The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-21
Resume.

HesuIne.
ITO sum up. the situation in Canada
at present as / view II, is that while
there does not appear to be any cause
for apprehension, there is every reason
for the exercise Of the utmost measure
OF caution. Happily. Canada is Well
buttressed on many sides, and the ex-
ercise of prudence and sagacity should
enable her to meet the shock Of falling
prices restricted credits and deflated
currency without serious impairment of
her commercial and financial vitality"
General Managers Address.
Sir Fred erick Williams-Taylo the
General Manager In his address to
shareholders said in part -
AS comparisons are constantly made
between Canada and the United States,
owing TO general similarity IN condi-
tons. one anomaly attracts special at
tons as acute here as II Is across the
line, the price OF money is materially
lower in the Dominion.
This condition; in days OF world,
much attention In other countries, and
is regarded as a tribute to Canada's
good banking system. The one disad-
vantage of this cheap money condition
is that persons on fixed incomes de-
rived from investments face the higher
cost of living including income tax.
with little increase in revenue. As
every one knows, the connection between
investments is OF the closest
Credit situation.
with reference to current loans in
Canada. your Directors have felt I'M
PEELED for many months past. in the
Banks and the country's best inter-
ests. to follow the policy found essen
tial in every other country and keep
within bounds our advances to mer-
chants and manufacturers. This policy
is in accordance with the views Of the
Dominion Government. and hes been
followed more or less closely by all
Canadian banks.
Suffering From Exchange Rate.
Canada is stiIl suffering from the
sings and arrows of outras eous fortune
In the premium on New York funds,
which continues an ever-present factor
in our banking and commercial activi-
ties.
when this condition will disappear
one cannot venture 70 predict, certainly
not while the trade balances run so
heavily against Canada. Undoubtedly.
relief would come were we TO borrow
abroad in large volume by way of pub
lie loans. but that would be merely q
palliative. not a remedy. In addition to
this the conversion rate of sterling pre-
cludes loans in London, while In the
United States interest rates are penal
izing. The advantage gained in bring
ing capital from New York Ia the pre-
loss in providing interest thereon.
What is wanted is rigid economies
In the purchase OF non-essentials abroad,
with an increase In our own exports.
1T would then be only question OF
time when investment capital would
1 pour into this country of opportunities.
4 and the full value of the Canadian
/ dollar be restored.
| strong Faith in Future.
/ TN CHANGING through the published
reports of our annual meetings of the
past hundred years and more, one can
not but be struck by the recurrent
warnings regarding the commercial,
financial and economic outlook sounded
by our predecessors In Office.
Equally impressive Is the undeviat-
ingly sustained iaith expressed in Can
ada's future. and in her ability to win
safely through these periods OF infia-
ton and depression which every coun-
try must meet and undergo from time
to time. particularly every young couh-
try. That faith is stronger to-day than
ever before
81 might add that. In my opinion. we
have never faced banking and bust
ness situation requiring more delicate
handling. "A advertisement