HomeMy WebLinkAboutThe Exeter Times-Advocate, 1934-01-11, Page 2THE EXETER TIMES-ADVOCATETHURSDAY, JANUARY 11, 1031
By C. R. Howard,
Exeter Old Boy, President of the Canadian-
American Trade Corporation, New York.
New York—“Canada is already
prospering by increased foreign and
domestic trade and the restored con
fidence in the matter or making fu
ture commitments, which corres
ponds to the tone of confidence be
ginning to prevail in the United
States.” it was stated recently by
Case R. Howard, President of Cana
dian-American Trade Corporation,
Waldorf-Astoria Building, following
a two months trip to study Canadian
financial and business conditions,
“Canada did not feel the depres
sion so much as the United States,
but the worst of the slump certainly
is past in the Dominion. This North
American continent is definitely
headed for the greatest psosperity
its inhabitants have known. The man
in the street has not felt it yet, but
it is coming as sure as fate.
“There is such a closeness of fi
nancial and commercial relationship
between Canada and the United
States, through nearness of markets
and for many other reasons, that it
apparently tends to override any na
tionalistic conferences held to build
up internal trade and it surmounts
all artificial tariff barriers.
“It is not surprising that this
should be true when you consider
that Canada absorbs more American
goods than any other country in the
world and the fact that the United
States is the largest foreign investor
in Canada. Therefore prosperity in
the one country is bound to affect,
sooner or later the business health
of the other. Heretofore Canada
usually has followed the United
States about six months or so on the
upward trend of the cycle, but this
year the Lady of the Snows promises
to lead the way to her big brother to
the South.”
U. S. Investment in Canada
“Even well-informed American
business men do not fully realize the
financial intrest that the United
States has in Canada,” said Mr. Ho
ward, “According to recent figures
approximately (65%) sixty-five per
cent, of all foreign investments in
Canada represents American capital.
In round figures of the six billions of
foreign investments some four bil
lion comes from the United States.
A large proportion of this invest
ment has been in the nature of Amer
ican branch plants in Canada to sup
ply the Canadian market, escape the
customs duties and also to enjoy the
perferential treatment accorded to-
Canadian goods by many countries
within the British Commonwealth of
Nations, with its total population of
a half a billion people.
“This compliment to Canada by
the United States in regard to the
Dominion being the best -outside
field of investment" has been due in
part to the stability of the Cana
dian Banking system.” Canadian
■banks reported to Mr. Howard that
millions of dollars were transferred
to Canadian banks by American de
positors since last May during the
temporary desire to have surplus
funds on deposit in a stable foreign
country and Canada was picked as
the most secure.
“According to a table prepared by
the investment Bankers Association
of America, the total Canadian dol
lar bonds outstanding in the United
States as of August 31,' 193 3, was
$3,200,000,00b, or more than one-
third the total of the nine billion
dollars floated by all foreign coun
tries, and three times the amount of
its nearest competitor for American
investment favor, with trifling de
faults as contrasted to no payments
being made at all by some other
foreign countries.
Shingles!
No. 1 B. C. XXXXX
EDGE GRAIN
The beat grade made at a low
price
No. 1 Dry Hemlock barn siding
10 in. wide, any length
Matched 2 in. barn flooring at
$30.00 .per M
A. J. CLATWORTHY
Phone No. 12, GRANTON
able balance of $100,000,000 for the
previous twelve months ending in
19131
“According to the Dominion Bur
eau of Statistics, the total aggregate
value of Canada’s foreign commerce
for the fiscal year 1932 was $1,16 6,-
000,000. [It compares favorably
with the figures of 1914, $1,050,000-
000' when Canada’s exports were
greater than they ever had been,"
“Indices and records show Can
ada’s general economic condition
reached its owest rung on the cycle
ladder during the quarter ending last
March and is definitely climbing to
higher levels,” he said.
“Volume of business shows a per
sistent increase of nearly (315%)
thirty-five per cent since the low
point of the first quarter of this year
Wholesale prices have risen over
(9%) nine per cent.; Automotive
(64%); employment increased over
(35%) thirty-five per cent; Bank
debits (11 %) eleven per cent, These
are remarkable figures showing the
increase since March, last.”
These Canadian changes for the
better compare favorably with the
advances in the United States for the
past nine months from February to
November, quoted by F A. Pearson,
of the New York State College of
Agriculture, Cornell University.”
From February to November gold
prices advanced 60 peT cent. Prices
paid to farmrs for wneait advanced
120 per cent.
Prices of corn 1'0'9 per cent.
Prices of cotton 75 per cent.
Prices of hogs 26 per cent.
The average prices paid to farm
ers for all farm products increased
5‘1 per cent.
The advances in wholesale prices
at New York City:
Copper advanced 64 per cent.
Hides advanced 121 per cent.
Rubber advanced 197 per cent.
Silver 65 per cent.
“From spring until midsummer,
business conditions in the United
States steadily improved. After that
time there was considerable reces
sion; now a turn for the better ap
pears to be developing. A great var
iety of measures have been employ
ed in the United States to break the
depression.| While conditions are
•still bad, they are very much better
than they were in February. With
the suspension of the gold standard
prices to farmers has risen, but the
advance has not been uniform. In
the process of restoring the price
level, prices paid to farmers for farm
products and prices of other basic
commodities should advance more
rapidly than the general price level.
Retail prices of food and the cost of
living should lag. Unless interfered
with by some artificial means, a ris
ing price level will automatically re
store an equilibrium approximately
in the price structure.
Canada Second in Gold. Production
“Gold production for Canada—
now the second gold producing coun
try in the world—'totaled $6,00'0,000
for the month of November, or a
total of $72,0100,000 for a full year
at the same rate.” said Mr. Howard,
“And it is easily conceivable that
with the unusual efforts being put
forth in prospecting and exploiting
new gold fields by airplanes and
other methods, it could rise to a
yearly total of $100-,00 0,0010 and go
a long way on taking care of Can
ada’s external .obligations yearly,
“'Canada needs American capital
and American technical skill while
the United States needs cheap raw
material. These mutual needs,” con
tinued Mr. Howard, “will do much
for our two countries in the future
as they have in the past in spite of
any trade restrictions that may rise.
Sound authorities recommend a re
duction of tariffs in Canada and the
United States with a view to> event-
ualy a partial if not a complete re
ciprocity. Personally we favor a gen
eral (10%) ten per cent, reduction
in the tariffs of both countries which
we advocated at the annual meeting
of the United States Chamber of
Commerce, held at Washington last
May.
“While it is granted there may
be some falling off in tourist expend
itures by Americans visiting Canada
next year, the difference should be
more than counter-balanced by re-
cepits for shipments of aged Cana
dian liquers as the quotas are ad
vanced, by the United States Govern
ment.
“Reports of loaning agencies and
statements of operating companies
made to banks in Canada by borrow
ers generaly, show a decided switch
over in earning powers during the
past year,” Mr. Howard stated.
“Many break even, come out of the
red, or show an encouraging growth
in their earning powers and pros*
pects. They are expecting further
orders and cause far less worry to
Not a Sjngie Bank Failure
“Furthermore, there has not been
one single bank failure for more
than twenty-one years, or a single
refusal of checking power to any
legitimate Canadian bank depositor,
as contrasted to the more than 14,-
0'0'0 bank faiures in the United
States in the past nine years and the
tie-up of ($2,000,0-00,00.0) two bil
lion dollars belonging to the Amer
ican depositors.
“Therefore, after a thorough study
over a long period of the banking
conditions prevailing in both coun
tries,” said Mr Howard, “We should
recommend that during the January
meeting the United States Congress
take up the task of inaugurating a
branch banking system similiar to
or in a modified form of the Cana
dian branch banking pain, with suit
able restrictions of control and man
agement that would necessarily have
to be maintained in the larger and
more diversified field of the States.
“Some well-informed American
bankers and forward looking deposi
tors have seen the possible future
development of branch banking, but
the hand writing on the Daniel bank
ing wall, plainly writ by the past four
years of extensive bank failures in
all parts of the country, has only re
cently come to judgment and point
ed surely to the immediate necessity
of revising the banking laws and
system in the interest and good of
the majority. Branch banking is one
of the solutions, both to the Govern
ment and to the banks themselves
in the United States, of the problem
of bank insurance guarantees of cus
tomers’ accounts. Branch banking
will be one of the good things to
come out of the ill wind that has
been blowing over the country since
1929.”
Mr. Howard has been a proponent
of the primary safety of the bank
banking system for many years and
is an authority upon this subject. He
has given addresses before annual
conventions in the United States,
Banking Associations, National For
eign Trade Councils, Chamber of
Commerce and other large organiza
tions from coast to coast. He -has al
so contributed many articles to mag
azines and newspapers and is. a re
cognized authority upon Canadian
and American economic subjects. He
recently celebrated twenty-five years
of active branch banking experience
in a Canadian bank.
He was formerly with the Cana
dian Bank of Commerce at their New
York Agency, before entering upon
his new duties and as Manager of
their Foreign Business Department,
for a period of ten years .travelled
extensively in the Eastern States up
on their behalf.
“Canadian branch banking,” con
tinued Mr. Howard, “permits of a
flexibility in the employment of cap
ital, which no other banks of the
world possess, and it has' been so
successful that American institutions
might well adopt its operation to a
greater or lesser extent. Canadian
banks, unaided, are able to finance
the immense seasonal money de
mands of agriculture, mining, lum
bering and fishing, as well as stock
and bond market operations, without
the fluctuation of rates for credit ac
commodation that |occur in some
other countries. No local individual
banking concerns in the great prairie
provinces of Canada could have stood
the strain of the past four years for
Canadian growers.
“The Canadian branch banking
plan, perfected over years of opera
tion gives even the smallest com
munity the service, resources and
stability of powerful institutions in
terested in the upbuilding of the
country. The serious objection that
too much power and control is vested
in the nominal heads of the largest
banking groups in Canada will be
counterbalanced to a great extent by
the new Central Bank—so much op
posed by Canadian Bank officials—
recently recommended by the British
MacMillan Commission and soon to
be authorized by the Canadian Gov
ernment.
Remarkable Recovery
“Further evidence of the remark
able recovery which has taken place
In Canada Is evinced by the encour
aging foreign trade figures. Both
import® and exports have risen and
Canadahas a favorable trade balance
of $114,000,000 for the year ending
August 1933, as against an unfavor
Simple Rules
Prevent
WEARINESS
Do you know that there is a simple, natural
way to stay on the high-road of good health
and to end those days of weariness when body
and brain.seem sluggish and heavy? There is.
And it is just living right, plus being sure that
you are not unconsciously suffering from »n-
compleie elimination of body wastes,
Eat moderately. Sleep sufficiently. Get
lots of fresh air, exercise and recreation. Don’t
worry. And make sure of complete elimination
by taking a stimulating, pleasant-tasting glass
of Andrews Liver Salt once or twice each week.
Do not make the mistake of supposing that
just because your habits are regular your sys
tem is functioning perfectly. It is because your
eliminative organs are not functioning fully that
you go through days of weariness, or suffer
indigestion and headaches. The weekly or
twice-weekly bracing glass of Andrews Liver
Salt, will help Nature to sustain complete
elimination, and thus give you a zestful appe
tite, and sustain you in vigorous health.
Prevention is better than cure. Begin now
to observe these simple, inexpensive Andrews
Rules for Health. Get Andrews Liver Salt
from your druggist. In tins, 35a and 60c.
New, large bottle, 75c. Sole Agents: John A.
Huston Co., Ltd., Toronto. 9
the credit manager authorizing their
line of credit.
“Canadian industrial executives
are persistent followers of the re
ports of what is taking place in the
United States, knowing the particu
lar affinity their business has with
conditions prevailing in the other.
Recovery in the United States start
ed shortly after the inauguraition of
President Roosevelt in March and
continued with sharp upward swings
until the middle of July’
“At that point the .Standard Sta
tistics index of industrial production
(relatives, Jan. 1, 1932, equals 1'0'0)
reached the high 90s, well above
1932 peaks and slightly above the
highest point in 1931. The index line
dropped then almost as sharply as it
had risen until near the end of the
year when it leveled off to about the
1932 peak.”
“Other indices of business activi
ties should corresponding trends,”
“Many economists of the United
States,” said Mr. Howard, "attribute
the changes to the policies of the
Roosevelt administration which are
unparalelled in American history,
but other economists claim the ad
ministration’s program actually re
tarded what would have been a nor
mal recovery.”
“Political and economic observers
believe President Roosevelt is shap
ing all activity to present it in the
best light before Congress in January
to prevent any bolting which unsat-
ififed party ort non-party members
might attempt. If his program ap
pears successful, Congress will not
attempt changes of a drastic nature
which might' limit his powers or
cripple the recovery movements
which already have been launched.”
“The silver purchase plan recently
announced by the President,” con
tinued Mr. Howard, “was seen in
some quarters as a move to bring
the senators and representatives of
the seven largest silver produsing
States of America into line back of
the general recovery program. They
had asked that “something be done
for silver,” and the President “did
something for silver.”
“The agreement is to purchase
about 24,000,000 ounces annually
United States .production. The entire
plan will cost the Government noth
ing.”
“One possible source of revenue for
the administration,” stated Mr. Ho
ward, “is the appreciation of the ap
proximately $ 4,0'0 O', 0 0 0,0,0i0 held in
gold through operation of the gold
purchase plan whereby the United
States Government purchases newly
mined domestic gold and buys and
sells gold in foreign exchange. As
the price of gold rises in dollars, the
dollar value of gold held the Govern
ment increases, and if the statutory
price is doubled the limit the Presi
dent can go under the law, then the
$4,000,000,000 held in gold will be
worth $8,00'0i,000',00’0. Should this
doubling of gold value held, take
place it will go a long way to finance
the recovery program put under way
by the Government and relieve the
burden on the taxpayers.
“The National Recovery Act, one
of the keystones of the recovery
drive, probably will be made perm
anent in many of its major features.
Self-regulation clauses in many of
the codes of fair competition are
cied by industrial leaders are the sal
vation of their particular line of
work. In most industries govern
ed by codes, particularly the textile
industry, the number of employees
have increased, hours of work were
shortened, hourly and weekly wages
increased generally. Strikes have
dwindled to unimportance and it is
to be sincerely hoped will remain so.
Conditions Improving in England
“With the improvement in con
ditions in England, definite come
back of Australia and New Zealand;
Ganado, definitely growing more
prosperous each month; and France
and Italy prospering and able to ship
wines in quantities to the United
States the American executive will
be taking advantage of every oppor
tunity to extend their foreign busi
ness and help bring back the total
exports to former high levels.
“Realizing that continued pros
perity icanhot be looked fpi’ until
normal world trade has returned and
the many problems that will con
front business executives, a group
of Americans and Canadians in the
business and banking field, have
formed the 'Canadian - American
Trade Corporation, to fill a long felt
needs of a commerical organization
able to give quick, unbiased and ac-
icurate information, and do away
with the usual red tape.
“The object and punpose of The
Canadian-American Trade Corpora
tion are to aid the development and
maintenance of trade between the
two countries, provide a medium by
which an interchange of opinions
may take place and the establishment
of uniform systems and methods for
the conduct of business, and to
gather and diesseminate essential
information and statistics, as well
as provide a physical meeting ground
for Canadian and American buyers.
Displays of American and Canadian
made goods will be exhibited perm
anently, for which no provision has
ever made in New York formerly
and Canadian Companies, Cana
dian Boards of Trade, Industrial De
velopment Bureaus, Chambers of
Commerce and Canadian Manufact
uring Associations will be whole
heartedly interested in furthering
the aims of the organization, as will
also the corresponding groups of the
United States.
“While in no sense a stock selling
organization the corporation will
■give information to the American
public tending to promote confid
ence in Canada as a whole. Cana
dian-American Trade Corporation is
ready to obtain confidentially, analy
sis reports of the Canadian market
for American products, give suitable
suggestions for the financing and
location of Canadian plants, popula
tion figures, plans and costs for in
corporation of companies under Do
minion or Provincial charters from
the first stage onwards until finally
operating under a manufacturing
basis. If necessary additional cap
ital will be sought in 'Canada to
carry on the operations of any re
futable company wishing to extend
'their operations into Canada.
“Even some well-informed Amer
icans, fail to realize the size and im
portance of the Canadian market. To
all intents and purposes it is a mar
ket fully equivalent in size and pop
ulation to the New York market
which no progressive manufacturer
would think or ignoring. The popu-
ation of the Dominion is. over 10,-
EDDIE, THE AD MAN
ZZkHORSE APPLESOSS MAS
SEEM RAZZIMQ OUR WAMT
ADS BECAUSE TMEH MEVER
FOUND TM' KEYS" ME LOST A
MONTH AGO-«»WSTERDAY HE
LOCATED 'EM W AW OLD PAIR
of wweu our. bitty
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"THEME’S A REAfiOM
asss__________SIS
Was Seriously Troubled
With Boils All Over Body
For the past 55 years
MANUFACTURED ONLY BY
THE T. MILBURN CO., Limited
Toronto, Ont.
1
IB,LOOP
Bi ITTER.S
J
000,000 and about equals the po<pu-
laion of the huge New York market.
Canadian-American Trade Corpora
tion stands ready to furnish inform
ation on this Canadian Market, and
the best way to manage it when the
new Canadian business has been ob
tained,
Twenty-five dollars will be given
in prizes to the readers of the Times-
Advocate who renew their subscrip
tions this month. See advt. on an
other* page.
REPORT S. S. NO. 6, HAY
The following is the school report
for S. S. No. 6, Hay for the months
of November and December. Hon
ors 7'5 or over, pass 60, below 60 un
satisfactory.
Sr. IV—Irene Foster, 72; Freddie
Farwell 65.
Jr. IV—Elgin Kipfer 63.
Sr. Ill— Keith Wildfong 68; L.
Hoffman 64; Cyril Gingerich 61;
Arthur Foster, >59; Neil Gingerich,
58; Lennis Gingerich 57.
Jr. Ill— Marie Wein 66; Ruth
Witmer 65; Albert Hoffman 514;
Vincent Smith 44; Gerald Ginger
ich 40;Pearl Bridges 3 3.
iSr. Ill— Doreen Gingerich 64;
Theresa Hoffman 48.
Sr. I—Della Gingerich 85; Mary
Hoffman 61.
Primer— Charlie Bridges.
Beryl Pfaff, Teacher.
Here and There
Twenty-nine men and seven
women who pioneered Alberta
trails died in the present year.
All of them saw the west when
it was young, the west that exist
ed before 1895. The current year
marks the half century since the
Canadian Pacific came to Calgary.
Sailing for New York Decem
ber 14, the 42,500-ton white-hulled
Empress of Britain left on a
Christmas and New Year’s holi
day cruise for the West Indies,
December 22, returning to New
York January 3 and sailing again
January 4 for a 4%-month cruise x
around the world.
Among the “Believe It or Not”
facts wellknown to the generality
of newspaper readers, may be
added the statement of S. G. Hib-
ben, of the Westinghouse Light
Company, made recently in an
address at the Royal York Hotel,
Toronto that “today there are
some 10,000 different kinds of ar
tificial light sources.”
Approximately 78,000 people
own the Canadian Pacific Rail
way through their ownership of
the company’s common stock. Of
these, 36,000 live in Canada. Of
the balance, 21,000 live in other
parts of the British Empire, most
ly in England, - with 16,000 in the
United States‘and 5,400 in other
countries, mostly continental Eur
ope.
For the first time in western
Canada, an impressive ceremony,
the age-old investiture of the
Knights of St. John was held re
cently at the Hotel Vancouver,
Vancouver when six British Co
lumbians were admitted by King
George, sovereign head of the
order, to high honors. Old world
costumes and strange rites added
to the dignity and color of the
proceedings.
Railways and their important
functions in the economic exis
tence of the State were stressed
by G. G. Ommanney, development
commissioner of the Canadian
Pacific Railway at the annual
banquet of the Traffic Club of
Hamilton recently. They had, he
said, contributed materially to de
velopment of natural resources,
building up of industries and in
promoting land settlement and
agriculture.
Railway and motor truck trans
portation are both essential to the
economic wellbeing of Canada
and neither should be antagonis
tic to the other, stated Hon. R. J.
Manion, minister of railways and
canals, at a national conference
on transportation held at Ottawa
recently. But, he added, while
railways are subject to strict reg
ulation and control, motor truck
service has not as yet been
brought under any comparable
control or regulation.
Mr. D. Stein, Leduc, Alta., writes:
“I had serious trouble with boils.
My arms, legs, neck, in fact, my
whole body broke out with them.
I tried salves, ointments, poultices
and many different medicines, but
they did not help me.
Then I tried Burdock Blood Bitters
and was surprised at the results.
I only took two bottles aud the
boils disappeared and I have never
been troubled with them Binco.”