Loading...
Clinton News-Record, 1959-09-10, Page 4WILL BE GIVEN AWAY BY FRIENDLY HARDWARE DEALERS VISIT US FOR COMPLETE DETAILS Bali & Mutch IRA., Hardware Phone HU 2-9505 Clinton, Ontario 71,1171151) • SUrgIVIUS,W, laP Bank of Canada Responsible For Money Supply, Reports John Muir I felt as though my feet need- ed retreading. For hours they had been beating the miles and miles that wind among the acres of the Central Experimental Farm at Ottawa. The day was sunny and the earth exhumed that sweet smell that is a mixture of com- mercial fertilizer and humus. The promise of beauty and the answer to hours of research for new and From this point on, quite obvious- ly the banks are rendered im- potent so far as being able to assist in implementing the Bank of Canada's monetary policy through the forces of increasing interest rates, "In view of all that has been said, how have the banks been able to continue to meet their clients' demands for heavily in- creased loans since the inception of the tight money policy last fall? The answer is; Only by sel- ling Government bonds, from their portfolios in order to raise cash and, in view of what we have said about the drop in the price of Government bonds, it requires no imagination to realize that this is a far from profitable process. However, the banks are, so far as we know, making no great complaint on this score. What we are concerned about is that com- mon sense makes it clear that such a policy cannot continue in- definitely. Equally important, or perhaps even more important, the fact confronts bank management that there is a point below which they cannot allow their holdings of Government bonds to drop and still preserve an adequate volume Orville Engelstad, manager of the Clinton Branch, Royal Bank of Canada, notes in the Montreal Star of August 17, statement made by James Muir, chairman and president of that bank. "It must be made clear to everybody that the Bank of Can- ada and not the chartered banks control the volume of money and credit within our country. It is the Bank of Canada which de- cides when money and credit should be increased, or tightened, or left constant, The machinery which the Bank of Canada uses in order to carry out any given policy works through the char- tered banks. For example, let us say the decision of the day is to make money easier — in these circumstances, the Bank of Can- ada increases the cash reserves of the chartered banks, This makes them flush, and at such a time money becomes cheaper, i.e., the rate of interest is lower. This in- duces the banks to loosen up their lending policy—a situation which borrowers readily take advantage of, and so we have an expansion of business in almost every direction. "Now let us examine what hap- pens when a tight money policy comes into force, such as has been the case since last fall. The Bank of Canada decreases the cash re- serves of the banks or holds them constant in the face of a growing demand from bank customers for more loans. The net effect is the same in either case. Money and credit grow scarcer and inevitably dearer, the yield on Government Treasury bills rises, the price of Government bonds drops, which increases the yield, the "bank rate" rises and, as part of the cycle, the rate of interest charged by the chartered banks to their customers has to go up. The high- er bank rate is thus passed on to the public and this goes on and on until the cost of money to borrow- ers becomes unprofitable, at which point they start to trim their sails, and so what might be called a period of restriction or a calming down takes place in the whole economy and a boom or an un- healthily active condition is grad- ually brought to a stop. Current Situation "Now what is the Canadian picture at the moment? First, the Bank of Canada has pursued for months and is pursuing a tight money policy in a battle against inflation. This policy , has driven up interest rates to levels seldom, if ever. seen before, but—and here is the nab of the whole question— these interest rates have hit an impregnable barrier, as it were, in the shape of the legal lending rate established under The Bank Act hardier varieties of growing things filled the air, Ahead of me was a group of school children. Hundreds come to the Central Farm in organized groups every year. Especially at lambing time, said Ludger Belle- fleur, public relations officer for the Farms system throughout Canada, Statistics always fascin- ate me and when Mr. Bellefleur proudly related his. 1958 visitor record, I took these notes. Two hundred and thirty-four organiz- ed groups visited the Ottawa farm and been conducted through the buildings and gardens. This num- ber included 120 school groups and totalled 9,508 persons. There is no way, said Mr. Belle- fleur, of keeping constant track of the thousands who roam over the grounds in summer. However, one weekend last fall when the chrysanthemums were in full flower, 12,415 persons by actual count, strolled the acres of bloom. Possibly the most impressive fact related to me that sunny afternoon was that scientists from 34 nations, including those from behind the iron curtain, sought knowledge last year of agricul- tural and .floricultural methods from Canada's parent experiment- al farm. Some of the most in- tensive research is of particular interest to farmers. Rust resist- ant grains, cross breeding of cat- tle for a better beef strain, are among the most interesting sub- jects under constant study. Scien- ce and plastics have rapidly ad- vanced the knowledge and con- trol of cereal plant diseases. In growth chambers, four or five crops a year can now be grown and studied. Formerly, only two crops a year were grown, one in summer, one under glass during winter. There isn't a subject pertaining to agriculture and animal husban- dry that has not been explored and detailed in booklet form for the enquiring public, When I ask- ed Mr. Bellefleur which of the more than a thousand booklets was most in demand he seemed a bit apologetic. Graduate of Lav- al University, with years of ex- perience behind him in the op- eration of experimental farms from Fredericton, N.B., to Ot- tawa, he was almost reluctant to admit that the greatest demand was for advice on the growing and• cultivation of ornamental shrub- bery, This, however, rather pleased me, for it was comforting to know that amid that impressive display in his office (booklets surround three walls) was salvation for my garden. Born with two green thumbs but little technical know- ledge, my perennials have surviv- ed over the years by the grace of nature. I came home with my suitcase loaded with literature and my head buzzing with for- mulas for sprays and fertilizers. In a more serious vein, I think we should salute the thousands of employees at the experimental stations from the Atlantic to the Pacific, including the Yukon, who are assisting nature by their knowledge that takes years of study and experimentation to ac- quire. They guide the farmers and gardeners of our nation. If there is an experimental farm in your vicinity, take time to visit it. If it means a trip, it will be well worth your while to board a train bound for such a destina- tion. As far as Canada is con- cerned, this continent has often been called the bread basket of the world, and government spon- sored experimental farms have played a large part in making it so. ARA • OJAI OA • re THE CHRISTIAN SCIENCE MONITOR AN INTERNATIONAL DAILY NEWSPAPER Good Reading for the Whole Family • News • Facts • Family Features 4geieee•e; AeteeNI,e- A SAVINGS ACCOUNT STRICTLY FOR SAYING The Christian Science Monitor One Norway St., Boston 15, Mass. Send your newspaper for the time checked. Enclosed find my check or money order. 1 year $18 0 6 months $9 0 3 months $4.50 0 H YOU R SAVINGS RISE-. WITH THE ROYAL BANK Name Address ACCOUNT PLAN City Zone Stat. Step one: Open a Royal Bank Personal Chequing Account for paying bills. Step two: Keep your Savings Account strictly for saving. 2 it !t see your savings go up with every deposit; '.you make, plus the interest your money earns. Let us set up a 2-Account Plan for you. It is a real help in saving. AIR-CONDITIONED FOR YOUR SHOPPING COMFORT ;With a Personal Chequing Account for paying bills you seldom need to dtlw from your savings. You can actually A PERSONAL CHEQUING ACCOUNT FOR PAYING BILLS BUY NOW and PAY LATER Avail Yourself of Our Revolving Charge Account 11 111111# by Teeete iga.475,T • Of GENERAL FOODS KITCHENS What's autumn without grapes? And what jelly cupboard is com- plete without Grape Jelly? Why not make your own, using this successful recipe? GRAPE JELLY 4 cups juice (about 3 quarts ripe Concord grapes) 7 cups (3 lbs.) sugar bottle Certo fruit pectin First, prepare the juice. Stem about 3 quarts fully ripe grapes. Crush thoroughly. Add 1/2 cup water; bring to a boil. Simmer, covered, 10 minutes, Place in jelly cloth or bag and squeeze out juice. Measure 4 cups into a very large saucepan. Now make the jelly. Add sugar to juice in saucepan, and mix well. Place over high heat. Bring to a boil, stirring constantly. Stir in Corte at once. Then bring to a full roiling boil. Boil hard 1 minute, stirring constantly. Remove from heat, skim off foam with metal spoon. Pour quickly into glasses. Cover at once with 1/8 inch hot paraffin. Makes about 10 medium glasses. ;THE ROYAL BANK OF CANADA - Clinton Branch: 0. L. Engelstad, Manager Goclerich Branch: H. G. Spring, Manager We Welcome Your Credit Come In And Get Full Details of the 3 WAYS TO BUY • REVOLVING CREDIT • LAYAWAY • CASH REVOLVING CREDIT PLAN • No Carrying Charges • No Interest Persohal Chequing Aecouni 0 24 tfb People who borrow money to get themselves out of the rut us- ually end up in the bole. elf A MOMENT'S ALL THE TIME IT TOOK, AND LIFE TAKES ON A BRAND-NEW LOOK IT'S CASH YOU NEED, 'TIS PLAIN TO SEE „ „SO OFF YOU GO TO T.C.C. THE MORAL'S PLAIN FOR ALL TO SEE .,,WHEN YOU NEED CASH SEE T.C.C. TRANS CANADA CREDIT TRANS CANADA CREDIT MerA s,M• MAIWW,f.':At Oka CORPORATION LIMITED 148 THE SQUARE, PHONE 797 GODERFCH, ONT. TS6.7R 0000 WIL.X. (mom, To mioBT ON SIM;14,11411Elt 14 The Wesley-Willis United Ch- urch good Will Club will meet in the lecture room on Tuesday evening, September 15 at .8 p.m. Clifford Epps will show views of a recent trip through Western USA. of liquid assets so that they will not depart from traditionally sound policies. Rationing of Loans "At this point, so long as the money supply is not allowed to in- crease with the demand for loans, the chartered banks must resort to the curtailment of loans (and rationing) of bank credit. This, of course, is a thankless task and, in the process, the chartered banks and not the monetary authorities appear to the general public as the ones responsible for all the hardships borne by those depend- ent on, but unable to get, a ready supply of bank credit. • "In other words, interest rate policy and control of the money supply are interdependent devices which the Central Bank may use to control bank credit. The first is inhibited, and at present rates made impotent, by the ceiling on chartered bank lending rates. The second is effective but places the onus of credit restriction unfairly on the chartered banks." Have You Renewed Your Subscription? PosoN rom • • . NOW THE NEW eveo HOME FREEZER • The Revco Farm Freezer con- struction assures you of high- est quality materials and work- manship. • Revco's exclusive bonded faster freezing aluminum interior pro- vides superior freezing results. • You can judge a freezer by the speed of its freezing action. Faster freezing means the fla- vour & freshness of your foods are sealed in. The new Revco has the fastest freezing action known. We can prove it in a two-minute test you should see —and feel. You'll see why homemakers hail Revco as the best freezer buy—by far! * * COME IN AND TEST YOUR OWN TV AND RADIO TUBES FREE. * * * Clinton Electric Shop Your WESTINGHOUSE Dealer D. W. CORNISH, Proprietor HU 2-6646 — CLINTON What is pectin? It's the jelling substance found in all fruits in varying amounts. Certo is pectin extracted from fruits rich in this natural substance, then refined, concentrated and performance- controlled. Your jam and jelly set exactly right when you use Certo and follow the tested Certo recipes. • Preserving Pointer. Never open a jar after sealing, to fill the space which may appear at the top. If the sealer is completely air-tight and has been properly and suffici- ently processed, the food will keep perfectly. Breaking the seal and adding more fruit may easily cause, spoilage and waste the whole jar! This is my last column for the year. What fun it's been visiting with lieu! I know that you and your family will truly enjoy all the good things you've been able to preserve so successfully by following these tested Certo recipes, BILLS AND PAYMENTS OVERDUE,,,, WOE IS ME.,,, OH WHAT'S TO DO? Why put up with money problems? The solution to those worrisome bills is as easy as this: call Trans Canada Credit! Loans from $150. to $2,500., or even more, can be arranged for up to 20, or 30 months. So why not solve your money problem? Call us today! BY DOROTHY BARKER.