MNUARY g4, 1941 - fi._St0ck » Exchange l _,,,,,,,,I.T'rml I w- Close md I 1 Tel “film-we “v $??““ mumps 1"TT"""‘ mama» I 7'77"‘? NQGLG i§ess:2:2:::s2sesss:aiazsés ldfliidbdr-lfidti assets. Montreal Stock Exchange (Canadian Press) m“ Close 5d, Tel I58 gruiiian Bid! Products cm Cement cm N0!‘ PI‘ w, qgr Found cur car PM Clll Ind A1 A cw pacific Cali Bteamslil? Qogk PIOW Con; suielt pisi Selig pom Brl so iiow Built-ll lino W" m Nickel lake Woods mi Power Nat Brew at steel Car 1-2 5t uiw Com 5t Lin; Pf: W Eec ttpgf Cari Pfd 5t of Can wpg Elec B Montreal Curb (Canadian Press) Blocks Iibitibi Coin Aliitibi Pfd Asbestos B A Oil Beauhlirnols liithurst A haser Fraser vrc llir ‘Walker Q Q S I lIF-wfiwl EQZSQI t ‘F???’ w-ham Gfrdv-e r ibbil-‘l (Canadian Press) Blocks clnadli _ Montreal _ Commerce Nola scotis ._ Royal _. Produce Prices Jan. 23-67?)- Pfvdvce Market, prices, here today, l5 repzrtzd by the Dcmtrton De- ilirtment of Agriculture, f llow: Butter: first grade creamery flit-s. Jobbing price, 34 1-2-85; lrct grade solids, jabbing zce, 34 4i 1-1; Que-bee no 1 pas lined, terraced. whdesale price, as 1-2; Q11 bit no 2. rergaded. 32 1-2 fllieese: western whte and coi- Ol . r-Eiclesale price, for export. 11 p554? Rrcced shipments in used ‘at cases. selling price. A—IHI’KL 23: lg-mcd um 2o l-2—-2l; A-pullets fPcPtes: zQue whites no 1 15's “r7702 n 2 ,-i.-. r B moun- PET cob- ,a*,jnl‘,@l1a'g3‘s6;5— _ PF! moun- , jklhaoq-Gb- . Bemuda reds no MONTREAL, (Irain ._.__._ flflyioo. m. 23-454 "full t) shade higher price basis Pitfall-ed in thc wheat pit during ma‘); ff the session today, u h=at cored 1-8-3-8 higher, will 85 1-6-86. July 79 8-4-7-8; n,‘ “llchilllllcd to 1-4 lcwer May , 5551f}; July ea 1-4; oats 1-8- ft umPlNIPpo. son. 23-(CP)— Un.,db" ‘n8 hv Canadian and m-ttter States mills easily am rbed m,“ “l Offerings on Winnipeg w-uafzfflhflflse today and gave ‘otat/olllitsursvserpflfles fl nrlln ‘ ; e rac om; y . lléjéidlfihout and closed 1-8 cent 4- Iii’ wheat 87 1-8 and Jilly Q“ cents a bushel. ,0 mlgitons at Hurncs Aim failed m.“ e far from previ us closing 9111c close: ‘Wheat: lvny ‘i7 1-88, July ‘Iii s-4 oéflhgftggv 86B. July ss i-4n, ,, t . “"0 Mar 46 l-s, July 44. _________ Toronto Exchange "" ‘filo smile: M t 227.000 share . hm Loan ms marl-e In addreaain The Bank of Nova Scotia shareholders at tho hlflth‘ Agnufll eatm , held at Halifax, on January 22nd, 1941, b r,“ . . ti cLeod, ‘ resident, outlined the sharp increases in tfilgli 1:881 _ac fvlty, revéewed _Canad_a a financial hcy and stressed M gca ions or anadian citizens of an a l-out war effort. u r. cLcod spoke as follows: . b We look hack upon a year of world-wide upheaval. It has Pica a year of tragcdy._ I\o lesser word can describe the fall of E ance an the obhteration of the smaller democracies of Western filgrtzpffio And ytat), IhNPfIEhBISO brought to ua renewed hope and ‘reepdom able: theeseaaoliabrlfigd all; lull grant stronghold of the dos iler of cont‘ ' tallsi “n owe an “shaken before "If slxfiin time 1.55"“ 1' “m”? l... » m" seriousness and yca soniictfi ua inla ooh ve realized the should now have, turgency o e pcri in w lch we stood, we h _ oa w atever comfortable illusions we may onco ave entertained, We know now, ‘as we may ‘not have known a ytevhago, that “i1! country is in a total‘ war, _llJ ‘the fullest sense phm ahwor . _ n the words of Mr. Churchill we are moving ug _ a period of extreme danger and splendid hope, when fiyfiryi filigtéuprérglpigrt ‘£11225 ,WIl.l be tested and all that we ave and “In such circumstances, it is only proper to consider what this ‘total’ struggle means to i_ia as Canadian citizens. Our rima interest _ia, of course, to win the wlir and, us a banker, I eel it is appropriate for me to review the financial policy which we aa a nationhre pursuing to this end and to discuaasomc of the eco- nomic implications of our all-out’ worcflort. First, let m_c survey briefly the outstapding developments in the economic picture of the past year against which financial policy must be viewed." Remarkable Expansion of Industrial Activity "It is no exaggeration to describe the expansion of industrial activity in 1940 aa remarkable. _Indced there have been few occasions in the post when ex imsion has been so rapid or nearly so ivcll sustained. Indicating tie general trend, industrial activity, as measured by this Bank's inch-x, has risen steadily since last March and in Novcmbcnwas much the highest on record and some 290/; greater than in the month preceding the outbreak of hoatihtica. “This pl nounced increase in_Cannrl_a'a productive nctjvitieg has bccn concentrated in the shipbuilding, uircraft, automobile, machinery and chemical industries, and in the concerns which manufacture and frrbricutc such slncwa of wur ns iron and steel, aluminum and other base mctula. The textile trades were also much busier in 1940 than in 1939 and certain of the great export induatnea, such as lumber and pul and pnper, were decidedly more active. Mining aa well share in the general expansion of production. 'l‘_lie construction trades, stimulated by the great grograrnmo of industrial expansion and by the large volume of cfcyrce work, hlive been increasingly busy. The IiLllWftyE have carried more freight than in any your since 1930 and retail trade has been appreciably better than in 1939. “In the case of agriculture, the year has been one of heavy production. Not only were crops generally plentiful, and wheat auger-abundant, but the output of hogs and cheese increased au stiintlolly; that of cattle rose moderately, and butter produc- tion was only slightly below the record of the previous your. Farm income for Canada as a. whole was slightly larger in 1940 than in I939 (and indeed the highest in thc past decade) but it was lowcr than in 1939 in many arena of tho West because of the deferred marketing of wheat. Producers of certain other specialized products, such as apples and tobacco have also had a difficult your. "There can be no doubt that (lllnlltlll produced more goods and services in 1940 than in ally previous your of her history. A rough provisional estimate, compiled by our Statistical Depart- ment, puts the available national income of Canada at. around $5,000 millions as compared with $4,375 millions in 1939 and $4,130 millions i'n I938. While this estimate has been exceeded in the two previous ylcars of I928 and l929—thc 1929 peak was $5,430 millions-—thc reiison is to bc fouiul in the higher level of prices prevailing lit thiit time. Indeed, when one lillowa for tho difference in thc pricc lcvnl its between the two periods, it becomes apparent that the national income of 1940 represented un aprigtglgbly larger volume of gooda , and services than that o . "Full Employment" In Sigh! “In line with the rapid growth of production, employment opportunities lilivc incrciiscd uiid the inujorit ' of tlic unemployed who were rcuciily cmployuiblc have found jo s. The ofliciul cm- loyment index is at much the highestpoint on record and on December 1st it indicated an increase in the number of wage- enrricra employed since the outbrcrik of war of about 350,000 crsons. When it is remembered flint some 200,000 men have llcen added to the armed forces, it will be soon that employment in industry unrl in the wlir services has incl-nursed b n. totul of around 550 000 persons. For n country of some ll million people, this is a truly notable increase in the short splice of fiftecn months. “We are steadily approaching what the economist describes as ‘full cmplo ment,’ i.c., a state of affairs whore there is work for all the capab c and adaptable unemployed. In many industries part-time work is a thing of the post und overtime the more usua atatc of affairs. Workers urc being drown away from non-essential occu ationa and women are entering tho lllbour field in increasing num era. Certain artisans arc in particular demand and shortages of some types of skilled labour are ‘ecoming ‘bottle-necks’ in our war programme. “Of course, this is not to say that we are close to the upper limit of oiir national production liiirl olTort. Some (‘riliolliliiis will be ablc to work hnrilcr rind lnngvi", rind ollu-ra will I1l0\'(‘ from non-essential to more urgent Chll\l(>_\'l]It‘lllS. 'I'lici"u lirc still some unemployed who will fiud jobs and, what is perhaps more iin- portaiit, there remnina a reserve of yrcrsons who are under- employcd nr engage-ll in relatively unproductive occupations, and there is the reserve of woincn who normally would not. RPPk ilidustrinl PIIIPIQYTIIPHI, The prcsent lribnur‘ problem is ryurilitutive rlitlici" tlilin riiiriiititzifivc‘, it is oiic of (ibiriiliing i-iioiigli of lllth right kinds of llibour to mcct the rupiilly rising nccds of wlir- time industry." Mounting Stimulus of’ War Spending "There is no need to elaborate nn the rcnsona for the pronounced economic expansion of I940. Obviously, the prime cause la war spending. short timc a o, the Minister of Finance pointed out that the Dominion (lovcrnmcnt/s war expenditures had recently been running in the neighbourhood of $70 or $80 millions per month-or at a rate of around $900 millions per yoaP-and and weakened a cent, to 6 1-2 and i higher at 83.62 1-2 cents- CANADA’S WAR FINANCING ' “Home Front” Effort Calls for Economic Sacrifices Address of J. A. McLEOD, President, at 109th ANNUAL MEETING THE BANK OF NOVA SCOTIA Afifliilaltl General Manager, H. D. Burns, Presents Statement and Pays Tribute to Stafl, wilILPnrticuIar Mention of Those at London, England, and on Military Duty there is every reason to believe that this rate of apendin will be further increased, In addition, the British Government as been making substantial war outloya in Canada. Taken together. it would appear thn_t_tha strictly wartime expenditures of the Dominion and British Govemments in Canada are currently equivalent to at. least 20% and perhaps as much as 25% of our entire national income. "Added to this enormous and wing wartime im tus, the productive energies of our country ve been stimulate by riain demand both from Britain and the United States for our uaua exporta—the products of the farm, the mine, the forest and also of the factory. There was also an appreciable increase in our exports to the rest of the Empire and to Latin America, thou our shipments to continental Europe were, of course, abrupt y reduce and those to Japan fell sharply." Eno Task of Finance _ “There la far too little public ’ tandin of the vitally important topic of finance. The people of Canada have under- ‘takenan all-out \var_ effort—i_n tho words of the Prime Minister we will make financially r L‘ the utmost effort the people of Canada are physically and morally capable of making.‘ To put it another way, this means that we have committed ourselves to raise, not just what money can be raised convenientlv, but all the money that can be spent effectively for the war. That is the problem of financial policy. “We talk of war finance in terms of money, but we should realize that it la fundamentally a question of human effort and sacrifice. Let us remember that behind the dollar signs are the goods and the services, the labour and the sacrifices of a people engaged in a great physical and moral effort. We say that the Government ia raising money because it needs it for war purposes and this of course la true. But fundnmeutallythe Government in raising money for war purposes is prevcriting it from being spent for non-war purposes-and thus restricting civilian demands on the productive powers of the nation so that more labour, more machinery and more materials will be available for wartime production and service." Policy of Financing Successful Mr._ McLeod reviewed briefly the record of Canada's war financing up to the close of I940 and stated that financial policy tliua far had been successful in raising the funds required for the war without untoward consequences. “Des ritc the fact that the Covcrnmcnt has been spending on a ra i ly mounting scale- its total outlays ln_Octoher were 8128 m' lions-there appears to be no evidence of inflation in Canada. “In the first place, the level of prices has risen only moderately both in relation to international developments and in relation to the rise in the notional income which has thus far occurred. When it is remembered that the war brought a 9% discount in the Canadian dollar in terms of U.S. funds and that ocean frei lits and insurance rates have risen sharply throughout tho wor d, the 12% increase in wholesale prices and the 7% rise in the coat of living since the outbreak of war cannot be considered unduly great. ‘Furthermore, it is of interest to note that the wholesale price index in Canada is still somewhat lower, and the cost of living not n great dcnl higher, than was the. case during the recovery of 1937 when tho national income was much below the level prevailing today. “In the second place, it should be noted that the increase in the volume of ban credit has been modest when compared with the increase in production and employment. While Canadian deposits in the Chartered Blinks rose from $2,582 millions in Aiigust, I939, to $2,823 millions in November, 1939, they dc- clincd subsequently and in N ovember last stood at $2,733 millions. Thus, the not increase since the beginning of the war was about $200 millions or 8%. When viewed against the 17% increase in ernplo mcnt, and the 25% gain in industrial activity, this expan- alon o credit. appears comparatively small." Existing Problems of War Finance “If anything is clear, it. is that the problem of finance is rapidly assuming lurgcrfiroyéortions in linc with the mounting scale of our war effort. e ominion’a over-all re uirements for its own war expenditures, for ordinary outlays an for financing British purchases in Canada during the fiscal year ending March 31st next. appear to be somewhere in the neighbourhood of $1,500 millions, the bulk of which has been raised. While it is not ossible to any just whilt mliy be tho requirements of the coming 'scal year, a total of $2,000 millions would acem to be a con- servative estimate. “How is such a vast sum to be raised’! On the basis of present rates, taxation ma bc expected to yield perhaps as much as half of the require funds. The remainder, except to the degree that toxritinn may be increased further, will therefore have to ho raised by borrowing. To this cnd the Minister of Finance has outlined a two-fold policy. First, he announced that the next war loan would be organized on a largo-scale co-operative basis, similar to that of the victory loans of the last war and that it would be issued next Summer. I-Ie added that the loan would he a ‘very large one.’ Secondly, he emphasized the importance of the Favinga Certificate scheme as a means of encouraging regular saving for the wlir effort. "Itleilmvliilc, in order to meet fully the Government's financial needs bciiveen now and the next public flotation, a short-term loan of S250 millions is being obtained from the Canadian banks." Mr. hlcLeod (llscussed the implications of this loan and indicated that in his opinion it. could not he “regards-d as in any way inllritiniiiii'_v, provided flint. the linrrnrvilig and faxing policies of the (lO\’i‘l"ll|ll(‘lif prcvolit. :rn int-nurse in lllf‘. volume nf civilian speuiliiig. 'l'li<- money is needed to liriiint-c rilltliilnnul wnr produc- tion: of that there can be no doubt. ’l‘|iis war production, how- ever, will give risc to a further increase in individual incomes and if this nicnnt tlilit the general level nf individual spending would be rriiscd corrcs ondingly, ilir-n the loan would have inflationary consequences. llit, ris we rill know. the Government is striving to rlivcri ri growing portion of individual incomes tnulirrls tlio will" ollurt through taxation riiill public borrowing, rind to the (ll-grow: tlult this polio l i.- successful the development of inflation can and will be avoi ed." The War Effort and the Home Front "Let us fncc the f flint grcntcr economic sacrifices are mvvossnryn It fa erfc trun that the Government. has been taking a lnrgc rin growing portion of our incomes throu h taxa- tion and borrowing. Brit tht- nniionlil income of Canada as been rising rapidly and, even slici- these substantial ’ ‘actions, the TnHE CHARLOTTETOWN GUARDIAN Canadian people as a. whole have had more to spend than prior to the war, and they did spend appreciably more on their indivi- dual welfare in i940 than in 1939. y "The reason for this state of afiiiira is that we have been able to increase our production sharply and thus to provide for a rising war output without curtailing civilian or, peacetime gro- duction; indeed, we have been able to increase it. It woul be leasant, but uitn unrealistic, to think that we could g0 on ncing an a -out wlir effort with little real sacrifice of an economic nature. There are two compelling reasons why this cannot be done. One is that we are steadily approaching a condi- tion of full employment and maximum production and thc other is that we have undertaken to go on increasing our war production and effort to the limits of our capacities. It stands to reason that this country cannot go on indefinitely producing more and more war materials ltlitl equipment, withdrawing more and more men from the productive system into the armed forces, rind lit tho same time continue prlivirliiig more gnolls for civilian consump- tion and use. Since we must. have a rapidly mounting war pro- duction and larger armed forces, we shall have to foreilo an improving standard of living and, in a great many cases, accept a somewhat reduced one. In short, if we are to pull our full weight in the cause tn which we lire dedicated, individual spending must be progressively limited in favour of the war effort. ‘ Increased Saving n Vital Need "My reason for stressing this point. Ia that I do not believe it is auflicicntly or widely enough understood. To manv, indeed, the income tax bill payable shortly may come as ll. rude shock even though the increases were announcer] seven months ago. Some may feel that they have carried their full Fllllrfl by paying the higicr taxes, But the truth is that after the taxes have llccu paid there will still remain enormous and growing sums to be raised from the citizens of Canada through borrowing nf one sort or another. And if inflation is to be avoided, there ls onlv one way which Canadians can find the necessary money-that is by strictly limiting their expenditures and thus increasing their rate of savings. It. is therefore a vital part of the wlir effort on tho ‘home front’ that everyone who can reasonably economize should save more and more. For those whose incomes arc rising as a result of tho ivilrtilnn expansion, a high rritc nf saving is not only the art of patriotism but also the plirt of wisdom, for in so bull ing up a reserve thov will be providing against. the day of goat-war readjustment when their jobs and their incomca may e gravely threntoncll. "We rill rt-vngnizr- that this is a ‘total’ war, but perhaps because our battles lire being fought uii the other sillt- of tho. oruarr we n_rc sometimes slow t0 realize its full iinjllivritiilns. One implica- tion fqr those of us on tho ‘homo front‘ is that, in doing our proper share in the country's wlir cllort, we must. pay, and pay as wc go al0ng—in flic form of taxes, loans to the (lnvcrrimcnt, or if these fail, inflation. All of us lire anxious to avoid any serious inflation because it. is unjust. inefficient. rind threatening to the very fribric of our society. [fuller llicsc circumstances, we must. willingly accept licuvy taxation and, more than tliut, we must srivc to tlic maximum nf our ability. It. may appclir flint this is the hard way to finance the Will‘, blit because it combines ofllcicnr-y rind justice in the greatest measure, it is the best way and the democratic way. Govcrumcnt Control and Regulations “I have not mentioned the increasing variety of controls, regulations rind tnxcs designed to mcct. special aspects of the wartime problem. Of necessity, Canada has built up on elaborate system of exchange control, some measure of price regulation a growing amount of control and direction over production, an a ody of special taxes and regulations for thc purpose of curtailing civilian demands on certain kinds of lnbour, crlulpment and other resources needed for war purposes. By and lnrgc those controls have been administered effectively’ and fairly, and ctr-operation rather than compulsion has been the order of the day. Never- theless, because of the over-riding needs of the war, we are build- ing up what is becoming a controlled economy, in which individual rights and individual initiative are for tho time being limited by the state. When, as at present, we can all agree on one pre- eminent objective, thcrc arc grout and obvious advantages in unified control and direction. Brit let ua ncvcr forgot that the driving force in our democratic society is the individual rather than the state and lct us rcsolvc to rte-establish when peace returns conditions that will provide for freedom of individual enterprise in the economic as well as In the political sphere." Assistant General ItIonager-‘s Address “The President has already commented on the tragic cvcnta of the past year, and I Ellilll not attempt to amplify his remarks: it is, perhaps, not too much to any that in the practical operation of the Bank these events brought their own problems." Earnings “The tafcment before you shows earnings of $1,941,330 after taxes of $1,004,027 rind lifter melting appropriations to con- tingent accounts, out of which provision for bod and doubtful debts has been made. The earnings shown are $92,000 less than those for the previous year, but these earnings are after allowing for $445,000 more taxes than in I939. “Lest n wrong impression should be created by the payment of dividends at 129,’, pcr annum on our capitol, it is only fair to oiiit out tlilit the shareholders’ funds invested in the Iiankb usiness, consisting of r-llpitul, reserve and undivided rofits averaged over $37,000,000 for tho cur and the dividend; paid were at the modest rate of 373% on t e shareholder's iu vestment.” Deposits “Total deposits at $269,630,000 show a reduction of $10,000,000 for the yczir. llulrincos of the Dominion and Provincial Govern- ments are $9,100,000 lower and interest-flooring deposits are $6,827,000 lower; the latter decline was caused by withdrawals by our savings customers for payment of subscriptions to the War Loans. Deposits not bearing interest, which represent balances of business concerns, are $',S0t’l,000 larger-An kccplu with the higher current level of DllSlllC>S generally in the country.’ Cash Position Strong “On the assets side of the statement cash holdings consisting of coin, notes of and (lvpflr-lts with the Bunk of (‘rinadli an government rind other banks’ notes f-ofal $32.3S2,000, which is 11% nf our public lilil>ilitics~rl =l' hily lower percentage tluin was shuuri lust our. Our other li nest-is, consisting of brink Ilflltlll rl exchanges for the tli 'ig lluiise. bring Illl‘ total up to i09,0tlti, \\ll|i'll is liliutlst 22'} of public llabillties—- practically unchanged fruiu the previous year. ' Investments ‘Total investments, which are carried in our balance sheet at prices lint exceeding irilirkr-t. values, rimniint to 5131117000, n. fPd-ZPIIUII ul lllilltlrl $.'>,ltltll_tttlll from thr- tutiil sl JWII it year rigu. We still t‘llllllllill‘ to lllllll :i large percentage of our‘ securities in flit! short-term category. Mm uill note flint $1 371,000 are in Dominion and Provincial Government securities not exceeding two years in term, which represents about 375,‘, of our total hold- ings. IIowevc-r, we have other substantial maturities up to five yours in tor-n and 75$}, of dur investments will mature within that period." Resnurrns Ample fnr Increased Loans "Notwithstanding the increased volume nf business that was done throughout tho country in the hitter half of the year, our current. 1mm; in (fnnmln show a reduction of $l,558,fl00 rind nnw stand at S93,339_0fl0. \\'r= have participated to a substantial do rce in financing for our customers, contracts fnr supplies nf a wisely diversified nriturc rr-qillrcd fur thr- ‘ITUSPCIIIIITH of the wlir, but certain s er-inl, largo louiis, which uerv uutstlilirliiig nt the and of 1939, have either been paid in fuller have been substan- tially reduood and the net result is the relatively modest reduction in total loans outstanding. We have ample resources to finance an increased volume of loaning business and are prepared to give favourable consideration to all legitimate applications for lolina required for the furtherance of the country's war eflort or for its ordinary trade. “Total assets are $328,682.000-a reduction of $14,800,000 from the total at the end of the previous year. Ordinarily, in war times, ohe looks for expansion in bank assets and the fact that ours have declined is an indicatio of the sound and coilstruc- tive financial policies which were adopted by the Government during the year just closed." Excess Profits Tuition "I have already referred to the sharp rise in our tax bilL Nobody likes to ay higher taxes, but there is no doubt- that the shareholders wlir hcnr this increase willingly nntl cheerfully, recognizing that all Cilllflrdlfillb must do their shrirc to rum-t the ilrgont needs of the times. liloat of the increase in our tuxr-s is a result of the excess profits legislation and the accompanying rise in the corporation income tax. “The basis of this legislation is partly economic. and partly social-economic in the sense that an increase in profits min tn a degree bear a heavier rate of taxation than that which npplics m profits-generally, and social in the sense ililrt. nnfwulv i- ti. be permitted to make unusually large profits as a result of ihc war. Yhile we can all accept these principles. it should he recognize-l that the excess profits tax is a very difficult one m admincror in an equitable manner and that in its general application it fails with undile severity upon certain formerly depressed industries. For this reason, the action of the Dominion in soiling up a ltunrd of Referees to consider applielit ions fnr adjustment iillll the stated policy of the Government to strive for ‘fairness of inv-iilcnixz’ and in combat ‘unjust discrimination as between taxpayers’ is commendable and encouraging. “It is a fact that the Income Tax Division of the Dominion is faced with a staggering increase in its responsibilities-not. only Iith regard to excess profits but with regard to the expected million nf ncw taxpayers under the personal income tux-rind in tlicsc circumstances the businessman must ill‘t't‘]'ll. uitll put rcrice unavoidable delay in the treatment of his just tux prtlillt-lns. Nevertheless, one is justified in emphasizing the need for the greatest possible despeitch in the treatment of cnrporrltiorl taxa- tion. The efficiency of the business structure will be cnh: -d tux assessments are not unduly long delayed and b permitted to know just how it stands as promptly as is I . Importance of War Savings Plan “I should like to refer briefly to the War Savings Campaign now in progress. There is sometimes a. tendency to dismiss the Savings Certificate Plan as n. matter of secondary importance on the ground that it is capable of meeting only a comparatively small fraction of the (iuvcrnmenfs financial requirement- in the. near-term future. Admittedly, the mlrjor instruments oflnoney- raising remain taxation and War Loans. But the Savings (‘cl-tili- ‘cote Plan has a special importance of its own in that it rcnclrcs a. very large group in the community which is beyond the full scope of the two leading instruments of finance. If the war could be financed largely out of the incomes of the betfer-to-di) group 0f the population, taxation and War Loans could readily sl-rve the purpose. This, however, is not. the case, for as th ‘ w dent has pointed out, we as a. nation have committed ourselves to spend all that can be spent effectively on the urnr effort. Every- one that reasonably clm will have to contribute. The Savings Certificate Plan provides a way in which people of moderate and small means may contribute regularly and in accordance with their individual circumstances to the rapidly mounting costs of the wlir. The prcsent campaign, which is chiefly directed tau-uni developing such systematic saving within the fralnework of the business concern, deserves the fullest sup ort not only of cm- ployees but, also, of employers, who, lly cooperation und enti usiasm in advocating the plan, may contribute materially to its success." to - Warlimo Control “The President has referred to the increasing variety of cori- trols which accompany the wur, but in the practical operation of the Bank we are brought, perhaps, more closely in touch with the Foreign Exchange Control Board, the officials of which. since September, 1939, have had extremely arduous and complicated duties to perform. We have no hesitation in saying that they have rformed these duties efficiently and well. In their activities they ave had the loyal co-operation of ourselves and, as a matter of fact, of evcry other bank in the Dominion. “It is quite possible that for the most effective prosecution the war more control and rcgimentation of the country's activit‘ than we have so for seen may become necessary, but there i” doubt that once the necessity therefor is understood such com will be accepted without question and will receive the full anal“: of every section of the Dominion. We all realise that the " ‘s; Empire-whlch means each of ua in this great comrnonw/ ‘,4.’ nutions—ia fightin for its life and that money, profit“ ‘ e itself, will be value ess if saved at the price of freedom.’ Our Friends Across the Border "In this vital struggle in which the Empire is cog-m‘ we a," encouraged by the growing and concrete evidence imp,‘ Y and sup iort for our cause from the Ilnitcd Stsis"“'“ m‘ expresse in the words of its great President ar ‘a °“" 0w‘, meetings and correspondence with our businesa,“ Pemfin‘ friends there. Iahould like to take thiso pcrtuni 9 s“3“2,3h°,W much we a preciatc the whole-beam co-op""‘°“ ‘m c p of our frienclh across the border." ~ Operations In London, Eng?“ “Before concluding, we should say aometlgi? ‘i? go“ fibou‘ ‘m’ operations of oilrdgnéidon, Itiflzieglggisilt, filtefhtghflg: o, “fig/gig muc in our min uring w ' bfilllltlillfdéllfillt of uLlpndizinfi Ia is grgtifiyigl ‘ézkhlngzlfltgfii ‘$130K: t cony nmages ere as cent e e- in our premises. but having regard f‘ s“‘efi¥d°‘,‘,‘u‘,§“‘.‘§ w‘; have transferred the hulk of our actives i,‘ l‘ i,‘ ‘,6, “m? F, the City rind maintain at our City neg ° ab‘ C “ ““ ‘fh‘.‘_,' most of our business being conducted‘ l’ a s“ u‘ 0“ are“ I‘ we have chosen. Our Manager and ‘Pg “m °“"‘y“‘:d°3 no: traditional calm and indomitable H“? mfmumlvad from m” apparent from any of the romm-“mifmm rage‘ ,2 , mum“, t.‘i:‘".i::.-.:; fi".'i.t":.:.:"‘t.:“:tll-Y€ tl§~§2éi‘i%r’-l-r <fn- LOIK on ISraiir-h a llnep debt of x-‘mudc ‘,°‘ 12°’? flptglim“ to fdlxlP Bapkb interests unde elftlume)’ cu am y g con tiona. ' Trjbre to Staff I "In Canada. and in th Nils‘, ‘:'°““""_°,‘r,w‘_‘°,‘:, operates. your interests ririiewf‘ "'7' " mm" "m ' l v ‘ Qmpmn, “My Th, PM,‘ car has made extra tlPllllllltlw on ‘l-li personnel, requiring in self’ "1-“95 fl Fllll-‘tllufiul amount m nvr-r time work, which has be‘ ch°°"““‘3' Ewell‘ 51E on MIIitnry Duty "We now have 1891195109" f)‘ ‘he Bank.“ "an ‘l? ‘FAVE of absence for niilitary"“-"." “'.“““‘ "c ‘.'°5".““° film“? " mnhflnfi n, n,,|,,,,,.ugelnt allnrlrgr oniounr ant u. . ., V‘ Fnglund [n Bddton, we hove nlintlrcr ‘J9 fllliviW: who ll.\\t vnluuteered f0,- 5 lice and lire subject to (‘fill nt only llxllllt‘ nllllnl,» u, rent ,.eg,.,,,. at we have to report trio clisun w. Alli t» w] ital-y duty in the past year-unz- mumlvcr in tlii om-o lag” onghaving been lost in llPf-lfin mill fllllllllPl‘ Wlillr R0‘ 8:] AHITIZOIIOSIIIHDS of all our nflicers on military .-i~i \ rm m’ forlhem until their rctiirn. \\’r~ kriluv that tlir-‘v i “M, mom U; gonri ivislrcs of the shareholders as u cll a.» th t ~- the exccutix’ “d Bu?" ii g PACE FIVE _ ..~¢ arrflrrrzecwn » .- s". other fairly active jun..rs at mod- erate price declines were Brcuian and Senator Rouyn whi‘e nail-cw gains on gcod action developed in Arn-tfield, Bs-bjo and Mad-sen. Better prices ruled for Carib o. Contour-um, Sylvanlte and Wright- Hargreaves and moderate Weakness was dis/played Benttie, Chester- ville, Perron an Upper Canada. Pend Oreille and Sherrltt were firmer and Falconbridge 5 cents lower at 2.05. Abltibi pod firmed 1-2 to 0 1-2 and other papers were stteady along with the steels and senior ols. Fanny Farmer advanced 1-2 to 2'! Walkers oommzn gained 1-2 an moderate gains were held by 1m- periai Tobacco. international Utili- ies A, Massey-Harris pfd, Pressed Metals and Ontario Loan. and Calgary-Edmonton were up 2 to 8 cents and Anglo- Guiadlan and Okalta narrowly 14v- er. a Currencies _i._ RR, Jan. 23-“019-‘1110 l! l-isuall n . '" “- l-Jttit. "tit. ‘cuss: 200 “m ladder: mm mm NEW YO _ oanedian dollar railed briekly on tn free foreign exchange market today after several days of declines. The Dominion unit aloud I cent tOttawa Fc-reLgn Exchange Con- tFOI Board rate 9.09—-9.91 per cent discunt.) At the same time. the Kong dollar gained .05 of a cent. to tcuch a new high for 1941 oi 23.02 cents. The Swiss franc and the Argentine Peso both mad-e small gains but other major currencies were unchanged. ‘The pound Ster- ling c1 sed at $4.08 1-2 for open market cables. FINANCE By Frederick Glrdflfl‘ Aggoglgkd Pres; Financial Writer NEW YORK. Jap, Zil-tflfl-At- temgts to extend Wednesday! mild stoc market rally into opposition today and early gains o! fractions to a int were chipped down or turn into leases at the close. Active Canadian issues improved fractions. Dome and lake Shore Mines, International Nickel Walkers were a y. The Auociated Press average olf 00 issues was unchanged at 43.7. Transfers totalled 466.130 shares pampered with 520,700 the day be- aiffl flniishlnl b12116! included ‘ , So th R llway. Un- _ fl*“b5l~- MINING f 1-’ ‘f? War -— 25 Years Steel. Chrysler. Moirt-gorntry Ward. . k, , 15 om? f‘ _ \J Bar's- "t"l§°f°{<“°°.8f.ll' firth» tract. it? “ ‘ H .l., Staiidar 110 - .. Pfi - Cord (Mg 11 . 7 A T d “'<‘§.f°fli‘é‘it“tg’lilii“tiit “at... ,.. ... .. , ,, 53ft?“ 4 ° ° 3 5t ' Illlfl III r335 Crllllllfll’ (‘O s. - f l} i pear]: Gérgptigac} lvgilgggzrtseagjneggg TORONTO, Jun. 23- lfgahrrow ' 51g 1-2: kiln}? 81.1,; 15,2 _______ uc , . a 110i‘ a - ~ 73,, l. TBIOPYIOIW. N-Y~ Gem-ml- GYC" Stocks C1058 Hard Rock 100 glffifrow B5 (Bvv The Canadian Pressi r Northern. Wcstlnahvufie- Allied ilnrkcl" 5 pry-Alex‘ as JAN, 24. loia-oermnn nrfillely Chemical, Cons-lidflffll E015” and Acme 011 i! liiollirlscr 13 proton Slfi tmnharcleri trenches near Nteu- , , Du Pont. Aldermac 14 Home 011 2142 slAnt l3 port, Belgium. but Allmd to cos 5 M1810 C1111 70 HOWCy 27 .ii Ant 252 withstood subsequent infantry‘ :u- Amffleld 7 3'5 Bud B" Ml“ 25 §““ am River 1-3 tack. British occupied German . Astoria 3 Nickel 35 4-4 knggoy no 1.3 camp ma, Mbuyun, m E35; Mfg“, Allnol‘ cold 220 Jack wai 23 herrltf, s4 _,___________ Market At A francs“ .6 ..:1- sic» 5 a eri Beattie 116 Kirk Lake 9B Slade“ I Bid a 11 l-k.i rosi- a 61117733 Bobggo a 11.5113 8f‘: 5g 2123; hi“ - , Bra orne 10 1-4 , i.eitch 111 - Brit Dom iMacassa 415 fifivffill, grtitxlélilflnt g2 1-2 Qgagsheod zgra 4 mp Hugh T u R E N T . a on ‘i a en - 1- a m ~. , (B! The Canadian Preul 822b,???“ 2:3 1,32,33,00 a U3’, 872d d,‘ Trgltrato-er. Stocks closed alllhtl! I 8:2, w; ‘Q/{icgvgtgfirs gprpfgre! a ____ M l. l-Utllitl . no ‘ - 1 W“ 1e Am“ i‘ cad‘:- hn" e““'"p"‘:‘l;um:a'“ l 82551020111!‘ 100 lllglrllazaKirk a: l-2 “rendm, ‘ " 0- ' BM "h" I Coniarum 150 ‘ivtin-ulr v 2 3-4 wfl’ "a" '4, Nose: York-Stocks closed nnehnng- Dav,” ~H a“, , Naybob 2,, Ymll‘ Y0 gunabk for a ha“, ' l; . ‘ I I‘ 1 3-4 ‘ . . ‘ Winnipeg-Wheat i-s cent hlsh-‘I- 3321130,, ‘l: §f§gf§fig no UNIJSTE” . N"'d\'°';"-Cg'i‘;l"- Iuhmf- "'3 " iguqcesne i’; Ndranda 55 l-g Pena o" Plloue 8“6“' I In co ea g er. may Ma] 273 Nm-(lr-n ‘i l- - , ——-—-—-————-—~— F.‘ 215 .N etlil 38 "T" = Keep Minnrrl’! In the home. pa; ‘fflfl, ‘5 b2 ,og3",‘l‘cn 9-, Use ltflnards for dandruff.