Report

<r

Annual Report

Of the Canadian Club

RA

JUL 23 1924

Berlin, Ontario

1913

1914

Annual Report

Of the Canadian Club

Berlin, Ontario

1913 " 1914

Digitized by the Internet Archive

in 2007 with funding from

Microsoft Corporation

http://www.archive.org/details/1913waterlooclub00canauoft

OFFICERS AND EXECUTIVE COMMITTEE
1913-191-4

President

1st Vice-President
2nd Vice-President
Secretary-
Treasurer
Literary Correspondent

H. J. BowmaD

J. C. Haight

Robert Smytb

H. Craig

E W. Clement

E. Pugsley

EXECUTIVE COMMITTEE.

W. J. Motz, E. W. Clement, Dr. J..F. Honsberger, Thos. Pierce,
M. S. HaHman, F. TTaitht, C. Dolph, (*. M. Sherk.

SPEAKERS' COMMITTEE.
J. C. Haight, Dr. Honsfcerger, Mr Pierce, Mr. Fanning.

TABLE COMMITTEE.
G. Sherk. E. W. Clement, E. Pugsley, II. J. Bowman.

RECEPTI ON COMMITTEE.
Messrs. R. Smyth, Hallman, F. Haight, Motz, and Dolph.

PRINTING COMMITTEE.
Messrs. Bowman, Hanning, Craig, J. C. Haight, L. Norman.

ANNUAL MEETING

The S3vrnth annual meeting of the Canadian Cluh of Waterloo County
was held on Feh. 19, 1914, in the City Hall, Berlin. President H. J.
Bowman in the chair.

The minules of the last annuel n eeting were read and adopted.

A large number of new members were then received .

The following report of the Nominating Committee was then present-
ed, and, on motion of Mr. H. W. Ds own and Mr. R. Smyth, adopted —

President, S. J. Williams; First Vice-President, F. Haight; Second
Vice-President, Thts. Hepburn Secretary, D. S. Bowiby; Treasurer, E.
W. Clement; Literary Corresp ndent, E. Pugsley.

EXECUTIVE COMMITTEE.

H. M. Cook, Thos. Pearce. W. J. Motz, Ceo. Sherk, M. S. Halln an,
•I. A. Harper, L. E. Weaver.

Moved and seconded that the reports of the Treasurer and Secretary
be received at some future meet.ng. Carried.

J. B. Weaver and H. Johnston were apuointed auditors.

The usual grant of $25 was given the Secretary.

The publishing of an annual report was left to the new Executive.

Meeting then adjourned. *

At a subsequent meet ng of the Executive the following officers and
committees were appointed for thevear 1914-1915.

President -_.-___ Frank Haight

1st Vice-President - _ Thos. Hepburn, B. A.

2nd Vice-President - Thos. Pearce

Secretary - - - - - - D. S. Bowiby

Treasurer - - - - E. W. Clement

Literary Corresp. - f. Pugsley

Executive Committee-^H. M. Cook, W. H. Williams, W. J. Motz, Geo.
Sherk, M. S. Hallman, J. A. Harper, L. E. Weaver.
Auditors— H. W. Brown, J. B. Weaver.

(Chairman) Speakers Committee— Dr. Honsberger, Thos. Hepburn. E.
Pugsley, L. E. Weaver.

Table Committee— H. M. Cook, I A. Harper, W. J. Motz, L. E.
Weaver.

Reception Committee.— M. S. Hallman, F. Haight, Dr. Honsberger, E.
Pugsley, H. J. Bowman.

Printing .Committee— E. Pugsley, J. A. Harper,. D. S. Bowiby, Tbo*.
Pearce, Geo. Sherk„ W. H. Williams.

TREASURER'S STATEMENT

YEAR 1913-14

Receipts.

Balance carried forward $36.10

Members fees 390.00

Tickets— Dinners (8) „ 260.50

Disbursements.

Grant to Secretary Hodgins $25.00

Paid Caterers 314.50

Paid Rent A. F. & A. M 44.00

Paid Association Canadian Clubs Fees, 1912, 1913, and

1914 12.00

Paid Moyer Press 69.75

Paid Speaker's expenses 35.28

Paid exchange on drafts ., 9.45

Paid Miscellaneous, expenses of Secretary and Treasurer 24.13
To cash in Bank 152.49

$686.60 $686.60
OUTSTANDING CHEQUES.

Bricker & Sons
McCarty, M. O.

Zuber

Moyer

Cash in Bank $239.67

Less outstanding '. 87.18

$2.00

3.28

74.50

V.40

$87.18

$152.49
Secretary & Treasurer's Miscellaneous disbursements.

Postage , $8.00

Envelopes and Receipt book 1.10

Telegraph account , 31

H. Craig, postage 90

Paid Livery, cartage, etc. (Bricker, Dr. Campbell, Lock-
hart, Pugsley) 13.82

$24.13

SECRETARY'S ANNUAL REPORT

To the President and Members of the Canadian Club of Waterloo
County.

I have pleasure in submitting the following report for the year ending
February 19th, 1914.

New members added during year, 33.
Members on mailing list, 277.

The following are the dates on which meetings were held during this
year, the namas of the speakers, their subjects and the attendance at these
meetings.

1913.
Feb. 20. Dr. Scott, "Scotland Past and Present." Attendance 43.

Mar. 14. Dr. A. Thompson, "The Yukon, its Climate and Resources."
Attendance 50.

Apr. 2. Rev. Principal Gordon, "A Summer Trip to Australia." At-
tendance 70.

Apr. 16. Professor A. P. Coleman, 'Rocky Mountain Trails." Attend-
ance 50. '

Nov. 13. Hon. W. H. Hearst, "Northern Ontario." Attendance 73.

Dec. 12. Major A. T. Hunter, "Canadian Defence League." Attendance 41.
1914.

Jan. 9. Professor D. D. Skelton, "The Canadian Taxpayer's Bill." At-
tendance 63.

Jan. 23. Controller J. O. McCarthy ,">-o:ial Problem's." Attendance 81.

Feb. 13. Sir Edmund Walker, "The History and Main Features of Cana-
dian Banking." Attendance 130.

No of addresses, 9. Average attendance 60.

All of which is respectfully submitted.

D. S. BOWLBY,
Secretarv Canadian Club.
Berlin, March 20th, 1914.

Addresses

ADDRESSES

SCOTLAND, PAST AND PRESENT.

Rev. M. Scott, D. D., Berlin, was the speaker at the Annual Meeting,
held Feb. 20th, 1913.

In introducing the subject Dr. Scott declared himself a Scotch Cana-
dian, and complimented the members of the Club on their appearance, de-
claring that he had not seen such a fine looking company of men since he
left Scotland.

Scotland is a young country that believes in itself, and the people are
always good, some being good for something, and the others good for
nothing.

By the coming of the Romans in 55 B. C, who by the way did not
conquer the Scots, the people learned how to build roads and bridges.

The mission of England by the Normans, greatly influenced the Scots
too, since the Saxon came into the border counties, and ever after there
were the Celts or Highlanders, and the Saxons or Lowlanders"; and the
intermarriage of these ^roducea the typical Scot of to-day.

The beauties of the scenery, the rugged hills, the lovely river valleys,
the wild tempestuous ocean about the islands, were described in a man-
ner and a feeling that showed that Dr. Scott is still devotedly attached
to his mother land.

Edinburgh is the most interesting and wonderful of Scotland's cities,
containing as it does so many reminders of her past history, as well as
the halls of learning.

Glasgow is remarkable for at least two things. She is the second
largest city in the British Empire, and the absence of graft makes it pos-
sible for her to own her own utilities, such as street railway, lighting
plant, etc., and not only to own them, but to run them in such a way
that her system was the envy of many a western citv.

The sterling honesty of the Scotch was also well shown by the cus-
tom of selling wool; where the merchant bought thousands of dollars
worth of wool without seeing it, but knowing that first class wool would
be delivered as well as full weight. A sharp contrast to the practice of
some people in Canada.

The Scotch had given us many proverbs, such as: "The idle brain is
the devil's workshop." r'A man's a man for a' that," etc. That they are
a humorous people was well illustrated by the speaker himself, as well as
by references to instances of real wit, such as, when the boy was caught
fishing in a reserve, he declared without the least hesitation that he was
not fishing, but only "'drooning a wurm."

Two great evils were mentioned. The drinking habit, and the holder
of large estates who lived apart from his holdings. The former had done
great injury to the land, but much better things are in sight. The latter
is still a great drawback to the people, while the fact, that permission
to make necessary municipal improvements must be obtained from the
parliament in England was a great deterrent in the bettering of conditio
ns. The Scotch desire and are entitled to Home Rule.

Education was also dealt with, and the fact that the people of Scot-
land are the best educated people in the world was brought to the atten-
tion of the members. Even the small country schools do a great work and
one was mentioned that had sent out 134 who became M. A.'s.

In concluding Dr. Scott referred to Canada's vast size, and her bound-

8 The Canadian Club

less resources, and expressed the conviction that the good qualities of
the inhabitants of the little land in the North Sea were needed to make
<"anada a great and successful nation.

Mr. F. Haight of Waterloo and Mr. C. Dolph of Preston moved and
seconded a vote of thanks to the speaker for his most instructive, elo-
quent and interesting address.

MAR. 14, 1914.— "CLIMATE AND RESOURCES OF THE YUKON
COUNTRY." Dr. A Thompson, M. P.

Dr. Thompson's address was increased in interest by the aid of a
map and a series of excellent stereoptican views of the Yukon, which
more realistically brought to the audience a conception of that rich por-
tion of Canada

The Yukon was an empire in itself, said Dr. Thompson. In was in 1896
when the discovery of gold in the Klondike was made, which made the
territory known to the world. A notable migration followed, which
the speaker graphically described. The discovery of gold was the parti-
cular event which attracted the people to that land. The men were in
the prime of life. The life required men of brawn and muscle, in fact
the speaker thought that Napoleon could never have marshalled an army
o: men of such physical fitness.

Dealing with climatic conditions, the speaker sent a chill through his
audience when he said it was cold,— that when it gets real cold the mer-
cury dropped 50 to 65 below zero and sometimes 75. There was how-
ever a very light snowfall and rainfall. Average fall of snow is two
feet. There were but two seasons in the Yukon,— winter and summer.
In the last week of April wild flow7ers begin to appear and in a fortnight
the season changes from winter to, summer. There is no frost in the
ground in June and the first half of July. It comes in the first week in
August. Early in September real fall weather sets in and in the mid-
dle of the month winter commences; in October fur clothing is worn.

The speaker dealt extensively with the product of the land, wild flow-
ers of a magnificent variety such as grew in the Yukon. It too was a hunt-
er's paradise. Moose, cariboo and mountain sheep abounded in large
numbers. The moose provided a useful food with beef costing 50 and 60
cents a pound. This animal's average weight was 1,700 pounds. Ducks,
geese and grouse provided choice meat.

Vegetables are growm in large quantities, the rich loam producing
the finest celery and cauliflower. Tons of berries, particularly the
blueberries, are picked in a year.

The speaker's impression wras that the time would come when the
agricultural resources would support a vast population. When the western
provinces are fully populated, he said, the people wTill flow into the
Yukon.

Horse raising promised to be a great industry, for the reason that
horses were able to winter on the plains.

''But the great product of our land is gold," said the speaker. It wag
discovered in August of 1896. Since then the territory had yielded $170,-
000,000 in gold, or 340 tons, and it had only been scratched. From 150
to 400 tons of copper were mined daily. There are also silver and
iron mines and immense coal fields within the confines of the Yukon.
The timbers of the Yukon are the pine and Mack spruce. A spruce 24
"inches in diameter is a fairly big tree.

Addresses

"Law and order are maintained in the Yukon and women are as safe
on our streets as they are in Berlin," he assured his audience. He
spoke highly of the work of the North West Mounted Police in this
connection. During the early days of the. Yukon, there had been twelve
killings amd in each case the murderer paid the penalty for the crime.

The territory is governed by a Commissioner who is advised by a
Council of ten. It was a representative Government without being re-
sponsible. The Federal Government controlled the large revenues of the
Yukon.

He told of Dawson City, his home, which once had a population of
20,000 and which now has 3,000. The homes were chiefly dog cabins, but
very comfortable. The telephone and telegraph are in operation there,
which bring to Dawson City the news from the world. The only feature
about the place that the speaker regretted was its isolation. Dawson
City was 1,500 miles from either Vancouver or Seattle. The stereoptican
views showed Dawson in its primitive days and its development to-day.
Pictures of the mountain range, the Yukon river, the inhabitants, their
homes, the mines, products, made an interesting study.

APR. 2ND, 1913— "A TRIP TO AUSTRALIA."
By Principal Gordon of Kingston.

In selecting as his theme the description of a recent trip taken to
Australia and as the result of this tour he was firmly of the conviction
that the overseas Dominions of the British Empire need to become more
intimately acquainted with each other. He stated that the people of
Australia were better acquainted with Canada than the Canadians were
with the Antipodes.

The speaker, in proceeding with his trip, referred to the trip across the
Dominion to British Columbia and advised all his hearers who have not
travelled from Berlin to the Pacific Coast to save their money or sell
some of their property in order to make the trip. "You cannot realize
what it is to be a Canadian," he said, "until you have crossed the
Dominion."

Dr. Gordon took one of the famous C. P. R. steamers and travelled in
luxuriant comfort to Honolulu, Hawaiian Islands, a distance of 2,300
miles from Vancouver. He described the beauty of the city and island and
lef erred to the wonderful transformation that had taken place during the
last hundred years and stated that it was a strong argument in favor of
Christian missionary efforts.

After travelling 2,600 miles the Fiji Islands were reached and a brief
stay was made at this interesting point. He stated that he travelled
about the Islands in an automobile, going from village to village, and
that he experienced a peculiar feeling when he remembered that only a
few years ago cannibalism reigned among the natives.

Aulkland, New Zealand, was the next point visited, and the picture-
sque features of these islands were described in an interesting manner.
He digressed briefly to inform his hearers that if they desired to take
a complete rest a trip to Australia would serve the purpose. The ocean
voyage, he said, was delightful, the only rough passage being between
New Zealand and Australia.

Reaching the Antipodes Dr. Gordon stated that Australia is a contin-
ent in itself. He described its growth since the establishment of the con-
vict settlements by Great Britain, and that the growth of the

10 The Canadian Club

country had been steady and encouraging. He intimated that he found
the Australian people looked upon Cenada as a smaller brother looks upon
an elder brother, and that the universal desire is that the best of re-
lations should exist. He spoke of the gold and coal mining industry ,
and stated that the wool industry is doing more for that country than
the development of either of the former resources. He spoke of tne gov-
ernment of the country, where the Laoor party is in power. He found,
however, that the range of vision of the leaders of the Labor partv is
small and very little is done for the development of the country as a
whole.

Comparing the cities of Australia and Canada he said he found that
almost all the cities had large zoological gardens and magnificent parks.
The bookstores were superior to anything he has seen in this country and
the newspapers are also better. More holidays are provided and Saturday
afternoon is a general holiday. In the matter of morality, he said, the
people of Canada cannot throw siones at Australia. Notwithstanding,
Australia has not the broad hopes and inheritance of the Canadian people.
The conflict between labor and capital in that country he was hopeful
would bring about a better understanding betweem the two classes.

In concluding the most interesting address the speaker stated that tha
two impressions gained during the trip were the far-nung sweep of the
British Empire, and everywhere he found the flag stands for justice and
liberty for all classes, and the other was that the great Pacific Ocean
must be "the centre of the great International issues of the nations and
that it will be the field for the vast competition if not conflict of the
nations of the earth, in which Canada was bound to take a prominent
part.

APR. 25, 19l3.-"TRAILIXG THE ROCKIES."
Prof. Coleman, of Toronto.

The members and friends of the Canadian Club of Waterloo County
enjoyed a splendid treat on Friday evening, when Prof. A. P. Coleman,
Ph. I)., of Toronto University, gave an interesting and instructive de-
scription of his trip along the various trails through the Rocky Moun-
tains. The Library Hall was filled and the address was listened to with
undivided attention, while the excellent series of views added to the
interest of Prof. Coleman's discouise.

Prof. Coleman has made several eventful trips through the Rockies,
some of which have been made previous to the railways passing
through. Some of the trials which he and his party made have been
taken by the C.P.R. and recently by the G.T.P. The views gave his lis-
teners a vivid idea of the beautiful sights that are to be seen by the
travellers through the mountains on the Canadian Pacific and on the
Grand Trunk Pacific in the near future. Prof. Coleman alluded to the
fact that after the G.T.R. is completed to the coast travellers should
make the trip via the C.P.R. going and returning by the G. T. P.

The speaker described the beauties of the forests at the foot of the
mountains and displayed views of tha trees, flowers and plants, animais
which the traveller comes in contact with while making trails through the
mountains. He stated that they frequentlv saw large grizzly bears but
they were harmless when they saw that the travellers were, leaving them
alone.

He described his experiences while passing through the high mountain

Addresses 1 1

trails from 8,000 to 10,000 feet above trie levei where the peaks are
covered with snow in the middle of summer. The discovery of the Port-
rous Lake by the party and the beauties surrounding it were referred
to and resufted in changing the "boundary line between British Col-
umbia and Alberta. Prof. Coleman spoke very highly of the kind treat
ment received at the hands of the Indians, who assisted the party in
making trails through the mountainous regions.

NOV. 28, 1913.— "NORTHERN ONTARIO."
■ Hon. W. H. Hearst.

It was an eloquent, illuminating and patriotic address which was de-
livered by the honored guest of the evening and the large and representa-
tive crowd of members gave him a most attentive and appreciative hear-
ing.

Referring to Northern Ontario he stated that it was his desire to show
the importance of that portion of the province not only to Ontario but
to the entire Dominion. There is an area above the great lakes of 267.867
square miles, not including the section recently added to the Province
and known as Patricia which has an area of 150,400 square miles, making
a total area of 418,262 square miles. This section of the Province is sec-
ond to Quebec and British Columbia ;n area and three times as large as
Great Britain. Only ten per cent, of this vast area has thus far been
alienated.

In Ontario, he said, there are 140,000,000 acres of land, only 13,000,000
acres of which are under cultivation. But notwithstanding old Ontario
provides 37 per cent, of the field crops of the entire Dominion. Ontario
grows $26,000,000 more wheat than the much-boasted prairie provinces.
This gives a slight idea of the possibilities of this banner province when all
the lands are under cultivation. There are 175,000 square miles of
land lying between the Quebec boundary line and Patricia, or 112,320,-
U00 acres. Too often, Mr. Hearst said, people travelling to the West
in the Pullman cars judge of the country from what they see from the
windows, forgetting that it is possible to* go 1,000 miles further north
and still be in Ontario.

The Minister spoke of the diversified nature of the resources, and
quoted figures to show the development of the mineral wealth of New
Ontario. Minerals to the extent of $11,532,000 were mined in 1904, while
last year they amounted to $48,000,000. This was one of the revenue-
producing resources for the province. Ontario produces 50 per cent, of
the metallic resources of the Dominion. The development of the silver
min?s in Cobalt and the gold min3S in Porcupine were also vividly de-
scribed.

Mr. Hearst referred to the work' of conservation which is being done by
the Department. It is estimated that there are between $350,000,000 and
$400,000,000 worth of pulp and spruce still left untouched. Every town-
ship is carefully inspected before it is let out for inhabitation. Large
areas of bush lands are reserved in various district. There was a great
difference, he said, between conservation and waste. The Department
endeavors to prevent waste caused bv trees being blown to the ground by
fierce gales similar to that of two weeks ago. A considerable amount'of
artificial forestry is also in progress.

The establishing of pulp and pape'" mills in various portions of New
Ontario is also one of the nrans to prevent waste, and at the same time

12 The Canadian Club

is encouraging settlements in what will be future towns and cities. Mr.
Hearst referred in an enthusiastic manner to the water power resources
of the north country which, it has heen estimated, are capable of devel-
oping 2,000,000 horse power. He spoke of Mr. D. B. Detweiler's ef-
forts along with his associates in the development of water powers in
Manitoulin Island, and characterized Mr. Detweiler as the pioneer water
power man of that section of the Province. These water powers, he said,
mean that Northern Ontario is bound to be the manufacturing centre of
the Dominion. Electricity will form an important factor and prove a boon
to new settlers.

The Minister stated that during the year the Department had expended
$1,000,000 in opening new roads and constructing drains. He also referred
to the construction of the various transcontinental railways through
Northern Ontario which will greatlv assist in the settlement of the coun-
try. In concluding his admirable address Mr. Hearst eloquently described
the prominent part the settlement of the north country will take in bring-
ing the East and the West closer together and in closing the gap which
at present exists. He urged the men and women of Old Ontario to take a
keen interest in the development of the Province and study the resources
of Ontario.

DEC. 12, 1913.— "THE CANADIAN DEFENCE LEAGUE."
Major A. T. Hunter.

After announcing his subject, Major Hunter said that among the hostile
factions with which the Canada Defence League had to contend were the
extreme pacifist, the extreme labor agitator, the extreme militarist and
general indifference. It was only representing the standard of human lib-
erty to say that every man should be taught to defend his own fireside, but
it required more study to realize inat every nation is entitled to the collec-
tive power of citizens to maintain her national integrity. Some nations
had .earned this lesson. Rome had learned it then forgot it. "England,"'
he said, "is still carrying the school bag with the pathetic hook of blun-
dering exercises.

The Young Men.

Twenty and thirty years ago Canada's national game, lacrosse, was
played by every young man. To-day the young man's form of exercise was
to sit on the bleachers at the bali park, getting his entire physical exer-
tion by waving his arms and shouting "bonehead, bonehead." Was that
the idle generation Canada • wanted to bring up? The churches and Y.M.C.
A.'s* in the smaller places reached about 10 per cent, of the young men,
and in the large cities about 5 per cent. "What is to be done to reach
the 90 and 95 per cent, of the voung men who are rolling cigarettes, where
their grandfathers rolled trees?-' asked the speaker. His answer was to
urge upon the Government the want of rifle range accommodation. For a
self controlling, strenuous and engrossiug pastime, rifle practice had few
equals and it embodied the simplest form of defence. Not alone was
proficiency in rifle shooting required. Team plav was needed when it came
to defence. A hundred shots well handled could strike a stinging blow
but 100 wreak ones would be as fussy and useless as a centipede is on a
piece of. fly paper, every additional leg adding to its confusion, said the
speaker and his vein of humor raised a round of laughter.

Addresses 13

Civilians, will say, he continued. ' you have a militia, are you not sat-
isfied? If everything were all right ho would not have come to give his
talk. If war broke out to-morrow, every town, city and community in
Ontario, he said, would have their numbers besieging the militia officers
for arms. He went on to describe a woeful lack of discipline and the inad-
equacy of the uniforms of the Canadian militia. If the militia was to be
called out to-morrow tnere would be only shirt, overalls and straw hats
with which to clothe the men. Civilians were to blame for this condition
of affairs because they allowed and countenanced the work of the extreme
militarist, the most dangerous of all enemies of defence. This enemv at-
tacked from within while the other enemies attacked from without. The
pacifist would prevent a grant being made for the militia by the Govern-
ment, but what was this when compared to the woeful waste in the
militia because of the extreme militarist. "The Government spends
money, but it is wasted and there is no adequate defence."

The reviews and useless manoeuveis came in for criticism by Major
Hunter. If men are devoted to the movement, they should have been so
ten years ago, and the country would not have had any such foolishness
any longer.

The Minister of Militia contended that every man who gives his service
for defence should have decent quarters, and in this the speaker heartily
agreed and asked that before civilians undertook to criticize the armory
and military defence they study the subject, to learn the sm,a*ll words be-
fore reading the big ones. He asked that people devote just a little of
their time to the study of military defence. He would not even venture to
say from what quarter the next war might come. Canada was a country
sitting on a pile of great assets. Canada was an insolent country for
even the American was a chaster braggard than the Canadian. "Do
you think we will have no trouble after advertising our rich resources
throughout the world and stealing the citizens from the European world?
And how are we going to meet these troubles? He cfosed with an appeal
to all citizens to give more time to the study of these matters in order
to gain a fuller realization of their import.

JAN. 9, 1914.-"THE CANADIAN TAXPAYER'S BILL."
Prof. Skelton, of Kingston.

Coming to his subject, Prof. Skelton stated that the question of taxa-
tion in Canada was not yet so live a one as in the United States and in
the United Kingdom. He gave statistics of the comparative taxes paid
by the average Canadian and the average resident of the United Kingdom.
He said: "For every dollar paid into the treasury by the Englishman in
1900 as taxes, he paid $1.35 in 1902, and $1.45 in 1912. This is an in-
crease of forty-five per cent, in fiftee i vears and is no small amount.
Neither has it been painlessly extracted; this question has been brought
before the people during the last four years by Lloyd George, has caused
two general elections, a political revolution.

"Let us compare these taxes with those paid by the average Canadian.
For every dollar paid in taxes in 1907, there was paid $1.41 in 1902 and
$2.55 in 1912. In other words the increase in fifteen years has been three
times as great as in Great Britain, and in ten years ten times as great.
Yet we have not ten times the complaint here as in the United Kingdom.
Little attention has been paid to the question of taxation here.

"It appears to me that the main reason is to be found in the fact that

14 The Canadian Club

the Englishman pays his taxes in bulk and knows what tne ngures show.
In Canada we do not know what we are paying. We do not realize what
the tax on woollen goods, subsidies to railroads, salaries of the senators,
and so forth are. We pay the taxes, for example, to the hardwareman,
grocer, saloonkeeper and the like.

"Coming back to the increase in taxation, we find that it did not stop
in 1912. The difference is the amounts which each one in Canada paid in
1912 and 1913 is three times as great as the increase in England in the
past ten years. The fact is that we started on a lower level. To simplify
the question of compulsory taxes let us limit ourselves and consider the
following statistics: The average Englishman paid $16.20 in national
taxes, $8.10 in local, or $124 for a family of five persons. The average
Canadian paid $14.00 as provincial taxes, $11.18 local or $134 for each
familv. In considering these statistics we must also enquire about the
private wealth of the countrv: In England the incoroe of an average citi-
zen has increased by $800 or more a vear during the fifteen years. The
increased taxes weigh less heavily on him to-day. Have our increases
gone up 255 per cent? Is the man who received $1,000 a year in 1897
receiving $2,500 to-day? I think not. The average increase has been
fifty per cent, in fifteen vears, no mere.

"What are we going to do if we are to be certain of getting value for
our money? I believe that a Uniform System and Publicity of Accounts is
desirable. For example, if a city pays $45,000 annually as costs of
collecting garbage we must as*: Is \alue being received for the money?

Continuing the speaker advocated a more rigid inspection of financial
expenditures by the Treasury Board of the Dominion as is the case in
England. He proposed a Central Treasury Board consisting of one or two
members of the Cabinet with one or two assistants whose duties would be
to consider all proposed expenditures bv /all departments of the govern-
ment. He also referred to the fact that Premier Borden had had Sir
George Merney, for many years a mpmber of the Finance Department and
Treasury Board in England, investigate the system of finance of the Domi-
nion Government. He had found a laxity of methods in our Dominion es-
timates.

New sources of supply of taxes in the future would have to be found
unless the heavy taxation was to be placed on different shoulders. In the
local field a remedy had been suggested in the proposal of a special tax on
land. There were many single tax advocates. He said: "Personally I can
see nothing in this proposal.

"There is also a special phase of this question in exemption of im-
provements. There is. it is true, a kernal of truth in the land-tax agita-
tion. On the other hand not many of us will grudge the increment in the
land values of the western farmers' lands. The giving of free homesteads
has worked well for the country. The increment in the values is the wag-
es of the farmer.

Regarding the increment in urban centres, it must be admitted, there is
special ground for special taxes on the gains realized. Is exemption on
improvements the best solution? Personally, I doubt whether it is for it
throws the taxation on all lands and disregards the owner's ability to
pay.

Continuing, Prof. Skelton also advocated a tax on the business of cor-
porations, particularly transportation. A federal income tax was also
not far distant. The advantage of such a tax was that it would enable us
to know what we were paying. The question, 'Why and Where?' would

Addresses 15

be brought home to us. The time would surely come when we would
have to put the burden on the broadest shoulders. There was no place in
the world where the rich man paid so littfc as in Canada. The indirect
tax hits the poor man heavier relatively than the rich; there should be a
graduation at the other end. The inheritance tax levied by the province
was only a trifle .comparatively speaking. There would be some objection
to an inheritance tax but if the interests of the country demanded it these
would subside. We must try to avert the conditions caused by the ex-
tremes of great wealth and great poverty in the European countries. If
the flood of Socialism is going to be stopped there must be a social re-
form. A further argument against the claim that such a tax would
prove impracticable -was the fact that other countries had found no insur-
mountable obstacles, for example, the United States. We also were
quick to learn from the United States. He found some objection against
Canadian Historians because in their writings they did run iaive into ac-
count the influence of the United States on Canada, which was quite ap-
parent in many spheres of the national life. We paid no attention to
systems that had been iu vogue in England for fifty or more years, but
immediately took notice when introduced in the United States, for ex-
ample the parcel post. Concluding the speaker reminded his hearers of
the desirability of paying more heed to the taxation system. If we did
this we would not be paying as much as now.

JAN. 23, 1914.— "SOCIAL PROBLEMS."
Controller J. O. McCarthy.

If he was discussing the problem of municipal government he
would offer four suggestions: The same Municipal Act should not aPi>lv
to cities of half a million and to townships, more powers should be
given over matters purely domestic, members should not be elected an-
nually, municipal government is a business — a special business. The
banker and the barber of December are not qualified in January to pass
opinions upon water filtration, sewage disposal, the management of a
street railway, etc. The errors and weaknesses of municipal government,
are not to be cured by commission government. It was an extreme
measure in the States to get rid of inefficiency, the result of political
control and corruption. The Canadian or British citizen will not give
up his power to govern.

No city on, this continent has played fair with the boyi; give him back
his playground— not a park of beds or flowers, but an acre free from re-
strictions, where he can play; an acre that he can reach every day—
and not weekly — with a lunch in his pocket. Schools' to educate. and juve
nile courts to protect and save should be secondary to proper and
ample playgrounds. In my own city a juvenile court, with its probation
system, cared last year for nearly two thousand delinquent children,
ninety-eight per cent, of whom made good under the system. I would that
you could hear the story of "nowhere to play." I may tell you that
that daily story of "nowhere to play" had some connection with the
fact that we invested a million dollars last year in parks and play-
grounds. Cut off twenty-five per cent, of vour expenditure on public schools
nnd apply it to playgrounds and you will give to the world better man-
hood and womanhood.

16 The Canadian Club

Improving Quality of the People.

How far is the state justified in taking action to improve the quality
of its people? Should the mentally, physically and morally unfit be al-
lowed to multiply their kind? These questions are engaging the attention
of many governments. Since the state must provide the asylums, the
homes, the prisons and the hospitals that these fast multiplying wrecks
will fill it does seem that the state has some right of action.

For twenty years the responsibility of caring for the feeble-minded has
been foot-balled back and forth by the province and the municipalities.
It has been estimated that during these years it has cost the municipa-
lities five times more to take care of the resultant want, vice and crime
of this class than it would have cost to have kept them in custodial care.

The feeble-minded problem in Ontario demands:—

1. Custodial training schools where these persons will be happier and
society safer.

2. Prohibition of marriage of such persons.

3. That the issuing of marriage licenses should be a subject of muni-
cipal supervision and not a matter of political patronage amounting too
often, as at present, to a farce.

The mental defective, the chronic criminal and the sexual pervert
should not be allowed to propogate their kind, and if the custodial care
cannot be given, the next kindest way is that the surgeon should be em-
ployed.

Everv city has its vice problem and is anxious to improve the situation-
but how? and what is wise? Toleration, licensing, inspection and segre-
gation has in turn been suggested by well intended people as well as by
men who either have not studied the problem or had leased their moral
conscience. /

"The more regulation the more prostitution," is an absolute fact,
proven over and over again. In dealing with this problem, I with hesita-
tion make three suggestions:

Some Valuable Suggestions.

1. Venerable diseases should be reported to a City's Health Depart-
ment, the same as smallpox, typhoid, scarlet fever, diphtheria and other
communicable diseases

2. Educate— let every man, woman and child know the cause of,
and the fearful physical consequences both to the present and future gen-
eration of syphilis.

3. Seek to improve the bad social conditions that breed vice; try to
see that ignorance, bad housing, lax policing, sweat shop wages, etc., are
responsible for more vice than people's vicious tendencies.

"Ninety per cent, of the unfortunates have gone wrong jiot on account
of their inward desires but on account of surrounding conditions. There-
fore let us turn to the lack of housing.

"There is no large city without a housing problem. There are a few
simple and provable truths that every civic legislator should be seized of,
viz:

(a) There is a direct relation between housing conditions and national
character.

(b) It is not so much that vicious, criminal, unhealthy, poor people
move into poor houses, but that slums breed vice, crime, ill-health and
pauperism.

Addresses 17

(c) Slums are dear houses to live in.

(d). Slum, houses are not usually owned by poor people, but by rich
men and wealthy corporations.

"It is a fact that the demand for comfortable houses exceeds the sup-
ply. Rentals are beyond the workingman, clerk and mechanic. The manu-
facturer and employer are affected. Congestion results.

"The municipal government that does not concern itself with the
housing of the people, the quality of its people, the air they breathe, the
food they eat, the amusements that entertain, with the growth of the
child army in a clean moral atmosphere, is either retrogressional in its
character or criminally indifferent and negligent.

"The future manhood, future womanhood, the human efficiency of
your people, depends upon your civic government and are purchasable
quantities purchasable by a wise expenditure of money to prevent those
conditions that stifle and dwarf these ideals, purchasable by education,
by moral courage and common honesty of government. A day of time
and a dollar spent now in prevention of bad social conditions will accom-
plish more than ten days and ten do liars will accomplish in cure ten years
hence. Lloyd George spoke truly when he said that it wouKl be a greater
national disgrace for the Union Jack to float over slum houses and infer-
ior types of humanity than for it to suffer defeat on the field of battle.

"I am much concerned that the term 'Canadian' shall be the world
over a passport of good health and good breeding, a certificate of true
manhood and a standard of human efficiency. May the Union Jack ever
float over 'Canadians' of this type in your city and in mine."

FEB. 14, 1914.— "THE HISTORY AND MAIN FEATURES OF
CANADIAN BANKING."
Sir Edmund Walker.

During the last ten or more years of active growth in Canada count-
less fortunes have been made, which would certainly have been impossible
but for our banking system, the public generally have been served better
than in most countries of the world— much better than in the United
States— and yet a similar hostility towards banks seems to be developing
in Canada to that existing with our neighbors.

It has seemed to me that consideration of the subject might best be
reached by setting out the main features of the banking system, and by
tracing the reasons, historical or otherwise, for these features. The
main features that occur to me are as follows:

The Decennial Revision of the Bank Act.

The Branch System.

The Double Liability of Shareholders.

The limitation as to ownership of Real Estate.

The Prohibition to lend on Real Estate.

The Basis of Loans and Credits.

The Service to Depositors.

The Movement of money and the Clearing Houses.

The Note Issue.

Decennial Revision.

The practice under which the charters of all Canadian banks expire to-
gether and are not renewed for longer periods than ten years, before

18 The Canadian Club

which renewal a revision of the terms of the Act takes place so that
changes may be made in order to improve its working, came about
through a mere accident, and was for many years regarded as a tempor-
ary condition.

Double Liability.

One of the features in Canadian banking, which is always criticized at
the moment of a bank failure, is what is known as the Double Liability
of shareholders; the liability in the event of failure to pay assessments
sufficient, after exhausting the ordinary assets, to meet all liabilities,
provided such calls in the aggregate do not exceed ths original amount
of capital paid in. This was iirst introduced in banking legislation in
Xova Scotia in 1832, following the recommendation of the Committee
for Trade of His Majesty's Privy Council. It was immediately there
after introduced into legislation in Upper Canada, New Brunswick, and
in the United States.

Limitation as to Ownership of Real Estate.

In the iirst charter granted m Lower Canada the bank is empowered
to hold real estate to the value of £1,000 ($4,000) yearly and no more.
In the iirst charter granted in Upper Canada, immediately thereafter, the
bank could lawfully hold only such real estate as was necessary for the
transaction of its business, but with no limit as to its annual value — a
more reasonable provision.

Prohibition to Lend on Real Estate.

In the same first charter granted /in Lower Canada we already find the
regulation against making loans on the security of real estate, as fol-
lows:—

"To take and hold mortgages and hypotheques on real property for
debts contracted to it in the ordinary course of its dealings, but on no
account to lend on land, mortgage, or hypotheque nor to purchase them
on any pretext except as here permitted."

This early restriction has continued in our banking legislation, the
only changes made being in order to more effectually carry out its plain
intention. The same feature has been presented in banking legislation in
the United States since 179ll

Branch Banking.

In Canada in the draft charter on which the actual charters first grant-
ed wrere based, the section permitting branches is drawn almost exactly
from the charter of the first bank of the United States, as indeed are the
other main features of these early charters. We have, therefore, always
had branch banking.

Note Issues.

The most important feature in our Bank Act is the power to issue
notes for circulation as money.

As early as 1685 in French Canada fiat currency— the famous written
card money—appeared and met the usual bankruptcy, It was followed by

Addresses 19

the notes of the American Colonies, by written card money again in
Quebec, by the printed Ordinances of Bigot, and by the currency of the
Continental Congress.

1. To avoid discount at the moment of the suspension of a bank,
either because of delay in the payment of the note issue by the liquida-
tor, or of doubt as to ultimate pay ment, each bank is obliged to keep
in the hands of the Government a deposit equal to five per cent, on its
average circulation, the average being taken from the maximum circula-
tion of each bank in each month of the year. This is called the Bank
Circulation Redemption Fund, and should any liqufdator fail to redeem
the notes of a failed bank, resource may be had to the entire fund if
necessary.

2. To avoid discount for geographical reasons, each bank is obliged to
arrange for the redemption of its notes in certain named commercial
centres throughout the Dominion.

In concluding he spoke eloquently of the future of Canada. We have,
he said, been busy developing our means of transportation. The time
has now arrived to think less of transportation and more of production.
One of the greatest things of moiern times was the power of credit.
In Canada the banks represented that power. He made a strong plea
for co-operation and good feeling between the banks and the people. He
laid much emphasis on not only lending our efforts to buiid up the
country commercially, but also the necessity of developing a high type
of citizen, and devoting attention to the intellectual and artistic.