole- _sa1e reginlcntation of industry and ilobour, which would be contrary lto the very spirit of the freedom ‘for which we are fighting." The speaker referred in glowing you go" as f speaking to sharehol next year by additio “The magnitude’ obligations on the bodies in every ivinning the svar." 6d. not be estimated. that one of the N Europe and its impo progressively Back of ada holds in store." Mr. Drummond while the mar lEul-om ed, the increase ports had been re the twelve ous year. same period 000,000. Calla amounti 000.000 during months, was no figures and shou favoura the ‘president, “is that our ance of trade with states. which formerly by means of our with other coun be arranged in a. credit b and a debit States (for w these must now erally. “As PC8111‘ repatriation of C of securities held in states. to the total calc our interest an mcnts to residen and from th shipments of gold an the tourist trade. the balance is agai our dollar is a United States. Canadians for travel in states has trol of all Cona that country a if necessary. of regulating the hi f am lb" the neop irnado most wililngiyfk lust they totalled $1.150. t more than in t Imports had risen in the 46 per cent to dais gold production, "The difficulty today.’ While landing the Gover nr as lavas consi dcrs n‘- the 1231': cf Montreal, declared that the gap between revenue from taxation and war-time expenditure was tr "S0 far as estimates are at prose programme of production, the Dominion Government purposes alone during the curve be added non-war expenditures the Budget This form normal peace-time expenc nal heavy war appro of prospective cxpendlt Government and on priv continue to avoid inflation. For the (government. all expenditures which do not contribute to the n the lowest possible limit and this duly field of administration. personal expenses and will do so w "Citizens are cutting that 1t will help to win the war. 1y as long as they can see have the right to demo merits in Canada-Feder- cut their peace-time rxp conserve all our resources-none too great-foi- "Mr. Winston Churchill has said first tasks ' to which Great Britain will address itself when victory is achieved. will be the feeding of Europe's millions _all now on short rations. This is; promise known to the peoples of rtance will be realized by that promise is the tre- mendous crop of wheat which Can- ' EXPORTS U? 30% Iii the matter of trade ab remarked kets of Continental had practically disappear- in Canada's ex- markable. months to September 000. — he previ- " llg to approximately past t included in these ld be added to the ‘ ble balance of trade. itiublc tot ing, may prove. perhaps. the largest crop of wheat in the history of tno Dominion has been safely garner- It 1s one of the very best we have ever had in weight and quality “At. the moment we are, perhaps, thinking too much of the embar- rassment of handling it, but I should like to point out that our reat store of wheat is wealth in ts best and most tangible form and in present circumstances all asset the potential value of which can- them road, that. GUT PEACE-TIME EXPENDITURES T0 BUNE, SAYS ll. ll. DRIIMMUIII] nrnent for following a policy of "pay as dered passable, Huntly Drummond, 1:1 " the speaker obsc will spend close to $l.0(i0.000.000 for war nt fiscal yenv. To this figure must of 15448030030. as provided ' a1, winch is nearly three times thc Iiture, will almost c§rta1n1y be enlarged nd, and they a1. Provincial and Municip cnditurcs to the bone so that we may F01‘ l 000 $200.- twelve said the debit bal- the United wc settled credit balances tries, can no longer that way. We have alance with Great Britain balance with the United ar materials) be settled unilat- and ds the British account. anadian debt and Great Britain ans of set- . In the case of the our excess of imports in ulation must be added d divided colnmit- ts of that country. is may be deducted our d revenue from In the result nst Canada and t a discount in the Expenditure United DY the United nd these it can If. in the operation exchange, should be found advisable to pro- bit, importation of non- satisfied that this 1e of Canada will be been almost eliminated and our Government has taken con- dian investments 1n rsell 1t essentials. sacrifice 1 annual meeting of tho Bank emc-ndous. nt applicable to our expanding rved, "it appears that for 1n pviauons. urc imposes unavoidable ate citizens if we are to‘ ational war effort must ho cut to applies equally to all public illing- ’l"hey do dcmrmd. that Govern- al-shall also the one object 3f terms to the “marvellous manner“ in which the British people had adapted themselves to the condi- tions of war, and commented par- ticularly on their ability to main- Board by which the governmental the subject of government financ- ing, particularly from the bn ness,“ he said, "is at all times large- ly of the nature of a public trust, for on the one hand we in this- vlding funds for all purposes, pub lBank Determine ing In Financinglwal‘ P a financial statement hlch this institution G. W. Spinney, o lng yesterday portant part w ada’s war effort, general manager, Jackson Docids, 0 tered upon its 124th year of operas‘: full part In this national effort and the achievement of victory which is consideration." The statement which Mr. sluinney presented showed great strcngiil and liquidity. Assets amounted to $961,300,000, compared with $1,- 25.500,000 a ear ago. "The de- crease." he sa d, "is represented in the main by a reduction in our investment portfolio. as a result principally of redemption at matur- lt' of Dominion nnd Provincial Government securities". Quick Bl- sets totalled $663.200,000, or 75 per cent of all liabilities to the public Net profits of $3,436,000 were down by $27,000 when compared with the previous year. “This re- sult." said the General Manager. "ls not unsatisfactory in view of the fact that taxes paid to the Do- minion and Provincial Govern- ments during the year were $729,- ,000 higher at $1,928,000, accounted fol principally by the higher rate of Dominion taxation. The increas- ed revenue to offset these addi- tional charges and other heavier operating costs was obtained chief- ly from commercial loans. which for the year averaged about 22 per Presenting to Bank of Montreal sharch to Play ' Full Part in Achievement of Victory, say General Managers Financial Statement Reflects Increasing Part Bunk Tak- rojccts -- Loans Average $38,000,000 Higher — Profits Slightly Down elders at their annual meet- _that reflected 11n- nicrcusingly 1m- ls playing in the {llliillflllg of Can- n behalf of llimsclf and,1ns fellow .E.E., declared that as tile bank en- on, "we are dctt-rnlnicd to play our We look folyvard \\'1il1 confidence to now the prnnart‘ anti ziil-inlportant therefore halo Inflatirniarv. conse- qucllcts. (lulu-ruling upon their 11m- ing and CXIVIAI. "In certain circumstances mour- tary expansion of tins character may be appropriate and justified. provided that it is niotieerate and carefully controlled. 1: side-rod I11 bu so 1n Illt‘ oi the war. when, at night's request. llit‘ bank subsci-ilj- eu to a special issue oi $:!0-il.0O0.000 of short lcrin notes. A INTIDOTHYV expansion of credit \\'fi“i ctinsitiorcd expedient all that time 1!. view of the state of Iulsincss and o!‘ the GOVC1‘1lll1r‘I1l'.‘i l)1‘01;;lt'(1il\'1: budget- 3T)‘ pTDL-(fiiflllilf: “But now tllli‘ i110 oarlv hesita- tion of business has liii-rrsuoceed- BANKER WARNS AGAINST INVENTORY BUILDING FOR SPECULATION cent higher." Holdings of notes of the Bank of i Canada and balances with that in-l stltution amounted to 581.100.0001 and represented 11.01 per cent of. all deposit liabilities payable in, Canadian dollars. The statutory l reserve percentage which the bani: 1 is bound tn maintain In these as- sets is 5 per cent. COMIMERCIAL LOANS AVERAGE $38,000,000 HIGHER ‘ Investments at $462,000,000 show-l ed a reduction of $55,000.00’). while loans and discounts in Canada in- creased during the year 516.200.0013‘ to $217,600,000. Commenting on the‘ increase in loans, Mr. spinncy s;11cl_ “This increase as at October" 31s‘. does not properlyindicatc the lnain- v talned improvement in this depart- l rnent. During the past twelve - months the monthly average of our commercial loans 1111s been $38,000.- 000 higher than in the correspond- ing period of the previous finuilclai your. This expansion in our loaning l figures comes chiefly under the headings of loans to manufacturers, l reflecting the higher levels of busi- , ness activity. and agricultural loans l arising out of the large carryover; of wheat." l Deposits by the public at $749,- 800000 were $52.000.000 lower thang a year ago. The reduction 111 thisl category of deposits, it was ex-l plained. was due in the main to‘ the subscript-ions made by the. bank's clients to war loans, and to‘ the withdrawal during the your of’ some temporary balances payable in United States funds. GOVERNMENT FINANCING l Mr. Spinney dealt at length with ' liking investment viewpoint. "Our busi- bank are responsible for the scour-l ity of well over a million individual l cieposlt accounts, and 011 the other , it is our function to assist in pro-l - 1 tam exports at such a high fi ure. For the first twelve onths_ , “W W. JACKSON DODDS, 0.B.E. ,_____ *_____,___.______.- of the war. he said, they amounted to 2470101000. compared with 125321600900 for the comparable pro-war period. "Of this," 11c said, “Canada has taken an increasing share and I would like to acid my voicc to that of business leaders ailovorthc Do- nlinion in urging our people to give at this time preference to British goods in their purchases of import- ed products; for every dollars worth so purchased helps Britain in her war effort and helps Canada too in the mutter of exchange." UNITED STATES CO-OPER ATION Hailing the mutual defence agree- ment with the United States as the most important event for Canada. outside the war. since Confedera- tion. Mr. Drummond said its great- est repercussions would occur after the war when Canada, more than ever. would be a vital link in the relations betwccil Great Britain and the United slates. “L-nst year." he said. "we hoped that the great American nation would respond to the call to help 111 the fight to preserve civiliza- tion. Today that hope is a reality and the United States is a major factor and their sympathy and moral support are lncreasinglyl evident each day.‘ 1 which may propel"- 11c and private, l Ci. W. Spinni . t gtlicral ‘ifliiild-ici‘ of I.llt~ 1 i): 310m. ' llfilil ill EVERY-l mot-pug of silare- matter of loans to lDUSIDESS, the rise of industrial ‘aCilVllv ‘ilas stnnulntcd 116W tie- lmands for crc-nll .\.llci1 we have Avelcoillc-d. ll. .:. czlst- also. ‘l10\\‘0\l'l'. 1110 u ' riqlllrcs that a special Ci)! JIIUII should be observcd. While we are always prcparec to finance sound transaczloz zinrl addi. .{.10l1tlll\' at lilo p 11'. time to gaccolnnrctizltc $j111 .1 needs arising from the \. the fin- ancing of Yibllfltiliiil '1' cntorlcs ‘carried for pin-cli- ‘purposes ‘in the UXI)((..J rising prices would be equally against the interests of the banks their customers and the public generally. “Not only would such opera- tions contribute to inflationary price incrca. s and to nrtlflcial market conditions for the com- modities concerned, but they would inevitably store up trou- ble for the future. Tile experi- ence of the inst war, and also of the speculative boom of the late twenties ))l'<)\'1(I(.'S painful reminders of fictitious liquidity and of profits which became heavy losses overnight. 50 far, there is little evidence of any recurrence o1 such speculation, but the danger inherent in the intense uctiviv." ivliich lies ahead. and, as the banks are strategically situated to discour- age it, we feel We have a special duty to bear it. in mind." ed by unprecedented flCtll/ltj‘, per- sistcnt and continuous use of this nlethod of 11111111611111 would lead dl- reotly to inflation. As Canada‘: supply of money takes the form pfilltllpfllly of bank dcposzts. the unrestricted purchase of govern- ment securities by liic hunks uouid be equivalent ill i1: rcsllils to ls- suing un11rn"cd lllt11lt‘_\' tlirotlgli the printing prc Tilt: Government's purpose ill making issues oi secur- ities to the public to meet part of the costs of the war ‘ to obtain command uf renl savii .; To sub- stitute bank crtdlt for 11111-11 sat’- illgs as a regular" procedure would therefore frustrate anti defeat all hope of financing; Lilu W112‘ in a sale and honest manner. it is for this the nlcdcrate reduc- regordcd as a S0 far as 1t got the Governments l'L'(lt1ll‘€il‘1CIl15 have been supplied front genuine savings. "In the matter of war-limo pub- lic borrowing. our iuziulii-s can therefore loos; be usr-(l its 11 channel rather than as a soillut- nf funds. To this end we have liliitlt‘ avail- able at n11 our l)1‘(ill\‘l1(‘~' special means ‘whereby ‘.110 pun: of Savings Cvriliiciiic~ ind V1.1‘ Loan 1- '1. r1. bonds > n1 111i 'R\' 11ml .\(iI{I(’l‘I.Tl'l{l-I Cilscr 11g 111.1: llu-llln-s (fondl- tions were, iif 171.11%». t"\I1i1ili'\II‘fI by tho dcmahti liir ~11 , the general manage": r1 niarkwi i‘ the tolumc of industrial prodi lion 1n Clilluclil was :\‘il':.iii-- 1 <1- titan (‘\(‘i‘ before and . was widely spruld l1ir<iu_ . : tlic coun- 1 try "The output of silpillics" ho said, G. W’. SPINNEY iv be financed by a bank. In time i of war, these duties and functions ' assume added importance vfiiifl ltl may therefore be pcrlnisslblc for, me to refer to one or two matters l which today donlanti closer atten- tion than usual. I "Our iloldings of Dominion and Provincial Govornineilt securities have declined during the past year l b_ 534900.000. although they are‘ hlgilel" by $30.700.000 than before tnc outbreak of war. Iii view of the fact that the Govcrnlncnl is making extremely heavy dcmands on lllf- securitics markvi, which will no doubt incrcasc in futuro. it niiuh’ appear to some that we were doina less than our duty in helping ‘.0 meet these demands. 1t is not un- reasonable. on a superficial view. to suppose that tho banks should be a first resort in the prcscnt emer- gency. “This supposition ignores tho real nature of the transactions involv- ed. Whcn a Bank subscribes tn additional quantities or Govern- ment bonds, and places an equival- c-nt amount of credit at tiic (Piv- lernmcniis disposal. it is ill offer‘ providing new money in the form of an addition to tho 511111111.‘ cf Bank credit which was previously outstanding. Such operations may “is duo lo expand mui- f it. is clear that wi» 111i llfflilflllilll n pn-itltnl in .1 covitrusl \\'1Il1 1111-11.“! "1'1_\'i.1l principal pvobltln \\111 111- tilc quacy rif 1110 lilcxilts o.‘ product: "i. “A large crop (if 1112111 quality wheat was lliil"i'it-l(‘fl and substan- tial sums are rcqlllrvti to l‘.l1‘i'_'»' the croii until it lllltl> a niaikol. The Dominion Bureau 111 .5; 51H‘- esti- matos the yield n; w" for all (‘ailaoin ill 5-17 flfklilzlo bilsli» 1s. which, if realized. will maltr- tln- the sec- ond largest crop n11 vvcorti since wheat grmvinn sizlvlctl 1n Canada. "Tile not‘: crop. urlzi» <1 1o lEir- car- .111. 1111 rvovor of allprnxiin 1v 300.1100.- (1011 DIISIXCIR n11 2111' Li!" -I11l'»'.<'1‘<.‘l\'.4‘(I i n stovalrc lrroblcnl \\"illi-11 :11 l1l'.\'L ‘nave sonic roncrrn. 1n oldcr lo make the bust porsllilc use of the nvnilablc storaoc facilities for the bvnvfit of n11 ".i‘<‘\\<I‘< iliikc. 111v Canadian whoa‘ llnarri 111s iulcd a tiuota system of dcrvvrics based on ‘flvo bnsilcls pcr scciivd acre. and tvhore local conditions permitted this quota was raised With the prompt notion of tho cit-valor com- panies 1n crvlsirucfillg annexes and mditioilnl bins and tho arrange- mcllis modal 11v inc r~~o\\'ovs 111cm- oclvcs for safo ratf". ll‘ l-S b?" Ilcvcrl that prov 11v n11 grain is ntuv under oovllr and thr- sterner‘ problem may ho =c1i1 to have bccn jsolved for the present."