t JANUART 26. 1940 LSTOCK Q: _?__ 111E CHARUOTTETOWN GUARDIAN U0 TA TIONS N. Y. Stock Exchange (Canadian Press) stocks Close Am O and 1i‘ 26 1-4 Am F01‘ 31'" 3 Am Radiator 8 7-8 Am Tel Tel 171 Am Water 10 -4 Anaconda 7-8 Atchison 22 7-8 Bait Colo 5 1-2 Btndix Av 30 1-4 Beth Ste 73 l-'.l Chas Ohio 40 3-8 (jhrysler 83 l-Z Con Oil 24 5-8 commonwea So 1 1-8 c 150 3i 5-8 Curt Wright A 29 1-8 Elec Auto Lite 36 1-8 Elec Pr Lite 8 7-8 Gen Elcc 38 7-8 Gen FOOds g 5-8 Gen Motors 3-8 Goodrich 18 Goodyear Tlro 22 1-2 Gt Nor Pfd 24 1-2 Int Tel Tel 4 1-8 Kennecott 35 1-2 Mont Ward 52 N Y Central i6 1-4 Nor Am Co 2i 7-8 Nor Pacific 7 1-2 Penn R R 21 5-8 Phil Morris 91 1-8 Phil Pet Co 40 1-2 Pure Oil Co 8 5-8 ° $70. cl it Seals - South PM: 13 3-8 Std Oil N J 44 I-8 Stude C011) 9 8-8 Texas Corn 43 1-4 United Air 47 United 00m 2 1-2 United Drila 5 1-8 United Gas Imp 14 3-4 S Rubber 88 3-8 U S St Co 58 1-8 vanadium 30 1-2 Warner Bros 3 5-8 West Union 2i 8-4 "Vest Eieo 1.07 l-2 Woolworth - GRAIN CHICAGO Jan. 25-(AP)—Wheat prices fell more than a cent s bush- el today to the lowest levels in a- bout t/wo week. Wheat 010st‘ 1 1-2-1 7-8 cents lower than yesterday, May 98 5-8- 1-2. Jly 88 l-B-DG; 8-8-4-8 down. May 57 1-B—i-4, Jly 57 1-8; Oats 1-4-3-8 lower. WINNIPEG. Jan 25—(CP)—Mod- erate weakness on outside markets, plus forecasts of moderating tem- peraturs for the frost-ridden ecc- tlons of the United States winter wheat belt, gave wheat futures prices an easier tone on Winnipeg grain exchange today. Quotations closed 14-5-8 cent lower after s dull ses- sicn, May at 85 7-8, July 86 3-4 and October 87 3-4 cents. Argentine prices were down 8-8 cent near the finish of dealings at Bucnos Alres_ __________ Minard‘: is good for sprains. O0 ¢¢“‘ Montreal Curb ---'. (Csnsdian Press) "W" Close Abltibi Com 195 Abitlbi Pid 15 7.3 "ED851438 g5 l! A O11 3g 7.3 Jeouhsrnois 5 5.; Bathtub A 14, 5.11 (An Vi ers 7 3.4 I" 3 Fraser V T C an 1.4 I'd A 20 Imb Oil 14 7.1; M 21 3-4 Price Com 31 7.1; Banks (Canadian Press) Sh“! Close gonad; ova soot! Commerce . '2 Montreal _ Royal Bk 111-1 New York Curb (Canadian Press) Sh“! Close Am Cyan B 3.1 1-4 Am Gas Elec 37 1.2 Am Super Power 1-3 A8500 ‘G85 3.13 Brown Co Pf 33 5-8 Cities Service 4 1-2 reole Pet g0 7-0 El Bond share 7 3-8 Gulf Oil Corp 36 i-z Humble Oll 51 Lockheed Air g9 1.2 N188 Oil 5 1-4 Pant Oil 4 3-4 Produce Prices MONTREAL, Jan. 25—(CP)— ‘Produce Market prices here today, as reported by the Dominion Depart- ment of Agriculture, follow: Butter: first grade creamery prints, Jobbing price, 29; first grade soldlds, Jobbing price. 28 l-‘ll: Que no 1 pasteurized regraded butter, wholesale Jobbing price, 27 1-8; Que no 2. 26 3-4. Cheese: Ont white and colored, current receipt price, 18 5-8. Eggs: graded shipments in used free cases, selling price. A-large 23-223 l-2; A-medium 21-21 1-2; A-pullets 20—2O 1-2; B-large and C unquoted. Potatoes: Que no 175's 115-1320; Que no 2 75's .00—1.l0: Nb no 1 75's ii.30-l.35; PEI no 1 75's 1.30-1.40. _______________ i LYMINGTON. Elilzland —(CP) - ‘After warriin his master, L. R. Em- ,.=lle. of fire n the house a jweeks-olcl Alsatian puppy died in the blaze here. xxxxlxsgv.‘ ANNUAL; ‘MEETING ilueen"s Bounty National Conservative Assoc STRAND THEATRE, iation Charlottetown, P. E. l. TUESDAY, JANUARY 30th. i940 At the same time and pl to nominate a Candidate. cau John H. Myers. ace a Convention will be held sed by (he resignation of Mr. Each Poll is entitled to five delegates. Those from the FIRST and SECOND DISTRICTS will meet in the Main Auditorium promptly THIRD and FOUTH DISTRI at 12.30. Those from th'e CTS will gather in the Board of Trade Rooms at the same time, in order to facilitate the selection of members on the County Executive. Regular meeting will begin at 1 o'clock sharp. l’. J. ROSSITER, Acting Secretary \§§§Q-§.§.§.4A_AA A A A P. W. TURNER, President _.-..__= l stock pflCeS generally lost ground lin today's market and minus frac- tions predominated at the clcse_ Light trading prevailed. - In the recession were Asbestos. Canada Steamships. Hudson Bay Mining, Montreal Power and Na- ,tional Breweries. Niagara Wire, ,tradi.ng in board lo 3 for the first iblme this week, lost a point while in the paper section Price Brothers, St. Iswrence Corporation and Bat- hurst were fraotionsiiy lower, Algoma Steel, Dominion Tar, In- ternational Petroleum and Canad- ian Celanese withstood the selling and emerged with slight additions. C. P. R. Brazilian, International Nickel, Imperial Tobacco and Can- ada Cement were unchanged. Total sales: 52.000 shares; Indus- irYP-i-i. 18.600; Mines, 33,400; Bonds FINANCE By Frederick Gardner ' Associated Press Financial Writer l NEW YORK Jan. 25—(APl-The slock market lacked further rally- ing iuel today and profit-taking on ‘Wednesday's bulge put. leaders down lractions to around a point. Selling was never urgent, however, ‘and transfers for the five hours fell to 543,570 shares against 712,180 the day before With declines mostly in small amounts, the Associated Press average of 60 issues was off .2 of a point at 49.9. International Nickel. Mclntyre, Bell Telephone, Imperial Oil and Power Corporation. in the Canadian 8WD. were easy. Dome Mines, Walk- ers and Massey Harris gained frac- tions. Prominent losers were U. S. Steel, Bethlehem, Chrysler, General Iisq. tors. U. S. Rubber, Douglas Aircraft, Westinghouse. N. Y. Central, Ken- Ilecvit. Du Pont and Texas Corp. Finishing ahead were Montgom- ery Ward, Sears Roebuck, Sperry, Eastern Air 1.411105, Bendix, U. S. Gypsum and Caterpillar 'ITactor_ Youth Training In Canada 0'I_‘TAWA. Jan. 25 -(CP) -Ap- proximately 1,300 young men now are receivng training in aircrait mechanics under the dominion-pro- vincial youth training program said R. F- Thom son, dominion super- visor of ycut training under the labor de nrtment, Mr. iompson spoke to the con- eluding meeting of the youth train- ing conference which iscussed a report irom the Royal Canadian air force concerning suggestions as to how the youth training progett vtoilld cooperate in th war effor in respect to training rcraft mech- an s. The report stressed the need for trained personnel. It offered R. C. A. F. cooperation in certain respect s0 young men trained under the youth "POW-Rm would bc able to fit into {jobs expected to open up 1n the air mining plan. Advertising Rates-Payable in Advance illliliflgsiilllill 98108 Mlmimum Charge for Any Advertisements 25 Cents Central Guardian looflg, 5p e1- word; Western and Eastern locals 2e oer word: Announoemen s and f‘ In Memorlsm Notices 70c per inch; Lists of Classified 3o per word; mlng Events l0 per word: Floral and Spiritual Offerings Cards. eic.. 50 per mime; Letters oi Condolence 70o per lnoh. We ding _a cment 40 words for $1.00 and l0 cents for every additional 3 wor s. Nnilces of Thanks and Appreciation, 49 cents per implication. 70c per Inch or 4o per word. Lists of Subscriptions Inch, Address and Presentation $1.00. Other rates on ___Work Wanted EXPERIENCED MAID WANTS “Wk- Apply Guardian. 14-883-1-26-21. ______________i__ Wanted Fliubsn nos WANTED o wants ° 3 mfllllbs old. write stating ?>h$§sm1n§"g Ii/Ylicinrzieo. a. setup- . - l . T5011 lb - "lile- g? B- L-894-l-28-3i. _~——§___ aptured diFrunfp FEMAL "(r - r: r x. 16°50- I-lova I. Inmsn. A tine °"- L-MZ- -20-1i. _. Lost "Qlfr- noun wmsr was-on. bfifer wll be suitably rewarded l "WT" some at ih- rsslden-e g W. P. Titimlrsh, in ROcPWnv-d "M- LrSOO-l-ifl-Iii. _ ForQSale M___ FOR. SALE - FIVE YEAR OLD Mare also 1% _ear colt. Michael Costello, Green ay. L-8B9-l-28-li. FOR SALE — 4 BARRELS 45 GAL- lons each, first grade motor oil less than whole.aie price. Call Toni Davies. FOR SALE—GENER.AL ‘mat-ran; mare 4 vears. weight i100: Pcr- cheron horse. 7 years, i300: Pol- ciieron horse, 3 vcars, 1200 (broken). Ray MacCnllum. Duti- stafftiage. L-874-i-25-2l. Salesmen Wanted MAN WANTED. GOOD NEARBY Rawlelgh Emile now o way u this year. If will ng to con- duct ome service bitsinoss willie earnln good living. write itnmw- lntely. Wleighs Dept. M-L-470- 48-A- Montreal, Canada. To Let rmisa ruiivisiisn smurf-at. light housekeeping. 100 Hillsboro s m. L-8i4-l-24-3i. 0. F. ARGIlIBALD Chartered Accountant 140 Richmond Street Phone 4'1 P.O. B0! l2 McLECD 8| BENTLEY W. l-l. BENTLEY. 14.0. J. A. BENTLEY. 14.0. C. F. BENTLEY. LL.B. Barristers and Attomey-at-law L-889-l-28-lii. n. Salt-s MONEY T0 LOAN | _ 180_Rlp_hmo_nd___Street____, ALEX W. MATHESON BARRISIER. SOLICITOR. ETC. Money tn Loan Collections Office: 90 Great George St. ______ Chnr_initct_lviwn_ , | M. ALBAN FARMER B.A.. LL.B. lBATlRlSTI-lll. SOLICITOR, ETC. , MONEY T0 LOAN I Bank of Clnllda Building, i__'_._i__’_. n 72.74. ‘Li i ll n; EYES EXA GLASSES FITTLJ J. S. TAYLOR Oplomc-(rlst Wlih E. W. Taylor. 190118 17110111791! "I P Montreal stock (Canadian Press) 5'11" Close Bell Tel 165 Brazilian g B C Pow A 27 1-11 Bldg Products 1a 1-4 Can Cement 7 3-4 Con Nor Pr 1a 7-3 Can Car Fd 14 1.4 Can Ind Al A 3 Can Pacific 8 3-3 Can Steamship 7 1.4 Celanese 33 Cons Smelt 4s 1.4 Dist Sear! 23 3-8 Dom Coal Pfd 2i 1-4 Dom Bridge 33 Dom Steel B 14 5-8 Dom Textile s9 . en ii Gen Steel Wrs 101-4 HOW Smith 20 1-2 IIHD T01) 15 3-4 Int Nickel 44 1-2' Int Pow Pfd 9i I-2 Massey Harris B 1-8 McColl Front 8 3-8 Mtl Power 31 1-4 Nat Steel Car 86 Power Corp 10 l-4 Quebec Power 17 Shawinigan 23 St Law Com 5 St Law Pfd l8 Sou Can Power i4 St of Can 80 1-2 Woe Eiec B 2 1-4 MONTREAL, Jan. 25—(OP)— ‘Sancho A WARTIME ADJUSTMENTS REVIEWED IMPORTANCE OF EXPORTS STRESSED By J. A. McLEOD, President, at 108th ANNUAL MEETING THE BANK OF NOVA SCOTIA it Assistant General Manager, H. D. Burns, Presents Statement Showing Assets at New High Level and Pays Tribute to Staff In addressing the Bank of Nova Scotia shareholders at the 108th Lnnuai Meeting held at Halifax on (Cl-Illilllll Press) ‘TORONTO. Jon. 35- slfltll Clo]; Aldermac 33 Amm Gold 5 1.2 Anglo Cdn 100 Arntfield 13 1.4 Auhor 250 agamac a _Bankfield 1;; 3.4 43.8211 S?“ ‘i’ Beattle 114 Bidlzood 13 1.4 10 8 1-2 Broulan s0 Brown Oil 17 1-4 I Buff Ank 050 Buff Cdn 3 l Calmont 42 |Cdn Mslar 7a I as 'I‘re 71 Cent Pat 350 I Con Porc 13 Chester 911 | Chromium 43 Cochenour .72 Con_ Smelt 45 1-1 1 Davie; 30 i Dome Oil 20 1.4 East Crest 7 East Malart 395 Eldorado 107 Falcon 415 Fed Kirk 4 Francoeur 55 1.2 Gillies Lake 57 1.3 Goldale g0 Gold Eagle g0 Gold Gate 19 Gunner Gold 61 1.2 I Halllwell g 5-5 ~ Hard Rock 12a High 5B1‘ 19 1 Hollinger 14 7-3 Home Oil 230 ' Homestead 0 3-4 I owev 40 ud Bav Min 30 3-13 Inst) M D 34 Int Nickel 44 1.4 rd Mtn 107 l 17 1-2 err Add 250 Kirk l-iud 23 k Lake 146 Lake Shore 29 t Lflmflque 655 Lana Cad 17 1-2 5 Oro 8i 3-4 e c 1 lLittie L L 310 Macassa 450 MsrLeod 250 Madsen 51 1-2 Malartic 105 McIntyre 55 3-4 McKenzie 14 McVittie ll McWatters ‘47 Min Corn 118 MOheta 86 Morris Klik 7 l-4 limit.” 3i i"? ay o -.. l‘ Newgold 1-2 K011111011; 77 Nor Empire 900 O'Brien 157 Okalta 118 Omega 26 Oro Plats 35 Pamour 215 I Partancn 7 1-2 i Paymaster 50 1-8 Perron Gold 209 Pick Crow 390 Pioneer" 215 Powell 122 Preston 218 Reno Gold 44 Rcyallte 34 1-2 St Anth 19 San Ant 240 Senator 5i Sherritt 193 Slscw: 73 Sfadcn 42 1'4 Slave Lake 5 l-4 S'west Pete 53 Steep Rock 210 Straw Lake 4 5-3 Sturgeon 11 1'2 Sud Basin 180 Sud Cont 4 7-8 Sullivan 91 Teck Hugh 405 Texas C011) 62 Towagonac 25. Uchi 91 Up Canada 76 Ventures 415 Wa Amulet 575 Wendigo Q Wood Cad 2-1 1-2 Wrt Harg 765 UNLISTED Dalhousie 45 Foothill 9Q 1 Mandy 1- Pend Ore 195 ‘TORONTO. Jan. 25—(CP)-—The stock market had another hesitat- ing session today with losses show- ITIB-IIBPUW preponderance over the gains. The golds were up a little and the industrials practically u_n- 'changed. Volume was small at 27a,- 000 shares. Powell Rouyn and Wright Har- greaves posted new lows for the current decline. Hargreaves slipped back 25 to 7.65 and Powell touched its low for a year or moio at 1.18 and then firmed to l_22 to finish 16 down for the day. Other soft spots in the golds were Aunor, Pickle Crow, 'I‘eck Hughes, land MacLeod Cockshutt. LeMaque and Northern Empire were down 46 and 25 cents respectively. Narrow gains were chalked up for Chester'- Ivlllc, Inspiration. Kirkland Luke. Macassa, Little Long Lac, O'Brien and San Antonio. Hudson Bay lost 5-8 and Smelters firmed slightly while the cheaper issues. including Bherritt. Pond Or- cllie and Venures weakened nar- rowly. Eldorado posted a loss of 2 cents. Steel and bulldng shares were the strongest of the industrial section and the tone was a bit heavy for the utilities and the foods. Fleet Aircraft backed up 3-8 to 9 l-4 in light turnovcd and other aircraft ‘stocks were firm, senior oils held] m. Home Oil we: fairly active Wlthl the price holding around 2.80, off ,2 cents and the close was dowiii lslightly also for Anglo-Canadian, Oalmont and Okaits. 0mm; WEI K LONDON —-(CPl --SIr Patrick lI-lastlngs. journalist- barrister who Isaw service in the South African War (1880-1002), has relinquished 'hls roinmisslfm as squadron-leader mg ,ln the R. A. P. because of ill-health. DEORESS DOWN UNDER CHRISTCHURCH N. Z.. —(CP)- Lowest temperature in a year here was 24 degree- below zero-in June -and highest 0i degrees -ln Dc». cembor-accorrilng to the New Zes- lsnd Y3K Book. January 24th. Mr. J. a. McLeod, President. outlined the current out- look for business, stressed the no- Oefielty of co-ordinated effort un- der war conditions and pointed out that wartime expansion does not mean prosperity in the usual sense He spoke in part as follows: “While we look back u n a year of improvement in buslress, the economic picture is overcast to-day by the dark shadow of war. For the second time in the present century. Canada stands with the Empiie and France in a war brought about by the B-Eflllessive acts and poll- cies of a German Government. Although we are confident as to the outcome. we must realize none the less that the war may be of long duration and that victory may cost the nation great effort and much sacrifice. Needless to say, this Bank will endeavour to the full extent of i‘ powers to play its part in facil- itating the economic adjustment and development which is to come. both in ifs direct relations with Infill-SW and trade and in co-op- crating with Government." Business had shown an improve- ment in 1939 which was accelerat- ed after the outbreak of war. Thls improvement was particularly pro- nounced in manufacturing. where employment and production reach- ed the highest point on record. Other important activities also showed improvement, notably agri- culture and mining output. Business: Oullno‘ ls Towsrd Ex. panslon “It is scarcely to be expected that the business improvement will continue throughout the winter at the rapid rate which characterized the first three months of the war. None the less. under wartime con- ditions the general direction of the volume of production and employ- ment is likely to be upward. though admittedly there may be interrup- tions in the rising trend. "Under the present conditions of war, three factors occur to me which appear to be of major im- porlance in determining the busi- ness outlook. The first is the amount of expenditure by the Do- minion Government for war pur- poses; the second is the extent of British purchasing both of war ma- terials and other goods; and the third, but not, least important. is the course of economic events in the United States. "In the emergency of war, public spending is of necessity greatly en- sfeadily, while, on the other, the necessary funds are being obtain- ed through increased taxatlon and borrowing." Rising Tuition and Public Bor- " rowing "Rates of taxation have already been raised considerably and we cannot disregard the possiblity that further increases may be nec y . The Government, ln- deed, has indicated‘ its intention of following as far as is practicable a pey-as-you-go policy. In an- nouncing t-hls policy in the Budget Speech of last Se iember, the Min- ister added: ‘In mposlng the new tax burdens which this policy will require we shall be guided by the belief that all our citizens will be ready to bear some share of the cost of the war. but we shall insist on tlhe principle of equality of sac- rifice on the basis of ability to pay. We shall not, of course, be able to meet all war costs by taxation because there is a limit tn the taxes that can be imposed without producing inefficiency, a lack of enterprise. and serious discontent.’ The minister also made it clear that during the early months of the war, the expansion in tax reven- ues could not be expected to pro- vide for any very important PB" of the increased expenditures, par- tlcularly since two of the leading new imposis are not applicable un- til the incomes of i940 have been received. "The Government has therefore been borrowing- first from the banks and recently from the public. The first loan. of $200 millions from the banks. was designed to promote an increase in productive activity and did not represent a draft upon the savings of the Canadian peo- ple. It was financed by an eXPBIP slon of credit but as the Govern- ment took pains to point out, this ype of borrowing would have to be strictly lin-ilted in order to avoid the danger of creating an inflation- ary situation.” First War Loan Outstandinl Success a "The War Loan just floated has thus been a call upon the 1181101184 savings and it is only to be ex- pected 1,1131; as the war progresses further requests will be made to the Canadian public to place ad- diticnal amounts of its savings at the disposal of the Government. not only for the requirements of our own war effort. but also for the repurchase of Canadian secur- ities held in Great Britain. That this will be done willingly and in larged and is bound to play a lead- ing part in the business situation. That such expenditures will be heavy is clearly shown by the pres- ent estimates of the Dominion Governments war outlays for the first twelve months of the conflict; they are pinned at about $375 mil- lions-an average of roughly $1 mil- lion per clay. "It would also appear that the second factor-the extent of Brit- ish purchasing in Canada-As likely to be of increasing importance. Al- though Blritlsh contracts and or- deli-s have not been placed rapidly in this country. several very large contracts including those covering base metals and bacon have been negotiated and there is every pros- pect, that the volume of British purchasing will be steadily increas- ed. It was recently announced in Ottawa that British purchases in Canada during the first year of the war would probably be in the neighbourhood of $400 millions to $500 millions. “The third factor-the business situation in the United States-is somewhat more difficult to ap- praise, Business. in that country is at present holding its ground, and in some lines is still expanding, after the remarkably sharp im- provement from August to Novem- ber. So long as conditions remain as active as at present. the outlook for Canadian exports to ihe Unit- ed States is favourable. and the prospects for business expansion arc further improved." Wartime Expansion Does Not Mean Prosperity in the Usual Sense "Although the general trend of production and employment is likely to be upward. we must remember (hat business expansion in wartime does not mean prosperity in the usual sense. In peacetime a BT01"- hig volume of production means that there are more goods and scr- viccs available for the population and this normally results in a ris- lng standard of living. In wartime. however, an increased production and effort is required for the pur- prxses of llhe conflict. This produc- llOn and effort has to be sacrificed for the needs of the ivnr and is not available for the improvement of living conditions. “For a time. Canada may be sb‘e to increase her roduction suffici- ently to provide or these addition- al requirements of war without r-urlailment of production in other lines and thus without reducing liv- Ina standards. Idle labour and cap- ital may be put to work. partly employed persons may find filli- tlme occupations. and pectfe may rrencrally work harder nnd longer. ‘Phen- is ilndoubiedlv much scone for increasing production In Ca- nnda-lnore indeed ilizm hi most clhor countries. But if the war lasts for long. and we have no mason to believe ll will be of short duration. it may result in some curtailment of non-essential production and Canadians may have in accept a reduction ln the siandard of liv- "Our Government is now actively engaged ln llovrlotilng Canada's war effort-An directing and in- creasing part of the nation's en- ergles toward war purposes. ‘This means that a growing oer-centrist of m» national income will be passing twrcush lhr Government's hands. a spirit of public service is cieH-rlv demonstrated bv the signs-l success of the first public loan. Not only did the well-to-do respond immed- iately to the national call for funds, but people 0f slender mean! and persons in all walks of life have unhesltantlv offered their contributions. This wide and prompt response is another strik- ing indication of the united Wl-ii of the Canadian Deoble to throw their l whole tweight n the srugge Blah-s 828F955 - "However distasteful may be the spectacle of increasing taxation and rising public debt. it W111 un- doubtedly be accepted with under- standing and determination. ‘There is no easy way to finance war. If the methods of’ taxation and bor- rowing were not to be heavily re- lied upon. then the alternative would be inflation with all its in- equities and unharmv imiiiicatione for the future. But while there can be no question of the publica- full co-obei-ation in siiDIDOrtIM the necessary measures of war finance. it is also essential that the Gov- ernment should eliminate all uh- peqessary expenditures and. should maintain a high degree of effi- ciency in the great national effort upon which we have ermbarked." Wartime Controls and ReKIllll-l"!!! "In other respects too. the busi- ness situation has been altered by the war. An tricate system Government controls over impor- tant phases of economic life i185 already been developed and on the whole is Oberatilli efficiently and with a minimum of interference to business. Foreign exchanae control has been established with a. view to conserving our external resour- ces through the control of inter- national movements of ca-Ditai. The Wartime Prices and Trade Board has also been sot up to prevent un- necessary advances in 011695 and m ensure adequate suubiles of im- portant commodities. These and other government regulations have been necessary and desirable under the present circumstances of war. They should be regarded, however. as pureiv wartime measures to be removed Drmnbtiv following the cessation of hostilities." Canada's International Position "It is a far stronger Canada that stands today bv the side of Britain and France than was the case in Our exportlnr: capacity is more than twice as greet. our manufacturing production has 8D- proirimatelv tripled. our minim! output is many times greater and large increases have also occurred 1n agricultural and forestrv D10- duction. "On the financial side there has been an equally striking change in our inteniational position. Prior to e last war, Canada was a ‘young’ country in every sense. She was ln the _mldst of a period of rapid exploitation and develop- ment o! hcr natural resources-s process which was financed to a very lame extent by capital from abroad. Canada was a heavy im- porter of capital and had a corres- pondingly large deficit in her cur- rent balance of international re- ceipts and payments. Todav in sharp rnntrliat. Canada is a lnuch more mature‘ country. In recent years we have had silbstahtiul sur- pluses in our current international ccounts which we have been using To reduce our net external ln- debtedness. Thus from a position in which we were dependent upon heavy imports of capital. Canada has bean]; s substantial exporter Qn the our sfde, the volume of wartime expenditures is rising 010W! "Favorable" Trade Blllllce with Britain "Let Us exflmino the nature of the recent surpluses in our cur- rent international accounts. or what is often called our ‘favorable’ balance of payments. During the five years from i934 to 1938. the verage ‘favorable’ balance was not 8-1‘ 1mm $200 millions per ahnum. The greater out of this arose out of our transactions with Great Britain and has been mainlv a re- PAGE FIV" mi itself. our note in circulation s4 $8,295,000 shows s. reduction o! $379,000 from the previous year. Our statutory limit for none; m circulation in Canada at the end of the year was $9,000,000, but under- the terms of The Bank Act ml; was reduced to $9,000,000 a; 1,11; commencement oi i940. Commenc- ing next year the reductlon in out authorized limit for notes in circu- lation in Canada will increase to $1,200,000 per annum for five yesrs until the limit is reduced to $3,- 0.000. "Total deposits at $279,766,000 are at a record-high figure, and show an increase of almost $26,500,000 for the year, About half ct this amount is represented by increased flection of the heavy surplus of commodity trade with the ‘Old Country’. Our transactions with the UIIIV-‘d States. oil the other hand. left a moderate balance on the debit side while our business with the rest of the world resulted in an appreciable credit item. “In peacetime. the geographical distribution of our balance of payments was not a matter of serious concern. We recognize that international trade was a many- sided process: we had not fallen into the error of Judging our busi- ness relations with each other country bv the net trading balance. "In wartime, however. the geo- graphical distribution of our inter- national transactions becomes a matter of first-rate importance. Al a time when the Eimlbire is mar- shallilili‘ its strength to meet a grave c aiiehge to its existence and way of life, it is apparent that Canada must tum her financial. resources toward the common cf- fort. we are no longer iustified in. using our ‘favourable’ balance with Britain reduce our debt in the United States. however desirable this may have been in peacetime. But rather it is clearly a. part of our contribution to the Allied cause to reduce the substantial drain on Britain's current finan- balances due to the Dominion and Provincial Governments, but there has been an increase of almost. $11,000,000 in our deposits from the public. not bearing interest and an increase of $3,000,000 in deposits bearing interest "On the Assets side of our stale- ment our cash holdings, that is, 001". notes oi, and deposits with me Bank of Canada and Government and other bank notes total $35,698,- 000. which is 11 i-2% of our lia. bllities to the public -a slightly lower percentage than the 12% shown a year ago. Our other cash assets, consisting of exchange 101- the Clearing House and bank bal. 811005 carried with Correspondents elsewhere than in Canada, bri the total up to $67,130,000, which is almost 22% of our public liabilities as compared with 20‘; a year ago, "Our total investments which are carried in our balance sheet at prices not exceeding market values, now amount to $138,005,000, which is an increase of $9,000,000 over m; total shown a year ago. This in» crease is represented entirely in our holdings of Dominion and Pm. vincial Govcmmont securities me.- 111F108 within two years, all the other holdzngs m the investment accounts cial resources which is involved bv payment of cur ‘favorable’ balance showing moderate decreases. Our participation in the recent, twp. year ivrlr loan, which was placed in freely available foreign ex- change. “Canada 15 in s. DOsitIon to do this bv repatriatimz Canadian debt held in Britain-by taking back our own securities. instead of for- elgn exchange. in payment for part of our exports to Britain. The first operation of this kind has already been carried out. when in October e Dominion Government re- defined a $92 million sterling issue and replaced it bv a Canadian issue sold to the chartered banks. The result was that $92 millions of Canadian funds became avail- able to Britain while from a Cana- dian standpoint. this external debt was bold off and replaced bv an internal obligation of the same amount. As this operation demon- strates. such repatriation of debt requires not only I ‘favourable’ balance 0f transactions but also the ability on the part of the do- mestic capital market to absorb by the Government with the Chartered Banks a few weeks ago, more than accounts for tile ib- creafe in our Dominion and Pro- vincial Government securities. "Cali loans in and out of cur.- ada are at the relatively low fig- ure of $6. 312.000. a reduction of $3,138,000 from the total o1 the previous year. Decreased activity in certain sections of tie security markets in this country and the desirability under 1ireser1t condi- tions of (iéiffyllig a large part; pg our foreign balances in cash en. plain this reduction. “Total quick assets a ate $209.507,000, 68.39"‘- of 01.158111811311110 liabilities: this is a miucltipn o1 about 2'; from the percentage of a year ago." Upward Tendency in L911“ "Our current loans in can“; m new issues of like amount." Importance of Maintaining Export Income "Since our ‘favorable’ trade bai- ance with Great Britain is no longer likely to be _fuliy available in the form of foreign exchange. is highly desirable that our export income from other countries be maintained and, if possible, - creased. It is true that in recent years Canada's total receipts from other countries have been some- what more than sufficient to meet- her payments them. But i1 Canada is to act as a great subulv base for the Allies. it is probable that we shall have to increase our imports. particularly of such things as machinery and equipment from the United States. "The more Canada is able to in- crease her export income from the United States and from other non- belligerent countries such as those of Latin America. the greater will be her ability to buy necessary equipment, supplies and raw ma- terials for the purpose 0i.’ the war. In a very real sense our exports of such ‘peacetime’ goods and ser- vices as gold. newsprint, cattle, and tourist services are Just us much the sincws of war as the product>ns of munitions in Cah- ada. The importance of the export bort trade is a vcrv fatniliar theme at our annual meetings. But it is a trilth that must never be forgotten and than can well be emphasized in wartime. ‘Taking a longer view, a policy of attempting to lllCfeawfi our exports o1 ‘peacetime’ goods and services has the great advantage that its benefits will outlast the war. Can- ada has opportunities today oi 0b- taiiilng trade. which in part at least, she may be able to keep per- manently. Such a policy then, is not just a ivartime CX]IC(l0lli_ It is one of building for the iutuie and the more successful it is the more it will facilitate the incvitnbe lie-adjustment at the close of hos- tllitie-s." Assistant General Manager's Address “The President has already rc- ferred at length to the ellcct of the war on the entire occiuwniic $911,898,060 are $14,226,000 higher than they were a year ago 771,1; y largely accounted for by advance! to our customers in connection w-Ltl-l the moving or the large western wheat crop of the past sea-son but, as well. in other dlrectlons we my; eXpériehced an encouraging demand for loans 101‘ commercial purposes from the Banks customers. “Current loans elsewhere than 1p Canada at $15,050,000 are slightly increased over those of a year ego, “Total assets at $348,491,000 mpw an increase of $34,000,000 (m- 1,11. i081‘ mid are at the iugliest figure in tho history of the Bank." ‘Pribillc to Staff "At this time 0n behalf of m; General lllzlnagcr as well as yo; my. 561i. I Wsh to pay tribute to the loyal and ciiicient assisrtiiace and Co-operailon that we have received from the officers and gtaff p1 me Bank during the past year, which tor many has been a difficult one. It has involved in many cases long extra hour; which have been cheer. fully given as an unavoidable ac- companiment to the special situa- tions that arise in war times, 1 would be remiss if I did not men. "on this: may I add also that the statement prcrscntcd lo you today is tangible (‘Vl(l(’llt'(‘ of the capable and competent character of the sc_rvi:cs of tho nicn and women_ 2.5 in all-trim make up the staff oi the Bniik throughout the Domziiion and r 71cm "While (Jan contribution to the lllnpirs‘. ll l" lorrcs is not largo ll] iillllilicr, i lllii'l'il Iiili l‘. very high chum t‘._ i0 . y iiiill lll('.llfii"[l lhciein are tliiluy-scvcli of our young jnpn who 110W‘ D0011 ,£.\(‘|l lrniv‘ of 011501100 from their (lllll"\ 1n tho Bank 101' lilf illll lluin oi llitll’ \\.'ll' service. ‘They carry with them the good “'l'~ll(‘S not olilv oi H101!‘ follow- wtirklnrii on flu» Bank's staff, but, ‘lwklnoiv, of :lw $lifll'(‘—i'lOl(l6l‘5 as WHERE 171157176110“? BIG WELLINGTON, N. Z., ——(CP) -. 4 structure of the Dominion; and iii the absence of the General MGIP, ager. who is enjoying a well-earned, rest, I shall restrict my r0mllrks| to a brief review of the flflilflpili’ items on the statement now puc- sented to you. i "Due t) an increased amount oi loans and a larger volume of bus- iness generally, we arc nbc to rc- port profits of 820335133. alter taxes of $659,190 and alter making appropriations to coiitlligciit. nc- counls out of which provision fnr 08d and douhliill debts has been, made. The Oiiflllilgs arr alum-i $53,000 larger than lilo-ac im- 1938 and, in addition, WC have puitl $231100 more taxes. "From the profits or the ycar ‘we have declared the llsunl four quart- erly dividends of $860000 and con- trlbuted $190,000 to the Olficoi" Pension Puhd and hnvo written ntf Bank Premises $250,000, This I-ll from ilic yours qirulils 51.17"“! which ha; been ncldvd lo lho mice of $1,021,000 ('i|l‘l‘.(‘il lurwnirl from the previous your. llius nrik- ing our undivided profits $1,174,000 Balance Sheri Show! Expansion: In Business i "P18111115 l0 U10 DllrlflCQ “K01. Tilt: New ZPlliillll! Ymr Bppk p011“. out tlml tho gnlnzlus attenuatis rminnnw tn voul may attain l. length of seven inches lh N. ' fresh Will 1; wl- rvryiilns TRADE KINGSTON. Jamaica -rCPi - Prospncm of B li colonic- are Ql‘4"f‘lil\' rni: .. d bv trading ar- rrmuomcnts oi‘ iiw Orlrlivri Econom- ic Conference and suboscquenf 00n- "ossimls. .»n\~;~ “lost Indim Year Bonk. BRINGS INSTANT IASI . .....__, .___._...._.;,.‘