Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 19, 1940, Winnipeg, Manitoba Page six Winnipeg free press Friday january 19, 1940 Wood Impi London Jan. 19. Up Kingsley Wood Secretary for air in a speech at the overseas club yesterday predicted the Empire air training scheme centred in Canada will undoubtedly prove to be an outstanding feature of the squadrons of the Royal Canadian air Force soon will be playing a part in Active operations in Europe. Some Little time ago the Canadian government suggested that a can Adian Squadron should be termed from Canadian personnel already serving in the . As a Conse Quence a new fighter Squadron has been formed. All pilots in this Squadron re canadians the squad Ron Leader and senior flight com Mander officers of the Ria. F. He predicted Here would be a Fri demonstration of Empire Power and Unity when men of Vari Ous forces fit themselves to play heir part in he common cause. He believed the rapid development in Lange and Speed of modern aircraft May revolutionize the problem of Empire defence. Ability to rein Force any part n the Empire from the air in a Icv hours is rapidly becoming within the possibility of accomplishment 1 there Ever were serious threats to the unanimous Hopes of North and South America for an Allied Vic tory in the War col. Fraser Hunter Liberal member for to Ronto St. Patrick said yesterday in the Ontario legislature. Nazis look to Italy Berlin Jan. In our German newspapers last night warned the allies that Italy May enter the War on Germany s Side. The nazi press Points to the Rome speech of Ettore Muti Secretary of the fascist party in which he said Italy May be compelled to take up arms at any moment. Song Kong Jan. 19. Nese authorities today reported fresh successes on the Kiangtung front in South China where their accounts pictured chinese forces driving spearheads from different directions toward Canton. They said their troops had Recap tured a station on the Canton Haw Kow railway 33 Miles North of Canton and caused 500 japanese casualties while another Force was heading to Ward Kong Sun Only 10 Miles North of the South China Metropolis at a luncheon meeting of the Canadian Pacific association la Boyal Alexandra hotel Hurij s. G. Porter manager of the Tejw natural resources Calgary gave an address on a work of his office. G. M. Presided. Arges Vatican City Jan. 19. Up havas French charges Belgium and the Netherlands were stampeded by the allies into Tak ing precautionary measures against possible German invasion were disputed by Romano official Vatican Organ. The patriotism of the belgian and Netherland populations rejects this insinuation with the paper said. The whole world knows there is no government which dares to assume the responsibility of alarm ing its country and taking most serious military measures without a grave and imperious senator Gillis Hegina. Jan. 19. A. B. Gillis 75. Died at his Home at Whit Wood. Sask., Early yesterday morning after an illness of More than a year. He was one of the old timers of the West coming from Nova Scotia with his parents in 1882. Funeral services will be held saturday afternoon at 3 o clock. Burial at Whitewood cemetery. Thirteenth vacancy Ottawa. Jan. 19. Of senator Archibald b. Gillis at Whitewood sask., yesterday brought to 13 the number of vacancies in the upper chamber. His death reduced the conserva Tive representation to 51 in the 9g seat chamber. Liberals have 32 members. Edmonton Jan. 19 Strong United farm Union in Alberta and eventually comprising All Farmers in Canada continued to dominate at the 32nd annual United Farmers of Alberta convention Here yesterday. Delegates decided defer a vote on a Resolution urging Union of All farm organizations in the Dominion until today. George g. Coote. Former . Member of parliament for Macleod constituency and now Secretary of the Canadian chamber of agriculture said that about one third of the people of Canada Are on , but they Only obtain one twelfth of the National income. Farmers must organize if they want this situation to he said. H. R. Bouti Eicr of hairy Hill vice president of the Alberta Section of the United Farmers of Canada expressed approval of the proposed merger and stated the farm ers of Western Canada must stand United in one Strong organization if they arc to get a fair Deal. We want to unite first in Alberta and then get the Saskatchewan and Manitoba organizations with he said. I fireman killed at Minneapolis Minneapolis Jan. 19. Api a City fireman was killed and More than 30 persons fled to safety in 10-below-Zero weather late yester Day when fire swept through a 44-apartrnent building. Searchers going through the ruins last night found the body of Jesse Steene the fireman in a charred t3athroom in a first floor apart ment. Two other persons were slightly Hurt. The fire was discovered in the basement by a caretaker. Employees warned the occupants of the apartments and they ran out through smoke filled Halls. Iraq minister Baghdad Jan. 19. Bup finance minister Ustan Haidar of Iraq was shot through the Side yesterday by a former police inspector who recently was dismissed from government service. Haidar was taken to a Hospital for an opera Tion. The shooting occurred at Haidar s office. The Bullet entered the Fin Ance minister s left Side and passed through his no state ment regarding his condition was issued immediately. His assailant gained admission to Haidar s office by pleading that he wished to submit a petition. He was arrested after the shooting. Confident of Aid Toronto Jan. 18. Up men irom the United states would join the allies in Large numbers if Canada s position assured As a source of raw materials and War supplies for the Empire a great Opportunity says John r. Lamb president of of Toronto at 84th annual meeting substantial Progress made by Bank reports f. H. Marsh general manager the 84-th annual general meeting of the shareholders was held at the head office in Toronto on wednesday january 17th, when the president John r. Lamb and the general manager f. H. Marsh addressed the share holders. The president s address we present to you today our 84th annual statement. It will be noted that in keeping with other Banks whose annual figures have appeared a rather substantial expansion is evident in practically All important departments. Profits from regular operations Are slightly up but not materially changed. Chiefly due however to a heavy Grain crop in the West our recoveries have been relatively Large enabling us to carry for Ward to our profit and loss account and raising that fund to these recoveries while we Hope they Are not entirely exhausted Are largely non recurring and i am afraid that we cannot look Forward to similar results in the future. The past year must go into his tory As one of great significance no matter what May be the ultimate result of its rather startling developments. Flow of War supplies has started Canada As part of the common wealth of British nations has a vital role in the struggle against Germany. Apart from the War itself the leading development of the year from our viewpoint was the emphasis thrown upon Canada s position As a source for raw materials and War supplies for great Britain and As an inter mediary for business Between the allies and the United states. We have not been made the Centre of the Empire nor has the volume of War business come up to the expectations of the optimists but the flow of supplies has at least been started. The Opportunity exists for further development of this kind which should be of real help to the Empire and to the allies and at the same time enhance the importance of Canada. The inauguration of a scheme for the training in Canada of airmen from other parts of the Empire from peace to War j Economy with Little disturbance i will not attempt to detail the economic trends of the past year Lecause the declaration of War in Early september opened an entirely Lew chapter in our affairs. The first eight months had been rather discouraging the threat of War being a constant deterrent to Enterprise. By the same Token however the actual outbreak of War found people Well prepared or the Shock. Thug we were con erred from a peace to a War Economy with Little disturbance to Industry. Under the War conditions of the last four months Here was a stimulus to production and buying with a gain of about ii teen per cent in commodity rices and of course the Prospect of an Active War program improved business sentiment in nearly every Field production higher for the year 1939 As a whole volume of production was substantially higher than in 1938. The yield of farm crops was Good arid with the help of a moderate Rice recovery the total value of held crops was estimated at ?635 millions or the highest figure since 1930. The Stock of wheat in the country is exceptionally High at the present time but there is some advantage in this under War conditions. Peed is plentiful As the basis of our live Stock and Dairy industries which continue to be prices is one example. While our Bonds with the Mother country Are thus being tightened we Are at the same time fortunate in being Able to maintain and Cement those close relations with the United states which have been such an important fac Tor in past Canadian development even if we become More industrialized because of the War this is Likely to represent an expansion of North american Enterprise As a whole rather than an increase in Competition Between the two countries. In this emergency the allies Are fortunate in being Ali to draw upon the resources of the United states which nation is Thi leading producer and consumer of Industrial products and at the same time the greatest storehouse of available supplies. Post War americas will Lead in economic changes it is a foregone conclusion thai this War like the last one will do lasting damage to. Europe As a whole industrially because Conn tries elsewhere will retain at Leas part of the industries and Trade connections which they Are now being forced to establish in substitution for european sources the americas comprising to continents of peaceful develop ment Are Likely to have a leading role in these economic changes. In order to avoid painful disillusionment Over the next few years we must Bear in mind tha the War will be a tremendous cos to All participants that our particular Job of furnishing some o the materials cannot bring us More than a partial compensation in the form of profit and thai even the neutrals must feel Thi Pinch of diminished markets Anc Trade disturbances. We can Loo for a stimulated production in Canada but we will have to finance it through our own re sources and savings and that Call for a program of the stricter Economy. We May even have to liquidate some of our external debt at the same time that Wear providing the Money for our own development. limited Only by markets and though these Are a Little improved. Mining shows gain mining production and prices show a moderate gain for the year and arrangements have been made for the marketing of certain metals at stable prices for War purposes. The enhanced output of Gold continues to provide this country with an important fund of foreign Exchange which is particularly valuable at the present time. The lumber and newsprint industries enjoyed a definite improvement. Nearly All lines of manufacture had considerable gains during the year. Both exports imports increased and the net balance of Canadian exports is being Well maintained and amounts to Orer millions a year. Our entry into the War marked almost from the Start by the establishment of certain controls Over our Industrial financial affairs. While these Ai the present time Are perhaps not excessive for the Job in hand we must constantly Bear in mind that the Powers delegated to the various boards and committees Are of a wide and dictatorial nature so that we will be exposed to the danger of their being exercised to an extreme degree or being extended beyond the term of their need. Thus far fortunately they have been for the most part help in Reserve. Banks co operate with foreign Exchange Board the War time regulations which affect most directly Are those of the foreign Exchange control Board. These Deal in the first instance with foreign Exchange in the narrower sense o foreign Money cheques and drafts but in order to implement the plans of the government to con serve our buying Power in the United states and other foreign markets the Board has been accorded Power to Deal with securities merchandise exports and imports etc., and it has issues numerous regulations covering such items As Well As those previously mentioned. Much of the detail i connection with this work has been thrown upon while at the same time their Normal income from foreign Exchange operations has been cur tailed. We Are not disposed to complain of this situation for our customers As Well As ourselves Are burdened with a great Deal of new work and uncertainty through the regulations4 but we do sin Cerely Hope that this control Wil not become an intolerable Burden and a permanent feature of our life. Government s financial policy commended in contrast to the last War when All participants borrowed for mos of their needs the approach to the problem of financing the presen War has been far from inflation by. A loan was promptly floated through and another be for Public subscription is now under Way. But a very heavy Rogr Arn of taxation is planned and we understand that Only the Weess needs will be borrowed. We Annot As yet the details it evidently the problem in that if utilizing the existing Industrial and financial resources to the est advantage and avoiding Asar As possible any Price inflation Uch a might be induced by an Early program of heavy borrow no. This must be commended when recall the disastrous effects of policies which bring currency depreciation and when we Bear in mind How conscious he Public has become in this As n other countries of the dangers which Are inherent in Radical measures of Public finance. Knowing that we must meet a. Leavy War Burden it will be bet Ter for All concerned to have a pay As we go policy in which everyone must share rather than in attempt to meet the costs through fanciful schemes which Lead to ruin. It is rather significant that the monetary plans which Blossom in the years of de pression seem to fade out when the real needs of War arise. Must not sacrifice real interests of people these considerations remind be that beyond the immediate Hazard of the War there is another danger which May be More insidious tie cause it is less evident. We have seen How certain governments of while nominally claiming to Advance the interests of their reality called unprecedented Quick assets consisting of Cash or of assets readily converted into Cash total and equal 72.95% of All liabilities to the Public. Of this amount is represented by Cash Bank balances including Bank of Canada and notes Ano cheques of other Banks. Securities Are up for the year. 94% of the total is Dominion and High Grade provincial and municipal Bonds of relatively Short maturity. Call Loans secured by stocks debentures Bonds and other marketable securities Are less than a year ago and reflect the less Active. Security Market that has prevailed in Canada during the past year. Commercial Loans Are up an increase of 17.36% Over the previous year. While there has again been a appreciable increase in the amoun1 of our funds employed under this heading the proportion of our total deposits so employed is much lower than we would like to see and we will Welcome As they occur opportunities of making additional funds available for sound commercial and Industrial activities. The increasing demand noticeable since the outbreak of War suggests that Loans required by Industry during 1940 will exceed the figures to which we have been accustomed during recent years. Municipal Loans Are approximately below last year s figure. To is encouraging to note the improvement taking place in the financial position of various municipalities As the result of greater efficiency and a More Earnest Effort to balance their budgets. This is commendable indeed. Bank premises show no material change the erection of permanent premises suitable for oar needs at Bloor and Jane streets and St. Clan ave. And Bathurst St. M Toronto together with other expenditures by Way of additions to present offices having offset the major portion of the appropriation of for premises account. Notes in circulation Are a year ago Leas the maximum amount we will be allowed to circulate will As from january 1st, 1940, be further reduced by 5% and must not exceed deposits show a very Satis factory increase of of which Are deposits by the Public an increase of 11.49% the increase of Public deposits in a Banks in Canada for the Sami period being our government deposits Are up largely represented by Short term Bonds purchased from the government in october proceeds of which had not been disbursed at the end of our year. A review of the financial state ments not Complete without commenting upon the and Erer increasing asset at Good will accumulated Over the eighty our years of the be Are very grateful to the Many friends who favor with their Minem and proud to hem. Inspections branches of have All been inspected by our inspection staff during the year and the usual audit of securities Cash and Loans has been made by the share holders auditors at the head office and main branches in Toronto Montreal Winnipeg and Vancouver. Staff it is with sincerity that i again express my keen appreciation of the Good work and Loyal support received from staff of is seen in the substantially improved figures of annual statement. Twenty four members of our staff have already enlisted to serve their country and been granted leave of absence with Assurance that a position and a. Welcome their return in conclusion i feel that it is a source of satisfaction to you at this time when our country is at War to know that your Bank is sound liquid and buttressed by Cash and securities of our own Dominion to the Point that prepared to meet any demands that May conceivably confront us. Our primary concern at the moment must be the successful prosecution of the War and it can be said with no uncertainty that of Toronto eat be de Pended upon wholeheartedly to do its part. Peoples have in upon them for sacrifices in their living standards for vainglorious purposes of the state. We must be constantly on guard lest the same kind of thought gains dominance in our own life. The totalitarian idea flourishes in the atmosphere of regulation which is thrust upon us by the War and the longer these conditions prevail the greater is the danger of it taking permanent Root. Individual Effort and incentive wot be discouraged it is impossible for the people of any nation to thrive either morally or materially under scheme which deprives the Indi j visual of control Over own thought and action and leaves if him entirely at the mercy of i government. The welfare of the individual must remain the measure of Success in Public As in private life. There must be a pre dominance of individual rather than of Community Effort this demands a. Predominance of Pri vate property and incentive. The War must not be allowed to be More than an interlude during which we temporarily Lay aside our ambitions in order that we May use our existing facilities to the full for the Success of the Campaign. It will leave us a further legacy of debt taxation regulation and other burdens which Are handicaps to the kind of development on which our future depends. But we must keep our thoughts and Hopes turned toward the time when we can once again resume the kind of Progress which so improved the life of the individual through the past Century. General manager s address or. Chairman and gentlemen the 84th annual balance Sheet which is before you. Shows the re sult of the yearns operations and s position As on novem Ber 30th last and will i believe be accepted by you As satisfactory. Our profits for the year after providing for All known or anticipated contingencies amounted to and As. Our president has remarked a considerable por Tion of the attributable amounts previously written off As a collectible. After paying our regular dividend and writing off the usual appropriation against Bank pre Mises we carried Forward to profit and loss account total assets show an of crease of and now stand at the highest Point in s history. Increase shown is to recoveries of eighty fourth annual general report 30th november 1939 profit and loss account profits for the year ending 30th november 1939, after provid Njg for staff pension fund for Dominion and provincial taxes and making appropriations to contingent accounts out of which accounts full provision for bad and doubt debts has made.5 written off Bank dividends at the rate of 10% per annul on this Par value of the shares. This represents a disbursement of 3.42% on the shareholders funds ing of capital rest and profit and loss account balance of profits carried profit and Low balance 30th november profit and loss balance 30th november eighty fourth annual balance Sheet 30th november 1939 liabilities notes in deposits by and balances due to Dominion deposits by and balances due to provincial governments. Deposits by the Public not bearing interest. Deposits by the Public bearing interest including interest accrued to Date of statement. Deposits by and balances due to other chartered Banks in Canada. Deposits by and balances due to bunks and banking correspondents in the United kingdom and foreign countries. Acceptances and letters of credit outstanding. Capital paid dividends declared sad balance of profits As per profit and loss account. Assets Gold held m Canada. Subsidiary Coin held in Canada. Notes of Bank of deposits with Bank of Canada. _ _ _ _ notes of other chartered government and Bank notes other than Canadian cheques on other Banks. Due by Banks bonking correspondents elsewhere than in Canada. Dominion and provincial government direct and guaranteed securities Matuja inf within two years not exceeding Market other do Mirabe and provincial government direct and Guaran teed securities not exceeding Market value. Canadian municipal securities not exceeding Market value. Other Bonds and stocks not exceeding Market Vahow Call and Short not axe ending thirty Days Loans in Canada on stocks debentures Bonds and other securities of a sufficient marketable value to current Loans and discounts in Canada not otherwise included estimated loss provided for. Loans to cities towns municipalities and school districts._.-. Non current Loans estimated loss provided liabilities of customers under acceptances and letters of credit per Eonta. Mortgages on real estate sold by the.Bank., Bank premises at not More than Cost less amounts written off.-. _ Deposit with the minister of finance for the Security of the note circus thou. _ John r. Lamb a Raidl f. H Marsh goner of Mana fir auditors report to Thi shareholders of Tea sent of torte ecu aimed to books and account of too bloc of Toronto Iti Hud jul bus font Sci with certified from the Braichet report that the above statement of and Anete at at november 1c39, m in a Jordann therewith and in our opinion Dii Lrata the condition of it Baak. We verified the each and the Repenn till i Neid Ai the head Obea at the Cine of Bank s focal year and Dunc the year ire counted the each and examined the Etc Itiat at certain of the important branches. We Hare referred All the information and explanations in tired and All of tha Tatak which Hare com pm. La am opinion own with to. Pm of the Bank. G. T. Cuk Teao Iro. A pea unit my. D. Mck. Moon cum Exxa. Stat trim ;