The New York herald., 1922-01-20


tered in the addresses submitted by Sir
Herbert Holt, the President; Edison l.. Pease,
the Vice-Presdent and Managing Director,
and c. E. Neill, the General Manager.
Owing to the exceptional business con-
ditions which prevailed during the course of
the year and the problems which confront the
country at the present time, both Sir Herbert
and Mr.. Fease dealt in very thorough man
ner with the entire Canadian situation. The
addresses were followed with the closest at-
tention and there was noticeable throughout
the remarks degree of confidence which was
regarded as very gratifying by the many
shareholders present.
Provided for All Debts
Sir Herbert, before passing on to his survey
of the general situation, referred to the Banks
position saying: Il first desire to emphasize
the General Managers statement that all bad
and doubtful debts have been fully provided
for. Usually the profits of the year are ample
to provide for all bad and doubtful debts.
Should they not be sufficient, we have a con-
tingent fund, independent of the surplus fund.
accumulated during prosperous years, to fall
back upon. have further to say that the
Managing Director, the General Manager and
Executive Officers of the Bank are officials of
long experience and proved ability, and that
the affairs of the Bank receive the unremitting
attention of myself and your Directors. l
have no hesitation in stating that, in my opin-
ion, the organization and system Of super
vision in this Bank are unexcelled."
Sir Herbert took very hopeful view of the
outlook in Canada, at the same time empha-
sizing the Importance Of economy, both in
public and private life. Dealing with the gen
eral situation, Sir Herbert said:
Canada, after accepting every obligation
arising out of the conflict, is stronger materi-
ally than before the War. We have our debt
and our railway and shipping problems, all of
which will tax the wisdom of our statesmen,
but on the other side of the scale we must place
the growth of towns and cities. industrial cx-
pansion, the increase in savings, and the fact
that most of our bonds are held in the Do
minion. Compared with conditions in Eu-
rope, we arc fortunate indeed
No Fear of Future
I'm conclusion. wish to say that the scope
and char acter of the existing depression in world
trade forbid us to hope for an early or easy re-
turn to prosperity Yet do not think that we
in Canada need feel any great apprehension as
to the future. The unprecedented decline in
prices, which was the worst feature OF the last
year and half can hardly be repeated. trust
that the period Immediately before us will be
one of sautary economy, both in public and
private life, the best preparation for renewed
prosperity"
Discussing the general phases of the situa-
ton, Sir Herbert said in part:
The year 1927 will long be remembered as
a period of drastic deflation and liquidation
throughout the whole world, the aftermath of
the War This deflation was under way when
we last met While it is not yet ended, each
month brings us a nearer approach to normal
The heavy decline in the price of commodities
and check in public buying found many of our
manufacturers and merchants in the posses
sion Of large unstable stocks purchased at
boom prices. Obviously the transition to
more normal values was attended by much
loss. The fact, however, that there were one
thousand fewer failures in Canada in 1921
than in 1915 may be attributed to the abnor
NAL profits accumulated during the War.
The fall in prices necessarily greatly cur
tailed the volume of credit and is largely re-
sponsible for the contraction in the aggregate
Of the balance sheet totals Of the banks.
Fall in Wheat Prices
There has been heavy decline in the price
of wheat, Canada's chief staple and mainstay.
The cash returns to the farmers for the last
crop will be much less than that of the preced-
ing year. although the crop itself was larger
one As a result our Western farmers have
Jared badly, and have been unable to liquldate
their obligations satisfactorily. Their reduced
purchasing power must have its effect on gen
cral business. The remedy lies in a drastic
scaling down Of the present costs of produc-
ton and distribution. In these costs. wages
of labor play great part. The price of labor
is still higher in Canada than it is in the
United States.
Economy in management and operation is
one of the great needs of the present time. II
prices Of commodities are not to rise to any
extent, but arc as many think, to experience
a slow decline over period of years, profits
can only be maintained by increased economy
and efficiency in management.
These remarks on economy have special
force in their application to our governments
federal. provincial and municipal. Many
governments and municipalities arc tempted
by the facility in disposing of their securities
during a cheap money period, such as they
arc entering upon in he United States. TO
engage in undertakings which are justified
neither by their population nor their financial
nosition Thus there il a heavy drain or the