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E ' Industrial Development and 'f' IFmrdeombeachisud Together my: President 'i'); an Annual Meeting of, mm... , The Royal Bank of Canada May Build New Separate School In Housing Area "The need for adjustment would not be I0 great in the long run if we wen content (which we must not be) to continue " a reducer of Ire,',','.", products for nal mtv n mare elsewhere On the other "Economic development mun: (I) that Canada's population must 9mm! at a, ratgpossibje ugly with the western democracies has Wtf on balance during last. e have seen the urgent demand of the defence economy superim- posed on an economy already strained by the effort to recon- struct a war torn world. It should be a source of comfort in these trying times that our advance towards military strength has not required a wholesale retreat into controls. Indeed, we have man- aged to gain a military strength and at the same time to achieve a fuller measure of flexibility in our economy. Our satisfaction should not make us complacent. But, barring the final tragedy of large- ocale war, we can hope through right policy'to continue our ad- vance towards the twin goals of economic as well a; political free- Inge immigration; (2) that her capital investment must continue for a long Fried to be a large proportion 0 her national Income, and ts) that outside capital must have eonBdence in I ft'hTt',',','f,','tt, mt just and aqua treatment. ie development means anything but a quiet hte for We“. businessmen, and gov- men: otBcittls. Pum were damned Monday night " n '."i2',s of the Wim- Ioo Me, Schoo Board, for the qgteht m of a twin“ school in an It,'.",',',',,,?,':",'),'.'?: m. The board pa that eogtrteue. tla mus-rt not: you, Addif of another mom at St, "Another example of what we have in mind is the freeing dt the Canadian dollar in September, 1950. The removal of import re- strictions of January I, 1951.431:- ried the process another step for- wnrd. The success of this ex- change policy is shown by the strength of the Canadian dollar in the face of a large trade and ser- vice deficit. The so-called "hot" money that came into Canada during the summer of 1950 has been effectively cooled off. In- deed. we have seen a significant inBow of stable investment capital into Canada throughout 1951. Moreover, the basic strength of the Canadian dollar has been such that the Government in De- cember. 1951. removed all re-; maining exchange control, and so restored to the traditional chan-, ml: of private finance complete) freedom in the field of foreign ex- "ear l . "A l in all, thtfree economy in "The ability of our economy to sustain the shock of adjustment to the economic needs of the defence programme depends in large mea- sure upon increased flexibility. By ttexibitify we mean in the most general way the ability of prices, interest rates, and ex- change rates to adjust to chang- ing economic conditions. An ex- ample of this flexibility IS the Government's interest rate policy of the last year or so. Higher in- terest rates reduce intutionary pressure in two ways: ttrst, they curtail the unwarranted expan- aion of credit; and second, they encourage thrift by making sav- ing‘more remunerqtive: _ Aria and toster the long ragga d.voio.anent ot Canada, win e "rrsotr of the annual address of ’Ilnet Muir, President at the An- pupl General, Meeting. ot_ Share: " do not think we need worry too much about the private in- dividual dissipating his savings and so adding to the inftttiytar.y. pressure. Nevertheless, he should receive every encouragement to add to rather than spend what he has accumulated, Unfortunately, experience does not point in quite the some direction regarding the Government's surplus. This sut- plus. induced as it is by increased taxes, perhaps designed to check iytPtion, actually becomes an in- ttationary time bomb unless it is rendered inert by impounding it as I deposit in the Central Bank or by using it to retire Govern- ment debt held by the Central holder: of The Royal Bank of Canada. tntution, he said, was Btiil a under problem, and he doubted the electiveneu ot high taxes on a curb on either “Mute or corporate spending. or did he consider the Unexpected budget surplus ot $635,000,000 a reason tor complacency; It could become an intuuonary "time bomb" un- leu rendered inert by being im- pounded u a deposit m the Cen- trnl Bank or used to retire Gov- ernment debt held by the Bank of "By itself," said Mr. Muir, "thia unplanned surplus is neither an elective check to Inflation nor a moon fqr .compleenc.y and gel!- townmhtion. The danger here is at the Government with as increased surplus and the public with its increased savings are bet- ter able than ever to increase ex- penjiigure in ghe future. _ W long - program“ to - mandbriugpricacburb05bodn. Soadaugerinlargobudgaaurplu... “Reward saving, Petue ape-ding.” 2t,edgtra'teetiMpfflitripl “11559.19.an FLEXIBILITY NEEDED FREER TRADE "Now the dilemma I have posed is a serious one, particularly in the immediate future; but I believe it can be resolved. Indeed the prob- lem may appear hirer than it really is; for tari protection tends both to retard and to con- ceal the true eltkiency of a na- tion's industry. - _ - hasten the process. Our [Int step should be a long-run pm‘nmme to reduce or abolish excite and sales taxes at the manufacturer's level, thereby reducing the die- parity between prices to the con- sumer in Canada and to the con- sumer in the United States. The result will be a more rational price and tax structure for the de- velgping Canedian eeonqnpy. “Moreover, both steps in the suggested programme would re duce the present disparity be tween prices on a wide warms of articles to the consumer in In» ad. and to the consumer in the United States. This in not only good in ttself but may give me usunnce at least that our It“ And talented young people will no)? What t shall try w'ab'isfio discuss the economic problems m-’ valved. “Our second step should be an- other lonf-runl programme to get reciproca concessions in Hide. particularly from our nearest neighbor, the United States. not "There is little doubt in myi mind that Canada can achieve' both industrial develogment 1nd. freer tede. Our pry, leg: is to hand, the use of the tariff or other device to tome Canadians to buy home-manufactured foods merely reintroduces some o the inBexi- bility we have been Ppt to avoid. Whatever one my t ink of protection as a means to econo- mic development, it is true that our position next to the United States makes a high taritt both a cause for discontent and a temp- tation to break the law. The " ternative, competition with US. industries enjoying the low costs of a large mass market, might seem at Brst glance (at least in the opinion of many) .to rule out a diversified industrial economy for Canada. "At this point I wish to make it clear that in the remarks I an about to make I take no position in the political controllers; so long attytciated with our tari po- boui- School was diam-Ind. Due to increase] attendance the rooms are overcrowded Mich-cl Palmny was reeled“ chairman for I third M. Clank-man ot the vim" com- mute.- m Leo We. been}: Chum: sum. "W; 11”.me can. can“; Leo WN ' mm Gririkiii: ding; [om ar, unduly; tttrr- William-mam”.- nnuuw to the Watch» Libra-y A further aggravation is that provincial and municipal ales taxes, levied on the retnil price, obviously become altar! of tax on taxes. This is ba in princi- rle, and, as we have seen, it acks even the virtue of expe- diency: in the fight on intution the federal tax is ineffective because concealed. tt is unfor- tunate that in 1951 this slap at spending had to be administer- ed with an anaesthetic. mn-lmoluxpollcylo 00ml: t',tt,ivo'gel,uetttpg nott tpokypem spand- mg and award- "tring. Whth thuinmlndoulnuu may In: tt,tgcP1uge,gud t me When: even 't'rJlfeh,rttnothh"l'. Corporluom were even hud- er hit in the um budget. an agtsin the reel question is not, "Is this fair?" but "Did the new corporate an: penalize spending and reward uving?" To this question, the answer is simply, "No". Human nature being what it is, heavy car- porue taxes tend to increase spending by corporations be- cause the Government is pay- ing a correspondingly large pig orthe that. _ _ . cost of living and a reason tor demanding higher wages to: his work or a igher price for histrodyct. _ 7 A - ha been hit and hit nun. That is, of count. tm- fortunate in itaeit, on tg"'fdg ot am t tet But rod question is, " ow much of an increase in taxes on this group in the In! hi" of 1061 came out of ttptr,',',' The mom that came out o “Vina. the let. the slice! on iMationary pra- sure. . The increase in federal ex- cise and sales taxes is unpleas- ant, but these taxel do hit the spender where it hurts. Un- fortunately he does not know what is hitting him. Why? Be- cause the taxes are levied It the manufacturing level, owed on plus mark-up at various points from there on, and tin, ally concealed in the retail price. The system is therefore, inefficient: for it takes out of the consumer's gourd much more than it yiel to the Gov- ernment in revenue. But, worse still, the purchaser sea the whole increase in price not as a' tux, but " a rise in the Ineontmst,alarge the Med yqu tivAfottr2tefgtogget lic of the gnaw 1mm HMVIEB TAXES Nor [MVI " SPENDING CU“ be tempte'd Gai, isut " clients (cross the country. The gratifying mgr: before you to- day is a log 1 outcome of this ttiererviceudtothestairiwish to say u sincere "thanks" on be- half trt the 'tuysageeeyttyts well u seek their fortunes in their native Ind and contribute to its develop- 'ee! attd PW‘E‘x. ' - . . "No one with faith in Canada‘s future will deny that, given time, all these dillcu ties of our econo~ 'gt 'lpe,'t',',tt'f, will be trium, an y o me. "I! we mum will become and gig: pride pf eoenur-rbe- ) Reports Amie} Over $2.5 Billions “It is always a pleasure to con- clude my remarks to you with an enthusiastic tribute to the mem- bers of our staff. The success of any company or institution must of necesmty bear a direct relation to the degree of eMciency ot its personnel but this is particularly true of a bank where the things we sell are service and friendli- ness. The friendly {spinach is traditional with our 3 and ser- vice beyond the call of duty is the rule rather than the exception. The stall of the bank numbers It,- 400, in addition to which we em- ploy approximately 1.200 people in other capacities, or a total of over 13,000. Their loyalty to and enthusiasm for the bank are most heartening to. the Faresutive and the shareholders. Whatever my be in store in the yen just begin- ning, I am eorutdertt the staff will meet the situation with etBeiencr, loyalty and enthusiasm." mam-my mm "a: J, ' lurk-ah 'trSA'tti "We have, of course, world-wide relations with correspondent banks in all countries where we have no branches and from these mums obtain information and reports on conditions and com- mercial regulations which are of inestimable value to our trading clients" said Mr. Atkinson, "but based on over 50 years of opera- tions abroad and wide experience in foreign fields, we are flrmiy convinced there is no really ade- quate substitute in any business for direct representation by the organization itself. Experience with trading customs and intimate knowledge of local pra_ctices in the many countries where we operate, coupled with the close liaison which exists between our representatives abroad, both di- rect and correspondent, and our Head OfBce Foreign Departments, places us in a position which en- ables our bank to provide facili- ties tor clients and others directly interested in international trade) which otherwise would not be available. 1 ‘"mdu' . - Kink- Ea iGilUd t has Mr. (Ab-m 'ittg! " 'lt"d'd'f,"'l, mm. t't 'ii?hlhi t"t2fd0tfft' ren- " Mil. MN, to 81,111,- 2bfdl, r"i"it'ttiit'iiiCii! m u now stand It 'turs', 17,000. The bum in both ','."W'ff, contu- am new meow. e m parti- culurly hand that the number at TLt neonat- on the books ot up in": luau-ans: over t00,000 yen now exceed tttalt ' _ - j The bank: programme of im- provement to branches, which has gone on steamy time the end of the war. continued during the nu to provide the public and and with modem, up-to-date 1n- cimies and surroundings. Brunch- es in geniton on November 30th null 761, at which " were lo- cated in countries ouuide of Can- . Mr. Atkinson noted that Canada Y' today one of the foremost trad- mg nations of the world and he sud a tribute to the Government ZS,',',',"',','.', responsible tor de- veoping new markets for Cana- dian groducers. Without world- wide anking (aunties. however, Canadian traders would be seri. ously handicapped, he said. The Royal Bank of Canada was in a unique position to provide such aervxce because ot its 62 branches in the Caribbean area, Central and South American and its direct representation in London, Eng- land, New York and Paris. -t'i'2iff,?2t23iialiaiiiteLtidt for the yet: had ineieaqed $3,131,- as although this had been some- what more than counterbalanced by warned but. After pmvid- In; for cunt depreciati9n and dividends, inc 'tdia/lt addition- al dividend of " '000 lat the rate or 80e per share) the tank mun-ed two million dollars to the Reserve Fund and carried tor- my $_i,0t6,i63. _ . ihiaattiiii Lai iiiiCitiiftau.iii, . Tm“: _ Cyan] Manager *1me MM“. Arytg.ts PRAISE FOR STAFF ROYAL BANKS UNIQUE SERVICE This superb tea guarantees the favour of every cup CpfjTi'Efiriii ri'EiEi'rilr:i unawa- cull-hi an.“ V . mun-luau.“ ""-nr.J-earrb-rwttae. The secret is to put the Ird back on the saucepan and steam the buttered vegetables for a minute or two. Brighten up your meals by serving chicken often. Light weight chickens, that is, Broiler type chicketis weighing " to 3% pounds are in good supply. They may be purchased whole for roasting or cut up for frying or baking. A little butter goes a long way The Canadian mainland sup- Judging from the number en- was" 1mg?! Soc,','.",',",:',, g,rtte/,,e,'.' plies more than two-thirds ot'gaged in it, the any mun have #l?,'J' 22'f, 'i,Af,'"ift"llSnh hm Newfoundland imports. passed when crime doesn't pay. ( a In. no. M. - mum. Mr, hm Baud-a. Pro, \mgmh what“. It In; M wu'nwo 35369513 Iii. If}. " -' “we...” - ‘1- imp HAMS Jil. so: ti KLAEHN’S MARKET Phone 3-3641 9252”" 339103539; SIDE BACON _ so: lb. COTTAGE ROLLS Ttte lb. IUNTING IA“ - COATS!“ " WW": MOS' SALE IN FULL SWING! JANUARY CLEARANCE STATION WAGON GOAT! - Ila. Munich of nylon, "tin alanine, corduroy. dlnddlh nnd wool “birding BUY NOW 1951 PREFECT Complele - 450.00 Down 6.99 per Week USE YOUR FAMILY ALLOWANCE CHEQUES oe My m am 0:00 SPECIALS THAT WILL "TICKLE YOUR PALATE And Plus. Your Poclufbook" The K iddiK in y GABARDINE in a beautiful rayon weave. Spring pastels and the always popular navy. Sizes tt to IS 32175 Open all day Wednesday at Goudies GREY FLANNEL: ta rayon m with a quality o1r) - tailored neckline, Peter Pan of shawl-line collars . . . with kick pleats front and back. Sm: II to 17 and 14 to 18 $19.75 SUITS with an air of Spy-h; $29.75 Mn In" Idling. Pinprl'o'ru Classics that do year- ‘round duty 6 on: on AU. ...4-gorodddrt Shoppe