The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ESTABLISHED 1839
In 2 Sections—Section
rk e
2
UNIVERSITY
OF MICHIGAN
1968
JUL 7
Financial
R«ff. U. B. Pat.
Conventicn
Number
New York
Office
7, N. Y., Thursday, July 3,1958
Price
'
•
"."s
'
-<>•*,
r j"'*r
r
*.i
»
50
Cents
a
Copy
THE
Mi
COMMERCIAL and
Thursday, July 3, 1958
FINANCIAL CHRONICLE
§
ram
jC
f.
;c
1
l
INVESTMENT DEALERS'
OFFICERS 1958 -1959
V
Gundy
VICE-PRESIDENT
Frank
Andrew S. Beaubien
Edward H. Ely
Wood,
VICE-PRESIDENT
VICE-PRESIDENT
PRESIDENT
Frank
&
J.
Brennan
F. J. Brennan &
Company Limited,
L. G. Beaubien &
Co.,
Co.
D. Lace
Matthews & Company
Limited,
Limited, Montreal
Toronto
Ltd., St. John, N. B.
Toronto
SECRETARYVICE-PRESIDENT
VICE-PRESIDENT
VICE-PRESIDENT
1
James
Richardson
J.
Allan H. Turney
Norman J. Alexander
Co.,
Sons, Winnipeg
M,
McAvity
W. C. Pitfield &
Locke, Gray &
&
Company, Limited,
Calgary
TREASURER
J.
A. Kingsmill
Investment
Dealers'
A,
Association
Vancouver
Canada
t*N.
PRESIDENT
Harold S<
Backus
McLeod, Young,
Weir & Company,
Limited, Toronto
HONORARY
HONORARY
HONORARY
TREASURER
VICE-PRESIDENT
.
Gerard Gingras
Rene-T.
Incorporee,
.
Leclerc,
Montreal
Dudley B. Dawson
Dawson,
Limited,
Hannaford
Montreal
i^r^irsvirrsvi^viirSYi
of
Convention Number
THE COMMERCIAL and FINANCIAL
CHRONICLE
Notes
^
the Canadian
on
The members of the Investment
Dealers' Association are the dis-
tributors of
in
investment
Canada.
that
aware
would
the
be
dian
to
such,
they
President, Investment Dealers' Association of Canada
are
it
in
Head of Canadian investment dealers believes low
point in Canadian corporate
Cana¬
a
larger
propor¬
of
Can¬
ada's
debt
longer
approach to the
in
materials for
term
dis-
-
securities
tributed
broadly
to
Cana¬
private
dian investors.
This
growing world demand.
structure and
feet
ef-j
the
R.
H.
not
term
Government
bonds, but would also help to
effective
more
any
pansion phase
of the
control the money
A
study of the
debt
half
new
to
billion
one
dollars
is not
that
of
government,
and
the
net
debt
position is therefore roughly in
the
Canada,
a
the
new
issues
redemption
on
of
in April and the
outstanding issues
May 1 of this
This
year.
com-
pares with the Jan. 1, 1948 figure
of $16,144 million and shows
a
by out¬
decline of 8.67%.
standing securities has changed
It
is interesting
to note that
considerably in the last 10 years.
Canada's direct debt now amounts
Not only has the debt been re¬
to about $873 per capita, which
duced in size, but the proportion
of the debt in the form of market¬ compares with a per capita figure
of $1,259 at Jan.
1, 1948. During
able securities in the hand of the
this
same
10-year
peripd, the
public has aiso been reduced. This
Gross National Product increased
has taken
place during a time
from $1,074 to $1,839
per capita,
when the Canadian economy has
If the direct debt per capita had
undergone considerable expansion
remained unchanged during this
in terms of population, production,
period, Canada's total direct debt
incomes and savings.
tion.
There
nomic
is, therefore, from
point of view,
believe
support
that
a
increased
*An
could
not
The
of having
direct
roughly
debt
at
equivalent
the
debt
1957's
this year by from
one-
whereas
Gross
to
47%
National
Jan.
at
present
1,
is
of
Product,
1948
it
The
debt
by Mr. Dean before the
of Investment Dealers'
Canada, Manoir Richelieu,
Canada, June 19, 1958.
Meeting
About 25%
proportion
in
the
of
securities
sees no
and
on
of
direct
five
over
bills
has
increased
time from 2.78%
to
during this
11.02% of the
direct
and
eral
drop
in
dollar
holdings of mar¬
the
securities
the
in
was
Canadian
other
than
non
-
To
some
or
17.6%
of the total
against $1,440 million or 8.9%
the total at Jan. 1, 1948.
When the non-marketable
rities
to
Savings Bonds outstand¬
ing should be added to the
ketable
Cana¬
securities
held
reduces
over
to
five
need to be
governments,
a substan¬
tial drop in the combined
holdings
(Of these securities as reflected in
guaranteed
debt
Table III.
An
apparent
reduction
of
securities
Public
held
other
by
than
and
governments
ing
a
period
General
corporations
took place dur¬
when
in Canada
the
personal
were
then find that the Gen-
P°sits with the chartered banks
Public's
analysis
Canada
further
Continued
holdings of market-
on
page
FIRST
CANADA
se-
40%,
which
shout
1, 1948.
Distribution
of
the
^HAaW
Government's
Direct and Guaranteed Debt
Available
statistics
of
on
Canada's
the
dis¬
debt
inT
eludes both direct and guaranteed
Incorporated 1932
OPPORTUNITIES IN CANADA
Calvin
Our
facilities
industrial
suitable
can
be
of valuable
assistance to those
development of Canada and of benefit
investments
interested in
to investors in
Bullock, Ltd.
507 Place D'Armet
the
Montreal
selecting
through which to participate in Canada's assured
growth.
Nesbitt, Thomson
FIRST
Company,
and
Limited
(
Members of The Investment Dealers' Association of Canada
Head
in the
principal Cities of Canada
Nesbitt, Thomson
Members Montreal Stock
Exchange
Canadian Stock
Nesbitt, Thomson
IN THE UNITED STATES
Office: 355 St. James Street W., Montreal
Branches
25
Broad Street,
140 Federal
—
&
Co.
Toronto Stock Exchange
Exchange
and
Company, Inc.
New York 4, N. Y.
:
Street, Boston, Massachusetts
Incorporated 1952
Direct
New
wire
connections
between
Calvin Bullock, Ltd.
York, Montreal, Toronto, Ottawa, Hamilton, Kitchener,
London
(Ont.), Winnipeg, Calgary and Vancouver.
i
£
One Wall Street
:
wsvt
in¬
increasing
with about 70% at Jan.
compares
$582
million of Government of Canada
from $10,390 millions to $22,855
millions, and while savings de-
IN
in term
there
would still .be indicated
secu-
years
the
General Public other than corpora
ations
and
of
debt, the proportion of
curities of
mar¬
by
excluded from the total
are
direct
as
ex¬
Savings Bonds held by
However, if all. the
marketable securities repre-
lion
those
General
corporations
A much larger proportion of the
direct debt is now in the form of
sented by Canada Savings Bonds,
which now amount to $2,596 mil-
1,
1948
1,
Savings
our
excluding
we
of
Jan.
with Jan.
governments.
comes
Carrying
Bonds,
at
individuals.
securities.
and
A
holdings
drop has been offset by
the increase in the last 10
years of
The
foregoing table shows a
drop of over $2,000 million, or al¬
most 20%, in the General Public's
holdings of Government of Can¬
ada
10-
33%.
tent this
debt.
A comparison of such dis¬
tribution at Jan. 1, 1958 with that
at Jan. 1, 1948 is shown in Table I.
direct debt.
tribution
of the direct debt is
Direct Debt
in term has decreased from
about 72% at Jan. 1, 1948 to about
50% at the present time. The proportion
in
short-term
treasury
was
Gross National Product.
of
$11,000 million.
of
years
equivalent to about 117% cf 1947's
address
Association
Quebec,
to
no reason
Canada
i)Mi?ver $21 b*1}*011'
^lUl?6y2 blUlon greater than at
present.
an eco¬
higher public debt, and
prospect
Annual
represented
of
Term
including
bills, amounts
at
the
present time to about $14,743 mil¬
lion. This is after giving effect to
Canada-wide distribu¬
debt
order
'
treasury
Govern¬
easily pos¬
sible, provided the incentives are
present that are necessary to ef¬
The
premium
of
by
secu¬
the
Table II.
largest
Public
billion dollar rise in government debt.
one
represented by assets held by the
The total direct debt of the Gov¬
ernment
only desirable but is
a
half to
Direct Debt
ment of Canada bond issues is not
fect such
a
alarming.
to
economy
supply.
broad distribution of
held
ren¬
measures
indicates
a
dollar; and detect lessening in inflationary forces and
alarmed about
structure and
distribution of- the Government of
Canada's
The
favoj^l
policy high enough
these
compared
Canada
dian
that may be taken in the next ex¬
securities
ketable
in
about
marketable
Canada
savings and capital in-floW and yet not induce
by
of
tion of guaranteed mortgages;
supports interest rate
Canada
of
period
broader distribution and lengthening of government
debt, and broader distribu¬
encourage
Dean
only
of improving the market for
long-
the
country's public debt;
year
decreased
breakdown
amount
Mr. Dean analyzes the considerable
distribution of his
were
1958
expansion phase requiring increasing output of basic
would
have
der
a
changes in the
next
rities
appears in
profits and output has been reached and that economic activity will rise at a
gradual rate—supported by housing and governmental expenditures—in its
economy
have
tion
able Government of Canada
Nesbitt, Thomson and Company, Ltd., Montreal
securities
interests
the
of
As
Economy
By R. H. DEAN *
New York
10
THE COMMERCIAL and
Whom?
Who's Fooling
.
(3) Profit rests basically upon
productivity and productivity on
competent people.
By A. E. WALL*
We are
engaged in the most
challenging
the most worth
while, and the most satisfying vo¬
.
Thursday, July 3, 1958
FINANCIAL CHRONICLE
Agencies
Confederation Life Association, Toronto, Canada
Vice-President in Charge of
.
...
....
.
.
..
,
•
.
,
.
We
,
our
the
are
ones
who make
the
wheels
salesmen
pointers on selling, and underscores the economic contribution' made by sales¬
Before he discusses three different personality roles a salesman should
adopt and six faults he should avoid, Mr. Wall examines what makes a coun¬
try grow and warns against the fallacies of emitting more dollars as the way
to solve our economic problems and of pricing ourselves out of the domestic
Wall,
Mr.
of
industry turn,
create and
we
an
experienced insurance executive, offers investment
soundly
control mar¬
responsible for
tremen¬
dous
progress
and
develop¬
v
ment of our
and export
/
North
can
duction, investment and consump¬
tion under which private individ¬
uals and basiness firms, largely of
their own initiative and responsi¬
the
on
Ameri¬
.
through
a sys¬
enterprise, the highest
of living, the greatest
tem of free
standard
we
security for individuals as well as
the happiest and most interesting
of lifQ in the world. Our re¬
search, our growth, the develop¬
ment of our professions, the chal¬
way
of our school system, the
pattern of our religious life, the
obligations of our social life
in short the finest democracy the
world has ever known—these are
the accumulated results of sales¬
lenge
manship in all these areas. Every
salesman carries prosperity as a
side-line.
salesman¬
sound
and
ship has had a major role in our
economy, not only in the main¬
tenance of our present standard of
living but in the further develop¬
ment and expansion of our present
way
for
of life. Upon salesmanship in
the pros¬
its broad aspects depends
perity of the future of Canada and
the United States.
Markets both
present standard of
living is dependent on productive
home and abroad are essential to
efficiency — we shall not continue
our continued progress.
Our free This in turn cuts down the demand on the healthy highway to prog¬
of
living or become fearful of the
future, they slow down on both
spending and
investing money.
ment
of
our
as
great
cost.
a
Free
tems, providing more people with
security. Capital makes this
possible.
Capitalism puts m a more
of the enter¬
chines in the hands
individual,
prising
hands of the state.
our
not
in
the
Security sales¬
the advanced
are
men
agents for
economic society of tomorrow.
that
is
invested
efforts and rein¬
continuing contri¬
Every client you find and
dollar
Every
through
your
vested makes
bution.
a
persuade to invest his savings be¬
comes
automatically a capitalist
in his or her own small way. Each
one of them has more of an inter¬
est in the future of our country,
in the resources and the develop¬
ment of
our
country than ever be¬
fore.
requisite for top-notch
is a sound sincere
product or service
that you have to offer and the
knowledge that the product or
The first
salesmanship
in
belief
service
present way
You understand and be¬
individuals to
at so
won
ers
enterprise out produces other sys¬
ing power.
,
Creative
.
.
your children
and
their children what our forefath¬
ployees willing and anxious to give
provide more purchas¬ full value for their day's pay.
dollars in the hands of con¬
sumers
in¬
securities, you are putting dollars
to work
you are helping to
markets.
Such inflation only
(3) Efficient and dedicated man¬
does this to a small degree and agement organization and methods.
reaches a point where the results This brings it down to each one
bility, make full use in their com¬
munities of the labor skills, man¬ are disastrous both for the indi¬ of us individually.
This
agement
skills
and
capital to vidual and for the nation.
We will start back up the road
produce the bulk of goods and type of history has been written to not only full recovery but a con¬
services that men want. Salesman¬ in blood for many nations over
tinuation of our progress towards
ship is the power and the ability many ears. Increased purchasing much greater prosperity once every
only come from in¬
to overcome complacency, to stir power can
man and woman comes to the con¬
creased production. Until we real¬
up dormant or vaguely felt wants
clusion that
whatever work or
in people, to create the desire and ize this and do something about it,
responsibility they have, it is their
ambition for a fuller more satis¬ we are headed for trouble and we
individual challenge to work as
factory, more efficient and more will get further and further away efficiently, as productively and as
enjoyable life, including all the from the resumption of our climb
creatively as they possibly can
products and
services that go to further prosperity.
during their working hours. Then
Labor costs per unit of output
along with such a developing scale
and then only when our job is
in manufacturing have risen con¬
of living.
taken very seriously will we both
stantly over the past 10 years. We
nationally and individually begin
Two Problems to Overcome
in Canada and the United States
to realize our potential and ac¬
We must always remember that are slowly pricing ourselves out
complish our overall goals.
of not only our export market but
we are on the verge of a recession
As investment men you must be
at all times. Relax the pressure on our own domestic markets. Until
thrilled with your overall contri¬
people not to better their lot, to we realize that greater production
bution to our modern way of liv¬
improve their standard of living is the key to national and individ¬
and our expanding economy slows ual prosperity and until we take ing, both from the angle of your
business in general and also from
down. As soon as people become more seriously the fact that the
the viewpoint of your contribution
satisfied with their present scale maintenance and further improve¬
Wall
E.
A.
continent,
more
requires
amounts of savings in¬
vested per individual.
We today
are living on an island of free en¬
terprise, surrounded by socialism
and communism.
When you sell
preserve
We have
built
future
creasing
modern way of
life.
Savings Needed
More
Sees
Canada's
man.
kets which are
the
(4) Therefore to a large extent,
present standard of living rests
on
past investment ac¬
tivity.
■■
....
.
cation in the world—salesmanship.
the
is
real
of
value
both
to
the individual who purchases and
our
al^o in making a contribution to
a
wider progressive and rapidly
terprise capitalism, which you are developing Canada.
Always re¬
member
therefore that selling is a
has
been
the
main
in¬
providing,
enterprise system is one of pro- and as a result production lags. ress that has marked our develop¬
The sales
ment
over
the past few years. strument in giving us the highest two-way relationship.
There is a very dangerous and er¬
♦An address by Mr. Wall before The
Greater productivity is dependent standard of living both material must benefit both your prospect
Investment
Dealer^' Association of Can¬ roneous feeling, even a belief, in on many factors, the most import¬ and moral, that the world has ever and yourself, otherwise a continu¬
ada, at Manior Richelieu, Quebec, June
known.
ing relationship cannot exist. "Put¬
many
quarters that by putting ant of which are:
19, 1958.
ting over the deal" may give you
(1) Sufficient capital for further
(1) Capitalism rests on the im- "an immediate buck" but fi it does
of
life.
lieve thoroughly
I'm
sure
that en¬
t
development and to supply additional technological improvements
and
In
Step with
expansion.,
-
petus to risk accumulated savings
in the hope of making a profit,
your
prospect,
Continued
economic activities of our society.
on
CANADA'S PROGRESS
7he
current and future
manding yearly
a
prospects of Canada are com¬
greater and greater interest on the
part of American investors.
That is
why American Banks, Brokers, Dealers and
Institutions find it so essential to have ready access to
every current
Such data and information is
this
organization which has
success
the
in
From the offices
Pitfield & Co.,
Orders
address
or
always available through
long-standing record of
a
financing of Canadian public utility,
industrial and natural
nections with
of
Inc.,
our
corporations.
resource
our
THE
York affiliate, W.
New
C.
maintain private wire con¬
in Canada.
we
branches coast-tp-coast
inquiries will be dealt with promptly.
inquiries to:
Plea\e
30 Broad
Street, New York
.
•
Halifax
Company
Saint John
•
Moncton
Quebec • Ottawa • Cornwall 'Toronto • Winnipeg
Calgary
•
Edmonton
•
women
about conducting
Vancouver
■
y
-
,
-v
^
x."'
•
financial transactions
Nova
Scotia with more
than 500 branches in
Canada and abroad
Bank
offers you
York
of
and your customers
Office
a
the
or
Toronto—will
With
in Canada.
enquiries about Canada and the
the New
current financial situation—at
be
branches
General
answered
Office in
promptly.
on-the-spot, BNS is in
position to give you the up-to-date
information
complete
you
and your
clients
re¬
quire when doing business in Canada.
banking services.
Scotia publishes an authoritative Monthly
discusses matters of current Canadian eco¬
nomic interest. If you would like your name added to the
mailing list, please write or call any of our offices or branches.
Dealers' Association of Canada
•
S. investors . . . men and
who want accurate information
of many U.
Your
Review, which
LIMITED
Members ofthe Investment
the active interest
The Bank of Nova
Telephone: HAnover 2-9250
W. C. Pitfield &
NATURAL resources of
VAST
Canada have aroused
The
r
W. C. Pitfield 8C Co., Inc.
Montreal
Business
in Canada?
fact about Canadian securities.
Victoria
The BANK of NOVA SCOTIA
for 125 years a partner
New York Office: 37
Wall St.
in helping Canada grow
Chicago: Board of Trade Bldg.
General Office: 44 King St. W., Toronto
it
is
The im¬
portant job of any salesman is to
(2) Profit makes possible all the
,
(2) Interested and capable em-
benefit
not
harmful to both of you.
Ontario
page
13
Convention Number
THE COMMERCIAL and FINANCIAL
CHRONICLE
Building
I
am
very
opportunity
5*
Growing Future ?on Solid Ground
a
pleased to have this
of addressing the
By HON. DONALB M. FLEMING*
,
personal income and
Canadian Minister of Finance
members of the Investment Deal¬
mand. The
increase
ers' Association of Canada at their
Annual
ing.
Meet¬
For
Canada's finance minister:
the occasion is
most
tune
recent
it does im-
as
mediately
the pres-
upon
entation
et and not
long
before the
oc¬
casion
the
of
next
public fi¬
Hon.
D.
tion of investment
M-. Fleming
dealers, Bank of Canada and
of government
policies and activities
the
on
of the country under modern
tion and execution of debt management for
conditions and the size of the fi¬
billion.
to
have
I
am
control of their
it
which
includes
firms
than
more
operating
has
the work of
educational
programs
have
done
much to spread the habit of
sysyou
sponsor
tematic saving and investment by
individual Canadians.
beginnings has grown until
now
resources
on
Finally, and by no
the strenuous and
least,
means
substained
formed in 1916, and from
member
own
focused attention
your members.
that your Associa¬
aware
was
modest
fully in the ownership and
more
true in days when resort is had to
deficit financing to meet economic
conditions.
,
The
200
Budget is still
mind, if not in
in my
nearly
haps
fresh
very
Perwould be interested to
you
yours.
tion of this
performance
other
Budget
of
but
their
in
important
They have demonstrated an exemplary devotion to
public duty and have worthily
maintained the highest traditions
shares.
Budget conferences with the offi-
should confine the review to
cials
of the
ards
of
conduct
high stand¬
and
financial
of
the
Department
of
in
responsibility
hundreds of tax, tariff and fiscal
I believe there is
nance
respect
well
nance
rounded
capital market in
Your efforts during
this country.
the war in connection
promotion of
of
savings
a
wide
bonds
with
the
attracted
wide
ing desire of Canadians to share
*An address by Mr. Fleming before the
Investment Dealers' Association of Can¬
Manoir
June
19,
Richelieu,
on
Quebec,
Canada,
mind
at
the
problems
distribution
attention. More recently, the grow¬
ada,
the
to
every
can never
of
the
Minister
stage of
Budget.
The
of
the
Fi-
The
work
which
technical
the
are many.
This affords
me
a
and
for
the
most
service
they
had
true of
begun,
housing.
The expansion of housing investment had come to an end in the
0f
some
the
connected
pressures
high level of domestic
investment
The converse of this
economic
forces
in
economic
activity.
At
all
three.
fleeted in
a
in
crease
declining rate
job
spite these conditions
£ore
people
at
there
w0'rk
in defense expenditures.
Transeconomic fer payments
especially rose rap-
of
increases
became
in
the
have
business
ended
the
capital
year
-
March
of
1958
employment
Continued
on
•
in-
on
a
\
Underwriters and Dealers in
Dominick Corporation
....
I
1
All
i
!
JAMES
of
Exchanges,
u
The Investment
I
/
J
-
Dominick
J
14
COM PLETE
&
Dominick
WALL STREET.
NEW
YORK
FACJL I T I E S
¥
W'
of Canada
I
t
t
v£
FOR
;
AND
CANADIAN
'
Members
STOCK
' TRADING
BOND
New York Stock
Exchange
American Stock
Exchange
's,J
's/7.
'"A
1
M
Toronto Stock
/I
i
f
£
§
1
■l
l
James Richardson
&
Sons
II
w
$
0
»
1
ESTABLISHED'1857
EXECUTIVE OFFICES
•
WINNIPEG
1
1
%
m
OFFICES
FROM
MONTREAL
TO
VICTORIA
i
■] '
private wire with
%
Dealers' Association
_
Canada
STREET WEST
If!
Commodity
i
%
i an
%
leading Canadian
Stock and
ST.
MONTREAL
<
■/A
t
fay
if-
360
_
:
A,
The
gressed and in January, February
and
United
■
Although
vestment
each
com-
the preceding year
smaller as the year pro-
change
during 1957 was
importance of
capital investment as a
occurred
Dewere
over
the
States.
in
monthaTear earlilr
■M
MEMBERS
dur-
of in-
opportunities
levels of government they rose by
month 0f 1957 than in the
almost 7% despite some decline
m
P
capi-
the
Canadian Securities
I
our
these1ifemT help^diniS0rt(f^escape
important
decline in
ment
I have
gratitude to
them
was
it
dynamic force in our economy,
particularly investment in our re^
source industries.
A somewhat
larger decline in capital invest-:
portunity of paying tribute to the
faithful officials of the Department of Finance and the
Department of National Revenue.
the deepest sense of
reverse
than
financed
of
emerged
business
welcome op-
rendered not only in the prepara-
1958.
was
ac¬
$1.4
early 1957 was the
heavy imports of ma¬
chinery, equipment and industrial
afte? idly and for the latter half of the
1955 and
imDOrtant elewas straining year tney were an important de¬
our resources of men and mate- ment in sustaining and increasing
rials despite very large borrowing
abroad.
'
\v -
aspect of the
be absent from
any
slow-down
the excessive pace
1956, a pace which
imperative necessity of preserving the strictest secrecy with
Budget
salient features.
more
S°me
The
increasing
an
some
,
questions, and finally came the
drafting of the Budget Speech,
in Canada of your con¬
tribution to the development of a
awareness
1956
result
nomic forces in operation, as I private lenders.
see them, during 1957 and the
Government expenditures conearly months of 1958. Today -1 tributed to the maintenance of
Fi-
your
ment securities.
This deficit
to
.
many
and the Department of National
Revenue
reviewed
many
on the part
of
members and thus to earn
public confidence. I recognize the
very
important role which you
play in the marketing of govern¬
current
on
amounted
some
underlving
specializing in highly speculative
for your insistence on
1957
middle of 1956 .when the keen situation is that the
decline in
competition for loan funds re- investment
in
machinery
and
suited in a shortage of mortgage
equipment has fallen to a very
money and brought about a deconsiderable
extent
on
imports
my indebtedness to the officials cline
in home-building.
During which have shrunk markedlv in
of
the Bank of Canada for all 1957,,
however, the competition the last few months
their assistance and expert advice, for loan funds became less active
j
h
reviewed
the
main
I Place a very high value upon as the year progressed and, more
chances in
thve ^treneth of the
their counsel, as you would expect, important, in August and again
tax problems were
to be commended
the
note
a
invest¬
securities, as in the previous year,
were the major source of external
capital. A good part of the rapid
rise in imports which took place
better Canada.
weaker
1957,
In my Budget Speech Tuesday in December government funds in
1957
The reduction
of
the
evening, June 17, and in the White a total amount of $300 million prfssures*
and
demands
which
Paper which I tabled in the House were made available to augment
characterized 1956 led to a mood
of Commons on Monday, June 16, the loan funds supplied by insur- of
greater cauti0n with regard to
I reviewed in detail the eco- ance companies, banks and other ne£ capital
ventures and was re-
something of its preparaemploying some 7,000 people. Your tion. The detailed work of premembership embraces substan¬ paring the Budget occupies ten
tially all the firms in Canada en¬ weeks. During that time many
gaged as principals in the un¬ delegations
were
heard,
many
derwriting, distribution or trading briefs were studied, hundreds of
of securities, other than dealers letters
requesting consideration of
are
again in
of
our
of the Canadian public service. I
should like to acknowledge also
know
perused,
the
duties.
500 offices from coast to coast and
You
part
materials connected with
requirements of govern¬
brought the Govern¬
ment, its fiscal agent the Bank of
Canada, and the investment deal¬
ers' profession into very close re¬
lationships.
This is particularly
tion
and
extent by direct U. S. in¬
vestment in Canada but sales of
partnership in formula¬
a
in
count
nancial
ment
family allowances.
1956,
abroad. The deficit
government and asks for
constructive criticism and suggestions to achieve full
econ¬
in¬
ment program was financed from
financing will be done through the banking system and will include
to help lengthen
average term of public debt without unduly burden¬
ing longer-term market. Mr. Fleming calls for continued splendid
coopera¬
influence
omy
In
substantial
efforts
nancing effort.
The
creased
deficit
Government's
greatly
allowances and pensions, and in¬
re-financing of maturing marketable debt of $1.9 billion will necessitate total
financing of about $3.4 billion; and (4) emphasizes that only a minimum of
of
first budg¬
my
recession; (2) bases his
GNP will be
following
de¬
ployment Insurance Fund, larger
payments to the aged, the blind
and the disabled, larger veterans'
revenue forecast on the assumption that 1958
2% higher than 1957; (3) anticipates that the budgetary and
non-budgetary net cash requirements for this fiscal year of $1.4 billion and
oppor¬
the
creased payments from the Unem¬
(1), perceives hopeful signs indicating the end of
me
consumer
largest elements in this
were
Exchange
page
19
THE
6
COMMERCIAL and FINANCIAL
A New Britain—A
in
volume
disease
old
and
is
very different.
The real pic¬
of
her
exports
as
com¬
growing
stronger when stronger
are weakening.
currencies
of
Hon. Lord Coleraine
Britain today is no longer the
buoyant, vig¬
greatest exporting nation. There
orous, adaptable and of a people is one greater—the United States,
loyal to itself and united, as the with three times the British popu¬
British people, beneath the sur¬ lation.
The
United States does
face, have always been.
25% of world trade in manufac¬
Britain entered the first World tures. Britain, with a third of the
War as the greatest creditor na¬ population, does 20%. The United
tion in the world and the greatest States exports $60 per head of the
She
nation.
exporting
emerged
World War not
the world's banker but as the
from
as
the
second
with
bankrupt,
export trade
and with
coal and
an
which had disappeared,
the
exports,
traditional
cotton, in a state of permanent de¬
cline.
Today, thirteen years
finances
Britain
the
the
doubled the
talk
a
by
Investment
Canada
held at
later,
Lord Coleraine be¬
Dealers' Association
annual meeting
Murray Bay, Que., June 20, 1958.
♦From
fore
of
40%
world's trade. She has
of
at
solidly remarkable recovery by Great
a
Empire
42nd
the
Britain
as
a
of
proportion
national income are nearly
the
savings in the United
Productivity
at a
any
country save the
and Sweden.
power
and British
the expression not
strength of Britain.
the
expression cf
With
order.
world
sea
which
faces
power
twice
States.
United States
It is increasing more
the
world,
peaceful application of
Products and
The idea that
agreed
with the Canada, Britain and the Common¬
Commission that diesel wealth, the United States and
locomotives
should
15e manned Europe. But Canada with its roots
Industries
only by a single driver
out
Britain is an old
who
today is a young
,
fireman.
cial
the same. One
has, with Britain, a unique and
trail.
men
continued use
diesel
on
and
in Britain that
practices are to be found.
has been a
is
something
Municipal
Montreal, Que.
Toronto, Ont.
Winnipeg, Man.
Quebec, Que.
Ottawa, Ont.
Calgary, Alta.
St. John's,
Helping Hand
plans for your little boy — for his future and
security. There are many ways that life insurance
can
help you and your son realize these plans. You will
want to make sure, of course, that he is left financially
B.
Hamilton, Ont.
Edmonton, Alta.
Charlottetown, P. E. I.
Vancouver, B. C.
Victoria, B. C.
Nfld.
Underwriters
Distributors
Dealers
—
You have
his
in the event of your
death
...
Royal Securities Corporation
244 ST.
JAMES STREET WEST,
your
your
manhood.
■
.
-
/
■
\
Royal Securities Company
boy the best chance, call
Sun Life representative.
Members:
Montreal Stock Exchange
Canadian Stock Exchange
The Toronto Stock Exchange
Teletype service from coast to coast
$JIM LIFE OF CANADA
Coast to Coast in North
Limited
MONTREAL 1
An Educational
Policy will ensure his college education. . . . A Junior
Adjustable Policy will help start him off on the right
America
alone, but
for the whole of the free world.
during the last 50 years.
Canada-wide service, with offices at:
Saint John, N.
be¬
of good augur, not
and Industrial Securities
Public Utility
Halifax, N. S.
sympathy
peoples, is greater
for Canada and Britain
revolution in
Canadian Government,
two
today than it has ever been. That
restric¬
only
the
Britain,
tween the
locomotives. It is
not
Britain
The association between Canada
rail¬
of fire¬
tive
There
indispensable role to play.
the shaky finan¬
of American
condition
of the Atlantic, on
both sides
both sides of the English channel
has not been
roads is the
on
and with¬
Canadian experi¬
of the reasons for
Britain
man's country—
blaze the
a
ence
which the young
that
they must get out as quickly as
they can is not true. Over a great
part of British industry, nuclear
energy
or electronics, it is
the
young who bear the responsibility
and
have
cerned
nuclear
feel, if they have any sense,
give
not
Transport
man's country in
To
and
young
a
*
New
foot when he reaches
of
parable figures are available 190
ister McMillan hds described as
The ex¬ days per thousand of the working
"Interdependence."
pansion of British exports has not population were lost in Great
Britain through strikes; 850 days
been through the development of
Commonwealth Bank Proposed
were lost in the United States and
traditional products through tech¬
Much is to be hoped for from
660 days were lost in Canada. In
niques.
It has developed with
the coming Commonwealth Con¬
fact the days lost through strikes
new products and new techniques.
ference in Canada and from the
population; Britain exports $150. A considerable proportion of Brit¬ in Britain are a good deal less
increase of trade between Canada
Britain carries a burden of de¬
than in any industrialized country
fense unparalleled in peace times ish exports today consists of prod¬
and Great Britain. There is scope
except Sweden and Switzerland. It
and devotes to it a greater pro¬ ucts which did not exist before
for a Commonwealth Bank paral¬
is true that there are restrictive
portion of the national income the war. The British electronics
lel to the World Bank to attract
than
any
country
except • the
practices in British Industry
industry has developed fivefold
and stimulate investment within
United States.
Of every dollar's
which date from the days of mass
worth of production, 35 cents goes since the war and it is now the
the Commonwealth. The problem
unemployment.
There are too
So
to defense and the export market. second largest in the world.
is not one that can be solved by
many of them but they are grad¬
the
In spite of heavy taxation and is
petro-chemical industry.
Canada and Britain alone or even
and surely being broken
the Welfare State, personal sav¬ Every gas turbine aircraft in the ually
working
within
the
Common¬
ings in Britain have nearly dou¬ free world has an engine of Brit¬ down.
wealth. It is a problem in which
bled since 1938 as a proportion
For example, on the railroads
ish manufacture or British design,
of the national income. Savings in
all the free
world is involved,
in Britain the trades units con¬
and Britain is in the forefront in
energy.
secure
loss
and
rapidly than in Germany.
the
A
the
with the
withering away of the British Em¬
pire, world order has given way
to world anarchy.
The problem
British
are
increased since
has
war
were
woman's too, for they only Britain, is how to restore
very much involved. .
order.
It
is
sometimes thought that
Thi& is a task which cannot be
Britain is a country wracked with
done today as it was done a hun¬
trade disputes and riddled with
restrictive practices.
In fact this dred years ago by any one nation,
is almost the opposite of the truth. however powerful. It can only be
In the last year for which com¬
realized through what Prime Min¬
and
the
greater rate than in
the
sea
only of the
They
were
a
society
a
picture of
British
and stimulate investments
pared with 1938. Once again she
is investing abroad, especially in
the
Commonwealth. The
£
is
age.
The reality
ture is one
a
aspect of the British
one
revolution.
"
i
.
revolution
world revolution
the
Indeed
too.
has been
Commonwealth Bank, similar to the World Bank, to
within the Commonwealth. Finds indispen¬
sable Canadian-Great Britain, and free world, relations. Makes clear that new
Britain is not to be confused with anachronistic picture of old Great Britain.
Britain, and calls for
attract
short, of a so¬
ciety display¬
ing most of
the symptoms
o f
degenerav e
'
Lord Coleraine sketches
sapped by the
t i
•
.
Welfare State,
picture,
There has been a world
London, England
fibre has been
a
New Word
COLERAINE*
THE LORD
By RT. HONORABLE
that some people have
in their minds a picture of Britain
as a
country bled and impover¬
ished by half a century of war, of
a people whose
' <
•
It may be
Thursday, July 3, 1958
CHRONICLE
s.
Convention Number.
On
an
banker
make
THE COMMERCIAL and FINANCIAL-CHRONICLE
occasion such
to
seems
be
as
this
expected
observations
some
a
'
:
to
Wish
to
Toronto bank head's
-
d
isappoint
you. At the
moment, as
In view of scare head¬
gloomy talk, the con¬
remained surprisingly
confident and there is no reason
lines
non-gloomy examination and diagnosis of the Canadian
,
and
has
to believe that this mood will not
continue.
'are
ness
activity will prevail until well into 1959. Mr. Ashforth prescribes remedial
measures
the ID AC well
n
envelope.
.
leads him to expect that the existing^—almost record—level of busi-
economy
members of
k
' By A: C, ASHFORTH*
sumer
the economic climate and, I would
not
•
President, The Toronto-Dominion Bank, Toronto, Ontario
about
ow,the
in the
areas
of tax
no
At the
reform, small business financing, investment in¬
economy—like
steam in the economy.
the weather—
recession
1958
lit11
a
ing
cloudy, though
there
are
still
the horizon.
But
is
will also depend
again take place.
can
influence.
A. C. Ashforth
nate than
our
the south.
To
good neighbors to
date, the recession
lagged behind the
setback being experienced in the
to be whether the clouds will lift
in Canada has
sink lower.
U. S. and this
actuality of the recession,
seems
to be
his-
a
.
business setback, in Canada has
been apparent for some months.
the
on
Now, I come to the question of
.exports..
/
Exports have always been of
vital importance to the Canadian
of U. S. activity.
pace
.
'
■
and the
question seems
The
solid economic base from which sound growth
too
great
or
a
Briefly, gentlemen, as far as
is concerned, I expect con¬
sumer spending to be a stabilizing
force rather than an expansionary
^second-wind" opportunity to meet the challenge of build¬
the upturn's timing and extent
visibility
not
a
Labels improved exports key to economic growth's resumption and adds that
bright spots
on
provides
e
Contrary Trends
recorded
A moment ago
I mentioned that
overall business activity has held
up very well.
At the* same time
a
number o£ contradictions are
in
1957
1956
and
but
As
eConomy.
J
ratio of the gross
a
*
consumer expenditures, on balance,
have been a stabilizing
force. .You. may suggest that .the
national product, export trade has
alleged hesitancy of the
in the postwar period, but it re-
,.
Tn
In
.
_
ovr.
,
,
declined somewhat in importance
consumer
^^cal trend. The slight recession evident. Though business activity in making commitments for ceriqIo was hardly felt in Canada. has been declining, the upward tain types .of .durable goods has
or
con¬
expenditures to turn sharp¬
ly upwards—a development which
some people look for to put new
sumer
centive, productivity and medium-term export financing, and advises that the
is
time there
same
grounds for expecting
mains
nomic
maior generator of
a
activity
Budget
eco-
exports
1953-54 the decline in business trend in
activity has lost its
prices and wages has been a contributing factor in the f°™lc
^ y:
" *
exports
buoyancy.
Growth is no longer activity was slower to develop in persisted. The stock market has reversal of the upward trerid in influence the level of consumer
Canada than in the U. S. and Was
apparent and in some circles there
demonstrated strength in the face the level of business.
This may income and of capital investment,
is gloom and lack of confidence. not as great, and we were a little 0f lower
corporate earnings. Bank be true, but I wonder if the posi- xo a very large extent the CanaToo many people think things are dower to resume an upward .trend,
^ucjjubito
deposits are
cHC rising,
rising. These
JL iicdc Ucycldeyel- tion of the durable good| industry
j
economy is deDehdent1 on an
lae is being exnerienced
is due. in nart. to a shift in hnva
economy is dependent on an
going from bad to worse, when The same lag is being experienced opments are not usually associ- is due, in part, to a shift in buye x p a n d i n g
in the current setback, but only
export trade; for
ated with declines in economic 4hg habits and desires. '
they have not yet reached the
tune
will teii whether the pattern
level of being even bad.
growth and prosperity.
activity. Their meaning is diffi,
is to be the same throughout. One
cuit
The onset"of the recession, ex¬
cult to
to determine,
determine, but
but nerhans'
perhaps' v
'
This year our exports have held
High
thing is certain, the Canadian
they are an indication that the
>
cept in the matter of unemploy¬
ue
up surprisingly well. In the first
economy Ts again demonstrating setback wUl be of short duration.
Indications are that consumer *
ment, has not been substantially
wprf>
hv
greater stability than that of (the The fact that the recession is not
greater than in 1953-54—which
*&"$$$ wju continue to bo a
were
u. S.
;
:
V:
was
feeding on itself is a good omen stabilizing force throughout the, about 2V2% when compared with
a
mild setback to say the
Opinions of businessmen about The
much
feared - deflationary remainder of the year.. With labor the same period last year. This is
least. The total volume of busi¬
the U. S. recession differ widely.
ness has held up very well*
spiral has not developed.
> income at a record level, spending a minor decrease when compared
As in
Economists are far apart in their
This brines me td the auestion should remain at a high level de...
...
.
,,
"
1953-54, the impact of the reces¬
views. Some feel that signs of an 0f
the outlook for the Canadian spite the fact that some consumers
experienced by the U. S.
sion upon sectors of the economy
upturn are evident. Others expect economy.
Here, I imagine, you are caught in a squeeze between Then> again, we should also keep
and sections of the country has
the recession to bottom out later
wiu wish me. to be a little more higher prices and h
Continued on page 24
been uneven. Some industries have
shrinking pay
this year. Still others think it will
been hard hit. Others have.hardly
specific and in this connection I
he well into 1959 before
there
WOuld
like
to
discuss
felt the decline. Still others have
briefly the
is any resumption, of
economic three
main
forces which have
achieved further gains in business.
growth. I am not going to tr^r to been
responsible
for
the high
However, most industries are feel¬
predict the course of the TJ. S. ieyei of
prosperity in Canada m
ing some pressure on sales and
HANNAFORD LIMITED
economy other than to say there recent
years
profits and in most cases there hag
Members Investment Dealers' Association of Canada
are encouraging signs pf a levelbeen some easing of employment.
First, let us Took It the One in
ing off in business activity. At the which ybu and I are active par507 Place d'Armes
50 King Street West
Economic
—-
-—
-
-
-
—
-r
..
vv.
—
.
...
.
,
.
_
R^^in
,.
_
f?ur
mPonth, fLv
^
lower by
,
,,
with that
DAWSON,
•
Better Than in U. S.
Much the
in
the
same
same
situation exists
that
United
again we
States, and once
seem to be more fortu-
time, I would remind you
what
,
.
has an
the U. S.
happens in
,
..
influence
on
the level of
business in Canada—both
•An
the
address
Investment
by
Mr. Ashforth
Dealers'
and. indirectly
before
Association
Canada, Manoir Richelieu; Quebec,
ada, June 20, 1958.
of
Can¬
—
and
directly
Canadian
ticipants from day to day. I refer,
Montreal
^ course,
to consumer spending.
income this year to date
/Victor 9-2385
Labor
bas been ahead of the
last year.
-
period
Consumer spending as
6-9271
same
Underwriter* and Distributors
measured by retail sales is also
businessmen should keep a watch-
slightly ahead pf 1957.
ful eye on
crease
basic trends in the U. S.
Toronto
EMpire
is
not
of .the
The in-
Government, Provincial, Municipal and
Corporation Securities
magnitude
DAWSON HANNAFORD & CO. LTD.
Members Montreal, Toronto and Canadian Stock Exchanges
.
.
v
i
'
'
DAWSON, HANNAFORD INC.
37
WALL
New York
STREET
5, N. Y.
BOwling Green 9-5177
Greenshields & Co
Greenshields & Co Inc
?
■
,
ier Norris &
MONTREAL
Limited
;
CANADIAN
STOCK
STOCK
The Toronto Stock
of
i
EXCHANGE
Exchange
Canadian Stock Exchange
Canadian Security Issues
507 Place d'Armes,
Montreal
Collier Norris
Montreal
Toronto
New York
Quebec
Ottawa
Sherbrooke
EXCHANGE
*
MembeKSfMontreal Stock Exchange
Underwriters and Distributors
»
an
'
MEMBERS
Limited
&
Quinlan
MEMBERS
London, Ontario
The
Investment
Montreal
Dealers'
Association
..
of Canada
Toronto
.
.
TT
THE
8
The
Honorable
Right
F.
Mr. & Mrs. W. C. Jackson, Jr., First
of America
London, England;
The Lord Coleraine,
J. Brennan,
Company, Dallas, President of American Bankers Association
Southwest
F. J. Brennan & Co., Ltd., St. John, N. B.;
Canadienne Nationale
pessimism regarding
cur¬
one
experienced, 1953-54, and optimism about long-range prospect for Can¬
ada's continued
expansion,
short-term factors cited, Mr. Roberge arrays such encouraging signs
prediction regarding capital investment, upward
in industrial
of retail sales and
pace
turn
banking and is certain this will
to the end of my,first
President of The Canadian
bankers' Association, I must thank
"Your
members
for
their
unfailing
cooperation and assistance during
that time. These have been event¬
days in the banking business
and you
by
Guide
Business
To
pictures
a
have made
my
task easier
consistently helpful attitude.
11 would like to sketch, in broad
general
strokes
rather
than
address
Bankers'
marking
President,
by
Mr.
Association's
Roberge
interest
both
bank
annual
men's language of the
productive
taxes
a
subject of
many raw
to
bank
customers
staffs,
and
automation
machinery
and
too
materials still awaiting
development — to say nothing of
the innate
in
banking.
skills of the
Canadian
sion
we
face
today is
and
a
will
be
as a pause on
the
in
time
day. We
every
temporary
the
most
business
-
or per¬
to
special tax situations with regard
Canadian
branches and subsidi¬
aries, investment companies and oil,
natural gas
and minerals.
To obtain your copy,
business
write
letterhead to
U. S. office, or to the
on your
nearest
our
/'
Business Devel¬
opment Department, Head Office.
our
has experienced in the
postwar period. It is true, but poor
consolation, to say that practically
economy
regarded merely
the end of his first year as
Montebello,
Que.,
June
13,
onward
and
upward
Canada's certain
1958.
path that is
nation
western
every
destiny. There is
same
condition,
is
in
the
particularly
the
United States.
It is
now
current
one
whether
District
we
NEW YORK: 64 Wall St.
have hit
CHICAGO:
tell
cannot
the
will
you
bottom
come,
ALL TEN PROVINCES
Headquarters:
Halifax, Toronto, Winnipeg, Calgary, Vancouver
experienced, that
I
we
is
deeper,
widespread than
turning point
although there are
hopeful signs that the up¬
turn will not be too long
delayed.
Distributors
(faut-t*-(fadt
BRANCHES IN
•
SAN FRANCISCO: 333
California St,
Special Representative's Office, 141 West Jackson
T¥ecui
when the general
or
and
more
1953-54,
Montreal
of
*
recession
the last
of
Bank
fully apparent that the
sharper and
Underwriters
and
people—to
set-back
your
sonal interests in Canada. These in¬
in the grip of
are
severe
affecting
in lay¬
major Canadian
clude Federal and Provincial taxes,
stability and industrial
First, let me say that I have think otherwise.
But I must in all conscience,
complete and abiding faith that
the long-range prospect for Can¬ paint the economic picture as I
ada is continued expansion, pro¬ see it, judging from the business
gress and prosperity. The reces¬ reports that flow across my desk
in
to the
meeting
too much inherent strength in our
then
them
see
spend some time on
condition
\ *An
I
as
In
Canada", published by Canada's
detail, the monetary and economic
and
ful
on
First Bank, includes a survey
come
year as
all
questions
in CANADA?
■.
As I
in
on
nor
displace personnel.
r
the
and
concentrated
Taxation
not
destroy well known personal touch characteristic of Canadian banks,
h
expenditures
Have you
as recent
production, and current threshold point of resumed inventory pur¬
Presses for increased automation in
chases.
higher
Alongside unfavorable
and prosperity.
progress
Co., Ltd.,
machinery and
equipment. Since new construction
omy
tion.
has a high domestic content — in
contrast to machinery and equip¬
In
this
general picture there
are some very definitely encour¬
ment, much of it imported — the
aging signs. One is the official capital
investment program for
forecast of capital investment in
1958 should represent a strong and
1958, expected to be only 2.3%
Continued on page 26
less than last year, with new con¬
of stimulation, the econ¬
is still threatened with infla¬
President, The Canadian Bankers' Association
recession's degree of severity and recovery prospects compared to the last
1.2%
rising. So while present struction
seem
to require some overall
decline
degree
By ULRIC ROBERGE*
rent
on
conditions
Canada's Monetary and Economic Status
Canadian Bankers Association's President expresses
Georges Bray, Gairdner, Son &
Quebec, Que.; Ivan A. Martin, Royal Securities Corporation, Ltd., Montreal
keep
General Manager, Banque
Thursday, July 3, 1958
FINANCIAL CHRONICLE
COMMERCIAL and
Blvd.
Office: TKontneal
725 BRANCHES IN CANADA, U. S., GREAT BRITAIN AND EUROPE
•
RESOURCES EXCEED $2,800,000,000
some
of
An Unusual
Government,
It
Municipal,,
will not be
it
as
Public
Utility,
Industrial
Institution
Situation
that
as
in
was
the
strong
1954.
recovery
or
My
rapid
as
for
saying that is that there does not
and
seem
Religious
be
may
Securities
reason
to be today the same volume
of
unsatisfied
of
all
sorts
Anotner
demand
that
today the
same
for
existed
is
reason
goods
in
there
1954.
is
L 6. BEAUBIEN «■ C°.
not
LIMITED
lack of productive
capacity that existed in 1954 and
UNDERWRITERS
which caused the surge in capital
expenditures that spearheaded the
boom that extended
DEALERS
and
Specialists in Securities Originating in the
through 1956.
Moreover,
we have to cope with
unusual and paradoxical situa¬
tion. Hitherto, in periods of reces¬
Province
of QUEBEC
an
sion, the price level would
f/mu/eo
down
tivity
as
lessened.
evolution
was
This
of
to
fact,
lower
prices
remedial effect inasmuch
QUEBEC
TROIS-RIVJERES
stimulated
MON'CTON
consumer
a
be
221
matter
had
as
demand
J
Religious Institutions.
a
NOTRE DAME STREET, WEST
a
MONTREAL
I
they
and
hen^ce
production and employ¬
Today, in the midst of a
recession, most prices, instead of
declining as they used to do in the
ment.
"
Government, Municipal, Corporation,
School Commissions, Parishes and Fabriques,
4
customary
deemed
kind of economic law. As
MONTREAL
move
demand and business ac¬
past under,, similar circumstances,
Quebec
St.
Hyacinthe
Paris
Ottawa
Trois-Rivieres
Shawinigan
Brussels
Sherbrooke
Convention Number
THE COMMERCIAL
and
FINANCIAL CHRONICLE
Mrs. R. H. Dean; Mme.
Gagnon; Wing Commander G. Taschercaur Aide de Camp to LieutenantGU>vern°r,. Quebec. Que.; R. H. Dean, htesbitt, Thomson and
Company, Limited, Montreal^ President:
Dealers Association of Canada; The Honorable Onesime
Gagnon, Lieutenant Governor
V.
'•*;
of Quebec, Quebec City,
Que;
A.
C.
y.
of. Investment
9
Ashforth, Toronto-Dominion Bank, Tpronto;
The Right*? Honorable the Lord Colerainc, London,
England; The Honorable Donald.M. Fleming, Minister of Finance, Ottawa, Ont.
•;
'
Ar
BOXER, D. E.
In Attendance
}
•
At Convention
BRENNAN, F. J.
BROOKES, J. E.*
CAMPBELL, C. D.
Burns Bros. & Denton Ltd.
F. J. Brennan & Co. Ltd.
Greenshields & Co. Inc.
Toronto
Saint John
Montreal
BRAY, GEORGES*
BRETTTNGHAM, S. J. A.*
Gairdner, Son & Co. Ltd.
Quebec City
Financial Counsel
•
Montreal
■
Pemberton Securities Limited
BURNS, L. C.
Vancouver
Burns Bros. & Denton Inc.
.
;
New York
^
V
ALMOND, L. F.
Continued
Investment Dealers' Association
Montreal
ALEXANDER, N. J.
James Richardson & Sons
Winnipeg
ANDREWS, H. W.*
Graham
Armstrong Securities
"
Ltd.
Montreal
ANNETT, J. W.*
Annett
&
Company Limited
Toronto
ANNETT, W. S.
Investment Dealers' Association
Toronto
ARCHAMBAULT, A.
Nesbitt, Thomson & Co., Ltd.
Montreal
ARMSTRONGS, ANDREW*
Graham, Armstrong Securities
Ltd.
-
.
;
Montreal
ASHFORTH, A. C.*
Toronto-Dominion Bank
Toronto
ATKINSON, F. C.
Nesbitt, Thomson & Co. Ltd.
BAKER, P. J. F.*
Wood, Gundy & Company Ltd.
Toronto
Increasing the production and sale of Canadian iron
Canadian
BAKER, T. H.*
Ross, Knowles & Co. Ltd.
Toronto
BARTLETT, P. H.*
Dominion Securities Corp. Ltd
Toronto
industryJias
ore
to
U. S. and
been as important to the entire North
American economy. \By the mid-period of this half-century,
experts
estimate, the annual value of this production can be in the range of
one-half billion dollars. Mbst of this will be for export and chiefly to
never
the United States.
BARTLETT, W. T.*
Bartlett, Cayley & Co. Ltd.
Toronto
Long before that date, iron will be in first place
among
Canadian
minerals.
BEAUBIEN, ANDREW S.
L.
G. Beaubien & Co. Ltd.
Montreal
This is the most
Canada's
BELANGER, J.*
significant single source of new funds to reduce
trading deficit and finance continuing purchases in the
United States.
Belanger Inc.
Montreal
The position
BELL, L. L.
James Richardson & Sons
Toronto
BIENVENU, MARC MASSON*
La Maison
Montreal
Bjienvenu Limitee
of Steep Rock in the industry can be judged by the Com¬
pany's present objective—yearly production of 8.5 million tons from
mines directly-operated and under lease to others, sustainable for more
than 160 years.
BOLAND, T. G.
Bank
of
Canada
Montreal
STEEP ROCK IRON MINES LIMITED
'
BORLASE, A. E.*
W. C. Pitfield &
Co., Ltd.
Montreal
Producers of High-Grade Open Hearth and Blast Furnace Ores
Steep Rock, Ontario—in the Lake Superior Region.
BORRIE, W. J.
Pemberton Securities Limited
Vancouver
n
BOULET, J. CONRAD*
J. C. Boulet Limitee
Quebec City
BOUTIN, R. L.
Nesbitt, Thomson & Co.,
Montreal
•
Denotes Mr. and Mrs.
Ltd."""
on
page
26
THE
10
Mr.
3
and
Notes On the Canadian Economy
increasing
were
part of these funds went into de¬
$6,248 millions.
The drop in the hold-
velopment.
Life
Insurance
Companies' Hold-
ings of Canada Bonds by life insurance companies is pointed up
in the statistics in Table IV of 12
ings of Direct and Guaranteed
Securities
has
There
Later, a large
to time requirements.
$3,452
from
been
maior life insurance companies:
spectacular
a
but
quite understandable drop in
.
- ^
the holdings
of Government of
Guaranteed Mo tgages
Canada marketable securities by
As at April 23 the chartered
the life insurance companies, who, banks held mortgages under the
during the war period and as an National Housing Act of 1954, 98%
important factor in the prosecu- guaranteed by the Government of
tion of the war, purchased Canada Canada, totaling $619 million.
Bonds greatly in excess of peaceThe I.D.A.C. and others have
„
I
TABLE
Direct and Guaranteed Debt
Jan.
*
'
'
"
*
"
:
Increase or
Decrease*
1,1948
Jan. 1, 1958
(Millions of Dollars)
*
/
Held by:
Bank of Canada
Government Accounts
$1,881
2,648
1,415
General Public
10,763
Chartered
Banks
H
TABLE
Distribution
Estimated
Canada
General
of
Marketable
25.8%
5.0%
6.1%*
19.8%*
$2,366
2,781
1,328
8,629
Holdings of Govt, of
January 1
,
-
.
Life Insurance
Other
1,754
173
85
196
Companies.-
Insurance
Companies
(Quebec Savings Banks
vTrust
and
Loan Companies.
Financial
Other
Institutions
Non-Financial Companies
Provincial Governments.-..
Municipal
General
other
Total General
«
1
-
1
187
'
-
350
43.3%*
65.7%*
92.5%
47.0%*
17.3%*
87.1%
•
727
650
10.6%*
334
507
51.8%
than'
Public
•
•
$584
601
333
45
162 "
54
55.0%*
2,929
37.2%*
$6,215
33.0%*
120
Governments
Public
corporations & governm'ts
.
•"
$1,030
...
.
4,667
$9,273,
would
have
the
of
effect
The easier availability of money
this
will
year
stimulant
when
and
doubt act as a
growth
no
economic
to
corporations may
to finance ex¬
pansion. There has been a consid¬
erable drop since August of last
year in the cost of short and me¬
dium
term
money.
Long term
money rates\ declined in October
and November of last year but
have since held at a fairly steady
level.
Much of the corporation
financing thus' has been carried
out so far this year through the
sale of securities to the public and
has been for the purpose, in part,
of repaying short term indebted¬
ness incurred last year for capital
expansion purposes. This, together
find
it
as
necessary
decline
the
bank
for
in
the
Do you
to
a new
their levels of
while
price
the
index
the
in
of
the
a
general
risen
has
United
your
year
Incorporee
132
•
'
'
'
\
•
.
_
*r
;
\
Member of
.
■
drought
Do you know how a
company may be
incorporated in Canada?
offset
and other business taxes?
What
to
Are there
consumers' price index at
The
Head Office: 230 Notre Dame Street West
selves.*-
Montreal
-r
,jif
►
QUEBEC
SHERBROOKE
CHICOUTIMI
SOREL
-•
r
•
*
TROIS-RIVIERES
DRUMMONDVILLE
ST. JOHNS
TORONTO
•-
*
-
j The -government continues to be
ties
of
inflation
and
the
need
cost of
Savard & Hart S.A.
f
^.-GENEVA....
Savaard &
;
Hart Ltd
LONDON
It is
the
production.
unlikely that the monetary
will be interested in
authorities
.
to these and
questions-
planning to set
operations in Canada
man
business
up
—are
to be found in our
"Memorandum Re¬
,
operations
in
lating to Carrying On
Business In Canada".
For your copy—free and
without obligation
—write to Business
Development Department,
The Royal Bank of
CANADA?
Canada, Head Office,
360 St. James Street
West, Montreal, Canada.
to
restrain demands which will give
rise to increases in prices and
provincial
federal taxes?
other
concerned however,
about the re¬
maining
inflationary
pressures
and
issued
a
warning
in
the
Speech from the Throne urging
upon all ^groups in our society to
recognize the dangers and inequi¬
the per¬
vital to the business¬
laid
.
as
answers
set up
the
present time can hardly be
to
permanent
inflationary
pressures
on
the economy
but
rather
to
temporary
conditions
that will eventually adjust them¬
well
as
southwestern
Thus, the major influences
are
sonal income tax rates?
the
the
How about income
;
Planning
which
in
the
Street West
wholesale
in recent
States.
on
THE INVESTMENT DEALERS' ASSOCIATION OF CANADA
in
St. James
MONTREAL
ago,
that
country,
•which shortage is the result of
several
years
of widespread
SAVARD 6- HART INC.
service.
RENE T. LECLERC
vegetables,
the heavy
livestock to
States. to
shortage
of half a century in
demand
States
Canadian
United
beef
subsidiary
corporate securities is at
have affected prices for
and fruits, and also to
export
or
underwriting and distributing
months, it is still below its levelA
of a year ago.
The consumers'^
price index, however, has been
rising to new peaks, being influ¬
enced largely by increases in food
prices. These increases in turn can
be attributed to poor crop condi¬
tions
plant
Our experience
Inflation
and
finance
in Canada?
Inflationary forces are no long¬
er as serious as they were a year
ago.
The wholesale prices of in¬
dustrial materials have dropped
below
wish
has placed the
liquid position.
loans,
a more
Increase or
Decrease*
<
<
Non-Residents
This
An indication of such a policy courage both a high level of
making available for residential
was
given by Mr. Coyne in the domestic saving and a sufficient
mortgage purposes a larger pro¬
inflow of outside capital to make
Bank of Canada's annual report:
portion of the personal savings of
"If an early readjustment of the up whatever deficiency remains."
the people of Canada.
It would be reasonable to ex¬
Canadian
economy
to
a
lower
The Money Supply
level of capital investment, i.e., to pect this year a vigorous attempt
,
1957
1948
(Millions of Dollars)
Held by:
looking
banks in
Guaranteed Securities
John Graham A Company Limited,
Canada, Ottawa
means
with
Public
Direct and
Humphreys, Bank of Canada, Ottawa; John Graham,
Ottawa; Mr. & Mrs. J. B. MacFarlane, Bank of
a lower rate of growth, is not de¬
into possible ways from outside the country. It is pos¬
by which a security sible, however, that there could sired, the continuation of a high
rate of growth (higher than that
backed by guaranteed mortgages still be a substantial increase in
in the outside world) requires a
might be broadly distributed to the money supply with interest
rates being maintained at fairly sound money policy and an inter¬
Canadian investors.
est rate structure which will enhigh levels.
been
Continued from page
Thursday, July 3, 1958
CHRONICLE
Mr. & Mrs. D.
Mitchell,
Mr. & Mrs. D. W.
Mrs. W. H. A. Thorburn, Mills, Spence A Co., Limited, Toronto;
Pembertson Securities Limited, Vancouver
&
COMMERCIAL and FINANCIAL
'seeing
interest -rates
fall
far
enough
to discourage
domestic
savings and the inflow of capital
THE ROYAL BANK
OF CANADA
New York Agency—-68 William Street, New
v
York 5, N. Y.
ASSETS EXCEED 3% BILLION DOLLARS
#71--
A
Convention Number
Mr.
on
&
Mrs. Stanley
THE COMMERCIAL and FINANCIAL
Cox, Bankers Bond Corporation, Limited, Toronto/Mr. & Mrs. A. M.
Jarvis,
Bankers Bond Corporation
Limited, Toronto
A.:
the part of the government and
the
monetary
authorities
mote the most efficient
to
use
pro-
of pos-
sible of the savings that are available within Canada, for any substantial increase in capital inflow
over
that which is actually re-
quired to balance Canada's trade
deficit
high
could
result
premium
dollar.
in
a
the
on
fairly
Canadian
A
lative profits for the
down
were
quarter
by
year
In
7%.
First
the difficulty of determining what
might be considered
a
normal
under
growth
rence
earnings
for
shown a
many
companies have
considerable decline this year and
in some cases are uncomfortably
close to regular dividend rates,
When assessing the earnings pros-
pects
for the full year
must
we
consider
not
however,
only that
high dollar premium
could seriously affect the position
first quarter earnings are invariably at a low point in any year,
of
but this quarter in particular was
at the low point in the current
Canada's
domestic
industries
through encouraging the purchase
of imported goods at competitively lower prices, and also could
the
affect
earnings
positions of
most of Canada's exporting industries.
These effects would be particularly harmful in the current
in their
year
influence
of production
on
levels
and employment.
Corporation Profits
A
have
factor
that will
some
influence
undoubtedly
the capi-
recession.
An expected increase
in the volume of operations later
this year is likely to result in a
greater relative increase in profits. This will be due not only to
the usual dynamic effect of volume on profits but also to the fact
that many companies are operat¬
ing more
economically and in
tions in the fourth quarter of 1957
,
were
same
down
,
,
about
,"1
'
„
12%
from
the
quarter of 1956, while cumu-
i,
.
„
J*e Outlook General Business
for
recession
y
restrictive
pressures,
deficit
on
and
too
high
the Canadian
had
much
to
premium
a
dollar, and these
with
do
the
reces¬
sion that followed.
Another
that
must
be
spite of the recession, the economy
is still operating at a level which
is high in relation to the levels of
previous years. Incomes are cur¬
rently
higher than they were a
the number of people
is now higher than it
ago,
was
last year,
capital, expendi¬
tures for 1958 are estimated at $8.5
billion
which
is
down
slightly
?.f.th® sh°rt ?ernLfu<t"re must ?t
this time deal with the
prospects
Government
for and the extent of
return
high record of around $5.5 billion,
and it is anticipated that housing
normal rate of economic growth.
a
fected
$4,667
$2,929
Bonds)
1,440
Total
-
TABLE
2,596
$6,107
.....
$5,525
heavy
con¬
have
capital
outlays, to
expenditures
projects including
developments in the
new
power
Maritimes
and
elsewhere.
projects including the South Sas¬
katchewan Dam, the Pine Point
railway
the south shore of
Slave Lake, and the con¬
struction
to
roads
of
ber
in
the
is
that
while
estimated
by
slightly
more
a
will
reach
a
and
been
af¬
have
looking
but
situation
one
at
1949
1957
r-(Millions of Dollars)-,
and
equipment
are
most
10%.
level
of expenditures by business
This
reflects
,
$1,176
$427
38.6%
8.3%
VIIf
The Capital Spending Estimates
the
the
of
chances
The
capital expenditures pro¬
gram for 1958 of $8V2 billion was
overall capital spending
for 1958 should fall short
$8y2
billion /mark,-
reflects
industries
10
years
than
1949
was
to
1958,
with
Continued
the
on
(/ant Johnston it (o.
Limited
MEMBERS
MONTREAL
CANADIAN
STOCK EXCHANGE
STOCK
EXCHANGE
INVESTMENT DEALERS'
OP
ASSOCIATION
CANADA
485
McGILL
STREET
*
MONTREAL
com¬
a
bination of the
heavy capital ex¬
that have been made
penditures
in these industries in recent years
and
McDougall & Christmas Ltd.
for
the
raw
rials.
Stock
Exchange
Canadian Stock Exchange
The Investment Dealers* Association of Canada
It
"'"
<.
.
\
■f
1
■
Montreal
is
that
likely
this
industries
necessary
in the not too distant
again consider further
to
will
it
Canadian
find
expansion of their productive
pacities. .This situation will
doubtedly
result
in
further"
riods of dynamic growth.
ca¬
un¬
pe¬
Oswald & Drinkwater
Members
Montreal Stock Exchange
Canadian Stock Exchange
The Toronto Stock Exchange
Investment Dealers' Association of Canada
-
nomic
growth in Canada is more
likely to be guided by. internal
influences, including an increased
rate of home building, the result¬
ant
OTTAWA, Ont.
demand
ishings,
and
Canadian
Telephone CEntral 2-7321
not
will
In the meantime, however, eco¬
Telephone Victor 5-3261
Branch: 14 Metcalfe Street,
demand
adjust itself for at
least a year or two. It is inevit¬
able, however, because of rising
world population and because of
the pressure to raise standards of
living throughout the world, that
future
520 St. Francois Xavier Street
world
and semi-processed mate¬
situation
Members:
Montreal
lessened
for
the
household
need
industries
inventories. In
to
furn¬
for many
replenish
addition, there will
public investment pro¬
grams by both Federal and Pro¬
be
large
the
that the drop will be
are
rather minor
of
proportions, per¬
haps not more than $100 to $200
generally ex¬ millions.
While business capital
pected, being less than 2V2% be¬
spending may be adjusted down¬
low
the record expenditures of
ward during the year because of
last year but more than 6% above a lower level of
business expecta¬
the expenditures in 1956. Table V tions, it is likely that any such
adjustment
will
be offset in large
covers capital expenditures for the
greater
adjustments have taken
during the last 12 months
basic
lower
Yukon
of
although, because all
adjustments have not been com¬
pleted, it is likely that the recov¬
ery will be of a gradual nature.
Much
of
the
present
over¬
capacity
in many
of Canada's
a
enterprises and a higher level of
expenditures for housing and by
governments, as shown in Table
program
the
recovery,
up
1%, esti¬
machinery
down by al¬
hardly
can
ex¬
than
new
areas
are
mated expenditures for
and Northwest Territories.
claim that the Canadian economy
is in a state of depression. A num¬
place
The
1958
penditures for construction
by the recession than
others,
overall
the
many
for
A
significant
feature
of
the
capital expenditures program for
Federal
reach
year
industries
more
for
increase
in
Companies
Holdings of Government of Canada Securities (including guaranteed bonds)—_
As % of total assets.
Law¬
percentage
and to this extent the economy is
a sound position to undertake a
IV
Life Insurance
will
the
for
the
by
record.
certain
(Canada Savings
St.
annual
each year.
any
It is true that certain
(Millions of Dollars)
ernments
but considerably
other postwar
year ago,
Spending
new
Jan. 1, 1958
Securities Held by the General
other than corporations and gov¬
the
as
Seaway, will result in
tinued
Great
factor
considered in assessing the shortterm economic outlook is that in
year.
a
by
already
Speech from the Throne early in
May referred to several important
o n a r
monetary measures, a large trade
run its course and an assessment
to
such
way
and
Projects
t i
higher than in
a
Governments
municipalities.
which will be added
from
Marketable
Major
the
vincial
economy was growing at an
extraordinary rate which brought
with it rather serious problems.
These
problems included infla-
starts
Twelve
Certainly
There is evidence that the business recession in Canada has now
Jan. 1, 1948
Non-marketable Securities
realize
the
in® *orces*
TABLE m
Public
pattern.
employed
rru„
must
we
time prior, to
some
year
on
before taxes of Canadian corpora-
respect
many cases with decreased work-
tal expansion plans of many com-
panies has to do with the outlook
for
corporation profits.
Profits
this
11
-Fergusson, G, Tower Fergusson & Co., Toronto; R. T. Hutchinson, Cochran,
Murray & Co., Ltd.,
'<•
t
Toronto; Mrs. Neil Fergusson; Mrs. R. T. Hutchison
whole
about
reported
Neil
CHRONICLE
233 Notre Dame Street West,
Victor
5-6101
Montreal
page
12
THE
12
Mr.
&
Mrs. S. B. Phipps, James Richardson & Sons, Toronto;
Mr. & Mrs. Larry Bell,
Richardson, & Sons, Toronto; Garrett Taylor, Wood, Gundy & Co., Inc., New York City
labor force.
Notes
All im¬
capital spending plans of govern¬ migrants are consumers and as
such
they add to the total demand
ment.
in the economy for food, clothing
part by upward revisions in
A considerable num¬
jobs therefore can be
directly or indirectly
and housing.
ber of
new
' ''v
Housing
in the demand for household dur¬
volume of
able and non-durable
goods, easier
dustrial production will rise dur¬
costly credit terms, and
ing the year, but not fast enough
and
less
any
increase in the confidence of
in
consumers
The
the entirely to immigration.
Population Growth and
Unemployment
Corpn. Ltd., Montreal; Mr. & Mrs. Rudy Casgrain,
Casgrain & Co., Ltd., Montreal
10 are added to the
'
The Canadian Economy
oa
Mrs. A. I. Matheson, Dominion Securities
&
roughly only about six
of every
out
Mr.
James
consumers,
Continued from page 11
Thursday, July 3, 1958
and FINANCIAL CHRONICLE
COMMERCIAL
has
recently
National
Housing
government
the
amended
If
further
$350
by
million
Central
be
to
used
Mortgage
the
Housing
and
substantial rise in
spending should
er
Act in order to provide a
a
consum¬
about
come
replenishing of inventories by
a
re¬
tailers and the placing of new or¬
with
ders
to absorb the excess
exists
the outlook.
manufacturers
could
housing starts. In¬
new
in
ployment
capacity that
industries,
many
will
rise,
but
labor force will also be
it
is
anticipated
will
ment
higher
that
continue
the
growing,
unemploy¬
to
than
level
Em¬
as
be
in
at
a
previous
Corporation for the financing of
have a favorable influence on in¬ postwar years. Inflation will not
Again, housing construction. It is intend¬
dustrial production and employ¬ be the problem that it has been
as immigrants are usually less re¬
ed that this money will be used
in recent years, and money will
sons, while the labor force grew stricted
by local ties than are
ment, and this in turn could be
to foster the government's small
Corporation
by about 184,000 persons. An im¬ other Canadians they are more
reflected in still higher income be in easier supply.
homes
plan,
to provide
direct
profits should begin to rise with
portant factor in such growth was mobile, and many of them can fill
levels and consumer spending. ;
Canada's
year
a
by
an
total of
this
some
population
grew
last
282,164 immigrants, and jobs in labor-scarce areas where
factor
undoubtedly
influence
on
has
the
had
present
It would be incorrect, however,
claim
ployment
that the
current
situation
can
certain
unemr
be
laid
jobs would not otherwise
be filled.
have
high rate of unemployment.
to
attributed
to such increase in demand.
estimated 543,000 per¬
the
number
In
In these ways
effect
of
then they
adding to the
of
jobs in the economy.
addition, it should be pointed
out that while all
immigrants
are
loans
for
in
houses
of
centres
smaller
and
increases
to
tions
build
low
older
undertake
will
which
dwellings
rental
to
for
Conclusion
O
finance limited dividend corpora¬
To
summarize,
It
groups.
however,
that
expected,
is
bulk
the
of
the
required for the building
of houses this year
will
come
have
who
lenders
private
a
gradual
rate
of its support
most
record
the
of
re¬
with much
coming from
including
al¬
an
capital
ex¬
record
a
be
dian
to
-
\
tities
of
ever
basic
National
have
can
(jREMEKjYUELfiLjO. Inc.
S)jUIJJCU
71
St. Peter
Street, Quebec City, P. Q.
proportion
overall
of
levels
of
on
1955
production and
1956
_
_
1957
spend¬
ing usually depends on the level
of
disposable
personal
and
the
on
that
ers
near
may
from past incomes, or
MORGAN & CO. LTD.
Business Enterprises
__
Institutions & Housing
of
use
While
in
Stock Montreal
Exchange
MEMBERS
I
Canadian Stock
Exchange
be
savings
consumer
incomes
by borrow¬
in
1957
.
or
Decrease*
% Increase
or
Decrease*
687.1*
15.0%*
269.0
17.2%
$5,710.3
$6,128.4
418.1*
6.8%*
;
940.8
837.7
103.1
Governm'ts
1,147.8
1,092.3
55.1
Municipal Governm'ts.
722.1
662.6
59.5
8.9%
2,592.6
218.1
8.4%
200.0*
2.3%*;
Provincial
2,810.7
Total Private and Public
time
part
on
by
now
will
,
!
12.3%
>
5.1%
$8,521.0
•
$8,721.0
;
no
have resulted
in
ences
will be offset in part how¬
ever,
by
Credit Anglo-Francais
Ltee
higher level of social
a
Founded in
security paymer^ts,
fluence of
and by the in¬
wqg£ increases granted
during 1957;
Among
influence
consumer
future months are a
in
Members
Investment Dealers' Ass'n
of Canada
factors
Inc.
1916
-
the
Credit Anglo-Francais
Members
,
Members: Investment Dealers' Association of Canada
2.3%*
portion of the employed who are
diminished earnings. These influ¬
MONTREAL, CANADA
8.6%
$4,572.2
1,556.2
1957, the current level of un¬
doubt
507 Place d'Annes
26.3%
Canada
employment and the larger pro¬
working
Morgan, Ostiguy & Hudon Ltd.
.
$3,885.1
1,825.1
Federal Government
credit.
rose
3.7%*
12.9%
Public—
ing from future incomes through
the
10.5%
Private—
4
into
dipping
by
15.4%
their
effective purchasing power can
raised
19.9%
v
Increase
1958
have in the
to spend,
Decrease*
VI
TABLE
future. If consum¬
disposed
are
or
incomes
degree of confidence
consumers
relatively
*
Previous Year
8,721
8,521
1958 Estimated
consumer
for
~8~.9%
3,815
4,577
5,285
5,841
5,620
6,350
8,024
1953
1954_
employment.
The volume of
materials
3,502
1952
thus
influence
strong
a
quan¬
*
1951
a
Gross
and
Expenditures
upon
increasing
% Increase Over
(Millions $)
1950
spending comprises
large
very
the
V
,
Year
Consumer Spending
Consumer
gradually,
growing world demand.
TABLE
V,"
'
1949
and Stocks
pro¬
phase when Cana¬
industry will be called
produce
purpose
they did last year.
Corporate Bonds
of
result of recent
approaching,
next expansion
Capital Expenditures
than
volume
a
from
more
•
this
for
year
the
as
expected economies. And the economy will
is
during
level
penditures
'
available
funds
it
in
duction and
that economic activity will rise at
people and those in lower mainder of this
income
money
Government, Municipal,
the
population
Montreal
Stock
Exchange
Canadian
Stock
Exchange
that5 could
spending
in
INVESTMENT DEALERS
possible rise
employment, some increases in
wage
rates,- price
certain
consumer
increase
in
reductions
in
goods lines, the
housing
completions
which should result in an increase
60 St. James St. West
—
MONTREAL
—
Tel.: AV. 8-2172
Branches.
Quebec—Trois-Rivieres—Victoriaville—-Sherbrooke—Chicoutimi
3E
Convention Number
Mr.
&
Mrs. Murray
Continued
from
THE
COMMERCIAL and FINANCIAL CHRONICLE
Mr.
Co::, Anderson & Company, Limited, Toronto; Mr. & Mrs. VV. D.
McAlpine,
Brawley, Catheis & Company, Toronto
4
page
Si
Mrs.
William
13
Warner, James R'chardson £ Sor.s,
Edmonton;
Denis
Hagar,
Hagar Investments, Ltd., Victcria, B. C.
man.
You are dealing with the
public who range from ultra-con¬
tions
servative to the type who are will¬
do:
(1) JOE
is
Public
Rela¬
chain reaction—and all hell breaks
ing to get names and information
about people in sufficient quan¬
tity and selected carefully enough
ing to take certain risks with their
(a) He must build a market in so that your time is spent with
capital, even up to the individual which
people who are prospects—not just
you work.
who wants to gamble.
Without
(b) He must arrange interviews suspects. Just where you get your
The letters represent the four ma¬
you the money from millions of
names in the investment
under favorable circumstances.
business,
jor routines that salesmen must Canadians would not be available
(c) He must plan and analyze I do not know, but certainly judg¬
follow:
to other people who need it—want
your work so that you are not only ing from the insurance business,
it and can use it and are willing
(1) Attract attention.
your best sources are your own
busy but busy efficiently.
to pay interest or a profit for the
(2) Maintain interest.
JOE is concerned mainly witfi personal and social connections,
use of that
money.
Let's look at
people and mixing with people in
(3) Create desire.
the market in which you are
going
YOU for a moment.
to work with—where you are
Continued on page 14
(4) Get action.
go¬ i ;f
Since the beginning of time, man
This
was
a
simple and sound has been on the search for security
formula. Over a period of years and security for the individual in¬
many writers have stated this in volves money and income. We all
different ways and have expanded want it and require it.
Income
it almost to the point in many comes from two sources: men at
cases of confusion.
work
money at work. If man
Recently one
prominent sales authority wrote wants to increase his income above
down the sales technique into 18 normal salary level and can invest
definite steps that a salesman must his money to provide an additional
follows.
Rules and Regulations return
his objective is accom¬
that go with top Sales Technique plished. He also wants income later
loose.
have
t Who's
ssL
build
one-time basis.
The
The attitudes and
that
make
characteristic of
selling
it
as a
such.
as
one
of
men
clients
are
who regard
profession and practice
These attitudes
every¬
you
must
have
in abun¬
dance.
Until
someone
three
jobs
to
Fooling Whom?
clientele.
techniques for building clients are,
I believe, a more advanced form
of salesmanship than the more op¬
portunistic techniques which con¬
vert prospects into buyers on a
services
has
.
satisfied
a
your
man—he
sells
idea,
an
a
product, a service
nothing
happens but when we do our job
enthusiastically, efficiently and
complete a sale then we start a
.
,
.
The money comes out of the
.
.
.
—
been
when he is unable to work and
on
expanded, talked
bank, goes into governments, into about, written about, that confus¬ that means he must invest his
industry,
into
businesses,
into ion results. Many salesmen now money during his earning years
homes, into securities
that belong to the KAIC club. They profitably so that income will be
money goes to work and starts to say an expect is one who is thor- available for his retiring years. So,
circulate and as a result,—men are ougly confused about a subject but you are performing and making it
hired, salaries are paid, construc¬ who presents his material in such possible for a man to provide in¬
tion starts, and continues, more a way that you feel the confusion come from money at work
for
products or services are produced, is your own. I hope I don't end man to assure financial independ¬
a butcher is paid, people buy
ence
in
the
future
if
he
will
save
up
in
that
category today.
The
cars,
homes, television sets, telephones technique of salesmanship is not a and invest his money during his
and hydro. As the money becomes complicated set of rules that must earning years.
active, it leaves in its wake more be followed it is as simple as the
In seeking the answer to how he
employment, a better standard of Golden Rule and I would like to should invest his money
where
living. Salesmanship is the human put it before you today in as sim¬
what
how much
why,
atomic energy of modern economic ple a way as I know.
the public needs proper guidance
.
.
so
NWCUAIG BROS. &
CO.
LTD
.
MEMBERS: '
MONTREAL
STOCK
INVESTMENT
EXCHANGE
DEALERS
276.SL Jame: S:.;V.
...
.
•
.
'
'
CANADIAN
ASSOCIATION
MONTREAL
STOCK
OF
.
PL 8971
EXCHANGE1';
CANAOA
U2?
i/..
F**fL !
9-9311
...
.
times.
Investment
Pointers
men
have
one
of the
most
on
important and responsible
jobs under our free enterprise sys¬
Salesmanship
.
.
.
.
.
.
.
.
and competent service. A man in
whom they can place their trust
and confidence
an intelligent
.
.
.
by the thousands, articles, tem. Your job is to bring together well informed sincere salesman
speeches have all been made on clients on the one side who have than can give each individual
salesmanship. Formulas have been money that could be invested; and answers to his questions. On other
set down for salesmen to follow. governments, corporations, indus¬ words, YOU—the modern invest¬
Back in 1898 Sir Elmo Lewis set tries on the other side who require ment counsellor.
down a simple sales formula AIDA money for development and ex¬
Three Little Men in One
which has borne the test of time. pansion
you are the middle
Books
.
.
.
EXECUTIVE FUND
OF CANADA
Every salesman must develop
three personalities—to be a suc¬
S
o
salesman has
cess—every
a
triple
function to perform:
INVESTMENT
IN
(1) You must approach a suf¬
number
and
carefully
chosen people.
ficient
CANADA
(2) You must advise people. v
(3) You
must
able to
people.
be
favorable action from
Canada has much
ties.
We shall be
industrial
to
offer in the field of investment securi*
glad to send
preferred and
you a
common
selected list of bonds,
stocks; also Canadian
gas
\
It
helps
to look
get
separately
at
each of these functions you must
perform—you
in
one.
are
These
really three
must
men
men
work
closely together and each one uses
different
techniques and skills.
pipe lines, oil and mining issues.
These three little
ENQUIRIES INVITED
for
men
Geoffrion, Robert & Gelinas, Inc.
Members Investment Dealers'
Ass'n of Canada
should work
and together they make
successful sales personality—
each must efficiently and compe¬
tently fill the role that is assigned
to him or your results will suffer.
Each has his own job to do
each must have a special store of
knowledge in his own special set
of skills. The degree of the suc¬
you
INVESTMENT DEALERS
up a
KIPPEN &
COMPANY, Inc.
Members Investment Dealers' Association of Canadm
.
ESTABLISHED 1922
607 St. James Street
West, Montreal
UNlTBrtity 0-2403
cess
men
Direct Private Wire between Montreal, Toronto
of
each
.
.
of these three little
determines
salesmen in any
your
success
Members
Montreal Stock Exchange
Canadian Stock Exchange
Toronto Stock Exchange
as
line of work. Let's
look at these three little men sep¬
arately.
Geoffrion, Robert & Gelinas, Co.
507
Place d'Armes, Montreal
Mr.
&
Mrs.
Reg Findley,
Deacon
Deacon
Continued
from
should
be
active
the right strata of
In
JOE
building
meeting
list of names,
conscious of
must always be
adding to that list day in and day
out. Willie Sutton, the bank rob¬
ber,
when
asked
why he robbed
banks answered "That's where the
is."
"Cat
office
—people who have once dealt with
your firm.
I know you can buy
money
and
Maybe there
Dog" lists in your
holder
names
lists,
lists
are
own
professional lists—there
of
are
share¬
directors,
from the paper on
promo¬
He
must
names
client's
point that
a
interest
the
to
conversation will fol¬
low'.
track
must
not
develop
for
only to get
JOE
a
and
names
information about people but also
to make the
approach to the inter¬
build prestige for
and your firm—one that will
view
you
that
create
who
sets
part of
one
will
interest.
the
your
who
is
He
for
stage
interview.
controls
what
the
man
the
solid
He is the
you
say
when you first walk in—how you
introduce yourself and your ser¬
better than I do but JOE, as your
Public Relations Aspect Is
Public Relations man, must know
where to get names of this type
JOE
must
build
.
.
within
.
three
months
would have developed meth¬
ideas and techniques that
make you the best pros¬
pector in your firm.
Your firm
Difficult
develop
that
do
for
however
you—it
these
leads
for
JOE
—
his
is
job
to
and
you
a
success
.
.
and
Corporation Securities
CASGRAIN & COMPANY
LIMITED
261
as
salesman
a
to
.
MONTREAL
.
a
.
Here is
on.
a
top-notch doctor who commands
respect because of his experience
and skill but who is able to diag¬
situations
nose
right medicine
JUDGE
is
and
or
prescribe the
treatment.
who
man
a
and
new
pros¬
pects—permits them to analyze
efficiently. Each new
man, after a basic period of train¬
ing, we know for instance has to
their work
about
average
interviews
000 life
calls
30
which
to
result
10
one
of about $6,-
an average
insurance.
get
in
investment
all
the
for
little
first
who
men
the
of
assist
you
towards your objective. JOE is the
Relations
jobs
and
man
has
someone
—
why
—
not
your
to
do
MONTREAL
UNiversity 1-1461
thoroughly.
other
the
to
making
to
1
Salesman As
a
second
is
the
of
JUDGE
—
interview
is
three
the
JUDGE'S
various
the
(1)
I
markets,
much
the
that
man
as
keeps
(2) I am through with the stock
market—I have been burned two
or
\
three times.
(3) I buy only real estate.
(4) I haven't
MIKE
to meet
first
any money.
of all
you
thought/but sound
Make
objections
you meet when you are talking to
people and work out answers for
them. If you are a young man in
the business, get some of the an¬
swers from more experienced men
a
list
the
of
answers.
different
—they will be glad to tell you
Most objections are not real ones
—they are excuses. Some however
real
are
be
sincere—MIKE
and
to
able
pick the
one
as
well
the
as
is
the
people
man
—
confidence
who
firm's
individuals
that
to
real
a
will
prestige
when
he
and
service—so
actually talking
is
prospect such a person
have any doubts that
never
JUDGE
has
his
best
heart.
interests
"...
at
i*
them expect
must
MIKE
what
motivated
be
realizes
they
which
are
Now
we
the
Motivator
takes
the
to
come
little
third
of
men—MIKE.,
over
.,.
.
MIKE is
the closer. He
after JUDGE has
(1)
STOCK
buy
what
they
not
emotions
all powerful—
—
which
greed
—
brings in
desire for
profit.
(2)
future
Fear—this
is
worry
fear of loss of either capital or in¬
come
and
GRAHAM & CO/
that
may
be
sufficient
BOND
an
'SECURITIES LTD.
EXCHANGE
CANADIAN
STOCK
EXCHANGE
MEMBERS
INVESTMENT
up
and
437
St. James St. W.
1
DEALERS' ASSOCIATION
OF
CANADA
to
interview
get the prospect to open
GRAHAM, ARMSTRONG
MEMBERS
STOCK
about
security—also brings in the
BROKERS
MONTREAL
now.
people
three
are
Cupidity
selfishness
ex¬
plained the situation fully—mak^ing certain recommendations and
it is his job to get favorable ac¬
act
to
that
want,
There '
Mike As the Motivator
our
anywhere
most
of
to be motivated and
need.
under¬
who is able
in
has
from
-
-
have
up-to-date,
able
must be
objections with carefully
Right from the start MIKE must
realize
that when dealing with
possible about trends
industry
He
stands
to
company
who knows
individual types of securi¬
many
build
dealing with
for 10 years.
been
have
Joe X and
re¬
reads financial magazines—knows
ties.
their minds—who be¬
as the
up
gin to use objections, such
following:—
knowledge of the
securities
to offer. He is the
with
is
who want
of
have
and
work
and the confidence—
because of his knowledge and his
little
success
any
and have trouble
t\
your
as
command
job
80%
to
over
Judge
must
the
must
MIKE's
75%
think it
their
done
separate
He is the adviser to
clients—he is the rrian who
in
*611 St. James Street W.
have
JUDGE
time each day for
a
work.
The
men
be able
times
he
Breaking this
value, each call we
is worth about $3.00—each
interview is worth about $10.00.
much
conditions,
sponsibility.
INDUSTRIES
be
respect
down to dollar
INC.
INSTITUTIONS—PUBLIC SERVICES
must
well read—he must be stu¬
without
if JOE
people will act
push from MIKE,
the other.
day's
portfolio has
of
the
their
a
made clearly—he is going to have
difficulty. Only about 20% to 25%
at
each
He is somewhat in the position of
Memorandum
*
MUNICIPALITIES
interview.
the
control
been
not
been analyzed properly, or,
the recommendation has not been
interviews—sales
them and set
RELIGIOUS
times
has
If the client's
cap.
to
JOE to go to
—
respect
a
If there
good public relations job done to
begin with—he is under a handi¬
know human nature and he must
these
GOVERNMENTS
between
two
all
JUDGE.
dious—he must know the markets,
plan
organizer
•
JUDGE
conversation
telligent
soon
as
very
helps
and
to
Public
Investment Dealers
start,
the
as possible.
His job
seriously affected by the
efficiency of both JOE and
is
week's work well ahead and helps
them tabulate their work—call—
So
BELANGER
from
tion
Montreal
not
regards every interview as an in¬
very
three
of Canada
Right
and how
solved from
are
.
know
Members
The Investment Dealers' Association
problems
of them can De
investment angle.
week in and week out—this
sale with
St. James Street West
—what his
Book which each salesman carries
them
Government, Municipal
He finds
intelligent people. He must
his potential client and
large extent depends upon tne de¬ command similar respect for his
gree of efficiency that your JOE
firm.
He is very much at home
performs. How much thought, help with the many advisory services
and guidance have you given the handled
by many of your firms.
JOE that is working for you? How He
uses
your research men — he
much time do you allot to JOE as must
develop certain skills in the
your Public Relations man?
interview, first, by putting the
JOE has another very impor¬ prospect in the picture right away
tant responsibility.
It is in his and talking about his interest, his
hands that lie the technique of problems and his holdings.
He
must have the answer to questions
planning
and
organizing
your
work
at
his finger tips and be able to
keeping you busy
laying out your calls for the day impart this information in an in¬
and seeing that you keep mini¬ teresting way. His story is usually
built around a graphic presenta¬
mum but adequate reports of
your
activity so that you can analyze tion making use of two senses—
the pattern of your work. I might hearing and seeing.
He must at
your
to call
Canadian
hold¬
ideas may
pre-deter-
present
own
certain
has
Murdoch, Belanger, Inc.,
out what needs the individual has
many
not
George E.
mined likes and dislikes.
an
works
he
be—if
would
JOE's job is one of the hardest
list,
carefully selected, plenty of places of the three personalities.
I am
for you to go at all times because
quite sure if your firm offered you illustrate JOE's responsibilities by
a
busy salesman is never a dis¬ 200 a week to go out and do noth¬ referring to some of the tools he
couraging
salesman.
JOE
must ing but to develop names and in¬ uses in the life insurance business.
develop a number of skills in find¬ formation about people—the Pub¬ Here's a Prospect's card on which
ing and following up these names. lic Relations type of job—and you is listed the name, the informa¬
He must know the reasons why a had to turn in 25 to 30 tested tion and all the detail you can find
out on each person you are going
person will give you an interview. names a week to your firm of
peoyou.
tell you what his
ings are—what his
ods,
does
You
a
someone
you
develop skills that will
arouse ' a
Company, Ltd., Toronto;
else was to
follow them up, your job was only
the
development
of
qualified
tions,
business
changes,
estates
vice— how you get interest that
passing from one to another, di¬
leads into the solid part of the in¬
rect mail, and so on.
You know
the sources for your own business terview.
for
had been qualified to
degree, and
Bell, Gouinlock
George Sythes, Fairclough Co., Ltd., Toronto; Mr. & Mrs. Denis McBride,
&
Fooling Whom?
in
Mr. & Mrs.
Fisher,
Mrs. Dutch
pie who
income groups.
your
Mr. &
13
page
Who's
You
Findley Coyne Ltd., Toronto;
Findley Coyne Ltd., Toronto
Thursday, July 3, 1958
CHRONICLE
COMMERCIAL and FINANCIAL
THE
14
Montreal
to
Convention Number
Me COMMERCIAL and FINANCIAL CHRONICLE
15
*-
Mr.
&
Mrs.
R. c. Hebb,
Dominion Securities Corpn., Limited, Halifax, N. S.; Bob Wadds,
Young, Weir A Company Limited, Toronto
;
Mr. &
McLeod,
persuade the
JUDGE
one
right
man to change from
investment to another.
has recommended
is
the
of
and he must never be
afraid to ask the man to buy or
act now. He is prepared to vary
other successful people taking this
action. The desire to get in on the
his appeal r .number of times and
he is ready with sufficient illus¬
ground floor to make right deci¬
trations to back up
ommendation.
(3X Yanity-—this is keeping
with
the
Joneses
sions.
MIKE
up
power
'
.
desire
want
the
—
has to be able to create
to
to
make
own
the
individual
the
stock, bond or
security of any kind. He has to be
skillful in making it easy for the
person to take action and he must
be ready with motivating reasons
why today is a good time to make
decision.
the
He
usually gives
a
of
man
who
what
might be called the "Fatal
hesitates
a
choice
Alternative"—whichever
he makes
a
sale results.
decision
"Would
like to buy 50 shares or do
think 100 would be a good
move at the present time?" MIKE
is a good listener—he uses short
you
you
move
JUDGE's
rec¬
reverse.
in
I
>■;
am
Mrs. R. A. Daly, Jr., R. A. Daly A
Company, Toronto; Mr. & Mrs. J. c. Boulet, J. C. Boulat
Limiteei Quebec, Que.; William Dalton, R. A. Daly A Company, Ltd., Montreal
going to illustrate
way some of the
faults of salesmen that I have met.
a
negative
going to introduce six of the
greatest Alibi artists in the world.
with real abilities and per¬
I am
Men
sonalities who could be leaders in
their organization, but who due to
So, we have our three little some idiosyncrasy, weakness or
people who make a competent failing are not measuring up. I am
successful salesman—JOE, JUDGE going to exaggerate the shortcom¬
and MIKE. Their responsibilities, ings of these men substantially but
I would like to say any similarity
as far as you are concerned, must
be clear
you must continue or likeness to anyone is of course
to
improve their techniques in purely coincidental. These pecu¬
each one of their jobs.
Analyze liar behaviorisms have become
your own pattern over the past part of them and frequently they
six months—if you are not entire¬ even do not recognize their faults.
ly satisfied with some of your re¬
(1) First, may I present EXEC¬
sults, where are you falling down UTIVE ELMER. He is an office
.
in
.
the area
MIKE?
.
of
then
JOE?
set
JUDGE?
out
or
salesman—chained to his desk. He
to
improve
does not believe in expending too
the techniques of each little per¬
son
whot ogether make such a much energy to go out and call on
wonderful
contribution to
your people. Years ago someone phoned
success as a top-notch investment
in and he has gotten the odd order
man.
It is not complicated—sell¬
over the telephone so he uses' it
ing is just as simple as the jobs
of those three little men and it continually—tells his clients what
questions such as — Why?
What do you mean?—to
get the prospect to talk. He has
developed a remarkable ability to
will be surprising to you as you he has to offer
how good they
keep quiet at the proper time and
improve the techniques of each are
does not believe in making
let the prospect think—there is
one or all of them in their own
nothing more impelling, once you
courtesy calls or service calls. He
area what tremendous differences
place the plan in the prospect's
in results and earnings will result. will write letters—send Christmas
lap than to sit back and wait for
cards or calendars. Considers him¬
him to say something.
He must Introduces Six Negative Examples
.
how?
.
.
.
.
.
.
.
be
full
of
confidence
that
what
Now
let's
swing
into the
over
.
.
salesman.
He loves to meet the
him with open arms.
fine things to offer
He has some
but he feels
and talk about methods, techniques when his clients are interested,
and he does most of the talking they will let him know and they
but basically he just does not like will give him an. order.
to go out and see enough people.
He is not very successful from a
a
other salesmen from other houses
When the
financial angle
Who's Fool¬
ing Whom? Is he fooling his sales
busy with other things so why manager — his clients or oth^r
should he expend energy to try salesmen? Elmer is only fooling
and get an interview. He does not himself and his own family—they
realize that all personal contacts are the ones who suffer. You have
are
important
even seeing to make the calls to get the results.
them when not trying to sell any¬
(2) Then I would like to intro¬
thing is building prestige. He is duce EGOTISTICAL EGBERT. He
actually not a salesman at all—he is the know-it-all type of sales¬
is an order-taker. He may make man. He has been in business for
tells
yveather is warm, he
himself
his
clients
are
.
.
.
too
...
the odd call but he feels it
what
on
a
win
beneath
some¬
quite a few years; some have been
dignity to put successful, others not so'success¬
demonstration
an
does
his
interview
not
or
ful but he knows
to try and
with
immediately
know about
buyer
a
Continued
welcome
Underwriter
Distributor
•
there is to
all
marketing and sales-
•
on
page16
Dealer
..
self to be
an
executive rather than
Securities of the United States
Government and its
Agencies
State, Municipal, Revenue and Housing
Securities
Bonds, Preferred and Common Stocks
of
Industrial, Public Utility and
Railroad
Corporations
Bank Stocks
limited
Casualty, Fire and Life Insurance
Company Stocks
DEALERS
IN
GOYft^MENT,
CORPORATION
MUNICIPAL
AND
Bankers' Acceptances
SECURITIES
Securities of the International Bank for
Reconstruction and
276 St James Street West
50
King Street West
Toronto, Canada
Montreal, Canada
\
Development
Canadian Bonds
Telephone! Victor 5-4261
Telephone! EM pi re 4-0161
Ottawa
Winnipeg
London
Vancouver
Hamilton
Calgary
Kitchener
Quebec
Sherbrooke
Windsor
Edmonton
New York
Foreign Dollar Bonds
McUoo.Youmg.Weir & Ratcuffe
MEMMSS OP THE TORONTO STOCK EXCHANGE
MONTREAL STOCK EXCHANGE
The
CANADIAN STOCK EXCHANGE
r
stock
50
orders
-
r '•«
executed on
■
all
:
exchanges
FIRST BOSTON"
.ipeg
King Street West, Terento, Canada—EMpire 4-0161
New'York
corp°rat-Go.
r
Philadelphia
xHicaco
TT&wn *
.&e
and other leading exchanges
York 5, N. Y.
•
Boston
•
San Francisco
Cleveland 0 Hartford * Milwaukee 0
Minneaolis
Thursday, July 3, 1958
FINANCIAL CHRONICLE
COMMERCIAL and
THE
14
\
Mr.
&
Mrs.
Continued
from
Who's
You
should
be
active
the right strata of
In
building
pie who had been qualified
Fooling Whom?
in
meeting
income
groups.
list of names,
be conscious of
your
JOE must always
adding to that list day in and day
out. Willie Sutton, the bank rob¬
ber,
when
asked
he robbed
why
banks answered "That's where the
is." Maybe there are "Cat
and Dog" lists in your own office
—people who have once dealt with
your firm.
I know you can buy
professional lists—there are share¬
money
He
must
arouse
a
point that
names
develop
skills that will
client's
the
interest
to
conversation will fol¬
a
low.
You
must
.
and your firm—one that will
who
interest.
the
sets
the
is
He
for
stage
part of your interview.
who
controls
man
three
months
He finds
mined likes and dislikes.
many
cap.
an
not
does
regards every interview as an in¬
not
that
do
however
—
JOE
for
you—it is his job to
these leads for you and
success
as
salesman
a
to
a
large extent depends upon tne de¬
gree of efficiency that your JOE
performs. How much thought, help
and guidance have you given the
the solid
JOE that is
He is the
much time do you allot to JOE as
working for you? How
problems are and how
of them can De solved from
investment angle.
Right
start,
the
from
telligent
conversation
two intelligent people.
potential
his
respect
similar
respect for
is
much
his
home
with the many advisory services
handled by many of your firms.
He uses your research men — he
must develop certain skills in the
command
He
firm.
very
names
lists,
lists
of
from the paper
directors,
on
promo¬
one
person
will give
you an
interview.
names a
week to your
firm of
peo-
out
.
.
.
.
each person you are
on
to call
Here is
on.
a
going
week in and week out—this
them
and
Government, Municipal
Corporation Securities
to
plan
their
day's
helps
and
times be
the
and
new
them
about
average
sale with
pros¬
to
analyze
Each new
30
calls
which
insurance.
10
get
in
one
of about $6,-
an average
000 life
to
result
all
So
much
little
for
towards your
Public
the
of
assist
you
objective. JOE is the
and
man
has
someone
—
jobs
first
who
Relations
organizer
these
the
men
command
to think
making
why
your
do
to
it
over
BELANGER
INC.
Salesman As
The
Investment Dealers
men
is
each
'
,
^
GOVERNMENTS
/
•
•
—
and have trouble
their minds—who be¬
up
gin to use objections, such as the
following:—
I
(1)
for 10 years.
company
,/ (2) I am through with the stock
market—I have been burned two
or
three times.
(3) I buy only real estate.
,
(4) I haven't any money.
•
MIKE
MUNICIPALITIES
RELIGIOUS INSTITUTIONS—PUBLIC SERVICES
INDUSTRIE^
MONTREAL
UNiversity 1-1461
JUDGE
—
interview
is
have
various
the
—they will be glad to tell you
Most objections are not real ones
—they are excuses. Some however
to
be
sincere—MIKE
and
real
are
to
able
the other.
pick the
-
,
individuals
prestige
and
service—so
actually talking
to a real prospect such a person
will never have any doubts that
when
that
JUDGE
he
has
is
his
best
interests
heart.
•
>
•
at
•
anywhere
most
of
be motivated and
them expect to
motivated
be
must
MIKE
what
realizes
they
want,
need.
There
which
are
to
that
act
buy
what
they
not
emotions
three
are
three
all powerful—
Mike As the Motivator
Now
we
little
the
Motivator
takes
the
to
come
men—MIKE.
our
over
third
of
MIKE
is
the closer.
He
after JUDGE has
ex¬
.,.
.
plained the situation fully—mak¬
ing certain recommendations and
it is his job to get favorable ac¬
STOCK
little
(1)
Cupidity
selfishness
—
which
greed
—
brings in
desire for
profit.
(2)
future
Fear—this is worry about
security—also brings in the
fear of loss of either
come
that
may
capital
be
JUDGE'S
the
re¬
BROKERS
knowledge of the
that you have
markets,
who knows
man
keeps
up-to-date,
reads financial magazines—knows
as
much
the
ties.
to
is
GRAHAM
as
well
the
as
the
people
man
—
confidence
who
who
in
an
is
MONTREAL
STOCK
GRAHAM, ARMSTRONG
EXCHANGE
CANADIAN
STOCK
EXCHANGE
'SECURITIES LTD.
MEMBERS
INVESTMENT
up
CANADA
to
and
437 St. James St. W.
•
*
DEALERS' ASSOCIATION
OF
under¬
able
interview
get the prospect to open
& CO.
MEMBERS
possible about trends
industry
He
stands
build
as
individual types of securi¬
many
BOND
and
Montreal
or
sufficient
of
success
now.
people
Judge
the
has
from
one
securities
to offer. He is the
in
611 St. James Street W.
a
able
first of all must be
objections with carefully
thought out sound answers. Make
a
list of the different objections
you meet when you are talking to
people and work out answers for
them. If you are a young man in
the business, get some of the an¬
swers from more experienced men
to meet
not
the
of
with
dealing
been
have
Joe X and
firm's
sponsibility. He is the adviser to
your clients—he is the man who
must
—
second
with
is
who want
separate
them and set a time each day for
JOE to go to work. .«
—
work
their
job
80%
to
Right from the start MIKE must
realize
that when
dealing with
Breaking this
value, each call we
know is worth about $3.00—each
interview is worth about $10.00.
three
able to
75%
other
the
done
MIKE's
thoroughly.
respect and the confidence—
because of his knowledge and his
down to dollar
of Canada
who must be
well read—he must be stu¬
dious—he must know the markets,
investment
conditions, he must
very
at
interviews
Members
The Investment Dealers' Association
treatment.
man
interviews—sales
after a basic period of train¬
ing, we know for instance has to
MONTREAL
or
a
human nature and he must
man,
261 St. James Street West
is
know
pects—permits
LIMITED
JUDGE
week's work well ahead and helps
them tabulate their work—call—
their work efficiently.
CASGRAIN & COMPANY
right medicine
Memorandum
have
JUDGE
.
Book which each salesman carries
Canadian
going to have
Only about 20% to 25%
of people
will act without any
push from MIKE, if JOE and
made clearly—he is
when you first
.
If the client's portfolio has
analyzed properly, or,
been
difficulty.
at
what
a
the recommendation has not been
JUDGE
between
He must
client and
not been
has
If there
good public relations job done to
begin with—he is under a handi¬
—what his
works
soon
as
very
JUDGE.
out what needs the individual has
you
say your Public Relations man?
interview, first, by putting the
walk in—how you
JOE has another very impor¬ prospect in the picture right away
introduce yourself and your ser¬ tant
responsibility.
It is in his and talking about his interest, his
tions,
business
changes, estates
vice— how you get interest that hands that
lie the technique of problems and his holdings.
He
passing from one to another, di¬
leads into the solid part of the in¬
rect mail, and so on.
planning
and
your must have the answer to questions
organizing
You know
terview.
work
at his finger tips and be able to
the sources for your own business
keeping you busy
better than I do but JOE, as your
laying out your calls for the day impart this information in an in¬
Public Relations Aspect Is
and seeing that you keep mini¬ teresting way. His story is usually
Public Relations man, must know
Difficult
mum but adequate reports of
where to get names of this type
your built around a graphic presenta¬
for you.
JOE must build a list,
JOE's job is one of the hardest activity so that you can analyze tion making use of two senses—
He must at
carefully selected, plenty of places of the three personalities. I am the pattern of your work. I might hearing and seeing.
control the interview.
illustrate JOE's responsibilities by all times
for you to go at all times because quite sure if
your firm offered you
a
busy salesman is never a dis¬ 200 a week to go out and do noth¬ referring to some of the tools he He is somewhat in the position of
couraging
salesman.
JOE
must ing but to develop names and in¬ uses in the life insurance business. a top-notch doctor who commands
develop a number of skills in find¬ formation about people—the Pub¬ Here's a Prospect's card on which respect because of his experience
ing and following up these names. lic Relations type of job—and you is listed the name, the informa¬ and skill but who is able to diag¬
He must know the reasons why a had to turn in 25 to 30 tested tion and all the detail you can find nose situations and prescribe the
holder
is
would have developed meth¬
ideas and
techniques that
make you the best pros¬
pector in your firm.
Your firm
your
approach to the inter¬
view that will build prestige for
to make the
within
.
as possible.
His job
seriously affected by the
efficiency of both JOE and
tion
would
develop
also
.
tell you what his present hold¬
ings are—what his own ideas may
be—if he has certain pre-deter-
ods,
information about people but
create
a
you
develop for JOE a
track not only to get names and
you
to
degree, and someone else was to
follow them up, your job was only
the
development
of
qualified
George E. Murdoch, Belanger, Inc., Montreal
Toronto;
Company, Ltd.,
Bell, Gouinlock
McBride,
George Sythes, Fairclough Co., Ltd., Toronto; Mr. & Mrs. Denis
&
13
page
Mr. & Mrs.
Fisher,
Mr. & Mrs. Dutch
Findley, Deacon Findley Coyne Ltd., Toronto;
Deacon Findley Coyne Ltd., Toronto
Reg
in¬
to
ItfE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
15
*
Mr.
Mrs.
&
persuade the
R.
C.
man
Hebb, Dominion Securities Corpn., Limited, Halifax, N. S.;
McLeod, Young, Weir & Company Limited, Toronto
JUDGE
to change from
investment to another.
one
right
Vanity—this is keeping
(3)
has
afraid to
up
recommended
is
the
and he must never be
ask the man to buy or
move
act now.
He is prepared to vary
of
other successful people taking this his appeal a number of times and
he
is
ready with sufficient illus¬
action. The desire to get in on the
trations to back up JUDGE's rec¬
ground floor to make right deci¬
ommendation.
sions.
V
So, we have our three little
MIKE has to be able to create
people who make a competent
with
Joneses
the
desire
want
the
make
to
to
the
—
power
individual
the
stock, bond or
security of any kind. He has to be
skillful in making it easy for the
person to take action and he must
be ready with motivating reasons
why today is a good time to make
the decision.
He usually gives a
own
man
who
what
might be
hesitates
a
choice
called the
Alternative"—whichever
he
makes
a
sale
results.
of
"Fatal
decision
Bob
Mr.
Wadds,
•
&
<
Mrs. R. A.
*
Dalyj Jr., R. A. Daly & Company, Toronto; Mr. & Mrs. J. C. Boulet, J. C. Boulat
'*•'Limitee, Quebec, Que.; William Dalton, R. A. Daly & Company, Ltd., Montreal
I am going to illustrate
negative way some of the
like
think
fine
and talk about methods, techniques
and he does most of the talking
when
faults of salesmen that I have met.
I
am
going to introduce six of the
greatest alibi artists in the world.
with real abilities and per¬
Men
.
to
.
in
the
..
area
MIKE?
his
He has some
offer but he feels
to
clients
interested,
are
they will let him know and they
will give him an order.
He is not very successful from a
financial angle . . . Who's Fool¬
their organization,
ing Whom?
.
.
manager
Is he fooling his sales
his clients or other
—
salesmen?
Elmer
himself and his
are
the
ones
is
own
only
fooling
family—they
who suffer.
to make the calls to get
You have
the results.
.
of
then
JOE?
set
JUDGE?
out
or
try and
salesman—chained to his desk. He
to
improve
the techniques of each little per¬
son
whot ogether make
such a
win
an
does
interview
not
with
immediately
buyer
a
(2) Then I would like to intro¬
duce EGOTISTICAL EGBERT. He
is
the
know-it-all
type
of sales¬
He has been in business for
man.
quite
a few years; some have been
successful, others not so success¬
ful
but he
know
about
knows
Continued
welcome
there
all
is
on
page16
.
of
confidence
that
what
Now
let's
swing
into
over
Underwriter
Dealer
*
Distributor
I
Securities of the United States
.
•
..
self to be
the
.
an
executive rather than
Government and its
Agencies
State, Municipal, Revenue and Housing
Securities
Bonds, Preferred and Common [Stocks
of Industrial, Public
Railroad
M'Leoo,Young.Weir & Company
Utility and
Corporations
Bank Stocks
LIMITED
Casualty, Fire and Life Insurance
Company Stocks
DEALERS
IN
MUNICIPAL
GOVERNMENT,
AND
I
■
Bankers'
SECURITIES
CORPORATION
■
Acceptances
Securities of the International Bank for
Reconstruction and
276 St. James Street West
50
King Street West
Toronto, Canada
Montreal, Canada
Development
Canadian Bonds
Telephone: Victor 5-4261
Telephone: EMpire 4-0161
Ottawa
Winnipeg
London
Vancouver
Hamilton
Calgary
Kitchener
Quebec
Sherbrooke
Windsor
Edmonton
New York
Foreign Dollar Bonds
McLeod,Young,Weir & Ratcli ffe
MONTREAL STOCK EXCHANGE
MEMMRS OF THE TORONTO STOCK EXCHANGE
The
CANADIAN STOCK EXCHANGE
r
STOCK
ORDERS
'
EXECUfED
■
r
ON
:
ALL
EXCHANGES
FIRST BOSTON
CORPORATION
50
|
King Street West, Toronto, Canada—EMpire 4-0161
New York
Philadelphia
Boston
Pittsburgh
San Francisco
to
marketing and sales-
.
.
full
basically he just does not like
enough people.
to go out and see
things
sonalities who could be leaders in
.
be
but
.
.
him with open arms.
other salesmen from other houses
a
When the weather is warm, he
but who due to tells himself his clients are too
some
idiosyncrasy, weakness or busy with other things so why
failing are not measuring up. I am should he expend energy to try
successful salesman—JOE, JUDGE going to exaggerate the shortcom¬ and
get an interview. He does not
and MIKE. Their responsibilities, ings of these men substantially but realize that all
personal contacts
I would like to say any similarity are
as far as you are concerned, must
important
even
seeing
be clear
you must continue or likeness to anyone is of course them
when,not trying to sell any¬
to
improve their techniques in purely coincidental. These pecu¬ thing is building prestige. He is
each one of their jobs.
Analyze liar behaviorisms have become actually not a salesman at all—he
your own pattern over the past part of them and frequently they is an order-taker.
He may make
six months—if you are not entire¬ even do not recognize their faults. the odd call but he feels it some¬
ly satisfied with some of your re¬
(1) First, may I present EXEC¬ what beneath his dignity to put
sults, where are you falling down UTIVE ELMER. He is an office on a demonstration or to
"Would
.
.
He loves to meet the
a
in
does not believe in expending too
buy 50 shares or do
100 would be a good
much energy to go out and call on
move at the present time?" MIKE
wonderful
contribution
to
your people. Years ago someone phoned
is a good listener—he uses short
success as a top-notch investment
in and he has gotten the odd order
questions such as — Why?
man.
It is not complicated—sell¬
over
the telephone so he uses it
how?
What do you mean?—to
ing is just as simple as the jobs
get the prospect to talk. He has
of those three little men and it continually—tells his clients what
developed a remarkable ability to
how good they
will be surprising to you as you he has to offer
keep quiet at the proper time and
improve the techniques of each are
does not believe in making
let the prospect
think—there is one or all of them in their own
courtesy calls or service calls. He
nothing more impelling, once you
area what tremendous differences
place the plan in the prospect's
in results and earnings will result. will write letters—send Christmas
lap than to sit back and wait for
Introduces Six Negative Examples cards or calendars. Considers him¬
him to say something.
He must
you
you
salesman.
reverse.
Chicago
Cleveland
THE COMMERCIAL
16
R. E. Ramsay, A. E. Ames
Montreal; Mr. & Mrs. H.
Continued
from
page
Bros.
<fi
He
study
techniques
new
sales methods
does
have
not
to
modern
or
he has heard all
...
that before. He loves to tell clients
off
.
.
.
clever
of his buyers are as
none
as
He could tell them
he is.
all how to make
and he
a
lot
more money
he
but
rubs
of people the
lot
a
he
has to offer.
ries
He seldom wor¬
his clients.
about
ually working on two or three big
orders but very few of these big
no un¬
He is
apt to dress flashily
in the side of his mouth
a
hesitates to
never
client.
personality
.
.
.
He has
a
Lang, Toronto; Mr. & Mrs. Peter S. Gooderham, Wills, Bickle & Company, Limited,
Knowles, Ross, Knowles & Co., Ltd., Toronto; Mr. & Mrs. Harry Andrews,
Graham, Armstrong Securities Ltd., Montreal
& Mrs. James
.
.
con¬
strong
lots of confidence
fellow.
has
cigar
a
beyond his means
Now let
me
or
.
.
.
.
.
.
present GROWLER
.
touch his friends or associates for
has
ways
a
scowl
a
his
Criticizes
face.
his
on
for
firm
not
...
of
is
extremely likable chap who
Nothing is too much
an
changes that occur
they do
give him prompt replies to
his questions
deliveries are
not handled properly. GROWLER
.
is
.
.
.
uses
a
lot
of
energy
to
criticize other firms and other
but he turns a lot of
people against him because he us¬
ually has a tale of woe. He is
never
very interested in taking
part in community life. He is apt
for
game
.
.
.
.
.
would
up
up
rather
sale.
a
with
with
organization underwrites,
make
a
fuss
ulcers
the
and
end
with them and still not be
suc¬
the
paper
that he will not follow
ized
is
lazy
so
an
organ¬
method to be successful.
not
overly
cannot
is
no
ambitious
the
accept
substitute
he
that
fact
for
hard
work.
Larry is a joiner—he belongs to
a
church, lodge, to any organiza-
ilCndl
a
CORPORATION
FUND
A, INC.
^
AXE-HOUGHTON STOCK FUND, INC.
AXE-TEMPLETON
GROWTH FUND OF CANADA, LTD.
Head Office and Order Room:
1-2272
Tarrytown, N. Y.
MEdford
1-4612
Teletype Tarrytown, N. Y. 1708
Offices
730 Fifth Ave.
15 William St.
430 N. Camden Dr.
2808 Russ Bldg.
New York 19
New York 5
Beverly Hills, Cal.
San Francisco, Cal.
COlumbus 5-0250
HAnover 2-6962
BRadshaw 2-8258
EXbrook 7-0715
l.:J
MUNICIPALITIES
and
A
diversified, managed in¬
vestment in the resources
CORPORATIONS
and industrial
Canada.
are
Net
growth of
earnings
retained and rein¬
vested
by the Fund
Copy of Latest Report to Stockholders
at low tax cost.
available
The Keystone
Harriman
Ripley & Co.
Incorporated
50
me
tive material
Underwriters and Distributors of Capital Issues
Street, New York 5, N. Y.
.
I:
BOSTON
•
CLEVELAND
PHILADELPHIA
•
DETROIT
CHICAGO
•
•
READING
Keystone Func
•
w
Carl M. Loeb,
Name_
and
Correspondents PHILIP HILL,
HICCtKlON
& CO., LIMITED
Rhoades & Co.
Exchange, American Stock Exchange
principal Commodity Exchanges
Address_
42
City_
WALL
STREET
NEW
YORK 5, N. Y.
State
Private
Wire
System to Branch Offices, Correspondents and their
connections in 100 Cities
London
request
prospectus and desc
on
Canada, Ltd.
Members New York Stock
63 Wall
on
Company
Congress Street, Boston 9, Mass.
Please send
He
...
AXE-HOUGHTON FUND B, INC.
only get that
Can, L,
| 14
lot of time.
Fundamentally Larry is
^
Fooling Whom?
Krv:/::,
a
.
.
AXE SCIENCE & ELECTRONICS CORP.
Branch
CANADIAN GOVERNMENT
to waste
TV show
Phone MEdford
Who's
.
AXE-HOUGHTON
trouble
ulcers is that you may
cessful.
ing to get rid of him, much as he
likes him
they hate to give
him the brush off but they hate
SECURITIES
than
securities of the
PROVINCES
out of
He will likely end
If Growler could
distributes and deals in
news
AXE
purchases
not realizing that by belittling the
client he is making it more diffi¬
cult for himself. He is experienc¬
ing as Scott once said "The sick¬
ening pangs of hope deferred." He
make
Our
last night's
.
some
person's time.
night's hockey
lot
a
the client wonders how he is go¬
there
He will discuss last
He takes
weather.
to business—
very
careless — drops
cigarette
ashes on the client's desk, floor or
counter. As soon as he comes in
just
his
of
some
the
the value of another
salesmen and he will criticize the
client
.
.
.
hard worker
a
.
of time to get down
securities but just has no idea of
.
.
.
loves to visit.
not
.
Canadian Securities
introduce
me
line. GROWLER al¬ trouble for him to do for anyone
chip on his shoulder. else. He knows quite a lot about
.
brassy front but frequently has to
let
in every
man
cigarette doing enough advertising of the
lives
right type. They do not pay him
puts up a enough
they do not advise him
.
(4) Now
LACKADAISICAL LARRY. Larry
McGURK. We have seen this sales¬
Goes around with
usually
tradict
is us¬
He
nite ideas and he loves to expose
He
..
In fact he has only running down the other
superficial knowledge of what Who's Fooling Whom?
a
certain terms. He has many defi¬
them.
small loan
wrong way.
orders ever mature.
frequently does in
.
the week of course,
Fooling Whom?
manship.
Toronto; Mr
.
.
other
just to the end of chip off his shoulder
but usually it people have trials, worries and
is hard to get it back from him. problems and they are not inter¬
If he would put a
EGBERT is a Big Shot in his own ested in his.
opinion and is condescending to smile on his face and look at the
his clients. He has a tendency to positive side of things about his
play himself up by belittling or business, he could go a long way.
a
15
G.
Albert
Mrs.
J. Trevor Thompson, Molsort Securities, Ltd.,
Company, Limited, Toronto; Latham Burns,
Denton, Inc., New York
& Co., Limited, Montreal;
A. Cascadden, Annett &
Burns
Thursday, July 3, 1958
and FINANCIAL CHRONICLE
throughout the U. S. and Canada.
A*
Convention Number
Mr.
& Mrs. Jean
W.
P.
tion that starts
TttE COMMERCIAL and FINANCIAL CHRONICLE
Ostiguy, Morgan, Ostieuy & Hudon, Ltd., Montreal, arriving
at Murray Bay
everybody likes may make one call in the after¬
on
busy being a good noon
somebody
he
saw
a
fellow, mixing and meeting with couple of weeks before. He visits
people, especially making a pest for awhile and then it is time for
him.
He
is
of himself
...
so
»
.
in other words he
.
another cup of coffee in the after¬
the steamer
on
linens leave
sired.
W. H. A. Thorburn, Mills, Spence
& Co., Ltd., Toronto;. Frank D. Lace, Matthews <ft Company, Ltd.,
Toronto; Jim Annett, Annett & Company Limited, Toronto
something to be de¬
He contacts
lot
a
of
small
buyers but has not been able to
develop enough courage and abil¬
ity to go after big accounts
*•
.
very
busy
day
in
relations
new
.
.
names
.
.
.
let
and day out
improve your public
broaden and
.
your
.
.
.
aside
nw,„nA„ie
prospects
.
.
day
to
*s. f
ability to get
new
a
names
information about them
.
.
.
by without adding
prospect file—this
go
your
the area of JOE.
few minutes of
a
,
.
far.
His asso¬ noon..;'" '
has not been able to raise his
Theory because he
He usually lunches with some of sights to realize that a YES in the
seldom works. He plays around
his pals instead of with a client. right quarters makes four times as
kids and finds it easier to adjust
He is haphazard about his appoint¬ much business as a YES in some
himself to problems that go with
ments
about getting informa¬ other quarters.
gets
never
17
Continued
never
every
*
on
...
Set
day
page
ciates call him
...
.
.
a
small income than to force him¬
self
to
follow
planned routine
bring him suc¬
cess.
Who's Fooling Whom?
(5) Let me introduce ROTATING
work
which
RALPH.
ness
.
who
.
a
will
Ralph
has
.
deal
knows
few
a
his
busi¬
good clients
with him from year
to
and he
tion
about
clients
His
.
his
never
.
.
circle
of
prospective new
jots them down.
clients
smaller and smaller.
ten
is
getting
You will of¬
him standing around the
wondering where he is going
see
room
and what he should be
realizing
that
every
doing, not
top notch
just goes back over salesman is
opening new accounts
those same people. He is not look¬
—expending their energy. Who's
ing for new fields or prospects—
Fooling Whom?
year
after all he has been
on
the terri¬
no
are
a
years and there are just
prospects. His competitors
tunities that
digging them up but he runs
new
around
with
small
a
of
rather fed up with him. He never
knows
where
he
is going first
thing in the morning
ually takes his time
surely breakfast
cup
.
.
.
...
he
us¬
a
lei¬
over
in
the
drops in for
a
drug
game
right around the
blinders.
.
.
(6)
As
is
.
my
alibi
last
artist
I
careless
very
.
snow or some
house.
He
pathy
.
.
little job around the
to sell on sym¬
tries
after all he
.
he
is
another
represents
an
not realize that
.
.
.
his
.
.
success¬
He does not dress the
he is not well
...
very
caricature
inefficient
people like to deal with
.
shoes
are
groomed
seldom
his suit seldom pressed
shined
.
.
.
around for
•
■ *
:
"
.
his
\
A
I
'
°
He
ing
a
good
.
.
on
.
his present clients
he
on spur of the moment
on
...
ideas
when
Some
new
come
talking
piece of
advertising
out
instead
to
and
people.
of
studying it, he puts the folder in
and often will read it for
car
a
possible
buyer.
He
is
a
somehow
a
person
they
the
are
very
has
closer.
poor
that
idea
an
He
when
buys something from him
doing him a favor. When
client
says NO for the first
time, he is beaten. He does not
want to be considered
salesman
so
does
a
are very poor.
realize
not
high pres¬
his closing abil¬
that
if
the
Now
realize
I
that
very
few
salesmen in your line of work are
""•.AO--
Available
anything as bad as these carica¬
tures, yet many of us have these
faults to a greater or lesser degree
Request
but
do
realize
it.
If
could
we
eliminate their failings and short¬
comings
and yet retain and de¬
velop their strong points, each of
us would develop into more suc¬
SCUDDER FUND OF CANADA LTD.
cessful salesmen.
We will be
serving investors
depends
v
c
serving Canada-
buyer is not interested in one se¬
curity that there are many others
in which he may be interested.
His manners are apologetic—in¬
gratiating—negative. Who's Fool¬
ing Whom?
-
»
JL
<■
long time and given
service
they
buy something from him.
very seldom does any servic¬
people
ity and confidence
*
-''
should
He
'
O
-
has been
the first time in front of
This
his
lot of
a
shopping for his wife. He slips
often
during the day to
carry out the ashes or shovel the
PHAILS.
definitely exaggerated
but
'
home
sure
O
with
he loves to do
.
the
would like to introduce G. HOWIE
.
He
He
time
his
part
by then it is time for lunch.
Fooling
;
will
ful people.
store
of pool and
horse
a
Who's
Whom?
then off for salesman. He does
of coffee with some of the
fellows
with
are
because he is like
corner
circle
clients because he cannot find any
other place to go and they
get
a
He is in
fine territory but he
does not realize the many oppor¬
tory for
>■
.
efficient in
as
pleased to send
you a copy
could be
we
desk
our
Executive Elmer
of the latest report upon request
If
if
...
work
we
as
could
have the confidence of Egotistical
Egbert
hard
Lehman Brothers
...
if
we
could work
Growler
as
McGurk
keep better control of
...
if
as
and
temper
could like people and
we
our
enjoy
One William Street
their company as Lacka¬
daisical Larry
if we could have
the stick-to-itiveness as Rotating
Ralph
the ability to sym¬
pathize and understand other peo¬
ple's problem as G. Howie Phails
During the past quarter century, and particularly in the recent
development in Canada, the
principal sub-divisions have util¬
years of vastly accelerated capital
Government of Canada and its
ized the investment markets of the United States for
.
---—-—
^
and
Name
Address..
City...
.
important
public offerings and direct placements for the following issuers:
The Government
The Provinces
of
Canada
of:
Alberta
British
•
New Brunswick
Columbia
Nova Scotia
•
Manitoba
•
Ontario
•
...
New York
an
part of their financing requirements. Smith, Barney & Co. has
been
privileged to serve, either as a managing or major under¬
writer, in the greater part of that financing which includes both
Quebec
Saskatchewan
•
.
eliminate
their
other
The Cities
of:
Edmonton
weak¬
•
Hamilton
Toronto
•
•
Montreal
Vancouver
•
Ottawa
Winnipeg
•
nesses.
Add to that a thorough investi¬
gation and appraisal of your work
under the philosophy of the three
little
man,
JOE, JUDGE, and
MIKE.
Set your objectives high
..
.
plan
your
work
.
.
.
keep
ords and analyze your work
follow
a
pattern
so
rec¬
.
.
.
that you are
Smith, Barney & Go.
Members New York Stock
20 Broad
Exchange and other leading exchanges
Street, New York 5, N. Y.
Philadelphia
•
Chicago
•
Boston
•
San Francisco
Albany • Allentown • Cleveland • Hartford • Milwaukee • Minneaolis
18
18
Alan
Calvin Bullock,
Chippindale,
Toronto;
Continued
from
page
Ltd., Montreal;' Liam
Rcb
Roy,
a
to yourself
publications
—
let
inject
us
into
enthusiasm
a
living day by day
—
"Do unto
you would like
them
you." Then your career
of
conditions
a
salesman will be much
challenging
cessful.
more
much more satis¬
...
much more suc¬
of flirting with
even
Instead
—
prospect
—
business
a
financial
reviews.
well
time
the
.
strong
all
This
recommendation.
in JUDGE'S
is
area.
of
scious
your
firm
your
...
to point where
responsibility
to your clients
leaders in
.
.
us
go
Mrs. D. A. Thompson, Dominion Securities Corpn.,
going to be
organization.
are
we
our
.
isfied.
Securities Corpn.,
Dominion
through life using
of our
abilities and talents and
as
has money, let's be our job as some of us are in¬
prepared to give him all the clined to do—you marry the girl
Continually study the offerings reasons why he should act and act and settle in our mind once and
This is the area of MIKE. for all that our future, and a won¬
you have to make to the public— now.
improve your actual presentation When we put all these together, derful one it is, lies with the firm
do we have—YOU, YOU, we are now with and that we are
to new clients so that you can tell what
AND
a powerful and clear story. Don't
YOU, continually striving very willing to pay the price in
.
.
con¬ planning and in hard work to the
be afraid to come through with a to improve day by day
trends
Most of
.
Mr. &
Bartlett,
others
as
Once
.
.
Philip
Ont.;
anywhere from 30 to 40%
bit more fying and
close.
the
London,
by the Golden Rule
to do unto
Whom?
Then
time that is not too busy for
reading financial
Scott, J. H. Crang & Co., Toronto;
Limited,
17
Win's Fooling
at
Eric
S. O'Brian, Cochran, Murray & Co., Ltd.,
Goulding, Rose & Co., Ltd., Toronto
seem
sat¬
The few who get to the top
BELIEVE in themselves and their
ability
or
to overcome
any
obstacle
hurdle that is in front of them.
different
is
Limited, Toronto
to
different
people.
What is your idea of your success
—put it down—get it clearly in
your mind—look at it day in and
day out — that is your guiding
light never let it grow dim. Once
you
have that Clearly focused then
They know where they are going
and they do not let anything get
put down some of the things you
must do day in and day out which
in their way.
will contribute to that goal. These
are your minor objectives but you
like ships in a
harbor
without a captain and will find whether they are the
number of calls you are going to
crew you can imagine what would
make each day — the humber of
happen
when
the
engines
are
people you are going to see —
on
without
turned
guidance,
without a goal, without plan. It the number of new prospects you
are going to find — the improve¬
would be luck if it got out of the
ment of your sales technique —
harbor
would likely be sunk —
whatever they are the fact that
battered about or end
Most
people
are
—
—
—
up on some
Admits There Will Be Ups and
distant
Downs
FOUNDED
..
v
i
1885
■
■
>>
'
BROKERS
there will be
downs. There will be times when
bonds
are
.moving; times when
they are not. Times when the stock
market is up; times when it is
down. Times when money is quite
available and credit is easy; there
listed, unlisted securities
and commodities in the
United States and Canada
THOMSON & MfKINNON
11 Wall
Street, New York 5
INDIANAPOLIS
46
»
offices in the United States and Canada {
other
7
SECURITY AND COMMODITY EXCHANGES
t
r
£
canadian stocks & bonds
when
it
is
fire.
all
on
Canadian
Regular Commission Rates
or
Exchanges at
Traded in
New York in United States Funds
out
for
a
definite
destination
moment of the
..
.
enthusiasms—a feeling of accom¬
—
99,999 times that ship will arrive
at its destination.
Last Bit
are productively busy every
day
the accom¬
plishment of each of these minor
goals will bring satisfactions and
you
of Advice
plishment and you will get up the
next morning raring to do. YOU
ARE ON YOUR WAY.
I
am
going to tell
you
each
If
,
something
that if you will do and if you fol¬
low—if you will practice it night
some
of
of
us
could
sort of beam, like the
our
It all depends on the price
willing to pay yourself.
five men out of over 100
achieve wealth at 5; another five
are
Only
will have to go ;on working for a
somehow — the
alive, even in our
some way,;
good
are
times,, are, dependent
to a
indi¬
vidual friends or society. What is
the difference—the few at the top
realize that they had to pay a
price in hard work, study, plan¬
ning as they went along—they had
a
goal that they were willing to
greater
or
sacrifice to achieve. The rest
wan¬
dered through life without such an
The
Over
Fifty
years
of specialized financial service
lesser degree to
objective.
Orders Executed
the
,
other 54 who
AN* OTHER PRINCIPAL
On
hand, a ship well steamed
up with well experienced trained
captain and crew aboard who start
.
living
MEMBERS NEW YORK STOCK EXCHANGE
times
You will be
talking to
optimistic people as well as to
pessimistic people. A salesman's
a
TORONTO
be
restricted.
you
CHICAGO
derelict.
only have
pilot
airships have which would
sound a different signal in our
and day it will change your life. ears once we got off the track so
life can never be run on an even It will bring within your range we could get back on quickly, we
keel and you must believe above any objective you want to set for would follow the shortest course
all else that the seed of success is yourself.
Try it for the next 30 to our definite goal as they do.
in you—that that seed will not days and don't get off the track.
These minor objectives or work
grow unless it is nurtured, fed,
Sit down tonight at home and habits or plans are
your
radio
and watered.
beam
and each evening when you
set
on
:
paper what your objective
You cannot.get heat from a stove in life is. Where do you want to analyze your results for the day
unless you put wood in it and light be five years from now? Success you will
find where you have
will
in
a
other
There will be ups;
.
shore
to
Canadian brokers, banks and institutions
Branch
Offices located at
303 Dominion Bank Bldg.
360 St. James St. West
TORONTO
MONTREAL
successful
salesman, above
all people, in all other lines needs
clear concise goals and objectives.
He must know where he is going
and how he is going to get there.
There is so much room at the top
in any sales line that the disturb¬
ing factor is that so few people
Connected
by
and Branches
private
at
wires with
our
Main Office
Boston, Mass., Washington, D. C.,
Bloomfield, N. J., Princeton, N. J., and Oil City, Pa.
reach the summit. Everyone wants
to — the desire is there but too
CHARLES KING
& CO
Canadian
61
Exchange
Stock Exchange
Montreal Stock Exchange
American Stock Exchange
Royal Bank Bldg.
Broadway
NEW
TORONTO
YORK
WHitehall 4-8974
believe
that
by
EMpire 4-6407
gradually slip into the easy way
of living of the crowd, losing sight
of their objectives.
The
leaders
Wire
Connections
—
TORONTO, NEW YORK, MONTREAL
one
over
and great
even
Direct
en¬
vironment and circumstances and
MEMBERS
Toronto Stock
salesmen come to
they are frustrated
many
thing
that
thousands
philosophers of
though they differed
things, they, did agree
our
Co.
1842
years
time,
25 BROAD
STREET, NEW YORK 4, U. S. A.
Members New York Stock
Exchange
on many
on one
Captain of his Soul.
Established
religious
of
thing
—Man is Master of his Fate—he is
the
Laidlaw &
;•
and other leading
Exchanges
\
Convention Number
Norman
gotten off course—then make the
adjustment
necessary
tomorrow
so
will be back on the beam.
This suggestion is not easy, it is
going to take all the concentrated
MIKE
so
many
which will
he
ob¬
meet
many ways
to
a person may
often confusing to
that it is
have
to
and honestly.
demands on a
person's income, so
the capital that
use
and
able
carefully
are
motivation.
some
be
must
There
will-power that you
have but if you will do it for a
month, you will develop habits
ability
without
and
jections
whether or not
Providing
thoroughly sold him¬
Successful
salesmanship
is
self,
that
if
he
were
in
that
pros¬
nothing but doing sufficient of
the right things at the right time pect's shoes, it would be in his
in areas of Joe, Judge, and Mike, best interest to act now then it is
and making sure that nothing de¬ MIKE's job to persuade the pros¬
tracts you away from your goal. pect to do it now rather than put
leave you.
never
prospect
a
whole
Your
Week
life
after
will
week
your
will improve.
pattern
Your
own
now.
these
little
three
men
of
5 Every
Continued,
jrom
page
Ending
Up the
salesman
must
(1) You must approach a care¬
fully selected number of people.
You must be in
(2)
position
a
to advise them.
You
(3)
able to get
favorable action from people.
Each
really
these
of
functions
separately
three
in
men
must work
but each
be
must
be looked at
one
should
so you are
These
one.
carefully together
different tech¬
uses
niques and different skills. Each
own job to do. The degree
has his
performs his
success
three
as
little
little
skills with
own
determines
efficiency
all
which each
with
success
man
your
over¬
JOE
I
call
is
earlier.
same
To
in
their
effect
busy efficiently.
counsellor.
knows
the
is
product
man
after
the
introduction.
out
what
the
requirements
scribes
solution
a
benefit
to
you
the
—
who
thoroughly.
the
in
over
finds
interview
prescribes
interests
JUDGE
of
and
are
which
as
wants
pre¬
will
be
prospect.
a
and
with
the
best
client at heart,
to work to analyze
your
goes
the situation to
see
how he
can
be
of help.
motivator—the
at
the
others
do
■
as
surance.
unto
Taxes
have
until
first
months
four
Wholesale
this
of
time
to
unemployment,
of public works
alleviate
a
is
of
The
vember.
ing the year
in
consumer
half
about
the
in¬
rates
wage
so
dur¬
about 2%.
was
Guarding Against Inflation
In the absence of immediate in¬
flationary
any
for
It is the duty
classes in our
society to ensure that the pros¬
pects for a sound recovery are not
dimmed by a spiralling of costs or
all
of
granted.
and
groups
do
lend
not
strength
Inflation
inflation.
recovery
to
remains
a
danger against which
must remain on guard.
we
dealt with
the
have
more
will
one
takes
have
some
developed
of
in
on
a
good
mand.
The
natural
the
own accord
of fronts.
all
categories of borrowing have
substantially.
*
declined
policy
latter
also
of
part
our
that
we
economic situation
by saying
hopeful signs that
have reached the end of the
there
are
decline.
recent
Private Investors
was
gins
the direct effect of the decline in
certain basic exports
industries
overtaken
has
current
changed
The
energies
will
for
request.
Wood, Gundy & Co., Inc.
York 5
Street, Chicago 3
Affiliated with
.
i
.
and
action
I have
a
the
large
amount
available
for
'
Wood, Gundy & Company Limited
Head Office
36
King Street West, Toronto, Canada
have
reduced
on
.
by
number
Toronto
Quebec
Edmonton
Montreal
Winnipeg
Vancouver
London, Ont.
Hamilton
Ottawa
Calgary
Victoria
London, Eng.
a
Continued
—
Wall Street, New
it
or
ex¬
seems
time
be
di¬
rected to creating new capital fa-
supply was expanded rap¬
West Adams
demand
obvious that relatively less of our
or
40
has been less
to
and assistance from
105
the
important as one of the ori¬
of the current adjustment,
selecting Canadian securities frequently desire advice
specialists in this field. The experience and
facilities of our organization, with offices across Canada and in
London, New York and Chicago, are always available upon
holding
Moreover,
problem has moved more clearly
into the domestic field. Although
the influence of external demand
ceeded
1957.
analysis of
conclude this
can
considering the establishment or expansion of a Canadian sub¬
sidiary often wish to investigate the possibility of raising
additional capital through the sale of bonds, debentures or
shares in Canada. Our organization, with over fifty years'
experience in the underwriting and distribution of Canadian
securities, can be of assistance.
ef¬
already referred
of money
housing.
In
addition, in line with the govern¬
to
Market rates of interest in almost
in
full year.
a
people tell me, to meet
worthy demands for
and
personal loans.
-
con¬
economic
tendencies
these
government
made
reduction
some
credit
commercial
Company Executives—
from an employment
standpoint of the slackening of de¬
of
possible.
in every five pros¬
the
money
the
over
and with
tal investment
softened
act, even
idea, entirely on their
total
The
Monetary
plemented.
all
significant that the indirect effects
on
business capital investment.
Now that capacity in a number of
Monetary Policy Changed
being im¬
clining strength of business capi¬
been
as
reduction in
personal income tax.
$178 million in
current
past several months—with the de¬
fects
to get fav¬
a
last December amounted
taxes
least
significant economic trends
which
of the interview
is MIKE's job
orable action as soon
Only about
He
is the'
of
well
extension of the cor¬
poration income bracket subject to
the 20% tax rate from $20,000 to
$25,000.
easier and interest rates declined
substantially. Banks have now for
some time been in a position, so at
new
a
very real
I
as
cer¬
condi¬
tions in Canada generally became
I would not
pressures
general increase in
prices during the balance of 1958.
But this is not something we can
expect
ex¬
reduction of demand in
a
on
rise
average
was
rate
major program
now
The
fited by an
the
of
tain credit fields, monetary
I
lowered.
were
The special excise tax on automo¬
biles was lowered by one-quarter
and small businesses were bene¬
na¬
at
idly after mid-August, and partly
reason and partly because
for this
year.
the other
hand, reached a peak in January,
1957, declined 1.4%
during the
succeeding 10 months, and have
risen again moderately since No¬
prices,
in
emption for children receiving
family allowances was raised from
$150 to $250 and for other children
from $400 to $500 per annum.
:
Additional financial assistance
Thus, the consumer price
index, which began to rise in mid- being given to the provinces will
1956, continued upward until last
October, and experienced another
short period of increase in the
recommendations
it
pects
man
closer.
end
making certain
and
unto
them
v'vV
sequences
MIKE the third little
over
pressures
did not
on
prices
1956
Skillfully that efforts to stimulate
needs,
His job is very similar to that of
a doctor who must diagnose before
he
:
1957.
take
the adviser
He
your
takes
full
the
extent
some
generated
that advance in real income
that you are not only busy but
is
year
JUDGE,
He must plan your work
JUDGE
a
in
terviews under favorable circum¬
stances.
of
"Do
have
comprehensive program
development and
than
offset
He must arrange for in¬
operate.
than a year
by April, 1958
again
higher
earlier.
lower
tional
must build the market where you
and
£;■'
ment's intention to proceed with a
However,
employment
was
crease
public
your
slightly
was
prices
relations
man—he has three main jobs. He
He
Rule
would
you."
Growing Future
a
with
proceed
improvements
own
On Solid Ground
The
salesman.
a
men
JOE AND MIKE.
so
Golden
your
the
Building
to
capital
the
There
develop
Every salesman has a triple func¬
tion
to
perform in addition to
knowing his business thoroughly:
them
enable
go
competent needed
If
5
three personalities to be a success.
of
a
Mr. & Mrs. Robert Ouimet,
Montreal;
Montreal
you will
provincial
and
municipal
Social
techniques in fields.
Security benefits
the three areas mentioned above have been substantially increased
and improve the skills of each of during
the past year.
Benefits
these three little men then your under the Unemployment Insur¬
overall ability as top investment ance
Act have
been
expanded.
counsellors and salesmen will im¬ The
Unemployment
Assistance
was
amended
so
that the
prove day by day, but always re¬ Act
member one thing—don't confuse Federal Government now partici¬
salesmanship by a complicated set pates equally with each province
of rules.
It is as simple as the in the cost of assistance to those
Golden Rule,
in fact it is the not drawing unemployment in¬
analyze
you
So
up
salesman.
on
Summing
men
together to make
suc¬
is entirely with¬
control. It all de¬
the price you as an in¬
dividual are willing to pay!
pends
act
has
it off.
success
goal
cess—your
your
change.
to
as
should
MIKE
JUDGE, JOE AND MIKE all
successful
lb
•
Hannaford Ltd.,
Dawson,
Montreal; R. H. Machum, Eastern Securities Co. Ltd., Fredericton, N. B.
you
...
Claude W. Renaud, Royal Securities Corporation, Limited,
Stanbury, Stanbury <£ Company Limited, Halifax, N. S.; Pat Henderson, Calvin Bullock, Ltd.,
v
in
'
THE COMMERCIAL and FINANCIAL CHRONICLE
Halifax
Kitchener
Chicago
Saint
John
Regina
New York
on
page
20
THE
20
Mr. &
COMMERCIAL and FINANCIAL
Gairdner & Company Ltd., Toronto; Mr. & Mrs.
McLeod, Young, Weir & Company, Ltd., Montreal
Mrs. W. J. Scott,
Continued
from
Building
de
Quebec, Quebec, Que.;
only $21 million, or less than oneof one percent higher than
1 had forecast in December.
I
Growing Future
a
Prets
half
can
assure
will
In
veloped over the last few years in
housing, in municipal services and
in other requirements for social
capital in Canada, and in laying
the basic foundations for the new
that we are en¬
possible control over our financial
operations as I think these figures
As and with due regard for the re¬
sourcefulness of the Canadian peo¬
a result we shall be able to devote
more
of our energies to filling ple and the government's deter¬
mination, I had no hesitation in
some of the gaps which have de¬
cilities in the business sector.
you
deavoring to exercise the closest
On Solid Ground
demonstrate.
addition
to
budget out¬
our
met substantial nonobligations.
All were
financed without any increase in
the government's outstanding un¬
budgeting on the basis of a re¬ matured debt by reducing our
sumption this year of the rise in cash balances by $163 million.
incomes and production. Assuming
Our public debt operations dur¬
normal crops, stable prices and no ing 1957-58 included the redemp¬
untoward external events, I based tion and refinancing of a very
my revenue forecast on a gross large volume of government secu¬
national product of $32 billion, rities. Net sales of Canada sav¬
which
is
ajDout 2% above the ings bond series 12 amounted to
period of business expansion which
will not be long delayed. The pol¬
icies of this government are assist¬
ing the growth in housing and record level in 1957.
social capital. The expanded role
Government Financial Operations
of social capital is illustrated in
1957-58
the 1958 Outlook for Private and
Public Investment published by
Subject to final check when
my colleague, the Minister of Trade the books for the year have been
and Commerce.
Present invest¬ closed, our revenues for the fiscal
ment intentions of business for year which ended on March 31,
capital outlays in 1958 are about 1958, were $5,047 million, our
11% below the 1957 level. Planned expenditures were $5,086 million
outlays for housing, government and there was a deficit for the
departments and institutional year of $39 million. The decrease
services on the other hand are in revenues of $97 million as com¬
14% higher.
pared with the forecast is less
With all these factors in mind than 2%. The expenditures were
lays, we
bugetary
the unmatured debt held outside
these
government accounts was
almost exactly the same at the
end of the fiscal year as it was
at the beginning.
During the first five months of
the fiscal year interest rates gen¬
erally as in the previous period
continued to rise, reaching a peak
in August.
Thereafter the rates
began to fall and this downward
trend continued to the end of the
members:
ment
and
our
securities
3.05%
with
the year.
Treasury bill rates re¬
flected
similar
a
but
more
pro¬
The yield on the
first issue in the fiscal year was
nounced trend.
In
3.69%.
to
a
after
August the yield rose
high of 4.08%, falling there¬
to a low of 2.27% on the
CORPN. LIMITED
The Investment Dealers' Association of Canada
and Corporation
ing to $1,350 million were issued,
in addition to the refunding of
from
the fiscal year compared
at the beginning of
end of
Canadian Government, Municipal
and other new securities amount¬
treasury
bills
which
matured
weekly. During the fiscal year
outstanding securities amounting
to the very large sum of $2,650
million, including $1,050 million
of previous Canada savings bond
issues, were redeemed. After tak¬
ing into account the net sales of
securities amounting to $123 mil¬
de
fiscal year. The average interest
rate paid on the government's
unmatured debt was 2.98% at the
Midland Securities
$1,177 million, an all-time record,
lion
Montreal; Mr. & Mrs. L. P. Letarte, La Corporation
A. Archambault, Nesbitt, Thomson & Co., Ltd., Montreal
Roger Leblond, L. G. Beaubien & Co., Ltd.,
C. E. Godwin,
19
page
Thursday, July 3, 1958
CHRONICLE
Securities
The Midland Company
m
M K m b e r s •
LIMITED
The Toronto Stock Exchange
Montreal Stock Exchange
Stock orders executed
on
all Exchanges
invest¬
Toronto, Ontario: 50 King Street West
sinking fund accounts,
London, Ontario: Huron & Erie Building
Sault Ste. Marie, Ontario: 116 March Street
Montreal, P. Q.: 215 St. James St. W.
St. Thomas: 354 Talbot St.
»
.
Kitchener, Ontario: 2 Queen St. N.
Private wires
BONDS
to
Dillon, Union Securities & Co., New York and
MacDougall & MacDougall, Montreal
Eastman
STOCKS
FHDe*cON&COMPAN
M'
B
^MARKETS maintained in
..-JW''
.
all classes of Canadian external
and internal bond issues.
Stock orders executed on, the
Exchanges,
or
DIRECT
Montreal and Toronto Stock
net New York markets
quoted
on
request.
°"0"0/C
PRIVATE WIRES TO TORONTO, MONTREAL, WINNIPEG,
CALGARY, VANCOUVER, VICTORIA, OTTAWA AND HALIFAX
BELL SYSTEM
TELETYPE NY
1-702-3
197
Dominion Securities Grporation
Associate
Member
American
Stock
Exchange
Boston
40
Philadelphia
London, Eng.
.
Ottawa
i
\
•
Calgary
EXCHANGE PLACE,
NEW YORK 5
Telephone WHitehall 4-8161
Canadian Affiliate
—
Member Toronto, Montreal
and Canadian Stock Exchanges
Toronto
Montreal
Winnipeg
Bay Street
—
TORONTO 1
F. Coulter Deacon
John S. Deacon
J. Reg. Findley
EMpire 2-4492
J. W. Hetherington
Donald A. Jewitt
John C. Moorhouse
Donald M. Deacon
Robert D. Telfer
Vancouver
Charles N. Power
Halifax
—
Allan P. Fisher
Harold J. Knight
Convention Number
Mr.
Mrs. E. D.
&
COMMERCIAL
THE
Huycke, Bache A Co., Toronto; Mr. & Mrs. W .T. Bartlett,
Cayley & Company Limited, Toronto
Mr. & Mrs. J. A. McMillan, Nesbitt,
Thomson and Company, Ltd., Toronto; Mr. & Mrs. Richard F.
Chamberlin, Neebitt, Thomson and Company, Inc., Boston, Mass.
Bartlet t,
last issue of the fiscal year, and
Against this we
shall
have
was at 1.76%. available in this fiscal year some
the most recent issue
Government
Financing
1958-59
$50 million in our securities in¬
vestment account, about $65 mil¬
21
and FINANCIAL CHRONICLE
a way
to make the maximum appeal
to investors and must in so doing
impair the efficient operation of million or $317 million more than
both the new issue market and the previous record which was es¬
take
and
hold the view that we should seize
needs of investors and of the gen¬
eral psychology of the investing
term issues whenever these oppor¬
plan its bond issues in such
as
account
of
the
desire
secondary markets.
Therefore, I
tablished in 1953.
much
Even
though
as
half of this record sale
as
'
For the
new
commenced
estimated
on
fiscal year which lion from the repayment of loans
April 1, I have made in earlier years, and we can
budgetary expendi¬
approximately $5,300 mil¬
lion, which is $215 million higher
than our expenditures in the last
fiscal' year. 1
^■ V
our
long- may have consisted of conversion
by investors of part of their hold¬
ings of earlier series, it was none¬
large-scale placement of long-term theless a tremendous merchandis¬
bonds has been more difficult than ing feat to obtain
applications
money market operations in re¬ from 1,293,000 Canadians. Invest¬
cent years for a wide variety of ment dealers and banks alike de¬
reasons but we must not shy away serve full credit for this achieve¬
from a desirable course simply ment.
'I.-.
:
opportunities to create
expect to receive net about $240
public. This means that there must
be a considerable proportion of
medium - term
a n d
long - term
counts.
bonds in any debt management
The net requirement of cash program as well as an appropriate
Admittedly this is a substantial for these non-budgetary transac¬ amount of short-term securities.
increase but it includes all the
tions,
excluding
the
exchange
From the point of view of the
new expenditures on health
because it is
and fund account, is thus about $775
Government also it is very desir¬
welfare introduced by the gov¬
million, and this we shall need to able to achieve a well-balanced follow. V
tures at
million
cash into
of
our
various
annuity
and
superannuation
borrow.
We
shall
new
tunities occur. I recognize that the
ac¬
difficult
a
to
course
old
age
benefits
the increases in
as
pensions
and
the
veterans' borrow
and
initial
cost
also
funds
the
to
need
cover
to
our
of
budgetary deficit of $640 million,
hospital insurance which begins and our net new cash require¬
on July
1. It also includes large ments in this fiscal year will,
expenditures for national devel¬ therefore, be of the order of $1,400
opment which, let us remember, million.
Before considering further the
maturity distribution in our public
debt.
Excluding Canada Savings program of issuing marketable se¬
Bonds which are redeemable on curities I should like to remind
demand, the average term to ma¬ you of thle importance of the Can¬
turity of our funded debt meas¬ ada Savings Bond program. As I
ured from today is 5% years; ten indicated in my Budget Speech,
years ago the average term was
improve our productive ca¬
In addition to this, some $1,950 8%
years; 20 years ago it was 10%
pacity and efficiency and in due million of our marketable funded
years. If, for example, all matur¬
course add to our collective
debt will be maturing during this ing bond issues were refunded
wealth and income.
fiscal year, and * these maturing over the next five years for a con¬
Furthermore, all these expendi¬ securities will require to be paid
sistent term to maturity of, say,
tures to which I am referring, by
off by an equivalent amount of only three years, then at the end
providing employment and sus¬ new borrowing. In other words,
of the five-year period the aver¬
taining private incomes, will help
during this fiscal year we shall age term of the outstanding debt
to maintain the
will
level of the
tional
na¬
income
during this tem¬
porary period when export de¬
mand for certain of our staple
products has been softening and
during the pause which this has
caused in some sectors of capital
need to sell bonds
ties in
or
other securi¬
total amount of close to
a
would have shrunk to 3%
omies
to
find them.
we
new
The forecasting of revenue ex¬
pectations in times like these pre¬
sents an even more difficult prob¬
lem than estimating expenditure.
My forecast after the further re¬
ductions in taxation made by the
budget is that our total revenues
will
amount
which
is
to
$395
our
revenues
cal
year.
once
beginning.
I
$4,652
million
reductions
million,
made
last
decline is the result of
but
us
on
to
the
This
ill-omened figure,
contrary will inspire
strong endeavors to make
as
did
on
terms
of
we
The
occasion.
last
issues will be tailored to at¬
tract
participation by all types of
To develop the full po¬
of any market, even the
investors.
tential
merchandise
best
must
be
sold.
Within reasonable limits we wish
made, particularly in terms of the to take any and every step that
amount of new money raised over will improve our sales organiza¬
this the most successful issue
ever
and above the sums required to tion and sales promotion.
provide for the year's volume of
Government policy regarding
redemptions of previous issues. the management of the public debt
You will recall that sales of the cannot
follow any rigid formula;
last series reached, as I have men¬
Continued on page 22
tioned, the record total of $1,217
years.
we
Gairdner 8
Ju
vSf
cash. We still have before us
maturing bonds and to raise
than $1,000 million of new
cash.
'"'-/..v--.-We shall be making every effort
to promote a good sale of Canada
Savings Bonds next autumn, but
whatever net new cash we obtain
of
more
320
3
'
Gomparaj Limited
Bay Street, Toronto, Canada
We provide
a
>
complete service for corporate
~
financing in Canada. Private enquiries from
dealers
are
invited.
;;
year,
a
a
Emphasizes
decline
we
In ad¬
must take
large cash re¬
quirements outside the budgetary
figures.
During the current year, 1958-
1959, we will require about $400
million for housing loans, about
$250 million for the CNJt.'s capi¬
grams, nearly $250
advances
to
the
refunding pro¬
million of cash
St.
■■
Lawrence
Seaway, the Northern Ontario
Pipe Line and to other Crown
companies
and
agencies;
and
other
non-budgetary
cash
re¬
million.
:
The Toronto Stock
■
■
■
is
appropriate time to
principles which we
an
the
should
be
observed
Montreal Stock Exchange
Exchange
Canadian Stock Exchange
Winnipeg Stock Exchange
Vancouver Stock
Exchange
in
1
large pro¬
gram of public financing by the
government.
Perhaps the most
important general objective was
referred to in the Speech from
the Throne on May 12 as follows:
"My Ministers remain mindful
the importance of financing
their large program of expendi¬
tures in such manner as will best
safeguard against the recurrence
of inflationary dangers in future."
This means that we must to the
V."
L
.
>•
"
•
.
.
r.
•
•.
1
V:
i
Affiliate
Gairdner 8
Company Inc.
v:
of
extent seek to
investors,
institutional and individual,
greatest
feasible
raise funds from private
both
the
amount of financing done through
quirements, including the liquida¬ the banking system, particularly
tion of the defense equipment ac¬ where this is associated with over¬
count, will be about another $240 all monetary expansion.
3
the development of a
our
tal investment and
This
review
reduction consider
is, therefore, $648 million.
sum
Non-Commercial
Bank Borrowing
and
The estimated budgetary deficit
dition to this
Member®
more
corporation profits.
of
new
Savings Bonds this Autumn,
than f^om that source will still leave
us
with a very large financing
should point out at task.
tax base. Almost all of this
account
choice to investors
in the previous fis¬
less than half is due to
in
1st
come to market with, large
offerings approximately
every three months. We shall con¬
tinue to provide a broad range of
scale
ada
less
that of this reduction
our
April
the need to refund $1,350 million
than one-half is the result of tax
in
Since
inefficiency, have sold issues totaling $950 mil¬
extravagance wherever lion, of which $350 million was
waste and
-
econ¬
eradicate
have to
the
I trust is not an
steady trend towards a
$3,400 million. This is a major shortening average term is main¬
financial operation and will re¬ tained, we shall soon be confronted
quire the closet cooperation be¬ with progressively larger and more
tween the Department of Finance,
frequent refundings which could
the Bank of Canada, the char¬
investment.
:■ tered
banks, and all investment
I emphasize that with respect to institutions and dealers.
all
government expenditure we
We have already made a good
shall continue to search for
securities, it will be
apparent that the Government will
there will be another issue of Can¬
which will be Series No. 13.
this
If
Turning now to consideration of
'v- marketable
.
ernment such
and
hold
to
a
minimum
Obviously the Government must
60 Wall
Street, New York 5, N. Y.
Member:
The Investment
Dealers*
Montreal
Kingston
Quebec
Calgary
Association
Hamilton
Kitchener
London
Edmonton
of Canada
Vancouver
Winnipeg
New York
Private Wire System
-
.
;•
■
.
.
:
■
"
■
!
THE
Thursday, July 3, 1958
CHRONICLE
COMMERCIAL and FINANCIAL
-v.-
w&Smmk.
o
Continued
jrorn
page
the net burden of the
21
will
carried
Building
On Solid Ground
it
must
be
to
adapted
ments.
difficulties
greater
economic
two
be
While I do not propose to
or
our
for
ourselves
three years hence. It will
aim to offer acceptable
of
volumes
place an undue burden on the
longer term bond market, I em¬
whenever
phasize again that it is most de¬
occur,
longer
suitable
bonds
term
opportunities
and to spread the remain¬
maturing debt der sensibly between short and
spread out over the mid-term maturities.
years.
To refinance maturing is¬
While the prospective increase
sues
chiefly in the short-term in our debt will be quite substan¬
sirable to keep our
reasonably
market
would
only
build
tial
up
during the next
year
or
two,
we
easily only a few
While our net debt
at the end of this year is higher
than it was at any time during
the past
ten years, its burden
while
of
conditions and to market require¬
what
quite
measured
be
was
percentage
a
as
lower
significantly
three
Product
National
Gross
our
will
it
than
raising of a total of ap¬
proximately $3,400 million by the
of
bonds
is indeed
securities
other
or
formidable undertak¬
a
ing.
We hope to do it without
causing an undue strain upon the
financial
of
resources
the
dian investment market
of
of
consideration
due
provinces,
business
in
Cana¬
needs
and
municipalities
the
most
market.
same
IIMITID
ESTABLISHED
SS KING STREET
favorable interest
short,
in
factors
we
possible
1920
shall
of
need
cooperation
all
these
fullest
the
on
In
rates.
the part
institutions
and
dealers, and I appeal to
patriotism as well as your
your
of
WEST, TORONTO
light
the
investment
business
in
sense
in the
cles
seeking
Together
to
the
we
and in financial cir¬
what fiscal policy is
to
as
has
centered
of
this
around
circum¬
discussion
the
relative
The advocates of tax reductions
that by leaving more money
of individuals, con¬
argue
in the hands
spending will be stimulated
savings will be avail¬
productive capital in¬
sumer
and
more
able
for
vestment.
I
believe
that
experi¬
while
this
happen to some extent, un¬
other
stimulating measures
may
less
are
But
shown
has
ence
taken
much
of
the
tax
sav¬
taxpayers tends to
lie idle. It is neither wholly spent
ing
to
many
your
productive
into
put
ment.
under-employed manpower
and
equipment. But it cannot be a
complete answer.
In a country
as large and as economically di¬
verse
invest¬
their
the un¬
der-employed
resources
of
the
secondary industries and of many
of public investment
employment
viding
for
idle
or
to
programs
benefit
maximum
exert
upon
districts.
The third
lem
approach to the prob¬
policies
A
LEGGAT, BELL, GOUINLOCK
INCORPORATED
LIMITED
04 WALL STREET
MEMBERS MONTREAL STOCK EXCHANOI
NEW YORK
MONTREAL
R. a. Daly & Company
•
contribution to the
resumption of
healthy economic expansion.
My
own
there is
no
view is that just as
single remedy for the
problems of inflation, so there is
no one way to meet the problems
of recession.
We need
the
effective
means
us.
The
in
lies
the
or
essence
the
using
"mix"
best
and to
timely fashion.
means,
I
I
of
which
are
Distributors
balance
various
37 WALL STREET
NEW YORK 5, NEW
of Canada
Exchange
The Toronto Stock
underwriters
Canadian
in
and
corporation
YORK
DIgby 4-3870
dealers
and
government,
mit^icipal
securities
Affiliated with:
Orders executed
Private Wires
to
on
all
Burns Bros. & Company
Exchanges -
New York and all Branches
Ltd.
Members: The Toronto Stock
Exchange
The Canadian Stock
Exchange
Burns Bros. & Denton Ltd.
Members: The Investment Dealers'
'
•••-
44
KING
STREET WEST"
-
■
-
"•414 "ST. JAMES "ST. WEST
TORONTO
Direct Wire Service
.MONTREAL
Toronto
EMpire 4-4441
Ottawa
Uptown Toronto
•
Victor 9-8038
•
Sarnia
•
Orillla
•
'
Montreal
Hamilton
.
Association
Toronto
Ottawa
..
•.*.
A
of Canada
Montreal
t
Hamilton
Winnipeg
have
the
Members
The Investment Dealers* Association
them
last
Dealers
•
.
to
policy
right
tax
saving
all
of the
we
that
introduced
use
sound
apply
believe
mentioned
we
to
available
Burns Bros. & Denton, inc.
Limited
hard¬
,
Complete Securities Service
Underwriters
the
has
essential value of relieving
AND CORPORATE SECURITIES
AFFILIATES
—
ship and somewhat equalizing the
burdens
of recession, but
apart
from
maintaining
a
reasonable
level of consumer spending, such
measures make a limited positive
CANADIAN GOVERNMENT, MUNICIPAL
•ELL, GOUINLOCK A CO.
income
of
extension
the
—
maintenance
This
A program
has the obvious advantage of pro¬
Canada it takes time for
as
some
tax
reductions, public
programs and income
maintenance
policies.
It
has
seemed to me, if I may say so,
that too many of the protagonists
of these various policies tend to
take up
rather doctrinaire and
exclusive positions.
good
shall be offering
people the best
of
investment
nor
Canadian
existing
to
Most
stances.
cooperation in this task.
UNDERWRITERS AND DISTRIBUTORS OF
Policy
press
appropriate
and with
the
Moreover, the policy of the gov¬
ernment
has
naturally been to
seek to do its financing at the
BELL, GOUINLOCK & COMPANY
Tax
oppor¬
There has been much discussion
merits
ago.
years
The
sale
security in the world—an
tunity to invest in Canada.
ago.
years
Growing Future
a
public debt
below
well
remain
Mr. & Mrs. Gabe Sauriol,
Mrs. Reg. Findley, Deacon Findley Coyne Limited, Toronto;
J. R. Timmins & Co., Montreal
Mr. &
Hicks,
& Des Rochers, Ltd., Quebec, Que.; Mr. & Mrs. Ray
Walwyn, Stodgell & Co. Limited, Toronto
Mr. & Mrs. Paul DesRochers, Lagueux
-
in
a
done.
December
reductions
taxpayers
v,'i«
*>.
..,,
'
•
Convention- Number
Mr.
of
&
Canada
$178
have
We
and in
in
1958.
new
pro-
investment
in
development
resource
improvements to transpor-
tation that
dreds
the
million
public
housing, in
add up to many hun-
millions
of
provinces
of
and
dollars, and
municipalities
under the much easier money con-
ditions
ther
proceeding with fur-
are
hundreds
dollars
millions
of
worth
investment.
of
By
social
of
capital
increasing
bid
pensions, improving veterans'
age
sider
further major tax
any
effect of the policies that
TnTe^bsencJ"!.?
slackening in
sion has
export
rate of
our
demand
tenance
have
we
hundreds
additional
put
of millions
of
spending
would
for
general
not
markets
some
We are in danger of becoming to bear on the
challenge confront¬ vestors is achieved in each and
high-cost economy. Such a pros¬
ing us. I respectfully urge you to every new ? offering. In short, I
pect is particularly perilous in the
invite you to become full partners
case
of a country like Canada, participate in the "blue-printing"
which must sell so much of its of the program by giving us peri¬ in the formulation and execution
the
I
of
our
reductions
the
external
forest
products
still further into
go
harshly affected by the forces of
ate
recession.
inflation of
I
believe,
moreover,
about
the
action
on
right
time.
farm
on
deficit
pensions,
and
in
We
what
took
veterans'
on
ac-
benefits
to
November, December and JanWe have taken more action
uary.
on
housing, on unemployment inand
surance
on
hospital insurance
have
ures
further
tion
recession
the
much
taken
has
moderate
more
course
countries.
On
basis
justed
seasonally
a
If
of
both
we
after
we
go
take
we
had planted
off
go
an
with
all,
a
might
in-
an
these
degree
least,
fiscal
for
to
seems
the
policy,
While
time
me
that
being
at
investment
policy
maintenance policies,
for
find
not
in
fairly sensible balance of
a
and income
ad-
balance
or
matters; but in the present
have,
we
dangerously
a
Admittedly, it is
matter to judge just
easy
right
a
retail sales are
our
is,
explosive effect.
in
Canada than in other comparable
of
measures
circumstances, it
of such timely ac-
result
a
later
the
meas-
situation
recession,
we
some-
flationary time bomb which might
session, and we
constructive
have the
symptoms
what
mild
find that
not
new
the sessional program.
on
As
fairly
Parlia-
in the month that the
ment has been in
combat
In-
re-emerge.
paradoxical
far in the
creovert
difficult
very
recession and inflation.
too
unemployment insurance
on
might
even now we
simultaneous
old age
on
which
in
degree
a
control
to
deed
We took
incomes,
conditions
things at
housing last August and
again in December.
tion
have
we
done all these desirable
.
To
would otherwise have been most financing at this time could
v
these
reasons
myself in
I
did
position to
a
running ahead of last year; in the
recommend any major reductions
United
in
States
6%.
about
they
down
are
production
Industrial
taxation,
I
have
submitted
to
a
rather large number
particular
tax proposals, each
Parliament
in Canada has declined about 5%
of
from its
of which will be significant to the
peak; in the United States
the drop
is 12
or
13%. Total labor
income in Canada has hardly de-
United States
clined at all; in the
is
it
take
somewhat greater
United
these
declines in the
could
States, -for nothing
benefit Canada more
an
in
satisfaction
any
do not
I
3%.
about
down
early
expansion
in
particular
fected
groups
and
ple formula by which the
ment
tKe United
States,
believe
collectively constitute
able
measure
the
-
-
a
we
are
in
ernments
to
ers
Economy
I wish to take advantage of this
give
expression
once
tively stronger economic position. Canada. Only by
in Canada.
.1
"
ctuirement,
new
a
•.<
of
of
to
wise
A
cash
of
foundations and in
sistent with
our
keeping our cq&ts
a manner
which
is
terprise and free markets.
an
conducive
price stability and this govern¬
ment
gives
high place
a
to
that
duty; but to an important extent
prices
tion
the result of competi¬
are
the various economic
among
which compose
groups
each
striving for
our
of the national product.
warnings
issued
by
r
I echo the
the
Prime
Minister to all sections of the Ca¬
nadian people in
Canadian
nation,
greater share
a
Investment
J
*
....
Securities
•'
;
■'
appealing to all,
whether employers, employees or
•
1889
1958
self-employed, to have regard for
the general interest in the returns
they seek for their services and
In
products.
is
set
can
levels.
Provincial, Municipal and Corporate Securities.
responsibility
free
demand
to
not
women
of
than their fair share of the
other
I
have
said
in
the
con¬
As
occasions,
of
today increases in in¬
comes can
be justified by increased
ditions
organization is actively engaged in under¬
One must depend upon the
national income.
on
Our
writing and distributing Canadian Government,
and
more
arbitrator who
prices and wages at stable
of
sense
men
free society there
a
omnipotent
no
productivity
by
and
It is also
equipped to execute orders on all
Canadian Stock Exchanges.
Inquiries Are Invited
Your
increased
productivity alone.
Conclusion
<
I
am
most anxious,
in conjunc¬
to maintain close liaison with the
new
well
the
are
dealers
and.
the primary
'
i
government
aware
and
issues. I
value
and
of
informal
banks
close
highly
I know that
is making a
to
extend
effort tp improve and
their
liaison
with
the
I hope that all the
I urge you
of your
to bring the full weight
ingenuity and experience
Boston
New York
contacts
Bank of Canada
continuous
Incorporated
am
which already exist.
the
A. E. Ames & Co.
'distributors
Canadian Affiliates in
Toronto
Montreal
Calgary
Vancouver
and other Canadian Cities
i
*
\
London, England
build
solid
con¬
belief in free
of
costs
help to promote
course,
production in line with those market-place.
about " and progressive improvement in
ion—our standard of living.
on
government
.
$t|4O0 million, I could- not
glowing future
program
to
prices
deficit.; of *of .our competitors can we hope to firms represented here today will
total cash re-^achieve expanding employment cooperate with us wholeheartedly.
With :a ..budgetary
$648 million and
„
us
govern¬
stable
their
down
environment
of
to
Canada's
enable
do to assist produc¬
can
hold
production.
who
.
.
opportunity
maintain
can
of our investment
again to my concern over
satisfaction, I think, for the rela- costs of production and prices in
But
management
will
consider- partment and the Bank of Canada,;
equity and efficiency
.
debt
will tion with the officials of my de¬
of improvement
tax system.
of business
entitled to take soipe
I
a
which
and there is a limit to what gov¬
af-
persons
or
which
quickly than
resumption
of
their cost problem.
In a free society there is no sirh-
can,
into the hands of those who
power
McNeil, Geoffrion, Robert A Gelinas, Inc., Montreal; Mr. & Mrs. J. C. Leclerc,
Rene- T. Leclerc, Inc., Montreal
a
base metals,
our
or
our
in
at this stage
tax
improve
for
expan-
the decline
been
basic resources, and
main-
Mr. & Mrs. E.
23
production in markets abroad. odically your views and sugges¬
further
adverse
external Moreover, Canadian producers are tions. I
urge you also to re-exam¬
events, sustain economic activity encountering increasing difficulty
ine the techniques of distribution
in retaining their domestic mar¬
and provide the economic climate
ket in the face of keen competi¬ employed in your own organiza¬
for an early resumption of ecotion from abroad. Many of them
tions to ensure that the widest
nomic expansion.
Moreover, the under these circumstances turn to
possible
coverage of potential in¬
main factor in bringing about the the government for a solution of
further
farm income
have
we
CHRONICLE
any
insurance benefits and developing
of
re-
ductions to be necessary for economic reasons.
The stimulating
benefits, extending unemployment
programs
COMMERCIAL and FINANCIAL
Rudy Forget, Forget A Forget, Montreal; Mr. & Mrs. Peter Crysdale,
Anderson A Company Limited, Toronto
introduced
of
grams
Mrs.
THE
Winnipeg
Victoria
en¬
THE
24
COMMERCIAL and FINANCIAL CHRONICLE
Thursday, July 3, 1958
M
Walter
L.
Kippen & Company, Inc., Montreal; Mr. & Mrs. Stuart Fish, Collier, Norris
Quintan, Limited, Montreal; Bill Dalton, R. A. Daly & Company, Limited, Montreal
Downes,
Continued
from
page
and
7
Mr. & Mrs. W. G. Pepall, Bell, Gouinlock &
Company, Ltd., Montreal ^ Mr. &
dk
substantial
upturn in world
trade.
While
How to Combat
Recession In Canada
in mind that they
highest
on
are
ports can be maintained. If our
export sales continue to make as
a showing as in the first four
months of the year we can count
the second
record.
good
"Darlings
Fortune"
of
ourselves
fortunate.
Much,
of
that our course, will depend on the trend
exports have held up surprisingly of events in the United States—
well. Looking over our experience our main
market—but we must
of the postwar period one cannot
keep in mind that conditions all
help but feel that we have been around the world are in a state of
"darlings of fortune." Over and flux.
Underdeveloped countries,
over again declines in some export
the economics of which depend
categories have been offset by largely on the sale of raw ma¬
increases in others, or by ship¬
terials, are adversely affected by
ments of new products.
For in¬ the decline in commodity prices.
stance, iron ore exports were im¬ The economic situation in
Europe
portant factors in 1956 and 1957.
is less favorable and the position
This year it is uranium which
is
has kept our exports up. Exports in France
disturbing.
Then,
A moment ago I said
-
of
industrial
materials
raw
again, industrial materials
are
are
in
down but
wheat, aircraft, uranium, over-supply because of slackening
machinery are up. In
world demand and excess capacity
this there would appear to be at
and
least
farm
an
There
in Canada and elsewhere.
element of luck.
is
On balance it would appear that
question as to
level of ex¬
some
whether the present
we
cannot look for
an
immediate
the
subject of exports,
perhaps I should say a word about
imports. As you know, they have
fallen sharply and this is largely
a reflection of a slowdown in the
importation of capital goods. As a
result there has been a sharp drop
in our balance of payments deficit.
The third
expansionary force
in the Canadian economy is capi¬
tal investment.
Here, also, there
has been a reversal of the postwar
trend.
Capital investment this
year is expected to total $8.5 bil¬
lion as compared with $8.7 billion
on
in 1957.
The
investment
decline
is
in business
greater than these
figures indicate, being offset in
part by higher housing, institu¬
tional, and government expendi¬
tures.
1
v
While
•
total
capital investment
will be lower, the program may
have as big an impact upon labor
and production as did lost year's.
The reason for this is that housing
and similar types of construction
are more
dependent on Canadian
materials and require more onsite labor than the engineering
type of project. Then, again, up
to half of our machinery is im¬
ported.
The major decrease in the busi¬
r
1
dustries.
This reflects
a
slowdown
in world demand and the fact that
in
UNDERWRITING
sector is in the resource in¬
ness
recent
years they have built
than ample capacity. The
latter also applies to some of the
manufacturing
industries.
The
question mark as far as capital
expenditures is concerned seems
up more
I
DISTRIBUTION
to
be
1959.
This year there was
from
present levels remains a
question mark. The economic in¬
dices do not point to a broad and
to put our
consistent decline
solidate
to
nor
broadly
a
based upturn, It is quite possible
there may be some further slack¬
carry-over
1959.
"retail"
we
a
new
underwriting through
international network of offices in the United
Canada and
individual
through
branches. This
a
built
up
to
I
this
private wire system to all
headquarters of
activities has
behind it,
directly connected
a
our
expanding
during three-quarters of
I
a cen¬
tury of service to investors.
Bache
I
Co.
&
Founded 1879
MEMBERS
AND
NEW
YORK,
OTHER
MAIN
AMERICAN
LEADING
AND
TORONTO
STOCK AND
STOCK
COMMODITY
EXCHANGES
OFFICE: 36 WALL STREET, NEW YORK 5
TORONTO:
360
BAY STREET
•
HAMILTON: 20 KING STREET EAST
I
Empire 8-4871
•
Canadian
for
lack
recession,
•
Geneva
•
Paris
L
(Affiliate)
•
of
fell
At the
Mexico City (Correspondent)
J
a
forward
time I
are
thaf resumption of
a rate of in demand for goods and services
equal to that of recent indicates they are merely dormant
years is too much to expect, but —not dead. You may ask why we
then few, if any, of them expected should worry about inflation at a
the economic surge which followed time when the economy is in the
the
1953-54 recession.
doldrums.
confidence.
Recovery Depends
Perhaps
on
for
us
on
is
simple:
way.
of the consequences of the excesses
of the inflationary boom through
of the timetable of any recovery.
The timing and extent of any up¬
turn for the Canadian economy
will
depend to
which
are
large ex¬
tent on the trend of activity in
the U. S. and more especially on
favorable export prospects. Can¬
ada needs to take a good look at
its international trading position.
This, in my opinion, holds the
key to resumption of economic
growth. No significant upturn can
be expected until the export out¬
look improves.
You
will
a
very
gather
from
what
we
have just passed.
If
.
.
of
more
serious recession in the fu¬
ture, then we will have to make
greater effort than we have in
the past to avoid policies which
are inflationary in character.
a
Warns
Against Unsound
Measures
Merely because
I
pressure
is
from
no reason
unsound
a
why
we
are
business
we
economic
under
decline
should adopt
measures.
and
a
in government spending
certain amount of deficit
financing is probably unavoidable
year
circumstances
a
•
•
.
Government of Canada Bonds
worn-
Dealers
Treasury Bills
Municipal Debentures
Corporate Bonds and Shares
Direct
private wire with Goldman, Sachs & Co.
20 Broad Street, New York 5
•.
EQUITABLE SECURITIES CANADA LIMITED
Member
of The Investment Dealers* Association of Canada
EQUITABLE BROKERS LIMITED
Member
-
level. In
gloom
60 Yonge
Street, Toronto, Canada
these
talk
hear would seem
loss of perspective.
timetable
r
of The Toronto Stock Exchange
Head Office
will not be far
the
you
indicate
Distributors
Provincial and
to
of any recovery
MONTREAL
U.
•
S.
WINDSOR
An
increase
years
record
a
•
we
to minimize recessions and to
prevent them from being repeated,
and possibly
developing into a
have said that I feel the Canadian
Underwriters
ac¬
than it is to
try to stop it once it gets under¬
Today we are suffering some
comment
the question
the moment it looks as if over-all
The
answer
tion before it starts
Exports
further
a
would be in order
Despite
that we could
not expect a continuous upward
growth trend and 1954 have taught
us that we must
expect dull pe¬
riods as well as bright ones.
At
«
The
it is easier to take corrective
grounds
dents of business have been
which
sound
Inflationary forces have waned,
same
pinched somewhat but, as I pointed
out earlier, total economic activity
continues at a high level. About
all that has happened so far is
that we have stopped growing.
While this is disturbing, one can¬
not say it was unexpected. Stu¬
activity this
Jackson 8-4281
which
growth
we Canadians are
Some industries may be
well off.
short
London
economy
the
ing
EXCHANGES
from
again take place.
•
gather from what I
have said that in my opinion there
are
no
expansionary influences
sufficiently powerful to give the
thrust in 1958.
of facilities
base
can
will
do not feel that there
wide range
solid
growth
but the fact that prices have con¬
tinued to rise in the face of a drop
of projects from 1957.
Still "Well Off"
You
holdings.
broad market
Canadian
States,
Europe, it is widely distributed in small,
Our Toronto office is
our
I
our
a
house in order, to con¬
position and to build
our
future.
Predicting the timing and
extent of any upturn is hazardous
business. There are so many un¬
known factors.
Some economists
If the
•When
presents us with an opportunity.
The challenge of the recession is
ening in business activity in Can¬
Recently a writer in a U. S.
ada,
particularly
if
industrial
business publication suggested that
production in the U, S. continues
the recession and inflation were
to drop.
Generally, however, I
That, of
look for business activity to stay running neck to neck.
around the present level, especi¬ course, is too strong a statement,
but it is correct to say that the
ally as we are only beginning to
seeds of inflation are still present
feel the effects of increased gov¬
and what we do now may result
ernment spending, and that this
in an inflationary trend in the
condition will prevail well into
economy, after a period of hectic
uncertainty of outlook con¬ growth and intense activity, is
tinues, business may cut capital going to have a chance to get its
breath, or second wind. The slow¬
spending further.
down is disappointing, but it also
a
Mrs. Grahame Johnson,
Credit Interprovincial, Ltd., Montreal; Mr. & Mrs. Telfer
Hanson, Burns Bros. & Denton, Ltd., Toronto
•
HAMILTON
Subsidiary: Equisec
•
HALIFAX
Canada Inc.
Convention Number
Hal
at
THE COMMERCIAL
and FINANCIAL
Murphy, Commercial A Financial Chronicle, New York; Jules P.
Dubuc, Belanger, Inc., Montreal;
Lionel Crevier,
Morgan, Ostiguy A Hud on, Ltd., Montreal
when
time
there is a large
unemployment, but let
us
recognize that they are infla¬
tionary in character and should
be kept within reasonable bounds.
Deficit financing on a large scale
discourages
saving and capital
formation, and if carried too far
a
to
amount of
the accumulation
of
sufficient
capital
of course,
stallations.
high
an
by small business is the
level of income taxes. Six
Mr.
Mrs.
&
apply only to
If
a
W.
M.
Reay, Nesbitt, Thomson A Co., Montreal;
Montreal; Ray Boutin, Nesbitt, Thomson A
in¬
new
machine had
new
25
CHRONICLE
estimated life of say
Pat
Co.,
Henderson, Calvin
Ltd., Montreal
Bullock,
Ltd.,
Lower
costs and prices would rise if wage increases exceed the
improve our competitive po¬ improvement in output per mansition in export markets. However, hour. Management has a respon¬
one has to be practical and recog¬
sibility to resist wage demands
nize that rigidity of wage rates not justifiable, and labor a respon¬
makes
a
material reduction
in sibility to keep its demands in line
costs difficult to achieve. But this with increases in productivity. In
does
not mean we
in business the current period we have some
should sit back and do nothing catching up to do
in order to
about costs.
I doubt if there is
bring productivity in line with
any organization where there is wages, but the result will be lower
not some inefficiency and waste costs and a sounder economy. The
and it is our task to seek it out cure is harder work by all of us.
also
into the
spending stream, but a substantial
cut in taxation is not practical in
light of the
spending
commit¬
ments of governments. In the cir¬
cumstances, perhaps our efforts
10 years,
might be given the op¬
depreciating it over a min¬
to earnings retained in the busi¬
imum of five years and a maxi¬
ness up
to say $50,000, and I am mum of 10 years—whatever period
convinced that such action would within this range suited his pur¬
solve some of the problems of the pose. But this is a matter of detail
small businessman.
and today I am only concerned
with the principle. There would,
Measures to Encourage
of course, be a temporary loss of
Capital Investment
revenue to the tax collector, but
I mentioned earlier that capital this is
Some
of
the It is a task in which each and
unimportant in relation to and eliminate it.
spending for new plants, machin¬ the objectives of cutting costs and price increases of the past year every one of us must participate.
ery, and equipment is of prime
have resulted from wage increases It is a much surer way of correct¬
encouraging capital spending.
importance in the generation of
Earlier, in discussing the out¬ not justified by a rise in produc¬ ing the recession than waiting for
over-all
economic
activity and look for the Canadian economy, I
tivity, and prices are bound to the government to bail us put.
that capital spending by business
suggested that no significant up¬
is declining. Is there positive ac¬
turn could be expected for the
tion which can be taken to en¬
Canadian economy until there is
courage new capital investment?
a revival of an expanding market
I think there is.
for our exports. This suggests that
Some years ago the government our export industries should in¬
used
the
device
of
accelerated
tensify their sales efforts and that
depreciation to encourage expan¬ we should be seeking ways and
should
sion of defense industries and the
means
results
competition. Perhaps this
an appropriate time for
country to improve facilities
for medium-term financing of Ca¬
nadian exports. Even in the most
prosperous
times certain indus¬
could start the
once
inflationary spiral
again.
Increased government spending
raises the specter of higher taxes
in the future, and taxation is al¬
ready too high. The difficulty with
a rise in government
spending is
that there
from the
to be
seems
new
no
retreat
level which is estab¬
lished.
Everyone would like to
in
taxes,
and
would direct
be
broad
a
more
pay
less
tax
cut
money
directed
months ago I suggested that spe¬
cial consideration should be given
reforming
provide busi¬
ness
with greater incentives to
expand. I appreciate that tax re¬
lief for business only would not
be politically popular and I am
not suggesting a general tax cut
for business, but rather tax de¬
vices which
ness
will
not
About two
dicated
under
weeks
in the
that
the
special
business.
In
assistance
busi¬
this
I
the
mentioned.
than it is
loan
equity capital is greater
for loans. In fact, more
funds would
be
available if
small business had adequate
to
sums
not
an
spending.
am
vestment
suggesting
a
incentive, applicable to
particular types of projects under¬
taken within
equity
a
definite period
of
time. The accelerated rates would,
capital and the greatest deterrent
assist
to
exporters
our
to
and
Company
LIMITED
meet
Members
would be
this
tries have found themselves at
a
disadvantage compared to their
foreign competitors. The prospect
is
that
the
increased
the
and
important
present
connections
of
and
see
terms
aside
capacity
in
when
well
as
of
as
I
335
Bay Street, Toronto, Canada
idle
is
EMpire 2-1485
export
D.R. ANNETT
J. W. ANNETT
T. A. W.DUNCAN
in¬
Export-Import Bank
Washington
how
there
Canadian
dustries. The
Corporation Securities
STOCK ORDERS EXECUTED
may
it-worthy customers ought to be
turned
Municipal
retaining
in
exports. Certainly no cred¬
our
Dealers in Government,
of Canada
export
further diversification
a
The Investment Dealers' Association
availability of
become
fostering
in
reasonable
on
will
future
near
competition
markets,
credit
general
liberalization of depreciation al¬
lowances, though there may be a
case
for
this.
Rather, I regard
accelerated depreciation as an in¬
But the need of small business for
additional
we
we
tives—a reduction in costs and
small
connection
was
equipment,
increase in capital
question of special loan facilities
for small business
now
spent on
still have
plants which are using ob¬
solete equipment and this is re¬
flected in our costs.
By encour¬
aging companies to modernize we
can achieve two desirable
objec¬
has
question
to
Could
device
same
Despite the huge
new
a report
which in¬
the
beneficial.
many
government
consideration
the
modernization of exist¬
ing plants?
ago
press
were
use
encourage
expansion and create jobs.
appeared
of
encourage
owner
tion of
Annett
at
tax structure to
our
the
is
an
example of
special export credit arrange¬
ments
can
benefit home industry.
Similar credit facilities should be
available
Canadian
to
exporters.
However, consideration should be
'
Canadian
Securities
•
A
.
■
given to devising
;•
of
and
means
enabling existing credit organi¬
zations to do the
establishing
ANDERSON & COMPANY LIMITED
ways
either
a
institution. In
government
case,
will be
job rather than
new
support
Enquiries invited regarding Canadian
Government, Municipal and Corporation Bonds
Preferred and Common Stocks
required.
TORONTO
Costs and Prices Must Be
A. L. Anderson
Reduced
i
In
A. L. Howard
conclusion, let
about
prices,
B. H. Mason
productivity.
M. D. Cox
-
P. S.
stantial
cost
INVESTMENT DEALERS' ASSOCIATION
Despite
falling off in
and
a
a
Toronto
Montreal
with
EM. 3-8103
UN. 1-0111
which
word
and
leveling
a
sub¬
sectors,
rather than the rule.
basic need is for lower costs
correspondingly lower prices
would
induce
consumers
and business to expand their pur¬
chases.
Bankers Bond Corporation
Limited
some
Business Established 1912
price adjustments have
the exception
Yet,
OF CANADA
wages,
off in over-all demand and
Crysdale
Members
THE
me say a
costs,
44 King Street West, Toronto
kitchener
london
hamilton
Members of
The Investment Dealers? Association of Canada
The Toronto Stock Exchange
THE
26
Thursday, July 3, 1958
and FINANCIAL CHRONICLE
COMMERCIAL
(
Mr.
Mr. &
Fred
Mrs.
Thompson,
Mills, Spence & Co., Limited, Toronto;
&
Mrs.
David
B.
Mr. & Mrs. John Memory,
Midland Securities Corpn., Ltd., London,
Weldon,
Mr. &
Mrs.
Continued
cussing,
from page 8
a
\
.
Deposits Up $707 Million
Canada's Monetary and
Economic Statns
materials
for
demand
sustained
and labor in Canada.
Sees Encouraging: Signs
Another
encouraging sign is the
retail
buoyant
has
which
trade
upward trend since
last fall. Still another is the index
been
on
an
production which
upward at the first of this
reversing
a
trend
that
in February, 1957. It could
industrial
of
turned
year,
started
,
I
1957, mortgage lending under the
it, let me remind you that National Housing Act. The total of
restrictions were in force these loans on the books of the
see
credit
good part of 1957. The Bank banks on May 7, 1958, was
of Canada turned to easier money million, an increase of $115
for
$622
a
mil¬
well be also that business inven¬
tories, which have been
tion
reduction
net
of
time, may be on the
starting up again. If so,
lead fairly quickly to a
production,
policies in August and this became lion in the year. During the whole
in a posi¬ quite clear in September and of 1957, the chartered banks ap¬
for some October. Since then the money proved loans amounted to $173,point of supply has been expanded and 451 million for construction of
that could short-term ^interest rates have 15,695 new dwelling units. They
turnup in dropped
considerably
although loaned an additional $30,600,000
in¬ long-term
employment and
are
no
they
hopeful signs—and
These
than
more
assuring,
but
our
signs—are re¬
economy
29,998
home
improvement
projects under the National Hous¬
Act.
The chartered banks
These monetary factors, how-; ing
were
the
biggest
institutional
ever,
have not resulted in in¬
lenders
under
the act
of 1957,
creased bank loans. General loans
in Canada of all charatered banks both in number of loans approved
rates
fairly constant.
come.
is so
sensitive to outside influences that
have
remained
well
as
with
it
cause
year.
is
to
our
mutual
1
TRADE
domestic branches in the year.
This
FOLLOWS THE
leads
FACTS
physical growth of banking
another
to
me
subjeqt
I
would like to discuss—automation
in banking.
that
sume
mation
standards at highest level of
efficiency. One thing is certain:
automation will not destroy the
personal touch that has featured
Canadian
banking for so many
years.
I
would
like
that
the
also
automation
to
make
it
to
both
and
men
women
greater
mechani¬
opportunity to advance by releas¬
zation of their branches. They in¬ ing
them from purely
clerical
creased their staffs by 46%, from work for more interesting, chal¬
and
rewarding
tasks.
41,971 to 61,350 and their total lenging
salary bill went up from $87.2 There always will be room in
million to $188.3 million a year or banking
for
brains,
drive and
initiative.
115.9%.
;
•
Continued
from
page
9
In Attendance at I. D. A. C.
Convention
a
It is reasonable to as¬
high degree of auto¬
be
will
achieved
CHAMBERLIN, R. F*
CAMUS, RAYMOND*
Savard & Hart Inc.
Nesbitt, Thomson & Co., Inc.
Montreal
Boston
CASCADDEN, H. A.*
Annett & Company
CHARRON, ANDRE*
Limited
Credit Interprovincial Limitee
Toronto
Montreal
CASGRAIN, R. B.*
Casgrain & Company Limited
CfflPPINDALE,
Montreal
ALAN
Calvin Bullock Ltd.
Montreal
•Denotes Mr. and Mrs.
within
point of view of bank customers
and bank employees.
A
_
Electronics Seen Answer
The present problem
chartered
banks
facing the
be
can
~
YORK. 0*
There has been a tre¬
mendous expansion in banking in
recent years, a great increase in
the number of customers who use
No country on earth buys more U. S. goods and services
Canada. No other land is more eager than Canada to find
than
S.
markets for its products of field, forest, mine and fishery. To
help U. S. and Canadian businessmen in expanding their opera¬
tions on both sides of the border is among our main aims
as one of the world's
larger banks. We can give you the facts
about Canada on which your business can move forward in our
country. Write to our Business Development Division, 25 King
Street, W., Toronto 1, Canada.
banking
facilities ' at
an
everincreasing rate. Despite additions
We do not advise
in the field
regarding securities.
,
„:
THE CANADIAN BANK
OF COMMERCE
Angeles
Resident Representatives
and
more
—
Chicago
than 775 branches
Seattle
aids,
to
high standards of
service, the speed and the ac¬
curacy, that Canadians have come
to expect of the banking system.
banks
maintain
The
are
hard-pressed
answer
can
posted
by
would
seem
to
of electronics, where
be sorted and ledgers
automatic
across
Spejfc & t0'
Mills.
lie
machines
^don'
TORONTO
WONT*
times
faster
than
those
manually operated and as nearly
as
a
machine
can
-
be.
4
Dallas
Canada
branches
banks
in
of
Canada
the
chartered
increased
by
35.8%, from 3,355 to 4,556. During
same years,
the number of
deposit
accounts
increased
by
those
„
Toronto
Members i
ESG'
&Co<
#
many
.
Portland, Ore.
—
tpiaudwith
the
cheques
of
•
BROADWAY
mechanical
more
many
the
errorless
Canada
•
us
N.V.
to bank staffs and the installation
of
In the past 10 years the number
Head Office—Toronto 1,
CO*
stated
briefly.
Los
of
banking will not
displace members of our staffs.
On the contrary, it will present
I would like to discuss it from the
•
clear
introduction
in
banking in the next few years and
San Francisco
ad¬
and total amount.
on
4,556 in Canada and 149 in foreign
countries, an increase of 102 in
•
ap¬
ing
10-year period, the
should be guarded
New York
are
must
in
vantage to keep Canadian banking
chartered banks spent millions of
dollars in extending the
we
customers
plying automation. We are sure
they will cooperate with us be¬
credit, practically doubled until
they now exceed 700 million a
In that sarqe
our
for
May 7, 1958 totalled $4,383
The past year has seen growth
in apprais¬ million, $153 million less than the
corresponding
date in 1957. The in several directions within the
ing the economic outlook without
banking system. The number of
considering the world beyond our reason is a general lack of demand
deposit accounts reached 11 mil¬
borders, particularly the United for bank credit, arising from the
lion, an all-time high. The number
States. If I am correct in believing economic factors I have been dis- of
branches
on
March
31
was
we
work
debit
deposits.
Turning to the monetary picture
banks,
conscious of the fact that
all deposit accounts,
The total
Canadian
The use of the cheque has be¬
deposits of all chartered banks on come
so
widespread
that
the
May 7, 1958 were $11,303 million,
banking system handles 2,500,000
that American business conditions $707 million higher than the cor¬
every
working day and, on the
are
date
a
year
ago.
showing some signs of im¬ responding
average,
each is handled eight
provement — not over the whole Personal savings deposits stood at times before it is cleared to the
field of business but in some im¬ $6,601
million,
an
increase of bank where the drawer's account
portant lines — this could have a $423 million in the year.
is maintained and is debited to it.
most helpful effect on the econ¬
One
field
of
bank
lending
omy of this nation.
showed a substantial increase in
Same Personal Touch
as
chartered
lion and the number of entries in
as
But, while loans have not been
increasing, that is not true of
the
We,
sort of recession com¬ 46.6%, from 7.5 million to 11 mil¬
plex.
Ont.;
Irving Glick, Philadelphia
Mills, Spence & Co., Limited, Toronto
stock
Escbangc
Stoc
TOEOtfTO
Convention Number
THE COMMERCIAL and FINANCIAL CHRONICLE
D. C. Harvey, Daly, Thistle, Judson & Harvey, Toronto; S. E. Nixon, Dominion Securities Corpn.,
Limited, Montreal; Mr. & Mrs. Dudley Dawson, Dawson, HannaPord Limited, Montreal; Mrs. S. E. Nixon;
Mrs. D. C. Harvey
A.
McMillan, Nesbitt, Thomson and Company, Ltd., Toronto; J. R. Learn, Nesbitt, Thomson and
Company, Ltd., Toronto; R. F. Chamberlin, Nesbitt, Thomson and Company, Inc., Boston;
George Vilim, Nesbitt, Thomson and Company Ltd., Montreal
v..-,
,
DAWSON, DUDLEY*
CLARKE, JOHN A.*
FERGUSSON, NEIL*
G. Tower Fergusson & Co.
;
Wills, Bickle & Co., Ltd.
Dawson, Hannaford Limited
Toronto
Montreal
27
HARTNEY, JACK
HELBRONNER, J. J *
Financial Counsel
?f
Toronto
Harris & Partners Limited
•
■
Toronto
,.v
,
■
CLEMENT, MARCEL
Le
Devoir
Nesbitt, Thomson & Co. Ltd.
Montreal
'■v •;
FINNIGAN, EDWARD A.
Montreal
COLERAINE, THE
RT.
HON.
THE LORD
London, Eng.
Nesbitt, Thomson & Co. Ltd.
Collier, Norris & Quinlan Ltd.
Montreal
Montreal
Deacon Findley Coyne
Toronto
FLEMING, THE
DIXON, P. L.*
Harris & Partners Limited
Anderson & Company Limited
Kippen & Company Inc. V
Toronto
Montreal
v
COX, STANLEY*
Limited
Montreal
CRYSDALE, PETER*
Anderson &
-
Montreal
Toronto
DAVIE, J. H.*
Dominion
Toronto
Ltd.
Denotes
GIBSON, J. D.*
220
Gairdner, Son & Co. Ltd.
,
>
Bay Street
Toronto, Ontario
'
Direct
McLeod, Young, Weir & Co. Ltd.
Montreal
EMpire 4-5191
■
Connections
with
New
York
and
Montreal
-
GOODENOUGH, R. L.*
Quebec City
\'
GODWIN, C. E.*
r::
FALARDEAU, G.
Nly. and Mrs.
Investment Dealers' Association of Canada
Montreal
J. T. Gendron Inc.
*
*
Toronto
Wood, Guridy & Company Ltd.
Montreal
Securities Corp.
Members:
Toronto Stock Exchange
Investment Dealers' Association
ERTL, E. C *
The Financial Times
*: Toronto
Investment Dealers' Association
Quebec City
Toronto
DAVIDSON, MISS JESSIE
FRASER, MISS G. M.
GASSARD, H. L.*
Toronto
V
Established 1909
GAGNON, THE HON. ONESIME*
ELY, E. H.
Daly & Company Limited
LIMITED
v
Toronto
The Financial Post
j Montreal
page
New York
Toronto
DALY, R. A., JR.*
on
Merrill Lynch, Pierce, Fenner &
Smith
EGAN, VINCENT
Graham & Co.
Continued
y
MATTHEWS 6- COMPANY
FORRESTER, W. A *
Nesbitt, Thomson & Co. Ltd.
'
DALY, H. J.*
R. A.
Montreal
EDGECOMBE, J. R.*
Daly & Company Limited
Montreal
Forget & Forget Limited
Houston, Willoughby & Co. Ltd.
Regina
Toronto
J
Belanger Inc.
EBBELS, W. D.
Company Limited'
DALTON, W. T.
R. A.
Toronto
Nesbitt, Thomson & Co. Ltd.
Granby
Morgan, Ostiguy & Hudon Ltd.
;
HON. DONALD
FORGET, RUDY*
DUKELOW, JOHN*
CREVIER, LIONEL J.*
Halifax
Limited
Fleming & Company
DUBUC, JULES P.
Bankers Bond Corp.
Toronto
Osier, Hammond & Nanton Ltd.
Winnipeg
FLEMMING, P. R.
DOWNES, WALTER L.
,
Toronto
HITESMAN, R. C *
Toronto
Ottawa
Montreal
Toronto
COX, MURRAY*
Walwyn, Stodgell & Co. Limited
M.*
A. E. Ames & Co. Limited
;
1
Calvin Bullock Ltd.
Dominion Securities Corp. Ltd.
Toronto
"'v";
Montreal
HEBB, R. C.*
McLeod, Young, Weir & Co. Ltd.
'■
HENDERSON, J. P.
HICKS, R. C.*
FISHER, A. P.*
Canadian Dow Jones Ltd.
Toronto
^
;
Goulding, Rose & Co. Ltd.
Montreal
CONN, J. M.
•;
HAYMAN, JOHN L.
FISH, H. STUART*
DINNICK, J. S.*
COLVEY, DOUGLAS*
T
Vancouver
DIETRICH, W. M.*
'
Toronto
Thomas B. Read Company Ltd.
Lageux & DesRochers Limitee
Quebec City
•'
Daly, Thistle, Judson & Harvey
,
.
Wood, Gundy & Co. Ltd.
\
HARVEY, Q. C., & D. R. C.*
Findley Coyne Limited
Toronto
DesROCHERS, PAUL*
COLE, J. N.*
:
Deacon
-
Montreal
*
:
FINDLEY, J. REG*
DEAN, R. H.*
,
<
Gairdner, Son & Co. Ltd.
;
•
Toronto
7
GOODERHAM, PETER S.*
Wills, Bickle & Co., Ltd.
Toronto
Walwyn, Stodgell
&
Co.
f
GOSS, H. B.*
Goss and Company Limited
Kernaghan
Co. Limited
Investment Securities
GRAHAM, JOHN
Limited
&
Toronto
John Graham & Co. Ltd.
Ottawa
Members:
Toronto Stock
•
The
.
Exchange
Winnipeg Stock Exchange
T/je Investment Dealers* Association of Canada
GOVERNMENT OF CANADA BONDS
GRIFFIN, F. E.*
Greenshields & Co. Inc.
Bought
Montreal
—
Sold
—
Quoted
''
4
HAGAR, DENIS
j*V
Hagar Investments Ltd.
STOCK
ORDERS
EXECUTED ON ALL EXCHANGES
Victoria
•
-
*
2nd
'
HANSON, MURRAY
Floor, 67 Richmond St. W.
EMpire 4-4256
Toronto
EMpire 8-3871
Investment Bankers Association
44 KING STREET
WEST, TORONTO, ONTARIO
EMpire 4-1131
Washington
HANSON, TELFER R.*
Bros.
CANADA BUILDING,
233 PORTAGE AVENUE,
Burns
WINDSOR, ONTARIO
WINNIPEG, MANITOBA
Toronto
& Denton Limited
Members
.! HART, P. N.*
Dominion Securities
Montreal
THOMSON KERNAGHAN & CO. LTD.
The Toronto Stock
Corp. Ltd.
Exchange *
28
THE
28
Mr.
&
McCulloch, Osier Hammond & Nanton Ltd., Winnipeg; Ross Wilson,
Vancouver; Frank Parrot, A. E. Ames & Co., Ltd., Toronto
Mrs. Robert
&
COMMERCIAL and FINANCIAL
Mr.
A. E. Ames
&
Mrs.
E.
In Attendance at I. D. A. C.
Convention
Bankers Bond
London
Corporation Ltd.
JOHNSTON, GRAHAME G.*
Credit Interprovincial
Montreal
Walwyn, Stodgell & Co. Limited
Toronto
JOHNSTON, PETER
HOWES, D. Li.*
Harris & Partners Limited
Limitee
K.
'Grant Johnston & Co. Limited
Montreal
Toronto
HUDON, MRS. MARQUITA
Investment Dealers' Association
KAUFMANN, JOHN
Jackson, McFadyen Securities
Montreal
LACE, FRANK D *
Limited
Gairdner, Son & Co. Ltd.
Ottawa
Toronto
HUTCHISON, R. TRAVERS*
7
KINGSMILL, J. A.
Cochran, Murray & Co. Limited
Investment Dealers' Association
Toronto
Toronto
HUYCKE, E. D.*
New York
MATHESON, A. L*
*
Dominion Securities Corp. Ltd.
Bache & Co.
Kippen & Company Inc.
Toronto
Montreal
Lynch, Pierce, Fenner &
Toronto
NIXON, S. E.*
Montreal
Toronto
Dominion Securities Corp. Ltd.
Montreal
MEISNER, HAROLD G.*
LEARN, j. R.*
Nesbitt, Thomson & Co. Ltd.
Royal Securities Corp. Ltd.
Toronto
Montreal
LEBLOND, ROGER
O'BRIAN, LIAM S.*
Cochran, Murray & Co. Limited
Toronto
METCALF, H. E.*
L. G. Beaubien & Co. Limited
Equitable Securities Canada Ltd.
Montreal
Toronto
LECLERC, j. C *
OUIMET, ROBERT*
Dawson, Hannaford Limited
Montreal
MEYER, JOHN A.*
Leclerc, Incorporee
The Gazette
OSTIGUY, JEAN P. W.*
Montreal
Morgan, Ostiguy & Hudon Ltd.
Corporation de Prets de
Quebec
Quebec City
Burns Bros.
PAQUET, ROGER
Credit Interprovincial Limitee
Quebec City
MILLER, W.
MacTier & Co. Limited
Nesbitt, Thomson & Co. Ltd.
PARROTT, F. E.
Montreal
MacDONALD, W. B.*
A. E. Ames & Co. Limited
Toronto
MILLS, R. L.*
A. E. Ames & Co. Limited
of
& Denton Limited
Toronto
LEDDY, j. A.*
Bank
Montreal
MILES, E. S.*
La
Greenshields & Co. Inc.
Toronto
Wood, Gundy & Co. Ltd.
Winnipeg
Dallas
Burns Bros. & Denton Limited
MEMORY, J. D.»
Mills, Spence & Co. Limited
PATON, ROY*
Toronto
MacFARLANE, j. b.*
KNIGHT, DON*
Investment Bankers Association
NEWDICK, PETER*
Toronto
Montreal
KIPPEN, E. D. B.
JACKSON, W. C., JR.*
Chronicle
Montreal
LETARTE, L.-P.*
KING, C. G.*
Bank of Canada
Commercial & Financial
Royal Securities Corp. Ltd.
LANG, ALBERT G.*
Merrill
Andrew
MURPHY, HAL
MARTIN, IVAN A.*
Matthews & Company
Toronto
Mrs.
MURDOCH, G. E.
Belanger Inc.
Montreal
Montreal
HUMPHREYS, D.*
Toronto;
Montreal
Rene-T.
Ltd.
Limited,
Toronto
Smith
HOLFORD, W. D.*
Corporation
Montreal
Quebec City
Toronto
Securities
John Hayman, Goulding, Rose & Co., Ltd., Toronto
McLeod, Young, Weir & Co. Ltd.
J. E. Laflamme Limitee
Isard, Robertson and Co. Ltd.
Intercity
Ross, Knowles & Co. Ltd.
LAFLAMME, ANDRE
JARVIS, A. M.*
HOCKIN, THOMAS M.*
McDonnell,
MARSHALL, W. E.*
KNOWLES, j. H.*
27
J.
Armstrong, Montreal;
Co., Ltd.,
Continued from page
Thursday, July 3, 1958
CHRONICLE
Osier, Hammond & Nanton Ltd.
MITCHELL, D. W.*
Canada
Toronto
Pemberton Securities Limited
Ottawa
Vancouver
'Denotes Mr. and Mrs.
MACKAY, D. C.*
W. C. Pitfield &
Company, Ltd.
Saint John
Eastern Securities
MACKENZIE, j. K.*
Company
Limited
Dominion Securities Corp. Ltd.
Montreal
Charles H. Burgess & Co.
McALPINE, J. L.*
Est. 1910
Wood, Gundy & Co. Ltd.
Toronto
Government,
Municipal and Corporation
McALPINE, W. d.»
DEALERS IN INVESTMENT SECURITIES
Brawley, Cathers & Company
Toronto
Securities
SINCE
1909
McBRIDE, D. j.*
MEMBERS
THE
INVESTMENT
DEALERS'
Bell, Gouinlock & Co., Ltd.
OP
Toronto
ASSOCIATION
CANADA
OP
|
McCULLOCH, ROBERT G.*
Offices:
Moncton, N.B.
Saint
Halifax, n.S.
Predericton, N.B.
John, N.B.
(Head
Office)
Charlottetown, P.E.I.
Sydney, N.S.
Summersidei P.E.I.
Dartmouth, N.S.
Members Toronto Stock Exchange
Osier, Hammond &• Nanton Ltd.
Winnipeg
Investment Dealers? Assn. of Canada
255 Bay
Mcdonald, f. j.*
Gairdner, Son & Co. Ltd.
St., Toronto
•
EMpire 4-8471
Branch—Brantford, Ontario
Toronto
mcdonnell, e. j.*
Intercity Securities Corp. Ltd.
Toronto
for your investments
in the west
Mclaughlin, jim*
Wood, Gundy & Co. Ltd.
Montreal
BARTLETT, CAYLEY & COMPANY
McLEOD, DONALD C.*
carlile
&
McCarthy
LIMITED
Royal Securities Corporation
Toronto
Over 27 Years in Western Canada
mcmillan, j. a.*
Nesbitt, Thomson & Co. jLtd.
Toronto
MEMBERS
Geoffrion, Robert & Gelinas,
Incorporated
OF CANADA
Private
Wires
To
All
Edmonton
—
Leading Exchanges
Vancouver
<3?
Montreal
MACHUM, R. H.
Eastern Securities Company Ltd.
Fredericton
Offices:
Calgary
Investment Securities
-
McNEIL, E.*
THE INVESTMENT DEALERS ASSOC.
Direct
LIMITED
Ltd.
—-
Victoria
320 bay street,
toronto 1
Telephone EMpire 6-5221
MALLON, B. A.*
McLeod, Young, Weir & Co. Ltd.
Toronto
[uifgfiungjfar^fafiiinafigngrigffangnangipiitgRaniHigiianginiBgiigiBaiiaiia rajfflrnjrarafnjfnjpifn isisii
*1
Convention Number
Jack
Hartney,
Financial
THE
Counsel, Toronto; Mr. A Mrs. Douglas Colvey,
Montreal, Miss Jessie Davidson, Toronto
PEPALL, W. G.*
Canadian
ROSE, FRANCIS M.*
29
COMMERCIAL and FINANCIAL CHRONICLE
Dow
Jones,
Mr.
Ltd.,
&
Mrs.
Frank
Rose, Dow,
Jones &
Co.,
Financial
STAFFORD, E.
New York City; Mr.
Counsel, Montreal
Dow, Jones & Co.
Montreal
Cornell, Macgillivray Limited
Wisener and Company Limited
New York
Halifax
Toronto
Jennings, Petrie & Co. Limited
ROTHWELL, K.*
London
STEWART, J. M.*
A. E. Ames & Co. Limited
A. E. Ames & Co. Limited
Winnipeg
Toronto
Eastern
James Richardson & Sons
ROULEAU, ROBERT
Toronto
PAVEY, W. G.*
W. C. Pitfield & Co. Ltd.
POOLER, E. R.*
SWANSON, A. R.*
Co.
Burns Bros. & Denton Limited
Montreal
Toronto
PRATT, J. V.*
Equitable Securities Canada
Ltd.
Toronto
Equitable Securities Canada
Nesbitt, Thomson & Co. Ltd.
Halifax
Toronto
SYTHES, G. W.*
Goulding, Rose & Co. Ltd.
Fairclough Co. Limited
Toronto
WOOTTEN, P. A.*
WILSON, JAMES*
STANBURY, NORMAN
The
Grenier, Ruel & Co. Inc.
Stanbury & Company Limited
Halifax
Western
City Company
Limited
Toronto
Quebec City
SAURIOL, G. M.*
Toronto
,
WOOD, J. D.»
Ltd.
Toronto
RUEL, PAUL E.
Brettingham,
A. E. Ames & Co. Limited
A. E. Ames & Co. Limited
E. H. Pooler & Co. Limited
A.
Vancouver
Ltd.
WILSON, G. M *
Savard & Hart Inc.
J.
WOOD, J. D.*
Saint John
Montreal
ROY, ROBERT M.*
Montreal
Securities
S.
A. E. Ames & Co. Limited
1
WHITCOMB, J. I. M.
PHEPPS, S. B.*
Mrs.
WILSON, ROSS*
WELLER, FRANK G.*
Bell, Gouinlock & Co., Ltd,
PETRIE, H. LESLIE
&
Vancouver
•
SMITH, DEVON
J. R. Timmins & Co.
The Toronto
Montreal
Toronto
Telegram
PURVIS, A. BLAIKIE
SAVARD, J. E.*
Calvin Bullock Ltd.
Montreal
Savard & Hart Inc.
Montreal
RAMSAY, R. E.*
A. E. Ames & Co. Limited
TASCHEREAU, WING COM. G.
*
A.D.C.
to The Lieutenant-
Members
SCERBO, MISS CATHERINE
Court Reporter
Montreal
RAMSAY, GEORGE W.*
1
Investment Dealers' Association of Canada
Toronto Stock Exchange
Quebec City
Montreal
Brawley, Cathers & Company
Governor
TAYLOR, G. H.*
Wood, Gundy & Co., Inc.
-
New York
Stanbury & Company Limited
Saint John
SCOTT, ERIC*
J. H.
REAY, W. M.*
Crang & Co.
Toronto
Nesbitt, Thomson & Co. Ltd.
THOMPSON, D. A.*
SCOTT, W. J.*
Montreal
Gairdner, Son & Co. Ltd.
REEVES, R. L.*
Toronto
CANADIAN
Dominion Securities Corp. Ltd.
London
GOVERNMENT-MUNICIPAL-CORPORATION
THOMPSON, F. W.*
Mills, Spence & Co. Limited
SECURITIES
Toronto
Dawson, Hannaford Limited
SCULLY, H. D.*
Toronto
Nesbitt, Thomson & Co. Ltd.
RENAUD, CLAUDE W.*
Saint John
Royal Securities Corporation
Ltd.
THOMPSON, J. T.*
Molson Securities Limited
Montreal
CANADIAN
SHACKELL, FRANK
Montreal
Wood, Gundy & Co. Ltd.
Quebec City
ROBINSON, PETER L.
THORBURN, W. H. A.*
EMPIRE
3-5821
Mills, Spence & Co. Limited
TORONTO
Toronto
Goodwin Harris & Co. Ltd.
BANK OF COMMERCE BUILDING
SHAW, H. V.*
Toronto
Gairdner, Son & Co. Ltd.
Toronto
^Denotes Mr. and Mrs.
TRIGGER, RAYMOND*
Investment
Dealers'
Digest
New York
TURNEY, A. H.*
Locke, Gray & Company
Calgary
Harris & Partners Limited
55 YONGE STREET
TORONTO
VERMETTE, D. H.*
Savard & Hart Inc.
Cochran,Murray £ Co.
Montreal
LIMITED
VIDRICAIRE, H. J.
James Richardson & Sons
Member
Montreal
Investment Dealers' Association of Canada
VILEVi, G. C*
Investment Securities
Nesbitt, Thomson & Co. Ltd.
Montreal
Cochran,Murray £ Hay
WADDS, R. W.*
*8?
LIMITED
McLeod, Young, Weir & Co. Ltd.
Toronto
Member of the
Toronto Stock
WALL, A. E.*
Exchange
Confederation Life Association
Affiliate
Dominion Bank Bldg., Toronto, Telephone EM. 3-9161
Toronto
Hamilton
WARNER, W. V.*
Harris Si Partners Inc
NEW YORK
James Richardson & Sons
Edmonton
WELDON, DAVID B.*
Midland Securities Corp.
London
Ltd.
ICitchonor
London
30
THE
COMMERCIAL and FINANCIAL CHRONICLE
Thursday, July 3, 1958
I
^
l
Wip
■
':'4
'A
*/*§
*
R.
H.
"
imr:4
H.
Dean, Nesbitt, Thomson and Company, Ltd., Montreal President of the I. D. A.
Ely, Wood, Gundy &' Company, Ltd., Toronto, President-elect, greeting the steamer
at Murray Bay
Mr. &
Mrs. R. H. Dean, Nesbitt, Thomson and Company, Ltd.,
Montreal
C.;
at
Edward
the deck
Bill Marshall, McLeod, Young, Weir & Company Limited, Montreal; E. Spafford, Cornell, MacGillivray
Limited, Halifax, N. S.; D. E. Boxer, Burns Bros. & Denton, Ltd., Toronto; Peter L. Robinson,
Goodwin Harris & Company, Limited, Toronto
K. Johnston, Grant Johnston & Co., Limited, Montreal; Frank
Shackell, Wood,
Gundy
&
Company, Ltd.,
Quebec;
Alexander
Archambault, Nesbitt, Thomson and Company, Ltd., Montreal
The Honorable Onesime Gagnon, Lieutenant Governor
of Quebec, and Mme. Gagnon
Peter
W. G. Pavey, W. C. Pitfield & Company, Ltd., Montreal; Ed
Finnigan, Thomas B. Read Company, Ltd.,
Latham
Vancouver; Mr. & Mrs. F. C. Atkinson, Nesbitt, Thomson and Company, Ltd., Toronto;
E. H. Pooler & Co., Ltd., Toronto
Regina,
Ted
Pooler,
Burns, Burns Bros. & Denton, Inc., New York; W. D. Ebbles, Houston, Willoughby & Co. Ltd.,
Sask.; Mrs. James Helbronner, Toronto; John Conn,. Harris & Partners Limited, Toronto;
Jim Helbronner, Harris & Partners Limited, Toronto
The candid
camera
photographs in the I. D.-A. C. issue of the
COMMERCIAL & FINANCIAL CHRONICLE
Jules Blouin, resident
and prints may
Mr, dk Mrs. E. S. Miles, Burns Bros. & Denton, Ltd., Toronto
of the Province
were
taken by
photographer at the Manoir Richelieu,
be obtained from him at
a
nominal charge.
THE
Convention Number
31
COMMERCIAL and FINANCIAL CHRONICLE
•////////////////////////////////////////////////////////////////////////////////////////////////////////////////A
A. F. Francis &
Company
LIMITED
Members:
Montreal
Stock
Dealers'
Investment
Exchange
Association of
Canada
INVESTMENT SECURITIES
66 King
James Street
36
Street West,
Mr.
&
Mrs. H. E. Metcalf,
Equitable Securities Canada Limited, Toronto; Mrs. James Annett,
South,
HAMILTON
TORONTO
Toronto
A
Copy of our monthly
Investors' Digest
is
available,
request
on
WILLS, BICKLE & COMPANY
LIMITED
.
MEMBERS
THE TORONTO
THE
44 King
Mr. &
Mrs. David Howes, Harris
& Partners, Ltd., Toronto; Mrs. W. B. MacDonald, Toronto
OF
STOCK
DEALERS'
INVESTMENT
EXCHANGE
ASSOCIATION OF CANADA
Toronto
EMpire 8-3081
Street West
1
Ramsay Securities Co. Limited
Members
Investment Dealers' Association
197
BAY
of Canada
STREET, TORONTO
Telephone EMpire 3-2078
r
W. COSBY
LAMONT
Telephone EMpire 8-1729
>
LAMONT AND COMPANY LIMITED
MEMBERS
THE
OF
INVESTMENT DEALERS ASSOCIATION
OF CANADA
INVESTMENT DEALERS
Mr.
&
Mrs.
Jack
Gibson,
Gairdner &
Company Ltd., Montreal;
Mr. & Mrs. Carman King, Gairdner
DOMINION
BANK
BUILDING
TORONTO
j
Intercity Securities
Corporation Limited
Members The Investment
Dealers' Association of Canada
Telephone EMpire 3*5801
Walter F. Wilson
Arnold G. Plaxton
Edmund J. Mc Donnell
Nevin R. Adams
330 BAY STREET
Frank
McDonald,
Gairdner,
Son
Armstrong,
& Co.,
Graham
Toronto; Mrs. Ivan A. Martin,
Armstrong Securities, Ltd., Montreal
Ld.,
Montreal;
/
Andrew
TORONTO 1, CANADA
@FedFRASER