The sun., 1918-12-10
MONTREAL BANK q
MERGER ANALYZED
Great Increases in Liabilities
and Resources Noted
in Report.
WAR LOANS OF S98,OOO,OOO
Exceptional Expansions Are
Shown i'm Canada in OctO-
Der Statement.
special pespateA 70 Tn. Soy.

ToRoNTo Dec. 9.-The ant.dal meeting
Of the Bank OF Montreal stockholders re-
Gently in Montreal had special interest
for the Canadian financial world because
It was the first meeting since the ANAL
gamation with the Bank OF British North
America and because II was the last Of
the banks annual meetings held under
the shadow of the war. AS regards the
amalgamation, although the absorbed
bank was a large institution, the profits
Of the consolidated bank were not ap-
probably affected by It on the present
occasion. The banks fiscal year termi-
mated October 81 and tho absorption of
the British Bank was completed on Oeto-
Der Is, only sixteen days previoi sly.
Next year the acquisition of the British
bank will doubtless tell noticeably in the
net results. In a dozen or so cities and
large towns where the British and the
Montreal concerns previously met in
competition the British local Offices have
been closed and the business transferred
10 the Bank of Montreal. Considerable
economy will be effected in this and in
other ways, and the earning capacity
viii not be in anywise impaired.
The net profits-$2,5 62, 000-were the
largest recorded in any Of the last four
~ ~
and f2.200,000 in 1915. The Dominion
war tax on note circulation and dona-
lions to the Patriotic Funds and other
special war funds absorbed $206. 900. the
appropriation for writing down bank
premises accounts amounted to 5000, 900,
and after the IL per cent. dividend had
been provided (requiring sl,s2O, 00O)
there remained a net surplus of s236,OO0,
which went to strengthen the balance Of
Individual profits, making 1t S1.901,0O0.
War Time Expansion.
Perhaps the most interesting feature
Of the 'eXhibit presented at this last
war meeting was the great expansion OF
the liabilities and resources Apart alto
gether from the resources gained through
the amalgamauon, there has been n vast
increase in the total of securities held, of
loans and OF deposits and other liabilities
The total resources have grown to $685.
100000, and these include $4,000 OF
cash. $27,000,0O0 in central gold re-
serves and S114.00o,000 OF call loans and
bank balances in New York and London.
In times OF peace this great Canadian
bank made 1t part OF its policy to carry
very large reserve in the form of call
loans and bank balances abroad. This
was to serve as safety fund against
emergencies or great crises. 1t truly
served very useful purpose during the
stress caused by the war, as II enabled
the Bank OF Montreal to advance funds
Tor war purposes on an unexampled
scale.
Naturally the holdings of Government
bonds figure conspicuously in the assets
sfter four years of war. in which Canada
has placed domestic war loans aggre-
eating nearly s1,400. 900. 900. In the two
headings of the statement under which
the dominion bonds and the British
treasury bills are reported there Is
shown total of $9S,O0O,00 This
would, or course. include the war bonds
heId by the Bank OF British North Amer
'ca prior to Its absorption. With the
approach of the time in which the inter-
national finances OF the Allies will be
definitely readjusted there is a prospect
mat the British Treasury bill holdings
wiz shortly be converted in large part
INTO American funds. When that occurs
the position of the bank likewise that OF
all the other Canadian banks, will be
appreciably strengthened.
Inc holdings OF Dominion Government
conds VIII presumably be reduced TO a
certain extent through the action of the
FINANCE Minister in repaying Temporary
loans from proceeds OF the new war
ioan.. The new war loan is likely to
nave considerable effect on the No
NemOer and December bank statements
On THIS occasion the banks are taking
moderate amount Of the loan for their
own account, and their loans to large
subscribers doubtless are heavy; but on
me other hand there will be some re-.
ouctlon, perhaps larger than last year
IN Inc savings deposits of the banks.
put on the whole. the prospect is for
further expansion.