The Brussels Post, 1957-01-23, Page 2ete
'tse'tkai4eA
CAN PRESENT CURBS HALT
INFLATION?
"There are at least two
sources of inflationary pres-
sure which the central bank;
with its present powers, will
find it difficult to reach," said
Mr. Muir.
"First, it is possible, even
with no increase in the money
supply, to increase the acti-
„ VitY of that supply by putting
otherwise idle funds into the
heeds of spenders through the
ordinary devices provided by
the capital market.
"Second, it is possible, with
no increase in the money sup-
ply, to increase the funds
available to businessmen and
consumers from sources other
than the financial institutions
ordinarily controlled by our
monetary authorities.
"In lsoth cases, we have, in
the classic phrase, an increase
in the 'velocity of circulation',
but the implications for pol-
icy are sufficiently different-to
merit separate treatment.
"It would seem to be at
least open to doubt whether
the present facilities and tech-
niques available to our mone-
tary authorities are sufficient-
ly wide in scope to deal with
present-day problems of cre-
dit control. The classical wea-
pon — upward movement of
interest rates, largely through
commercial banks — may by
itself prove an impotent pol-
icy. It may be taking too posi-
tive a view of a distant scene,
but it would at least appear
that, in order to be fair and in
order to achieve the best re-
sults, our monetary and credit
control may have to embrace
a wider area of our financial
world than it now dbes.
"A rigorous monetary pol-
icy has already enjoyed a
large measure of success in
the traditional area of bank
credit. Its over-all success
may depend in large measure
on the efficacy of the volun-
tary arrangements already
reached in the non-bank area,
or on the extension of credit
control by the central bank
or other organs of..egovern-
I./lent to include this increas-
ingly important source of
liquid funds."
r S T
/owl fal4a4 aptuvseeoli
Annual Meeting of Shareholdus
he R9yal Bank of Canada
Total Deposits
have now passed
$3 1/4 billion mark
Mines Muir questions if
Canada developing her
human resources as effectively
as her natural resources
Present teachers' salaries make decent living
standard impossible for those who train
and mould .character of youth. Effective control
of inflation may not be possible without
broader central bank powers.
"Dear Anne .1-liret' I am not
Asking, you how to' get, this boy
back — I don't think I want him.,
But I do want to know how .a
girl can tell whether a boy is
just feeding her a lines.
"I went steady with this boy
for two weeks, which I now
know as .silly, but • he declared.
he loved me and peerellSed the
moon and stars. Then seed-
Only it was over, He told me he.
just likes to date a girl 'eight.
Or 10 times, and ditch her. I have
learned since that this is true,
"Are all boys like that? DO
they just string you along until
someone new takes their fancy?
gitl can't like somebody she
IS, afraid to believe and . trust, I
am 17 but, honestly, I . am.. just
about fed up with boys.
DISGUSTED"
MALE BEASTS
* No, my friend, all boys are
* not like this one, but the
* species boasts a larger mem-
* tership than one likes to ad-
* mit. Full of conceit, they flit
* from one girl to another try-
* ing out various patterns to
* win favor, and they file re-
* sults with the smug comment,
* "That was easy." They are
* out for Experience with a
* capital E, and are not in the
* least concerned with the state
4 of a girl's heart as- they say .
* geod-bye.
Modern Plague
One of the strangest weak-
nesses of the human mind is sug-
gestibility. Coupled, as it Some-
times is, with, a tendency to ex -
hibitionism — and inordinate
craving for the spotlight —it lies
back of the fads, the phobias, the
manias, and the crazes that oc-‘
casionally teem to sweep a com-
munity or a nation, The two
join all too aften to push un-
stable thinking over into -be-
havior that ranges from the
criminal to the merely bizarre,
Let enough amateurs ape a
professional flagpole sitter, and
people begin roosting on flag-
poles, trees and steeples all over
the country, Let enough bobby-
soxers swoon over a crooner,
enough dowagers moon over a
matinee idol, some unknown man
get headlined as a "mad bomber"
and the country witnesses a
plague of swooning, mooning, or
bomb hoaxing.
New York. City has been go-
ing through a siege of bomb
scares, perhaps 95 per cent of
them only scares. And the hoax
suggestion has begun to travel to
other cities — Hartford, Con-
necticut, for instance.
But the plague hasn't been all
hoaxes, And that's what pre-
sents public safety officials with
a difficult problem. For the past
16 years over 30 "live" bombs
have been planted around the
city -- all bearing evidence of
the same crude workmanship. So
it has been imperlitive that of-
ficials investigate every "tip",
take every precaution, in spite
of the high percentage of false
alarms.
One additional obligation rest
upon them: that they remain cool
anemake as little fuss about it
as possible. This obligation rests
also upon all media of communi-
cation, and upon the public as
well. For excessive publicity
about the hoaxes is the very
thing that stirs up more hoaxers
—and, perhaps much more seri-
ous, the inflated egos of pre-
cariously balanced mentalities
which might end up doing actual
harm — From The Christian
Science Monitor.
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consists of a one-piece suit in
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of colorful print, with a match-
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UNSPOKEN THOUGHT
Bobby Bragan, the fiery ex-
Dodger who is now a master-
ful minor league manager, once
asked an umpire, "What would
you do if I called you a meat-
head, sour-pussed old crab?"
"I'd run you out of the game."
"And if I thought you were
all that but wouldn't say it?"
"I couldn't do anything."
Bragan stood silently for a
moment, looking straight at the
ump Then he said, "Okay, we
can now resume play."
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K. M. Sedgewiek, General
Manager, noted, that not only
had the assets of the Royal Banit
reached the imposing total 01
$3,571,298,320 but that depositi
had passed the $31/4 billion mark,
both new high points in. Cana-
dian banking history. While our
loaning policy during the year
was a restrictive one," said Mr.
Sedgewick, "in line with our
agreement with the Bank of Ca-
nada, yet the buoyancy of our
economy demanded that we ac-
commodate Many deserving cli-
ents with new or increased lines
of credit. For this reason, the
commercial loans of the bank in-
creased by $125,000,000 or just
over 10%." The bank's liquid
position, he pointed out, contin-
ued strong, total quick assets' of
$1,958,263,058 representing 57.86
per cent of the bank's liabilities
to the peblic. Capital Furl& now
stand at $187,701,633, represent-
ing an increase of approximately
$36,000,000 during the year."
"In spite of lower balances in
Government accounts of some
$45,000,000," said Mr. Sedgewick,
"deposits of the bank increased
by approximately $216,000,000.
The number of our depositors
grows steadily and we receive
much satisfaction in realizing the
high percentage of the country's
population who deal with us."
Earnings for the year were $12,-
467,268 after providing for de-
preciation and income tax. This
figure compara with $10,858,480
in the previous year.
Mr. Sedgewick discussed the
bankes extensive building and
renovation programme, a n d
mentioned that branches and
sub-branches operating in Cana-
da numbered 797, while those
abroad totalled 75.
ROYAL BANK ABROAD
"International banking on a
broad scale lees been a special
characteristic of the bank for a
long period," said Mr. Sedge-
wick. "It has long been our pol-
icy to select business carefully
and, as a result, the asset posi-
tion of our Non-Domestic
branches continues at a high
standard. For over ten years, a
special section of the bank's
Foreign Department has been
devoted to the development of
information necessary to ,those
engaged in trade, and the 'per-
manent staff of this department
is augmented by the flow' of
senior men between overseas
branches and Head Office." This,
Mr. Sedgewick mentioned, makes
the bank well equipped to ren-
der a specialized and essential
service to clients and others en-
gaged in foreign operations. He
stressed that in an organization
such as the RoyaL Bank, there
are always worthwhile oppor-
tunities for young Canadians
who have special aptitudes and
are interested in ,a banking ca-
reer abroad.
4' You served this boy as Ex-
• hibit nine or 10 in his book.
' Let the fact lie there — but
4' use it to your own advantage,
.4' To go steady with a boy
* you've known two weeks is
4 to set him on top of his world,
* a flattering but foolish- am-
* gettion. Immediately you are
* cut off from any other dates
automatically removed from
' circulation, If your next beau
* wants to go steady as soon, say
* "Oh, I don't know you well
* enough," and let him work to
* win whatever laurels you find
* he deserves. That will put him
* on his toes, and you will rise
* on his list as one girl that has
* to be shown, To fall on his
* neck at the first demand would
* be to identify yourself as one
* whose favors are had for the
* asking. That isn't good enough
* for a girl like you,
* Boys like to date the girl
* that other boys admire. When
* they see her around with soy-
* eral, they begin to wonder
* what secret attraction she has.
" Yes, every boy has a line,
* The smart girl lets him toss it
* out, nibbles at it with reser-
* vations — but she doesn't
* swallow the bait. Only when
4' he has shown he is dependable,
* considerate and someone she
" is proud to be seen with, is he
* worth ditching other boys for.
* Even then he should be on
" trial. * *
BRUTAL HUSBAND
"Dear Anne Hirst: I wonder
how many other wives dread
paydays in their homes? My
husband gets tight, and makes
-my life and our little son's a
frightening thing. Apart from
that, he spends more than we
r.an afford, and I am so worried
I don't know where to turn.
"My parents would take me
and the boy in, but I keep on
hoping that if I stay, my husband
will behave himself. Perhaps I
only hate to admit how hopeless
I am; he never listens to any-
thing I say, only resents it. Can
you help me?
SCARED MARY"
4' What you need is the pro-
* tection of the law. Your hus.
* band will not change because
* your pleas and tears; it takes
* a stronger will to handle him.
* So tell him now that next
e time he is so beastly, you will
" have him arrested — and you
* must mean it. He will shud-
.* der at the idea and swear it
* isn't necessary, but your threat
* may shock him into sanity. If
* it does not, go through with
* it, for his sake as well as your
* own,
* Could you depend on him to
* support you and the boy if
* you left him? Practical angles
* must be considered, and in
* your case it would not be fair
* to thrust the whole burden on
4' your parents. Perhaps a talk
* with the Domestic Relations
* Court is in order; the counsel-
* ors there will advise you as to
* the' advantages and disadvan-
* tages of divorce and help you
* all they can.
Every girl wants to be popu-
lar, and the first step is to make
sure a new acquaintance is worth
her time. It isn't the number of
boys she dates, it is the kind
she is seen with that counts.
Anne. Hirst has helped teen-
agers everywhere how to have
the fun that lasts. Write her at
Box 1, 123 Eighteenth St.,
New Toronto, Ont.
tinues the ban on term loans, as
well as its requirement, fully
effective in May, 1956, that char-
tered banks maintain second-
line reserves of treasury bills
and day-to-day loans sufficient,
with existing statutory cash re-
serves of 8 per cent, to establish
a' 'liquidity ratio' of at least 15
per cent of deposit liabilities."
WIDER POWERS NEEDED
Despite the effective measures
alteady taken, Mr. Muir felt that
there were at least two sources
of inflationary pressure which
the Central Bank, with its Pres-
ent PoWers, would find it difficult
to reach (see .box). "It Would
appear," concluded Mt. Muir,
"that in order to be fair and"
achieve the best results, our
monetary and credit control may
have to embrace a wicler•area of
our financial world than it now
does." The problems of Canada
today, he said, were the natural
problems of a growing ,ccientry
and of an economy that has great
potentialities for growth and, de-
velopthent.
chartered banks have co-oper-
ated within the broad frame:
work Of monetary policy to re-e
duce to --almost negligible' 'pro-
portions the net inflationary ef.
feet of chartered bank opera-
tions.
"Consumer credit continues to
expand, but consumer credit cli 7.
rectly or indirectly financed by
banks fell off significantly in
1956. For example, personal
loans by chartered banks fell off
during the second half `of the
year, ,while similar loans by loan
companies and credit unions
continued in 1956 the rising
trend established in 1955. Retail
consumer credit by instalnient
finance , companies rose . 'through
1956 to a new high, while char-
tered ,benk, loans , to aestalment
flriarice...companies, fell ,steadily
during, second half 'of the
year.
"These favourdeile e6tilts, so
far as chartered bank credit is
conterned,, were due to a mope-
, tary policy that kept the brakes
on the , expanding money supply,
thereby allowing market rates, of
interest to rise with the increas-
ed demand for funds.
"Iri addition, to overall policy
on money supply And money
rates, the Bahk of Canada cob-
The "depressed occupational
status"" of Canadian teachers, in
churches, schools 'ands Universi-
ties, and the dangers 'posed by
,our apparent ,neglect of those re-
spensible, for the, training and
building 'of the moral character
• 'of out yontli were emphasized
by James Muir, Chairman and
President of The Royal Bank Of
Canada, in his address at the
bank's annual meeting in Mont-
real on Thursday, January 10th.
"It is clear enough that the eco-
nomic reso'urce's at the disposal
of our schools and universities and
even of many of our churches
are insufficient to maintain ,de-
cent living standards for the de-
voted men and women whose
life work it is to train the minds
and develop the character of our
young people," said Mr. Muir.
"In this we are failing to make
the fullest and wisest use of key
human resources; we are failing
to give them a reward consistent
either with equity or incentive;
and we are endangering there-
fore the future welfare of our
whole economy."
CRISIS IN EDUCATION
"The present economic posi-
tion of the teaching profession is
an anomaly. The economic posi-
tion of all teachers has deterior-
ated, relative to other professions
of comparable training and re-
sponsibility, and relative to the
working force as a whole. Thus
the teacher today finds himself
in the same occupational "de-
pressed area" which he occupied
as long ego as 1776. With the
present disparity between the
salaries-we pay our teachers, and
the salaries we pay for compar-
able talent elsewhere, we can-
not expect to recruit or to retain
enough qualified men ,and wo-
men to maintain our present
teaching standards in our schools
and universities.
"Here then is a case where the
allocation of our human resour-
ces would seem to be unrespon-
sive to the ordinary operation of
the price mechanism. But this is •
only partly true. In fact, the sup-
ply of teachers is likely over a
period of time to be only too
responsive to the price mechan-
ism; the market will work only
' too well and we shall lose much
of what is best in our educa-
tional practice through the
spread of too small a staff over
too many courses and students,
and through the deterioration of
the staff itself.
"We as citizens must, through
governm ent, business, or indivi-
dual action ensure that our
schools and universities are pio-
vided with sources of funds suffi-
cient to attract, to retain and to'
replenish those human 'resources
of talent, training and experi-
ence that teaching requires."
INFLATION STILL THREAT
The continuing threat of infla-
tionary pressure, some of them
from new and unexpected quar-
ters, was also emphasized by
Mr. Muir, who expressed the
view that it might be necessary'
to enlarge the powers of the cen-
tral bank if we were to keep
under full control the forces
which threatened the integrity
of our money.
"It is now nearly fourteen'
menthe since the Bank of Cepa-
da came to real grips with the
problem," said Mr. Muir. "The
battle is a stiff and continuing
one, and victory has not yet
'been achieved. And in this bat-
tle, unenlightened selfishness is,.
perhaps, the. most dangerous
'misguided 'missile' combating
those Who :Would confine
tieriary fortes and preserve the
integtity of: our Money.
"The Bank of Canada and the
ISSUE 4— 1957
Our intelligence agents have
just unearthed news of the stin-
giest man in town and it's too
electrifying to , keep until next
Christmas. He's the fellow who
saves burned-out Christmas tree
bulbs and lets his thildren peer
through them on bright, sunny
days to save,, expense of buying
a string of bulbs which work.
for red lights at a railway , etoS,,
sings A Very long, freight train
was pulling into the station, ad
longthat when the fleet section
was iii the station the, middle
section bleated the crossing, And
`there it stayed: The time was
12 o6 arid ernplOVeee Of ati, in,
dustrial plant were on their way
home Ole lundh, The line-up of
cars got longer and longet and
could iitagitie the driiierii,
teething at, the 'wheel: The train
eventually went on its way
after nine or ten Minuted'
but, fudging by. the Otprettiiiii
fades, of :Most of the dri'ver's"
MUst have seemed like half an
tent, A ten Minute wait . ten
MintiteS, out of, twenty-fOlit'
houtScoUld it teally .haVelkiadi
Veit much 'difference?
member Of, their iletpective, fait,
{11°W'ell.• that deridludot-the story
Of 'etir'
teettlatjtiet a quiet; 'family .af-
lair, Now We' ate' Idoking .for'
ward to a VisiOrdiri
ledri ari nephew, Klenii froth
Oshawa, After that it will be
back to hernial living again—ae
least I hope it wilt be normal
,living. .
f.would like to think the tern=
iiie,of lift will be a little tlOWeri
a little ,quietcr in the New' Year
than it Wad,' befeit
But I ',;Suppose= that it, ,O futile
tope, But yet, we Eire sometimes
compelled to Ski* up' whether
hC Want to. or riot. I saw an
*Mee of this yesterday,. Driving:
'het& front town I had to stop
, bickering, rib petty jealousies, no
one thinking he or she was leOe
favoured than someone else: And
what a difference ,that, makes.;.
Unfortunately there are faiiiiiiee!
where etteh,e happy' relatienghlik
does not exist, A case In point
one ten will not visit his patehte
if the ethet Oen ie there because
the twa Vitire are net, on soak,
ing terms, Can you imagine'
More unpleasant situation for
the in-Other and father "who, to
Make Matters Worse, live in,
terriovvhat isolated .part of On.
tali°, An occasional trig, it, tit,
givable but a long 'term faintly'
fetid is, to nip' way of thinking,.
abseitaely stupid, selfish and
ttripardbriable, it triaket everye
One' thisdrable. not only the oar,
tics chiefly &Met:tiled but every
SOPHISTICATES — Now residents of what is reputed to be the
world's most Sophisticated city, Mama and Papa Llama, who'
hail from Peru, introduce their new daughter to visitors at thei
Viritentiei too, Paris, Ffafite.
Now I can tell the whole story
—I mean the story of Christmas
at Ginger Farm. I couldn't be-
fore because as you may know
this column has to be written
well ahead of time to be ready
for the Christmas and New
Year's papers. So now we'll
travel backwards in time for the
little odds and ends of domestic
upheavals that happened — and
some that didn't happen. The
first upset was about two weeks
before, Christmas when little
Edward took the measles. He
wasn't, particularly. sick — our
main worry was David. Was he
or wasn't he going to have meas-
les for Christmas? You can be
quite sure he was watched very
carefully—but . . no measles.
This is the. third time he has
been exposed to infection with-
out taking them so it looks as if
he has built up some kind of,
immunity.
The next problem was our TV.
I think I mentioned before it
went out of kilter—sound but no
picture—just when we were
looking forward to the special
programmes. Of course no one
had time to fix it. Then Bob
came along, worked on it two
separate days and got it., going
again without any new tubes Or
parts. But he still doesn'teknew
how Or why it works! -
Then came the story..e5,, Vette
stuffing. I was busy making ttled-
turkey dressing; had thee:Onions'
and celery frying in butter and
almost done when a man came
to the door—a Dutchman want-
ing to know where another
Dutchman lived. By the time I
had managed to understand what
he wanted and had given him
directions—which I hope he tin-
derstood—the onions and celery
were burnt to a crisp. Worse still
I had used my last onion! An-
other trip to town; Mord -Onione
and more celery to .thop and
cook.
Came Christmas Day . . ,
eryorie here and everyone happy
—except me. I was sure the
dressing would be uneatable and
the pudding a failure! But do
you ktieet they were both Ord-.
elitatly good. So Yeti see I toO,
worry about the thirigs, that
never happen,
After dirinet the. Cletietniee
Tredahci* no one enjoyed it
more than eeVeheiiiiiiiths' old
EdWatd., He sat. on the floor
among the wrappings and boxes,
cooing and chuckling to hirn ,
self. David, tit WeS thtile
led beyond measure.The gebeen-
tins too. were very well pleased
arid there. were frequent
Nations Of "Oh, look—just what
I wanted!" Partrier't present to
Me caused a good deal Of aintate.
Meat, It Wet a &Miser-bete*
ftying,.pant Appatently he Wee
tired of hearing complaints
.about lily old aluminum frYirig.
on 't'o which everything stock
elbeer than '6• brother*: So that
was one time when the squeak-1
ing wheel got Seine grease,
Altogether it was a most en ,
joyable Chtiatinea f 'particularly
as the Weather' Wee perfect fdt
travellihe se we hid lib worries-
about those on the hielievey,
other thitier.-41ro was such a
happy family Iselin; rid
a--12
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