blur. cimzpojrfijaroww GUARDIAN _ PAGE FIVE Canada's War Effort -lf"""‘“_' S‘°°" New Y°"' 5”“ Through Taxation Bank Works W‘ E’“""“"'“ E"°"‘"'“ llalf 0f Year For Governments W“ (canadian Pres!) 1490b“ (Canadian Press) n. ,97'OCK QUOTATIONS Reviewed by Bank Iieads year. due to increased temporary facilities provided by the elevatol companies and continuance of III: quota delivery system. Our va wheat reserves undoubtedly are rm gzirded with satisfaction by the B!" tlsh Government as an IIIIDOYUH: war contribution from Canada." I' DECEMBER a, 1941' _ __________ ___ . Banks Iiave Done Everything Required To Speed War Effort _________-_ GOVERNMENT FINANCING i, Jackson Dodds Tells of Co-operation With Government Dealing with government fina T91 w] ism‘ I I" mach ch" and gandlftof galliladfliIayiawIgn or sing, idile genleraldmirinagers’ rep? Am O 5nd p _ re 1 an 0w a5 e pontc out t. at ur ng the per “s2: film" a 1-= empire iii l-i “fir” M°""*=' Preside" "uric-e "hirer-- which ~————— . _ i235: 0% W, ,1, A 6 H mmwm Low s-a aintenance of Democracy I_s Demanding-Sees Can- WIDE GROWTH 1N ALL ACCOLNTS ment, exclusive o; Lfg-Qgury 1,11, m, W, Pacific 1 a 54 Ema”, m, as adlans Ready to Make Sacrifices Needed in Will to nliclns, Wgmgated $1,206,820.00“ pin 5Mmh9 711-3 Beth Steel 119 1.; Victory Canadian banks have been eible to render every service required “This figure". he ‘mmmucd- “I! $01191?” ._. ghesslohio 37 g4 of them in helping in the prosecution of the war. Jackson Dodds. ‘fwd? p2,, “cewtisszfeff Ofgmzgogio 3g er _ O. B. EL, reporting for himself and G. W. splnne , Joint General an- ' e" - n * 5 1° pills 5mm‘ 215 Con Edison S: 124th ANNUAL MEETING agers of the Bank, strrd in his address to the rrxeeting That thilewhas Chartewd banks I.“ DPCPIIIIIGT Ind pit 5Bfl§gge 931-4 E‘e0 Auto Lite 25 5.3 been achieved with complete oo-operation between the banks thegov- 363a,“, IYIIIImIIQtISSU‘; “I 5200-09“ - Gen lee _ erriment and th Bank of Canada ha ' i ' P" C?" - 11° "5 I" l‘°"°“"» mm steel B g I z Gen Motor: SI II-I The Imandil and industrial affairs of a country engaged in oil-out great, extent. by ethe mariner in WIIICIIS IIIIZeYCIQIIIIIIIIIIIIa lapirorfibillzshieiasrchiedtolt: °I szoo-UOQGOO 2 p" “"1" “m” “a 110d?" m _ Gt nor Pfd as 1-4 w“ "e" “IN” ‘i “I” 124th ennui" meeting of the Bank oi Montreal responsibilities and by the stability which has distinguished its execu- “’ m“ “m” shml-i’ "1' 1' ‘"6 W“ pen "1 w‘ n 3.3 Kennecott so i-a y°"‘°'d’“' by u" President. Huntly R. Drummond, who told of the nc- tlvn of monetary policy. “m” °' "'- TI“ m0“ Imlwri“ i M, jrob 32 ,4 Mon; ward so 74 complishments of Canadian business-and of the need for still greater “pemtwn °I the Year “I'M m“ hm?“ lii Nickel 1'1 1-2 N Y Central _ effort. "we are fishtlns an enemy whose whole effort has be n d RevIeWIng operation‘ for the pa“ thmugmut me ummry‘ This "wn" 1y sucimmu djsmbuho“ or “I. e ‘Wtds 3 1-2 Nor Am co l2 1-8 throuah years to one end. world domination“ he declared t‘ ed ievowd year and changfi In the balance has been s“ to w°'k_parm' by m4] VIIIK-"vi ma“ nfafpm: my “m” N011 liiont. 21 Penn RR a 34 w meet m," challenge" Inustratm me ether‘ o‘ c M ,. 0n we have sheet of the Bark, Mr, Dodds refer- the owners themseives in new 1n. 11c subscription early in June, ‘lire 1m Brew 33 14 Phil Pet Co 44 3-4 taxation the president ‘aid. i-yo 3 an as war effort on led to the increase or $35,000,000 in dustrial activity gfdflfing 0111 0g amount nnmcd in the 11in i4 illt steel car ‘a b‘ std o“ NJ 45 b. it do” é‘ divldendr ms m. ur Bank pays in ALL taxes as much as DRUMMOND total assets which, at the end of the Canada's war efforts and partly by W“ 3500909900‘ but U“? Milli“?! inland“ 3 1,3 ‘Ilexa-s Corp 45 we work for ' o er Wonk’ 1°’ m‘? mil’- BIX months of the ygpr HUNT“! B‘ Year amounted to 81.046.600.000. The the government though the agency °Y Final!" reserved the Ylilllt i0 Mei’ 001D l3 l4 Unlwd A1,. as 74 Bflfvemments, the last 51x month, (o; ourselves-n increase in assets, he pointed out. of’ its greatly increased expendm", accept subscriptions 1n excess a! uiriiifa“ I8 U s Rubber __ The part the bank has la ed in occurred mam!’ I“ m“ “d m‘ based °“ "”““I°“ “d b°"°“'“‘3- is m°um m“ mm sub5°“““°“' pi Lnll‘ 9°" 17 U S St C0 ll ‘I-l 11118061118 a war-time ‘rial’, 1,1 1 ?——— Mtnmmmond mgenedwme dcm, counts and in investments. Deai- Secondly, the employment of money I'° the ma" “swirl-med $337i0°°i°°° 51 Law Pfd 651a vanadium Corp 20 1-4 which has brought caring‘. g oin frondof business in Canada, this finance c; commerce and Indusf/fy ing with other important changes, for non-essential and speculative "m" nufli’. a mum)“ SIIb-‘CTIIYJTS- El l)‘ U“ 7g 1.3 West Union 25 1-2 Hess w its higncl recordixd lgIIe-l en may be expemed to conthue" in the former country by the exi- he 5H1d1— Purposes has declined. And in the w” have “SSIYMI. mm-Y “I m" m“ m1 Cali PMQ west m“ T’ 1-8 was marred w. assets having ex_ WHEAT SURPLUS REDUCED gencles of gtie dfiIéfillCtlé grozranmée. qz-lflysulgkraizetg toftal fr)’; third] place, mailéiy pre-war bormw- £13135: rtgr fitllllIiSCglbxop making ail- ‘ -“'— Woolworth _ panded to the 1113,1195; Mel-as, m with expen lures, cu mg as - . e n. o a a . es ers ave repa their bank loans. ,, 5 .5 " ~ _ the bank's history with 10am in ni dealing with on Lend ow euons, now runnino thepubiie. ‘The effect oi these various fac- Gross rewnts bi" '1“? Dominion ' - ’ 9 IBflOUItIIIaI Jth. "Note f d - overnment from th a‘ canoe; 1 e _ close to $1,500,030.00!) er r1101 s o an deposits with the tors is repeserited. as far as this g . e s ° °f W“ Ii T98R41 b Over $36,000, situation. Mr. 0nd referred 1n Britain, he said, hat, beyond Bank of Canada are $9,600,000 tank is concerned by a gr-Qwth o; Savings Certificates rind stumps Montreal C urb 5v Bernard S. 01h" (Canadian Press) . '. Press Financial WfII-Gl‘ ‘Iéyliiugoirlc, Dec. 2—(AP)—Re- vtry showered 50W“ o" the ‘we fro, rosin; oiler a long dry wig 5W5" no IIIC list enjoyed one of Abnmi c ‘m; ,,d,»a1n~¢5 of the year to date. 1 0m (Iallaiiiall stocks rallied" to close Abtibi Pfd m“, fr,-acg.jgns higher. Interna- Asbestos II-Iill Nickel common and prefer- Beauharnois “'4 hares 01th gained 3-8- Hiram Don A w, a 1 Canadian Pacific and Fraser VTC D1511}, - ‘mm 1-4; Dome Mines Hir Walker 111- l\Il‘Illl-'l(‘ and I Lake Shore Home Oil lnir. l-li enn. Distillers Scagrnm Imp ou ddeclulrd 7-8. Unchlifigefi We" Int Pete gtziliril Traction, Ford A and Price Com Q O S '15 r1 § I! D. ta I 5| e355! idiot: . '.l %€lIAs-.D¢1a1ed press average of “sucks Wat‘ up '7 nOIaiQIvIlIIrIiIc-et DI m, duiilicii mg i1 , i. i. r- BANKS "wrong by this CClTIp-SIIIC once 1101.21. Heavy offerings of issues _ IZIIJX ))'ll 3'05 continued but. buy- _i_ ‘u! 1n; eiscv. .ev\v-.1s slfefidlf I" the (Canadian Press) Nnglufhng ni-iod and transfers to- lrlni 1.182240 shares. largest stock: Illriiover since July 22. _ Prominent shares in the days Canma _ rung column included Union Pa- commerce 153 Close tilt, Atlantic Coast fine. Santa Montreal 185 Fe. southern Pacific, Great North- any,“ Bk 152 14 iiii. Southern Railway, U28. Steel, Nova scam _ Eeiiilchcnl, Youngstown Sheet, General Motors, Chryslenn Ggoorlii- ilcli, US. Rubber, Sears oe- uc . , Untied A‘ "aft, American Tele- piiolic. American Srneiting, Amerl- A can Can. u; I i-mgléoitltse. Du Kigali llilb Cur 1w. a. man a ini goulh Porto Rico Sugar. 01108 l Steels overcame early apathy oc- czsi-nril by talk cf a new '03:’!!! in" ____ - " a . s "4 dine lglynlilll‘ (tayrsanadsgrigticiélk (Canadian he") "I 17*’ Iwflmncy du” m Pm‘ Toronto and New York-Stocks jetted n cc ceilings on passenger clued m hm (1.5 Cflfi Sifimififi OLII: ID IIOIII. VIII-I’! Munureal__ "nu" lower: toms. the motifs. gapers and other industrial: lgher. Winnipeg-Wheat l-8--3-8 lower. Professional Bards vg,g;»;,i,,-,_c»io-. w» n- i»:- McLEOD 8. BENTLEY iv. E. BENLEY, K. C. J. A. IIENTLEY. K. C. (t. F. BENTLEY. LLB, Barristers and Attorneys-n- Dec 2 (o?) “w Law ‘IWWN 1°. - — — Toronto stock market had a spurt "0"" T° W“ of trading In the final hour today I54 "In" 5""I with prices firming and all four lndices were u at the close. Indus- -_____i.-- trials advance a full mint 1n the i s£::..":.i..%“: inter. fiknfrififi IIoirelI alifI Company II. F. IIIIOIIIBALII groups were Just slightly better than even with Monday's closing prices, Volume amounted w 230,00) shares Chartered Accountants Eastern Trust Building Charlottetown To. into Exchange Trading was quiet. until the final hour in which 79,000 shares chang- ed Ilaiids. Utilities, steels, senior Z‘é‘i.‘.“'..“i‘“‘i“o“2i’.'tii.‘i“ii‘*; n s e pe . n e upIzward. Hiram Walker szld at 50, its liigll for this year and closed at 49 'i-8 for a gain of 1 3-8. Other industrial: posting gains of a point. -»_~______--- 01' morenwerf Gaygieaulgfweil; Pid- MMGwGAN s, fRMNQR Massey- arrs p (o . age- lilnii n. MncGUlGAN. IL o. ffjflfyg “d st‘ “ma” Wm" ' d III CST. CLAIR TRAINOR. K. O at Mk“ PM," p‘ W“; back 2 1-2, Huron and Erie lost 2 Barristers. Solicitors IIIINEY To LOAN d W l Al xander was down 3-4. uggico: (_)vcertPr0vI|é1;:5:_|B-nawfl “IIhe 31d sIocks reduced or eras- ‘“~ '5~—-———5—— -——- ed their losses in the final period. Upper Canada was in demand at a gain oi a few cents, gains of a to cents came out for Perron, Queenston, Broulan and Madsen and Little Long Lac firmed 15 cents to 1.70. Trading in Steep Rock picked up late in the day and" the price od- vanced t: close at 1.01 up l0 cents net. Shel-rift added 2 cents and Waite-Amulet welkened 5 cents. British-Dominion a in featured the western oils. tra in; in vol- ume of 21,400 shares on on advance of a 1-2 cents to l0 1-2. Calgary and Edmonton firmed 6 cents to 130. Home gained '1 to 2.55 and Davie; timed a cent to is. ii EYES EXAMIIIEII AND IiLI-SSES FITTED J. S. TA YLOR OPTOMETBIST c New Location vrnor Kent and Queen Sh. olliinslte Blx‘: Grocery "mmls B A intmenln. Phone Risldegg: ioia. i’? Montreal Exchange PALMER & HASLAM Li. HASLAM un.. LLB. ainnlsraa, arc. i “°“T'§l§““tnD'i§r “$5513.95 “Incl: llvoro Scotla oil-mom {rflflynfifinfieuf Wfmomru m. ‘h. Maiifififmfg" Eofint stock market wrIay after early ir- IEI5 |,_ °_ a" u turned firmer in tone. except utilities were .5 II- I- McPHEE l.A., . . hlgmhlting the average in Indul- ‘Annagganv be. r trials gal‘: 0:32:22‘ gins‘ gal; . . , r Bllllillnr ‘ ‘IIEII-Ihwl?» If? Mission, the lest-named ‘Witching frun a loner to even. Behind were Dosco "B." 13411-00" bridge and steel of Canada pre- III ~~ IELL & MATHIESON i MONEY r0 l. fr,“ Pwp0:IIIIEiIeI-PA"‘(IIIg hesit- Iiuieron Block, (‘IIQIQONICOMIII telrwirrfni-Igvlllrlnfs Ind Bl. I-lV/"Ii" {- ~ - e u res - nlfd=z= cvgioifion vafitm agrarian‘ Co, M. ALIAN FARMEI innbia Dower "A" and Bhawinlllfl- -~~ n- f°“"°’i i:".:.iii...:":....:. :2: (Imflifrn. s0|.|r-.|1~0|\ 31-1; ‘a rliglIi. advance. 1n “gall- n s. ' i , nger uorfifrdiocliimiiii" m‘ foTeiigggrhfir Yofiooirnii» o. o- podln t ala r . .- AL ‘ T?" Metals and oils were mixed. in- ~ ix W. MA HESO tgrnltionul Nickel hardening and -' I IiIr b k- ~'I.‘""TER soawrrnlr no. §°=II§III'I§IrII'v“sIt°PloIr. rriiireiin a "I u!" Collusion advanced and International Pet.- i flmt George ltrsoi. rolsiln unwed In (WI- 000. but with eam-ngs practically unchanged compared with the pre- vious year. The return of profits of 833137.000 on assets of $001,000,000 was mentioned‘ as showing how slender a margin of profit remains to a bank, considering the amount of funds it employs. Canada's war effort which hog been attended by an industrial and economic revolution in this country, had a dominant place in Mr. Drum- mondb address. To say that busi- ness in Canada. had reached a level unparalleled in the country's his- tory he regarded as doing but scant justice to the effort which had been Put Ivflh- In a country cccupied in Peaceful ursuits, a large army and navy an . it was not exaggeration to say. an unsurpassed air force, had been built up. and cm the hcme front war industries of a nature un. known here had come into being and were doing splendid work in furnishing the tocls of war to our soldiers and the Eimpire. As to the wor-time relations be- tween government and business he continued: "More and more our Government is entering the realm of business by building or financ- ing the plants which our war ef- fort is calling into existence. In the present circumstances. a de- tailed review of business activity is not necessai . Sufficient it should be to say t at business has now reached a point where unemploy- ment is practically non-existent and to continue to increase our war effort we must curtail l_-l other spheres, be prepared to accept ma- terial sacrifices and to subordinate individual interest to the common punpose. "Starting with a bonus on wages to compensate for the increased cost, cf living. the Government has imposed ceilings on both price; and wages. necessary steps to avert in- flation which proved so disastrous after the last war. Wit-h work and wages at the highest point in our history, the fem tatloii to spend in- creased wages natural “The Government's action is a venture without precedent in any free country. The Government itself admits that it is an experiment and that, to be successful, it must have the whole-hearted rec-operation of the people at large". GOVERNMENT CONTROLS ‘fin regard to price controls Mr Drummond declared that such con- trols “must inevitably be followed by rflslllctlons on e production and sale of goods not essential to our war effort; in fact the Govern- ment nas already put into effect curtailment of instalment buying and restrictions on many ccmmodi- ties”. He continued: "You will agree with me that the people of Canada are ready-more. they are eager -- to make any sacrifice the goveigiment calls for in their will v ory. “Meanullile, the plan is a re- minder that, in a war for our very existence, profits must take second péace lii our minds. Morally, profi- erins. has no relation to size, nor does it apply exclusively lo em- ployersdn spite of the contrary im-pression fostered for so many {firs in the minds of the papilla- u. “When the war is over and Gov- ernment purchasing disappears. itis essential that. Government controls and regulation be removed with all possible speed accompanied by the fullest amelioration in taxation that is allowable, for, i.f we are to continue In a system of free enter- grise for which We are fighting, it to private initiative that we must look fcr resumption of normal acti- vities. NOthiHE f-an stifle individual effort more effectively than exces- sive regulation and high taxation and no oine can undertake new ven- tures unless permitted to retain the gaflitt: which arises from successful or . “Through its taxation. the Gov- ernment has conscripted capital in all business; enterprises: it controls the credit situation thro h the Bank of Canada. curbs ent buying. limits the some goods such as automsbfles. radios. Mo. fcr-bids wage increases except as the ccst of iving rises, and doubtless will have to I0 even further nion: similar lines. IANICS ASSETS A RECORD In referring to the bank's year, ‘the president pointed" out that the average assets for the perlcd had risen from 80731100000 In the ore- vious year to s1,oof.0oo.ooo, "the highest in our history". Further. in regard to urrungs and operations he said: "Our earnings of $3,437,000 compare with $3,438,000 last year. Thu-s we can see how slender n mar. 1‘ gin of cflt remains to a bank. ccnrder ng the amount of funds it employs The reason fcr th‘s is. as comcarod with pest years: eel-ease In loans. wit-h r-crrespon lng in- crease of investments which re- duces our earnnvv. Nevertheless, the Bank has not swerved from its policy of carrying in Its portfolio snort tenn bonds. even if the In- terest yield is lower. "In point of fact. over 9Q per cent. of all lnve-frrerits mlIllN be- fore the end of 19's "In this year it u satisfactory to m-l- our tears lrve increased B0,- 000000 and with the vest expan- to the fact that a year ago cnnndn providing the bare essentials of a W“ fwd with the largest stock of greatly modified standard of living, wheat in the count ' histo means 0f Subsidies gas Goverrnfinegst had reduced the acreage sow; w wheat and nature had reduoed m, or? so that today Canada 11rd 91; ml ion lvusheh less than last year; trade and industry are being devot- ed dlmcst entnrely to the prosecu- tion of the war. Continuing, he ra : “Nowhere among free nations has industry ever been keyed b0 such but it would all be needed in time Intgnglve and relentless product-ion, t0 Iiellp to meet the needs of the conquered nations of the world, Whom Geirnnny was deliberately siflfvlns. Further. "the knowledge that it is the intention of Great Britain and her Dcmlnions to sup. alls; this. help given w the world by far-sighted Prime Minister of Great Britain, wlngim Chm-chm will enczurage the will to resist; or “I! the “BI-IONS now under the Ger- man heel", As to the improved position o1 the farmer as regards cash income he continued: “It I5 o. pleasure u; see that the cash income of Cana. dill" fflnners Dr mlses in 1941 to be substantially largel- than the to. i111 o! $715,000,000 for 1940. and Whle no precise estimate will be almost to the total sacrifce of the rsrnal element. as in Great Bri- ain at the present time I am sure we cannot but admire the courage, the steadifastness and the resolu- tion of the whole British P901319 under conditicns not yet had to endure here". which we have He added that “welearn from Oil!‘ London Manager that the extraor- dinary and continuing increases in Canada's contributions of men and material to the prosecution of the war have deeicly people of Great Britain. impressed the RESPONSIBIHTIFs 0F DEMO- CRACY 1n appealing for greater efffifi Ill INDIVIDUALS AND BUSINESS national financai effort: tures undertaken by Canada on this year. his obligation to 96y taxes." available until January, tentative estimates. based on incomplete fig- ures for the volume of agricultural marketizlgs and the official index for farm prices range from $900,- 000,000 to $950,000.00). The dISI/Jl- butlon of the increase is by no means uniform, however". EXPANSION OF FOREIGN TRADE With the country's foreign trade increasing to record levels, colloi- tioned almcst entirelyby the war, Mr. Drummer-id emphasizzd that the attem of the Lrst war year had n fuirther lficcentuatfd, wiith thug report on o expcrs gong great Britain and other Empire countries increasing from 51 per oent. to 56 per cent. of the total, while the bulk of imports, actually 60 per cent, con-tinued to come frcm the United States. I-fe went on: “A notable development dliring the past year has been the cultiva- tion of clcser (iirplomatic and trad- ing relations between Canada and Latin America. Ministers, have been exchanged with Argentna. BMZII and (mile and new trade agree- ments have been concluded m‘ Bif- mnged with Argentina, Brazil, Chile. Ecuador and Uruguay. The exigencies of the war and the lack of shlppln may prevent the full benefits those closer contacts froim bein realized immediately, but they w ll be rewsnlud on both 51d” 11g d gmstructive basfs for the development of wider trade chan- nels when peace returns". Credit was given by Mr Drum- mgnd to ilie agreements between Premier King and President Roose- velt for ha obviated. to a large extent, the ficulties in financing the purchase of increased war-time supple; from the United States, foilowi the dlsa. once of the free exc ange ma for the pound sterling. The ex on of the GOVERNMENTS SHOULD SAVE ALSO In calling for public rt of the Government's ffnanc II wor e invol emenditures Ior the year MWIIJIOILOOOOOO or more, the s alter stressed me need to save, 0d ing: "The duty to nave not onl on the citizens Dlylnl a great part of his incune in taxes and who ls making genuine sacri- fices in order that he may lend his savings to the Government, as every right to expect that his gov- ernments. Dnrn'nion, Provincial and Munloqnl. shall curtail ordinary outlay and eliminate capital expen- {Iitfiie m the utmost mulble ex- en ". BRITAIN'S GREAT lI-‘IORT Dealing with conditions in the United States and Gnlt Britain, “No one who is carrying his fair share of the doubt as to what. these figures mean. or regarding the courageous manner in which the Government is meeting the problem which they present. Federal taxes this year. together with relenue from other sources, are calculated to produce over 31.400.000.000, which represents nearly three-ifcurths of the tctal anticipated expendi- marking that, while total federal taxes tliis year will be more than two and one-hold times as large as they were two years ago. the amount payable i-n the form 0f direct taxes by individuals and blis- iness concerns is five times as great. "Heavy as these taxes are. they leave the large sum of about $250,000,000 to be financed by borrowing. This is the measure of the obligation to save the Canadian people must "It is no exaggeration to say that. the obligation which now faces every Canadian citizen to save lo the limit of his ability and to lend his savings to the Government is, in fact, as necessary as CONCERNS PAY FIVE TIMES AS MUCH IN DIRECT TAXES Pointing out that durlzig the present fiscal year the Dominion Government is committed t0 expenditures which may exxed the enormous figure of $2,800,000,000, Huntly Drummoild, in addressing shareholders, called for a con-tinuancc of public. support cf the load has any its own account. It is worth re- assrme for meeting the challenge of an enemy wholdfog yexarsfl hasM plrgncd fog wor om na on, r, rummon in his concludin remarks declared: “re-day, llacc with the facts of what total war, csupisd with mod- em invention. means, we have to discard old iclezs. “Democracy gives us great privi- leges, but every privilege has its corresponding d-uty; to keep the privileges we must be prepared to sacgfige gvrrytiltllilgf except ulti- ma ree om £6. ". LOSSES THROUGH DEATH Early in his address the president made a feeling reference to the loss suffered by the bank in the death of two directors. Frederick Merc- dlth, K.C, and ‘The Right Homur- able Arthur Puivts. and _nf the Marquess of Willlngdom, chairman of the bank's Lcndon committee. He also referred‘ to the loaning of G. W. Spinney, J0'nt. General Manager, to t-‘fe Government to organize its Victcr_v Lran Cam- paign, and the success of whose ef- forts was such that "they have again requfsiticned h‘s services to 01800114: the whole tiuk of raising money in ths country". FIRST DUTY OF BANK IS TO KEEP FAITH WITII NOTE- IIOLDERS AND DEPOSITOBS That the Bank was able to provide additional credit to meet the exigencies of war- without impairing its respon- gibilities to its note holders and depcsitorg was one of the dhlef points brought cut by Mt. Dodds in his address. “It Is our business. first of all' he said. "to make sure that we keep faith with our nets holders and depositors. The plain fact is that our very ability to provide credit rests directly upcn the knowledge of every one of our de ltors that. a deposit in this link i: as good as cash in his ket. This confidence has not ing t0 do with the subtle details of moneta ‘policy. It cannot be mocure y government ac- tion. It is a matter between our oustrmers and ourselves. When we teil a man that we will pay him cash when he uks for it-whlch is in effect what we do whenever we credit a gun of money to his account. -he known that we will keep our word because we have literally been making it our business to do so for more than n hundred years. This simple principle is the whole buts of bank credit. If it goes n bank's ability to extend credit goes with it". JACKSON DODDS, O. B. E. higher and amount to seonooopoo representing 11.28 per cent of all liabilities lii Canadian dollar; as compared with the statutory reserve requirements of 5 per cent. "Invcstmeilts, not exceeding mar- ket valuc, carried at $498,900,000 show an increase during rhe year of $37,000,000 and now represent 53.74 per ccnt. of our deposits, 3,5 compared with 54.43 per cent. in October, 1940. and 55.58 per cent. in Ortober, 1939. The increase is partly explained by our participa- tion in the purchase by the Chart- ered Banks of $250,000,000 Domin- ion Government 1 l-2 per cent Notcs in December last. Our hold- ings of municipal bonds have shown some contraction during the year mainly as a result of retire- ments at maturity. Of our $436,200.- 000 of Dominion and provincial gov- renments securities $541,200,000 will mature within two yents, and of the balance i$16S.000,090 par value) ivill fall due before 31st October. 1946. "Current loans and discounts in Canada at $253,500,000 are $36,000.- 000 higher. “Current loans and discounts else- where than in Canada at $21,300,- 000 are u1i $6,500,000. “Loans to cltiCs, towns and muni- cipifitics now stand at $27,700,000 showing ii reduction of $6,000.000. ‘Bank premises at the some figure as last year, viz,, $13,900.000. "In valuing our assets, ample provision has been made for all bad uud doubtful debts and for depre- ciation of securities. CIRCULATION “WILL BELOW LIMIT ‘ “Notes of the bank in circulation total $17,900,000 as against $19,800,- 000 a your info. Our legal liinil. is now $23,400,000 or 65 per cent. of paid-up capltilt. and will continue under the terms of the Bank Act to deczease at the rate 0f $3,600,000 per annnm until reduced in i945 to $9,000,000. Shareholders‘ double lia- bilily (It.(‘l‘\'il5(‘S purl pnssii with lhc reduction of lho note issuing priv- liege. "Deposits by and balances due to the Dominion Government at $16.- 200000 are higher by $19.000.000 "Deposits by the public at $814,- 300,000 arc $64.000,0tl0 higher than a yenr ago. It will be noted that only one-eighth of the increase is interest-bearing, which may slig- lzest to some that it is very profit- able business. But it must be borne in mind that ordinarily the cost of service rendered cXTNd-s m9 flmollilt paid out ln interest and that under present conditions overhead charges are much higher than usual. ‘Acceptunces and lette'.s of credit outstanding total $18,800,000 and show an increase of $7.000.000, due to enlarged requirements of trade and commerce. PROFOUND CHANGES BROUGHT BY WAR. The net changes shown in the balance sheet of the bank since the outbreak of’ the will‘. Mr. Dodds pointed out, might appear relatively moderate by comparison with the profound changes which the war has IllOklflht about in many other fields of activity. "The rapid growth of production during the past two years, “he said, “has required a fairly considerable expansion of bank credit. But the actual amount by which bank credit has increas- ed during this period has been pro- portionately less than the increase o! activity which it has served. This may be explained by a number of causes. In the first place, there was at the outbreak of war a large volume oi idle money ln the hands of corporation; and individuals G. W. SPINNEY 117 million dollar; in our total Canadian deposits since August, 1939. which is a rise or l7 per cent. over the prc-war figure. Reflecting tile more active use of money today to which reference has Just been made, the pIDpOLLIOn of our runds in Canada. held in current ac- counts, as opposed to savings ac- counts, lliis increased during the same period from about one-tlllrd to one-half cf the total. These fig- ures still reflect to some extent the effecl of the Victory Loan sub- scrlptlons Referring to the part played by the banks in assisting iii the War effort. Mr. Dodds stated that to the Bunk of Cilllfltill must go the credit for the control of foreign exchange vizliicli all agree is essential under present war conditions. “The char- tered banks," he said, “serve effec- tively as the medium through which this control is exercised, "It. goes without saying that these benefits have been due not so much to the more existence of a central bank as to the responsible character and practical experiment of those who direct its operations. I.f its operations had been less wisely conceived or had been clumsily executed very serious dam- age ililuht have been rloilc instead." CREDIT AND STABILITY “In rcviciviilg the 1iart which we have grayed since the outbreak of war," the general manager said, “i110 provision of additional cre- tilt is the most conspicuous feature of our operations which appears upon the balance shoot. It is this aspect of banking also, which commonly attracts the attention of people who interest themselves in monetary policy and related ques- tions. But those of us who have responsibiily for affairs of thi- Bank ure bound to attach even greater muiortancc to more fundamental banking func- lions." Pointing out that it is the busi- ness of a bank first of a'l, to make sure nllviiys that it keeps fnith with its lIOIi‘IIOI(IE‘l‘S and depositors. Mr. Dodds continued: "Elcmcritorv as the facts Just mentioned may be, it is well to re- call them Just now. when the banks are faced with unusually heavy res- ponslbilities. and when there are ailcady simis that the more speci- ous brands of so-called monetary reform are being relabelled with a view to the time when they will be advertised as remedies for our post- war problems. It will be c‘eai- from what. has been said that people who formulate theories concerning the use of bank credit but who ignore the underlying fact that banks have to pay cash to their de- positors when they ask for it, are simply bUIIdIfig OBSIIQS In the lii’ upon non-existent foundations." TIIF. WHEAT CROP ‘The 1941 wheat crop in the Prairie Provinces, officially esti- mated at 282,000,000 bushels as against 525,000,000 bushels for 1040, is the smallest produced slnoe 1931. Mr. Dodds said “reduced acreage by government regulations. coupled with unfavourable growing and liar- vestlng conditions, largely accounts for the substantial decrease Mone- tary) ietums from wheat, including all onuses, are unofficially estimat- ed at. $I52_000.000-$82,000.000 I985 than last year. While n consider- able portion of this will be mad!‘ up through increased returns from livestock and other farm ‘income- m we an“ neeegsarilv devoted to when “rowing exclusively mar}? prairie farmers will 7K9“? 0M0!’ sufficient for ilvin! “D9059! “Canada's carryover continues substantial but lack of storage ls not such a disturbing factor from the Inception of the plan in May, 1940, to October 31, 1941, ag- gregated nearly 5100000000 Al ranches of the bank of Cunard: act as selling agents of War sav- ings Certificates and Stamps um operate the Bank Pledge Plan to fa cilitale regular purchases by appll Rants. “In view of the heavy finan clal requirements of the Dom: nion government, provincial, muni clpal and corporation firianciri was in lower vollune than in ti‘ previous year and has been cor fined mainly to refunding open tIOX1S.'I'IlC effect of increased w: expenditures upon the volume i business has resulted in increase revenues for provincial and mlIIl cipal bodies and the rising trer of employment has resulted in r1 duced public expenditure for linen ployment relief. The financial r- quizements of the Dominion go‘ ernment for war purposes make incumbent on other government units to limit expenditure whit may involve new financing. "During the year the British go ernment requisitloned from Unit Kingdom residents their holdings Dominion of Canada 3 1-4 per cei and 4 per cent. registered stoc previously outstanding in i amount of {35000000 and of ce tain other Canadian Issues, Th has resulted I11 the repatriation 1 additional Canadian issues payab abroad." WAR BRINGS STAFF PROBLEM After reviewing briefly develop mentg in Newfoundland, the Unite Kingdom and the United state: Mr. Dodds referred in his adclres to the staff problems with whici the Bank was confronted durln the past year. “The war." he said. "has increar ed our staff problems tremendous 1y; there is scarcely a branch whic. has not had at least one of it members leave for active service About 50 per cent. of our officer 25 years of age and under liavl applied for and been granted leavi of absence to join the Navy, thi Army or the Air Force. in i"cp‘.".cc~ merit of men who I"'l\'i‘ owl: r -' also to enable us to Cope with an increasingly IICHV)‘ vinu...t- o. .o.. tine. we have engaged womsn c}; rk. so that we now have nearly 90f more women than we had a‘. the outbreak of hostilities. some 500 oi them being temporary enlplQvccs who offered their services 10:" tin duration of the war, In the latter group are many former member-l of our staff who had left to be married and who have now come back to help lis out in time of lived They are pezformlng ycotnnn wr- vice. "It takes time to train il\"\\' cm- ployees and this has imposed n IIC8\’_V strain on our managers. ac- countants and senior officers and it is with a feeling of pride and deep appreciation thnt we rcroiiliinii tile way in which ihcj. lime risrn to lllc occasion. In the pllsl \\'(' liiic zrluuiys been COIISCIOILs of tll r whole-hearted interest in tho bank's Welfare and their desire to serve to the best of their ability the com- munitics in which they live. These qualifies of loyalty and svfvlfe “dmIIII-“PYIIIQ \\‘f‘l'C never more iii evidence llilin they are to-dny. Tile spirit of our managers and staff in London, England is typical of the people over there; their faith. courage. en- durance and determination to carry on are beyond all words of praise." EXAMINATION Fitting and Supplying Glasses lite, II. J. MABOII OPTOMETRIST Montague. P. E. I. Office Hours: l0 to I2 A. M. I to It P. M Holiday: etc. by appointment Office Connected with DRUGSTORE ___-__-. rrrsoii LOAIS Ono Your lo RIPIY ggqnsflnndlruuid ‘IIIE Glllllll Ill! 0F GOIIEIGE \