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LL) / #HURSDAY, DECEMBER 13, 1951 THE DAILY TIMES-GAZETTE- PAGE TWENTY-ONE HALF CENTURY SINCE RADIO FIRST USED By KINGSLEY BROWN Canadian Press Staff Writer St. John's, Nfld. -- A December breeze will probably sweep across nearby Signal Hill next week, just as it did 50 years ago when a frail Italian flew kites from its lofty summit. On Dec. 12, 1901, the Atlantic winds gently swayed a box kite that trailed 400 feet of copper wire © to a telephone receiver held by s ¢ Guglielmo Marconi, wireless tel- J phy inventor. : he hill hasn't changed much f since then. It still is the barren knoll that rises 600 feet from the Atlantic, about the nearest geogra- phical point on the North American continent to the British Isles. But Marconi, the mysterious lit- tle man who kept apart from New- foundlanders and conducted his ex- periments in secrecy, proved on hat day the trans-Atlantic electric ve telegraphy was feasible. He convinced learned men, single-handed unaided, that in- telligible signals could be sent through space without intervention of a conduction medium. Scientists confidenily declared at the time that wireless waves, over long dis- tances, would not follow the curva- ture of the earth. Marconi's actual work was not known until it was completed. The general opinion at the time was the Marconi was attempting to con- tact a vessel that was to pass New- foundland. He knew his experiment had been successful when he heard a pre-arranged morse signal from Poldhu wireless station, 2000 miles across the ocean in Cornwall. MARCONI'S STORY In Marconi's own words: "It was about half past twelve, I remember, when quite unmis- takably three faint clicks in the telephone sounded several times in my ear. I listened again and sgain; but I wanted corrobation. "I turned to my assistant: 'Can you 'hear anything, Mr. Kemp?' I asked, handing him the telephone. He listened and heard it too. "On the Jollowitig day the signals Marconi, winner of the Nobel rize, Italian marquese and sena- Nr, president of the Royal Acad- emy of Italy, died in Rome July 10, 1937, at the age of 67. His last inventions were for short-wave fo- cused radio beams; his last public service, the Vatican's earth-cir- cling short-wave broadcasting Canada had a prominent part in the development of wireless tele- graphy. It was the first country to give real financial backing to the Jtalian inventor. When Marconi found he could build a permanent station in ewfoundland because of some sgreement between the colony and |: cable companies, he came to Syd- hey, NS. gquainted with Alex Johnson, who took him to Ottawa. After talking to Sir Wilfrid Laurier, then prime ter, and Finance Minister elding, he came back to Cape with $80,000, more than enough to build at Glace Bay the first permanent trans-Atlantic Fi utes Sianios. 'ATIONS ESTABLISHED In 1904, the Canadian govern- ment gave Marconi permission to |! establish stations along the Canadian sea coast as far north as brador. he first ship to be equipped with wireless was the Canadian cable vessel Mackay-Bennett, owned by the Commerical Cable company and stationed at Halifax, N.S. The Bennett is better remem- bered for her part in rescuing sur- yivors of the Titanic. { At the time when Sir Thomas was sailing the first of his 'Shamrocks' in an attempt to the America Cup to England, Marconi had a wireless set placed on the cable ship through an ar- rangement with James Bennett of the New York Herald. The Bennett transmitted a hitch- by-hitch account of the sailing classic's progress to the news- per, giving it a clean beat over ts competitors. The apparatus re- mained aboard the ship and was later replaced with more modern uipment. . It was finally stowed away in an old locker--and forgotten. ' The Canadian author, Thomas , today has the detecting device of Marconi's wireless set in . pe study of his Liverpool, N.S., ome. « Raddall, one-time wireless oper- ator on the Bennett, heard that the -making set wi "some- ere aboard ship. | With the bsun's ce he found the ap- tus, 'by then showing signs of ge and misuse. « He kept the detecting device as souvenir of Marconi, the world's rst wireless operator. 1] ' SALVAGE GERMAN SHIPS pSmekhalm (CP) -- ave Ger- an g ps which foundered in Swedish minefields in he Baltic on July 9, 1941, are to salvaged. On striking mines the ships went down in a few minutes and some 200 men lost their lives. YULE GIFTS FROM NORWAY Oslo (CP) -- This city is sending 0 large Christmas trees to Lon- on and Reykjavik, Iceland, as gifts from the municipality. The Norwegian National Travel Associ- un, meanwhile, will send a 45- Christmas tree to Rotterdam. To supply the blood with its essary iron, the body must pro- fice that mineral from the food we eat. Iron-rich foods are dark green leafy vegetables, prunes, ra- sins and meats such as 'beef, sdver, kidney, tongue and heart. Eggs, also, are a good source. There he became ac-|f Utica W.A. Elects Officers For Year MRS. R. WILBUR Correspondent ' Utica--The December meeting of the Women's Association was held at the home of Mrs. R. Wil- bur on Thursday afternoon, Dec. 6. Mrs. George Mitchell presided during the devotional period which was based on the Christmas mes- sage. At the close of this portion of the meeting, Mrs. H. Walker took the chair. She expressed her thanks for the co-operation she had received during the year. It was 'decided that Mrs. J. Ackney, Mrs. Wm. Philip and Mrs, Tom Lakey should be made honorary members. The minutes were read and approved, The roll call was answered by the word "treasure." It was moved by Mrs. R. Sandi- son and seconded by Mrs. R. Sut- cliffe that Mrs. Geer be paid for goods bought and that Mrs. Sandi- son get topic cards. It was also decided that a book study be in- cluded in next year's programs. Mrs. C. Geer gave the year's fin- ancial report. Next month's roll call is to be answered by a housekeeping hint or a favorite Scripture verse. The meeting was concluded with the Mizpah bene- diction. Officers elected for 1952: Presi- dent, Mrs. H. Walker; devotional president, Mrs. G. Mitchell; vice- president, Mrs. E. Ballard; treas- urer, Mrs. C. Geer; secretary, Mrs. R. Wilbur; recording secre- tary, Mrs. R. Sandison; parsonage committee, Mrs. J. Crosier, Mrs. R. Wilbur; pianist, Mrs. R. Sand- ison, Mrs. H. Walker; flower com- mittee, Mrs. J. Mitchell, Mss. C. Harper; visiting committee, Mrs. N. Rusnell, Mrs. 5. Geer; Mrs. J. Mitchell, Mrs. G. Mitchell, Mrs, C. Harper; birthday box, Mrs. R. Walker. The program consisted of a *~~"inc hy Mrs. R. Sandison and a Christmas contest which was L...uuCiea by Mrs. G. Nelson and won by Mrs. Handel. Group Six served a hot supper. Church and Sunday School will be at the usual time, of 2 and 3 o'clock, with practice after Sun- day School for the children's part in the combined service on Christmas Sunday, Dec. 283. The Public School Christmas concert will be held on Tuesday evening, Dec. 18, at 8.15 p.m., in the hall and the Christmas Sun- day School party on Saturday "| came down by bus again this year and had a lovely trip--a couple of stop-overs on the way to see the sights and do some shopping. The highway scenery was grand and we passed through a lot of interesting towns and cities. I'm go- ing home by bus too." FARES ARE LOW ROUND TRIP (Subject fo change) JACKSONVILLE 51.90 61.55 98.10 51.50 LOS ANGELES -... NEW ORLEANS ..... (Surcharge Included) Tickets and Information at Gray Coach Lines 14 Prince St. Dial 3-2241 afternoon, Dec. 22, in the church basement. Parents are asked to provide lunch and home-made | candy. Mr. Hill, the minister, is | going to have an animated cartoon and a special Christmas record. | Quite a number from here at- tended the Port Perry High School commencement exercises. Joan Ballard, Lorraine Toogood, Jimmy Wilkinson and Larry Ken- dall received intermediate certi- ficates and Dorothy Wilbur, her entrance certificate. Larry Ken- dall also received an award as runner-up to the senior champion on Sports Day. Mrs. Bruce Bailey is quite ill with an attack of pleurisy. Mrs. Jim Philp is home from hospital but is still in bed. Mrs. Frank Kendall and Larry spent Friday evening with Mr. tended the High School com- mencement. Congratulations-{to-Mrand-Mrs.- Joe Luciano who were married in TUxhridge Saturday evening. Miss Winnie McLeod 'of Port Perry 'and Miss Margaret Con- | naghan of Whitby were at their homes over the weekend. Mr. Jack Crosier has recovered the hound he lost during the deer hunting season in. Haliburton. Mrs. Jim Mitchell and Billy spent last Thursday with Mr. and Mrs. Ivan Gray. Mr. and Mrs. Bert Mitchell and children were Sunday guests of Mrs. L. Parffrey of Uxbridge. Guests with Mr. and Mrs. R. Sutcliffe on Sunday were Mr. and Mrs. Stewart Bray and: children and Mrs. Earl Bray. Sunday visitors at Henry Sker- ratt's were Mr. and Mrs. Bob, Pickard and family, Mrs. John BOMBED TOWN IS BOOM TOWN Coventry, England (Reuters) -- Coventry, one of Britain's most blitzed cities, has become a boom town. It has jobs and good wages for everyone -- and houses for no one. Housing is so scarce that the of Port Perry; Mr. and Mrs. Wal- ter Skerratt of Toronto, and Mr. and Mrs. George Skerratt and family of Nestleton. Mr. and Mrs. Kryhiel and Mr. and Mrs. Stredeski of Oshawa were Sunday visitors of Mr. and mayor had asked people to stop coming to the city, but it is im- possible-to_ stop. them... Coventry's factories -- the ones that attracted wave after wave of German bombers during the Sec- ond World War -- pay the highest wages in Britain. Thousands of workers are earning up to 17 pounds ($51) for a five-day week. Some areas of Coventry have the appearance of old-time western gold rush settlements with pre- fabricated houses and wooden shanties springing up where build- ings were knocked down by the German air force. Millions. of pounds worth of re- armament contracts --- planes, tractors and madchine tools -- are responsible for the boom. But the town has many . head- aches. You can never be sure that the or the grocer will be there tomor- row. __The story is told of a bus driver | driving a full load of passengers, who passed a notice announcing "men wanted" outside a factory. He pulled to the side of the road and dashed inside to get himself a job which paid more money than driving a bus. i Yet even busmen get higher wages in Coventry than anywhere else in Britain. Drivers get more than conductors, but the conduc- tor with a basic wage of $17.85 can collect nearly $27 a week with overtime -- and there is plenty of overtime. Everywhere there are workers with money to burn. The taverns are-always full and there are queues at the local dog racing tracks. Yet scores of these men go home to sleep with their families in one years to get on the 1st. their money cannot buy. Some* 14,000 persons are on the waiting' list for homes and it takes s With the jump in wages, the. cost-of-living has aiso risen, House- wives say that they find it cheaper to pay bus or train fares to towns 15 and.20 miles away to do their shopping. : FAMOUS BARRIER Stretching: from the Mediterran- ean to the Danube, the European Alps cover an area of 80,000 square es. . A After he is one month old, a child should be taught to accept: food from a spoon. This will help to introduce the solid foods which will be part of his diet at three or four months. A good start can be made by giving his fruit juices me ---- and Mrs. Harold Kerry and at Pickard and Mary Louise Pickard Mrs. Wm, Dittrick. baker, the milkman, the plumber room. A house is the one thing all and vitamin.D from a spoon. If we want more... WE MUST PRODUCE MORE or Face Hazard of Further Inflation . « « says Dominion Bank President 81st Annual Meeting of Shareholders THE DOMINION BANK Impossible to stop Inflation by Price Control . . . says Mr. Rae. Addressing the 81st Annual Meeting of Share- holders, the President, Robert Rae said in part: The year 1951 has been marked Wy two new develop- ments; one of them international and external to Canada, the other a domestic change of policy. The attion of the Monet: Fund in Washington on September 28 released all member-governments from one of the most important and, ibly most embarrassing pledges taken at Bretton Woods in 1944. Some day we may recognize it as one of the turning points in financial history. Importance of Gold Standard The so-called Bullion Report of 1810 tardily - nized two facts which prior to that date were vigorously contradicted and denied by those in authority: that the monetary policy pursued, in.Britain particularly during the Napoleonic Wars, had inevitably led to the discounting of Bank of England notes against gold; and that the need for a stable medium, of international exchange especially, could be met only by setting up a gold standard. This was done in 1821. Thenceforward, the pound sterling was a gold coin freely bought and sold, the fixed price of which, in Bank of England notes, guided the Bank's credit policy during the remainder of the century until, in August 1914, the link of the pound sterling with gold was again broken. x Of all the great measures of reform which benefitted Western man during the nineteenth century, measures which made possible an all-round improvement without precedent in the standard of comfort enjoyed by mankind, the enactment of a gold standard was one of the most important. The decision of the Monetary Fund is a belated recognition of the same situation in our own time as was recognized in London by the Bullion Report of 1810. Gold Now to Find Own Price In effect, it means that gold will now be per- mitted, like everything eise which is the result of human effort, to gradually find its own price in relation to paper money, and plainly suggests that a reform of the domestic monetary policies of Members is required to discourage hoarding. We may be glad that our thought on currency problems is now moving in the right direction, even though the market price of gold may remain relatively unchanged for sometime. During 1951 there has been a fundamental change in our domestic policy. It has already caused a good deal of discomfort both to Canadian business and to the man-in-the-street. I refer to the controls of credit which are now being pursued jointly in Ottawa, by the government and our central banking authorities, with a view to preventing further inflation. By this time. last year, inflation was assuming proportions much more dangerous than was generally realized then, or is realized even now. Many Canadians regard themselves as victims of inflation, but fail to recognize inflation as destructive of prosperity, and the deadly threat to themselves and their families which it is. Inflation Destroys Savings Most earned incomes have been forced up since 1939 faster than the cost of living has increased. The success of large numbers of individuals in quickly raising their own dollar incomes, blinds them to the fact that in inting more and more dollars to finance these en- i ed income payments--in thus cheapening the Canadian dollar relatively to goods or to gold--we have been destroying gradually but inevitably the real worth of the savings on which, as individuals, they depend for their future solvency. Millions of Canadians, undoubtedly more prosperous than in 1939, are destined to leave their widows and children unnecessarily poor because of this gradual destruction of the pur- chasing power of the dollar. We are bound to feel encouraged when, none too soon, those in authority take steps to control effectively the creation of new purchasing power. Some among us mistakenly still think you can stop inflation by means of price controls. You cannot. Credit Curb Only Remedy Painful though the process may be, there is no dependable remedy for the disease of .inflation except this one of restricting credit. The medicine tastes nasty, but for our own sakes, still more for the sake of dependents we must leave behind, it must be swallowed. All Western countries during the past twelve or fifteen years have been flirting with and have become entangled in the theory that rates of interest can be manipulated successfully, kept artificially low to conform with certain ultra-modern conceptions of economic planning. But evidence is accumulating that the manipulation of interest rates must and will, if adopted as a long-term policy, be followed by deplorable consequences. Is it pot time to adopt again the time-honored prescription and undertake our main stand against inflation by means of open-market operations, resolute- ly pursued on the necessary scale and during the necessary length of time? hese issues are not merely the concern of bankers and business borrowers. The decisions now bein, carried out affect (or will affect in the near future the security, peace of mind and living standard of every Canadian family. For, apart from those short-term inflationary dangers which inevitably stem from the Korean. War and today's imperative need for re- armament, there are also certain long-term inflationary dangers with which we must cope. In my view, the long-term hazards are the most menacing. We must realize that the purchasing power of our dollar could be whittled away, gradually, to near nothingness. Indeed, the communists among us earnestly desire just this, and therefore we dare not neglect these dangers. ot the least of them is a prevalent state of mind. Most people nowadays believe in the Welfare State. Most op demand Full Employment. But you cannot insist that more and more of the national income be given to persons, however deserving, who neither produce nor save; you cannot keep on creating new jobs continuously, without running head- long into the danger which all of us fear: more inflation. Produce More to Have More The fact is that all of us, government and citizens, tax collectors and tax payers alike, must '"'cut our coats according to our cloth."' Other- wise, the continuance of inflation will remain a near certainty. There is one basic truth which it is perilous to forget. A nation's income for consumption is neither more nor less than what its people can and do produce. We cannot enlarge it by printing paper dollars. If we want more, we must produce more. Enough of us know this now to make frequent new Canadian production records. But others do not yet realize it. I am still an optimist. Experience cannot teach all of us, but it does teach most men. As each one convinces himself that Canadians like the rest of mankind, must produce in order to consume, each, I do believe, will take up again his own task, make his own contribution to the collective livelihood, with the determination that is only to be found among free men. Strong Liquid Position Shown in Statement Presented by General Manager In presenting the Annual Financial Statement, A. C. Ashforth, general manager, spoke as follows: I have the honour to submit to you the General Statement of the Bank for the fiscal year ended 31st October, 1951, and shall comment on the more important items. You will observe from the copy laced before you that it is the 81st Annual Balance Sheet which this Bank has issued. Earnings The Profit and Loss Statement shows that, despite rising costs of operation, profits have been well main- tained and, after making full provision for bad and doubtful debts, amounted to $2,920,446.--an increase of $324,685. from a year ago. The sum of $561,382. was set aside for depreciation of buildings and equip- ment--an increase of $111,299. over last hile the sum of $1,190,000. was required for Dominion and Provincial taxes, up $290,000. saving, net profits of $1,169,064, Of this amount $700,000. has been allocated to dividends and provision of $140,000. made for an extra distribution of twenty cents per share--a total distribution to the shareholders of $1.20 r share for the year. The balance of $329,064. has rl added to Profit and Loss Account which now stands at $840,447. It is worthy of note that the total provision of $1,190,000. for taxes is the equivalent of $1.70 per share, or 50c per share more than the total paid to shareholders in dividends, which, in turn, is mostly subject to tax in the hands of the recipients. Strong Liquid Position A strong liquid position has been maintained. Total cash assets at $94 millions were $3 millions higher than the previous year and the equivalent of 22.219, of all public liabilities. Quick or readily realizable assets, embracing cash assets, Govern- ment of Canada, Provincial, Municipal and other high grade securities, together with call loans totalled $224 millions, equivalent to 52.98% of all liabilities to the public. This is lower than last year, reflecting a decrease of $54 millions in our holdings of securities and is oc- Capital $7,000,000 Call Loans ......eovuevenncnsnnane 4 Total Quick Assets Commercial Loans and Discounts Sundry Other Assets. ...oo0uee Deposits by Other Banks . Total Liabilities to the Public. . Capital Paid Up... Reserve Fund.....c0uee. Undivided Profits. . sesenesssssans sess sssscensssssnens Dividends-- Amount Carried Forward. .. ROBERT RAE, President The DOMINION BANK Condensed Statement as at 31st October, 1951 ASSETS Cash on Hand and in Banks, including Bank of Canada Government and Other Securities......... ses sasssanes sess ssssesssenas sesessens Bank Premises... cect eccsecsassssess Liabilities of Customers under Letters of Credit, Acceptances and ssssssessssnssrnens LIABILITIES Letters of Credit, Acceptances and Sundry Other Liabilities Sasa sanesssnsnisasenees ... $439,492,879. see ssssssesasns seen es asses sssensne PROFIT AND LOSS ACCOUNT Profits for the year ended 31st October, 1951, after making appropria- tions to Contingency Reserves, out of which full provision for bad and doubtful debts has been made............. PR | Provision for depreciation of Bank Premises. . Provision for Dominion and Provincial Taxes Dividends at the rate of ten per cent per annum Provision for Extra Distribution--20c per share. ...occoeenanennss CS Vdsonsavaisantany asaniss 329,064. Balance of Profit and Loss Account, 31st October, 1950 Balance of Profit and Loss Account, 31st October, 1951..... Reserve Fund $11,000,000 $ 94,170,910. 115,497,748. .. 14,941,628. ... $224,610,286. 210,726,434. 7,517,956. 15,478,650. $458,333,326. vesnes $409,550,746 «13,952,547. 15,989,586. .... $ 7,000,000. 11,000,000. 840,447. 18,840,447. $458,333,326. 2,920,446. 561,382. 1,190,000. 700,000. 140,000. 511,383. , 840,447. sscecsne A. C. ASHFORTH, General Manager cashioned principally by the increased demand for loans to finance commerce and industry. Call and short loans in Canada and elsewhere ag- gregated $15 millions, practically unchanged from a year ago. Loans of this type are to brokers, bond dealers, etc., and are repayable on call as the name implies. These loans are adequately protected by readily marketable securities. Current Loans During the year current loans in Canada increased by $38 millions and now total $207 millions. The increase is due in part to loans made to our customers engaged ih defence contracts, and to the greater sums now required to finance general business due to higher prices. Grain loans were higher than a Year ago and in all probability will continue at a igher level until the opening of navigation next Spring. You are aware of the unfavourable weather conditions in Western Canada at a time when harvest- ing of the crop 'would normally have taken place. Although the number of bushels of grain will compare «favourably with previous years, the quality will be lower and delivery to the elevators delayed. Many farmers will be unable to harvest their crops until Spring and, consequently, some will need financial assistance until then. Needless to say help will be given them, but many will not have sufficient. funds available to purchase many of the things they contem- lated buying this Fall. This, no doubt, will have its effect on trade. Deposits Our non-interest bearing deposits were $26 millions less than a year ago. In the preceding year such deposits increased $38 millions and this year's decrease is due to the withdrawal of some of these temporary balances. A very gratifying increase of $13 millions has taken place in interest bearing deposits and we are glad to record that an increasing number of people are doing their banking business with us, both in the commercial and savings departments. Canadians, on the whole, have in the past been provident people. At no time has the need for practicing this sterling quality been greater than to-day. Itis realized, of course, that many people are finding it increasingly difficult to save, confronted as they are with higher taxes and higher living costs, especially pensioners and others whose incomes are fixed. There is, how- ever, no better way for us to do our part in com- bating inflation than to avoid over-indulgence in spending, and to save as much of our income as we can. It may be of interest to you to know that at Septem- ber 29th, 1951, the number of current and savings accounts in Canadian Chartered Banks and payable in Canadian funds was 8,462,024. Eighty-five percent of all accounts carried balances of less than $1,000. The average savings account balance was $622., which compares with $642. at the same date last year. I am pleased to report that our shareholders now number 2,966--an increase of 131 from a year ago. It is gratifying to see this annual enlargement. New Branches We have continued our policy of opening branches in new communities requiring banking facilities and also at other points where expansion has warranted our establishing offices. During the past year, therefore, to serve the needs of our present and future customers we have opened eleven new branches. Bank Premises account has increased some $640,000. from a year ago. This reflects the continuation of our programme of acquiring new properties and in en- larging and modernizing premises to accommodate expanding business, to which I made reference last year. Staff The position which the Bank has attained is due in large measure to the efficiency and hard work of the members of the staff and I extend to them, on your behalf and my own, warmest thanks for the excellent job they have done during the year. Especially would I single out for commendation those officers i have direct contact with the public, for on the friendliness, courtesty and tact- displayed in carrying out their duties much of our success depends. As with most Banks, the turnover of our staff is higher than we care to see. We have endeavoured to make banking attractive to our employees and will continue to do so. We have increased salaries sub- stantially and reduced working hours through *the installation of mechanical equipment which has taken much of the labour eut of reutine operations. The welfare of the staff has our constant consideration. Young people faced with a choice of occupation would do well to give some thought to the banking profession and to the security of employment which it offers. General Business In February last certain restrictions on credit were deemed advisable and the result has been reasonably satisfactory, although it has created certain problems. Many manufacturers of civilian goods had geared production to the limit, and many retailers, fearing shortages and in- creased prices, had over-stocked their shelves. Since the announcement of credit restrictions consumers aré pursuing a more cautious buying policy, let having its effect on trade. In- ventories in many lines are still too high and it will take some time yet to work them down to reasonable levels. In the meantime trade liabil- ities of many merchants and manufacturers are relatively high and any lessening of sales might create a shortage of cash with which to liquidate their payables. . Defence spending has been slower than was antici- pated, but the programme is now gaining momentum and no doubt will assist in taking up some of the slack in civilian demand. It is to be hoped that it will have a beneficial effect in giving employment in areas where unemployment presently exists.