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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 ud ADS DOMT DO TMEW-STURJ "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.”