Calgary Herald from Calgary, Alberta, Canada • 18

1 of 18 THE CALGARY HERALD, THURSDAY, DECEMBER 7, 1939 in Strong Position to Help Allies Win the War Bank of Montreal Head Urges Sound Policies To Avoid Economic Reaction Huntly Drummond Suggests That Business Beware of Vicious Spiral of Prices and Wage Rates of Last War -Says That Government Controls Should Be Regarded as Temporary Expedients ADVOCATES "PAY AS YOU GO" POLICY AS FAR AS PRACTICABLE Canada's strong financial and economic position in relation self-undertaken task of helping the Empire and her Allies to war, was emphasized with convincing figures Huntly R. in his presidential address at the annual meeting of the Montreal. He also indicated the part which the Bank of is playing, and is prepared to play, in this effort when he to the increase in assets to $1,025,000,000, which is the highest in the Bank's history. At the same time he suggested that fair should rule in war-time transactions in order to avoid a spiral such as that in which the cost of living and wages each other in the last war. In recognizing the necessity for a of government control as a part of the country's war effort, he that these controls be regarded as in nature of a expedient to meet an extraordinary situation and that abolished at the earliest possible moment.

In opening, Mr. Drummond stated that his remarks on this occasion must be considered in the light of the conditions brought about by the war, and emphasized that "our first aim must be to assist to the limit of our abilities in the winning of the war." He followed with a reference to the great loss which the bank sustained in July last by the death of "our late president," Sir Charles Gordon. "Through twelve eventful years, many of them fraught with new and perplexing problems." he continued, "'Sir Charles exercised his guiding influence in the affairs of this Institution with wisdom and courage and he left the Bank stronger and safer than at any time in Its history. We in the Bank respected him for his ability; we loved him for himself: and his example remains as an Inspiration to us all. During my tenure of the office he left vacant, It will be my endeavour, assured of the support of a loyal 1 and devoted staff, to continue those policies which he SO carefully followed and to maintain the high traditions of the Bank of Mon- treal." NEW RECORD FOR ASSETS "The annual statement," said Mr.

Drummond. "reflects our continued position. The total assets of strong the Bank. $1,025,000,000, are the largest In its history. This is due in part to transactions of a special nature which were on the books of the Bank at the close of our fiscal year, one being participation in the $200,000,000 Dominion Government loan recently taken up by the chartered banks.

"The dividend of the Bank, at the rate now paid for several years past, has been earned with a fair margin notwithstanding that, owing to limited demand for the commercial employment of moneys, we have been compelled to employ an Increasingly large amount of our assets in the form of investments. These investments are in prime securities and the fact that the greater portion matures at early dates places us in the best possible position to meet any contingency that may arise and to supply without disturbance the requirements of commercial borrowers which now show every, indication of being on the increase. It has always been the pollcy of the Bank to make adequate provision for doubtful accounts, and I can say with full confidence that the affairs of your Bank were never in a stronger position." Dealing with the changes in recent the president pointed out that years, In 1928, when Sir Charles Gordon first presided at an annual meeting of the Bank, loans totalled $540,000,000. He continued: "In 1938 they were 000,000. In the same period the investments of the Bank had risen from $110,000,000 to $440,000,000.

This change from a preponderance of loans to a preponderance of investments coincides with the growth of spending by governments which has been facilitated by cheap money policies universally adopted by all central governments. As a result of this tendency, the earnings of banks became so reduced that the banks had to reduce dividends and later were forced to cut in half the Interest paid to depositors on savIngs. Thus, while governments have been enabled to Incur heavier debts at lower Interest cost, it is largely at the expense of depesitors and investors. "Sometimes we hear criticism of banking profits, no doubt due to the size of our institutions, but you can see from the statement presented to you that on average total assets through our fiscal year of $907,000,000, the earnings of the Bank were $3,462,000. In other words, on each $100 of assets the earnings were but 38 cents." BUSINESS IN CANADA Reviewing business conditions in Canada, Mr.

Drummond said that up to the end of August activity was following a similar course to, but somewhat In advance of, the course of bustness in 1938. He went on: "After early hesitation, an encouraging advance appeared in the spring, followed by widening Improvement during the summer months. As a general Indication of the degree of Improvement over last year, our, for the first eight months of the year exceeded the corresponding 1938 figures by the substantial margin of 10 per cent: and Industrial employment was approachIng the post-depression peak levels reached in 1937. True, problems connected with public finance, aggravated by a long period of relief expenditure, were perplexing to an unexampled degree, but notwithstanding this, I am convinced that had the situation In Europe continued to justify the hopes aroused at Munich, recovery In Canada would have proceeded continuously. With the outbreak of war, we were, of course, Immediately confronted with a completely altered situation.

"The circumstances which led to the outbreak of war, to Canada's Inevitable participations call for 10 comment. for they are present In everybody's mind. But it is relevant to a review of our business to point out that war clouds had been gathering 50 long and so obviously that we were not unprepared for the shock Farmers Hear Champion Irrigation Cost Will Be Less Than $34 Per Acre be their dictator and after the enemy had been defeated the dictatorship was at once abolished and he returned to his Referring to the war efforts of Great Britain and France, which are centred not only on production but also upon the maintenance of exports, Mr. Drummond observed that is generally felt that the first months of the war have been satisfactory for the Allies. Britain's war services, her financial machinery, and the unity of her peoples at home and abroad are all felt to be vastly superior to what they were in 1914, and the country looks forward with determination, calmness and confidence.

"Particularly heartening to the people of Britain and France, and not leas so to Canadians, have been the widespread indications of the deep sympathy of the majority of the people of the United States with the Allied cause. As elsewhere, business in the United States has been continually under the shadow of the European situation, but despite the recurrent crises a forward movement occurred during the summer, with marked acabroad, celeration in certain lines following the outbreak of war. Thereupon there were sharp advances in prices of almost all commodities, but business leaders have shown themselves keenly alive to the dangers of speculative commitments and rapid advances in the price level and, following the Inttial upswing, more stabilizing Influences have prevailed." GOVERNMENT FINANCE Dealing with government finance, the speaker referred to the increase in Dominion and Provincial debts from $4,500,000,000 to $7,000,000,000 in the past ten years, with the prospect of a further Increase in the Dominion feld as the result of war expenditures. Facing this situation, he considered that policy as far as practicable should be to pay as we go, and as far as we can to repatriate Canadian indebtedness abroad." In this connection he said that the government had already taken the first step to this latter desirable object by arranging to repay a sterling loan out of funds advanced in London by the British Government to whom in turn the Canadian Government had advanced an equivaient amount of Canadian dollars for British expenditure here in war supplies. Further In regard to taxation, he said: "Great Britain has drastically increased taxes to provide for war needs and, with normal income tax becoming effective in May next of on all incomes over £285, everyone there is sharing the burden.

It is high time that Canada should follow this example. True, we have added a surtax of to our income tax, but the vast bulk of the income of Canadians is still only lightly taxed. An extension of the income tax, even at a much lower rate than that In Great Britain, would produce many millions in Canada and be a barrier against the inflation inherent in a policy of borrowing. "But it is in reducing expenditure in non-essentials that our Government can give a lead to Canadians. Sectional needs should no longer be given first place, nor should our railway problem, Canada's Wheat and Other Resources Available for Prosecution of the War HUNTLY R.

DRUMMOND to her win the Drummond Bank of Montreal referred figure prices vicious pursued measure urged temporary they be when it came. There was no repetition of the financial crisis of 1914. There was even a certain business stimulus in the prospect of increased demand for our products, magnified somewhat by the relatively low level of forward commitments which existed in many sections of business owing to previous uncertainty. Referring to Canada's favorable position in relation to supplying wheat and other products for the prosecution of the war, Mr. Drummond said: "Of outstanding importance at this juncture is the fact that Canada enters upon the war period with one of the best all -round crops in the history of the country.

This applies to practically every part of the Dominion but more particularly to the Prairie Provinces, where, in contrast to recent years, the wheat crop is unusually large and unusually high quality. Thus, Canada has very large supplies of the food products which the Allied and neutral nations will need and the buying power of the agricultural community from their sale will help the general business of the country. In addition to this, with the impact of war conditions, we have many industries which will benefit directly from orders for war supplies, and we have the prospectively important development of Canada as the aviation training centre of the British Empire. "It will thus be seen that on the material side Canada may expect to be better qualified than most countries to meet the inevitable consequences of war, and an added consideration in this respect is the foresight and sagacity of England in 1 providing for the continued supply of many commodities at normal "It will thus be seen that on the material side Canada may expect to be better qualified than most countries to meet the inevitable consequences of war, and an added consideration in this respect Is the foresight and sagacity of England in providing for the continued supply of many commodities at normal prices. "If Canada's role in the war is to be largely as a source of supply to Great Britain, then we should see to it that there shall be no excessive profits.

Our aim should be a fair price for wheat and other farm products and a fair price for manufactures in which the Government will have the full support of business and labour, to prevent a vicious spiral such as that in which the cost of living and wage rates endlessly pursued each other in the last war. "By keeping costs down as much as 1s possible, we will keep domestic trade moving and, after the war, this policy will mitigate the painful process of deflating prices and wages which is the Inevitable sequence of an undue rise." GOVERNMENT CONTROLS The great measure of control which the Canadian Government has assumed for the better stabilizing of supply and prices and, therefore, for the more efficient prosecution of the war was commented upon. "These measures." he said, "Include provision for regulation of prices and distribution, for the regulation of imports and exports, and, through a Foreign Exchange Control Board, for a form of control by which withdrawal of capital from the Dominion is forbidden. Business institutions. including our banks, have co-operated to the fullest extent in these measures.

It is only meet, however, to go on record here to the effect that these controls are a restricting influence in business and that forbidding the withdrawal of capital from Canada undoubtedly has discouraged the interest in this country of citizens of other lands who, having invested their money in Canada, now find themselves unable to withdraw it. "'In any case, it is important that all the control regulations should be regarded as a temporary expedient to meet an extraordinary situation, and that they should be abolished at the earliest possible, moment. Otherwise, we shall find ourselves saddled with A self-perpetuating autocratic burenucracy contrary to the true basis, of democracy for which we are now fighting. The Romans had the right Idea in this respect-In. a time of war they called Cincinnatus from the plough to Banks Well Prepared for Demands of War Business Jackson Dodds Explains Bank of Montreal's Balance Sheet Showing Available Resources at Highest Point in History COMMERCIAL LOANS STEADILY INCREASING In 1 referring to the strong liquid position of the Bank, as revealed in the 122nd annual statement, with cash and liquid securities totalling $742,600,000 and representing 78.29 per cent of all liabilities to the public, Jackson Dodds, reporting for himself and G.

W. Spinney as joint general managers, indicated that this ratio was much higher than desired. He emphasized that this condition was not due to any reluctance on the part of the Bank to undertake the risk of business loans, but reflect the markets for many of Canada's principal products which had in prevented anything like a full recovery of business activity or of prices, thus limiting the inducements to borrow and requiring that the Bank make other use its funds. And he added that the possibility of seeking a way out of this situation by relaxing the Bank's standard of safety in lending money was, of course, precluded by the Bank's obligations to depositors. LIQUID ASSETS AT HIGH RATIO "Quick Assets, Including cash and securities.

total $742,600,000, representing 78.29% of all labilities to the public. The maintenance of a strong position is a tradition of the Bank of Montreal and is ever borne in mind by Its General Managers. For several years past, however, the ratio of quick assets to liabilities to the public has been much higher than desired. "Cash holdings and balances with the Bank of Canada amount to 100,000, representing 11.62% of all our labilities to the public in Canada. "Investments, not exceeding market value, total $517,600,000 and show an increase of $76,700,000, compared with last year.

In this total are included Dominion and Provincial Government obligations amounting to $135.800,000, of which $221,900,000 will mature within two years. Of our Government sea curities with a maturity date later than two years, $191,000,000 (par value) will fall due before October 31st, 1944. "Current Loans and Discounts in Canada amount to $201,300,000, an increase of $22,600,000, following an increase of $27,800,000 reported last year. "Current Loans and Discounts elsewhere than in Canada are $17,500,000, an increase of $7,200,000. "Bank Premises at $13,900,000 remain at last year's figure.

In connection with the Notes of the Bank in circulation, amounting to 700,000, as compared with $22,500,000 a year ago, Mr. Dodds pointed out that, under the terms of the Bank Act, the present maximum circulation limit is $28,000,000, and that for the year 1940 it would be reduced to $27,000,000. Deposits of the Dominion Government at $75,100,000 showed on of 100,000, and Provincial Government posits at $18.800,000. an increase of $8,800,000. Deposits by the public amounted to $801,700,000, an increase of $75,900,000.

"For the first time in the history of the Bank," he observed, "the items on our balance sheet this year amount to over a thousand million dollars. These figures are a measure of our responsibility to the public. The problems which this responsibility entails are so widely misunderstood that it is perhaps permissible to say a few words on the subject." LOANS AND INVESTMENTS Mentioning the frequently heard claim that the banks are reluctant to risk their money in loans to business, of business activity or of commodity prices has therefore limited the inducement to borrow, and has confronted us with the problem of finding other use for our funds. The possibility of seekIng a way out of this situation by relaxing our standard of in lending money is of course precluded by our obligations to depositors. "While the demand for commercial credit has thus remained at a relatively low level, the potential supply of credit has simultaneously been increased as a result of the policy of monetary expansion which the Bank of Canada has pursued since its ment in 1935.

We have consequently had no practical alternative to enlarging our holdings of securities. In this way, of course, our operations, with those of the other banks, have been the means of making the central bank's policy ef- fective. DIFFICULT PROBLEMS "We have thus constantly co-operated with the Bank of Canada in carrying out its general policy, as also in less significant details of routine and administrative procedure. But it must be admitted that the process of adding to our investments in the circumstances just described involves difficult problems of management. "It is not sufficient that our Investments should be of unquestionably high quality.

They must as far as possible be of such a character that they can be converted into cash without loss, whether to pay our depositors or to enable us to extend additional credit to business. Provision must also be made against possible reduction in the aggregate value of the total portfolio owing to changes in market conditions, for any such reduction constitutes a loss which must be made good out of our profits. have met these requirements principally by maintaining a substantial proportion of our investments in the short-term category. Over of our holdings of Dominion and Provincial securities will mature within two years. This course necessarily reduces the average earning power of our assets.

As the supply of sultable securities is limited, the demand for them has raised their prices and lowered their yield to the point where the rate of return is very low as regards short-term issues and although higher as regards longer term bonds. it affords little margin from which to provide against possible future depreciation. "The conditions just outlined may be modified as a result of the war. We JACKSON DODDS G. W.

SPINNEY the general manager referred to the assumption that they preferred the supposedly easier course of 1 holding securities. "'Nothing could be further from the truth," he declared. "Our deposit liabilities do indeed require us always to hold a due proportion of high grade securities as supplementary reserve against them. But beyond such requirements we would prefer in all circumstances to use our lendable funds in sound advances to foster Industry, trade and commerce. Our organization, with Its nation-wide system of branches, has been developed with this purpose particularly in view.

In consideration both of service to the country and of profitable business to ourselves, we naturally wish to see our facilities fulfilling their purpose to the fullest possible extent. our readiness to lend to creditworthy borrowers does not affect their disposition to apply for loans, for the demand for commercial loans depends upon the state of trade and the prospects of profitable use of borrowed money, The fact that the condition of the markets tor mung eL Canada's principal products Has In recent years prevented anything like a full recovery may anticipate that the increasing production of war requirements in this country, together with the secondary effects of this activity, will stimulate a more active demand for commercial credit. In view of the condition which our balance sheet discloses it will be seen well prepared for any such development." CONDITIONS IN CANADA Reviewing industrial and business conditions in Canada, Mr. Dodds said: 1939 wheat crop in the Prairie Provinces is estimated at 452 million bushels: in 1938 It was 326 million bushels. The larger crop is one factor in raising gross operating revenues of the two railways, which, to the end of October, were some $19 million higher than In 1938.

The pace of economic activity on the prairie has quickened, and it is hoped that the improvement may continue. "In the elapsed months of the current calendar year, production of copper in Canada amounted to about 400 million pounds, compared with 380 million pounds in 1938. Lead production was 283 million pounds against 319 million pounds In 1938, when large stocks were Exchange Control Measures Do Not Reflect Weakness in Economic Position The far-reaching extension of government control over the country's economic activities the establishment of the Foreign Exchange Control Board being a case in point- was commented upon by Mr. Dodds as follows: "The purpose of these measures is to mobilize Canada's external resources in such a way that they can be applied as effectively as possible to the prosecution of the war. It should be emphasized that their essential character is therefore entirely different from that of.

the exchange control measures which certain countries in recent co to adopt by reason of heavy deficits in their international accounts, and which were to be regarded in such cases as evidence wud suess. These measures do not reflect any weakness in Canada's economic position, for the balance of payments has been heavily in our favor for several years and has permitted a substantial repatriation of our external debt. On the contrary, they represent recognition of the fact that ability to buy abroad in time of war is an economic weapon of great power, which must to the fullest possible extent be placed at the disposal of the Government. Similar measures have been put into force by other belligerent accumulated abroad. In the first nine months of 1939 zine production amounted to 301 million pounds, against.

285 million pounds in the same period of 1938, Production of nickel has substantially exceeded the 1938 volume and slightly ahead of the banner er year 1937. Gold production to 31st August totalled 3,381,000 ounces, compared 3,056,000 ounces during the same period last year. "The immediate outlook for the pulp and paper industry, is brighter. Consumption in the United States has been rising and exports from the Baltic countries to the United States have been subjected to uncertainty of delivery and higher transportation costs arising from war-time conditions. Consequently pulp and paper prices have been firm.

"A decline In commodity prices marked the of 1938. During the early 1939, prices failed course, to recover and showed even greater weakness in the summer months. However, a sharp rise was experienced in September, coincident with the outbreak of war and the marking down of the Canadian dollar In New York. Since then the higher level of wholesale prices has been more than maintained. The physical volume of business was sistently higher throughout the elapsed months of 1939 than in the comparable period of 1938, while during both August and September of 1939 the index was higher than in any parallel months in recent years.

"Retail trade was expanding prior to the sudden rush of buying that developed in September following the declaration of war, The June total was the highest for any comparable period since 1931. "Foreign trade for the first nine months of 1939 showed a surplus of exports of $128,000,000, which is an improvement of $32,000,000 over the corresponding months of 1938." DEVELOPMENTS IN U.S.A. Dealing with conditions in the United States, the general manager referred to the effort to step into the place hitherto occupied by the belligerents, but under much conditions. "Both the channels character of world trade different, have changed he observed, continuing: "The opportunities, particularly in respect to Latin markets, are greatly enlarged, but it must be remembered that the foreign trade of many of these countries has of late been conducted to a considerable extent under barter agreements and that their normal exports to Europe consist principally of commodities with which the United States is already plentifully supplied. Trade cannot for any length of time remain a one-way affair and temporary credits must sooner or later be liquidated by cargoes or default ensues.

"As to the course of business generally prior to the commencement of hostilities, It may be said that the consumers' goods industries, stimulated by a high rate of Government expenditure -not in itself a reassuring barometer but a cause for anxiety have operated at a satisfactory level, while the construction industry, sustained by Government appropriations and aids to private residential building, has made substantial progress. "The continued flight of capital from Europe, involving gold shipments on an unprecedented scale, has left the United States in a position of holding about two-thirds of the present world gold stock-not a healthy CONDITIONS IN NEWFOUNDLAND Mr. Dodds referred briefly to conditions in Newfoundland, where operations of the paper mills had been well maintained and mines had been working at capacity, but where the codfish Industry had suffered adverse conditions, largely because exchange difficulties and the effects of the civil war in Spain. He added that "the Commission of Government is making every effort to assist fishermen in varlous ways, and, in addition, increase agricultural development by land settlement. Plans are also under consideration with a view to increasing the exports of fresh fish, and while all these projects take time to bring to fruition, it can fairly be said that progress is being made.

"From year to year, since the Commission of Government took charge of affairs in Newfoundland in February, 1934, the Mother Country has assisted by making to meet the grants in Country's annual deficits and so farthat is to say, to the 30th of June last, the end of the Government's financial year-has paid to Newfoundland 380,000 in this connection." READY FOR WAR EFFORT Looking to the future Mr. Dodds concluded: "Canada has progressed far along her destined way since the outbreak of war in 1914. In supplies of wheat, minerals and manufactured goods her contribution toward the combined effort on the side of right in this war will far exceed what she was able to offer in the last; and there is abundant evidence in every province of the Dominion that Canada's contribution in men will be ample and of the type that in the last war brought ever-lasting glory to this country." Veteran Trainman Dies at Creston (By Our Own Correspondent) Creston, Dec. 7 Robert Walmsley, 82, died in Creston hospital early yesterday. He was a land valuator with the Hudson's Bay Company at Deloraine, Manitoba, and later entered the private banking business at Minnedosa, Manitoba, early in the nineties.

Later he was conductor on the and Northwestern Railway Portage La Prairie, Manitoba, the Columbia Western between Nelson and Midway, and the C.P.R. trains, hauling ore from Phoenix to the smelter at Greenwood. His final railway experience was with the C.P.R. on the Lardeau-Duncan run. He came to Creston in 1910, and has been in the real estate business here since.

GAS CENTENARY Auchinleck, Scotland (CP) Just 100 years ago, William Murdoch, born in this Ayrshire village, first lighted a dwellinghis own with gas. (By Our Own Correspondent) Farmers of the Champion district question of irrigation for the district, the Big Lake. This move has been completed by the Dominion between the river and the lake. H. Griffin, reeve of Harmony' M.D., presided, speakers ineluding Ben Russell, senior engineer of the P.F.R.A.; Phil Baker, president of the South Alberta Conservation Council; representatives of the Lethbridge Northern, and others who have had administrative and practical experience in irrigation practice.

There was a good representation of interested farmers present. After explanations by the speakers on the terms under which the P.F.R.A. operates; the experience of farmers on irrigated land; the course which the proposed project might follow, and the desirability of allying with S.A. Water Conservation Council, the farmers were asked to make their decision on whether they wished to go further with the project. They were advised to make a canvass of the area within the scheme to learn the mind of potential users.

The next step would be to organize and join the conservation council to work with it. One of the anticipated difficulties may be with the owners of large acreage, satisfied with things as they are, and against assuming the expense of maintenance. Other farmers might object to the increased work involved, because irrigated land implies mixed farming. It was suggested that one method of impressing the federal government, which furnishes the capital outlay, would be through readiness to assist with horses or machinery. It was pointed out also that an early survey in 1921 included about 50,000 acres as coming under the scheme, and the estimated cost at that time was $34 an acre.

Costs would now be somewhat lower because of modern machinery and other factors. The committee responsible for calling the meeting was named as a standing committee to go farther into the scheme, with survey maps as a guide to the amount of irrigable land, the recommended channel of the main ditch, the potential patrons, and so on. At the Penhold Red Cross meeting on Friday, receipts of the Red Cross drive were turned in to the secretary, amounting to $112.50. Out of this $90 was forwarded to headquarters, the balance to be used for material, to carry on the work. Mrs.

S. Wardle is in charge of the supplies and the wool for knitting. High River, Dec. met recently to consider the from the Highwood river to followed on a survey which has just government, embracing the area lying Low Prices Irk Turkey Farmers (By Our Own Correspondent) Coronation, Dec. 7.

Local turkey producers are finding the price schedule a hard pill to swallow this season. Seventeenpound top grade birds are netting just four cents a bird less than 16- pound birds, while 18-pound turkeys are selling for only eight cents per bird above the 16-pound level. Turkeys over 16 pounds are not wanted by packing houses and are at a discount of one cent a pound. To make matters worse the fall has been ideal for fattening turkeys and as a result most birds are overweight. Top grade turkeys are selling for only 13 cents a pound this season, a drop of three cents from last year's price level.

Producers are left only a scant profit on their year's operations. Endiang Organizes Red Cross Branch (By Our Own Correspondent) Endiang, Dec. 7 An active branch of the Red Cross has been organized at Endiang with the following officers on the executive: President, Walter Smith; vice-presidents, Mrs. J. Campbell and Miss Jessie Russell; secretary, Donald Stevens; treasurer, Mrs.

A. H. Evans. Two dances have been sponsored by this branch and to date approximately $160 has been raised by membership fees, donations and proceeds from dances. Christmas Coming; Trees, Shrubs Bud (By Our Own Correspondent) Coronation, Dec.

7 Shrubs and trees in this is district are beginning to bud as a result of the continued mild weather. The temperature during the past week has ranged higher than 40, and no frost has occurred at night. People of the region, who can recall no such mild weather in previous December months, fear that the shrubs will be irreparably damaged when cold weather sets in. Trees and bushes sheltered by buildings are showing the effects of the weather more than others. In The Herald District Harry Soloski was found hanging dead in the barn on the farm of E.

B. Martin, near Youngstown recently. He is survived by a wife and two small children. Requiem mass for Henry Shermack was held yesterday at St. Francis Xavier church in Camrose.

Mr. Shermak's brother Rev. Father Smeltzer, of Tofield, said the mass. Burial was in the Roman Catholic cemetery. An inquest will be held at Cranbrook, B.C.

into the death of Howard Haney of Canalflats. Haney was critically injured on Saturday morning while hauling logs for the C.P.R. camp. He died Saturday evening. Surviving are his wife and a daughter, Beverley.

The Women's Auxiliary of St. Peter's church in Okotoks held their annual bazaar and sale of home cooking on Saturday, in the Masonic hall. The proceeds amounted to $80, which was considered very satisfactory. A meeting of the delegates from school districts located in the subdivision No. 2, Bow Valley, was recently held in the Sunny Range school, Chancellor.

There being only one nomination received, P. Rogers, Chancellor, was declared re-elected by acclamation as trustee. Olds Elks' Christmas cheer fund is receiving generous response, cording to manthe Christmas cheer committee. Many groups in the town are knitting clothes and repairing old toys to be distributed 1 to the poor. Delegates from Trochu, Olds, James River, Sundre were present at the constituency "social credit" convention held in Olds over last week end.

New officers elected zone are: President, L. Bullard, Olds; vicepresident, J. Shaw; Mrs. H. Felker.

On his last home leave before going overseas, Gunner Lewellyn Williams, of the 92nd Battery, R.C.A., stationed at Edmonton, was guest of honor at a party in the hall, at Erskine, recently. He was presented with a chime mantel clock by his friends. A few weeks ago he was married to Miss Yvonne Smith, of Rocky Mountain House. Farmers in the Raymond area are still plowing, even though it is December. Weather has been so favorable that feeders have not yet had to supply hay for their cattle.

Dan McLennan is in hospital after suffering a leg injury in a "bump" while working in the MeGillivray mine, at Coleman. His partner, Mike Korman, was also injured, but not seriously. On Monday, Joe Kuran was injured in the same level of the same mine. Sponsored by the ladies of the Royal Purple, a successful dance was held last week in Red Deer, when the men of the 92nd R.C.A., home on leave, were the guests. Proceeds amounting to $52 was donated to the Red Cross Society.

Appointment of W. H. Gray of Brooks, as police magistrate there is announced by the provincial government. He is secretary-treasurer of the town, and a former justice of the peace. The post became vacant through the resignation of J.

Cuthbert. with its cost to the country of a hundred million dollars per annum, be left COMMENDS NATIONAL SPIRIT In concluding, Mr. Drummond declared that Canadians today faced the world a more united nation than ever. In this connection he mentioned two events which to his mind were closely connected which have served to emphasize the things that unite the Canadian people. is the visit of our beloved King and Queen and the other is the spirit of broad Canadianism to which our French-speaking compatriots have given such notable expressIon.

Previous to the coming of our King and Queen, the Crown, to many of us was just a word, the true significance of which was little realized. When, however, we saw this perfectly human and charming royal couple and heard them speak to us in our own language, whether, that be English or French, about the vital things of which the Empire to which we belong Is the bulwark in a world distraught, we realized the deeper meaning of the Crown as the living symbol of our common aspirations and our common being. "With respect to that other event In which the people of the Province of Quebec have figured. Canada was the first country in the Empire to have an election in which participation in the war was the main issue. The result has been that.

our fellow-Canadians who speak the mother tongue of France have given to all the world truly remarkable testimony of the unity of the Canadian people, not only by endorsing this nation's efforts in support of the Allies but by their adherence to the principles upon which. at Confederation, the nation of which they are such an Important part was founded. "We stand a united country in our war effort. It remains for us to bring the full strength of a united Canada to the work of prosecuting the war to a successful conclusion while at the same time keeping our affairs so in hand that we may enter the readjustments of post-war conditions as free of inflation as possible, with debts at the minimum possible and with morale unimpaired. "I am confident that just RS we have entered as a unified Canada Into the fiery ordeal of war, so we shall emerge, a nation one at heart but more mature in thought and aspiration, ready to go forward as a member of the British Commonwealth of Nations to the great destiny which undoubtedly awaits this Presenting the Bank's Balance Sheet, Mr.

Dodds mentioned the increase of $64,000 in profits (to $3,462,000) after the payment of Dominion and Provincial taxes of 198,000, equal to over 41 cent of the dividend pald to shareholders: In addition the Bank's 513 branches had paid a substantial sum in munielpal taxes, Important changes in the Balance Sheet figures were mentioned las follows: Coronation's drive to raise Red Cross funds resulted in the addition of $17.00 to the fund on Sature day when a tea under the auspices of the local Red Cross Society was held in the Royal Crown hotel. Since the drive opened, three weeks ago, $560 has been raised to aid the Red Cross. Old-time district residents from Rocky Mountain House to Delburne gathered in Sylvan Lake on Saturday night at a surprise to commemorate the 25th wedding anniversary of Mr. and Mrs. H.

H. Jamieson, prominent Sylvan Lake residents and district pioneers. The couple were presented with a silver tea service. W. A.

Biss was re-elected president of the Sylvan Lake Chamber of Commerce at the annual election of officers and banquet held in the Sylvan Lake hotel, Monday night. Annual reports of the work of the organization were presented, showing' a' large program of work accomplished for the year and a satisfactory financial position. Other officers chosen were: Gordon Brown, vice president; V. N. Neeley, secretary; and P.

Duffield, treasurer. Directors: I. Sweet, F. J. Bloom and J.

A. Untinen. The United Church Ladies' Aid of Granum raised $100 at a bazaar and tea held in the 1.0.0.F. hall on Saturday. Thirty teachers gathered at the Granum school on Saturday for a meeting of locals of the Alberta Teachers' Association from Claresholm, Granum and Macleod.

The teachers' salaries and plans for future meetings were discussed. Funeral services for Mrs. Peter G. Johnston, aged 58, an early pioneer of Didsbury, were conducted on Monday from the United church at Didsbury. Surviving are her husband, her mother, five daughters Mrs.

E. Vetter, of Three Hills; Mrs. Hugh Morton, of Didsbury; Ruth, Maude, and Laura, at home- and four sons, Glen, of Cremona, and Ronald, James, and Douglas, at home. The sum of $135 was raised at the annual fall bazaar of the Ladies' Aid of Delia United church on Saturday afternoon. Ideal weather greeted the event.

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