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ESTABLISHED 1839 In 2 Sections — Section 2 The Commercial and Financial Convention Number Chronicle Reg. U. S. Pat. Office . New York 7, N. Y., Thursday, June 30, 1955 Price 40 Cents ... S i i a Copy 2 THE COMMERCIAL and FINANCIAL CHRONICLE Thursday, June 30, 1955 OFFICERS 1955 -1956 PRESIDENT VICE-PRESIDENT John R. Hughes VICE-PRESIDENT J. D. Wood Royal Securities Cor¬ J. C. Mackintosh E. F. C. Kinnear & Nigel H. Gunn Company Ltd., Montreal G. S. Swindell VICE-PRESIDENT W. Rees Wood, Gundy & Com Carlile Limited, Winnipeg pany, & Ltd., Toronto W. Co., Ltd., Halifax VICE-PRESIDENT Bell, Gouinlock & Company, Limited, Montreal poration Limited, VICE-PRESIDENT C. Pitfield & SECRETARY- VICE-PRESIDENT Taprell TREASURER G. D. Sherwood J. A. McCarthy, Calgary Thomas B. Company Read Kingsmill Investment. Ltd., Dealers' Association, Vancouver Tor onto HONORARY PRESIDENT Wilfrid J. Borrie Pemberton Securities Limited, Vancouver HONORARY VICE-PRESIDENT Harold S. HONORARY TREASURER Backus McLeod, Young, Weir & Company Limited Toronto Royal Securities Corporation Limited, Montreal Convention Number THE 3 COMMERCIAL and FINANCIAL CHRONICLE Canada Set to Resume Growth Trend In be, retrospect 1954 turned out than the to was expected recessionary and Dominion Securities Corporation, Ltd., Toronto, Ont. despite influences parent first ap¬ in despite best After listing significant factors in Canada's economic background during past year, a Mr. Young gives favorable view of the outlook for 1955, and disappointing in the Fall, the total a Gross our National Product resumption of the growth trend in Canadian such matters construction second best equipment in our year (h) figures aggregate and measurements, however, masked many divergent trends within the economy itself. Activity in some areas was much reduced, in others relatively stable in and was plication. Among significant the factors in the year's results were: A the machinery inventories decline until about defense some expenditures one of decline the important in Slackness in pop¬ ulation—the increase being about 3%. post-war budget which contemplated a deficit. In and to for will total million in of force continued to expand. to whole a By and recurring oi marking would final was for the year even now underway and to regain a higher level of employment. This is contra-cyclical budgeting in op- with eration, and embraces the concept that although a balance of reve- 1953. nue (d) A gain of more than 3% in consumer expenditures—the serv¬ ice industries reflecting signifi¬ gains while expenditures on durable goods were in down. virtual failure in our wheat crop. too, shipments, were off. (f) A decline in personal saving of the bined .apt aimed 1955, prospects seem to indicate a resumption of the growth trend in the Canadian order with of about some 14% com¬ increase in cantly larger. Alternatively, ex¬ penditures by business on new Annual Convention Young at the 39th of the Investment Dealers' Association of Canada, Mr. June 17, 1955. period Canada tional sion $25.2 dition billion. Starting it is 1954 of work ing the periods to tern have been is high. This in no way alleviates than more forthcoming was the and of IN in a is, and the effect of the govern- Th to add to the of the public, was f lt th develoD substantial t Continued on page CANADA net labor force result- increased easily populaabsorbed. The in rate our our the of difficulties specific some expanencoun- and areas country from and has abroad, slowed the creation of job opportunities and has increased the Incorporated 1932 number of unemployed. ' That have we been able to weather the recessionary influences of the last year with Qiily output of this magnitude proves possible or not, Governmental fiscal and monetary an average policy is aligned to facilitate its accomplishment. ployed of about 1% is cause for satisfaction. It is little satisfac- an reduction in those Calvin Bullock, Ltd. 507 Place D'Armes. em- Montreal IN THE UNITED STATES CANADIAN STOCK SPECIALISTS Orders Executed on all Canadian Exchanges at Regular Commission Rates Traded in New York in or United States Funds CHARLES KING & CO. Members: Toronto Stock American Stock Exchange „ Canadian Stock Exchange ROYAL 61 BROADWAY BANK TORONTO, NEW YORK 6, N. Y. Direct Private Wires To TORONTO BUILDING and MONTREAL Incorporated 1952 ONTARIO Telephone EMpire 4-6407 Telephone WHitehall 4-8974 , Montreal Stock Exchange Exchange decline* , con- the a ment's deficit for the year ending over-employthere was more workers our was and in was ample allowed any rate and considerable expansion in the banks' security holdings. In addi- that we could continually and al- March 31, 1955 ways have enough jobs for all liquid holdings those wanting to work, particularly in a country where, as yet, the seasonal employment factor credit to meet the demand for loans that it tion, expect easier encouragement to enterprise, Cash reserves of the banking sys- industries, as a result of increasing competition both within the rather Whether from tered apparent that Polirv Policy than tion business Fi^ai Fiscal that ment, about from and Similarly toward an virtual of increase in steeply rising trend of activity and output is expected in order to produce that average for the year. a (g) Capital investment was off but still totalled almost 23% of our Gross National Prod¬ uct. Within the total, expendi¬ tures for housing were signifi¬ about 6% of war hesitation 1955 spurts time. unrealistic rected During this past year and currently, unemployment is one of the major social and political problems. For much of the post- being accumulated. The outlook, although not all we could hope for, seems to be promising. The "official" view as contained in the budget speech of the Honorable, the Minister of Finance, suggests a Gross Nafor be subject not Policy During 1954 and so far in 1955 monetary policy has been di- Unemployment again Product balance in growth. economy. higher than in inventories are Business levels of credit outstanding. ♦Address 4% some 1954. run, a at smoothing economic investment is estimated to be $5.8 billion, ference. is not necessarily "right," objective in the short term being either a surplus or a deficit . . cardinal the year 1955 . peril. of the trade (e) A reduction of almost 25% farm output as a result of a Grain For one and expenditures is desirable in the long Consumer expenditures appear to continue at a high level. Capital areas. cant Outlook for xr1 month of same be and to the about was indefinitely about $160 million, are meant to facilitate the economic recovery non- of the preceding year. It would be unrealistic to expect that Canada's expansion could progress at an even rate Age Security Fund) which totals output non-farm greater than the were firming in the a rapidly rising as but es- unemployment Canada, so Flexibility should principles governing our actions. The un ¬ employment problem and its re¬ lief is to be given an important place on the agenda of the forth-, coming Federal-provincial con- 401,000 seems to have occurred in March and was some 80,000 seemed the^ Summer indicate quarter, A gain of about 2% bor a somewhat indecisive our be can Monetary peak timated deficit (including the Old mulative. in la¬ income, despite the smaller number of employed, and reflect¬ ing higher wage rates in many (c) on These tax reductions and the average of those a $148 million ($207 full year basis), some the final quarter of 1953 and carried through the first half of 1954. Trends in Fortunately, confidence remained strong during the early employed and yet part of the year and the pattern significant rise in the amount of slackness did not become cuunemployment as the labor (b) A decline of only 1% in the he sonal and corporate income which, during the current fiscal year, was appear first announced a small modicum of tax cuts on both per- output. began doing so decline reasons The the we at work. on in and be adversely af¬ fected by offshore developments, we lose sight of competitive costs tion, however, for those seeking April 6, tabled con- begun late in mid-year. This agricultural sector. continuing rise budget brought down ox Employment basic¬ matter of production and distribution where Covers in his report enlightened private enterprise." The Minister of Finance in his and lower. associated with the still expanding rapidly. selective in its ap¬ was Prosperity 1953 was in and were Business tinued Such (a) of risk essential to still, in the aggregate, the hislory. its problem of investment fraternity is to reconcile people to "that limited factor than a and business of itself. ally is sees prospective financing, and Canadian bonded indebtedness. Concludes, basic the peak year of 1 9 5 3 but N. D. Young economy. attention labor Canadian fiscal and monetary policies, interest rate trends, as was $24 billion, about 2% lower responsibility to continue to try to provide a high level of employment and income. Further, it is not purely a government problem but one that requires the Retiring President, Investment Dealers' Association of Canada ; tne crop of , quarter and others 'our By N. D. YOUNG* the average, a better year on Calvin Bullock One Wall Street New York 13 COMMERCIAL THE CHRONicLE FINANCIAL and Thursday, June 30, 1955 Atomic Powei Needed to Meet Canada's Energy Needs a I would like to discuss with you effects broad the peactime the industry and atomic power on economy not convert the world where communism alone has failed. By O. B. FALLS, JR.* of Marketing Manager, Atomic Power Equipment Dept. Canada. you Political N. Y. Schenectady, Company, for well can Mr. Falls, predicting a 250% increase in installed electrical generating pacity for Canada by 1975, about says coming events ca¬ of nuclear use economies s p it the poured a n d w i 11 continue be poured O. B. time, and to plications, eration It is including interesting this power gen¬ other peacetime uses. and motion to a released only two mention that note picture, of which in money, scientific research, but it is still speculation. However, it is accompanied by the most sincere and flattering form of relief — people in both our coun¬ tries are investing a great deal of money on the assumption that at qualified give very you some ago, years the generation was strongly. This will idea of how rapid¬ ly progress has been made in the design of practical atomic power plants. the outlines general speculations will Naturally, You omy. I our true. come on not set myself Canadian econ¬ people here probably number among the top experts in that field, making any analyses of mine of even the superfluous. Most information my studies United more made is based people by States about on the in conditions in since economies have long paralleled each other to certain extent, I feel that our findings will present, with certain a modifications, the general outlook for Canada. Besides, you might be interested in hearing some of our plans just for comparison. Before we get into the actual discussion of the future of atomic power, however, I would like to show you a the motion picture to set my remarks. This for stage film, "A is for Atom," is a very basic approach, to the theory of nuclear fission and its various ap♦An 39th address Annual by Meeting won Mr. Falls the at the Investment Dealers' Association of Canada, Murray Bay, Quebec, Can., June 17, 1955. of whose very Now among has also been motion educational other into is it into aid does for the atomic today and the next more is as It commer¬ as heat as fit we project becoming more about or center interest of from where it properly belongs. "Ener¬ gy" is the key Word. Atomic energy is important only because all energy away is important, for abundant upon I believe, rests energy, the foundation of tremendous our productivity, and upon productiv¬ ity is dependent our whole stand¬ ard of living. In both the United States and Canada we have used to develop the highest living in the world— furthermore they are standards of living which are regarded not as energy (home continue to living it in If (such as comfort continually quantities of energy. does get one a engaged increasing rated to day supply per¬ almost were the day-tosun's energy. on the of Our heating was mostly by wood and by the sun's direct rays—again dependent on the current supply of sun's heat. Electricity was just a laboratory curiosity. In the h we of only a century literally completely depend¬ on day to day or year to supplies of energy, received year from the sun. We have done this, though, by cutting deeply into re¬ sources of chemical energy—coal, oil and gas laid down over mil¬ lions of years of the Earth's exis¬ standards of tence. achieved levels, but as directional accumulated capital energy in the tremendous reserves of coal, oil signals—always pointing upward. and W£ have gas. been Rates living high extraction of this field, feel off of stage it existing that is of the better game, to regard an foreseeable need rather or as a key to unlocking further development of our economies, although it will also do that with¬ out doubt. a What which of are will this tremendous 6 tion forces insatiable power? formation a the continuation First to in rate. 8 almost 2050 year figure. two a con¬ billion half one present world popula¬ is Six and in¬ estimates billion world the servative is times population. that I ideal not mean standards only the actual living, but also the of desired levels of or projected goals is subsistence mere the rise. By on subsistence far living above or level as the marginal- which exists so answer kets. has expansion of goods and mar¬ Russia's answer, up to now, the enforcement of a been socio-political system, which con¬ sists largely of rechanneling exist¬ ing goods and services. We have seen this traction system of lead to economies, a con¬ the and resultant dissatisfaction jucated However, there indication that Russia, is of sub- peoples. every too, is engaged in the application of BONDS atomic eration. STOCKS now communism Markets to energy One should of be power gen¬ main goals our to see it to plus atomic or net New York markets quoted YORK, OTTAWA, BELL WIRES TORONTO SYSTEM CONNECT AND TELETYPE Dominion Securities Corporation Associate 40 Member American Stock Exchange EXCHANGE PLACE, NEW YORK 5 Telephone WHitehall London, Eng. Calgary that is Mr. W. of Lest you just Yankee exaggeration, J. Bennett, President of Atomic Energy of Canada, Lim¬ ited, has released figures indicat¬ ing a 250% increase in Canadian installed electrical generating pacity by 1975—and this is a we ca¬ feel that conservative estimate. Where is all this power coming Naturally, for some time from? to come, much of it—in of it—will ventional be fact, most supplied power by con¬ generation sources, such as steam and hydro¬ electric installations. we of living, look at power. of However, if continually the to broaden are the base of our must we hard a our present sources of Palmer Putnam, author book "Energy in the ture," states that "the such standard take 'low Fu¬ of reserves cost' capital energy as the fossil fuels (coal, oil, gas, etc.) are small by comparison with the demands." If "flow cost" energy is going to determine then in our very economic life, the next 25 years, con¬ ventional fuels will have to carry more load than reports indicate they are capable of carrying. The hypothetical power systems of the future, in the main, can be sup¬ ported source only of by dramatic a new energy. Although you in Canada have large reserves of fossil fuels, and much untapped water power, your great spaces put you in much the same situation as we are, since transportation and problems tend to transmission lower the eco- that Continued on page 21 Monthly, the B of M's Business Review re¬ ports and interprets for you Canadian eco¬ OFFICES 1-702-3 nomic Ottawa con¬ think rate sumption! this Canadian economy request. OUR MONTREAL NY on as Philadelphia of each month of the the Montreal and Toronto Stock on DIRECT PRIVATE Boston kilowatthours electrical 1954 maintained in all classes of Canadian external -Stock orders executed NEW billion over power do and internal bond issues. Exchanges, income) the to this situa¬ tion is increased production, based on a wider utilization of energy —an of up — electricity—a 250% increase maximum prevalently today. The West's forty production Secondly, the standard of living of all countries is Index Translated into energy-power terms this vast economic structure will be sustained by one trillion, de¬ Available that suggest Board Production 42%. —up of all, population is growing at a world of of a seemingly for mand some create Reserve Purchasing—(disposable I the than space freed ourselves from sole ence atomic but atomic energy as an answer to the a ve actively am by the use of atomic energy the necessary power, at perhaps good of our work of transportation by foot, by sail, and by horse. These travel the help Estimate—pojo- 14%. up Industrial supply but hundred years ago we did most of Federal dynamism and growth to which I transportation, heat, and pro¬ of electrical power. A modes in cannot Product—up 37%. 43%. since I course, parallel growth of Bureau of Census Energy Of the Let two countries. ulation have just referred will be accele¬ spective on our increasing rate of using energy? Let us return to our concept that energy is used for fuels—fossil to are traditional Gross National produc¬ we improve our standard is essential that we supply How non-renewable use we and in use) electricity. wholly dependent power, in¬ investment. I feel, how¬ ever, that the word "atomic" shifts the heat decades?" two insistent whenever there discussion dustry, do annealing), of tion these it in transporta¬ use process furnace ex- duction • energy we an general ' economic structure question a at " our know it honors. shown picture houses public. "Where We in tion, where just energy? have Golden Reel Award at a cial and our production. uranium dynamic, economies, fuels—have been unbelievable. basis is growth. The Future Role of Atomic panding, the Film Council of America film This United States. However, has festival, do expert up as an of Incidentally, this film, produced by the General Electric Company, two countries, we our of many least In was of power — deal great Falls, Jr. application. Looks for increase in Canadian eculation been — atomic power like Canada? and our is into which has countries give you a few figures from ten-year estimates for the United States, keeping in mind always ulation. In this instance of States me power gen¬ erating plants in both U. S. and Canada, and gradual reduction ip costs of has to be spec¬ aside a United this is going to demand the aid of atomic plants. Foresees rapidly growing rate in the power considerations moment, what does the growth in population and the rise in living standards mean to the As imagine, this is a large or¬ der. Any state¬ ment Electric General of the United States and Canadian Affiliate and — Member Canadian Stock 4-8161 Toronto, Exchanges and trends. To receive copies published, write Head Office, Montreal. are Bank or any U.S. office Montreal Toronto 'pout Montreal Winnipeg Montreal or news they Vancouver Halifax New York - • - 64 Wall Street (2&ut-t»-(2o44t San Francisco - - - 333 California Street CHICAGO: Special Representative's Office, 141 West Jackson Blvd., Office: TtontmtU 625 BRANCHES ACROSS CANADA RESOURCES EXCEED $2,500,000,000 Convention Number THE COMMERCIAL and FINANCIAL Role ol Debt Management in I recently had an opportunity to the text of an address de¬ 5 CHRONICLE Canada's Economy distribution By HON. WALTER E. HARRIS* the debt. peruse livered to ciation members of this months several Asso¬ e ernment investment accounts held 25% Presit, n Canada's Finance Minister praises Mr. Young. He re¬ viewed in- in s h i building tional program, history and accomplish¬ over of t b o record. The E. Harris efforts investment the up dealers supply erated from the in of our gathering of savings gen¬ sensible thrift of our population and in directing these savings to places where they be can most usefully employed have been of great importance in the rapid development of our The economy. ment of made efficient capital our basic a employ¬ has resources contribution to rising standard of living. We all too the plines mechanics which a are take for granted to prone market cludes our fronted growth almost the of too brief made review reference a to oustanding efforts of members your Association in support of the National in true War Finance I are con- substantial operation and in issues new We We such new suspect that the markets of with that it is difficult to nitudes. require the mag- this is of elsewhere, judgment sound Bold, midity. as trading underwriting is it as be- and th® avoidance of unwarranted creative ti- talents leavened by the mature judgment of the experienced will pave the way for accelerating progress in the development of our financial techniques. than at important changes have occurred in the the major objective of debt man- composition of the Federal debt. agement should be to contribute *n 1935, 52% of the funded debt to the stability and growth of the had a term to maturity over 15 economy. It is also agreed that years; in 1946 this long-term comconsideration should be given to ponent had been reduced from both the short run and the long 52% to 26% and, as of today, only range ... agreement that consequences of Nevertheiess financing the !)as a in5-m * iy y Su \ shorter average term may be attributed in part to an altered nron- ♦ aeclsl0ns- -Neverineiess, ine prop er emphasis is worth finding. + a now, Minister of Com¬ Considerable has progress to cause From some encour¬ Treasury Bills and respon¬ opment of finance The sibility which has continued in evidence during the postwar period. The intelligent promotion of thrift during the years war and in our subsequent Canada Savings Bond campaigns has played an impor¬ tant part in stimulating the high rate of saving in the past and this has underwritten decade the great surge of capital devel¬ Canada. While efforts are not susceptible of precise meas¬ urement, nevertheless they have had profound influence on Ca¬ opment across results these of your character nadian and enterprise. of a money is but the whole story. A broad and responsive market in government securities of all types and the existence of the machinery which makes such a market possible, helps to de¬ by means no funds where they are most needed. The Treasury Bill program provides a Educational Program The I congratulate to want President your the Association and on willingness to place major emphasis on an Educational Pro¬ gram designed to promote better understanding both within your own firms and among the invest¬ your of the functions and of security markets. 11-conceived Educational public ing importance A w e do a great deal to and clarify the func¬ tions and objectives of your Asso¬ ciation. It will encourage creative Program can interpret ability and also good constructive both of which are es¬ ingredients in building efficient markets. Looking criticism, sential more ahead, the rate of capital invest¬ ment which will be the years required over to provide for Canada's growth is so great that we need to encourage the most efficient use of our domestic savings in A progressive every way we can. economy tal and needs flexibility of capi¬ competition for capital. manner management of the pub¬ in which lic debt the of illustration good can make a contribution in constructive adding to market apparatus. During the past decade there been rapidly growing agree¬ ment among economists and mar¬ ket specialists that the most ef¬ fect national program is one in which fiscal policy, monetary pol¬ has icy in debt and the same each force other. re-en¬ Inappropriate policies in one field may nullify attempts to maintain appropriate policies in others; all three need to be coordinated. fiscal policy is of "the Monetary in alyzed of Bank Parliament. Canada which are re¬ quired reading for each of us, but there is surprisingly little atten¬ tion devoted to the ramifications of debt management. has not developed As yet, there generally any issues market. Our I said to a be justly ord but none rest on •An Annual ers' fh our economy. in living with a huge funded debt has been com¬ paratively brief so that it is dif¬ ficult to construct a series of prin¬ ago We must con¬ ciples. It is worth noting at this point that the burden of our na¬ tional debt—that is, the relation¬ Harris at the 39th Investment Deal¬ Canada, Murray Bay, ship between the interest cost of servicing the debt and our gross national income — is^now lower for address by Mr. of the of that and prepare Meeting perform experience you his laurels. Association should proud of your rec¬ of us can afford to moment can stantly both Quebec, Can., June 16, 1955. new investors Serving Investor* Across Canada MONTREAL, TORONTO, WINNIPEG, CALGARY, EDMONTON, LETHBRIDGE, MEDICINE HAT, REGINA, MOOSE JAW, BRANDON, PORTAGE LA PRAIRIE, KENORA VANCOUVER, VICTORIA SASKATOON SWIFT CURRENT, KINGSTON, GALT, CHATHAM KITCHENER, ST. THOMAS, WINDSOR Established 1857 presentation developments are an¬ the annual reports of accepted philosophy as to the role that debt management can and key opportunities for tools Canadian is a free and active market in outstanding se¬ curities and a free and active new The Canada's growing placed in the spot¬ by the annual Budget to light Designed to meet work management direction and Investment Service other a better market for securities and to channel velop of the amounts of govern- ments for liquidity purposes. The increase in bank holdings has in the devel¬ market which convenience and economy, this standpoint of government securibanks have need for substantial provides a short-term and highly liquid employment for surplus funds. The expanding market for Treasury Bills has enabled the government to increase substan¬ tially the total of Bills outstand¬ ing with important gains in terms undoubtedly of public toward public sense a corresponding shrink - the holdings ties. gratifying progress has been made in broadening the market for aged a system itself, there are 0bvious advantages in large been campaigns it banking in broaden¬ achieved during the Victory Loan that the money supply. age in the market for short-term During the past year, very ing and preciable reduction in the bankheld debt because this would tend bonds. during the War. The wide¬ spread ownership of our debt supply, money con¬ mittee economy adjusted to its supply, that over period of years our expanding will require an expand¬ tinuing development of the mar¬ ket for government securities. made in recent years investors. that the economy Finance, I have immediate interest in the an too become enlarged money • ; is would be wrong to make any ap¬ In the past 20 years, There is general debt other of believe Others ing Changes in Canadian Federal Debt time since the first any World War. that the vol¬ bank-held large and that a substantial por¬ tion of it should be shifted to the a con¬ argue may of Canadian Treasury Financing As Young's co-ordinated fiscal, monetary and debt management pol¬ a by reviewing general economic conditions in Canada. accustomed to the come ma¬ From the government's point of Mr. demands. growing terial progress. view, Some ume disci¬ and underlie broadening the market for Canadian Treasury e proud of your W. continuation of efforts to meet Canada's capital to Reveals changes in Canadian Federal Debt in last two decades, and have good you reason Hon. bills, and calls for icy. that agree urges approximately 45%. has I years. and debt outstanding the of whereas today these holders have portfolios t h e perioa a financing and in war Approves the investment dealers' educa¬ economy. Calls attention demands. Association of 40 the Canadian up of the nation's the o n ments accomplishments of the Investment Deal¬ ers' Association of Canada in support teresting fa of War ownership II, the banking system and gov¬ by ago your d Minister of Finance, Dominion of Canada the of Just prior to World James Richardson & Sons Continued on page 26 THE COMMERCIAL and FINANCIAL CHRONICLE Thursday, June 30, 1955 Major Trends in Canada's Economic Growth As central banker, I am more a directly concerned curities of tne national the other tnsn ment the whh fiscal enectiveiy of in¬ vent a vestment tions in Mr. Coyne discusses central Canada: in¬ are terested. adverse effects e r e s in- Canada of the Canadian objectives o f monetary pol¬ icy relate to E. Coyne a whole, is these objectives, it out carry problems of the future economic envelopment of Canada. The activity in the int0 its struc- economy, and development, and particularly with aspects of economic growth and change. These same factors in provide which sions sides have your have to the environment investment deciAnd made. be be- such common interests, we reciprocal interest, for the a activities of the bank central in the monetary sphere will directly or indirectly have a bearing on your investment activities, and these in turn will have Commission 1975"— in mis¬ leading. If it suggested that I know what your investment problems will be in 1975, it promised more than I can deliver. My subject could be better de¬ have may scribed as been a somewhat review of some pos¬ sible features of economic growth in Canada, with a speculative eye ♦urno^ turned the The nntonlial crrnwth potential growth twenty years. rm on next Minister of Finance nvpr over in his budget speech announced that the Government a is going to appoint Royal Commission to study the the future. I have their on doubt no cover wish to no territory, than touch more this be very the decline has that been ductivity even portion entering the labor force will apparently balance off, so that the total force may about 50% in we Canadian also be projected as greater in 1975 than 1955. the In Canadian of The second field of Economy eco- economics ductivity of the economy per man Over the past quarter and employed. decades, and that are in$ny years a picture the indications the will continue to come. of Canadian tor all this of the the first fac- economy, population. for In building growth consider is the size to century in Canada this seems to have risen at about 2% per annum on the average, although individual years have shown marked departures from this, and the rate of increase of productivity has varied widely from one industry or occupation to another. From 1947 of the The population of the to world is said to have doubled be¬ crease tween the birth of Christ and year. the 1750 A. D. It took only 140 vears years to double a^ain. and onlv 70 to double again, and only 70 years to double the next time, if we may project present trends to 1960. The population of Canada is rising at a faster rate than that, year with ficult over an annual rate of somewhat lower than to' the 10 years, foresee next 20 in rise years. of 2.7% was The average in in in of man rapid mechanization and thp increase the inrrease rate per recent and in¬ per progress agriculture, nvprall overall nrnpro ductivity resulting from the shift in the proportions of the labor force engaged in agriculture corn- pared with occupations with a higher product value per unit of labor input, have perhaps made recent figures of increase^ in productivity greater than can be expected in future. But advances in inthat it is not dif- a the 1953 50% The in- Such at work a will ;ecent T^CeU\ continue decline to at than the rate evident in more yeaJs> about V% per vear aDOUt /2 o Der year. years Clearly, there might be a major change in thinking on this sub¬ ject. Already one hears talk of the possibility of a 30-hour week; perhaps a more attractive target would be that 1500-hour a something year, or between intermediate and the present 2000-hour in many industries, with lei¬ time taken more in the way year sure of longer vacations than shorter hours of work during the work¬ week. of In any the case, increase productivity dpsirpd bp tab-Pn of more benefits could, if nortlv ^ . form annual pay. ^ in thp r, leisure rather than more Gross National Product in material terms would to that extent fall short of the potential indicated, The Level Another of it is measures, in reco0iuz.eu poncy snouiu oe and assumption responsive auapt oroaa of more the for maxi- employment a will less continuously or period, this You tall may order. con¬ Person¬ ally, I am confident that the great depression of the thirties will never ment be repeated. Under-employof productive facilities on such Canadian Government, Municipal Utility and Industrial Securities a that society has scale is inconceivable with offices instruments tary policy stability cial of fiscal has Toronto, Ont. Ottawa, Ont, been same United tne be can western to purpo^v, States said Halifax, N. S. Hamilton, Ont. we nave Charlottetown, P. E. I, in monetary policy, to re¬ strain a boom and limit the spread of recession, a In considering in Canada our own possibility, indeed the probability, That of develop in large industrial communicate then- countries and effects to Canada, particularly affecting our and export industries imports in competing the — domestic ject to the fluences same as psychological in¬ associated with The relative are the recession abroad. impact Canada may be greater in the country of origin of than the is on recession, At such Stock Exchange The CANADIAN ted States. Such international dif¬ in anti-recession policy might have the result of acceler¬ ating structural changes in the Canadian economy, The mainte¬ of relatively higher rate activity in Canada than a in the outside world in such cir¬ cumstances would mean that in¬ dustries producing for domestic consumption would operate at a higher level than those producing for export, In any case, it is reasonable to expect that exports, though con¬ tinuing to be a major influence in our economy, will decline in importance relative to the whole. For example, if present trends continue, agricultural production will continue terms, but National to not rise as in fast & STOCK STOCK on Quinlan EXCHANGE EXCHANGE Limited Exchange $ Quinlan MEMBERS The Investment Montreal absolute as Product, and-not Continued Collier Norris Canadian Stock Exchange Toronto Stock it ferences passed. Members: time that, in the interests of domestic stability, fiscal and monetary policy here might have to go a bit farther than the ac¬ tion being taken, in, say, the Uni¬ WEST, MONTREAL 1 Royal Securities Company a possible Royal Securities Corporation Limited JAMES STREET witn market, Gros3 as fast so¬ MONTREAL Dealers as industries, and also industries which as a re¬ sult of foreign ownership or close contacts witn their opposite num¬ bers outside our borders, are sub¬ Collier Norris Distributors position must recognize tne we MEMBERS Underwriters tllv ove, past several years wide vari¬ ations Vancouver, B. C. St. John'*, Nfld. moo. in seen Edmonton, Alta. Saint John, N. B. of countries, Calgary, Alta. to con¬ tnemseives economic Winnipeg, Man. Quebec, Que. the economic expansion. along the road evolution now under¬ use ^nd mone¬ to promote and at: Montreal, Que. to come stand and is determined to milestone Canada-wide service, "ine other of overall . level sider Montreal mat riscai general economic ano a nance Employment I?11™ economic progress is that a over 244 ST. tne that from time to time recessions 1955. projection contains an implicit assumption that hours of prevail Public oe over poses. will high . pro- employed man amount indicated for no major factor in per pro- the rate of 2% per annum would produce a gross national product by 1975, at 1955 prices, of $55 billion, or more than double the labor imip arnwth is nomic growth is thp nveraUP nrnthe average pro Growth technology will continue, and in Canada we should also realize each year more of the economies of mass production for a growing domestic market. A straight jection of future increases in longer in the United States. Changes in the age distribution of the population and, within each age group, of the pro- expect. Life would dull if it were otherwise. of the last the Annual Meeting of The Dominion Mortgage and Investment Association, Montreal, Can. very and on after-dinner from what will apparently be concen- tinues few broad Even Mr. Coyne, at out enanges serve apparent here for several decades, and aspects in the course speech. I come armed with more questions than answers, and am confident only of one thing, that the future, even the relatively near fu¬ ture of 1975, will turn out to be in many ways quite different a 0f crease ♦Address by o^imon monetary ditions, largel y in urban areas, if the proportion of the population living on farms con- finance, we can see tremendous changes if we look back over past The title originally given to my mvoiveu. aiways magnitude or what shorna me noiicy tiated field, and look far wiu do little upon monetary policy, both conception and in detailed op¬ eration. remarks—"Investment will broad Ver,y trespass ence in wm oe Cana- m principle tneie or done, uotn and to ocemS opinion particular oe play large role in financing crease influ¬ an mere oi trie or anu if ratner than narrow tecnrncai pur¬ a ture occur, envision over umnig cap¬ but to ixsing oe- icvei uiiieienees less dependence of ^ to pre¬ depression, moderate isaturany, Canadian enterprises. study and keep in touch with the general level of to necessary future by but wheL.^r only temporary rece&Sions in ac¬ in tie economy as To large industrial countries, ital. Looks to Canadian financial institutions to effective the in thus reducing the relative need for foreign economy, functioning of J. Points out likelihood of nut unemployment a wnen per exports. Says financial growth will accompany* physical growth on The t. Canada of recessions on holds view the effects will be diminished in wider field of common yonu ua a a v e productivity average employed; and (3) the level of employment. man institu¬ ment (2) the major prevent features of the economic growth and investment in tivity banks tions h as (1) the size of the population; But invest- the remains monetary poncy win useu which institu¬ t question anu Governor of the Bank of Canada govern¬ forms and The By J. E. COYNE* se¬ Dealers' Association of Canada Toronto page 10 Convention Number Observations I doubt add can there the over made by that to the is I much politicians, nessmen, The President, busi¬ the Minister Trade C Toronto-Dominion The and the presenting his views Admits All tnem As of on tic. side, 1955 every launch upward trend in spending and consumer new and 1954 capital investment. spends this I suoscribe. If I were the to the answer outlook in be ex¬ services even nigner 1954, Construction awards in the first question about business for in goods and on snouid year tnan Thus, personal more. penditures three one months substantially higher. Also of major importance is the more optimistic outlook prevailing in business /circles. were being absorbed. the This difficult most wheat of poses one problems "good," say but is of force. The an¬ of capital investment intentions earlier in the year in¬ dicated that capital spending nual survey again expanding, but the rate growth is slower than in earlier would increase and The pattern of activity is uneven. Some indus¬ tries are experiencing a more postwar years. favorable expansionary an ity evident throughout most of 1954 been reversed. The economy has that the estimate may be appear Now climate than others. of exports. Throughout the postwar period, have been three major have forces generating a high level of activity. These have been consumer spending, capital investment and exports. Let us take a brief look at these. month economic As first three than anything more spending consumer year, else was re¬ sponsible for sustaining a high level of activity in the Canadian All the indications are economy. will it that this be As year. a important again matter of fact, running ahead of a year ago. Despite in¬ creased unemployment, wage and retail been have sales salary income is up. This is due three factors. There has been to number of persons employed. Wage rates are higher in some industries and the number of hours worked has in¬ creased. Unless there are unfore¬ seen developments or major stop¬ pages due to strikes, the upward trend of wage and salary income a small increase in the should The continue. income shown reductions an¬ the question know, exports you increase an months of the each In the October. since last vide sufficiently high rate to pro¬ jobs for our expanding labor is ment reflection a current they were up 12%, reflecting increased demand for Canadian goods and materials. The business recovery in the United States and the prosperity of West¬ of has Europe would seem to suggest ern that the improved outlook for ex¬ But I will about exports ports should continue. have in to more say shown why greater brief examination of this __ _ the three"maj^or generating in the Canadian will rightly bode well ture. When it figures are that certain seems they that immediate fu¬ the for you economy, conclude available, first the quarter will have recorded gains national product, industrial production, personal in¬ come and consumer spending. The in the gross that picture sideration of vorable and program for Last in grain crop largely was re- extent reported. employment whether business will are or In of terms level of additional purchas¬ the year. more ♦An Rotary When the consumer has in his pocket, he money Club Ashforth to the Toronto, Toronto, Can. by address of Mr. show But stance, unemployment continues despite the rise in overall business activity. Addi¬ tions to the labor force are not troublesome Canadian the such that are jt is almost impossible to discuss economic trends in Canada with- But of different indus- 1 production " J" the experience is up. today's we tries shows considerable variation. our econ- displayed somewhat more stability in that we did not experience quite as much of a relative drop [n gr0ss national product, gut the recovery movement in Total manufacturing prowas up only slightly in duction that omy Mining has been responsible for a large part of the gain in industrial output. comfort took ^e. U' S: busine.fs this year bas bee" ?ndnon-durables. thls, was *argely attributable greater and more widespread to than In eral tendency worked hours before crease A Canada. business upswing, the gen¬ a is for per the average week to in¬ employment usually a in experienced Historically, there is lag between economic in the two countries. trends Per¬ haps this augurs well for the months ahead. If the present business momentum in the U. S. rises. tendency for the work-week to as have we , compared with a year This may carries on throughout the rebe due, in part, to fewer workers mainder of the year, it will be ago, has been evident. being on cautious toward reflected in Canada. short time as well as a attitude by employers uncertainties are the wheat situation and the farm out- look in Western progress made in the business trend the enlarging their labor force. Other For this rea¬ son, border C2. high, as there is no of widespread default. In fact, payments fairly promptly. being met are not but back g0 the very many DEALERS AND outstanding at the end of 1954 was equivalent to 11.7% of personal disposable inthe come' for year Let should be south of watched number of unions. A significant debt feature trend 1954 that was actually went down. can sales. Some of my friends, especially on credit, would probably argue that consumer debt is not high and that there those no who sell us turn to another question cause lender I for concern. suggest to you Continued on be of valuable assistance to those interested development of Canada and of benefit to suitable investments through which to growth. and Company, Limited Members of The Investment Dealers' Association of Head Office: Canada 355 St. James Street W., Montreal principal Cities of Canada of QUEBEC Government, Municipal, Corporation, Fabriques, 221 NOTRE DAME STREET, MONTREAL Nesbitt, Thomson and Company, 25 Broad Religious Institutions. Direct New York, Trois-Rivieres Quebec Ottawa St. Hyacinthe Shawinigan Falls Paris - Brussels Street, New York 4, N. Y. WEST I Sherbrooke Instal¬ held by retail dealers went up $29 million whereas that handled by the finance companies dropped $33 million. This is prob¬ ably a reflection of lower car OPPORTUNITIES IN CANADA in the industrial the of instalment ment paper Canada. The disposing of our of current interest, Our facilities into different categories —charge accounts, instalment debt owing to retail dealers, instalment credit of finance companies and cash personal loans of the banks, small loan companies and credit a As a f Branches in the School Commissions, Parishes and compared as a year earlier, Consumer debt is divided Specialists in Securities Originating in the Province years amount LIMITED UNDERWRITERS not does too evidence is closely. Nesbitt, Thomson «• the income debt consumer appear ing south 0f the border. Last year, participate in Canada's assured BEAUBIEN bur¬ danger point, level of income. recovery.^ Earlier, I mentioned mat out referring to what is happen- with 11% investors in selecting L. G. too a picture and that there are spotty areas in the economy. For in¬ will put some Budget is debt not that ing power into the hands of con¬ sumers during the second half of Federal the in is categorically with either High is a relative term whether continue to improvement over last year. let me remind you that there are uncertainties in the nounced it not or emerges from con¬ these factors is fa¬ expectations great as whopping question which I cannot a densome, or at depends on the do and u. s. economies improve- ment is the spotty nature of the lengthen, few minutes. a From smaller Canada The ties between reason not S. not a I said a moment ago that consponsible for the drop in the gross national product. It is too early sumer^debt"outetanTing""is high to make any intelligent comment in absolute terms I am sure it on the crop outlook in Western was never as high 'before j WQuld Canada for this year, but it has hazard a guess that it is also at been impaired by the wet spring, its highest point in relative terms, but perhaps not damaged to the Data in respect to consumer debt labor force. One the Western larger a by the U. year, year, overall tax to come disap¬ been disposal of its wheat surplus. a fected been sales of wheat adversely af¬ at x we has our abroad mdustrial exceeded. there Last it would now and have have to face, namely, how to keep the Canadian economy expanding force. Increased unemployment in the perhaps that is too simple an an¬ swer. It looks as if the Canadian face of the improve^ business Business confidence has aNstrong outlook has confuse^ many peoeconomy is headed for a new rec¬ on ord in gross material production, influence business spending Pie. They overldolt the fact that and but that does not mean we will especially on new capftUIVthj nuipber of persons with jobs have entirely smooth sailing. projects. Thus, new capital in- m slifhtly higher than a year ago The slackening in business activ¬ vestment is again functioning as and that the rise in unemploywould I word suiplus pointing we jumped yes or no. and to- belief that debt But a Canada than was in the previous year when con¬ high is better year for Ashforth billion, up $103 previous year. $326 million. aggressive sales drive abroad for Canadian an 1954 the volume the from answer that are will be men basis. historical a of $1.9 excess debt absolute in debt outstanding was consumer sumer goods and services. Predicts Canadian business outlook is favorable and notes expecta¬ tions business urges optimis¬ On high on High? consumer However, the rise than formerly, but decries complacency of export trend, and exports is and millions as ent of of at the end of in improve the level of Canada's exports. have been amount outstanding Canada, because of increasing domestic consumption, is less depend¬ Fi¬ of ister Ont. Toronto, Canadian business, prominent Dominion bank on executive stresses need to maintain and Min¬ nance. Bank, terms In of o m m e r c e and Consumer Debt Too Is By A. C. ASHFORTH* four months past Canadian Business Outlook on forecasts business economists, COMMERCIAL and FINANCIAL CHRONICLE THE wire connections between Montreal, Toronto, Ottawa, Hamilton, Kitchener, Lpndon (Ont.), Winnipeg, Calgary and Vancouver. Inc. that cau- page 18 COMMERCIAL THE and FINANCIAL W. R. Taprell, Carlile & McCarthy, Ltd., Calgary; Mr. & Mrs. E. F. C. Kinnear, W. C. Pitfield & Company, Ltd., Montreal; J. R. Hughes, Royal Securities Corporation, Limited, Montreal; Mrs. R. E. Parker, Ottawa; Walter A. Schmidt, Schmidt, Poole, Roberts & Parke, Philadelphia Jean CHRONICLE Thursday, June 30, 1955 A. E. Ames & Co. Ltd., Montreal; Harold Henderson, A. E. Ames & Co., Les Scott, Ross, Knowles & Co. Ltd., Toronto; Mrs. W. P. Spragge, Toronto; Ross Wilson, A. E. Ames & Co., Ltd., Vancouver Saint-Pierre, Victoria; BURGESS, J. M.* In Attendance at I.DJLC. Convention CROTTY, GORDON* Charles H. Burgess & Company, Toronto CARYER, A. BRUCE RALPH "Globe & Mail," Toronto BARTRAM, R. C.* ADAMS, N. R.* Intercity Securities Corporation BLACKMORE, McCuaig Bros. & Co. Ltd., Montreal Limited, Toronto BOEHMLER, E. W. The Investment Bankers' BAUSET, P. AITKENS, O. ST. P. Okanagan Investments Limited, Dominion Securities Corpn. Kelowna Limited, Quebec Association, Washington Burn Bros. & Denton BEAUBIEN, ANDREW S. ANDERSON, G. K.* A. E. Ames & Co. Limited, L. G. Beaubien & Co. Toronto Montreal Nesbitt, Thomson and Company, Limited, Fredericton BRADBURY, T. 3* , Brawley, Cathers & Company, Gardiner, Annett Limited, The Chase Manhattan New York Kingston Montreal - Financial Counsel, Montreal BINMORE, F.* Dominion Securities BARRY, G. A. BROOKES, J. E. Greenshields & Co. Inc., Corpn. Montreal Limited, Montreal Wood, Gundy & Company Limited, Montreal BIRD, H. J.* H. J. Bird & Grant Johnston & Co. Limited, Toronto Toronto V. S. Castledine & Daly, Thistle, Judson & Harvey, Toronto DATTELS, D. R.* Calvin Bullock Ltd., Montreal Dattels & & Denton Limited, DAWSON, DUDLEY* • Dawson, Hannaford Limited, Montreal CLARK, R. E. Calvin Bullock, New York DEACON, D. M.* Deacon Findley Coyne Limited, Toronto Fry & Company, Toronto DEACON, P. "Financial Post," Toronto Devoir, Montreal DEANS, M. C.* COLE, J. N. Bankers Bond Corporation Wood, Gundy & Company Limited, Montreal Limited, Toronto DePENCIER, J. Collier, Norris & Quinlan Limited, Montreal Collier, Norris & Quinlan Limited, Toronto Canadian Dow Jones DesROCHERS, P.* Lagueux & DesRochers Limitee, Quebec Ltd., Montreal DESY, Q.C., M.* COX, M. D. Quebec Securities Commission, Quebec Greenshields & Co. Inc., Toronto CREIGHTON, D. B. Nesbitt, Thomson and Company, Limited, Montreal CREVIER, L. J.* Rene T. Company Limited, Kitchener CHOAT, J. E* Bros. Limited, DALY, R. O., Q.C. Company COLVEY, DOUGLAS* Montreal V Burns Bros. & Denton COLLIER, W. T. K. BULMAN, R. C.* Company Limited, Vancouver Mrs. CURRIE, D. W. CLEMENT, MARCEL* BRETTTNGHAM, S. J.* Calvin Bullock Ltd., Montreal McLeod, Young, Weir & Mr. and Gairdner & Company Limited, BEVES, GEORGE E. Company Limited, Toronto CASSELS, D. K. CLARKE, D. BRAY, G.* James Richardson & Sons, BARLOW, L. E.* Denotes Limited, Quebec Toronto Royal Securities Corporation Limited, Montreal * Royal Securities Corporation BENNETT, H. R. ARMSTRONG, A.* "Gazette," Montreal Wood, Gundy & Company Limited, Quebec Winnipeg BRAFF, H.* James Richardson & Sons, Company Limited, Montreal Casgrain & Company Limited, Montreal Burns Toronto Bank, BELL, L. L. W. C. Pitfield & The J CUNNINGHAM, H. M.* CASGRAIN, R. B.* Nesbitt, Thomson and Company, CHIPPINDALE, ALAN Limited, Quebec ; Bartlett, Cayley & Company Limited, Toronto • Toronto ARBOUR, J. M.* CUNLIFFE, GUY S. Limited, Ottawa BELL, K. C.* ANNETT, J. W. Pierce, Fenner & Beane, Toronto G. E. Leslie & Co., Montreal CASTLEDINE, V. S.* BOUDREAU, J. E. BECK, GEORGE H. ANDREWS, G. C. Limited, Toronto Limited, Merrill Lynch, Cochran, Murray & Co. Limited, BOOTHE, WM.* Leclerc DIETRICH, W. M. Nesbitt, Thomson and Company Limited, Montreal DINNICK, J. S.* Incorporated, McLeod, Young, Weir & Company Limited, Toronto Montreal CRONYN, J. B.* DIXON, PETER Cochran, Murray & Co. Limited, A. E. Ames & Co. Toronto Montreal Limited, Drinkwater Weir & Co. Limited Investment Securities Greenshields Co Inc Greenshields & Co Underwriters and Distributors Canadian Members Montreal Stock Exchange Exchange Canadian Stock Exchange °f Security Issues Members of The Investment Dealers' Association of Canada The Toronto Stock 507 Place d'Armes, Montreal 233 Notre Dame StreetWest Montreal • * Harbour 6101 Oswald & Drinkwater Members Montreal Stock New York Ottawa Canadian Stock Sherbrooke Quebec Toronto Exchange Exchange The Toronto Stock 233 Notre Dame StreetWest / Ltd., • Exchange Montreal • Harbour 6101 Convention Number Haro.u Knight, Company, THE Fisher Walwyn, Toronto; Mr. Mr. & & Mrs. & Mrs. J. W. Co., L. D. M. Duggan Investments Ltd., Burns Bros. Denton Limited. & Montreal Edmonton ERTL, E. C.* DUBUC, J. P. EDGE, W. A. Belanger Inc., Montreal , Mr. and Mrs. Denotes Limited, ELLWOOD, W. J.* DUGGAN, E. M.* Kippen & Company Inc., Montreal > Raymond Trigger, New York City; D. B. Creighton, Nesbitt, Thomson and Company, Montreal; Mrs. W. D. McAlpine, Toronto; Mrs. T. J. Bradbury, Toronto; Don Clarke, Fry & Company, Toronto Mrs. Toronto; Mr. & Mrs. Jack Burgess, Charles H. Burgess & C. Nornabell, Charles H. Burgess & Company, Toronto; Charles H. Burgess & Company, Toronto , Noxon, DOWNES, W. L. * COMMERCIAL and FINANCIAL CHRONICLE The "Financial The Investment Dealers' Association, Montreal Times," Montreal EVANS, P. J.* Dominion Securities Corpn. Limited, Toronto FALLS, O. B.* General Electric Company, Schenectady, N. Y. FERGUSON, J. R.* Nesbitt, Thomson and Company Limited, Montreal FINDLEY, A. G.* a A. E. Ames & Co. Limited, Toronto FINDLEY, J. R.* A non-diversified mutual fund Deacon Findley Coyne Limited, Toronto investing in Canada and overseas. FISHER, A. P.* Walwyn, Fisher & Co., Toronto FLEMMING, P. R.* Report available Flemming & Company, Toronto FLOOD, T. C.* H. C. Flood & Co. Carl M. Loeb, Rhoades & Co. Members J^ew Tor\ Stoc\ Exchange and other Limited, Montreal FRANCIS, A. F. A. F. Francis & Company "We like doing business Limited, Toronto Leading Stoc\ and Commodity Exchanges FULLER, J. A. 42 NEW YORK 5, N. Y. WALL STREET System to Branch Offices, Correspondents and their connections in 90 Cities throughout the United States Private Wire Nesbitt, Thomson and Company, Limited, Montreal Wood, Gundy & Company Limited, Toronto . Canada's largest bank is in a GAIRDNER, J. S.* Gairdner & Company Toronto Limited, of The Investment Dealers' new Garneau, Boulanger Limitee, Quebec of Canada and exciting development. Business The Investment Dealers' Association, Toronto 1203 Phillips Square SHERBROOKE — TROIS-RIVIERES — power, Gairdner & Company Limited, Montreal QUEBEC — SOREL / transportation for any part of the invited. Write Business country. Inquiries Inc., Quebec GIBSON, J. D.* MONTREAL world wide basis; a list of information on labor, available factory sites; GENDRON, JEAN* J. T. Gendron of The bank's Development Department offers credit reports on a GASSARD, H. L.* 230 Notre Dame St. W. important city, hundreds of towns and villages, and many areas Toronto GARNEAU, EMILE Association preferred position to your from coast to coast, serve every Gardiner, Annett Limited, Members Royal" questions about business opportunities Canada. Branches, numbering well over 750 answer in GARDINER, G. R. Savard & Hart inc. with the FUNSTON, R. O.* . Development Department, The Royal Bank of Canada, Head Office, Montreal. GILMORE, J. D.* Royal Securities Corporation Over 800 Branches Limited, Toronto Central in-Canada, Cuba, the Bahamas, British West Indies, and South America, New York, London and Paris. GINGRAS, GERARD* Rene T. Leclerc Incorporated, Montreal GLASGOW, F. L. Savard & Hart Members: omHniui—■ Royal Securities Corporation Limited, Montreal Montreal Stock Exchange GOLDSMITH, J. H. Canadian Stock Exchange The "Montreal Toronto Stock Exchange Star," Montreal " THE ROYAL BANK GORDON, A. S.* Head Office: 230 Notre Dame St. W., Branch Montreal Royal Securities Corporation " Limited, Montreal GOULDING, E. D.* 40 Exchange QUEBEC Place, New York City, HAnover — TROIS-RIVIERES CHICOUTIMI — OF CANADA Offices: — SHERBROOKE ST. JOHNS, P. Q. PROVIDENCE, R. I. 2-6625 HEAD Goulding, Rose & Company Limited, Toronto MONTREAL Agency— 68 William Street, New GRAHAM, C. T.* Waterloo Bond OFFICE: New York ' , Corporation, Canada's Limited, Kitchener Continued on page " 28 / York 5, N. Y. ✓ 5" * " Largest Bank . -s 10 THE COMMERCIAL and FINANCIAL CHRONICLE Thursday, June 30, 1955 X Adjutor Savard, Savard & Hart Greenshields Continued from page & Inc., Montreal; Co. Inc., Montreal Henri Hal Murphy, Commercial & Financial Chronicle, New York City; J. F. Van Duzer, Mills, Spence & Co., Limited, Turgeon, fluctuations erate 6 This what Major Trends in Canada's picture in other incided much of before and passed export we any have may have ceased to .foodstuffs except years many all of value The exports of goods and services in recent years has been equivalent to about 24% of Gross National Product, as in the late 'twenties, and a projection of the trend suggests a ratio of about 20% by 1975. This would be con¬ sistent with a rise in exports of with compared goods by rise of National as 30% much 100% as or Product), 65% (against so that I am suggesting that exports and export industries will cease to be important, or that we will lose interest if in recognize, limits are production finished chief and of however,, to our na¬ to so in the which our growth and raw materials items semi¬ are export amounts the trade, available in efforts possible to widen greatly increased domestic requirements have been met. keep the open chan¬ with 20 some¬ large co¬ mineral new Canada. in raw prices, Over the while the popula¬ tion of Canada rises by 7 or 8 million, the population of the years, the other side of the United kind, has not much far¬ to so by consumption, may in¬ $30 billion worth of services and nomic 1975 picture, with increasing eco¬ maturity we will be able efficiently more of the finished goods hitherto imported, so that imports, rising by perhaps to produce 50%, will nevertheless grow less rapidly than total consumption ot goods. The overall effect should of such de¬ that the be Canadian economy would be more stable, on and because more dependent production for domestic use less effects exposed on a to the leverage small country's trade unemployment of mod¬ even compared as annum, extra United States creasingly Fifty years Canadian to not years and exhaustion sources, will be of Financial in¬ Canadian re¬ particularly of minerals, greatly accelerated. in in the great as assets the rate in to as in prospect from devoted formation per¬ A decline ent recent in the three last or ments, goods the or of excess services and Perhaps balance the of in difference the in their total the pres¬ ' feature of institutions invest ance by to handle of in¬ sums saved very large number of a out Accumulation reserves companies pay¬ chief of o channels life of have insurance been of the these two funds. velop into seem likely to de¬ third major channel a in the years ahead. An expansion of bank deposits is sometimes regarded as a symp¬ tom of inflation; indeed, some being Jamed for i World-Wide ... Offices located at Bldg. 360 St. James St. West from branches located in more than 20 countries, including 50 offices in the United States from coast MONTREAL to the SUN coast, CANADA has by private wires with our won LIFE ASSURANCE COMPANY OF universal and usefulness of its Main Office recognition for the diversity comprehensive life insurance and and Branches at Boston, Mass., Washington, D. C., annuity plans. The specific needs of Bloomfield, N. J., Princeton, N. J., and Oil City, Pa. children under care of men, women widely differing circumstances surely and effectively, and a are and taken variety of optional policy privileges offers valuable alternatives to safe¬ guard the interests of the beneficiary. '* Laidlaw & Co. Established 25* BROAD - * '■ --*v ' Over $2V2 billions 1842 and - < / paid to policyholders beneficiaries since 1871 STREET, NEW YORK 4, U. S. A. Members New York Stock * Exchange and other leading Exchanges SUN LIFE OF CANADA HEAD -" rutriTi OFFICE f Pension funds international our increases deposits and accumulation of savings in the form of insur¬ capital for¬ mation will decline by more than change of institutions with the pleasant continuous and sub¬ individuals. exports. over con¬ bank of rate financial marked come four imports will century is the development of and would disappear with grow¬ ing maturity, and with it the cor¬ responding deficit in the current of little doubt that both group financial years account a stantial levels, which have been unusually high. One would certainly expect that the net in¬ flow of capital from abroad evi¬ dent both. or of degree. investment assets. annual to may questions provide as increase of shareholders, are and be may brokers, banks and institutions TORONTO Connected increase tinue to grow on a sufficient scale investment not to seems saving total output. There are some signs that the proportion of Gross Na¬ ... 303 Dominion Bank of rate capital the Agri¬ There growth will accom¬ physical growth of the economy, though the annual in¬ capital on This an These tional Product become high levels of might take very of tributed the in A will form for arising resources in materials. the years. ahead. natural are of specialized financial service Branch recent of consideration 1955. dependent raw G. consumption expenditures as a percentage of personal in¬ comes, or an increase in the per¬ centage of corporate profits dis¬ more, foreign Perhaps the necessary supplies will be de¬ veloped at moderate cost from the virtually untouched resources of Africa, Asia and South America. If not, the rate of development of L. replaced. One can see the possibility of major questions of conservation policy and of the best utilization or large increase may also take place in the rest of the world. At present it looks as though the Beaubien, sonal taken once an with from erals balance, Over da our within also are up very sources velopments per the United States economy will be Andrew Montreal by a decline in the per¬ centage of income saved in Cana¬ the crease crease York; Ltd., forest re¬ sight of maximum annual cropping. Min¬ and go, sources tion, and goods New matched a pany trade such Ltd., Co., & settlement, at least of ther States is expected to in¬ by 50 million or more, and while our gross national produc¬ crease capable of chewing $300 billion worth, and nels of international trade. On Bullock, cultural . in Gross more not and there tural resources, and to the for export after wheat. a that must be demand for rising and discoveries next agricultural products in Canada. The exportable surplus may therefore be expected to decline, Calvin familiar would if strong foreign Economic Growth We Clark, Beaubien changed, at least in degree, materials, the rise in the consumption E. Toronto larger economic units. as Robert ' MONTREAL Convention Number G. A. THE Osburn, Pemberton Securities Limited, Vancouver; George Murdoch, Jules P. Dubuc, Belanger, Inc., Montreal people would define inflation as simply meaning an increase in the money supply as represented by bank deposits. This seems to me rob the word of any real mean¬ lo ing. Inflation sense means price it level is an true, in significant any rise in the general a while and this brought be excessive can, about by in the increase supply, it is clear that a growing economy requires more money for the transaction of money business and that the active money increase an in re¬ quirements need not have any in¬ flationary effect on prices. Sim¬ ilarly, it is to be expected that savings deposits as well as cur¬ rent banks over will the with balances account continue next to twenty our increase years and that monetary policy must be such as to facilitate such an expansion. One the possibility of changes in the outlets for invest¬ funds. It seems likely that can see ment residential mortgage least of new financing, at residences, will de¬ cline in relative importance. For Belanger, several years recently the net in¬ in the supply of housingbuilt, plus additions by conversion of existing prem¬ ises, less the number of housing houses new units demolished—has the rate of net catching-up to natural end. a statistics dicate tion a I process will come The have population using in¬ family forma¬ been rate of net by exceeded family formation. This 1975 of about 120,000, with about 90,000 in compared recent/years. Sc/far in our Inc., and FINANCIAL Mr. Montreal; & CHRONICLE Mrs. N. D. history, the esti¬ add to the quired amount for field. j The funds that prises may requirements of public enter¬ increase relative to and total investment. be Very large required sums investment for in social ways, tals capital, by way of high¬ schools, universities, hospi¬ and various urban not increase over the actual rate of last year by more than a mod¬ erate percentage. It is various of course, that the cost of building houses will rise in relation to the tinues the amount of ing general price level, and also that part of the higher standard of annual repayments of government direct or guaranteed debt. This possible, the form of a vestment. be unrealistic governments rent to for pay One revenue. therefore to borrowings by capital cur¬ might expect substantial a expect in guaranteed or rise by levels of government to finance the creation of capital as¬ sets, and so will outlet long exceed for growth as new the investment higher standard of housing, both therefore of a will & Co., be Ltd., in resource of devel¬ The new equity stock enterprise Preference been not investors common or ductive have for debt in very in of the pro¬ Canada. instruments rather than equities seems to have been very strong both amongst individuals and amongst institu¬ tional the investors, as a glance portfolio distribution of members will Toronto; at your Mr. & Mrs. E. D. Goulding, Toronto A con¬ a substantial volume remaining categor¬ investment, such as heavy industry, secondary indus¬ try and services, may well in¬ crease relatively to the total. ies Canadian would there Corp. Limited, Rose opment, although perhaps not in¬ creasing as rapidly as total in¬ enthusiastic expenditures out of ordinary take Securities investment facilities, that figure grow, but unless and un¬ til it does, the required volume of housing starts per annum will Admittedly doubt together with great expansion in transportation and public utility enterprises under public owner¬ ship. Under conditions of growth num. should No tinuation of of - it will Young, Dominion re¬ in capital governments will of investment mated rate of scrappage of houses has not exceeded 10,000 per an¬ living 11 Goulding, crease supply which is reasonable in relation to such COMMERCIAL further in seen for the the illustration fact that may every thirty years, the value of dividends paid by Cana¬ dian corporations to non-resi¬ dents, dian plus the branches profits of Cana¬ of parent compa¬ nies abroad, has been greater than the total dian amount paid corporations to by Cana¬ Canadian residents, excluding dividends paid by one Canadian corporation to another. One must expect that as time by greater interest will be by Canadian individuals goes shown institutions and in acquiring a ownership of busi¬ nesses operating in Canada. In the past, a large part has neces- share in the Continued emphasize. on vage con¬ borrow¬ amount funds of Underwriter • will Distributor • Dealer in the total. which developments would continue to bulk large Odnflcfa offers ^ou opportunity Securities of the United States Government and its Instrumentalities State, Municipal and Revenue Securities Bonds, Preferred and Common Stocks of Industrial, Public Utility and Railroad Corporations Bank and Insurance Company Stocks ■ Bankers' Acceptances Securities of the International Bank for Reconstruction and Development 1 Canadian Bonds Foreign Dollar Bonds and here is the International Bank to help you ¥ith more than the U.S.A., and the West Great Britain, 400 branches in Canada, Indies, Discuss your International Banking requirements with: • Branches Outside Canada countries—The Bank of Nova Scotia is in fact you an A Partner in Canada's Growth and with correspondents in other International Bank equipped to give authoritative information and expert guidance on credit, or any of the many banking and frnancial problems and details connected with Trade. In Jamaica: other 1 44 General Offices! King St. West, Toronto New York Office: 37 Wall St. London Office: 103 Old Broad St. Kingston and 16 branches. In The " FIRST BOSTON Cuba: CORPORATION Havana and 7 other branches. In Puerto Fajardo* Rico: and Dominican Trujillo; Juan, In Republic: Ciudad in Trinidad; dents all San Santurce. Port and over of Spain, correspon¬ the world. New York Philadelphia Boston be year past -Pittsburgh Cleveland Chicago San Francisco 12 Les White, Osier, Continued, Hammond &. from Nanion, Arch Winnipeg; Little, Osier, Hammond Nanion, corporations. sarily been played in our devel¬ opment by large foreign corpora¬ tions able to provide both capital and know-how and to develop in Canada in much United the off¬ as larger operations and other States foreign countries. It is logical to expect that over a period many of these branch plants and subsidi¬ aries will develop into independ¬ conducting their operations in Canada in much the ent enterprises manner same Canadian I domestic our as businesses. mentioned the earlier possi¬ that the need for capital funds might decline somewhat relative to total product and to savings, that at least would we importer of to cease capital. the to be We extent a net might capital, might become an¬ other major outlet for the invest¬ ment of domestic savings. become and a find It is a net exporter of this normal evolution, exem¬ plified in the history of the Uni¬ ted States, among others, for a country which foreign capitla was for dependent on its early de¬ growing ma¬ Mrs. in the might company requires, of course, not only a desire on the part of Cana¬ dians to buy, but a willingness on the part of foreign investors to sell. been are tier far So in values. typical to But this is not is distrib¬ so available and expect the for I believe it seems many rea¬ in more future. that Canadian finan¬ their tutions. savings to such should I not surprised therefore to see insti¬ at all life in¬ companies, surance increase the stocks mon be en¬ for example, proportion of com¬ in their portfolios to Only they and their stock in ticipate in the real growth of the cause all Canadian industry, or nearly various companies all of be¬ the extent authorized this in by their way beneficiaries can par¬ Another economy, as entalization, in tendency a Canadianization opposed will omy grows to and Distributors . field which in further be can ex¬ centage uct of Gross search. tion There still are broad in¬ National represented the within by Utility, Canada of MONTREAL STOCK CANADIAN firms do service a of research no but charge for the research re¬ conducted by American parent plants. This may economical of dollar stultifying effect velopment makes to it leave in and obtain fields and for Canadian homes workers and in saalries simply to go order to there find to outlet for their talents and an an op¬ portunity for constructive work in the field in which they are in¬ terested. I as a summarize what I probable major trend tion of at repatria¬ least some INVESTMENT ASSOCIATION OF prises, greater a measure ^jjt of Canadian the continued knitting Canada, of Tel. ST. HYACINTHE 485 tirade well as television as UN. 6-5371 Montreal & widely our by networks movements tures of this railroads, and are growing national strength. of Canada JAMES STREET WEST. PLateau 8153 Corporate Securities all other fea¬ development, and of CANADA McGill Street of the highways and national radio and MONTREAL , the management, in together DEALERS MONCTON au¬ separated centres of population by of Government SHERBROOKE of on development communications in enter¬ tonomy and independence Underwriters & Distributors QUEBEC share foreign-owned Canadian EXCHANGE MEMBERS prod¬ balanced cultural may natural national development resulting therefrom, the a de¬ such higher run has national States not but it technical their the short a but on necessary the United available on costs other Institution Securities STOCK agri¬ dian pay and EXCHANGE MEMBERS our ucts, the greater development of secondary industry and the more and MEMBERS Religious and consump¬ cultural Municipal, Industrial Prod¬ dustrial fields in which the Cana¬ Tel.; Public and exports growing MONTREAL Government, econ¬ mature more mulate in the hands of the Cana¬ The decrease in per¬ imports, 360 ST. of Contin- pools of savings surplus to immediate requirements accu¬ Dominick Corporation Limited our manifesto itself 0. Underwriters to¬ of number of ways as our a pected is that of technological re¬ regard in that indus¬ Canadian growth within Canada If the now wards develop¬ that what say dian people. scientists who some would be called fixed interest obligations. view individuals of enterprises economic I greater appear statutes. a the future our ment, industry by providing a reasonable supply of equity funds as well as funds for of ing opportunities over the next twenty years to assist in the fi¬ nancing of Canadian enterprises, and to make substantial profits in so doing for the benefit of the of Canada to Canadian opment sults There are still many cases where it is next to impossible for a Canadian to buy case. the cial institutions will have increas¬ trust either relative sonable they the fron¬ direction, accord¬ ing to the views taken by Cana¬ dian and foreign investors as to the occurred millions across Once stock repatriation to Canada. Several important instances of this sort have have move itself. the distributed, publicly free to uted securities as in foreign ownership, as well as to participate in the future devel¬ stead of being held by the parent of Canadian government securities. The next stage will be the repa¬ triation of corporate securities, foreign holdings of which are mainly in equities. invest¬ assist to in by the the voluntary decisions of free to buy and sell se¬ curities as they chose. Canada or all for institutions repatriation vestments, not by compulsion but largely paid off foreign holdings ahead years ment of company Corporation, Limited, Montreal Canadian economy. Certainly there should be opportunities in available direct a is in the first place dis¬ tributed among the shareholders of the foreign parent company in¬ has, in fact, bought back Rcyal Securities Armstrong, either by of way velopment, to reach a stage where it begins to pay off foreign debt and repatriate foreign-held in¬ persons Andrew public distribu¬ tion, or by the indirect process by which stock in the Canadian may be made the public in Canada to This bility With sidiaries Economic Growth businesses & turity, part or all of the stock ownership of such Canadian sub¬ Major Trends in Canada's shoots of Mr. Regina try are wholly owned by foreign 11 page & c Convention Number Mr. & Mrs. J. C. Continued THE COMMERCIAL and FINANCIAL CHRONICLE Rogers, //. C. Flood <£ Co., Limited, Montreal; Mrs. D. R. Dattels, Kitchener, Ont.; Ralph Jones, Eastern Securities Co., Ltd., Charlottetown from page short 3 ities term and Mr. T. J. Bradbury, Brawley, Cathers & Company, Toronto; Mr. & Mrs. L. E. Barlow, Young, Weir & Company, Ltd., Toronto; C. L. Peters, F. J. Brennan & Co., Ltd., St. John Mrs. McLeod, money a & means market secur¬ whereby the chartered banks may adjust easily and quickly their surplus or in¬ cash positions. Day-to loans have now become an accepted part of financial prac¬ Canada Set to Resume 13 term in securities, the were all factors in medium and decline short term interest rates. Further action on adequate Growth Trend in interest rates in Canada. The revision the of ample, the Government of Canada increasing the amount of cash re¬ theoretical serves from a 15 ex¬ bond moved yield of 3.55 at the start year of 1954 to 3.09 in had which the chartered banks felt free to Bank of Canada in tice effect For monetary day employ in expanding and as market the has de¬ veloped, rates nave varied within a range of Vz% to lVg%. The re¬ amount of sult has been that the Bills held outside the system has increased Treasury banking their earning assets. Prior to the revision, which took effect in when the duced to ease was side of rate whole Yields municipal and pro- Spring, the maximum interest rate on National Housing Act in- re- 2% which had prevailed for some years. Although no actual borrowing has been contemplated or interest on corporate securities have declined and this sured loans has been rate of (downward to 51/4%. was from the the structure. vincial, taken by the February 1955 discount 1V2 % the throughout rate moved The level of interest rates in Canada for longer term securities is closer to that prevailing in likely, the official United States than it has been for move must be interpreted to mean some years, the current spread that the policy of ease is more b i f th de f 2Q% In than of momentary importance. 5 even seems markedly, and additional issues of Treasury Bills have been fa¬ the case of Treasury Bills and For July, the banks had been required cilitated. example, in May (April 30, 1955). A similar re¬ Interest Rates duction occurred in both 3 month* to maintain a daily cash ratio of of some other short term securities, 1954, the Treasury Bills to¬ not less than 5%, only they had taled and 9 month Treasury bills—from These changes have had an im- Canadian $650 million of which $74 yields are lower than 1.86% and 2.58% respectively in in practice worked to a figure of million or 12% were held outside portant. effect not only in terms January 1954 to a low of .78% about 10%. The revised Act set the Banking system. As of April of government securities but Continued on page 14 the new minimum reserve ratio at and 1.10% in February 1955 and 6, 1955, the total of Treasury Bills a monthly average of 8%. The was $900 million and about $306 to their current level of 1.25% chartered banks immediately be¬ million or V3 were held outside and 1.52% (April 30, 1955). In gan to work towards lower ratios the banking system. terms of the longer bonds, most Of the $306 of the change occurred in the with the result that they wefe in million, approximately $70 mil¬ a position to add substantially to lion were held by dealers al¬ first half of 1954 and more "re¬ their assets during the second half though some part of this will be cently in the first quarter of 1955. its to On the current January 1955 and level of 2.95% other hand, the level of Bills declined almost continually to February 1955 al¬ though it has stiffened somewhat of 1954. since then. One of important contributing to credit was ease development was the y-t o-d a yr' Mechanics of the practice introduction loans. will the represented Another Treasury be of "d familiar factors this Association. in 1954 provided the revision of The Bank Act. INDIVIDUAL to & • of members These loans have source jobber of funds inventories of "money by instead bonds of The Bank Act in crease securities the market" Treasury Bills. Revision, the in¬ short demand for dealers from introduction of term through Canadian Securities > day-to-day loans, together in the outstanding supply of short with a reduction GROUP Our Accident Insurance • finance a to a „ organization underwrites, Life Insurance • , Health Insurance • • • • distributes and deals in securities of the Hospitalization Coverages Annuities CANADIAN GOVERNMENT Salary Savings Plans PROVINCES % Pension Plans MUNICIPALITIES T H E " ttnd CORPORATIONS ASSURANCE HEAD COMPANY OFFICE —WINNIPEG. CANADA AT YOUR SERVICE: • BUSINESS IN FORCE NOW OVER 23 Branches • 31 • 2% BILLION in United States a 63 Wall Street, New York 5, N. Y. Mortgage Correspondents in Principal U. S. Cities • Ripley & Co. Incorporated Underwriters and Distributors of Capital Issues Group Claims Offices Strategically Located • Harriman Branches in Canada 7 Mortgage Investment Offices in Canada BOSTON • CLEVELAND PHILADELPHIA • DETROIT • • CHICAGO READING THE 14 Flood, Terry C. Ficzd H. <£• Co., Securities Continued from Limited, Montreal; Peter Limited, Montreal Corpn. COMMERCIAL and Mackenzie, Dominion a to further increase of $150 million a total of $930 million. . Provincial Canada Set to Resume nicipalities comparable rate in United This narrowing spread has had effect on the the Canadian important exchange rate of an dollar in States dollar active this the of terms the and of has undoubtedly had ease wider in view. A cheaper Canadian dollar over the last few years would have had purpose June of relationship trading our competition. Whether corollary or not, the pre¬ and import exact an mium June months. recent within lessened To of Canada $171 new an decline of result of net of $3.4 billion, issues of the — billion, $3.7 The Government a retire¬ Treasury increases of $130 million and increase in and matured out¬ standing debt of $55 million. Since new June 1, 1954, Government the about Victory $847 loan July 23: $200 and the year, some Nov. OTXInaV in (retired Nov. 15). Oct. 1: $400 million To 1: of $700 Fourth 2s about Victory 1, 1979. million Canada refund Govern¬ Oct. $1,100 loan 3s Govern¬ 1, 1957. million May 1, 1954-1957. 1: Nov. Dec. 15: $765 $250 million Canadian Railways (Can. Guar.) 23/4 Feb. 1, 1963. of $780 As of every indication Government of Canada bonds may well take the form of some new short-term securities to replace the $600 million of bonds maturing in July, another series Savings Bonds in the as well as some long-term of Canadian million at Dec, 31, 1954. May 1, 1955 there had been CNR bonds. To fur¬ ther develop the short-term money some extent It might be, too, that steps could be taken to the re¬ $1,200 million of the Fifth Victory loan which is call¬ able Jan. 1, 1956. New issues by but gauge may well be be somewhat will These trends some borne out are the record by of financing for the first four new months of compared the first four months of 1954, follows: ' 1955, Of to as 1955 as ' 1954 $195,099 short-term So far in 1955, however, way. offerings of ponderance debt $768,813 increases in Treasury bills Treasury notes. ■ nificant by way rather than , g.^ outstanding $21.9 recent developments th(J has billion to _ by Government of more Bonded 1948> the close of Sig- has been changes in Indebtedness ^ Qf bondg increased from $25.2 +, 1954, been however, the totaled of financing issuance Canadian 70,946 Canada. of have a partial answer to the concern which has been expressed from time to time regarding the pfe- 274,815 tG. N. R.—Guaranteed One rights $132 million, and more may well be in prospect. This may be 223,052 241,580 $558,874 and this some 0f 122,195 Governments of the raising by corporations of a-equity capital through the offerings of rights to existing shareholders. For the last half of 1954, some $68 million was raised ditional "moo.ooo through increased equity interest. Canada— ♦Exclusive billion There at have, substantial very classification of the debtor. Millions of Dollars 1948 1954 Change $16,590.0 $15,465.4 —1,124.6 2,233.1 3,853.6 -f 1,620,5 983.7 2,060.6 2,106.7 3,842.3 + L076.9 +1,735.6 $21,913.5 $25,221.9 +3,308.4 Government of Canada: Direct & guaranteed & CNR ungtd. Provincial—Direct & guaranteed Municipal—Direct & guaranteed Corporate- market, it is probable that Treas¬ ury bills will continue to increase fund total the lower. is likely to reach the levels of 1954, it will continue heavy and active. New offerings of direct and guar¬ guaranteed to line financing it feasible proves that difficult the gas pipe Corporations that although new financing is not in volume. Treasury bills outstanding in¬ by $130 million to a total is total unless to may levels. Provincial Governments 1955 anteed and muwell exceed the Corporate borrowing government nicipalities during the i1 $52 million less than Govt. Prospective Financing For Don provincial in 1955 McLeod, Young, Weir & Company, Ltd., Toronto; Deacon, Deacon Findley Coyne Ltd,, Toronto Mrs. million fall million Canada Savings Bonds 3V4 Nov. 1, 1966. National issues to¬ 1953. 1, Canada & Municipal million Govern¬ of issues being million—$291 provincial govern¬ corporate stock 15,1956. creased maj< New $184 of new $849 tions. taled million 3s Bank by Govern¬ ment of Canada. Sold to chartered banks at ments, $248 million by municipal¬ ities and $409 million by corpora¬ 1953-1956. Oct. financing. the of showed million ments bill debt of debt Govern¬ million $550 refund ment terms 1: Third Financing in bills, 3X/4S June 1, 1976. ment of Canada 3% Oct. The year 1954 was an active one funded million $300 ment of Canada 2V4S Dec. dollar has the Canadian on 1: ment of Canada much to commend it in the wider area Treasury were: United policy excluding sues, governments, mu¬ and corporations all during 1954—net estimated million the Barlow, 1954 raised increased amounts of money Growth Trend States. E. L. Mr. 13 page Thursday, June 30, FINANCIAL CHRONICLE Total The ment ing decrease net of is Canada a in bonds reflection of Govern- outstand- the sub- stantial budgetary surpluses of the Federal Government throughout the postwar period and until 7 X A memo to BANK OF COMMERCE banks brokers dealers FACTS ON CANADA - The Commercial Letter published monthly by The Canadian Bank Canadian of Commerce carries authori¬ Affiliate tative articles of timely interest to American businessmen. Jn it, you'll W. C. Pitfiehl & Co., Limited Montreal Toronto Calgary Cornwall Halifax Moncton Saint John find up-to-the-minute facts and figures on the Canadian economy; details of specific new developments, studies on business and industry, etc, Edmonton Ottawa Vancouver Victoria Winnipeg If you W. C. Pitfield & 30 Broad Co., Inc. COAST TO COAST WIRE THE CANADIAN BANK OF COMMERCE request on your business letterhead is all that's necessary. Street, New York 4 Telephone: HAnover 2-9250 have a business—not speculative—stake in Canada, you'll find our Comnlercial Letter profitable reading. To get your copy regularly, your Teletypes: NY 1-1979 NY 1-3975 SERVICE Write our * Head Office—Toronto Business Development Division, 25 King Street, West, New York • San Francisco Seattle Toronto. and more • • Los Angeles Portland, Ore. than 680 Canadian Branches ^ Convention Number Llr. New &. Mrs. York ending this month, trust and loan company members $1.6 billion in of the Dominion Mortgage and In¬ of increase Provincial billion $1.0 debt, in Municipal debt, and $1.7 billion in Corporate debt results from the tremendous capital investment these years. program of COMMERCIAL and FINANCIAL CHRONICLE Mr. Cclvey, Canadian Dow Jones, Limited, Montreal; Frank Rose, Dow, Jones & Co., Mr. & Mrs. Hal Murphy, Commercial & Financial Chronicle, New York City Doug C.ty; the fiscal year The THE Other Capital Sources markets in Canada, of provide only a part of the funds required to finance new Capital course, A significant pro¬ portion of outlays for construc¬ tion, particularly housing, has been financed by an increase in capital outlays. indebtedness. For in¬ stance, holdings of Canadian mortgages by the life insurance, mortgage vestment Association, amount now to $1.9 billion and have increased Other capital investment needs are met directly from individual or cor¬ porate savings. A portion comes from capital imports particularly from United States. Although, on by $1.0 billion since ized the in should Note the inflow toward be of taken newly stocks formed of if not influence cient to finance Canadian expan¬ markets. sion, these imports have been of prime dian importance of in specialized manufacturing and re¬ development where Cana¬ capital is not easily mobil- in¬ of these funds have been in may these funds have term investment, .^ince place hoped be that for long- come unbearable an the support which for burden could be for greater of of might cerdit the full become reaction. that only from the the greatest benefits that fact trend, St. James Street West must and choose between reaction. We Communism tion and credit MONTREAL But this — our of the authentic subversive us in in revolu¬ that sets men in the Western World history revolutionaries come as the of all long way a —We have a long way to go— Let's remember that some per- Continued issue on page On SECURITIES CANADIAN MUTUAL FUNDS last McCUAIG BROS. & CO. LTD 1898 Established pres¬ the Ca¬ MEMBERS The Montreal Stock up¬ The Canadian Stock that likely The Calgary The Investment basic Stock Dealers' Exchange Exchange Exchange Association of \ Canada interest 276 St. James St. West MONTREAL, CANADA Econmic on Affairs The government has announced intention its Commission DAWSON, HANNAFORD LIMITED Place 507 50 d'Armes King Street West Toronto Montreal EMpire 6-9271 Marquette 2385 nomic Underwriters and Distributors Provincial, Municipal and Corporation Securities Members . Montreal, Toronto and Canadian Stock Exchanges eco¬ years a bright one but changes have oc¬ curred during this postwar of almost period unparalleled growth in Qanadian Securities in output, improvement in technology. More changes will be witnessed expansion and the in ahead. years and A wise thoughtful stock-taking now will not only serve to reintroduce us ourselves to DAWSON HANNAFORD & CO the in is basic population, Government, Royal a our No doubts exist that Can¬ future many up examine prospects ahead. ada's set to to but policies our can which which our from mission well Member be fashioned and sights can be in¬ telligently set. On behalf of this Association, may I wish the Com¬ cere C. I. LESLIE & €0. also should pro¬ vide the factual base upon and tender Member Montreal Dealers' Exchange ROYAL Association Member BANK of Canada Canadian Stock Exchange BUILDING MONTREAL, QUE. sin¬ our cooperation. Investment Stock . Direct private wires with DAWSON, HANNAFORD INC. 25 Broad Benefits to , New York 4, N. Y. BOwling Green 9-5177 Our of Free System New York, Toronto and Maritime Provinces May I now turn your attention Street a statement cepting the Association At to that made when Presidency of the Jasper last June. I referred considered to briefly be Branches ac¬ in time, what I I some Halifax, N.S. • Sydhey, N. S. • is part, revolution human time—We have LISTED CANADIAN by of ' greatest revolu¬ any blackest Capitalism revolution All of stand system—called statement a in modified and the a free." represents reaction. Information in present levels. Commission Royal —but Commu¬ maintenance of a with ease around rates tion—not that told represents that Capitalism are which of represents revolution effect^. Conse¬ seems directed toward for dignity of man which is implicit in equality of opportunity. All over the World mankind is today being told we the the of that & The fact is that the free small a is credit monetary evident it stands essential official policies in Canada will be 132 it system result fact Totalitarianism of unexpected and sustained an same The like speaking of the benefits of the free system I said "the reversal form—represents the on When nadian economy, or interest rates in the United States experience ward Incorporee to nism working quently, unless inflationary sures explicit an Truth. that suggest are "Official" their have is sys¬ possible in tightening a free our five-minute pro¬ term in office, I close a my like theme. credit policies, however, are likely to allow market forces and not -s on as Watt mus¬ funds a bank pressures conditions. to with corporations 1955, toward Vancouver; R. C. Wiltstcck, Saunders, Limited, Toronto Rates investment use economic Ltd., sources. Interest together business half RENE T. LECLERC at¬ any Although there is a plentiful supply of money in the hands of the public and a larger volume of new savings continues to be generated, the large prospective 1955, Corporate Securities stock tempt at rapid withdrawal would demands and expan¬ our It Outlook Quebec Municipal, Religious powerful a actual an tered from Canadian Underwriters and Distributors many States Activities sionary source the from United funds. vestment more of benefits would directed our the tem; and logue to of too capital, acquisition seasoned Sherwood, Thomas B. Read Company Toronto; E. M. Saunders, £. M. of or assuming the risk inherent in large new enterprise. support, fields required and 1948. new D. taking the initiative domestic savings in Canada throughout most of the postwar period have been suffi¬ balance, G. Watt, amount is hesitant in Mrs. & 15- Saint John, N. B. • Moncton, N. B. 16 16 Mr. THE Mrs. & O. B. Falls, *. Continued General Electric Company, Schenectady, N. Y.; Mr. & Mrs. Q. C., Chairman Quebec Securities Commission v reasoned from page 15 Mr. Maurice Desy, optimism Walwyn, Fisher & Co., Toronto; Mr. & Mrs. A. S. Gordon, Royal Securities Corporation, Limited, Montreal; Mrs. Dudley Dawson, Montreal Mrs. A. P. Fisher, & and and economic pressures to which idle for irresponsible fantasies of I think too that a Growth Trend terprise. is risk and uncertainty In is the price all of us must pay for the rich benefits of our free system. We are all to remember too that the cards^are all in favor our — that even last that me to reconcile but let's risk-takers, the basic our it seems problem is people to that limited risk, to build a strong a core losing hand here can beat a win¬ of thinking economic Our en- generally pretty badly cluttered with up slogans, theories dead generalizations. support for the enlight¬ ning hand in any other places in ened the World. life, and to substitute rugged and manufacturer shall produce, and enterprise private way critics our in economy our a tricate It is that is as it is as marvelously delicately and we kind of hu- new political and social economic. in- balanced, # and Members: yet has it considerable Exchange has turn. Canadian Stock Exchange As how it basic works, The Investment Dealers' Association of Canada stability. learn we and ruggedness self-generated great we It momen- about more shape can it P SZS social and Most system * not Montreal which group erates all of is of for it is by Consumerism should suggest to or working in the most effective it to seems sense in uge new & scrjbe the there's me ever devised by man not to en- idea that we rich the few-but to enhance his own material security and comfort' For in our free sVstem> in- of lot a CQuld term which would de- our economy more dustrial progress has always brought the greatest gains to tJlose wh° had most to £ain. ac- curately than 8ny terms we now empj0y tag Qn and t A realization of that fact should, exampiej woui(i pin the where Mr "Consumer- term igm „ jor actually and I believe is, working to develop a reluctance to tamper belongs— consumer, the real boss beneficiary of the free sys- casually with the source of our present and future wellbeing. It mjgbt serve several other — purposes. way , r par¬ It op¬ ROBERT S. NEWLING JOHN G. the people. across—the ROWLAND GLANDFIELD greater benefit of best KENNETH STEEN McVITTIE H. That, I think, is the basic point we need to Branch: 14 Metcalfe Street, OTTAWA, Ont. of life power a must any interest. or the all, not—and be—dominated ticular Tel. HA 3261 the political goals. important Street by While Fm not much for «isms>» institution—one much holds how, withholding his fa- worker alike, connotations. man Mc DOUG ALL & CHRISTMAS which and it; produce or witjfcunpleasant, death over owner, manager and each of us the idea,that he is of unpopular, and totally misleading Actually, 520 St. Francois Xavier shall who vor, by heavy-laden who agriculture; and and loud at Capi- talism. A change like that might keeP those fellows busy for years rewriting their textbooks and finding new slogans to jam the gears of progress. Somehow, I iust can't picture them shouting "Down with the Consumers!" every — dictates what and how much the terms use sway so long today, citizen who buys the products of Industry recall have evolved Montreal Stock That boss is the people conferring are boss pull th2 right out from under our un- friendly critics who have blasted actually system real one easy and We business only rug and phrases shopworn has which have been distorted beyond of factor analysis, vocabulary of private new Our need to find we First of all, it would world it must ultimately conform. a without. struggle or uncertainty. Canada Set to Resume sonal Thursday, June 30, 1955 COMMERCIAL and FINANCIAL CHRONICLE and most JOHN get W. HICKS ELLIS CLARK con¬ vincing argument of all. Tel. 2-7321 I submit—in spite of occasional publicity to the contrary — that , the tycoon-type doesn't exist significant INVESTMENT IN the tools of are sands and investment securities. We shall be trial glad to selected list of bonds, indus¬ preferred and common production pretty including Canada has much to offer in the field of stocks; also mining and oil issues. in more has of be¬ Canadian thousands of workers industry Oil Securities Canadians* average and thou¬ whose direct indirect savings may include substantial Actual erations share-holding in control has hands workers ☆ Ca¬ of business op¬ passed into largely of a of group hired the professional man¬ — ENQUIRIES INVITED agers. Corporate fluence is power subject to and legal NEWLING & CO. Ltd. in¬ Members 607 St. James St. West, Montreal strictions, to UNiversity 6-2463 pressures ings of what might be called the "corporate business conscience." can OFFICE of public opinion, and to the prompt¬ Indeed, it Direct Private Wire between Montreal, Toronto the The Toronto Stock Exchange re¬ MAIN Members Investment Dealers' Association of Canada Mining and nadian business. the KIPPEN & COMPANY, Inc. Specialists in any Ownership and more, the owners of CANADA selected Canadian any sense. . just increasingly diffused. More come send you a capitalist 80 Richmond St., W. Toronto, Canada EMpire 3-4271 NEW YORK BRANCH 65 W. 44th OFFICE St., N. Y. 36 MUrray Hill 2-4545 PAUL SARNOFF—MGR. be said that the corporation is creature of the whole in fact a community, subject to moral, social, political I dumber Convention John THE broader public understanding of better understanding of the func¬ tion of profits as end work in mere a source of and influence for the few power —but itself, an essential and useful tool creating new wealth and new goods for the benefit of Mr. Con¬ Mr. should in turn engender a progress, capital means of investment creating come that, of in spur the wealth eventually practice, poverty can the only from development and thrift Albert rich — and giving but the poor by making The collectivists operate on the cial In evils. Lang, effort an higher theoretically find to of kind substitute for material incentives, C. ards our Pierce, Fenner needed to meet unfilled our still things depends, ultimately, who calls C onsumer Worker, — the shots who is on — also am the of common & facts, he will dictates of the to the will insist that this tem continue economic sys¬ operate in the climate of economic freedom and Mr. incentive Farmer, Mr. Man¬ ager, Mr. Union Leader and, of course, Mr. Voter. ancHyenture whiph has produced Mr. fpr has use ^ so rich harvest. squads to forced labor camps. So far Canadian Government, Provincial I as have tell, these methods can produced neither the im¬ human beings nor the proved . MAJOR & COMPANY Members fuller, richer life which the dis¬ Municipal and Corporation Securities of ciples The private the by profit motive, meanwhile has channeled the CASGRAIN & COMPANY drives into the Member Investment Dealers' Association 261 ST. JAMES of Canada social broadest offers will ROYAL BANK BUILDING humanitarian and seize only Private Wire to Maritime Provinces the history. it, to MONTREAL It the opportunity if he man • *. provided promoting man's in advances STREET WEST, MONTREAL has It for means ORDERS EXECUTED ON COMMISSION BASIS aggressive great common con¬ a effort. structive LIMITED human normal Exchange Canadian Stock Exchange enterprise free or powered system, Montreal Stock anticipated. Marx Telephone Marquette 8671-2 . end wars, poverty, hunger and to pursue in comfort and whatever security spiritual, moral and cultural goals he aspires The ROGER R. BELANGER BELANGER INC. INVESTMENT DEALERS % STOCK BROKERS and GOVERNMENTS-MUNICIPALITIES MEMBERS EXCHANGE RELIGIOUS INSTITUTIONS Established 1922 The are. certain be one of is Members: THE INVESTMENT DEALERS' ASSOCIATION OF CANADA Remember, when we are thing one changes — now can we have to 611-619 ST. JAMES ST. WEST LIMITED planned economy, through changing, we are through. PUBLIC SERVICES—INDUSTRIES STOCK EXCHANGE they as change. Whe AND, L. S. JACKSON & COMPANY stagnation, of locking things in of thing <S> STOCK offer cannot illusory security of the place <8> CANADIAN it him is the controlled LTD. MONTREAL to. thing one to make conditions make them as CANADIAN must continue we freedom is GROWTH Beneficiaries of St. Lawrence • STOCKS Seaway. Mines in ad- • vanced development stages. Progressive Western Oils. necessary. MONTREAL 1 Most UNIVERSITY 1-1461 significant this politi¬ to 132 St. James St. W., MONTREAL, Canada MA 6347 cally divided world is this: of all the great one than industrial closest the clings most tenaciously private to nations capitalism the to has socialist come goal of providing abundance for all in a Geoffrion, Robert & Gelinas, Inc. classless society. viet Union but in INVESTMENT DEALERS « and Canada that capitalist U. S. upper the use cleaners, drink the same vacuum same frozen orange juice and lis¬ to the same shows. We can ten Geoffrion, Robert & Gelinas Members Montreal Stock Exchange Members Canadian Stock Exchange 507 Place d'Armes, Montreal nomic democratization evitable outcome of Street, Quebec a and that is TV eco¬ the in¬ est Societe de Placements Members Investment Dealers' Ass'n of Room 802 technology applied to production. believe there's that the continue to every reason free system provide to can dynamic inc. Canada 331 St. James Street W. progressive MONTREAL Surely 72 St Peters radio insist SECURITIES and lower today income-groups INVESTMENT Communist So¬ It is not in the Members Investment Dealers' Ass'n of Canada his to bludgeons and firing from act sense, they have often resorted to every¬ thing Mrs. and incidentally, enlightened self-interest. He his Mr. Mr. that if he is in pos¬ sure according needs. social Toronto; Beane, York City session Whether it is free to do all these man & I living stand¬ excess of the generate and wealth Lynch, Merrill Bell, Chase Manhattan Bank, New growth, to raise great theory that the profit motive and free market competition are so¬ a C. K. everybody richer. the and more for everybody. We will discover the as Mrs. & redistribution—not by —not from taking from to and abolition sumer. It to incentive to an CHRONICLE FINANCIAL Graham, John Graham & Company, Limited, Ottawa; R. B. McKibbin, Bank of Canada, Ottawa; Gerard Gingras, Rene T. Leclerc, Inc., Montreal ■ the function of capital—not as an for COMMERCIAL and Telephone HArbour 6162 a 18 Jack FINANCIAL COMMERCIAL and THE Mr. Kingsmill, Investment Dealers' Association of Canada, Toronto; W. T. K. Collier, Collier, Norris & Quinlan, Ltd., Montreal; J. C. De Pender, Collier, Norris & Quintan, Ltd., Toronto Continued recent from page<$. our greater Observations phenomenon that people of credit. Of made Business Outlook terms Consumer credit be made too easy. No desirable can and that times will time debt of possibility of is credit nomic progress. is credit bad a in too much to be social In and upward times their a of mitted for of pressure decliningthe other- pay articles checks com¬ bought in the are kept up, have less money to spend for other purchases that would give business a lift. If past. It has done much for people in all walks of life and business. It has made a major to more chunk good thing. contribution put hand, heavy debt payments add to deflationary pressures. Consum¬ ers find themselves with a big Y extension The both and deflationary. In inflationary pressures it business and income, on becoming burdensome. of prices. on debt payments are being My reply is that now is the to worry. Let us avoid the as met. be can payments cpnsumers eco¬ Sometimes I But too much thing. It results am ajjked how the consumer ever got so far in debt, especially in view of the fact that debt and debts have he has had so much more cash paid. in selling has contribution It also economy. inflationary payment is ridiculous and basically unsound. You may ask why worry as down long credit real a more is courses so ment credit and credit tion of make they have been encouraged to do by the development of instal¬ Canadian on A is use Mrs. & to tended. pointed out that con¬ sumer debt is equivalent to 11.7% of personal disposable income. To some people this may not appear to be out of line. However, con¬ sumers debts owe classified not under that heading. I refer espe¬ cially to mortgage debts and the amount of mortgage debt out¬ standing has been rising very rapidly. reflects This amount of the large housing construc¬ new increase the and ownership. in home reliable data is that a large number of the people who available Eastern Securities gages on I suspect their homes. Information Limited Est. No but have instalment debts have mort¬ Company in respect to total A. Senecal, equivalent to about 23% of gages or instalment credit— should receive most careful scru¬ tiny. teen-twenties. People encouraged be can to borrow too much. The next question is related to creasing and the business outlook. to Is Canadian the Dependent Than Economy Export on Less Trade Canada's dependence on exports has always weakness regarded been in our structure. has It a and economy made especially vulnerable to eco¬ nomic developments abroad. For this reason our rapidly expanding us domestic market has been satisfaction. to the years let But get back us question. The I recent of matter of considerable a answer have the question as it is—yes, Canada export trade than formerly. On the other hand, if you were to ask me whether or not Canada is still dependent on posed is less dependent on exports also for tradicting are prosperity answer yes. would I No, I am not con¬ myself. Both answers true. us look at the facts. Canadian exports of goods and services in recent years has been this trend From these obvious is likely figures it should be that on Canada is export trade less 5% a than say in drop effect exports has owing by home on single family dwell¬ ings. However, certain conclusions can be drawn from published data in respect to the mortgage invest¬ ments of lending institutions, more especially the life insurance, trust arid loan companies. In 1939 these companies held $676 mil¬ lions of mortgage in Canada; in 1947, $729 millions; in 1949, $1,081 millions; in 1953 $1,933 mil¬ lions. The figure as at the end of 1954 has not been published as yet but it is likely to exceed $2,250 millions. Thus mortgage holdings of these institutions have more than tripled since 1947. Since 1949 they have doubled. ^ Securities MEMBERS THE INVESTMENT Offices: Moncton, N.B. DEALERS' Saint Halifax, N.S. OF ASSOCIATION John, N.B. OF (Head Office) Charlottetown, P.E.I. Fredericton, N.B. CANADA Summerside, P.E.I. Sydney, N.S. w The K,eystone eystone Custodian Funds "VVitli the investment RESERVES-. INCOME: ' ofC anada7 Ltd. A objectives of Series B-l Series B-2, B-3, fully managed Canadian Investment B-4, long-term K-l, S-l and S-2 GROWTH: Fund certain Series K-2, S-3, S-4 Company seeking CAPITAL GROWTH TAX BENEFITS and under Canadian Laws amount Canadian economy similar percentage drop in a the 1920's. However, exports remain a ma¬ jor influence on the level of busi¬ ness activity. We are still de¬ pendent on this exports for prosperity. connection the past the events are especially Exports of Canadian 18 months significant. ward in a the last half of 1953 throughout the first 10 months of 1954. In November last, they re¬ a gain over the corre¬ sponding month of the previous year and an increase has been chalked up in each month since. As I mentioned earlier, there was corded jump a of 12% in the value of would It reasonable seem Here that also there is there has ments been of credit. tension are for no 50 or Keystone Company of Boston an Congress Street r „ Boston 9, Aiass. future the limit; have taken to a new Canada • Montreal Government, Municipal, Corporate Bonds and Stocks many on tjRENIER.RllEL £ UO. a mortgage in order to pur¬ home stalment debts. of part be¬ There is little aieir chase Association the ftiost arrears. But one help but wonder whether individuals have mortgaged iarge Dealers' pay¬ problem of who Exchange 437 St. James St. W. over-ex¬ Mortgage cannot iarnilies Stock Canadian Stock Exchange evidence many Tke local investment dealer Members to that mortgage debt owing by individual Canadians on homes they occupy has more than doubled in the past five years. or no your GRAHAM & CO. holdings represented by loans on single family dwellings which are owner-occupied is not known. But an intelligent guess based on sta¬ tistics of mortgage loan approvals m recent years would be 65%. conclude BOND BROKERS Investment also have ^Sn^Atmxnt SbtxdUxh in¬ In the event of a drop in income these families can be faced with a difficult problem. 71 and lower level of exports prevailed and Montreal of goods and services turned down¬ of these mortgage ing met promptly. Prospectus from STOCK less the on owners Municipal and Corporation de¬ than formerly, or perhaps I should say relatively less dependent. Today In to propor¬ continue. pendent Formerly? Thus, the tion of the gross national product consumed at home has been in¬ to mortgage debt, Government, the national gross product as com¬ pared with 26% in the years 1946-49 and 30% in the late nine- Let mortgage debt in Canada is lack¬ ing as are any statistics in respect 1910 any proposal to further lib¬ eralize credit terms—on mort¬ business I J. Beaubien G. in people tend to spend more. They feel that their greater income enables them to carry more debt safely, and it does. But there is always the danger that the consumer in his optimism will get over ex¬ Earlier Casgrain & Co., Ltd., Montreal; & Co., Ltd., Montreal Casgrain, Thus, our that with seems coming money tion Rodolphe L. years. times Thursday, June 30, 1055 CHRONICLE St. Peter Street, Quebec City, P. Q. I nc. Convention Number Mr. & Mrs. H. Neville, Gairdner & Limited, Quebec; John shipments in the Company, S, first Now let the ment examine for us same a mo¬ business latter mained part until late in business of 1953 and of Reserve in real re¬ and has been definite a in Canada and export shipments. the You one for exports on goods be times wonder of almost think ket pros¬ this discussion of sales Canadian and ex¬ ball in do we were not would would the a ques¬ crystal but so will you. Recently, this question has been up volume of export shipments, fur¬ suppose there ther if we are to have a employment and if necessary high level of we are to The action rather frequently. three investigation I (3) S. of the Exchange index The Senate mar¬ the high-'" Committee too high. or Why? the failed to S. find not the market is great deal these days a automation. the trend Some toward reflection a of the posite opinion of thousands the of a by up field of reasons will the think opinion higher. The fear given a,s of one why labor is seeking the This is it market Automation is ftothing growth of automatic The processes in true familiar to engineers. new. upon gree of as a pecially present in refineries. Yet industry have only Not even standard an even maintained, of has remuneration but there are not high a been more employed in oil refining of the stock today than that there son for ever this is before. the One rea¬ contribution people who believe thaf automation hasmadeinkeepingthe are more the business outlook is favorable there decline in business. are people who look who price of petroleum products at reasonable automation, times, there opposed machines the moment a of tion should should mankind. of machines mean I Dealing with tages. We have those facilities . . has . many memberships What or or In Canadian a level, thereby expand¬ ing the available market. The As A Result of the Revision Of the Bank Act Last Year? The most important can offer 3 wide market and supply in unlisted securities and primary ary offerings of Canadian banking field for many years was the en¬ try of the chartered banks I hardly need to tell mortgage lending ing tion, practice. the pe¬ From chartered Continued their large or small, we'll welcome your on HIGH GRADE OPEN HEARTH inquiry. BACHE & CO. Underwriters — Brokers — Dealers Corporate, Municipal & Canadian Securities MEMBERS NEW LEADING YORK. STOCK ADELBAY AMERICAN. TORONTO AND L Steep Rock Iron Mines, Limited EMpire 8-4871 36 WALL STREET, NEW YORK 5 Tel: AND OTHER EXCHANGES BUILDING, TORONTO Tel: Founded 1879 COMMODITY Steep Rock Lake, Ontario Dlgby 4-3600 J a incep¬ banks BLAST- FURNACE AND are, no matter that major change in Canadian bank¬ obliga¬ requirements you represented of corporate and government into the mortgage lendihg field. FOR THE second¬ tions. Whatever your how source or develop¬ in^ the ment * e we Been Banking Practice representatives in 71 cities. Thus for slave. Changes Have There on security and commodity exchanges and qffipes con¬ social Automa¬ master, advan¬ 26 to „ not the victim DIRECT SHIPPING IRON ORES firm with full facilities in Canadian, a of further progress. Help You? American and qyerseas markets the perform service Man will be the 1 How Can We those substitution foy hand labor. Stop and for tribution It or history. were an$ economic progress. em¬ suffered. means level merely high de¬ a ployees in that workers In earlier automation for years, es¬ go to long been of automatic processes, say The petrol¬ industry has had eum Others will be will fear denial of all economic a think guaranteed-annual wage. greater extent of individual stocks. a in developments electronics. automation is com¬ thousands of investors. Some peo¬ whole is too high. The should I is Because no one a wide variety of fields has been to the ques-j going on for years. Automatic The level of the market at any is give greater opportunities. speeded control of machines has time people troleum people claim that auto¬ mation will upgrade workers and automatic answer tion. ple about fear the investigation of the U. whether We hear machines—a trend which has been indus¬ of near Should We Fear Automation? S. history. out knows or than into the stock market. r U. require¬ for gain the rate of economic growth U. Federal the margin Greenshields & Co. Inc., Montreal; George Gardiner, Gardiner, Annett Limited, Toronto; & Co. Inc., Montreal; James Annett, Gardner, Annett, Limited, Toronto Greenshields The fact that the Toronto Stock reasons Senate Banking Committee in the re¬ the Authorities in trial stocks is at market The (1) are of Gritfin, The for this: be I'red increasing of popping will William Moran, ments in order to curb stock ket speculation. not, We may have opinion, in terms of the actual value and increases CHRONICLE mar¬ are we have are some¬ stock answer offices. our personal a were we to I You which able We tion. port trade with the statement that Canada is less dependent on ex¬ port trade than formerly, and again I should like to emphasize that I am speaking in relative terms. In absolute terms, that is, why. we if even be bankers we question and experts, not surprised at the times that perity. I.started of asked the reasons for stating we are still dependent would of value aggressive for services, number corre¬ This is for abroad (2) Is the Stock Market Too High? lation between the level of busi¬ ness FINANCIAL & est level in improved, as have export shipments. In other words, during the past 18 months there export position- our need drive 1953 has tone about lulled into this condi¬ tion by the growing importance of the domestic market. There is Since then the 1954, Montreal; George S. Bray, Gairdner Company, Limited, Toronto probably in period, Busi¬ level the below Limited, cent activity turned downward in ness the of trend arid Gairdner, Gairdner & achieved in earlier postwar years. We are becoming far too compla¬ quarter of the current year, Canada in the COMMERCIAL r- E. Company, export THE page had 20 \ 20 THE Mr. & Mrs. George E. A. E. Continued from Leslie Sr Co., Montreal; Mrs. A. Graham & Co., Montreal McCain, C. £. H. McAteer, Business Outlook been on from barred the security The underlying thorizing the making NHA loans for reason banks to loans funds au- make more was and to enlarge to supply available of mortgages. of make the mortgage NHA loans readily available in smaller million $111 invested & Denton, mort¬ rate for small repayable find about 40% commitments the of Frankly, it is and being made banks. In this way, is not are home and extension of Canada There of were, technical ous I There respect it GRAIN would make time WINNIPEG STOCK GRAIN v EXCHANGE WINNIPEG EXCHANGE 12%. to INVESTMENT "Private Wire DEALERS' Connections ASSOCIATION to All OF Principal CANADA Markets" of to credit, serve it INQUIRIES ARE WELCOME CALL OR a we a ing and compare annum rate month which with this 6% the be can Stop for ily, but on similar the by bank mitted Committee that to charge a we interest „ consumer did You that in the to probably opment in tthe of is of expect me major devel¬ Canadian banking Toronto-Dominion an now can in¬ field, namely, the creation of the 1% per month—half the rate that companies our this field proportion another small loan of debt held by the banks will refer to be per¬ maximum fact in select¬ care Proof has been rising. suggest to the Banking and Com¬ merce Our personal will appreciate that risks. our creasing charged One loans. you per 2% mistake. have to exercise per finance and small loan companies Bank through amalgamation of the Bank of MORGAN & CO MEMBERS which MONTREAL STOCK EXCHANGE STOCK EXCHANGE was PLACE D'ARMES 507 When credit. the the COL. W. E. MORGAN, O.B.E., M.C. DAVID CLARK ** it of flow cash raise Plateau 3971 re¬ ' Private Wire became MONTREAL range the Toronto to important producer of oil and natural gas following the decennial revision an of the Bank Act in 1944. WRITE it ratio. Canada YOUR on a business is increasing stead¬ change in require¬ gives reduce can in That relat¬ Canada of within bank volume loans. reserve This desires THE loans profit. of Bank of Canada greater control over the 8 interested not personal CANADIAN another cash The Bank ments. time oto of no would be loan beforehand hioment authorized to vary the ratio from Members make knew briefly. was to them very active in lending field. with the idea away are we making would person witji these. However, there will refer go numer¬ course, amendments three other changes to were BONDS that type basis. see consumer Don't unprofitable rate an bank to a matters, but it is not my purpose to deal Ltd., the maximum rate for as likely to loans ftie National Housing Act. long the per this of Company, & banks remains at 6%, you are not 6% monthly a reasonable no ing to government supervision of banks and internal management STOCKS As interest or Harrison Toronto cj^rge—but no action was taken.. on ridiculously low a loans on new the banks are playing a major role in the provision of adequate housing for^the Canadian people. ment Edmonton, Canada limitation Ltd., Co., had banks in the more important the Hicks, Ray & $ expect again, for such loans were made by the banks prior to World War II. Est. 1919 Evans charged to This is City; York Price, discount be may which field, it is surpris¬ You will note that I say Empire Building A been of annum. year. under Edmonton Stock Exchange than as States. rate new¬ to the the only way that helping people with their housing problems. They are again making home improve¬ Members the ing the course of the current Considering that they are the banks Investment' Securities United New Price, nancing field, dur¬ This Limited Inc., Bill factor has which will be paid by INVESTMENTS in In addition, they have out¬ standing commitments for further NHA Investment Dealers' Association Bros. gages. millions ing, to DIIGGAN communities. no time in taking challenge. A little more than a year has elapsed since the National Housing Act, 1954, was proclaimed and the banks, as a group, have already more than the comers D. M. Burns banks lost up Canadian remote more The on Peet, Toronto; and Observations Ed S. Price, Quebec; 19 page Thursday, June 30, 1955 FINANCIAL CHRONICLE COMMERCIAL and This was WHWHHHUHHHHHHHWHMHWVHHHHVWHUWW recognized in last year's revision when provision was made for the Norris Securities Ltd. 212 Notre Dame Ave. Phone 92-5201 WINNIPEG lending of the oil and to money Osier, Hammond sIanton industry upon oil and gas un¬ or upon the ground and upon the security of permits, licenses gas der rights of or any person WINNIPEG to obtain stock department ojr remove gas from specified lo¬ cations. ing the on security illustrates carbons Peter D. Curry Members of This provision for lend¬ of the hydro¬ advan¬ Montreal Stock Exchange Canadian Stock Exchange of the 10-year revision of Act, since it affords an opportunity to bring banking tages & Co. Ltd. CURRY BUILDING WINNIPEG, MANITOBA Private wire connections legislation in line with changing conditions. Another new banks to section empowers loans on the make bond department security of motor cars, household appliances and furniture. The un¬ derlying to was INVESTMENT SECURITIES ★ purpose enable of the this banks Government, Municipal and change to en¬ achieve its PETER D. CURRY Lack of purpose. was only the /////////////////////////////////////////////////////////////////////////////////////////////////////////////////St Corporation Securities Members of the Investment Dealers' Association ^ of Canada their personal loan activi¬ ties, but it is doubtful if it will large Osit k. Hammond. 6-Nmton au¬ thority to take chattel mortgages EDWARD E. GLASGOW to Winnipeg Stock Exchange Calgary Stock Exchange all principal markets. the Bank the DEALERS IN « chartered one of the reasons banks had not entered the in / Canada consumer fi- urUtexC £7* why Regina - Saskatoon - Winnipeg • Vancouver • Calgary iHVWWHUHHWWHWUWwwwvwuhwwvvhw Convention Number Rutherford, 'Dominion P. George Dominion t^pTthe Dominion Bank. amalPTmation cannot be ascribed directly to of change but it was a relating to the Act the As might you been asked sions why the two two strong banks long and honorable records of service to the Canadian people should decide to amalgamate. If I in one give to would I word, my answer say "ambition." particularly de¬ sirous of enlarging their useful¬ ness to Canadians and this could not be achieved without a major Both banks were branches. of network their in expansion At the same time, there and financial limitations on the rate at which new branches could be opened by both physical were study A bank. either revealed that not only did the branch net¬ of works the also the two banks comple¬ each ment other of type which questions for discus¬ more desire to im¬ sion but I have pose either your time. In closing let me or on your no good nature reiterate that the short-term busi¬ any is outlook ness favorable, proposal to further liberalize scrutiny, ports are that expanding ex¬ essential to continuance of the postwar that we by 1975, and 31 million kilo- year Our Atomic Powei Needed to Meet Canada's nomic attractiveness seemingly what of supplies vast of sons1 for1 the^taSishing are con- vour first atomic power plant in Southera Ontario, as put forth by Mr. Bennett, is that there are no con- forecast results lion in an kilowatts of'the ^^Law'rence1 development^ all Energy Needs rate of growth and have nothing to fear from automation. in 14% area ing by 1980. the plants anaylsis indicates that increasing to 44% by per +ionalTue[Gsit^ationyonra Nationbasis is 1975 and with this, let tire us generating ca- for the brighter than ours, in many areas your problems are similar to ours. Projected Plans of Atomic Power Development similar, are perhaps the solutions will not look plants predicted This atomic figures some jected plans from conventional plant equipment can look forward Substantial to about business for a long time; Many eQual by 1975 in millions of kilo- people concerned are watts to the total generating ca- with aspects related to the total P^ity additions of ail kinds in installed capacity as distinct from 1954. in the short five years the annual additions. These are thereafter, if our predictions hold people interested in such things business a The Impact ous What would happen to the struction of conventional our *n con- plants kinds of generating capacity utility systems. understanding , Per year. This means that total business would still amount to 11 uary> generating capacity additions will million kilowatts capac% per watts. systems on the in the United Continued on page 22 per¬ GairdnerS States which will be nuclear fueled. This starts mate tial with out around 2% that in there activity a low 1965, but will after be figure we 320 Gompanij Limited Bay Street, Toronto, Canada of esti¬ We provide substan¬ that—resulting complete service for a corporate financing in Canada. Private enquiries from dealers are invited. Members The Toronto Stock canadian securities Exchange Winnipeg Stock Exchange Vancouver Stock Montreal Stock ** Exchange Exchange Canadian Stock Exchange American Stock Exchange (Associate) Enquiries invited regarding Canadian Government, Municipal and Corporation Bonds Preferred and Common Stocks Affiliate Gairdner fi 60 Wall Gompanij Inc. Street, New York 5, N. Y. bankers Bond corporation Member: Limited Business The Investment Established 1912 Dealers' 44 King Street West, Toronto kitchener london hamilton Montreal Kingston Quebec Calgary Vancouver Association Hamilton Kitchener London Edmonton Winnipeg of Canada New York Members of The Investment Dealers' Association of Canada The Toronto Stock mm Exchange these 1955, is 102 million kiloThis forecast shows a rise the forecast of f°recast of gross in the meantime? This forecast things can best be achieved by generating capacity is essentially would indicate that the quantity examining the effect of the rapid the same as the average of the of conventional generating capa- rise of nuclear plants upon the Edison Electric Institute upper city manufactured each year total generating capability of the anc* lower limit forecasts. We would increase for the 15 years country. The total generating have used an increase of 6V2% to 1970 and, even in 1980, the capability as of the first of Jan- Bas*s ^or plants added to utility new op- eratio^ and integration of vari- Power Plants I investment in electric utilities, and the Conventional on fuel consumption, as double that size.,. tric generating plants. First, - of poWer challenge with atomic elec¬ cent of the plants, . pro¬ meeting for our . manufacturers different. I would like to give r*se 1° 23 million kilowatts per year, which is the same as the you improve to conventional Furthermore, of size of * plant business power continue to economy 1975, by year try mil- 10 is very impressive, being en- industry and the fraction of that which will be nuclear fueled, ... of true, it would rise to comparison per year wide nu- 198Qt In parity added five million kilowatt short- once they will expand rather rapidly— will have been utilized, leav- a in in clear Plants become competitive, new sources going being nuclear. Our consider the „ too the of service in 1970 the hydro-electric tainly ample incentive for indus- nuclear of increase Thus there is cer- present level. by 1980. and 20 million kilowatts per year ventional fuels in the region, and that credit terms should receive care¬ ful A. Pequegnat, Cochran, Murray <ft Co., Limited, Toronto; Mrs. Nigel H. Gunn, Toronto; J. B. Cronyn, Cochran, Murray & Co., Limited, Toronto; Walter Downes, Kipper & Company, Inc., .Montreal 4 page Since the problems Gentlemen, I could raise a great many from but admirably, business developmer/t. natural J. watts per year Thus, a^m^rtage was a they did. Phipps, occa¬ with had Continued have I expect, numerous on E. made joining forces that amalgamation possible. banks the G. CHRONICLE revision the Bank Act, in Securities Corporation, New York; Corpn., Ltd., Toronto Securities Toronto The COMMERCIAL and FINANCIAL THE Private wire system THE COMMERCIAL and Mr. & Mrs. Ralph M. Jones, ontinued from pctge Securities Coi, Ltd,, Charlottetown; Mr. Goiiinlcck & Company, Limited, Montreal Eastern Bell, & & lion by 1975, kilowatts by of One the and Needs million 375 kilowatts by 1975, capability of nu¬ clear fuel plants forecast from the previous data adds up to 40 million kilowatts by 1975, and 120 million kw. by 1980. What then about people who are concerned The integrated about the in investment conven¬ tional generating capacity? As of today there are about 80 million kilowatts of capacity using con¬ ventional fuels. Even with the rapidV rise which I capacity predicted, installed have capacity in nuclear in conventional, thermal plants will increase to 300 million J. Bird, J. H. which factors until 1960, the will plant. cost of building generating plant atomic power of the boiling reactor type is esti¬ while the cost of building a conventional fueled steam plant of the same size would b<r $175/kw. Many mated at $200-$270/kw, costs of plant individual are items the almost downward these At the present time, and probably an to mil¬ 350 1980. relation to the conventional and 514 million kilowatts by 1980. H. affect this rate of growth will be the cost of the nuclear plant in Atomic Power Needed to Meet Canada's Energy Mrs. Bird in each since same will willing by factors of 5 to 50 achieve unit economies and greatly reduce overhead costs. (2) Unit development costs will reduced be a larger number of jects. will (3) the reduce nents. of energy the is source components plant still are compo¬ simplified. be Other improvements in fuel technology, waste handling, the wider used. of the very ex¬ the initially competitive safeguards, and of use higher shortly. course, it while $45/kw boiler costs it for Factors a in costs will The piping those of a Atomic twice than start-up fueled plants Cost a about ahead years gets and produce a in of favor power when It to will $165 decrease per kilo¬ this cost differential plants is not expected hinder greatly the beginning Race, for The is race are Ontario be plant Direct Wires and to 15 Britain has her plan, from V & The Investment Dealers' Association of now they Wood, Gundy & Co., Inc. 14 Wall of Canada ON ALL Wood, Gund^ & Company Limited Head Office—36 King Street West EXECUTED EXCHANGES Toronto, Ontario Toronto 44 KING Quebec Kitchener Telephone: EMpire 4-1131 Montreal Saint John STREET WEST, TORONTO, CANADA / Chicago 3 "Affiliated with * STOCK ORDERS Street, New York 5 105 West Adams Street, Regina London, Eng. \ Winnipeg London, Ont. Edmonton Chicago Vancouver Hamilton Calgary J stations fourth of all the expanding may 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 at their disposal. Exchange to according to nuclear population, and 20 * Toronto Stock Great herself powered stations. Britain's Jr Members: supposed 1958. and and assistance from Co. Southern is to Private Investors— Walwyn, Fisher a and I have growth factor demanded annually ./ holding by now, new Atomic your committed build 12 nuclear Ten years of already on operating 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 nearly fifty years' experience in the under¬ writing and distribution of Canadian securities, can be of assistance. Montreal, New York, Chicago, Los Angeles principal cities in the United States to really On which Company Executives— EMpire 4-5191 Toronto, Ontario Is entrants. many / Bay Street Use Energy The Investment Dealers' Association of Canada 220 rush power by existing conventional give underway. The to the nuclear to convert will constitute However, could reduce these differences plants. 1980 that the cost plant $145 than watt. of several are lower even will companies the inside track in the already mentioned conventional nuclear of to plant. be greater a Working to now there of are field: conventionally any plant, and (2) develop within that these who the in (1) Nuclear plants offer of conventional expected is expected by Power there things which is nuclear plant steam Reducing However, great steam system expensive for is the $28/kw. feedWater is people pioneer to potential for cost reduction after standard costs to accrue be¬ which advantages Ultimately, range plants as> Exchange of cost (4) Testing procedures will probably Major, program power two equipment will also help to bring what as Toronto Stock pro¬ production ter and Members: over reactor Quantity costs Established 1909 distributed and pensive compared with their equivalent ; in a conventional plant. For example,-the reactor COMPANY of cause may plus nuclear &■ atomic our of reactors the apparatus is constant no mat¬ Some MATTHEWS trend. * Among cost Guy Mrs. & & (1) Scaling up the size are: Mr. Company, Ltd., Vancouver; Company, Montreal & Major kilowatts 21 Mr. Mrs. W. G. Pepall, 1955 Thursday, June 30, FINANCIAL CHRONICLE Halifax Ottawa Victoria New York be industry years from building no Convention Number Mr. & Mrs. G. S. equipment other than nuclear. is Less COMMERCIAL and Swindell, Wood, Gundy <£ Company, Limited, Winnipeg; Cunningham, Wood, Gundy & Company, Limited, Quebe generating new THE . have cost to ventional known about build modern a plant of the & con¬ Hence, the Commonwealth Edi¬ atomic power development except she has one plant running son Company, who will own the plant, is going to write $30 mil¬ lion in their capital account for of 5,000-kw rating. a know that the And do we Soviet plans to triple the output of its electrical rate structure balance of $15 system in the next decade. To do this she will probably have contributed by tp rely heavily ment grants over a power on atomic installa¬ tions.^''..- .;"•/ In ■' utilities have already formed pool for atomic research and building a are laboratory in Switzer¬ a land. is the projects the United proposed a is Company to The being build cost of one in of 180,- General tentatively Illinois. this plant in a which manner be of interest as investment is about 50% should particularly to you dealers^ The total price of the plant—$45 more largest all-nuclear plant date, there are four other installations planned by the utility industry in 75,000-kw The outlook increased long if and years, to is period 140,000-kw. this for of the over of ranging bright installation plants power sizes nuclear seems time, 20 like a remember million— than it would we are dealing with large, long-range solutions to sweeping, long-range full problems. benefits to be And derived the utilization of this of energy enough our to wifl affect be new Mrs. source facets & Atomic energy great that of source already V. S. Castledine, V. S. Castledine <6 Co., Ltd., Ottawa; Mr. & Mrs. Carman Kin^, Company, inc., New York City; David Dattels* Datttls & Company, Limited, Kitchen..- Power nificance Will become which energy foresee will help to inexhaustible we being as can economies. goals our within the next few years —will be much gamma Ift Podd the past done in Preservation: year, the of lives. much Within has irradiation of been and other found possible to store for months, after with has been some foods treatment, Continued meats foods it and rays, on page at 24 difficult of more eAHWWUWWWWWHHHUWHWHWUWHWHHHWUWHV) > «> Thomson attainment, and for the long pull would be nearly application, deal great a subsidiary These benefits The Toronto Stock are con¬ and research, medicine, themselves alter Specialists in Canadian Industrial atom. Mining and Oil Securities mainly in the field of industry, The into j agriculture uses Directors divide radiations E. B. that Kernaghan — F. C. Woolley and into radioiso¬ am not a cannot research supply K. A. W. Sutherland I F. Willis things, W. W. Davison topes. I Exchange power of the of Kernaghan & Co. Ltd. Members impossible. Coupled with the direct I fruits hnd neces¬ Without this rich new source of energy, so bbVi'oUs to you. to the continuing growth of sary the from tremendous many & 2? sideration should be given to the the next of supply —even plant, which Uses haps, atomic our that is being financed entirely by private funds and be announced to several way, plant which the Electric slated under are latest 000-kw States, will ' the Mr. First, and most important, per¬ associated develop¬ period of five In addition to this from In million other the research and years. ■ addition, 12 other European nations as and purposes, M. Various size. same H. Gairdner Russia's that Mrs. FINANCIAL CHRONICLE scientist, you with 67 RICHMOND STREET WEST a comprehensive evalution things that 11 E. R. Henry TORONTO 1 happening in this area. ate are However, just a few. let me I think of the Em. 8-3871 enumer- Em. 4-4256 KERNAGHAN & CO. LIMITED their si2- Members The Investment Dealers' Association of Canada CWUUWHVWUWWWUWVWVWVWWWUHWUWUWVWVJ Canadian Investment Securities UNDERWRITERS AND DISTRIBUTORS CANADIAN SECURITIES 1889 - 1955 U Burns Bros.f Denton Our organization is actively engaged in underwriting and distributing Canadian Government, Provincial, Municipal and Corporate Securities. LIMITED Members: The Investment Dealers' Association of Canada Private wire system to New York and branches in Canada It is also equipped to execute orders Canadian Stock Your on all TORONTO Inei i WINNIPEG | MONTREAL Bros.&Compani| LIMITED Boston Canadian Burns ted New York CALGARY HAMILTON Inquiries Are Invited A. E. Ames & Co. TORONTO OTTAWA Exchanges Affiliates in MONTREAL VANCOUVER ( WINNIPEG VICTORIA / And other Canadian Cities LONDON, ENGLAND Members: The Toronto Stock Exchange Private wire system to New York and branches in Canada TORONTO OTTAWA MONTREAL / Bankers Cox, Stanley Mrs. & Mr. Burns Continued increased is Atomic Powei Needed to temperature without spoil¬ room is age. Medicines In being tracked be can a scintillation something are they counter—as Gieger a of use patient's system, with counters—instruments like is These tracers, radioactive tracers. introduced into the in here done wofk Much off by the absorbed or passed system. medicine atomic of in is energy fight the ap¬ in against Here, one of man's wea¬ is pons important highly plication cancer. good bombards tissues cancerous cobalt radioactive which unit therapy a with In Chemistry: Fascinating work being done these days in the irradiation of plastics. that rials, when radiation, It has been certain plastics found exposed can considerable be heat to mate¬ gamma subjected without to melt¬ if important, however, there is now an that isotopes and new leading These instruments. are- us to new shape. This knowledge, particularly in the pharmaceutical fields of biology ami medicine to specific drugs can be and greatly extending ^thejoower of the research unlock to men na¬ packaged and sterilized right in ture's secrets in many their lieve it is folly to predict the uses plastics containers, Agriculture: In studied through growth is being the radioactive of use plant Here, tracers which, added to fertilizer or soil, be tracked by instruments as they proceed stems and scratch tial into would It up plant stalks and the leaves. hours take the surface of the radioactive of uses to not comes this Atomic Energy the Commission, marked, "If radioisotopes utilized process with the is re¬ be complete safety in control made S. can techniques which the material self U. or mildly in product it¬ radioactive, present estimated savings is to but our of on added An benefit Canada to coming use reflected, which will particularly of atomic being your en¬ resources will not own you course, to be be fourth place value of of Canada. Another which is which nents building same while ago an of the of large this Your material important item in a survey same, the American omy $710 million worth to in building building conventional at present. We When the passed atomic ventional plants, hand- installations competitive truly are experimental phase is and will be replaced by ling and auxiliary systems. One of the biggest benefits for they as wear atomic plants out. world of the atomic all of us will power when come atomic plant is fully the Many people do not realize that the power installed and generation business has long been operating on a planned costs begin to feel the ef¬ GARDINER, ANNETT LIMITED corpn. limited OF THE INVESTMENT OF DEALERS' CANADA STREET BAY W ONT. TELEPHONE EMPIRE 4-9271 mm The Midland Company Exchange GARDINER, WATSON & CO. Exchanges * MEMBERS Toronto, Ontario: 50 King Street West TORONTO STOCK EXCHANGE London, Ontario: Huron & Erie Building Sault Ste. Marie, Ontario: 110 March Street 44 KING TORONTO STREET W. Montreal, P. Q.: 215 St. James St. W. . Private wire to ■ i Eastman, Dillon & Co., New York con¬ your TORONTO all with those old plants Corporation Securities on to total capacity grows to meet new de¬ The Investment Dealers' Association of Canada The Toronto Stock ^ envision ■ MEMBERS member: at the almost the same rate mands. econ¬ systems, 330 Stock orders executed the generating capacity at first as that of busi¬ fuel and use atomic plants being added shielding coolant units, instrumentation, is. and on or are we stationary nuclear plants add to after — fuel plants for many years estimates that by 1963 will main only tend to lower In the I quoted a little survey fuels— designed In the first place, we will right go installations. atomic of conventional to equipment going. compo¬ result from will of you are prob¬ swing to atomic energy really gets industry for market huge many conventional, fuels occasionally overlooked is the this in area and in • . great happen dollar gross production ^ in fuel costs, but also will give trade. the in metal A to Fuels ably wondering what is going to in uranium ranking million, Going to Happen Is Municipal and than cheaper Conventional uranium 1957 reactor of natural uranium. sources vast one of What production will valued at approximately $100 in ness is Atomic of the annual volume of components material progress. accrue Bennett, Mr. 1964. an effect great a Midland Securities members: expected Energy pf Canada, estimates that ASSOCIATION Canadian Government Dawson, supply the U. S. projected The knowledge will have new ergy of methods, but it is certain that in the aggregate with the member from these techniques and what from older Speaking recently, Dr. Willard F. a needed uranium of amount We may recognize what knowl¬ even edge poten¬ isotopes. fields. I be¬ of such new knowledge. unknown , just York, Dudley Ltd., Montreal; Limited, Montreal Industrial fects of long-range, low-fuel and Ulti¬ of New high-efficiency operation. that the mately, atomic-generated power the Atomic Incorporated, has estimated industry Forum, variety of materials and Libby, 60. be their news that means more fact Co. Beaubien & Hannaford G. L. 1955 atomic present conventional power, in methods of producing and using power program would reach 1,500 spite of the initial period when nuclear costs are higher. radiation, represented by the new to 8,000 metric tons annually by houses, among others, because it can Another losing or could year per by several fold." immense Energy Needs ing the Beaubien, Dawscn, million $100 from page 23 Meet Canada's Andrew Mr. & Mrs. Telfer Hanson, Bond Corporation, Limited, Toronto; Bros. & Denton, Limited, Toronto Even is Thursday, June 30, ME COMMERCIAL and FINANCIAL CHRONICLE 24 TELEPHONE EMPIRE 6-9211 1 Convention Number Mr. replacement plants THE Mrs. & basis. Yvon through have ~ gone continuing a cycle obsolescence, of with better designs replacing old steam plants and The out. coming it will merely nuclear plants for a substitute newer con¬ ventional plant when the old ones for ready are their will an atomic normal plant As matter a unless money of fact, doubt if I will economically automobiles, commercial aircraft or know true today. Hence, if us¬ chemical this is supply military aircraft) some fuels must continue to ever-increasing needs our is so. Thus the obsolete in present fuel$, as of reserves from overnight, value ment far of becoming will increase the growing develop¬ atomic gradually power a points out the natural limitations of nuclear energy, and underlines spread those use actually of atomic uses where they will be practical more will power than transportation, atomic it is in the' be the field of start of an has been made, and practically atomic can navy powered certain that military aircraft produced will and will investment have ficult a be break power gathered some down It com¬ upon together lar We estimates on we have tried get some idea of the total dol¬ volume traceable to some Robert McConnell, Countless The the future by Aside ap¬ from field, where the atom power dent of Atomic product, vast strides will be taken that be Energy of Canada utilities and industry given should opportunity to enter this field and help develop it. an have only been able to trace broad outlines of the atomic field for you this morning, partly because of time limitations, power and partly because about all lines to into we a have work that mean this field broad out¬ are to. we in This does not pushing ahead are completely unknown area, in terms and are we think must we in broad many of .this new: full po¬ force. I energy almost limitless. in our future are "Limitless" is, of course, a word that gets kicked a ture for atomic lot an the these days almost I've so limitless applications fu¬ of end energy. An areas. medi¬ days of the '49ers, and with For there is son. those ride who wisely—or, if you their on money We stand many people and running in many this be businesses, race} to harness the atom. You, know investment experts, will what must rush stake atomic new sustain of private out claims riding in the who will reach in tailgate /or a our prime a age's atom chuck wagon. Of course, many in Capital—good, age. hard, plentiful dollars—is staple and have some may never riding We feel that goals ex¬ ap¬ of atomic energy. plications. Atomic powered mer¬ figures into Translating Canadian chant vessels may come, but I be¬ did this roughly by lieve they must be based on some stalled new concept or need in ocean kilowatts the capacity — you or by any but a Ahead lies able rewards. of it is a and to all of us LIMITED GOVERNMENT, MUNICIPAL CORPORATION ffl 115 BROA»WAY AND SECURITIES n.v. canaan i 50 King Street West 276 St. James Street West Toronto, Canada affiliated Montreal, Canada Telephone: EMpire 4-0161 aw^ , Winnipeg Calgary London Kitchener Telephone: HArbour 4261 Hamilton Quebec Vancouver New York \ McLeod.Youno.Weir & Ratcli ffe inadian Cai Investment Secur.t.e MEMBERS OF THE TQRONTO . STOCK mu»erb' wem 50 toROMTO "" mSm ORDERS STOCK EXCHANGE MONTREAL STOCK CANADIAN STOCK EXCHANGE EXECUTED ON ' ALL numerous a rough road, passage challenge to in¬ dustry, to business, to government, McLeod,Youmg,Weir & Company IN to by nation—will Successful great an DEALERS States, of road which leads to inestim¬ our IMC* fit technological and industrial prob¬ generating have we pos¬ outlined surmounting terms—we should to realization United comparing in¬ of plans I have pects of the peacetime application cept of course, atomic electric our the as as- — obvious big plans to needed and what is Canada, lems. that takes results. entail are make the grade. years ago. become measured you—by the horses has However, such over handout—some rid¬ same whole electrical sible. there ing experienced dependable horses — get big this enter¬ dollars experienced industry stood about 75 what is as the the then—it wjill their prefer, who put at about the now stage where since there right horse— nag. before And the invest thing us. rea¬ pot of gold at a the end of the atomic rainbow for those that manu¬ of great era Toronto One prise to atomic around other Ltd., opportunity, of great progress, lies to the in end facturing, industrial research, and headlong realize applications portation, food technology, implement large plans convinced that applications of indicated nuclear conventional a cine, agriculture, chemistry, trans¬ it merely means that we recognize that supply Company, My analogy smacks a bit of the offered certainly be limitless. to pear & Applications opportunities atomic our McConnell will tentialities of the many potential phases you 25 people in this hall is the growing as expressed by the Presi¬ am the Mrs. ap¬ This feeling you have of national product. your gross dif¬ as 1975 Perhaps most significant for to on in probable total effect phases of nuclear power all is figures field. of this business and Frankly, however, I transportation possibilities mean dealers? burgeoning industry such to few other to atomic possibilities well worth their cost. see of if What does all this as example, which chemical fuels. nuclear drives. For areas conventional' peting for the remaining stocks of conserve fuels for see business & would be the I paradox in the ,idea that the wide¬ we atomic for transportation. fossil CHRONICLE Mr. proximately $1V2 billion. we (with the exception of naval ships and FINANCIAL Montreal ing atomic energy of the type re¬ scrapped in favor of going to be saved by doing I Inc., the No conventional plant be ever Gelinas, locomotives, trucks, . placement. & practical, see useful, of atomic power will not change that Robert transportation. ever they paid for themselves as wore system, Geoffrion, Conventional themselves progressive Phenix, COMMERCIAL and EXCHANGE * EXCHANGES Ki»g Street West, Toronto, Canada—EMpire 4-0161 4 collectively. 26 Mr. & G. Mrs. G. Johnson, Interprovincial Credit Mr. Ltee., Montreal Continued N. Mrs. & D. Young, Dominion Management In Canada's Economy greatly strengthened both the liquidity and the quality of bank assets and has made bank deposits less vulnerable to a decline in bank loans. These points are, Government, Municipal and Corporation Bonds Enquiries invited v.- however, less important than the main issue as to whether the needs, HARRISON & COMPANY 66 KING STREET WEST, TORONTO 1, CANADA Telephone: preciable reduction in bank hold¬ ings. It seems clear that this ques¬ tion should be answered in the light of economic conditions EMpire 8-1891 ed a In the late by non-residents. government debt was the funded held by own one-third of approximately '30s, Calgary Winnipeg Hamilton exist¬ particular time. Another interesting trend in the distribution of the debt is the reduction in the proportion own¬ ing at LIMITED stand, could or effects of an^ ap¬ the deflationary other. do taken upon tions, Since have the much for matters which are So almost of the decisions significant effects advisers. its or that make contribution while to doubt that the is rapidly Ca¬ pull- which worth¬ the stabil¬ a do been too office my a to hostage give The traditions of one's critics. once making forecasts apt require me to do so at Budget time—and year, would do ity of our economy. I urge each member of this Association to take a lively interest not only in the timing of new government issues, neces- Budget speech 10 weeks based my projections of revenue and expenditures on a financing decisions as well, progressive recovery of the slack- a but sary in the details of the wise than In ago, man he has no more in this respect. to my I non-residents; today, they less than 5%. been has there post-war the During decade steady increase a proportion of our debt in non-marketable form — currently in the It has been clearly demon¬ 13%. Canada the that strated Savings provides a practical method of maintaining a widespread dis¬ tribution of government bonds with the substantial social bene¬ Bond that fits j¥wmA, sdllen !&mited ^ * o ' dtender± therefrom. accrue used predecessor to say My that he WHERE IS THE LARGEST MARKET FOR INDUSTRIAL SHARES IN CANADA? single objec¬ tion to the Canada Savings Bond had received not a and that is indeed a tri¬ popularity as a con¬ venient savings medium. There is a rather striking contrast be¬ tween the total of 1,200,000 buyers program bute 3/ie fdo-v-onto f/tcc/c SxcAanae 3Ae jfitiAtedmen / ' Sddiociution of to its The Toronto Stock Exchange lists than any other two $800 million of the Ninth Se¬ Savings Bonds last and the 18,000 buyers who 200 BAY STREET ★ TORONTO, 3/e/v/t/tcne: Sm/Ure CANADA 8=Jd737 issue 1 audience This (!Jflice&: up the There 98 BROCK 150 ST. CHEAPSIDE d£onc/o?i, $777). d&ntjfAtori, Adntario 2, $n^7a^tc( are shares of Manufacturing companies 48 Textile enterprises 58 Financial institutions quickly that decisions taken in managing our debt must take into account a constantly shifting mar¬ ket situation. When there is an 38 Utilities agree 73 phase of 75 Construction and steel firms • will stock major business activity in Canada. $1,100 million market issue last September. You will recall that both market issues included long- t^erm bonds. rune/ and the took who These include every million ago year a buyers 14,000 $850 the acquired larger exchanges in Canada. Fall market a number of industrial stocks ries of Canada cJ? Canada 27 Paper companies and many others. ample supply of funds seeking in¬ VICE-PRESIDENT PRESIDENT *r S*uce S^. dVc wiA ^o/uv ^3£. Sullen DIRECTORS 3. A /?o*e Q. oZ). —Adami i\. jdiipittr J.V&ooL P.J(.J4an(ef QMWitcklner %ou9L Wc Utile Pkriitopker WakLtL, Jr. Mrtkdr W. StricklandRickardM. WolLrJl A complimentary copy of our Monthly Review, giving the essential trading data on the more than 1,000 listed issues, will be vestment, there is also consider¬ able latitude with respect to the of types securities government can sell; when there is a relative shortage of investment funds, it has much less latitude. It is also sent to you on apparent that whatever decisions are taken will in themselves in¬ fluence market conditions. Founded Management analysis entails striking a balante among a variety of consideratidns foremost among which are co: ernment and on economy the one J852 STOCK management in the fin venience request. TORONTO Considerations in Debt Debt for gov¬ hand and the l! expe¬ the past 18 months like not is —it to have we over so. I years will are us. ing out of the rather mild reces- over the next provide us with the opportunity to establish and maintain sensible patterns in our debt no economy riencing refunded 10 is There nadian of to now which matters of interest to all also sion or May I turn general more such as yours. The huge maturities which will have to be groups five dealer investment and credit and economic condi¬ they deserve continuous largely consideration by fraternity Ministry of Finance and daily the stu,dy and discussion by interested the Economic Conditions General desires and needs of investors on economy Toronto /ks Intelligent and objective analy vin of the underlying factors wif promote the well-being of Canada. Role oi Debt ,;VL-5: of Limited, Corpn. Securities jrom page 5 Underwriters- and Distributors 1955 Thursday, June 30, FINANCIAL CHRONICLE ^THE COMMERCIAL and EXCHANGE BAY STREET, TORONTO, CANADA f 1 ion Number THE COMMERCIAL and FINANCIAL CHRONICLE 21 1 (standing) Mrs. L. W. Scott, Toronto; Mr. Toronto; (seated) Mr. & Mrs. E. A. L, ness which had 1953 and of a on & Mrs. W. H. Robertson, Mills, Spence & Co., Limited, Rogerson, Mills, Spence & Co., Limited, Toronto; Bell, James Richardson & Sons, Toronto L, developed in late early resumption an healthy rate normal encouraging, good of I and in reason the see can no of the events increased had and unfore¬ the Dominion Bureau of Statistics overseas setbacks occurred, the Gross National Product should total issued its report on the Gross Na¬ tional Product for the first quar¬ $25 ^ ter of 1955, growth. I normal said that if if and crops we no seen billion for the calendar It records an annual year 1955, or about 5 to 6% above 1954. I also pointed out that if we rate .of picked up all the slack and added quarter to of $24.0 billion for the year as a it normal our rate of growth, the Gross National Product would be running at an annual rate of about the I a $26 billion I year. though if penditure ance to end of that say was flow a on went the desirable to adopt policy that would pro¬ fiscal duce by erating of would the at and revenue that when economy $26 a ex¬ in be bal¬ was billion op¬ level. Since I did not expect it to reach of activity until toward this rate the end of expected lion for the year, and since I it to average $2514 the actual 1955, I forecast a 12 months of moderate deficit How events to close out say to I shall determine, and is may leave All that I for want rate of resumption our $24.4 of billion 1954, whole. an in and increase the an of growth has our so far proved carlile last average 1954 , The level of industrial produc¬ the last records above full month for available, it are the month same which was a 6% year Agricultural production for 1955 must, as always at'this sea¬ son of the year, be uncertain, but current prospects in almost all parts of the country are "good ago, to excellent." Our some export of good the trade, in spite of problems we hear a deal about, is moving up and quite rapidly. Ex¬ ports in the past six months have been 10% greater than the same steadily forecasts my be now recovery normal to billion, tion has been maving up steadily for the past six months, and in bil¬ for this fiscal year. turn from $25 trade Andrews, Nesbitt, Thomson and Company, Limited, Fredericton; A. J. Raymond, Nesbitt, Company, Inc., New York City; Mrs. D. E. M. Schaefer, Kitchener; Mrs. J. R. Ferguson, Montreal; W. M. Dietrich, Nesbitt, Thomson and Company, Limited, Montreal Thomson and exports are well the recovery of tributed; past 10 weeks to alter my expec¬ tations. As you may have noticed, C. G. with the Western United Europe is areas dis¬ our Kingdom other and especially en¬ couraging. So to far the our this year, our States are United exports Europe are to the Continent 25%, and up exports up 8%, our of ex¬ ports to the United Kingdom have increased by 45%, On the other our Asia sales to South America have declined by some 20%. As has between commodities, there been a small increase in the exports of the products of our increase of 15% in the products of our forests, and the very large increase of 30%, or nearly $100 million, in our ex¬ ports of metals, minerals and chemicals. This last figure is a gratifying reflection of the heavy capital investments and greatly improved technological skills that we have developed in the past farms, McCarthy eral become the available, I am sure show a very consider¬ able and rapid decline from the late winter peak and I would ex¬ ures they will pect that they will show reduction below stantial ures of the especially date same Minister As of a 25 be it not the conclusion yedr ago. and So many of us are so immersed daily problems and duties a time to reflect about our longer should ment. let think means "satisfactory" you more our that that than of invite and thinking about range economic will recall that in budget my and examine report collectively will take in mission and your its follow-through. fore the Commissioners. I fynpe so. Among the Royal Commission through its through its public Canada useful things many do, level will hearings Report, Government of Canada Bonds Private Wires To All will and be and of has reached Vancouver — Provincial and on Municipal Debentures Corporate Bonds and Shares Victoria Statistical information promptly Stock The Western on our on supplied the Toronto affiliate Member Corporation. private wire with Goldman, Sachs & Co. 30 Pine . Limited Orders executed Exchange through Direct City Company request. Canadian Securities on Street, New York * ' V " * INVESTMENT SECURITIES Equitable Securities Canada Members Investment British ' Dealers Columbia Bond LIMITED «*. Association Dealers' of Canada Members: Association The Investment Dealers' Assocuition of Canada " £ . 544 Howe Vancouver Street Stock Exchange Vancouver 220 1, Canada I BAY STREET ^ — TORONTO, CANADA Telephone: EMpire 6-1141 V present influence standards of living be- Continued Offices Calgary its development, high to Treasury Bills Leading Exchanges will have considered views to put be¬ MEMBERS Direct active Associations Over 25 Years in Western Canada OF CANADA an the work of the Com¬ Underwriters and Distributors THE INVESTMENT DEALERS ASSOC. are others to Perhaps these upon dealers many regard, because the nature interest You speech I announced our decision to appoint a Royal Commission to this fortunate than regular duties requires keep looking 10 or 20 or years ahead. I hope many of you individually or longer prospects. find more con¬ your our to imaginatively term develop-, your you May I, in conclusion flirecA-ydur tinued difficult it Investment in this Long-Range Economic Prospects? find we more that. attention a study, in not will of but the beginning of a" new cycle of thinking and planning for the future. one am years down, comes ,of the bene¬ ficiaries of all these rising trends. Tax revenues are flowing in at a I Canada, 30 or hoping that the Re¬ am when special Receiver General of as of I mark gen¬ thinking about -country Canada can should port, more detailed kind hence. the fig¬ Finance and and sub¬ a matters. result of rising production six months a year ago—and if and improving trade, the employ¬ this keeps up, our 1955 perform¬ ment situation has greatly im¬ ance could come very close to proved. The latest official figures establishing a new record. Our on unemployment do not'carry & promote and stimulate an few years. As April, fig¬ of the May and June but when satisfactory rate, but, of course, I hand, and middle the beyond us page 28 28 E. THE Douglas Huycke, Bache & Co., Toronto; Montreal; Paul Flemming, Flemming Mrs. Continued from page George COMMERCIAL FINANCIAL and Lawson Glasgow, Royal Securities Corporation, Limited> & Co., Toroi to; Mrs. Geoffrey Phipps, Toronto; Rutherford, New York City P. 27 Continued Jean H. from H. page Thursday, CHRONICLE Gendron, /. T. Gendron, Inc., Quebec; J. N. E. Grenier, Grenier, Ruel & Cie., Inc., Quebec; Hills, Royal Securities Corporation, Ltd., Halifax; Frank Poutney, Houston, Willoughby & Co., Ltd., Regina; A. F. Francis, A. F. Francis & Company, Limited, Toronto JOHNSON, G. G.* 9 Credit Role of Debt Attendance Management In Canada's Economy GRAHAM, Company of reliance our determination the skill on of the people. •I our am But the full Harvest of the future you will be many that we only ours exercise qualities of industry that to the vision, our the extent predecessors have seen working for part me Canada's as in of a ' Winnipeg Bache & Grenidr, Ruel & Cie Inc., biggest bor¬ Dominion Securities Corpn. Limited, Toronto 'Co., Toronto JONES, R. M. JEWITT, D. A.* Quebec Deacon ca¬ GRIFFIN, F. E. Eastern Securities Findley Coyne Limited, Toronto Company Limited, Charlottetown Greenshields & Co. Inc., Montreal y" ' rower. Company JOLLY, C. E.* Belanger Inc., Montreal HUYCKE, E. D. GRENIER, J. N. E. their my J. L. Graham & Limited, Toronto HUGMAN, V. W.* James Richardson & Sons, so JOHNSTON, H. L. Royal Securities Corporation Limited, Montreal GRAY, R. A. with been of this group who spend pacity possessed, and which have marked to inconsiderable time and glad Association. your and toUhave met and not high same courage of progress Interprovincial 'Limitee, Montreal HUGHES, J. R.V Limited, Ottawa cause and Convention at I.D.A.C. JOHN John Graham & June 30, 1955 GUNN, N. II.* Bell, Gouinlock & Company Limited, Toronto HANNAFORD, D. C. Brawley, Cathers Members Investment Dealers Dawson, Hannaford Limited, Company & Association of Canada Montreal BELL, GOUINLOCK & COMPANY LIMITKD HANSON, MURRAY ESTABLISHED The Investment Bankers Association, Washington 25 KING STREET -- 1920 WEST, TORONTO . HANSON, T. It.* Burns CANADIAN Bros. & Denton Limited, UNDERWRITERS AND DISTRIBUTORS OF Toronto HARRIS, HON. WALTER E. GOVERN M ENT- M UN I CI PAL-CORPORATI ON CANADIAN GOVERNMENT, MUNICIPAL Minister of Finance, Ottawa AND HAYMAN, J. L.* SECURITIES CORPORATE SECURITIES Goulding, Rose & Company Limited, Toronto AFFILIATES HEATH, S. B. Walwyn8? Fisher & Co.,25 KING WEST - BELL, GOUINLOCK & CO. INCORPORATED Toronto STREET LEGGAT, BELL, GOUINLOCK l> LIMITED TORONTO 64 WALL STRUT IIEGGIE, I. C.* ' EMPIRE 3-5821 W. C. Pitfield & Company MEMBERS MONTREAL STOCK EXCHANGE NEW YORK MONTREAL Limited, Toronto HENDERSON, HAROLD A. E. Ames & Co. Limited, Victoria HERGOTT, A. E. CANADIAN James Richardson & Sons, r Kitchener GOVERNMENT AND MUNICIPAL BONDS HERRNDORF, H. H. CORPORATION BONDS AND STOCKS Herrndorf Securities. Winnipeg - Ltd., 8 Cochran,Murray £ Co. Limited HICKS, R. C. Authentic request information covering porate furnished Canadian on Harrison & Cor¬ for Funds New or delivery in the U all for York n issues delivery i t e Funds d Member Investment Dealers' Association of Canada HILLS, H. H.* Canadian Canada Company Limited, Toronto Securities. Prices all supplied /- in Royal Securities Corporation in Limited, Halifax for States. HITCHON, A. G.* Cochran. Murray £ • Bunnell, Hitchon, Limited, Brantford WISENER COMPANY AND Toronto Stock King Street West Telephone Trading Members Dept. F. J. Brennan & Co. . EMpire direct Investment • lines: Dealers' of Equitable Securities Canada Limited, Toronto Canada . * Denotes Dominion Bank Hamilton HOVEY, W. N.* EMpire 3-7218 Association (N. S.), Halifax Toronto, Canada 6-5251 Exchange HOLLEBONE, B. C.* LIMITED 73 Hay Member of the Mr. and Mrs. Bldg., Toronto, Telephone Em. 3-9161 Kifchtntr London Convention Number Mr. Mrs. N. A. THE Mitchell, Harrison & Company, Ltd., Toronto; $£ Company, Ltd., Toronto; Mrs. George Stewart, Toronto; Royal Securities Corporation Limited, Mr. Mr. & & Mrs. Mrs. COMMERCIAL and FINANCIAL C. T. J. D. Toronto Smith, Harrison Gilmore, Mr. & CHRONICLE Mrs. Nigel H. Gunn, M. Duggan D. > Bell, Gouinlock &. Company, Limited, Toronto; Edmonton; Mr. & Mrs. R. W. Investments, Weir KEELEY, C. P.* KING, C. G* McLeod, Young, Weir & KIPPEN, E. d. B. Gairdner & Company Limited, Montreal New York Company Inc., Kippen & Company Inc., Montreal KENNEDY, E. M.* KINGSMILL, J. Midland Securities Corpn The Investment Dealers' KERNAGHAN, E. B. Kernaghan & Co. Limited, Denotes Kippen & Company Inc., W. C. Pitfield & Mr. and Mrs. MAJOR, G. C.* Canadian Alliance Corporation Limited, Montreal Mr. & Wadds, Mrs. E. McLeod, M. Duggan. Young, MARTIN, I. A.* _ Royal Securities Corporation Limited, Montreal Oscar Dube & Cie Inc., Quebec Montreal KINNEAR, E. F. C Toronto Company, Limited, Toronto MALOUIN, I.* KIPPEN, W. BRUCE Association, Toronto Limited, London * A. <£ Continued on page KNIGHT, H. J. * Walwyn, Fisher Company & Co., Toronto LANG, ALBERT C.* Limited, Montreal Merrill imiiiNmimiiimiiiiiiimiiiiimiimiiiiiiiiutiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiji Lynch, Pierce, Fenner & Beane, Toronto LEDDY, J. A.* ZL I MacTier & Co. Established 1901 E PLAYFAIR & COMPANY E I E Edmonton Stock Exchange Investment Dealers' Association of Canada E LEDOUX, J. F. James Richardson & Sons, LeMESURIER, J. J. H. Crang R.* Z Dominion Securities Corpn. jZ Limited, Toronto STOCKS, BONDS and MINING SECURITIES — § | Correspondence Solicited E Dealers' Association of Canada and of LEVESQUE, J. L. I 1 PARTNERS Member of The Investment Zj The Toronto Stock Exchange -, E ' Montreal Members |Z | Toronto Office: 40 Adelaide St., W. Limited, Montreal Credit Interprovincial Limitee, Montreal E. I). Scott L. principal stock and L. Masson A. C. Hubbs commodity exchanges in Canada D. A. FitzGerald R. K. McConnell LITTLE, A. T. Osier, Hammond & Nanton G. C. Limited, Regina 68 King St. West MACDONALD, W. Toronto 1 • D. A. E. Ames & Co. Telephone: EMpire 3-6001 E = Donley (Limited) Limited, Toronto H. L. TRAPP J.A.GRANT E. W. SIMPSON = E. C. WEST R.T.NICOL G. L. TIMMINS1 I •niiiimiiimimH!iimiiimiMimimmimmiiMmimNimmimiiiiiiiiiiiiiimir MACKENZIE, P.* ^ Dominion Securities Corpn. Limited, Montreal MACKENZIE, W. S.* Nesbitt, Thomson and Company, Limited, Ottawa DOHERTY ROADHOUSE & CO. MEMBERS MacNAMES, G. P.* N. L. MacNames & THE TORONTO STOCK EXCHANGE Company Limited, Toronto Affiliate of Watt & Watt 6 Jordan Street, Toronto . THE INVESTMENT DEALERS' ASSOCIATION OF CANADA McALPINE, W. D.* Brawley, Cathers & Company, Toronto HEAD Members McATEER, E. Toronto Stock Exchange Montreal Stock Canadian Securities Exchange Winnipeg Grain Exchange Investment Dealers Assn. of Canada Private Wires Between Watt & Watt Incorporated Members of 70 Pine National Security Dealers, Inc. Street, New York 5, N. Y. LOCAL Fort William Bloor G. E. Leslie & McCLELLAN, L. A.* Limited, Toronto — St. Clair K rkland Lake Timmins Wires to G. E. Leslie & Co., Montreal R. K.* at Yonge — Haileybury McCuaig Bros. & Co., Montreal Reynolds & Co., New York City McConnell & Company Limited, Toronto Blair & Co., Locke Gray j. & Co. Burnham Port Arthur & Co. New York — —- City Calgary-Vancouver New York . City Osier, Hammond & Nanton Limited, Winnipeg McKIBBIN, R. Bank of B. Partners Canada, Ottawa Thomas Bay BRANCHES Bankers Bond Corporation Mcdonald, d. at Co., Montreal London, Ontario WHitehall 4-3262 Bell System BRANCHES McCain, g. e. a.* McCONNELL, Buffalo OFFICE STREET, TORONTO Graham & Co., Montreal New York Montreal Association 255 BAY IL* Teletype N. Y. 1-374 McLAUGLIN, H. Roadhouse J. L.* McLeod, Young, Weir John & Company Limited, Montreal M. Rogers D'Arcy M. Doherty Clifford T. Low James W. Cochrane Clayton M. Williams 30 THE 30 C. R. Hicks, Toronto; Continued Erwin & Company, Ltd., Toronto; Stanley Cox, Bankers Bond Corporation Limited, McAIpine, Brawley, Cathers & Company, Toronto; Mr. & Mrs. C. T. Graham, Bond Corp., Kitchener, Ont.; Thomas E. Rogers, R. A. Daly & Co., Toronto; Mrs. G. K. Anderson, Toronto; Mrs. J. A. Senecal, Montreal "■ TV" •• 4 D. D. ..." ' ' Educational Director of Investment Bankers Association of America, Washington, Director of Investment Bankers Association of America, Washington, A, Schmidt, Schmidt, Poole, Roberts & Parke, Philadelphia, President of Investment W. Boehmler, Walter C.; York Limited, Montreal A. E. Ames & Co. Limited, Harrison & Company Limited, Toronto Toronto Court R. A. Willolighby & The Limited, Greenshields & ROBERTSON, W. H.* Macleod, Riddell & Co., Montreal £o. Inc., Montreal J Mills, Spence & Co. Limited, '. Toronto PRICE, A. S.* MURDOCH, GEORGE ROBITAILLE, S. H.* Royal Securities Corporation Belanger Inc., Montreal Municipal, Public Gairdner & Limitee, Montreal PRICE, W. H. Chronicle," New York ROGERS, J. C.* Price, Evans & Company NEVILLE, H. E.* Utility and Industrial Bonds Lajoie, Robitaille & Cie. Limited, Quebec MURPHY, HAL* "Commercial & Financial Government, Provincial, "Telegram," Toronto POWER, WALTER F. MORAN, W. T. Canadian Daly Co. Limited, Toronto ROBERTSON, F.* Company Ltd. JRegina Toronto Participating Distributors and Dealers in Reporter, Montreal ROBB, R. F.* POUTNEY, F. B. Ottawa Wood, Gundy & Company Limited, REEVE, MISS FERN Nesbitt, Thomson and Company, MITCHELL, N. A.* MEDLAND, C. E.* Harris & Partners America PLUMPTON, K. E. Dow Jones Ltd., New Houston, MAYHEW, L. E.* of Association Bankers MITCHELL, A. W. Attendance at LD.A.C. Convention H. C. Flood & Co. Limited, Toronto Company Limited, Montreal Nesbitt, Thomson and Company, Securities Dominion Corpn. Limited, Montreal RAYMOND, A. J. NIXON, S. E.* ROGERS, THOMAS E.* R. A. Daly Co. Limited, Toronto Inc., New York Limited, Montreal Bartlett, Cayley & Company 320 NORNABELL, L. C.* Charles H. Burgess & Company, Toronto Limited Toronto Bay Street 1, Ont. NORRIS, J. H. Canadian Government, Municipal Collier, Norris & Quinlan Limited, Montreal and NOXON, W. J.* Corporation Securities Charles, H. Burgess & Company, Toronto OSBURN, A. G. Pemberton Securities Charles H. Burgess & Co. Limited, ANDERSON & COMPANY Vancouver / LIMITED '' * . . • OSTIGUY, J. P.* TORONTO Casgrain & Company, Limited, Montreal . Members PARKER, R. E.* DEALERS W. C. Pitfield & IN INVESTMENT SECURITIES '' SINCE The Investment Dealers' Association of Canada Company Limited, Ottawa 1909 W. H. Watson B. H. Mason A. L. Howard A. L. Anderson PATTEE, J. G.* Dawson, Hannaford Limited, Montreal Members Toronto Stock Investment Dealers' Assn. of *" PAQUET, ROGER* Exchange Credit Interprovincial Canada Limitee, Quebec 255 Bay St., Toronto EMpire 4-8471 • PEET, E. F. Branch—Brantford, Ontario R. A. Daly & Company Buries Bros. & Denton Inc., NewyYork limited PEPALL, W. G* Members Bell, Gouinlock & Company, * • Limited, Montreal Dealers' Association of Canada The Investment The Toronto Stock Exchange * PEQUEGNAT, J. A.* Cochran, Murray & Co. Limited, Toronto underwriters WILLS, BICKLE & COMPANY PETERS, C. L. in F. J. Brennan & canadian TORONTO STOCK EXCHANGE THE INVESTMENT DEALERS' ASSOCIATION securities PHENIX, YVON* Inc., Montreal investments King St. West 1 Orders executed on all Exchanges \ Dominion Securities Corpn. Toronto Private wires to Montreal and Neiv York . PHIPPS, G. E.* r corporation OF CANADA Geoffrion, Robert & Gelinas 44 dealers Company and THE and government, ' municipal Limited, Saint John Members: 44 KING STREET WEST 414 ST. JAMES ST. WEST TORONTO MONTREAL EMpire 4-4441 Limited, Toronto MArquette 8038 PIPER, JOHN* EMpire 8-4561 A. E. Ames & Co. Direct Limited, Montreal * Denotes 1955 C.; Murray Hanson, Executive MEYER, RICHARD from page 29 ' Thursday, June 30, FINANCIAL CHRONICLE Harrison Bill Waterloo ■ COMMERCIAL and Mr. and Mrs. private wire to Oppenheimer, Vanden Broeck & Co., 120 Broadway, New York y' Convention Number John THE Norris, Collier, Norris & Quinlan, Montreal; Bruce Kippen, Kippen & Company, Inc., Montrea".: Terry Flood, Flood & Co., Montreal; Judy Thomas ROGERSON, E. A.* SAVARD, A. Mills, Spence & Co. Limited, Dow Jones Ltd., New York L. G. Beaubien & Co. Dominion Securities • : i Gairdner & . It.■ Saumlct-xLimited/'.:, Denotes Company Limited, Limited, YOUNG, N» D.* Dominion Securities Corprt. Limited, Toronto wittstock, r. c. Watt & Watt, Toronto Limited, INVESTMENT BONDS & SHARES st. pierre, jean A. E. Ames & Co. Company Ltd., J. R. Meggeson & Co. Limited, Montreal Vancouver LIMITED sullivan, w.* Equitable Securities Canada ROYAL BANK BUILDING TORONTO Limited, Toronto swindell, g. s.* Wood, Gundy & Company ^ Limited, Winnipeg A. F. Francis & Pemberton Securities Vancouver Montreal SHERWOOD, G. D. Mr. and .Mrit,- Limited, stewart, w. a.* Midland Securities Limited, ■... Thomas B. Read * Limited, WRIGHT, A. FRASER A. E. Ames & Co. Royal Securities Corporation Limited, Toronto Company Limited, MEMBERS: THE ESTABLISHED 1921 INVESTMENT DEALERS' ASSOCIATION OP CANADA taprell, w. r. Company Carlile & McCarthy Limited, Calgary LIMITED tatton, l. a. James Richardson & Sons, Chatham - INVESTMENT SECURITIES thompson, j. t.* Members Investment Dealers' Association of Molson Securities Limited, Montreal Canada trigger, raymond* "Investment Dealers' Digest," 36 James Street South, New York 66 King Street West, hamilton Goodwin Harris turgeon, h. TORONTO • Greenshields & Co. Inc., V " 4 Company MEMBERS TORONTO * STOCK EDMONTON THE Mills, Spence & Co. Limited, Toronto EXCHANGE STOCK INVESTMENT DEALERS' ' EXCHANGE ASSOCIATION OP CANADA STOCK BROKERS AND BOND DEALERS vandewater, h. j.* Wood, Gundy & Company Limited, Toronto Partners—Roger A. Wilson, Peter L. Robinson, Goodwin Harris Est. 347 / vermette, d. h. J. Bradley Streit & Co. & v - Montreal van duzer, j. f.* Bay Street Toronto 1, 185 North Front Street EMpire 3-9041 Sarnia, Ont., DIgby 4-8831 PRIVATE Savard & Hart Inc., Montreal WIRES vidricaire, h. j. James Richardson & Sons, Montreal wadds, r. w.* McLeod, Young, Weir & Members: The Toronto Stock Company Limited, Toronto Exchange ward, d. h.* Canadian Stock Exchange Limited, Toronto Winnipeg Grain Exchange Anderson & Company Limited, „ Toronto V" white/ leslie Osier, 80 RICHMOND ST. W. N. L. MacNames & Company e. HaiVnond & Nanton Phone: EMpire 84831 LIMITED Limited, Winnipeg whittal, f. r. Toronto, Canada Corporation ecurities watson, w. h.* Edmonton Stock Exchange 66 KING ST. W. Government and Dominion Securities Corpn. Calgary Stock Exchange Members of the Investment Dealers' Association of Canada , C. J. Hodgson & Co. Ltd., Montreal wightman, l. m. Isard, Robertson & Co. Limited, Toronto Adams, Halifax stewart, g. c.* Limited, Toronto "n. vd/do J. C. Mackintosh & Co. Vancouver A. E. Ames St Co. SHAW, n. v.* ATTNDERS, E. M.* Nev spragge, w. p.* Toronto Samis & Company Ltd., Vancouver Mrs. WOOD, j. D.* Limited, Montreal Toronto Harris & Partners & Limited, Montreal Limited, SENNETT, D. M.* SAMIS, B. C. Co. Mr. Toronto smith, v. b.* Hart Smith & Company, Montreal Corpn., New York & wilson, ross Toronto Toronto Halifax •. Harrison & SENECAL, j. A.* RUTHERFORD, G. P.* Mead Toronto; Limited, smith, c. t.* Ross, Knowles & Co. Limited, Stanbury & Company Limited, Canada Limited, Corporation wilkin s, g. c. Wills, Bickle & Company, SCOTT, L. W.* ROWAN-LEGG, E. STEWART Sullivan, Equitable Securities Intercity Securities Toronto Washington Limited, Montreal Walter slipp, c. r. Investment Bankers Association, Collier, Norris & Quinlan Mrs. Limited, Quebec SCHMIDT, W. A.* ROSS, G. A. & Dominion Securities Corpn. Nesbitt, Thomson and Company, Limited, Kitchener ROSE, FRANCIS M. Mr. simons, r. Savard & Hart Inc., Montreal SCHAEFER, D. E. m.* Montreal c COMMERCIAL and FINANCIAL CHRONICLE 66 King Street West, Hamilton Telephone JAckson 7-6656 19 Mellnda Street, Toronto 1 EMpire 4-3343 X
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