, revolving some 011,000,000 less m‘ hey did when , taxes , citizsn glliction in Savings Bonk inmost. Ljthasc ;. Rquiremen ts. u, AGRICULTURE ‘that v DEg-mivinvn v, was " _ "f... ,{|r- CANADA WILLFBEALANCE HER B uiEET COUNTRY NEED BE‘ SECOND TO NO OTHER . COUNTRY IN PROGRESS AND WELL BEING BANK 0F MONTREAL-‘ANNUAL MEETING . i" CW1“ Gordon, President, deals with major problems“ that must be wit-ed in Canada before connLy canmalo progress. Supplies mwmung data showing enormom ooatsiocoontry. of national _ -- system. Must he end digpllolflflll of service - Points .. o tnuiaher-egueeeii-areeei-n greatest uni-cow“- 1mm Dodfll. Joint General runner, mun Bank during put year —~Pointa out change _ Canada- Inshis thatburden of taxation has grown tion of Bank of to ~ competition and cot that handling. of " Government matter of the n made throlllll iii-unr- “, s, point where it consumes 215111 and enter- prise mid d1. r ment in buslnem hak taken place. . fi- am Ann General met- m3“; 1th, Bankutilf Monti-en was ious handicap asiormerly. The ap, which on the basis of 1936 prees 1,010, in the Board Boom at the ‘was as at as 669611 the Bank's Headquarters. worst -of de on, in 10 , has On the motion of Mr. H. R. been reduced 12% or there- d. Sir Charles Gordon ETETET?” requested to take the aboutsrthst is to sa , the agricul- turistis still at a 1 % disadvant- chair. . age when compared with his posi- sh- Charles Gordon, ‘ President, tion in 1026 but is vervmuch bet- in addressing the shareholders, ter off than he wastwo years ago. said in Part: He inlay-ting more for his products run PRESIDINTS Annnsss Ind '90" - WW Ind Gentlemen -You have before Ibllitv meet hi? ovglhead ax- ’ nses roport one s. r. 1'0" ‘he “m” °t u” Dutch“ o‘ peAs the ygar 1082 wzs grinade ~ B k. to ther with the - filly stlltem l? and statemengelbl the profit an dioss account for the £1531; ear ending October 81st. I trust at the results of the year's ordinary con banking business in Canada during the past year. The roiits for the yea: have proved s ficient to pro- vide for payment’ of dividends on the reduced scale which has pre- veiled for some time past, but the margin has been a smell one. The earnings of your Bank are now feeling the effect of the transfer to the Bank oi Canada of iurictiims which our commercial banks for- merly exercised and they also are being influenced b the ower rate of interest obtains le upon invest- ment in high-grade securities in which yfzur BankLivias had to em- ploy an noted-sin! larger repor- tion of its assets owin to l: of b demand ior commcrcla loans. 'I'his latter consideration has resulted in our piesentl ,, to you a balance sheet of unusual strength in which there is maintained, in rhaps {renter degree than we woud have iked, the traditional] strong liquid position of your Ban‘- TRADE AND INDUSTRY The year under review was not marked by events oi high import- ance in the realm of commerce at home or abroad. Pr ss In trade recovery in Canada continued but in less definite degree than in 1064 and in a, general way it can be said that the gains oi that period were consolidated, in some 1n- stances enlarged. FOREIGN TRADE meznorable bythe moire Agrewaents, so 1086 is‘ si slized b a Uynited States. It'weli may be that an assurance oi tariff stability in the commerce of the two countries during the least advantage Certain‘ ‘ terocurse with all much to be desired always provid- ed the intercourse rests on fair and mutually advant as I dis for the most pert h . tatingiy upward, . although mo mon n cu ths. U d bted til been a noticeable imyprovemnt in usinem since the decision adverse l0 the N-RA. was rendered tl some some of the unde the economic situat Will you pardon me if I refer to the fact that we had a ection on October 14th? That elec- tion, as you know, was the occasion 'I‘radc ade agreement wi the this period will prove not to be derived. commercial in- oountries is us terms, posed _to- lieve does recently concluded t e United States. In the Unitedltatos the trend during the past year as been hetsri- e vement would seemtohsve ath- decided momentum in rgcent has sen nt, particularly- Court in May last Never- helem, an unusually otracted session of Ccngressand advent of much new leglllslation. the merits of which t in disp served to retard somewhat c ete -return whlc cial are s ute, have that of confidence would have been so benefi- w- business recovery. ECONOMIC SITUATION IN , . OANADA Now, gentlemen, let us look at rlyiug factors in on in Canada. general el- The forei n trade oi Canada. has §§ ‘nib. c \ gggloztglfrperxprusla} made a stri g recovery from the We” puty and” m“, mdhndun low point reached in March, i033. In the twelve months to October 31st nst this commerce had a 11358000000 compared ivjrfr $903,000,000 in the corres- pcllfliiig period of 1933, an increase of $355,000,000 in the short space Its results have a profound bearl on our economic problems, and may say at once, thatJhe general reaction, both in this country and abroad h most favourable. quite frankly, . as been The reasons for this favourable I i ‘ . . Hr-‘Pgrs lirasv the subject of gfy"§nuf,"mlf°¥uf°“nd°fl-°mfglj dml-‘siic "W- m!" “milled tioned that one of tmmbiead in w ‘~35’ ma" Wm“ buku“ h“ influences at that time was ythg P-“md 3°!“ Frag? m gmw" “L” fact that thislcountr had not un- Iflir O E 50 5 0 111g 11:11 distrilirbing litical nd- ‘m ‘my m“ ‘°°"'1 °’ °°' cncies, and the use w ich it will be however pub- abic to make oi future opportun- no opinion h“ been n‘ ' m” itiss will depend very largely upon mbedjy m, ‘dvmcy ofuflmmy its freedom from bureaucratic in- ierference and wholly unnecessary restrictions. I hold no brief for those who m eng o in unethi- cal commercla practoes and have no inclination to deiend them, but such measures . b and 1118B cliques actions, an undou dlythe f ogress of oin- recove - Er ed by this develop-ymenvtiultdxfvt fcrtunatel propagen a, iii-whatever form it for Canada, socialist they cannot represent more than agptgnd’ w" ‘many repudiated e a fractional minority and it would a be a grave injustice if Canadian Jslncss as a whole which has earned a. high reputation over a long period o years, should be ceri- uiized for the offences oi a few. INTEREST RATES AND TAXATION. During recent months we have hoard a good deal about ca. ltalists and capitalism, and capitalgm has been subject to a great deal oi criticism. I have alwa s been at a less to know Just wha a capitalist is, To my mind, any person who lms been wise enough to save a iiiiic mone to tide him over a icrlod of ilibess or emergency must reckoned as a. capitalist, as for theiime being he must live on his capital. I do not think we want to and I was sorr to see on bank de its cut from three ‘lifrdcerétl to wo. Thils’, however, was on er ne y pressure 0f the Government and the Cen- lral Bank for lower rates on Gov- ernment loans. As a matter of iect, the Dominion of Canada has been borrowing money in some oases at rates which stand comparison with the rates at which the British Government has been borrowing London. These low rate-s have insulted in a drastic cutting down "is 90min oi the ohsrrered banks. which ave been furor-d to reduce their rates to depositors. Based on the results oi the Bank 0i Montreal, it means that the de- positors in all Canadian banlu are Mmum than t m? s: titiree per cent In s. sense uc on ma," re as a form of concealed Emotion. r think that the sooner the public is edu- cited to these fscts, the better. fltil. “til. "“‘ “t2?” 5.32% n ma w are psidodirectiy or not, no his sham ' ‘mush such hidden taxes as a re- " may be bu ma“ 1mm ed in ev d-v-w-a-yrggi c harvest in Canada ed _ oi i084, and. taken as a whole, gfl-cs of field and farm produc We been 111%“. The l 274,000, 000 were Fl". 1v be m m, ‘ t farmer}: przdtrfits lbfthgqeot "I 0cm editi- ‘0 numbing ti‘ v5 ity of ‘poo? unmistakab e lshicn their an‘? to the two-party system which served us so we in and their distrust ofindlviduag“ of pa on times by agitating for ‘the estab- lishment of some der oi societ power make it independent of an ests seeking to hold theba tnce of pom between the Government in together, these two develo lave had an inoalcuisble ei- ect on m: restoration oi confidence cvnw..., 3a"? ‘ e- well-being of this osmiiws moon mosuuss mull wit! m‘ t lls by an immense major- , who showed in ' adher- t or rties‘ h so ‘ ht-to italise dxtroess uigicldentcalto the the visionary new or- ’ in whiz? bean are o e coun an e the pie would be regi- by s:_~.t.-. 1 rank this iepudim. n of fantastic and- Utopian experiments as the 5G0 111190 t t d6 1 t ragga-Ea sincetlhgnOttawfioxg-‘rg- and thro h the connec- ur 011k has In 0th- it’ has immensely en- ‘ the prestige oi the Domin- ion abroad. A second reason for the favor- abfe reaction to the, results oi the election is the fact that the Gov- ernment ‘which has succeeded to has ch ori ill su smal tyalsnap e official Oppodtion. Taken ems in mediate Outlook Ind in thG i ultima destiny oi this great Do- I-look with hope to the new Ooavernment w justify out confidence. Certs inent since tion as the‘ present Cover-went to inly. no Govern- Coniederation has d in such a str posi- ugh ‘such measures as vindicated to be neces- llsvi“ our. ' ‘Ill “C. SUI palkhl r a airs” “t? - trio-wag» llbtiom-wlgfi ' of, _ tional es -wltM\it ‘éllnlbatinl 8181.‘. '°~“°"" PM“ c» M- with arguments as to what cannot done to remedy the ruinous "uation that exists with regard to them and yet the Canadian Na- tional Railways is still aliowed to plunge us into debt. During the p ten years the guaranteed debt of the Canadian National Rail- ways has increased $405,000,000. gran to cover deficits have amounted to $153,000,000, while un- Bald interest upon loans from the minion Government in- creased $320,000,000, an aggregate addition of 5881000000 to rect and indirect debt of the Do- minion. Moreover, I am credibly informed that adequate provision is not being made for depreciation and that this will eventually mean further large expenditures. The Canadian Pacific Railway, which is one of the great trans- portation systems of the world. formerly paid its common and preferred shareholders each year about $40,000,000, which, by the way, was a very moderate inter- est on their investment. These pay- ments have been discontinued, due portly to business conditions but also to the fact that the system has been competing with a railway which is receiving money from the Federal treasury in generous sums that. by an easy process oi book- keeping, are added to the Federal debt. The Canadian Pacific does earn its bond interest and pay its taxes, and therefore is ,an asset and not a liability to the country. If the Canadian Pacific were that it formerly paid, it would be contributing, in addition to the taxes it now pays, an annual in- come tax to the Federal Govern- ment oi about 86.000000, and there would be the further income tax to be received from nationals owning the shares, What can be done, and what must be clone, is to put an end to the- uttery unwarranted competi- tion and duplication of services by our two great railway systems. In this connection I repeat what I said last year, namely, that m1]. ways today face ‘extraordinary competition from other means oi transportation. and that railways competing against ench other In the ruinous way that ours do can never succeed in adopting a. com- mon policy to meet these other forms of competition. More than ever it is necessary to coordinate all forms of transportation, not by the throttling oi competitive systems, but by the elimination oi useless competition by means of intelligent direction. A first step is the oc-ordination of our railways. A second step is the regulation of all forms of transportation under a. Federal Board of Transportation Commissioners vest/rd with powers simhar to those oi ‘the Board of Railway Commissioners. but on a golfer and more comprehensive H . In respect to unemployment, still a most serious factor in our situ- flflflh. the cure of course waits upon a. more complete revival in our trade. Meanwhile; I am glad to note that the Government is pledged to vigorous action in re- spect to the problem of relief with a_view ending the chaotic con- ditions which are bringing ruin to our provinces and municipalities. Relief, of course, there must be for every person who through no fault of his own is unable to earn s livelihood, but relicf must be re- cognized as u national problem to be dealt with under centralized control, Our huge carry-ave; oi wheat constitutes another o t lems on which we have been sur- felted with arguments as to what cannr‘. be clone. There can be no sound basis for p~osperity in West- ern Canada until thst problem is solved, nor will recovery in the rest of the Dominion get Into its proper stride until then. Manv in- dustries depend on the flow of new wealth into this country in ex- change ior wheat, and part nf the set-back of our railways is due to the effect of the stoppage oi the wheat traffic in which so much of their expensive equipment was formerly employed. What we have to do is to sell our wheat, not hold it. and sell it within the crop vear. There is no other way out. Every day that passes during which we have done no business in the world's whvt market is a day lost for us and a day gained for a. com- petitor who hss sold his whcrrt by reason of the fact that our or!" has been out of line with world markets. With so miiny countries now committed to the yiolicy of supplying their nwn domestic needs and oi being independent as for as possible in the mntter of food, we are left with orartlcaTlv only one dmportnnt market. namely, that of Great Britain. This i< the market to cultivate and not to throttle. There has been a slight change for the bstt=r in the pulp norl pacer situation, inns-much as the newsprint tonnage which the mil's have been uhle in secure has in- creased considerably. Taken as a whole, however. the situation is very disappointing. Here we have one of our great natural resources in the shape of our forests being depleted at s. rapjd rate for the benefit of newspapers in North America and other parts of th- worid who desire to secure their newsprint at less than cost. The capital invested in the pacer busi- ness in Canada is estimated at about $555,000,000, and we may as- sume that this takes only bonds and preferred stock into account, excluding the common sto~k, as no doubt much of it was water in the first nlacr. 1t would be fair to suppose. therefore. that under nor- mal conditions this huge invest- ment should bvinr in. in the wav oi interest on ‘bonds and-d vidends on preferred stock. some I25 000,000 per annum. Instead, however. of producing p. sum approximatin". this, the industry shows no_ profit at all. the result hein that few, if any, of these cnmpsn es are mak- ing g contribution to the Federal income tax, as companies: and further, ‘e who should be re- ceiving ond interest and divid- ends ore also making no contribu- tion because of the non-receipt of this income. It would be a fair es- timate to sav tha‘ the Fflicrll Government is lasing six to seven million dollars a year on. this one i dustry. You may ask why "ill should go on. 1t will, so on lust so ion as new s can continue to guy their ms risl. at less than “at, ms our forests ‘will go on disappear-ins. We are someiim-"r told that this is a provincial mat- W-Ullvleratomewbesied- / earning and paying the dlvidendsiocui but he prob- eral matter of the greatest im- portance. NATIONAL FINANCES All the matters mentioned lead in- evitably to the consideration OI 0i" ustionsl finances, for if, in deulilll, with these problems, the line oi lent resistance la followed by our IBVBII!‘ uientul authorities, than we Ill)’ 0!’ poet further increases in our debt und taxation, und a outinuouoe of deficits in our- irutiousl budget, with ultimate destruction of the national credit. Our debt has Brown at l Dro- dlgious rate and there seems to’ be no end to new borrowings. 1‘he bonded indebtedness, direct or in- direct, of our Dominion, Provincial anti Municipal Governments now amounts to approximately $6,500,000,- 000. '1‘ a figiho nun i ecu 1| . . than 3,500,000,000 during the put five years, that is,‘ at tbs rufo u. 8800.000 00 per aunum. A large art of the total is payable as to princ si and interest outside oi Cauadd. ‘wh h presents an added complication. lu- dced, tho situation ll that we as I nation have to send abroad ior inter- est commitments alone 3000.000 over-y working day of the year. In this. re- spect Canada's position as a debtor is much more complex than either that of the United States or Great Britain, whoso- gu- indebtedness is largely to their own nationals. Closely related to the national fin- ances is the question of provincial sud municipal financing. Just II municipal finsncln has complicated tho problems ports ning to rcvincisl fveasuries, ac has provincia ing complicated the problems par- ing to the national treasury since the Dominion uv nt has again and again bud to come to the assist- ance of certain provinces. The situ- utlun has become so serious that it .s now imperative that some form of control and supervision shall be set up over the financial commitments hoth cf provinces_ond of municipal- flies, since therc arc no longer of of national concern. Not only must the machinery be provided for such control and supervision. but it is most desirable at the sumo time ic have a clear definition of the le- spectiva spheres of municipal. W0- vlnclal and federal taxation. At the present time the utmost confusion prevails in this respect and addition- ui complications are ever arising, with duplication and multiplication of iuxatlou. In concluding 1 would like to em- phasize tbc fact that one of the rnulor planks in tho platform of the party which has succeeded to power was tho definite and emphatic promise to balance the budget. it will be se- uicrubered that the balancing of tho nntlonal budget was laid down an the prerequisite to recovery h! "l" Nntlonul Government in Great Brit- ain, find 1t a umttcv uf common knorvioilgc that not, only was this object fulfilled hut that its fulfilment bus cauuoil Grout Britain to lend the ivorlil in the return to prosperity. We are entitled to look for a smilsr ful- filment of a simliur objective by tho new (toverpmo st Ottawa, and 1 have no hesitation whatever in say- ing that ith an early achievement of that ob cot, Canada. assuming iii: no exterior problems arise to compli- cate hen outlook, need ho second to no other- country in progress and material well-being. (AIIDIIIIIIL) THE GENERAL MANAGERS‘ ADDRESS Mr, Jackson Dodfll, as Joint Gen- eral Manager, read the address of the Joint General Managers, which was in part as follows: Mr. Chairman and Gentlemen: Ou behalf of Mn Bog and myself 1 hnvc the honour to present to you tho 118th annual biilunco sbect of the Brink. Important changes in the figures are as follows: Our total‘ assets amount to 8102.- 800,000, compared with $750,100,000 a your ago. Quick assets, including ossb, total $.‘r.'ili,~l00.000, representing 7451i pot vent. oi all liabilities to the public. 'l‘hls [icrcentugc is higher than ne- cossary for nor-mill requirements, and is n result of the reduced demand for loans for commercial purposes. Cash holdings and balance in Bank of Cunndu m. $82,000,001! rcpros-nt 11.60 per cont. 01.1111 liabilities tu _(|l\.‘ public. limit-r fbo tormsi of the ll-inl- hi’ Cunndn Act we were compelled to liunrl over uur- r-nil.» ;,-. |il Cnnerin on the opening of that in- stitution. iforrnnl protest was lodged ngulnst accepting tho statutory vnluo 820.0718 per iino ounce, on the grounds that the gold was held as protection ngulnst. liabilities and contingencies clscwiiero than in Canada, \\'lii‘l~.i it lind a market vuluc of about $215 per ‘flue ounce. Our protest was in vain and on 11th Mnrch last wo turned in nil our gold hcld in (Jnunrlu. By order in council duicd 20th April it was directed that 40 per cont. of the uuiuunt should bo iloonlcd as having been hold by us against liabilities elsewhere than in ilunnrla and the Brink of Canada was authorized by the Exchange Fund Act 1930 to dc- tcrmluo mid pay over tlic appreciation on that sum of gold 0t tho current innrket price. This rvus flul receiver] by us in July aurl act ssi e for the apecific purpose for which nil our gold hud been held, iramsly, ns protection ngainut foreign liabilities and con- tingencies elsewhere than in Canada, Tho gold holdings of your Bank played an important, and at times a vital, part over ibo course of a cen- lury, in stabilizing tho value of Can- ada's dollar and in supporting the crcilit abroad of the country at large. During tho past year the average cull loan rnio in London was % 0T 1 per cont. anti in New York 3/0 oi one per cent-not sufficient to cover 0D- uraling omits. it is essential to our oprrotious in facilitating our custom- ors’ fnrolgn business, to meet foreign deposit liabilities and for reserve pur- pnrri-s to maintain funds almond, r-liicfly in London and New York. Such money, when rates and confli- tlonil are luvourublc, can earn “its board" or bctteir but in any 1'48" ii must be kept abroad in Immediately available form for tho purposes men- tinned, Investments, not cxceeiiln market vnluc. amount to $861,000, , an in- r-rcnso of $411,800,000 ovar- inst your. Included in this total uvo Dominion unil Provincial Government securities ssi .000, of which srsasooxioo matures within two years, and 818'),- 000,000 matures after October Ziist, 10:17. Of thesn Government securiflel with ovcr two yours’ maturity date, $102,300,000 (par vnlw") falls due be- foro October 31st, 1040. Current Loans and Discounts in Ciiliadh and Loans to Provincial Governments, liluniclpsiltxs rind School Districts amount to f 23.000,- , a decrease of 80,800,000. be de- mand for commercial loans continues to lag behind tho improvement in business, as is naunl after a prolonged ilepresaiuir; customers naturally em- oy their own accumulated funds before borrowing. Some Canadian hur- rorvers. through exchange operations or otherwise. are using foreign iuadl olvfninflblo temporarily st var low lotus; ii. in to bc hoped is pruciicn may turn out tronsly than it did for manron a former occasion, when the lowcr- rates elsewhere blinded them to the risk involved in borrowing outside the country. There is good and had money, Just u them are good and ind losnr the cheapest mom! often costs tho orrcwar dearly in .l e end. Just an loan be ' the highest rslan f udht y relult in ion to the lender. ha interest en money used for productive par ones is comparat- ively the smallest fem represented la the colt of product‘ . Ifotlsr items of cost receivers: much considera- tlen and if borrowers generally, r- tlculsrly ubllc bodies, nan og like as core attention. o the nae-to which borrowed mene is put n n t do to the question o a email sa in mam-st. the (iniinclll 1uohieme o this country would be liinpl . - The Denlaioa Gevernmatudlooa- THE ' LTIAKLUI"! EIUWN ‘ GUARDIAN STOCKTOTA Tfo 1Z7. Stock Exchange (Supplied by Pltfleld and CIIIIDIIY ¢.- 1v. Y. Stock Exchange‘ (Supplied by marina and coma-av “ o atoek Prov PRODUCE I (Canadian Pres) MVNTREAL, Dec. fi-Sutter finned narrowly and other lines were steady on tht Montreal open produce market today. No 1 grade TORONTO, Dec. 6—Gold' stocks M bu I ill f eul stools anadnCtirr-vb “llorkrtbr and Curb market) g gaugltgtaoa 0w- I-l" Stoch- small lots to retailer-s at 2021; t: , 1441A 144% A y- p _ _ _ _ , _ _ __ 27 cents for solids and 27 1- 2 10% 10 A: r3: P: bid 101' W100!- flt’. Am Graded egg shipments in car- ‘zz i: lots or less were generally 41 cents , l _ 12% A .1- d , ' adooen ior A 34 for A- L23: 1E2: u‘. 11% Aililacontl‘; .. medium, 32 for A , . 35 1-3 t0 uom Bridge . 84 ~ Auburn . as a0 3g 1.3 {m- 3 5nd 34 1°,- c us. -~ i.‘ 3‘°.’i.‘5°‘6.;.' . f."- 2: N» 1 0-w- w-i- w»- mcou Fmmfl‘ 1g 39nd,, A, __ , __ ‘go brought 11 cents s pound and col- Mont Pr 3i nets Steel - . 48 ored 11 1-3 cents. 1m Brew -. 1W- um -~ 1°" Prince Edward Island potatoes riot Steeé Csr 111% Loggia‘: - £342 m gmpound b“, were ‘L30 u, W 0f‘ U " s,‘,‘,,$,',,,,,,,,° m, m... A y, m. siss r r mountains and 012s to So u Pr .. 13V: up“ Eicc - 31V- 3130 for cobblers. In BO-pcund Steel of Can ... 0;! 54 lo-anxgiofpflr. 85A? bags potato” we“ ‘L30 to ‘L35 sf‘ 4 ... t ' I", T m", T " 13y- for P. E. I. mountains, 81.18 to Kcnuocoit .. 201,5 $1.20 for P. E. I. cobblcrs and New Mont Wurd . .. 0 it: Brunswick mounmtns’ ‘L05 to B, o, C" ljlfimigp}; ~ m‘?! $1.10 roi- Quebec mountains and Bk of N. S, . 206 Pnrumuunt i) 9° t0 '1 101‘ Ql-Wbec wbblel? Bk of Montreal . 100 ndlo 11 Royal Bk .. 1S0 So Pur-lflc .. 24% CsfrBk Com 142% Std on N J 01% ll S Steel 47 , MINING Ilse llinardfi for Bruises West U 71 ‘it i Westinghouse 03 172% $921k" 39390-000 “m” l dflma" "t great r1 1;: s in banking methods (cuudhn he") , , , and iucial Govern- ment deposits at $15,100,000 an in- crease c $5,200,000. Deposits by the public amount to $041,800,000, an increase of $05,000,000. Profits, after deducting Dominion and Provincial Government taxes. amount to $3,005,212 as co ared with 83,204,800 in 1034-11 deerou e oi $190,000, over bulf oi which is due to the increase in‘ Dominion and Pro- vincial taxes. Dominion and Provincial Govern- ment faxes Raid during the poet year iotsi 81,002, n increase of 8101,- 000, This does not include Municipal taxes of various kinds paid by our branches, which run into s substan- tial sum, Taxation is primarily in- tended to cover stat-a and municipal essential expenditures. That we hdvo drifted a long way from the origins! intention is becoming more and more apparent. The burden of taxation im- posed by our numerous governing bodies has grown to the point whore it consumes cuplkal resources, sup: energy and enterprise. dlscnuriifies industry, production and construc- tion, and thereby Increases unemploy- mont.‘ Direct and indirect taxpayers are beginning tn take a livelier inter- est in what is being dons with their hard-earned money, unri taxing bodies are-beginning_to realize that, unless taxes arc reduced by effecting econ- omies in public expenditures, the source of taxation will ultimately be dried up. One evidence of this trend ia to be seen in the demolition of buildings which have been converted from assets into liabilities by re- duced rentals and heavy tuxes, There are many other evidenci-s which are not so apparent. PATERNAL LEGISLATION Well-lotentioned ‘ ‘ in some lprovlnces, designed to help debtors, I not working out in every cuss as expected by those responsible for it. Uni the contrary, it has bud un atl- verso effect 1131011 the morale of many and has close tho source of mortgage loans for worthy people who would otherwise have been able to borrow upon their fixed assets, the value of which has in consequence fallen. SAVINGS DEPOSITS For about thirty years the rate of interest paid by tbs Bsuks on, Sav- ings Deposits stood at 8 per cent. in Mayjliliili, it was reduced to 25/; p01‘ cent" and in November, 1034, it was further reduced to 2 per- cent. In June last the rafc. aid on commercial funds deposits in the Savings ile- partment was reduced to 1 per cent. The reductions were reluctantly put into effect under pressure of tho de- creasing edining value of ‘Plicrc were many who lowering of the interest structure ui the country would stimulate bovro\v- 111g oi money for productive and eon- struotivo purposes. This hope was ill- ionridoil. foi- as rates wore forced down lenders naturally shortened the term of their commitments. They would not trike the risk of long ierui investments at low Euros in tlie incc of experiments oi onc kind snrl sn- otber, whether monetary, economic or so ialistic. Until, confidence‘ is lu- lp red by the adoption and carrying out of sound policies, the balancing of budgets by effecting economics and by the reduction of taxes, long term investments will be postponed and business recovery retarded. GOVERNMENT BUSINESS The Bunk of Montreal was fifty yours old when tho Dominion oi Canada was born, and from that day it acted as tho Government's chief bunkers until early this past your when the main account at Ottawa wars taken oven by the Bunk of Cau- s s We place a high value ca our long‘ established connection with the Do- minion cf Canada and are pin-used to be sblc to say that succeeding gov- ernments have freely acknowledged in turn the value of the services per- fcrmed-hy tho Bank of Montreal. TOURIST TRADE Canada has unexcelleri railway and hotel facilities to attract tourists the whole your vouml, and, your by year- ss our automobile roorla are improved and extended, more and more Am- erican curs will be seen in Csnuilu. The railway and steamship lines, foul-let agencies um! newspapers iinvo done‘: great deal towards cultivating this important trnde, in the general interest. Country hotels, boarding houses and tourist camps are coming to realise tho necessity‘ for improve- ment in their accommodptiuu and sorviceJf tourists arc given a warm welcome, are comfortably accommo- dated and treated courtcously and fairly, their number will incrcnss nn- nualy SECURITIES Financing In Cunmia during the gear was dominated by the issuo of sdercl Government obligations aris- ing from budget requirements and ng of matured or callable gulrnntecd bonds at lower interest rates. ‘Certain new issues were also created in connection with the ss- sumption by the Bank of Canada of rartstandmg Dominion note circula- o rovincial issues were subsinniini. though lcsl important in amount. thin. derel; while municipal issues were iatively small. Much refinanc- ing in tbll-flildlidl been postponed swalti the necessary restoration of budgetary equilibrium. A certain amount of corporation imam-inf has effected. Pris-ed srgely .of refunding. of call- able bonds at lower interest rates. In spite of the further- accumulation of; idle "money sacking investment, high grade bonds failed to reach this yesrtbs» peak attained toward the and 04.1084. This hesitant-y in the f-ket caused bv successive t of srbitrar action affecting t saints of cred tors, which eman- sted~ various ourees. Any de- been Dori I he no in. i?! ialnhfulglcogl not-be expects 00600111011 o table. W0 have c ened hm- wab-ageneiu. The Bunk of luntrrai-(Iranool, Paris, was closed ri Juno last, ~- t srsrr . During-tee out twenty-five - years m: um tlie_ CDIII- ' as re om be sander-d oi goml . 1th would not be for-gotten in s dsv. ' and rcui no have taken wince, Effi- ciency nml speed in bundling the lu- creasiug volume of work have been assisted by the use of mechanical equipment. Some bunkers who re- ceived their elementary training be- fore the introduction of calculating nnd posting machines are prone to lnmcnt. the valuable routine training now denied to young men. As a mat- tor of fact. more attention than ever is being given to the selection of re- cruits and to their training. Special inducements are offered to clerks to trike courses in banking approved by The Canadian Bankcra’ Association and the success of those who pass the examinations is a mcifcr- of gratification. These courses are not compulsory, which leaves it to every young banker to classify himself as ambitious or otherwise, During the past two years I have visited our branches outside of Can- nda and have met, with fow excep- tions. all our Managers in Cilflllil-‘t. iIISO the members of the Staff ar the centres. I am proud to suy that our Managers and Stuff. in point of effi- ciency, loyalty and esprit do corps, nro n credit to the Bunk and to themselves. BETTER TIMES Copies of the printed report of the proceedings oi this meeting will bs mulled to shareholders and may be obtained by others upon request. Tho report will contci as ulusl, a de- tailed review of conditions in agri- culture, business and industry in the various provinces. These reviews will be found inform- nilve, interesting and heartening, in- dicating as they do tht definite im- provement ln business has taken place during the past year, in spite of sil handicaps, domestic and for- ci n. There is unmistakable evidence o increased confidence, and enter- lmlsinit People are beginning once more to look ahead. Gradual recovery in world com- merce vvlll continue as men of good will, with courage, abilityyinitlative, enterprise and fngenult devise means whereby trading may be resumed on more normal lines. The Agreements were a notable torvnrrl the rovivhl of trade the Empire, nnd Canada's trade agreement with the United States is n further couruiieous step in the direction of removing barriers to foreign trade. Cunadn's share in adding obstacles to world trodo has been comparative- ly slender. Thn forbcarnncc of this country in the face of critical domes- tic conditions hns not gone unnoticed nbionrl: in the excellent bulletin oi February Just issued by the Svenska iiandslsbanken, Stockholm, Sweden, it is pointed out that throughout the crisis practically no restrictions were imposed upon tho movement of ox- chnnge across the Canadian frontier, rind the quota system with hampering licences ivns not applied-to import requirements. It is true, however, that lca-lrtlilrin measures of control were ap- l‘ liavlnil said this much for our own country in roluflou tn the internation- nl situation, it ls wcll to rel-emphasize that our immediate nml vltnl concern is to but our infernal affairs in order. to ensure Canada being properly equipped to take a prominent phat in world trade on whatever basis and sculo it may ho resumed in future. This vvlll- not be brought about by trying out quack remedies, which would only make a serious condition hopeless, Th» country must fags m1 WPl-IHIOWH difficulties finulLv, nnrl delay will not only he futile but will nncournlfo their further Rrowth. Some complain flint throughout Cnnudn is’ ton high for n "Phi" '—‘°"0"0‘. lwor inaccumulatoil means even though rich in undevel- oped natural wealth, and that it Id. n-rscly affects lior competitive posi- tion in tho vvorld market The stand. uni is not too high in the proper some nffhc vvnrll: it is the cost, that mp high, and this cost can be brought "OWN by effecting economics in our excessive general overhead. (Ap- plsuse.) The scrutlnecrs appointed for the purpose reported that Messrs, Charles A. Hoilgson, I.A., and Alnstair A. Gowan, C.A., were duly appointed Auditors, and tho following gentle- mcu elected Directors: Tho Honour- able Thomas Ahcarn, I’.C., D. Forbes Angus, Sir Edward Benny, G.B.Iu‘., W, A. Blsrk, W. A. Bog, the Honour- able Patrick Burns. to Honourable Henry Cockslinir Norman J. Dawes, A, . Dawson, 11f. B. Drummond, W. Sanford Evans, Sir Charles Gordon. (i.B.E., J. McConnell, Ross . Biotin-fer. F. n. Meredith, n.0, Major-General the Hon. S, C. Maw- burn, CMG. LL-Col, Herbert Mol- non, cs1. Inc, A. n. Pin-m, c. r. Sisc, w. . Tllley, x,c., Slr Freda. lck Williams-Taylor, At a subsequent urn" .B.E., H. meeting Directors, Sir Charles Gordon, was elected President, and Mr. ilrummonri and MIIQp-flgngfl] als had the call and vanced on heavy volume. noon s. little ground was lost and buyers turned to the gold group, particularly .the medium price is- sues. A few of the base metals con- tinued upward however and clos- ed at new highs. Faiconbridge fin- ished 35 cents up at 7.35. Norands. was in better favor and It netted a half point to 46 1-2. cent at 1 J-B per The franc firmed .02 of a. cent at 0.68 cents. change irregular. high 4.93; low 4.92 3-8: close 4.02 1-2;'60 day bills 4.81 3-4; France 6.60 1-2; Italy 8.09; Belgium 16.80; Germany 40.25; Canada. 98 7-8. thc standard of living t’ today joined the base metals in the advance on the mining sec- tion of the and volume increased Toronto Exchange, in these groups as prices moved up. Aggre- gate turnover was the heaviest in four months. The exchange index for miscellaneous mines was raised three points to a. new high for the year at 122.55. In the opening stage base met- prlces ad- Around Currencies (Canadian Press) NEW YORK, Dec. ti-Thc vote of confidence in the Laval Gov- ernment at Paris sent the French franc climbing in its widest ad- vance in months in the foreign ex- change markets today. The franc touched a. high oi 6.61 l-4 cents, highat since Aug- 2. before reced- ing to finish the day st 6.80 1-2 cents for a net gain cent. of .02 of a Sterling and the Canadian dol- lar did not advance with the franc. although tht Dominion dollar can- celled im early loss to close un- changed it a discount oi l 1-8 per cent. The pound was off 7-8 of a cent at $4.92 1-2. MONITEAL, Dec. 6—The pound sterling slumped sharply on Mont- rsal foreign exchange today while the French franc gained narrow- ly and the United States dollar registered a small gain. The pound was off 3-4 of a cent premium. EXCIZANGE (Canadian Pleas) NEW YORK, Dec. ii-Fbreign ex- Cireat Britain (Canadian Press) Closing exchange rates: At Montreal: Pound 4.98 1-32; U. S. dollar 1.01 1-8; franc 6.68. At New York-Pound 4.92 1-2: Canadian dollar 98 7-8; franc 6.60 1- by‘ satisfaction. A complete 1.. Halifax Honourable S. C Mew-burn, wgra elected Vice-Presidents. ‘ oascsrasocx We also Recommend at present market PHONE 1122 raszr. fun-v. Si‘ f i a i» YESTERDAY IIIIUTATID ‘ inch iliiRiiEl llorrectei-lE-lbr Evéry Wednesday diixd Saturday Issue PRODIJCI Potatoes bus lib-TAIL IJIIICET Celery bunch . . . . . . . . . . . . .. 'l‘omatocs lb Cauliflower eno Onions lb . Beets pk . . .. Celery hearts .. "ran berriu- qt Pumpkins lb Mint Carrots lb . Potatoes pk squash lb . Apples dos .. Spinach lh .. Parsley bum-h Broccoli Brussels sprunfs imx Crab Anplfls 11k . Cabbage head Veal b .. . . , 12-140 Roast Beef . . . 1248c Pigs 6 weeks old per 1'01!‘ 54-09451)“ Steak lb Wreum 4f Eggs do! . 4: i.|_0 IISII Corned Mackerel ouch . ... 15o Hnddnrk lh . V. ... ... .. . . illc Cod lb . . . . .. b0 MT’L. CURB (Supplied hy Pltlleld and Cums"!!! Members of Montreal ltm-k Blflhlllll and Curb Market) 0pm Stocks Meichers .. .' .. . New York (Cunudlun Press) Stocks Am Cyan It . Am Gus El .. Am Sup Pow Creole Duf- El Bond Shin/i Uu L and 1' Pfd Miscellaneous (Canadian Press) MONTREAL, Dec, 6—Prices were‘ irregular rt the close of trading on the p luoe section of Canad- ian Conzznzuilty Exchange today. Butter Spot-Sales—100 grass 25 7-8; 100 Que grass 26; 400 West regraded (flask) 25 3-4. - Cheese Spot-Ont white closed 10 5-8 to 11; ool ll toll 1-2. Eggs Spot-Ont A large 40 to 41 1-2; A medium 34 to 35; A pullcis 81 1-2 to 33; B large 26 1-2 to 2'7; B medium 25 to 25 1-2; C 23 .7-_8 Attention to investment Problems Letters from clients asking for information on investment subjects or desiring to buy or sell securities receive prompt and careful attention. Transactions by mall with many of our out-of- town clients have been carried on for years with available at any of our Branches. EASTERN SECURITIES GDMPAIIY LTD... Saint John, NJI. n. Snmmorllde Charlottetown CLARK GOLD MINES LIMITED An flutstantling ‘Junior Gold Development so. iuncnuvss Forfurther information phone or write to E. M. McLEAN COMPANY LTD, QUEEN amour ' CHARLOTTETOWN, r. n. I. KIRKLAND 0010 MINES Lrnfl to 24 -2. trnent service is Moncton ... Que 4