The New York herald., 1922-01-20
Foreign Trade Down

In total values, due III great part to falling
prices. While we have received a smaller
return from our exports, we have paid less
for our imports, and the measure of progress
is a trade balance in our favor OF $55, ,000,0 900.
We are advancing in the right direction. but
greater effort is imperative. We must bring
our favorable balance to point equal to the
interest on our foreign indebtedness. Until
we accomplish this our borrowings abroad
will continue. BY the development of our
coal areas, by improved methods of industrial
production above all, by wider utilization
OF our water powers must we labor to restrict
our imports. For the expansion of our ex-
ports, the speedy settlement of our farm
lands is the great need, and immigration
should be stimulated. Yet we should take
warning by the experience of our neighbors
and admit only those who are desirable.
Let us follow the motto of A ustralia: You
are welcome if you are the man we want
Until recently the world outlook was one
of gloom and Encouragement, but the Con-
ference at Washington has given rise to a
growing hope. Not only has it struck at the
root of past trouble and future danger, by the
limitation of armaments but it has shown
how speedily and satisfactorily international
problems can be settled where there is desire
and good will. With the disarmament ques-
ton and the Far Eastern questions success
fully ended, it is to be hoped that an inter-
national economic conference will follow"
Cuban Situation
Edison l.. Pease, the Vice-President and
Managing Director, in his address dealt more
particularly with the affairs Of the Bank, and
the principal developments within the Do
minion. Mr. Pease also referred to the
situation in Cuba and South America, saying
in this regard
While Cuba suffered through the collapse
in the price of sugar, have no misgivings re-
gardng her future prosperity. She was pros
porous before the War when sugar ruled about
2 cents pound. She has demonstrated in
the past her ability to produce sugar at
cheaper rate than any other country. She
enjoys the natural advantage of soil and
climate and possesses the most modern sugar
mill installation in the world. A great ad-
vantage is her proximity to the American
market The country has neither currency
problems nor railway deficits to retard her
recuperation and only small war debt to the
United States of $4,000, 900, OH which she
is paying interest.
"In keeping doors open at all times, and under
circumstances that compelled the Government of
Cuba to declare moratorium which ultimately
suited in the suspension Of three local joint stock and
several private banks we have justified the confidence
of our Cuban customers and added to Canadas pres
tigc throughout the Islands of the Caribbean.
The years. business OF branches in South
America, which were not established until after the
boom has been highly satisfactory and free from loss.
The quality OF the business we accept is exceptionally
high class, consisting in great part OF the purchase
OF bills of exchange representing produce exports
under Bankers Letters of Credit.
A Trying Year
Discussing the general Canadian situation, Mr..
Peasc said in part:
"Thc year Just ended has proved a very trying one
for the commercial community and for the banks.
Never before have we been confronted at home and
Id Ill
verse conditions The rapid and recession in
the prices of all commodities and the lack Of purchasing
power involved heavy losses in inventories and great
shrinksge Of domestic and international trade.
The price recession has caused decline in the
productivity of all manufacturing industries and
consequent fall in profits, much so that taxation
has become serious burden, acccntuating our need
for larger population among whom it could be shared
'In this brief period Of exceptional stress the banks
played most helpful part How important may be
judged from the fact that business Generalization
which occurred in every other country, averted in
Canada. This may be regarded Of the greatest
achievements OF the Canadian banks.
I'm circumstances unfavorabe, | am sure we
have fulfilled the highest expectations OF our share
holders in showing profits nearly equal to those Of the
previous year; by maintaining dividend and bonus
and by meeting you with strength unimpsired.
Farmers Debated
I'm the case Of farmers the readustment OF values
is complete. They have been compelled to accept
lower net return for their products than before the
War The reduction in manufactured goods has been
cent below the high price reached in lss0, still 6S
per cent. above 1914 levels. In the end production
costs and selling prices must down TO the buying
power Of the farmers. The this is effected the
sooner business will revive.
The movement Of the Western wheat crop has
been rapid Between September lst and December
3Oth us, 900 bushels delivered at country
points representing increase the previous year
Of s400O,o0O bushels while shipments cast from Port
Arthur and Fort William amounted TO Il7,000.0O0
bushels, which compared with shipments in 1870 Of
sS OO0,0O
"A blow to expert trade the imposition six
months ago Of the Fordncy Emergency Tariff. Since
the act became effective the total value Of the agrcu
tursl products shipped from Canada TO the United
States has shrunk from soS 900 the correspond
ing period Of 1890 to ,9sS000 To sell supplies
are dependent upon financially demoralzed
Europe and seeking new markets in the East.
In spite OF these unavorable factors. show favor
able balance trade amounting s55 00O instead
Of the unfavorabc balance Of 900 which accrued
during the twelve months ending November, 1890
Our excess Of imports from the United States has been
reduced from s3Ss 600 900 in 1920 TO $3.50 0000 900 in
1891"
Tn concluding Mr. Peasc dealt briefly with the general
outlook when he saidi