HomeMy WebLinkAboutThe Goderich Signal-Star, 1956-01-19, Page 24tGic
ijr qbtriril toll:at tar,
IRMON COUNTY'S FOUM0Si1 WEKIAY
Eeiebaelled 1010. Itt its 199t11 rear caublielioL
Published 4Slenal•Star Publishing Limited
SubSealption, Ratee--Canada and Gr6at Britain. $$.00 a year: to United
States, $4.00. Strictly In edvance.
AdYert1sin4 Rates ent request nTeleptiope 71;
Antliorized as secondeclass e ail, Post ()Mee Departmeat, Ottawa.
f -Town Representative: C,Welkl.A. 420 Te elite Blelg„ ay analattichinond Sts., Toronto.
01011W 3,(1004argest circulation* of any weekly paper in Huron .Courity—Over
.00
4r 0 Cariedian Weekly *Newspapers Association. Member of Ontario Weelcly Newspapers
AssecietioneMereher of ,Audit Bureau of Circulations.
GEO. L. ELLIS, Editor and Publithan
TIfl GODERICII SIGNALSTArt
THE 0610 HOME TOWN 0.104440c0`.8 STANLEY
WAVrieLl CoOtildke
YVAS AN
0‘04-11PW COM.
elA14 BY 111
SLACK/Ai HIS/
St.,ACKE.`
C
_ 71111/1R?LtAX, JANUAltY Agth, 1958
THIJIISDAY,..IAMARX 15th 1950
.MR. HOWE 15 CONFIDENT
The Wheat surplus in the prairie West is
proving; as expeeted, a major point Tel attack
upen the Government ii the Parliamentary
aeta1011, DOW in -progress. at Ottawa. It is an
eMbarrasallient that the Government cannot
escape, for the bursting elevators and thee,
pileS of unstored ttheat are there for anyone
to see, although what the Government can do
about' it le not so evident. So far at least
-ii6ii-e-Orthe-Dpitotitiott parties bas evolved a
plan that commands anything like general
agreeruent, and even the wheat -growers them-
selves are united only in declaring that they
want the grain turned into cash, they don't
eare how.
The ever -optimistic Hon. C. D. Howe, who
as Minister of Trade and Commerce is the
• member of the Government against whom the
Opposition attack is chiefly directed, character.-
tatically declines , to aceept the critidism.
Pointing out that the wheat surplus has
aceumulated thaough five years a bumper
crops on the prairies in apite of "orderly"
marketing throughout these years, he holds
that it is good thing to have surpluses and
he would not consider the proposal to adopt
the United States plantof giving them away.
Canada is more fortunate, he argues, than
those countries -which have shortages. In the -I
meantime, so long as the farmers have a sur-
feit of wheat which caanot be marketed in a
period of world-wide over -average yields,
measure a are' being taken to see that the
growers do not suffer through lack of 'buying
power.
Mr.,Howe's point of view is not the usual
one, and whether it will be accepted by the
Western farmers is questionable.
ANOTHER PROBLEM
While too much wheat may be Canada's
No. 1, problem, Alberta natural gas presents
another that appears to be equally itdiffieult
of solution. The plan agreed upon by Ottawa
and the Ontario Provincial' Government for
tirefinaneing of the unprofitable stretch of'
pipeline across Northern Ontario appears to
have gente,on the rocks, and Premier Fr -cost and
others of the 'Provincial Premiers are said to
favor a project to be carried out entirely with
public funds (to be provided, we presume, by
the Federal Government). This would not
gea rid of the costly section of pipeline: and
if private financiers cannot find the money for
What would be an unprofitable -enterprise we
don't see why the taxpayers should be Asked
to put up the funds.
The beneficiaries would be Alberta, to
supply the gas, and the Ontario cities that
would use it. The taxpayers would be in a
lovely position with Alberta at ohe end deman-
ding its price for the gas and at the other end
possible c-ofisumers who would have choice of
gas, oil, or coal for their requirements. ,
Better figure out some other plan, gent
men!
WHEN THE FARMER RETIRES
• The Farm Forums have been discussing and of course it would strengthen the case for
retirement, plans for farmers and have brought urban retirement if children or other relatives
out a variety of suggestions. One that re- were living in town and would provide a home.
ceivea, a large measure of support -was that It is impossible to set forth a plan that
retireMent should be on. the farmer's own farm, would suit 'all cases; individual circumstances
ort any rate in a country district. The cost would be the determining factor in each case.
of buying a. house and of living in town was What should apply to all, however, is that
mentioned, as a cOnsideration in favor of re- there. should be a plan towards which the
aintitit -on the farm. farmer should work during his years of activ-
riarereetalumeittstaltereiefein -n,ttatteLtNeettege, t4t,toe ettltren- . Ane,tintn, ..r,Qnkes,SQL.AliA-xt °
•theedeelining years. in town, where faeili- retire- he should be prepared for one of the
ties for readieal and hospital care are better, great changes of his life.
EDITORIAL NOTES
Itin only the wicked that wM,k in slip-
pery plaeea. •
*-
The winter is wearing on and the worst
of it may be over—except for February, and
March.
* * 4R *
Th.e Japanese keep right up to date wit
American customs. At Qsaka the other day,
the cable reports, a 14 -year-old girl was tramp -
,fled to deatla in a scramble for theatre tickets
,for a' "personal appearaaw" of a movie idol.
• • 0 •
Some peopltet have been amused by the
eleetion alogan of Dave Dreisinger, an Elmira
tindertaker. This was his promise to the
.eitizens° of that - town : "You can depend on
me. I'll be the last man to let you down."
ECe got elected.—Fergus News -Record.
47 *
• , The likeness of Benjamin Franklin, which
disappeared some time ago from the front
cover of The Saturday Evening Post, is back
eagain in the current issue, with a'bit of Frank-
lin philosophy : "If all printers were determined
.not to print anything till they were sure it
aeonld offend nobody, there would be very
little printed.' -'7 This is dated 1731, and most
printers orthis day wouldItat disagree.
• • • •
Another entbezzlement reported from an
Ontario city, where a woman clerk is charged
with stealing $13,000 during not much more
than a year of employment. Sometimes it is
bigger "take" over a longer period, but in
this case it is -a legal firm, not a bank, that"
claims the loss. There appears to be as much
carelessness on the part of the vilims in such
cases as there is, bold ,cleverness, or clever
boldness, in execution by the embezzlers. It
must be a blind eye that would not miss
$10,000, $25,000, sometimes more, when it dis-
appears from the vault or the accounts of a
business firm.
' - 1111114
00c Pli-l-SeulfitY AS1/40`1312 "ME "Mg t
ON A mtoenGire CALL. leoqeel SPOOKWAY LANE
ID ma am rtTuro arnticAte. mom Amara luinutnta.
Down Memory's
Lane
45 Years Ago
The subject of cutting a canal
front Goderich to Hamilton to con-
nect Lake Huron with Lake Ontario
islagaini-under discussion.
Butter is selling for, from 21 to9
24 centS-1, pound in town this
'
week. „,
WilifredArmstrong fell from the
top of the new elevator—a distance
of t102 feet—and lived. He suffer-
ed a few broken bones and bruises.
Friendlt, of Ernest MacMillan, the
brilliant young .Canadian musician,
and son of Rev. Alex MacMillan
(formerly of Auburn) willThe glad
to hear that Ernest has received
the Fellow of Royal °allege of
Organists at the age of 17. He is
mkirking nt his bachelor of music
at. Oxford University.
25 Years Ago
A 16.ounce lemon has been on
exhibition in. the Star 'office window
the past few days, grown by Fred
Barker of town.
A good supply of fabbitS ir
Colborne this year -have brought,
Goderich hunters out in .force. Two
organized drives were held during
the last week.
The Goderich Planing Mill was
sold on ,Wednesday of this ,week
to Mr. KalbfleiSch, of Zurich.
William Campbell was elected
•president of.the Marine Social Club
at 'their annual meeting, Saturday.
First vice-president Capt. Wil-
liam Marwick: Second vice-presi-
dent is Capt. Max Clairmont.
15 Years Ago
Citizens of Goderich• and district
12-8
moon and stars to look at in the
skies these nights. Tiny colored
lights from the bombing planes at
Port Albert Air Navigation School
move eerily through 'the darkness
from dusk until dawn. •
Percy Johnston was elected pre-
sident of the Goderich Trotting and
Pacing Association Tor the second
year.
The Goderich Boy. Scouts and
Cubs and.,Girl Guides will hold a
special memorial service in honor
of the :ate Lord Baden-Powell at
St. George's Anglican Church, Sun-
day.
A bare haLf-dozen turned out for
the meeting of the ,Goderich Agri-
cultural Society, Saturday. It is
hoped the organization can be kept
alive until after the war.
10 Years Ago
.County Council has decided to
-offer -for sale Huron County air-
port, (Sky Harbor) to Cub Aircraft
of Hamilton.
County' Council voted 1.6 to 11 in
favor of building a new court
house ,here.
. Reeve Shaddick of Hensel]. has
-been selected Warden of Aaron
County for 1046.
Yesterday 'afternoon a party of
from 30 to 40 huntsmen travelled
•north from-Goderich to the Amber -
ley area in seareh of jackrabbits.
They returned with about'50 jacks.
Trustee ,Harold S. Turner is
chairman of the Public School
Board for 4946.
All extra preserve ration cou-
po4s are now valid., each for -the
puechase of one -1412 pound of
have something more °than the
. .
A patient. had undergone an operation in a
hospital. „Across' the street from the hospital was
St. Peter's high school where the high school band
'was rehearsing. The patient, beginning to come
out of the effects of the anaesthetic the. doctor had
Administered, groahed: "I hear music." •
"Just be quiet, that's only St. Peter's band,"
said the nurse at his bedside.
To which the sick man drowsily remarked, "
. . . made it!"
NEWS OF DUNGANNON
DUNGANNON, Jan. 17. — Mrs.
eliehard Park, who has been on the
• cick liet far same time, is improv-
neg.
• Wilfred Drennan and son, J.C.,
were eisitore 'with Mr. and Mrs.
lierb Stothers on Thursday.
Mn Bert afeWhinney is staying
with her 800,- Iltigh; while her
•,elaughte,r-in-law and . Lexie .have
gone te Cornwali to be with her
/parents, • Mr. anti Yeas. William
Mote Mr. Elliott has been eick
for eoine tit= an41 we hope he
,Nilb soon be nmeli improved in
a loath.
4-14 tiub.,--Ihe Dungannon Sew-
&las dub hen been divided
into two elassea with teven seniors
and -eleven janiore. The fifth
'meeting of the seni01' gro111; Was
add .at the hoine •of Mrs. 12ary
,Mtingt011 on Wednesday evening•.
The; junior group held thein meet -
tog on Saturday mating at the
borne Of the leader, Mrs„, Belle
Note. Thenneetiaga opened with
4411 dub pledge- and the rig!
Call_Was answered by all reporting
on the progtess their eoetume
chart. Mrs. Male demenstrated
etay-litling. The gieW )0o110 work
W$35 the eatting out of blouses.
• euchre- Gem. -.-The ladiee 02 St.
Psturl Anglican Gitild beId A sue.
ees.sful euchre getne in the
Hall on Wednesday evening. The
*rt prizes were Wen 'by Mrs. Iterb
Stothers and Donaild Curran and
ieeond prizes b Mrs. Allan Reed'
ind Ntel $4wrt The ladies serv.
ed a tasty lunch and all enjoyed a
full evening of entertainment.
Annual Meting.—Miss4va Carr,
ss E. MCMillan and :Mrs. Herb
Stothers attehded the annual'.meet-
lug of the ;Maitland Presbyterial
W.M.S. which was held in St. An-
drew's Presbyterian Church, Wing -
ham, on Tuesday last with seven-
teen auxiliaries attending. Presby-
terial president, Mrs. 'Morgan Hen-
derson, of Lueknow, presided over
a well prepared program. The
Scripture, Matthew 5:142, was
•given by Mrs. D. Sutherland, lein-
careline, who refereed to the Ser-
mon on the Itfount as the pattern
of eihrist's life. Mrs. Jack Miler;
Lucktiow, led in prayer. Heir.
Alex Nimmo, minister of the
cherch, ,brought greetings from the
Hamiltoii Synod. 'Miss Iva Carr,
.Inutigannori, gave an inepiring talk
on '‘I-IietOrian."' Tribute to the late
.litra. It. iMeNtatinney war 'given by
Mrs. Ifendetson: being dead
yet" speaketh foe elic her') laid A
trukfoundation :for Christ's work,"
The Altailiertapre.sidents reported
an their avert activities. The math
discustione at the meeting Were
ofl Stewardship and 'whether wo-
• men. 8hou1d be ordained as whit
ietere Or be elders ef the church.
The dieettsaiot onStevearalfehip wan
Pae" who voiced her
*Wen on the'fillent God gave tte.
"Shetdd' Weltien be 'Ordanted fir the
Churehr wa 1d by Miss An
• 14crAchren, r,ounseI ler the ex-
eraitive. This question rt,Veti ptit to
a vote and is being sent on to
be added to the ,agenda of the
IVPaitland,,Pregbyterial on January
24. Tentative ,plans for further
programs in 1956 were discussed.
Refreshments were served at the
Close of the meeting. •
Mrs. Harvey iMole took a car load
of Public School girls to the code -
rich rink on Saturday afternoon
to enjoy a few hours' skating.
Township Man III. -,Bill .Wiggins,
a well Imovni and popular farmer
of Wavvanosh Township, took ser-
iously ill on Monday last and was
rushed to Wingliam hospital and
from there to the Toronto General
Hospital for diagnoais. At the
time of writing it -is uncertain as
to the nature of his illness, but
we ViSil him a speedy return to
health.
The annual meting of Erskine
Presbyterian Church will be held
on Tlinreday.
The Dungannon liublic School is
going to stage three card parties,
the first of which will be held on
Friday, January 27. - Notfee tell -
corning the other two will be given
later.
•,MiSS Bartera
Wilson, Oursedn-
tralnbtg at Victoria lloepital, Lon-
don, apent the week -end with her
pariente and brother, Murray.
Mr. and Mo. Mason McAllister
visited with Mrs. John Reid and
sons,eGardork mitre Stewart, on S.at-
urday..
We are sorry to -hear that 3/fr.
4borg6 Rutledge paced away la
Alexandra '1'4o/11e and General.
Hospital, ievoderieh, on Samlay last,
'Guests in the home of Mt, Ind
. ,
Letters to the _ Editor
The Signal -Star welcomes letters
on matters of public interest but
does not necessarily share the
opinions expresed in letters to
the editor.
Goderich, Ontario,
January 13, 1956.
Editor, Signal -Star.
Sir,—I am the father of five
children and have -been employed
with Ellis -Don Construction, of
London, for nearly two years. I
am, ,and have been for years, A
member of the Bricklayers union.
I have had no argurnenti of any
kind with this union since joining
it.
This union, like others, has a
local branch in each area across
the country. I at 'first belonged to
the London branch but due to the
fact that I lived in Goderich, and
Goderich coining under the author-
ity of Kitchener local, I transferred
to that, local. During different jobs
rwith Ellis -Don I came under the
authority of different locals and
had no trouble as I secured a work-
ing permit from them without any
argument as that is according to
the international rules of the
union.
On pecember 24, 1955, I finished
°teethe 'Wort House job at Gode-
rich and was told by Ellis -Don to
proceed to the Northern Ufa,- job
in London. I did so but was in-
formed by the business agent in
Loindan that I could not start to
work as they would not issue me
a Working permit. I then asked
for a transfer to the London local
and was told to do so under the
proper procedure. This I did and
for my efforts got one of the cold -
et receptions ever and was flatly
refused.
.,
Mrs. Otto Popp on Sunday la -et
were Mr. and Mrs. Lorne Popp and
babe, of Auburn, and IVIrs. Brian
Hallam, of Toronto.
Mr. and Mrs. John Ryan were
Sunday guests with Mrs. David Mc-
Gratten, Goderich.
Mr. awl Mrs. gheldon Baxter,
Garry and Norene, visited with the
lady's parents, Me and Mrs. Herb
Stothers, on Sunday last.
Min. Robert Stothers received a
Phone tall -from Mrs. Wilbur Brown
Saturday overtin. informing her
r5s,
that they were e enjoying the
Weather and ceunt ,,down south.
' Mission. Bani. — The United
Church 'Minion Band was held in
the church basement during church
terviee with 42 present. Marlon -
Mole gave the Olt to worship.
Edith Eleanor Alton presided at,
tlienPiano for the hymns and Mrs.
Herb Finnigan led in prayer. Lynn
Finnigan received the offering'and
Xaren Dawson gave the offering
ver. Pauline Anderson read the
minateo of the last Meeting. Billy
Blake gave the Scripttire verereand
aneryone repeated •ite Alta Irvin
gave a_._phatvoer -from the study
book; ' world Friends and the new
mite boaaa were giver! out.
Did I pay money in to this union
for years for nothing? Never one
since I joined it did they ever pro-
vide me with a job. I always had
to find m,y own emPloyment. In
this ease, I never asked for a je,
at I never was out of one.
wanted to do was eOntinue on with
my employer, Ellis -Don.
Some one should he forced to
eampeneate`, for the loss, of
wages ea ' my lay-off. We
are supposed to be living in a free
and demoeratic .eountry. When a
man has a family to feed and has
a job ad caprble and willing to
work and has broken ho rules or
regulations in the union he be-,
longs to, I honestly believe it to
be concrete proof that :we here
in Canada live under a lot of
false Elusions. It also leads me
to believe that the five years I
spent overseas in the last war was
just a waste of time and people's
money.- I now believe that we did
not defeat flitlerism and Fascism
but rather made it possible for it
to spread to this country.
To say this incident has dis-
illusioned me in regard to the
• future of this country is putting
it mildly. If a man, has ambition -
enough to find himself a job and
the desire to stick with that job
izi order to raise his family he
ould not be -held up. If my
_can,ployer's desire is to keep mc. on
the job and if both me and my
employer are told that I must go,
then out the window goes evely-
thing that was ever preached • to
us regarding democracy.
If b any chance the people who
tell Inc I must give up my job have
tele backing of our government in
regard to my case, then I would
think:that weshouldimmediately..
mil the WOrd democratic from its
title arid use some more appropri-
ate word such as one that is
pretty common in Europe at the
present time.
•JealittS DURNIN.
•
THE
TO
- BY
UPPER IANArtA BIBLE SOCIETY
-
Desenibed by some as -a "modern
mystiv," by others as "the most.
Christian man alive today," Dia
'Frank Laubach tilm,t to think of
himself es ciall -APostle to the
MitetAtes."
Claintingethat "Africa as well as
Asia may be turned to Cetrununism
in a few years" by this idealogy
which le "capturing them by lies
at the tate of 109,000 a year," Dr.
Laubach declares that bombs or
governments cannot'preventthe
peeples of the East
from "voting
Communist by Md." "We need a
new ,Christian strategy if we are to
save the world," he state.
"A war of human kindness" is
the strategy advocated. Teaching
people to read and .plaeing the
Bible in their hande In their own
language is his basic program. Dr.
Laqbach Ls teaching ipeople from
age 8 to 80 to read by an unique
chart Method and "Each one teaele
one" principle. They learn to read
in a week the simple story of Jesus
and the prodigal Son, and in a
month the ,Gosnel according to St.
John.
Dr. Laubach recently urged the
Bible Societies of the world to
111011.44m2s,...loriremasniusuise
supply his new readers with
20,000,00 mere Bibles annually
than tit presenttly produce- "To
bring teracy arid the Scripture to
these cede, 30,000,000 'Christmas
must 1be mobilized,"• he explains,
entp s izingethe necessity of every
Chrie Ian in the world assisting.
• On in a freedom, to enter tint -
tries here even missionaries are
exelud d Dr. Laubach says "the
masso W4.'ut. us, the govermeente
want us, but the Communiets are
beating us by spending $2,000,000,-
00,0,00 a year with promises in dull
books aiiLrnagazines Itinakes me
cry when. I think that the Chita.
tlan 'world eottlel have had the,
noneehriatien world 1004 a'4u."
Dr. A. R. O'Neit,,Generat Secret
tary of the BMA. and Foreign
Bible Soeiety in Canada, edatresse
ing officials of the Society, vecently
Toronto pointed out lbat,t'Cliria-
tianity is not primarily ianta-totall-
Italian, anti eay ittlr ideology,
tont_ it is a positive weit tife
IGod, and of necessity it Ibacomea
antietotalitarianism, antiiUW1Ler
opposed t ny other force that
prevents man from living this lite
alnmdant in Clod."
The Bible Seeleties are triving //
to Ivotifide the Bible as the basic
tool of the world literacy program.
Suggested readings for the ee
Sunday, Matthew 19:16-3%Mondo,
qYlattb,ew 2Qa}49; TliesdaY, IVIAtt“";
20:20134; Wednesday, Metthew 21:
1-22; Thursday, Mahe* 21: 23-46;
Friday, Matthew 224-22; Saturday,
Matthew 22; 23-46.
Sign Onl door of Manelage Ineense
Bureau: "Opt to limch—Thbek it
Over.'
? 7 THREE QUESTIONS
ARE YOU!! 1. k good salesmen? -
• 2. Between ages Mind 15?
• 3. Desirous of incr /ming your income?
IF SO: Here Is a sales oppeetunity, in Goderich and surrounding
area, that offers thellenge, immediate income an
exceptional future prospects.
FINTERESTED: Give full details, experience and references,
• addressing your reply to:
M. JACK VANCE,
Bde 64,
1-6 Guelph, Ontario.
Annual Meeting of Shareholders
The Royal Bank of Canada
Total Deposits
have now passed
James Muir Learns against
pace of cqnsumer buying
and tightness of markets
in commodities and labour,
Canada can ill afford luxury of group or
sectional parochialism. • Diverse -climates,.
cultures and economic interests. present
opportunities as well as problems in
achi ing national unity. -
Some of the enare,pre .prob:
lemse confronting Canada 'n 1956
were reviewed by James Muir,
Chairman and President of The
Royal 'lank of Canada, in his an-
nual addrese at the Annual Meet-
ing of Shareholders' held on Jan.
12 at Head Office. One of the more
important of theseehe felt was the
new, inflationary Peessure built Up
during the boom which character -
:3;g .19g, _,While_admitting there
ra 'Rene aireerenee-alWxiikiii
on the seriousness of the threat
posed- by the boom, he believed
there "are deerite danger signs,
not so much 'prices as in the
frantic pace of consumer buying,
business expansion, and the
general tightness of markets in
both , commodities and labour.
No modern banker will deny
the efficacy of wise central bank
icy in curbing inflation," be
eel "Indeed, experience shows
that .monetarypolicy is more
effective ,against inflation than
against deflation. But there are
i -dangers. As I have already point-
ed out, the policy may go ,too far.
It may also be unse1ectiveeeourb7
Ing healthy as well as unhealthy
or excessive bank credit. In ad-
dition, certain types of credit, and
these by no means the least in-
flationary, lie almost entirely out-
side the chartered banking system.
I should like to nominate two
candidates and posSibly three for
the attention of those -charged
with devising and administering
credit control on a selealie basis:
consumer ciedit; term loans by
banks; and (with caution) mort-
gage credit.
PROBLEMS, OF CREDIT
Jteaside, Ont.,
January 11, 1956.
Ilditor, Signal -Star.
Sir,—Enclosed find my cheque
Lor renewal of the Signal -Star.
We all enjoy your paper in our
house. We look forward to 1
every week -end. I, ipersonally am
enjoying the new "Women's Col
umn." 1 have my nephew, Don
Sandereen, staying with me and he
eagerly picks up the paper for the
sport page.
'We have 'been away from Go -de -
inch for eight years now but we
like to keep in bonen..
, Wishing youthe beet foe the
earning year. " •
Your,a truly,
IRErECATOIIP'OLE.
0
Depaleinee itelb inc theme's the
artiettlar Weasure in -having noth-
'kg to do. The fun ariges when
-ou have lots to do,and don't do it
6 °
tgirl xho keeps cashing ,for a
turband eaMplain When
Witalsx ttitt with a worm,
"Consumer credi0 or 'buying
on time' is an essential part of
our modern economy. But, like
all good things, it can be cArried
to extremes. For the individual,
to live in constant heavy debt is
to live in bondage; and the burden
of debt is usually the greatest for
those who can affgrd it -least; viz.,
those who need or are attracted
by `no down payment' offers. For
the economy as a whole, consumer
credit results in the .productiop
and sale of durable goods (a form
of longterm investment by the
consumer) without at the same
time a eorresponding Act of saving.
There need be no harm in this
provided the pOnsumer loan is it-
self financed but of saving — the
consumer then borrows in order
to spread his own saving over
time. But if a great rise in con-
sumer loans is .financed through
bank credit expansion we have an
expansion not of short-term, eelf-
liquidating credit but a long-term
loateoeld back only over a long
period and a consequent eipan-
sion of the money supply.
'Term loans by banks to cot-
paratiopa , and the purehase by
banks- -of eorporate,seriol. listp,d
issu are esimilar in effect to ap
exparigion of bank-finaneed
eon -
sumer credit, and May be more
serious in that the repayment
period may be longer.
"Mortgage loans by hanks are
a departure from traditional short-
term bank finanoing. Long-term
investment, this throe in a home, Is
financed without a correspon4ing
• ant of saving. As a device for ex-
panding home ()Wiling during -a
• period Of relatively slack trade,
• the NI14% programtie had many
• virtues. Rut with a return to nos -
Ind conditiona, cad later with a
reappearanee of,inflatiOnaltir pres-
sure, contintted .mortgage lending
by banks, together with the other
infigiOrtarY forces, undoubtedly
nsade contribution -10 instability
NEW PliiiLT-IN STABILIZER"
FOR UTURE BUDGETS
e "In all the excitement over
the switch to deficit financing,"
said Mr. Muir, "one extremely
important decision in the realm
• of fiscal policy went almost unz
noticed by the general. public.
This decision is all the more
important, because, finless or
zalktg, Wit -714A, .1.^--70141. .1MeAti
aalifY oletermitie the _overall pa
tent of federal budgeting for
years to come.
"in 'his budget speech of April
5, 1955, the Minister of Finance
said: . t
'I propose to reeonudend to
the „house a taxtpolicy and a
tax etructure that would pro-
duce a balanced-budget under
conditions Ilia represent a
high level o output and em-
ployment.'
"Now a high level of output
and employment is reflected in
-the 'figure that measures the
gross value qf our national pro-
duction oyer the year. The new
tax pollee- and. .tax structure
referred to by the Minister of
Finance is geared to thA gross
national product in such -a way
that if in any year the product
falls below a certain ideal level,
there will be an automatic bud-
get deficit. If the national' pro-
duct rises above this level, there
will be en automatic surplus.
And the ideal level of gross
national product is apparently
defined as the level that would
have obtained had employment
and the rate •of growth of the
economy been "normal" every
year since the base year 1953.
It may be open to question
whether this kind of built -i0
stabilizer will prove sufficiently
strong to produce the desired
• effect. It may prove too passive
to meet the crises that lie ahead.
It neay well be that the auto-
matic principle was adopted as
a device to ensure that fiscal
policy would at least not make
things worse; that it would at
'least be a neuttal faeteatifinlie
short run. MeanWhile, monetary
nolicir with its greatly superior
flexibility -could be taped .upon
to take -tate of short swings in
business activity and -employ-
ment, leaving longer run prob-
lems of economic development
and growth to the necessarily
slower adjustments through
annual revisions of the budget."
In the economy.
Mr. Muir inoted that the three
varieties of credit over -expansion
might soon become less serious,
due to naturiil Cause's and to the
effect of, policies now in force.
Home building and construction
in general would be effected by
seasonal factors; term loans by
banks andthe purchase of cor-
porate eecurities were no longer
practicable under present mone-
tary policy; and "control of con-
sumer credit does not lie primari-
ly fp the field of banking. War and
pot -war experience have shown
that this can be most effectively
handled byregulationat the retail
level, wit good will and coo era-
tioh betw en those who eztnd the
credit and the control authorities.
There should be nothing, therefore,
In these three varieties of credit
Over-extension that a litth3 nom-
Meleeenee, restraint, and co -opera;
thin cannot gniekly euro)'
CANADIAN -UNITY
While sound cettomie policy was
,
- $3 billion mark
K d M. Sedgewick, General Man-
ager; noted that not only had the
assets of the Royal Bank reached
t osing total of $3,284,143,-
t deposits had passed
the $3 billion mark, a new high
point in caian banking history.
$1,886,757,07 , approximately 61%
ly
"Ten yeaes o our eposits were
d
of today's figure, whereas theneotur
aepositors numbered 1,555,359- as
compared with 2,557,909 at the pre-
sent time." The bank's liquid posi-
• tion, he noted, gontinued strong,
total quick asset S of $1,918,'749,519
representing 61.24% of the bank's
liabilities to the public. "Oifr Rest -
Account has been increased. to
$108,01)0,000 which with paid-up
Capital of $42,000,000 and the.. un-
divided profits.balance of $918,000
odd mane...that the beak ranhat
T4p$01'5s-itr.10000:000:itilIlelitilea'°virer77roN'ngd‘'
Mr. Sedgewick noted that NBA
Mortgage Loans, made by the
Royal Bank, new total $100,
965 as compared with $22,674„3
the year before. "Other- current
bans also have shbwn expansion
in line with the higher general
business activity and the total at
$1,168,559,855 shows an blame
, of more than $137,000,000 in the
twelve-month period under review.
We are now, in common with the
other banks, co-operating with the
Government and the Bank of
Canada in carrying out a policy of
credit restriction designed to pre-
vent inflationary pressures. It is
important that the timing of any
variation in such a policy should
_ coincide accurately with changing
conditions within the economy."
Mr. Sedgewick also discussed
the bank's extensive building and
renovation programme. In AWL
tion to alterations and improve-
ments to existing premises, 39
new branches were opened in
Canada in 1955 and 2a new build-
ings, for °peeing this year or later,
are under constructibn. Branches
.anborwoadtotal. 851, of which 74 are
I ROYAL BANK ABRAM)
t
I.. The bank will also occupy new
and more commOdious premises
in Rio de Janeiro shortly and con-
sideration is birrg giv to further
expansion i the Carnal) .area.
Since the b iik began- eratioris
abroad nearl 60 years go, said
-Mr. Sedgewick, the 1 staff had
been encouraged t spire to senior
positions and s, he felt,- had
been a major ctor i the success
of the )bank's ,foreigil operations.
There was, he said a need for
Can,actians in the bank's foreign
sereiee and) as a consequence splen-
did opportunities existed in the
Royal Bank's' foreign branches for
any Canadinn young man interest-
ed in a satisfying and successfel
,esreer in international banking.
, Sedgewick paid aehigh tribute
The bank's staff, Which now
numbers well over 14,500. "We
are very ,pleased indeed to see a
growing number of young men
join our staff and Seel that they
hahaveaec, asattirdatyitirv.e sedoepewpoickrtu.nities
a factor in achieving national unity
and well being, said Mr. IVluir, the
development of a broad national
outleok and the avoidance of re- ,
gional and cultural parochialistift
were. also of paramount, impor-
tance. "The very divereity of re-
gional, cultural, and occupational
interests in Canada that creates
and aggravates our problem makes
unity an even richer prize than
would otherwise be the case," he
taneluded. "Ours will be a -unity
in diversity, with the attendant
opportunity to take f011est advan-
tage of the divisien of labour,
itself a product of diversity ill
culture, in individual talent and
skill, in group interest and activity.
firmly believe that this difficult
task ean lbe accomplished."
ne