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Full text of "The Monetary times"

BINDINa LIST JAN 1 1923 



SUBSCRIPTION RATE : $3 a year ; $1.50, six months ; $1, three months ; postpaid anywhere 

ESTABLISHED 1867 

The Monetary Times 

Trade Review and Insurance Chronicle 

OF CANADA 



-0^ 

i j^j^B 81 1922 



Index to Volume 66 

January to June, 1921 



^ lb I 

Published every Friday by The Monetary Times Printing Co. op Canada, Limited 

Head Office: Corner CHURCH and COURT STREETS. TORONTO, ONTARIO 

Telephone Main 7404, Branch Exchange connecting all Departments 
Cable Address: "Montimes, Toronto" 



Hf 






The Monetary Times 



INDEX TO VOLUME 66 

January to June, 1921 



CONTRIBUTORS AND THEIR 
CONTRIBUTIONS 

PAGE 

Allan, John A., (Recent Mineral 
Developments in Alberta), March 

18 26 

Arnold, Hugh E., (An Aspect of th» 

Exchr-nge Problem) , March, 18.. 36 
Barker, A. B., (Co-operative Mar- 
keting of Grain), March, 4 .... 18 
Barker, A. B., (Section 88 of the 

Bank Act), April, 15 22 

Barker, A. B., (Foreign Trade 

Machinery is Delicate), May, 13 IS 
Barker, A. B., (Why Bank Credits 

Are Short Tenn), May, 27 .... 22 
Barker, A. B., (New Methods in Oil 

Promotions) , June, 17 3 

Cassidy, Edwin, (American and 
Canadian Tnast Companies), 

May, 13 20 

Gates, W. B., B. A., (Should Cost of 
Imperial Navy be Shared in), 

April, 29 5 

Gates, W. G., (Turnover Tax and 
an Extended Tax on Sales). May, 

6 5 

Chichanot, E. L., (Unemployment 

Situation in Canada), March, 11 14 
Chicanot, E. L., (Immigration and 

Unemployment) , May, 20 ... . 18 
Chicanot, E. L., (American Interest 

in Canada), May, 27 18 

Clarke, J. L., (Short and Long Term 

Rural Credits), April, 22 . . . . 14 
Dower, J., (Quarter Billion Loss, 

Who's Responsible ?), May, 20 . . 32 
Drummcnd, A T.. (Dominion Con- 
trol of Water-Powers), May 27 14 
Elliot, J. Courtland, (Economic 
Developments in Western Can- 
ada), January, 21 37 

Finlayson. G. D., (Fifty Years of 
Fire Insurance in Canada) , Feb- 
ruary, 11 18 

Good, John, (New Hazards to Plate 

Glass), January, 14 33 

Howard, B. E.," (The Spirit of 
Enterprise Desei-ves Fostering) , 

Febi-uarv, 11 36 

Hunter, R. W., C. A., (Premises 

Tie up Banking Capital), May. 20 30 
Jackson, Gilbert E., (Unemploy- 
ment Insurance in Canada, Possi- 
bilities of). March, 18 5 

James, F. J., (Local Financing 
Proved Disappointment) , Febru- 
ary 4 22 

Johnston, V. Kenneth, (Advantages 

of the Gross Sales Tax), May, 6 14 
Jones, S. L., (Transatlantic Trade 

Relations), January, 21 34 

Lauriston, Victor, (Investing in 

Oil), May 20 28 

Lyell. Angus. TThe Bankruptcy Act 

in Operation), Janurr:;- 14 . . . . 2(5 
Lvoll. Angus (WTiat Labor Wants?). 
January, 21 41 



PAGE 

Lyell, .Ang-us, (Organized Farmers' 
Movement is Economic), Febru- 
ary, 18 34 

Lyall, Angus, (The vVheat Pool), ^/ 
'March, 2.5 18 

Lyell, Angus, (Alberta's Municipal 
"Hospital System), April, 1 .. .. 24 

McLeod, Alfred W., (Industrial In- 
surance), March, 25 26 

Noble, J. L., (British Columbia Fire 
Underwriters' Association) , May, 
27 d28 

Paterson, R. J. R., (Municipal Ac- 
countin£r and Municipr.l Finance), 
March, 18 18 

Pratt, H. J., (The Financing of y 

Public Utilities), April, 8 .. .. 22'' 

Reid, E. E.. (Life Insurance With- 
out Medical Examination), Feb- 
ruarv, 18 5 

Rife, Raleis-h 3., (Financial Rela- 
tions Avith tho United States), 
January 14 IS 

Smith, R. Goldwin, (Mining Produc- 
tion in 1920), January, 21 .. .. 18 

"Semner Paratus" (Bankin"- Op"or- 
tunit-'es an 1 the Aftei-math) , Feb- 
i-uarv. 18 18 

Sto»-hPnson, H. R., (Health and 
Accident Features in Life Poli- 
cies) , January, 28 5 

Tavlor, Jame<;, (Adiustment of Fire 
Tnsurancp Losses^. May, 27 . . . . 24 

Wainwris-ht, Cpcil S.,_ (Fire 
Insurance in Canada in 1920), 
February, 4 26 

PRIMARY INDUSTRY 

Alberta Farmers through with 
Gambling, May, 6 8 

Alberta, Recent Mineral Develop- 
ments in, Marcli 18 26 

Asbestos in Quebec, February, 25 . . 44 

British Columbia Fisheries — 

Mav, 13 28 

M-^y 27 36 

Coal Mining in Nova Scfitia, Janu- 
ary, 14 44 

Coal' Trade in Nova Scotia, Steel 
and. May, 20 36 

Coal Trade is Depressed, January, 
21 48 

Cobalt Ore Shipments in 1920, 
January, 21 _. . 26 

Co-operative Marketing of Grain, 
March, 4 18 

Cron Outlook, The (Editorial) . June 
17 4 

Crops, Potatoes, Roots and Fodder, 
January, 21 14 

Crops. Rpcord Value of Canadian 
Field, February, 11 14 

Farmers Hit Bv Coal Mining Situa- 
tion. April, 29 12 

Farmina: Operations may be Cui'- 
tailed, April, 15 14 

Farming Outlook in the West, 
April, 29 12 



PACE 

Farmers Through with Gambling, 
Alberta, May, 6 8 

Field Crops, Record Value of 
Canadian, February 11 14 

Fisheries in British Columbia — 

May, 13 28 

May 27 • • 36 

Flax Growing in Nova Scotia, April, 
1 28 

Forest P'ires Starting Again (Edi- 
torial), May 13 10 

Forests, Mean to Canada, What 
They, Januai-j% 28 14 

Gold and Silver Production, World's, 
April, 22 36 

Grain, Co-opevative Marketing of, / 

March, 4 18 '^ 

Land Values Increased, Average, 
March, 25 • ■ 32 

Lumbermen's Association, Canadian, 
February, 11 26 

Mineral Developments in Alberta, 
Recent, March 18 26 

Mining Production Increased in 
1920, January, 21 18 

Mineral Product'on Increased in 
1920, March, 25 22 

Miu'ng in Nova Scotia, May, 13 . . 28 

Mining Properties, Taxation of, 
February, 25 42 

Newfoundland's Industries Under- 
went Strain in 1920, February, 11 30 

Nickel Plant Affected by Metal 
Market, April 8 28 

Nob'e Faini is Big Enterprise, June, 
1/ 1 

Nova Scotia Mining, May, 13 ... . 28 

Oil, Invesfng in. May, 20 2S 

Oil Promotions, New Methods in, 
June, 17 3 

Ore Shipments in 1920, Cobalt, 
January, 21 • ■ • • "'^ 

Promotions, New Methods in Oil, 
June, 17 3 

Salmon Pack. Curtailment of British 
Columbia, May, 27 36 

Seedino- Now General in Alberta, 
April, 29 7 

Silver Production, World's, Gold 
and, April, 22 36 

Weather, A Ganble on the (Edi- 
torial), Apr ' C2 10 

Wheat Pool. The, March. 25 ... . 18 

Wheat Touches the Dollar Mark, 
(F'iitorial), April 29 10 

Wrr] 'Gro'^'.-s Establish British 
Agency, June 24 11 

Wool Growers Hopeful for Absorp- 
tion of Production, May, 20 ... . 36 
LIFE INSURANCE 

Accident Features in Life Policies, 
Health and, January, 28 5 

Actuarial Society of America Meet- 
ing, May, 20 49 

Agency Busmets, Facilitating 
(Editorial), March 11 10 

Agents, Control of Life Insurance 
(Editorial), May, 27 9 



Index 



THE MONETARY TIMES 



January 1 lo June 30, 1921 



PAGE 

Amendments to Dominion Insurance 
Act (Editorial), April 22 9 

Banks vs. Life Insurance, March, 18 32 

Companies' Power to d« Business, 
Dominion, April, 8 5 

Compensation, Proposed Increase in 
Workmen's, February, 11 ... . 5 

Dominion Insurance Act Amend- 
ments (Editorial), April, 22 . . . . 9 

Examination, Life Insurance With- 
out Medical, February, 18 ... . 5 

Health and Accident Features in 
Life Policies, January, 28 ... . .5 

Income Tax, Life Insurance and the 
(Editorial), May, 20 10 

Insurance Act Amendments, Domin- 
ion (Editorial), April, 22 9 

Insurance Companies' Position Im- 
roved (Editorial), April 5 .... 9 

Insurance Companies, The Scope of 
Editorial), January, 28 9 

Insurance in Ontario in 1920, May, 
20 14 

Insurance in 1920, Records Estab- 
lished, April, 5 5 

Life Insurance Agents. Control of 
(Editorial), May, 27 9 

Life Insurance and the Income Tax 
(Editorial), May, 20 10 

Life Insurance a Profession, 
Making: (Editarial), March, 25 10 

Life Insurance Business Conser- 
vation of (Editorial), March, 4 9 

Life Insurance Taxes in Quebec, 
January, 14 14 

Life Insurance, United States Tax 
en, June 17 12 

Life Insurance vs. Banks, March, 18 32 

Life Insurance Without Medical 
Examination, Febniary, 18 . . . . 5 

Life Policies, Health and Accident 
Features in, January, 28 5 

Life Policyholder, Reinstatement of, 
May. 6 26 

f ife Underv/riters Meet =n Winni- 
pet;', April, 8 g 

Medical Examination, Life Insur- 
ance Without, February, 18 5 

Mutual Benefit Raises Rates, 
Travellers' January, 21 34 

Ontario Insurance in 1920, May, 20 14 

Policyholder, Reinstatement of Life 
May, 6 26 

Profession. Making Life Insurance 
a (Editorial). March, 25 10 

Quebec, Life Insurance Taxes in, 
Januarv, 14 ... 14 

Soldiers Insurance, March, 18 ... . 20 

Tax on Life Insurance, United 
States, June, 17 12 

Travellers' Mutual Benefit Raises 
Rates, January, 21 34 

Underwriters Meet in Winnipeg, 
Life. Anri], 8 8 

United States Tax on Life Insur- 
ance. June. 17 12 

Winnipeo-. Life Underwriters Meet 
in. April. R 8 

Workmen's Compensation. Proposed 
Increase in, February, 11 5 

TRADE AND INDUSTRY 

Asbestos in Quebec, February, 25 44 

Board of Trade Reports — 

February, 4 18 

Februarv, 11 '..... 30 

Britisli Capital in Canadian Indus- 
t'-\-. May. 20 36 

British Cattle Embargo, The 
(Editorial), April, 1 9 

British Manufacturing in Canada 
Affected by Exchan<re, Anril, 1 .. 28 

Buildinn- Permits in 1920, February, 
1.8 ." . 26 

Buildin" Permits, November, Janu- 
ary, 14 36 



PACE 

Building Permits in December, 
February, 18 22 

Building Permits, January, March, 
18 22 

Building Permits for February, 
April, 22 24 

Building Permits in March, May ,20 22 

Building Permits in April, June, 24 11 

Business at the Coast, May, 13 . . 7 

Business Improvement in the West, 
Signs of, January 14 8 

Business, Too Much Cancellation of, 
(Editorial), Januai-y, 14 10 

Canadian Manufacturers Associ- 
ation Convention, June, 17 ... . 10 

Canadian National Export Club, 
April, 29 8 

Cattle Embargo, The British (Edit- 
orial), April, 1 9 

Cement Production in Canada, Feb- 
i-uai-y, 18 44 

Central Factories Building, Pro- 
poses, March, 4 8 

Coast, Business at the. May, 13 . . 7 

Commercial Failures in Canada in 
1820, January, 14 24 

Dominion Industrial Products, Ltd., 
February, 18 44 

English Electric Company will 
Enter Canada, March, 25 44 

Export Club, Canadian National, 
April, 29 8 

Factories Building, Proposes Cent- 
ral, March, 4 8 

Failures, A Crop of Business, April, 
^9 22 

Failures, Business. (See every 
issue). 

Failures in 1920, Analysis of, 
March, 25 38 

Failures in Canada in 1920, Com- 
mercial, Janusry 14 24 

Prilures, Speculation and (Editor- 
ial), January, 28 10 

Flour Mills on Part Time, March, 11 28 

Foreign Trade Machinery is Deli- 
cate, May, 13 ... : 18 

Forests Mean to Canada, What the, 
January, 28 14 

Great Britain Will Soon be in 
World's Markets Again, April, 29 28 

Hamilton's Industrial Growth in 
1920, February, 11 44 

Howard Smith Paper Mills, Febru- 
ary, 4 44 

Industries are Reviving, June, 17 9 

Industry, Municipalities Suffer by 
Bonujing, May 6 ". 10 

Industry, Immigration and, (Edit- 
orial), March, 25 9 

International Trade Situation in 
Canada, Mrv 27 7 

Iron and Steel, in 1920, February, 11 44 

Iron and Steel Industry, Outlook 
for is Good, February 18 44 

Manufacturers* Association Conven- 
tion, Canadian, June, 17 10 

Newfoundland's Industries Under- 
went Strain in 1920, February, 11 30 

New Railways Not Wanted (Editor- 
ial), April, 8 10 

Nickel Plant Closed, April, 8 . . . . 28 

Paper and Its Use (Editorial), 
March, 18 10 

Pap'r Price, Drop in, February, 25 44 

Pulp and Paper Developments, Jan- 
uary, 14 44 

Pulp and Paper Developments, 
January, 21 48 

Pulp and Paper Developments, 
April, 15 28 

Puln and Paper Developments, May, 
27 36 

Puln and Paper Industry in the 
West, February, 25 44 

Puln and Pan°r Industry is Troubl- 
ed, April, 22 ■ 28 



PACE 

Pulp and Paper Industry Meeting 
with Keen Competition, April, 29 28 

Pulp and Paper Industry (5utlook, 
January, 28 36 

Pulp and Paper Industry, Tracing 
the Growrth, February, 11 44 

Pulp and Paper Mill at Connaught 
Station, May, 27 36 

Pulp and Paper Prospects of the 
West, March, 4 32 

Pulp and Paper Trade Prospering, 
March, 25 44 

Pulp Mills Closed, May, 20 36 

Rail Orders Will Help Steel Indus- 
try, January, 28 36 

Railway Situation Considered in 
Parii.ament, March 25 7 

Railways Not Wanted, New, (Edit- 
orial), April, 8 . 10 

Retailers Now Taking Losses, May, 
20 5- 

Rubber's Rise and Fall (Editorial), 
April, 15 10 

Salmon Pack, Curtailment of Brit- 
ish Columbia, May, 27 36 

Shawinigan Water and Power Ship- 
ping Line, April, 15 28 

Sherbrooke and New Industries, 
March, 25 44 

Shipbuilding in British Columbia 
in 1920, Steel, January, 14 ... . 44 

Shipbuilding, Some Hope for, April, 
29 28 

Shipping, Year of Contraction in, 

March, 4 20 v^ 

Steel and Coal Trade in Nova 
Scotia, May, 20 36 

Steel in 1920, Iron and, February, 
11 .". 44 

Steel Industrv and Railway Equip- 
ment, April, 8 28 

Steel Industry Cannot Expect to 
Look to Britain, February, 4 . . 44 

Steel Industry Immediate Revival 
Not Expected, January, 21 ... . 48 

Steel Industry, Outlook is Good. 
Febniary, 18 44 

Steel Industry, Rails and the, Jan- 
uary, 28 36 

Steel Industry, The, May, 27 ... . 36 

Steel Rails May Be Needed in 
Large Quantities. January, 14 . . 44 

St°pl Shinbuilding in British Colum- 
bia in 1 920, January. 14 44 

Tanning Industry in 1920, (Editor- 
ial), January, 14 10 

Textile Companies Reduce Wages, 
January, 28 36 

Textile Conditions Improving, Feb- 
ruary, 18 44 

Textile Outlook Good, January, 14 44 

Textile Prices Lower, January, 21 48 

Toronto Industries in 1920, Febru- 
ary, 4 44 

Trade Machinery is Delicate, 
Foreign, May, 13 18 

Trade Mark, Registration of. May, 
13 26 

Trade Mark, Registration of, Mav, 
20 34 

Trade of Canada by Classes — 

Januarv, 21 22 

February, 25 22 

March, 25 24 

April, 29 22 

Mav, 20 24 

June, 24 9 

Trade cf Canada by Countries — 

February, 4 24 

March, 4 22 

Anril. S 20 

Mav, 13 44 

June, 17 12 

Trade Outlook, The, January, 28 . . 16 

Trade Relations, Transatlantic, 
January, 21 34 



January 1 to June 30, 1921 



THE MONETARY TIMES 



Index 



PAGE 
Trade Situation in Canada, Inter- 
national, May 27 7 

Transatlantic Irade Relations, Jan- 
uary, 21 Si 

Vancouver Board of Trade, March, 

25 ^ 

Victoria to Draw Tourists, May, 20 8 
West, Signs of Business Improv- 

ment in the, January, 14 8 

Wholesale Prices, Index Numbers 
of— 

January, 21 24 

February, 25 24 

March, ^5 14 

April, 29 24 

May, 27 24 

June, 24 10 

Woollens Price, Drop in, March, 4 32 
Woollmgs Company, T. S., May, 27 36 

FIRE AND MISCELLANEOUS 
INSURANCE 

Accident Features in Life Policies, 
Health and, January, 26 5 

Accident Payments, Some Sickness 
and, February, 'lt> 34 

Adjustment of Fire Insurance 
Losses, May, 21 24 

Agents' Commissions in Ontario, 
Fire, January, 21 8 

Alberta Hail Insurance Board, 
March, 18 14 

Alberta Workmen's Compensation 
Results, February 25 28 

Amendments to Dominion Insur- 
ance Act, (Editorial), April, 22 9 

Automobile Decision Case Postpon- 
ed, June, 24 9 

Automobile Insurance Next to Fire, 
April, 15 41 

Automobile Insurance Points, March 
11 d24- 

Bonded, Who Can Most Safely Be ? 
(Editorial), April, 1 10 

British Columbia Fire Agents' Con- 
ference, February, 4 24 

British Columbia Fire Underwriters' 
Association, May, 27 d28 

Caxton Insurance Company Obtains 
Licens», February 11 46 

Co-insurance and Use and Occupan- 
cy, April, 8 18 

Commissions, Fire Insurance Costs 
and (Editorial), January, 14 . . 9 

Commissions, Fire Insurance Costs 
and (Letter to the Editor), Janu- 
ary, 28 7 

Commissions, Protests Regulation 
of Insurance, January, 14 . . . . b32 

Companies' Powers to Do Business, 
Dominion, April, 8 5 

Dominion Insurance Act Amend- 
ments (Editorial), AprU, 22 .... 9 

Dominion of Canada Guarantee & 
Accident Co., February, 25 ... . 34 

Edmonton Fire Underwriters, 
March, 4 d26 

Farm Property, Insurance Rates on, 
June, 17 10 

Fire Agents' Commissions in Ont- 
ario, January, 21 8 

Fire Insurance Costs and Commis- 
sions (Editorial), January 14 .. 

Fire Insurance Losses, Adujstment 
of, May, 27 24 

Fire Agents' Convention British 
Columbia, February, 4 25 

Fire Insurance Case, April, 22 . . 26 

Fire lasurpnee Costi and Commis- 
sions (Letter to the Editor), Jan- 
uary 28 7 

Fire Insurance in Canada in 1920, 
February, 4 26 

Fire Insurance in Canada, Fifty 
Years of, February, 11 18 



PAGE 

Fire Insurance Policies, Mortgage 
Clauses in, February 25 3S 

Fire Losses, Decembei-, January, 14 22 

Fire Losses, January, February, 11 26 

Fire Losses, February, March, 11 24 

Fire Losses, March, April, 8 . . . . 24 

Fire Losies, April, May 13 24 

Fire Loss, Quarter Billion, Who's 
Responsible ? May, 20 32 

Fires, Recent, (See every issue). 

Fires Starting Again, Forest (Edi- 
torial), May, 13 10 

Fire Underwriters' Association, 
British Columbia, May, 27 . . . . d28 

Fii-e Underwriters of Ontario, 
Mutual, February, 25 36 

Forest Fires Starting Again, May, 
13 10 

Guarantee Bonds, Surety and (Edi- 
orial) , April, 1 10 

Hail Association, Saskatchewan 
Municipal, March, 25 6 

Hail Insurance Board, Alberta, 
March, 18 14 

Hazards to Plate Glass, New, Janu- 
ary, 14 33 

Healtn and Accident Features in 
Life Policies, January 28 5 

Health Insurance, Would Have 
National, March, 11 d24 

Industrial Insurance, March, 25 . . 26 

Insurance Act Amendments, Domin- 
ion (Editorial), April, 22 . . . . 9 

Insurance Against Unemployment, 
(Editorial), March, 18 9 

Insurance and Fire Prevention, 
Manitoba, March, 11 18 

Insurance Commissions, Protests 
Regulatioci of, January, 14 . . . . b32 

Insurance Companies' Position Im- 
proved, (Editorial), April, 5 .. 9 

Insurance Companies, The Scope of, 
(Editorial), January, 28 9 

Insurance in Ontario m 1920, May, 
20 14 

Insuranci in 1920, Records Estab- 
lished, April, 15 5 

Insurance Licenses and Agency 
Notes, (See every issue). 

Insurance Rates to Be Revised, 
Halifax, March, 25 57 

Losses, Adjustment of Fire Insur- 
ance, May, 27 24 

Manitoba Fire Losses in 1920, Feb- 
ruary, 18 8 

Manitoba Insurance and Fire Pre- 
vention, March, 11 18 

Merchants Casualty Co. of Winni- 
peg, February, 18 46 

Merchants' Fire Risks, Retail, 
January, 14 35 

Mortgage Clauses in Fire Insur- 
ance Policies, February, 25 ... . 38 

Motor Accident, Decision on, June, 
24 8 

Municipal Hail Association, Saskat- 
chewan, March, 25 6 

Mutual Fire Insurance, Western 
Canada, January, 21 44 

Mutual Fire Underwriters of Ont- 
ario, February, 25 36 

National Health Insurance, Would 

Have, March, 11 d24 

Newfoundland Fire Losses Heavy, 

March, 4 18 

North ■ British and Mercantile 

Insurance Co. Changes, March, 4 12 
Nova Scotia's Fire Losses, March, 

18 32 

Occupancy, Co-insurance Use and, 

April, 8 18 

Ontario Insurance in 1920, May, 20 14 
Ontario, Mutual Fire Underwriters 

of, February, 25 36 

Plate Glass, New Hazards to, Jan- 
uary, 14 33 



PACE 

Quai-ter Billion Loss, Who's Re- 
sponsible, May, 20 32 

Retail Mei-chants Fire Risks, Jan- 
uary 14 35 

Saskatchewan Municipal Hail 
Association, March, 25 6 

Scope of Insurance Companies, The, 
(Editorial), January, 28 9 

Scottish Canadian Assurance Com- 
pany Obtains License January, 14 35 

Sickness and Accident Payments, 
Some, February, 25 34 

Sickness Insurance, Higher Rates 
for, February, 25 34 

Soldiers' Insurance, March, 18 ... . 20 

Surety and Guarantee Bonds, (Edi- 
torial), April, 1 10 

Underwriters' Association, Brutish 
Columbia Fire, May, 27 d28 

Unemployment, Insurance Against 
(Editorial), March, 18 9 

Unemployment Insurance in Can- 
ada, Possibilities of, March, 18 . . 5 

Unemployment Insurance, Ways 
and Means of, January, 21 ... . 7 

Use and Occupancy, Co-insurance, 
and, April, 8 18 

War Veterans Insurance, Advises 
Changes in, June, 17 1 

Western Canada Mutual Fire Insur- 
ance, January, 21 44 

Workmen's Compensation Results, 

Alberta, February, 25 28 

COKI-ORATIOW SECURITIES 
AND FINANCE 

Abitibi Dividend Rate Cut, April, 1 38 

Abitibi Power and Paper Co., Bond 
Issue, March, 4 42 

Alberta Flour Mills Stock Issue, 
January, 28 8 

Anglo-American Motors ? Ltd., 
(Editorial), M.iy 20 10,46 

Atlantic Sugar Refineries, Ltd., 
February, 18 54 

Bankruptcy Act, Action Under, 
February, 25 42 

Bell Telephone Co. of Canada, Jan- 
uary, 14 59 

Bell Telephone Company, Jariuary, 
28 50 

Bell Telephone Co. of Canada, April, 
8 42 

Bell Telephone Co. of Canada, April, 
15 44 

Bell Telephone Co. to Make Stock 
Issue, May, 20 46 

Black Lake Asbestos and Chrome 
Co. Ltd., March, 4 46 

Bond House, Operation of a (Edi- 
torial), February, 18 10 

Bond Sales, January, February, 11 24 

Bond Sales, February, March, 11 . . 22 

Bond Sales, March, April, 8 . . . . 14 

Bond Sales, April, May, 13 22 

Bond Sales, May, June, 24 7 

Britain, Investment Relations With, 
(Editorial), May, 13 9 

British America Nickel Corp., April, 
8 38 

British America Nickel Company, 
June, 24 7 

British Columbia Telephone Com- 
pany, April, 22 42 

British Empire Steel Corp., Febru- 
ary, 25 58 

British Empire Steel Corporation, 
New, April, 1 14 

British Empire Steel Corporation, 
April, 15- ; 42 

British Empire Steel Corporation, 
May, 27 50 

Brompton Bonds Are Offered, May, 
13 3S 

Business Losses, Some Notable, 
May, 27 10 



Index 



THE MONETARY TIMES 



January 1 to June 30, 1921 



PAGE 

Business, Stock Markets and, April, 

22 10 

Canada Land and Irrigation 

Company, March, 25 54 

Canadian I'acitic Stock Takes Dras- 
tic Slump, June 24 8 

Canada Permanent Mortgage Cor- 
poration to Merge, June, 'At . . . . 1 
Canada Steamship Lines, Ltd., i 

February, 25 54 ' 

Canada Steamship Lines, Ltd., / 

April, 22 42 " 

Canadian General Electric Changes, 

April, 1 12 

Canadian General Electric Would 

Increase Common, April, 29 ... . 44 
Canadian Pacific Financing (Edi- 
torial), May, 13 9 

Canadian Salt Company Bond 

Offering, May, 6 38 

Canadian Western Natural Gas, 

Light, Heac & Power Co. Ltd., 

January, 21 62 

Carriers, JJamage When Goods Lost 

by, April 22 26 

Clarke Bros. Bond Issue, March, 25 04 
Commercial Securities Corp., Ltd., 

February, 18 20 

Companies' Power to do Business, 

Dominion, April, 8 5 

Consumers Gas Stock Subscribed 

for — 

January, 14 54 

January, 21 58 

Consumers' Gas Company, January, 

28 50 

Corporation Finance, (See every 

issue) . 
Corporation Securities Market, ( See 

every issue). 
Corporations, Taxes on (Editorial), 

June, 24 4 

(3osgrave Brewery Co., Februarv, 

18 54 

Cosgrave Export Brewery Co., 

Februai-y, 25 54 

Dfmaa-e When Goot'S Lost by 

Can-iers, April, 22 26 

Davidson Consolidated Gold Mines, 

Ltd., January, 21 62 

Dominion Companies' Powers to Do 

Business, April, 8 5 

Dominion Foundries and Stesl, Ltd., 

Febi-uary, 25 54 

Equitable Securities, Ltd., Febru- 
ary, 11 35 

Express Companies' Substantial 

Increase, February, 11 38 

Felger Livestock and Grain, Ltd., 

(Editorial), February, 11 . . . . 10 
Financing of Public Utilities, April, 

8 22 

Fort William Pulp Company Issues 

Bonds, Febniary, 4 54 

Eraser Companies Offer Securities, 

March, 11 38 

Goodyear Tire and Rubber Co. of 

Canada, April, 15 42 

Gordon Ironside and Fr.res Co., Ltd., 

January, 21 62 

Gi'and Trunk Claim Against U. S. 

Government, January, 14 42 

Grand Trunk Maturities in Britain, 

January, 28 46 

Grand Trunk Railway Borrows in 

United States, January, 21 ... . 58 
Grand Trunk Retires Notes in Lon- 
don, March, 18 50 

Great West Garment Co. Bonds, 

March, 25 54 

Hamilton Car Co., Ltd., April, 15 42 
Howard Smith Paper Mills Bonds, 

March, 4 a26 

Howard Smith Paper Mills Finan. 
cing, February, 25 54 



PACE 
Howard Smith Pulp and Paper 

Bonds, March, 11 38 

Hudson's Bay Land Sales, Febru- 
ary, 25 . . ; 38 

Imperial lODacco Co. of Canada, 

i" eoruary, 11 . 54 

Insolvency, Voluntary Winding up 

Does Not Constitute, February 18 42 
International narve:=ier jo.ni own- 
ership I'lan, (Editorial), Febru- 

ai-y, iS 10 

Investing in Oil, May, 20 zo 

Investment Houses Ji,xpect Improv- 

ea ouyjng. May, 6 12 

Joint Ownership Plan, A (Editor- 
ial), I'ebruary, 1« 10 

Laurentide Power Bond Issue, 

.rt-prji, b 3S 

Lauientian I'ower isona urtering, 

June, XI 3 

Levis County Railway, March, ii . . i'A 
i-iMutea IjiaoUity companies m the 
Stock brokerage business (,Ji,di- 

torial), April 1 .. 10 

LiaoiJity ol atock iiJxchange xviem- 

bers (Eaitoz-ial), April, 1 .. .. 10 
Loan ana irust (_;ompany returns 

to be Cliecked, June 24 1 

Lo:;n Dy Company to &.iaieholdors. 

Action on, j^eoruary, 11 42 

Loan Companies la2u i'igures, 

Ontai'io, March, 25 20 

Loan Companies to iVlerge, June, 'Zi 1 
London & Canadian Loan & Agency 

Company to Merge, June 24 ... . 1 
Mack Furnace Co., Ltd., April, 8 . . 38 
Maritime Telegraph and telephone 

Co. Bonds, January, 21 58 

Morris tiros. !■ ailure (JJditorial), 

Febi-uary, 18 10 

Mortgage Companies of Ontario, 

Land, March, 25 40 

Mortgage Diecov.nt and Finance, 

Ltd., (Editorial), March 11 . . . . 10 
Mount Royal Hotel Company, 

February, 4 54 

Mount Royal Hotel Bond Offering, 

February, 11 54 

National Brick Company Will Re- 
organize, May, 13 38 

New Windsor Hotel Stock Offering, 

April, 15 38 

North America Pulp and Paper 

Ti-ust, February, li 58 

Oakoal Co. of Canada, Ltd., (Edi- 
torial), April, 29 9 

Oakoal Co. of Canada, Ltd., June, 

24 3 

Oil, Investing in, May, 20 28 

Ontario Loan Companies 1920 

Figures, March, 25 20 

Pedlar People Bond Issue, March, 

25 . 54 

Preference Under Dominion Wind- 
ing-up Act, May, 27 34 

Pressed Metals Co. of Canada, June, 

24 3 

Prince's Ltd., Liabilities of, Janu- 
ary, 21 6 

Public Utilities, Financing of, April, 

8 22 

Pulp and Paper Financing, New- 
March, 4 42 

March 11 38 

Purchasers, Sale of Goods to Joint, 

March, 11 26 

Railroad Earnings, Gross. (Sec 

every issue). 
Railroads Lost Money in 1919, 

February, 25 ." 30 

Railwavs and Operating Costs, 

(Editorial), March, 18 10 

Railway Problem Still Unsolved, 
April, 29 8 



PAGE 
Railway Situation Considered in 

Parliament, March, 25 7 

Railways, The Difficulties of (Edi- 
torial), March, 18 9 

Railway Ti'affic, Co-ordination of, 

April, 8 9 

Realty Financing By Bond Issues 

(Editorial), April, 29 10 

Riordon Co., Ltd., May, 27 50 

Riodon Company's Position Out- 
lined, May, 13 12 

Riordon Stock Adjustment, March, 

18 50 

Riordon Stock Takes Drastic Slump, 

April 22 38 

Rubber's Rise and Fall (Editorial), 

April, 15 10 

Sale of Goods co Joint Purchasers, 

March, 11 26 

Salj of Khares, Action to Stop, June, 

24 9 

Sale of Shares, Contract for, June, 

17 2 

Securities Market, Corporation. 

(See every issue). 
Shareholders, Action on Loan By 

Company to, February, 11 ... . 42 
Shareholders' Meeting, Power of 

Manager to Call, April, 15 ... . 26 
Shares, Action to Swp Sale of, June, 

24 9 

Shares, Contract for Sale of, June, 

17 2 

Shares, Double Payment of by 

Mistake, March, 25 42 

Shavrinigan Power Bonds Sold, 

March 11 , 38 

Smoot Service Corporation, Ltd., 

(Editorial), February 18 10 

Spanish River Pulp and Paper Bond 

Offering, February 11 54 

Spanish River Pulp and Paper Co., 

March 18 50 

Steel Corporation, New British 

Empire, April 1 14 

Stock. Dispute Over Subscription to, 

January 21 46 

Stock Exchanges, Montreal and 

Toronto. (See every issue). 
Stock Markets and Business (Edi- 
torial), April 22 10 

Stock Offerings Reach Good Total 

in 1920, Public, January 14 ... . 38 
Stock Sales and Prices. (See every 

issue). 
Stocks Depressed by Unfavorable 

Statements, April 22 5 

Tiger Tire and Rubber Corp., Feb- 
ruary 25 54 

Toronto Railway Companv, January 
14 " 58 

Trademark, Registration of General, 
April 29 26 

Trade Mark, Registration of. May 
20 34 

Unlisted Securities. (See every 

issue). 
Utilities, Financing of Public, April 

8 22 

Winding-up Act, Preferences Under 
Dominion, May 27 34 

Windsor Hotel Company, Januai-y 
21 62 

Winnipeg Electric Railway Com- 
pany, Febi-uary 11 58 

Winnipeg Electric Railway Earn- 
ings, January 14 58 

Winnipeg Electr'c Raihv-iv Still in 
Rough Water, March 11 6 

Winnipeg Electric Railway Stock 
Sale, Januai-y 14 54 

Woollings Company, T. S., May 27 36 



January 1 to June oO, 1921 



THE MONETARY TIMES 



Index 



PAGE 

BANKING AND ECONOMICb 
Aftermath, Banking Opportunities 

and the, February 18 18 

Alberta s lyiil Legislative Session, 

June 24 5 

Alberta Legislature in Session, 

Maich25 31 

American and Canadian Trust 

(companies, xviay lo 20 

American Interest in Canada, inay 

Zl 18 

Analysis of ±>usiness l-auures in 

lyzu, March Zo 38 

AsstSim-.nD and j^and Titles (Edi- 
torial;, May 20 10 

Assig^nment, iNotice of, January, 14 42 
BanK Account and the Wills Act, 

Joint, April 1 26 

Bank Act, Amendments Proposed 

(Editorial), June 24 .. .... .. 4 

Bank Act, Section oa of the, April 

15 22 

Bank Branches, Four Hundred in a 

Year, January 21 33 

Bank Branches, Where They Are 

Situated, January 21 33 

Banking Capital, More Than Seven 

Millions of New, January 14 ... . 5 
Banking Capital, Premises Tie Up, 

May 20 30 

Bank Clearings. (See every issue). 
Bank Credius, Distribution of 

(Editorial), May 6 10 

Bank Credits Must Be Short Term, 

Why, May 27 22 

Banking Opportunities and the 

Aftermath, February 18 18 

Banking Results in Scotland, (Edi- 
torial), January 28 9 

Bank Loans, Movement of, (Editor- 
ial), February 25 10 

Bank Manager, Broad Fields 

Covered by, June 17 4 

Bank, Operating a State (Editorial), 

February 25 9 

Bank Premises Holding Company 

Suggested, May 20 28 

Bankruptcy Act, Action Under, 

February 25 42 

Banki-uptcy Act in Operation, The, 

January 14 26 

Bankruptcy Act Still in Process, 

February 4 8 

Bank Services, Remuneration for, 

March 18 22 

Banks, Relations With Other, Feb- 
ruary 11 32 

Bank Statement, December, Febru- 
ary 4 5 

Bank Statement, January, March 4 5 
Bank Statement, February, April 1 5 
Bank Statement, March, May 6 . . 18 
Bank's Stationery Department, A 

(Editorial), April 8 10 

Banks vs. Life Insurance, March 18 32 
Banque d'Hochelaga Held Liable, 

February 18 42 

Bills of Exchange Act, Effect of 

Section 167 of, January 28 ... . 34 
Boards of Trade Review Year's 

Work, February 4 18 

Bonusing Industry, Municipalities 

Suffer by (Editorial), May 6 .. 10 
Britain, Investment Relations With 

(Editorial), May 13 9 

British ColumBia Legislative Ses- 
sion, April \b 18 

British Columbia Legislature Now 

in Session, March 11 5 

Building Activity at the Coast, 

Some, May 6 7 

Building Activity, Land Values and 

(Editorial), April 15 10 

Building, The Rewards and Costs of 

(Editorial), January 28 10 



PAGE 

Business and Pergonal Connection 
March 4 lo 

Business and Stock Markets (Edi- 
torial), AprU 22 10 

Business, Dominion Companies' 
Power to uo, April 8 5 

Business Enterprise Deserves Fos- 
tering, the bpirit, teoruary 11 36 

Business P'ailures in 1920, Analysis 
of, March Z5 38 

Business Failures. (See every 
issue). 

Business Failures, A "Crop" of, 
April 29 22 

Business, How it Should Be Taxed? 
(Editorial), April Z\i 10 

Business Losses, borne Notable 
(Editorial), May z7 lU 

Canada, American Interest in, May 
zt 18 

Canada and South Africa (Editor- 
ial), May 2u y 

Canada and the Imperial Navy, 
April 29 5 

Canada and the Reparation Terms 
(Editorial), li ebruary 4 9 

Canada, International Ti'ade Situ- 
ation in, May 27 7 

Canadian Trust Companies, Amer- 
ican and, May 13 20 

Cancellation of Business, Too Much, 
(Editorial), January 14 10 

Capital and Immigration, Attracting 
(Editorial), June 17 4 

Capital, More than Seven Millions 
of New Banking, January 14 . . 5 

Census, What Will the 1921 Reveal? 
April 29 18 

Charitable Appeals, Duplicating 
(Editorial), March 25 10 

Coast, Building Activity at the. May 
6 7 

Copyright, Infringement of. May 6 26 

Co-operative Marketing of Grain, 
March 4 18 

Creditor Against Estate, Action of, 
March 18 38 

Credits Must Be Short Term, Why 
Bank, May 27 22 

Credits, Short and Long Term 
Rural, April 22 14 

Crime, Finance and (Editorial), 
March 18 lo 

Currency Inflation, Our (Editorial), 
February 25 9 

Debtor, Conveyance of Property by, 
April 8 26 

Deflation in the United States 
(Editorial), March 11 10 

Deposit. Agent Fraudulently With- 
drawing, May 20 34 

Depositaries for Public Savings 
(Editorial), February 4 9 

Deposit Limitations of Loan and 
Trust Companies, February 4 . . 14 

Dollar, Our Good Canadian, (Edi- 
torial), April 15 9 

Dominion Control of Water-Powers, 
May 27 14 

Domin-on Moi-tgage and Investment 
Association Meets, May 13 ... . 8 

Dominion Mortgage and "investment 
As-ociati n. May 20 5 

Earning Capacity of the Average 
Man, April 15 16 

Economic Developments in Western 
Canada. January 21 37 

Electric Railway Association, Can- 
adian, February 11 d32 

Employee. Personal Connection 
With (Editorial), March 4 .. .. 10 

Enterprise Deserves Fostering, The 
Spirit of, February 11 36 

Estate. Action of Creditor Against, 
March 18 38 



_ PAGE 

Estate, Administration of. May 13 z6 

Exchange Act, Effect of Section 167 
of Bills of, January 28 34 

Exchange in Relation m the Secur- 
ities Market (Editorial), January 
21 9 

Exchange Problem, An Aspect of 
the, March 18 36 

Exchange Quotations. (See every 
issue). 

Exchange Rates, Intrincacies of, 
February 4 24 

Exchange, Rise in, January 14 . . 38 

Failures, A Crop of Business, April 
29 22 

Failures, Business. (See every 
issue). 

Failures in 1920, Analysis of, 
March 25 38 

Failures in Canada in 1920, Com- 
mercial, January 14 24 

Failures, Speculation and (Editor- 
ial), January 28 10 

Farmers' Movement is Economic, 
Organized, February 18 34 

Federal Charter Over-Rides Provin- 
cial Laws, March 4 30 

Finance and Crime (Editorial), 
March 18 lo 

Finances Must be Sound, Industries' 
(Editorial), January 21 10 

Financial Bills Before Parliament, 
March 4 14 

Financial Business Dull in the 
Capital, April 29 14 

Financial Relations with the United 
States, January 14 18 

Financing in Great Britain, Long- 
Term (Edtiorial), January 21 . . 10 

Fordney Tariff Measure, The (Edi- 
torial), February 18 9 

Forewarnings for 1921 (Editorial), 
January 14 9 

Foreign Exchange and the Security 
Market. (Editorial), January 21 9 

Foreign Trade Machinery is Deli- 
cate, May 13 18 

FraudulenHv Withdrawing Deposit, 
Agent, May 20 34 ■ 

German Indemnity, The (Editorial), 
March 4 9 

Gold and Silver Production, April 
22 36 

Gold Movement from Canada (Edi- 
torial) , January 14 9 

Grain Broker to Recover Losses, 
Right of, January 28 34 

Grain, Co-operative Marketing of, 
March 4 18 

Great Britain, Long-Term Financ- 
ing in (Editorial), January 21 .. 10 

Great Britain Will Soon be in 
World's Markets Again, April 29 28 

Great West Bank of Canada, The 
(Editorial), March 4 9 

Home Bank Loses Cahan Case, 
Februai-y 25 18 

Housing Loan, Proposes Huge 
Government, Febi-uary 25 ... . 36 

Immigration and Industry (Editor- 
ial), March 25 9 

Immigration and Unemployment, 
May 20 20 

Immigration, Attracting Capital 
and (Editorial), June 17 4 

Immigration Increasing, March 4 . . 7 

Immigi-ation Still Increases, March 
18 24 

Impei-ial Navy, Canada and the, 
April 29 ?, 

Income Tax, Intricacies of the, 
April 15 36 

Income Tax Payments, (Editorial), 
May 6 9 



Index 



THE MONETARY TIMES 



January 1 to June 30, 1921 



PACE 

Indemnity, The German (Editorial), 

Marcli 4 9 

Inoustnes' l-'mances Must be Sound 
(Editorial), January ^1 . . . . . . 10 

Industry, iiunugration and (Editor- 
ial), March 25 9 

Inrtavion, Our Currency (Editorial), 

February 25 9 

Insolvency, Voluntary Winding-up 

Does i.ot Constitute, Februai-y IS 42 
International Trade Situation in 

Canada, May 27 7 

Investing in Oil, May 20 28 

Investments Association, Dominion 

Mortgage, May 20 5 

Issues for Coming Session, Broad 

(Editorial), February 11 9 

Joint Bank Account and the Wills 

Act, April 1 26 

Joint Ownership Plan, A (Editor- 
ial), l<ebiuary 18 ,. . • • 10 

Labor Organization and the 

Kadicals vHiditoriai), May 13 . . 10 
Labor Situation in Relation to 
i-rices and ri-ofiis (i.ditorial), 

January 21 9 

Labor, What it Wants ? January 21 41 
l^and Mortgage Companies of Ont- 
ario, Marcn 25 40 

Land Titles, Assessment and ^Edi; 

torial), May 20 10 

Land Values and Building Activity 

(Editorial), April 15 10 

Land Values Increased, Average, 

March 25 32 

Legislation, The Progress of Social 

(Editorial), February 11 . . . . 9 
Loan and Trust Assets to be Fully 

Examined, January 14 7 

Loan Companies 1920 Figures, 

Ontario, March 25 20 

Loan Companies, Consider Borrow- 
ing Powers of, January 28 ... . 7 
Loans, Movement of Bank (Editor- 
ial) , February 25 10 

Long-Tenn Financing in Great 

Britain (Editorial), January 21 10 
Manitoba Legislative Session, 

March 11 18 

Manitoba Legislative Session, May 

27 -. • 8 

Manitoba Legislature Now in 

Session, February 11 6 

Merchants Bank Makes Foreign 

Connection, April 22 8 

Money Conditions in the West, 

Easier, February 25 7 

Montreal and Quebec Savings Insti- 
tutions, Febi-uary 4 24 

Montreal and Quebec Savings Insti- 
tutions, January Statement, 

March 4 22 

Montreal and Quebec Savings Insti- 
tutions in February, April 1 . . . . 24 
Montreal and Quebec Savings 

Institutions, May 13 24 

Montreal Banks are Swindled, 

March 11 .• ■ 20 

^Mortgage and Investment Associa- 
tion, Dominion, May 13 ..... . 8 

Mortgage and Investments Associa- 
tion, Dominion, May 20 5 

Mortgage 3nd trusts Association, 

B. C, January 14 d32 

National Debts, Something about 

(Editorial), April 8 10 

National Disappointment, A (Edi- 
torial), February 4 10 

Nfit-onal Problems Remain Unsolv- 
ed, June 24 , 1 

New Brunswick Legislative Session, 

April 15 ^ 20 

New Brunswick Legislative Session, 
May Ci 24 



PAGE 
New Brunswick Will Practice 

ji,conomy, April 22 18 

Note lo iiank, Payment, of, April S 26 
Nova Scotia Legislative Session, 

April 15 41 

Ontario's 1921 Legislation to be 

Comprehensive, J; eOruary 25 . . 5 
Ontai-ios Legislation in 192i Covers 

Broad t leld. May 20 18 

Organized Farmers' Movement is 

Economic, February 18 34 

Ownership Plan, Joint (Editorial), 

a ebruary 18 ; 10 

Parliamentary Session lor 1921, 

(iLditonal), May Z( _ 10 

Parliamentary beoSion, Kcsult of 

uominion, june 24 1 

Parliamentary Session to Close May 

28, May 27 5 

Parliament, Broad Issues for Domin- 
ion (iiiditorial), t'eoruary 11 . . 9 
Parliament, J^inancial rSiUs Beiore, 

March 4 14 

Parliament Opens With Political 

Battle, February 18 7 

Parliament Ready for Opening on 

Monday, February 11 . . . . -. . . . 7 
Parliament, 'ihe Outlook at Ottawa 

(Editorial), February 18 9 

Personal Connection in Business 
(Editorial), March 4 ......... 10 

Premises Tie up lianking Capital, 

May 20 : 28 

Prices Changing With Phenominal 

Rapidity, January 28 18 

Prince Edward Island Legislative 

Session, April 15 24 

Prince Edward Island Legislative 

Session, May 13 14 

Profits and rrices in Relation to 

Labor (Editorial), January 21 . . 9 
Progress of Trust Companies, March 

25 . . • . . • • 40 

Property by Debtor, Conveyance of, 

April 8 26 

Protective Tariff, A National Dis- 
appointment (Editoi-ial), Febru- 
ary 4 10 

Provincial Laws, Federal Charter 

Over-Rides, March 4 30 

Quebec Legislative Session, Work of 

the, February 25 26 

Quebec Parliamentary Session, 
Municipal Legislation Featured, 

April 1 18 

Radicals, Labor Organization and 

tne (Editorial), May 13 10 

Railway Problem, Shaughnessy 

Proposal, April 29 8 

Railway Traffic, Co-ordination of, 

April 8 9 

Relations With Other Banks, 

Februai-y 11 32 

Relations With the United States, 

Financial, January 14 18 

Remuneration for Bank Services, 

March 18 22 

Reparation Terms, Canada and the 

(Editorial), February 4 9 

Retailers Now Taking Losses (Edi- 
torial), May 20 9 

Rural Credits, Short and Long 

Term, April 22 14 

Sav-ng3, Depositaries for Public 

(Editorial), February 4 9 

S!>vine's P-'nks. Dominion Govern- 
ment, February 11 32 

Scotland, Banking Results in (Edi- 
torial), January 28 9 

Section 88 of the Bank Act, April 15 22 
Securities Embargo Lifted, January 

21 54, 8 

Securities Market, Foreign Ex- 
change in Relation to (Editorial), 
January 21 9 



PAC.Ji 
Signature, The Legible (Editorial), 

ii'ebruary 25 10 

Sliver Price Fell Rapidly in 1920, 

Feoruary 4 32 

Silver Production, World s Gold and, 

April 22 36 

Social Legislation, The Progress of 

(Editorial), February 11 . . . . 9 
South Africa, Canada and (Editor- 
ial), May 20 9 

Speculation and Failures ^ Editor- 
ial), January 2» 10 

Stati,- Bank, operating a (Editor- 
ial), Februai-y 25 9 

Stationery Department, A Bank's 

(Editorial), April s 10 

Stock Markets and Business (Edi- 
torial), April 22 10 

Succession Duty, Assessment for, 

May 27 34 

Tariff Measure, The Fordney (Edi- 
torial), l-eDruary 18 9 

Taritt Policy, The Republican (Edi- 
torial), March 25 10 

Tariff, Protec<,ive, A National 
Disappointment (.Editorial), Feb- 
ruary 4 10 

Taxation Now Being Tested, War- 
time, March 25 5 

Taxed, now Jbusiness Should Be ? 

- (Editorial), April 29 10 

Taxes on Corporations (Editorial), 

June 24 4 

Tax on Sales, Turnover Tax and an 

E.xtended, May 6 5 

Trade Mai'ks, Concurrent Use of, 

February 4 42 

Trusts Assets to be Fully Examined, 

Loan and, January 14 7 

Trust Companies, American and 

Canadian, May 13 20 

Trust Companies, Deposit Limit of 

Loan and, December 4 14 

Trust Companies, The Progress of, 

March 25 ... 40 

Trust Company Notes, April 29 . . 14 
Trust Compa'ny Returns to be 

Checked, Loan and, June 24 ... . 1 
Trust Moneys in Deceased's Hands, 

Priority of, June 24 6 

Turnover Tax and an Extended Tax 

on Sales, May 6 5 

Turnover Tax, The Proposed, 

(Editorial), April 1 9 

Turrfover Tax Not Desirable (Edi- 
torial), May 6 9 

Unemployment, Immigration and, 

May 20 20 

Unemployment Situation in Canada, 

March"ll 14 

United States, Financial Relations 

wth the, January 14 18 

Voluntary Winding-up Does Not 
Constitute Insolvency, February 

18 42 

Waterpowers, Dominion Control of, 

May 27 14 

Weather, A Gamble on the (Editor- 
ial), April 22 10 

West, Easier Money Conditions in 

the, February 25 ,7 

Western Canada, Economic Devel- 
opments in, January 21 37 

Wheat Pool, The, March 25 18 

Wheat Touches Dollar Mark (Edi- 
torial), April 29 10 

Wholesale Prices, Index Number 
of— 

January 21 24 

February 25 24 

March 25 14 

April 29 24 

May 27 24 

Juiie 24 10 



Index 



THE MONETARY TIMES 



January 1 to June 30, 1921 



PAGE 
Wills Act, Joint Bank Account and 

the, April 1 26 

Withdrawing.- Deposit, Agent Fraud- 
ulently, May 20 34 

ANNUAL REPORTS 
Banks 
Bank of Hamilton, March 25 . . 8 
Bank of Hamilton, April 1 . . . . 43 
Bankof Hockolaga, January21, 14, 25 
Bank of Montreal ( Semi- Annual ) , 

May 27 25, 52 

Bank of Nova Scotia, January 

28 27, 51 

Bank of Toronto, Januai-y 14 . .14, 34 
Banque Nationale, June 24 .. ..11, 12 
Canadian Bank of Commerce, 

January 14 . .27, d32 

Dominion Bank, January 28 ..14, 28 
Imperial Bank of Canada, May 

27 16, 26 

Lloyds Bank Limited. May 20 . . 49 
Merchants Bank of Canada, June 

17 8, 9 

Montreal City and District Sav- 
ing's Bank, February 25 . . ..14, 33 
Roval Bank of Canada, January 

21 12, 39 

Standard Bank of Canada, Febru- 
ary 18 8, 57 

Sterling Bank of Canada, May 

20 8, 51 

Union Bank of Canada, January 

21 8, 27 

Weyburn Security Bank, April 1 41 

Insurance 
Acadia Fire Insurance Company, 

May 13 30 

Aetna Life Insurance Company, 

March 11 12, c24 

British America Assurance Com- 
pany, March 25 16, 25 

British Northwestern Fire Insur- 
ance Co., March 4 26 

Caledonian Insurance Company, 

June 17 12 

Canada Life Assurance Company, 

January 14 8, e32 

Canada National Fire Insurance 

Company, February 18 .. ..28, 52 
Canadian Fire Insurance Com- 

panv, March 4 26 

Canadian Suretv Company, March 

4 ■ d26 

Casualty Co. of Canada, March 18 56 
Confederation Life Association, 

January 28 27 

Commercial Life Assurance Com- 
pany, March 18 25, 48 

Continental Life Insurance Com- 
pany, February 11 57 

Crowri Life Insurance Company, 

Februarv 11 d32 

Dominion Fire Insurance Co., 

March 18 12, 33 

Dominion Life Assurance Com- 
pany, February 11 25, 57 

Employers' Liability Assurance 

Report, June 17 1 

Excelsior Life Assurance Co., 

February 4 37 

Farmers' Mutual Insurance Com- 
panies, March 4 28 

Fire Insurance Company of Can- 
ada, April 1 39 

Glens Falls Insurance Company, 

May 13 6 

Great West Life Assurance Com- 
pany, February 14 19, 36 

Guarantee Company of Nortli 

America. February 25 .. ._. .. 14 
Imperial Guarantee and Accident 

Company, Januar-y 21 33 

Imperial Life Assurance Com- 
pany, January 14 8 



PAGE 

La Sauve^arde Life Insurance 

Company, April 29 20 

Liverpool and London ana GloDe 

Insurance Co., June 17 11 

London Life Insurance Company, 

February 18 30 

London Life Assurance Company, 

February 25 28 

London Mutual Fire Insurance, 

Company, February 25 .. ..29,32 
Manitoba', Farmers' Mutual Hail 

Insurance Co., February 11 ..12, 25 
Manufacturers' Life Assurance 

Company, February 4 .. . .12, 27 
Milk River Mutual Fire Insurance 

Company, February 25 36 

Miniota Farmers' Mutual Fii-e 

Insurance Co., April 29 26 

Merchants Fire Insurance Com- 
pany January 14 14, f32 

Monarch Fire Insniance Co., 

March 4 26 

Monarch Life Assurance Com- 
pany, February 4 12, 33 

Mount Royal Assurance Company, 

Marcn 11 41 

Mount Roval Assurance Company, 

March 18 29 

Mutual Life Assurance Co. of 

Canada, Febniary 4 31, 52 

Mutual Life Insurance Co. of New 

York, February 4 36 

National Life Assurance Com- 
pany, J.inuary 21 35, 61 

New York Life Insurance Com- 
pany, February 25 30 

North American Life Assurance 

Company, January 28 . . . . 8, 25 
Northwestern Life Assurance 

Company, February 25 . . . . 8, 59 
North W^est Fire Insurance Co., 

Ltd.. February 18 27, .52 

Ornide"taI Fire Insurance Co., 

March 4 8, 28 

Ontario Equitable life and Acci- 
dent Insurance Co., Februarv 

18 12, 59 

Policy-Holders Mutual T.ife Insur- 
ance Co.. February 25 30 

Portage La Prairie Farmers' 
Mutal Fire Insurance Co.. Feb- 
ruary 4 . . 33 

Port-^i-e La Prairie Farmers' 
Mutual Fire Insurance Co., 

February 11 57 

Provident Insurance Company, 

Anril 1 41, 21 

Prudential Insurance Company, 

February 25 32 

Saskatchewan Fprn-ers' Mutual 

Fire Insurance Co., March 18.16, 51 
Security Life Insurance Company, 

Februarv 11 12. c32 

Sovereipn Life Assurance Co. of 

Canada, February 11 27,40 

St. John's Mutual Life Associa- 
tion, February 18 36 

St. Paul Fire and Marine Insur-- 

ance Co., February 4 12, 27 

Sun Life Assurance Company. 

February 11 d32, .59 

Travellers Companies of Hartford, 

April 8 36 

Treatv Reinsurances, Ltd., March 

18 '. 40 

Union Fire and Casualty Com- 
pany, Febniai-y 25 12,27 

Wawanesa Mutual Insurance 

Company, February 25 .. ..16, 27 
Western Assurance Company, 

March 25 27, 16 

Western Empire Life Assurance 

Co., February 4 37,52 

Western Life Assurance Com- 
pany, February 18 32, 59 



PAGB 
Trust and Loan 
British Columbia Permanent Loan 

Co., February 18 32 

British Columbia Permanent Loan 

Co., February 25 39 

Canada Permanent Mortgage 

Corporation, February 4 ..28,37 
Canadian Guaranty Trust Com- 
pany, February 11 8, a32 

Canadian Mortgace Investment 

Company, February 11 40 

Canadian Northwest Land Com- 
pany, Ltd., April 1 42 

Capital Trust Company, February 

11 40 

Central Canada Loan and Savings 

Company, January 28 14 

Chartered Trust and Executor 

Co., March 4 d26 

Colonial Investment and Loan Co.. 

February 25 24 

Crown Trust Company, February 

25 16 

Eastern Canada Savings and 

Loan Company, February 18 . . 33 
Eastern Trust Company, March 

11 32 

Equitable Trust Company, of 

Winnipeg, February 25 .. .24, 35 
Guaranty 'Trust Company of New 

York, January 14 40 

HanJlton Provident and Loan 
Corporation, February 18 ... . 24 

Hamilton Provident and Loan 
Corporation. March 4 ..... . 25 

Home Investment and Savings 

Association. February 11 . . 8, 28 
Huron and Erie Mortgage Cor- 
poration. February 11 . . . . 8, 29 

Imnerial Trusts Company "f 

Canada. February 25 24 

International Loan Company, 

April 22 22 

Lambtnn Loan and Investment 

Co. Fph'-uary25 57 

Landed Banking and Loan Com- 
pany, January 28 14 

London and Canadian Loan 

Agency Comuany. February 11 8 
London and Canadian Loan and 

Agency Co. Ltd., Februai-y 18 37 
London and Wester" Trusts Com- 

. uanv, 'P'e'^ruarv 18 3^" 

Lond-n Loan and Savings Co.. 

February' 25 5" 

Mercantil'* Trust Company, Feb- 
ruarv 18 32 

Mercantile T>-ust Company of 

Canada. Februarv 25 25 

Midland Loan and Savingrs Com- 
pany. January 21 65 

Montreal Loan and Mortga2:e Co., 

Februarv 25 57 

Montreal Trust Company, Janu- 
ary 28 24 

Mortgage Corporation of Nova 

Scotia, Februai-y 25 57 

National Trust Company, Januaiy 

28 • ■ 27 

National Trust Company, Ltd., 

Februarv 4 58, 59, 60 

Northern Mortgage Co. of Cana- 
da, March 4 • • 28 

Northern Trusts Company, Feb- 
ruary 11 40 

North of Scotland Canadian 

Mortgao-p Co. Ltd., Februarj'25 34 
Nova "Scotia Trust Company, 

April 22 8 

Ontario Loan .and Debenture Co.. 

February 11 h32, 57 

Peoples' Loan and Saving Com- 
pany, Februarv 18 32 

Premier Tnist Company, Febiit- 
ary 18 32 



January 1 to June 30, 1921 



THE MONETARY TIMES 



Index 



PACK 
Prudential Trust Company, March 

25 6 

Real Estate Loan Company of 

Canada, Ltd., February 18 ..27, 52 
Royal Loan and Savings Company, 

February 11 d32 

Saskatchewan Mortgage and 

Trust Co., February 25 ... . 28 
Security Loan and Savings Com- 
pany, February 25 34 

Security Loan and Savings Com- 
pany, March 18 14 

Standard Trusts Company, Janu- 
ary 28 8, 2o 

Sterling Trusts Corporation, 

March 4 d23 

Toronto General Tntsts Corpor- 
ation, January 21 61 

Toronto General Trusts Corpo:- 

ation, February 1 34 

Toronto Mortj^age Company, 

January" 21 38 

Toronto Mortg-age Company, Jan- 
uary 21 38 

Toronto Mortgage Co'-ipany, Feb- 
ruary 1 1 . . .^ 37 

Toronto Savines and Loan Com- 
pany, March IS 14 

Trust and Loan Company of 

Canada, June 17 12 

Trustee Company of Winnipeg, 

April 22 . . . ! 7 

Trust'; and Guarantee Company. 

February 11 8, 33 

Union Trust Company, February 

18 * 12, 25 

Waterloo County Loan and Sav- 
ings Company, Febnjary 25.. 8, 37 
Western Canada Investment 

Companv, Ltd.. February 11 . . 40 
Western Homes, Ltd., January 21 61 

Industrial 
Abitibi Power and Paper Co., 

April 1 44 

American Salesbook Co., February 

25 58 

American Salesbook Co., March 4 47 
Ames-Holden-McCready, Ltd., 

April 1 44 

Ames-Holden Tire and Felt Cos., 

April 8 42 

Belding, Paul Corticelli, Ltd., 

February 4 57 

Brandram-HendersOn, Ltd., April 

29 24, 42 

British Columbia Fishing and 

Packing' Co., March 4 45 

Brompton Pulp and Paper Com- 
pany, Jannai-y 28 50 

Burt Company. F. N. February 4 57 
Burt Co., Ltd.,F. N.— 

February 18 . 35 

February 25 58 

Canada Cement Company, Febru- 
ary 18 58, 33 

Canadian Consolidated Felt, Co., 

May 6 42 

Canadian Consolidated Rubber 

Co.. Ltd.. April 29 38 

Canadian Cotton?, Ltd., May 13 42 
Canadian Fairbanks-Morse Co., 

Ltd., April 29 38 

Canadian General Electric Co., 

Ltd., March 25 34, 59 

Can.adian Westinghonse, Ltd., 

April 1 42 

City Dairy Co., Ltd., March 11 - . 42 
Dominion Bridge Co., Ltd., 

January 14 58 

Dominion Canners, Ltd.. March 11 42 
Dominion Engineering Works, 

Ltd.. March 25 59 

Dominion Linens, Ltd., .A.pril 1 . . 42 
Goodwin-^, Ltd., .\pril 8 42 



PAGE 
Goodyear Tire and Rubber Com- 
pany of Canada, February 11 58 
Holt i<entrew Co., Ltd., April 1 42 
Howara Smith Paper Mills, Ltd., 

February 25 40 

King Edward Hotel Co., Ltd., 

March 4 43, 45 

Mattagami Pulp and Paper Co., 

Ltd., May 20 50 

Monarch knitting Co., Ltd., April 

29 38 

Montreal Cottons, Ltd., March 4 45 
National Breweries Co., Ltd., 

March 25 : . . . . 58 

Nova bcotia Steel and Coal Co., 

Ltd., March 13 43 

Nova Scotia Steel and Coal Com- 
pany, March 18 34 

Penman's Ltd., March 11 42 

Port Hope Sanitary Manufactur- 
ing Company, March 25 ... . 58 
Price Bros, and Company, Ltd., 

May 20 50 

Provincial Paper Mills, Ltd., 

February 18 40 

Provincial Paper Mills, Ltd., 

February 25 31 

Quaker Oats Company, March 25 58 
Riordon Co., Ltd., April 1 . . . . 42 
Rogers Co., Ltd., Wm. A., Febru- 
ary 11 58 

Rogers, Ltd., Wra. A., February 

18 33 

Saguenay Pulp and Power Co., 

March 18 56 

Sawyer-Massey Co., Ltd., March 

18 54 

Shredded Wheat Company, Feb- 
ruary 25 40 

Simpson Co., Ltd., Robt., March 

18 54 

Steel Companv of Canada, Ltd., 

April 8 44 

St. Maurice Paper Co., Ltd., April 

8 44 

Tuckett Tobacco Companv, Ltd., 

May 27 ." 50 

We.stern Grocers, Ltd., April 8 . . 42 
Winn'peg- Paint and Glass Co., 

June 24 3 

Woods Manufacturing Co., Ltd., 

February 18 40 

Utilities 
Barcelona Traction, Light and 

Power Co., January 14 58 

Barcelona Traction, Light and 

Power Co.. January 21 63 

Bell Telephone Company of 

Canada March 4 ". ..27, 47 

British Columbia Electric Rail- 
way, February 11 34, 58 

Canada Steamshin Lines, Ltd., 

May 13 42 

Canadian Pacific Railvray Com- 
panv, February 4 57 

Canadian Pacific Railway Co., 

March 25 ." . . . . 58 

Canadian Pacific Railway Com.- 

pany, Mnv 6 .' 42 

Demerara Electric Co., Ltd., Anril 

15 42 

Detroit United Railv;ay. Ar>ril 15 42 
Dominion Power and Trans- 
mission Co.. February 25 . . . 40 
Laurentide Power Co., Ltd., Feb- 
ruary 18 ''O 

Mackay Companies, Februarv 18 58 
Maritime Telea-raph and Tele- 
phone Co . F°>iruary IS ... . 58 
Mexican Liaht, Power and Tram- 

wav C'O. June 24 3 

Minneapolis, St Paul and Sault 

Ste. Marie Railwav, June 24 . . 3 
Montreal Light, Heat and Power 
Company, January 28 50 



PAGE 
Montreal Telegraph Company, 

January 21 62 

New Brunswick Telephone Co., 

February 25 40 

Niagara Falls Power Co., March 

25 59 

Northern Ontario Light and 

Po.ver Company, March 25 . . 58 
Nova Scotia Tramway ,-ind t^ower 

Co., May 6 42 

Ottawa Light, Heat and Power 

Co., Ltd., March 11 41 

Porto Kico Railways Co., i^id., 

March 18 54 

Public Service Corporation oi 

Quebec, February 18 40 

Shawinig-an Water and Power 

Company, February 25 40 

Temiskaming and Northern Ont- 
ario Railway, January Zi. . . . . 61 
Trinidad Electric Co., Ltd., 

April 15 42 

West India Eleocric Co., Ltd., 

March 25 59 

Winnipeg Electric Railway Co., 

Februai-y 18 40 

Winnipeg Electric Railway Com- 
pany, February 25 22 

Mining 
Asbestos Corporation of Canada, 

March ,4 4.5 

Black Lake Asbestos and Chrome 

Co., Ltd., March 4 46 

Canadian Salt Co., March 18 . . 54 
Consolidated Mining and Smeltijig 
Company of Canada, Ltd., 

April 15 4.3 

Crow's Nest Pass Coal Co., June 

24 3 

Dome Mines Co., Ltd., May 27 . . 50 
Granby Consolidated Mining and 

Smelting Co., May 20 50 

Hillcrest Collieries, Ltd., March 

11 42 

Holhnger Consolidated Gold 

Mines, Ltd., February 25 ... . 58 
Intercolonial Coal Mining Co., 

Ltd., March 11 42 

Nipissing Mines Co., Ltd., April 29 38 

" GOVERNMENT AND MUNICIPAL 
FINANCE 

Advances to Great Britain by 
Canada, April 22 7 

Albeita Budget and Surplus, March 
^•5 36 

Alberta Municipal Assessments too 
High, April 22 20 

-A.lberta Sells Securities, January 21 56 

Alberta's Municipal Hospital Sys- 
tem, April 1 24 

Athabasca and its Financial Diifi- 
culties, March 25 48 

.\thabasca in Financial Troubles, 
March IS 44 

Bond Dealers' Association Conven- 
tion, June 17 . 1 

Bond House, Operation of a (Edi- 
torial ) , February 18 13 

Bond Market for 1921, Review of 
the, January 21 36 

Bond Market. Government and 
Municipal (See every issue). 

Bond Sales, January, February 11 24 

Pond Sales, February, March 11 . . 22 

Bond Sal°F, March, April 8 14 

Bond Sales, April, May 13 22 

Bend Sales, May, June 24 7 

Borrowing in the United States, 
Canadian, January 21 54 

Borrowing Power of a Municipality, 
How it is Arrived at. April 8 . . 32 

Brantford 1920 Finances, May 27 .. 38 



Index 



THE I\IONETARY TIMES 



January 1 to June 30. 1921 



PAGE 

Britain, Iiivestnient Relation* with, 
(Editorial), May 13 9 

British Columbia liond Sale, March 
25 . . . . 52 

Briiish Columbia Bond Sale, April 
29 36 

British Columbia budg-et, April 1 .. Zld 

British Columbia Reports Revenue 
Surplus, March 18 3- 

British Columbia Sells Bond Issue, 
June 17 r • ■ 6 

Budget, A Discreet (Editonal), 
May 13 • • 9 

Budget! for 1921-22, Dominions, 
May 13 • ^ 

Budg-ets, Careless Handling of 
Municipal, June 17 11 

Bumaby s Financial Position In.- 
proves, May 6 32 

Bumaby's Fihancial Statement, 
April 29 42 

Calgary and Tax Sale Property, 
January 21 52 

Calgary Collections and Arrears, 
February 4 48 

Calp-aiT Collections Improved, April 
8 32 

Calgary Tax Collections, January 
21 52 

Calgary Can Save Money by Depos- 
iting with Province, January 28 40 

Calgary Will Pay Sterling Deben- 
tures, January 28 42 

Cal"-ary S'.nking Fund Behind in 
Paym.mts, April 22 32 

Canora Pays Interest Arrears, 
February 11 48 

Cities, Financial Condition of Lead- 
ing Canadian, February 25 ... . 18 

Crown Lards, The future of, AnrU 
29 20 

Debenture Indebtedness and Relig- 
ion, March 25 42 

Debts, Something About National 
(Editorir.1), April 8 10 

Defaulting Municipalities, (Letter 
to Editor), March 18 S 

Defaulting Municipalities, Aid to 
April 15 32 

Defaults have been Common, Inter- 
national (Editorial), April 22 . . 10 

Dffaults, The Crop of Municiwal 
(Editorial), March 11 '. . 9 

Deposit Limit of Loan and Trust 
Companies, February 4 14 

Dominion Estimates are Tabled in 
CJommons, March 11 7 

Dominion Finances in December, 
January 21 24 

Dominion Finances in January, 
February 18 22 

Dominion Finances in February, 
March 18 24 

Dc minion Finance in March, April 
15 24 

Drmmion Government May BoriV-w 
in New York, May 13 34 

Dorunion Mortga<rc and Investment 
Assoehiation, May 13 8 

Dominion Morte'apre and Invest- 
ments Association, May 20 ... . 5 
Dominion Revenue, Source of, Feb- 
ruary 25 32 

Dominion's Budge*: for 1921-22, 
May 13 5 

Edmonton Apsessment, March 4 . . 36 
Edmonton Bond Deal Arran-jed, 

Marcch 4 40 

Er'"'""toTi Bond Deal Concluded, 

M-'vch IS 46 

Edmonton Bond Tie-up Embarrass- 
ing. January 21 56 

Edmonton's Bond Tie-up. February 

18 50 

Edmonton Negotiates for Sale of 
Bonds, May 20 44 



PAGE 
Edmonton Seeking to Tax Rents, 

J^'eoruary 11 48 

Edmonton's iiudget f.nd Tax Rate, 

May 13 32 

Eamonton's Financial Position 

Strengthened, May 27 8 

Edmonioii s lyzO 1 inances. May 20 40 
Et'monCon's L(<ss on Bond Deal, 

March 25 48 

Estimates ire Tabled in Parliament, 

March 11 7 

Fernie, B.C., has Good Report, April 

29 34 

i inancial Condition of Ler.ding 

Canadian Cities, February 25 . . 18 
Pinancing in the West Proved 
Disappointment, Local, February 

4 22 

Government and Municipal Bond 

Market. (See every issue) 
Government Housing Lotn, Pre poses 

Huge, February 25 ... . 36 

Great Bi-itain, Advances co, by 

Canada, April 22 7 

Great Britain's Financial Outlook 

(Editorial), May 27 9 

HaUeybury Defaults on Bond 

Interest, February 11 48 

Halifax Assessment Exemptions, 

March 11 32 

Housin;- Loan Proposes Huge Gov- 
ernment, February 25 36 

Imperial Navy, Should Canada 

Share in the Cost, April 29 ... . 5 
Income Tax Effects in Ontario, 

March 25 48 

Income Tax, Intricacies of the, April 

15 36 

Income Tax, Life Insurance and the 

(Editorial), May 20 10 

Income Tax Payments (Editorial), 

May 6 3 

Interest in New York Funds, 

Collecting, April 22 26 

Interest Rates on the Downward 

Trend, Bond, February 11.... 50 
International Dffaults have been 

Common (Editorial), April 22 .. 10 
Investment Houses Expect Improv- 
ed Buying, May € 12 

Investments Association, Dominion 

Mortgage, May 20 5 

Irrigation Bonds, February 25 ... . 50 
Irrigation Bonds not Sold, January 

14 50 

Lethbridgf Northern Irrigation- 

Bond Issve, May 27 44 

Lethbridgc Northern Irrigation 

Bonds, February ?5 50 

Lethbridgc Northern Irriga'fon 

Bonds, April 1 34 

Loan anf' Trust Companies, Deposit 

Limit of, February 4 14 

T.oici Roiid Selling, February 4 . . 50 
Local Fin Jincing Proved Disappoint- 
ment, February 4 22 

Manitoba Bonds Sold in New York, 

March 11 36 

Manitoba Budjret, March 25 8 

Manitoba may Tax Incorporated 

Companies, March 18 8 

Manitoba Sells Securities, January 

14 52 

Mpn'to'ia Sells Two Bond Issues, 

May 27 . . . . . . . . 44 

Manitoba's Si'.i-plus, May IS 14 

Manitoba Telephones Deficit, Janu- 
ary 28 S 

Mellville Bondholders Impose Severe 

Term?. Anril29 ... 32 

Merchants Marino Res^ilts in 1920, 

April 1 .-.• TT . . . . . • S 

Montreal and tli-? .Annexation Prob- 
lem, February 4 48 

Montreal Finances in 1920, June 24 10 



PAGE 

Mintrcal "Mi-tropolitan" Commis- 
sion Controversy, January 21 . 52 
Mcntreal "Metropolitan" Comm's- 
sion. Powers of, Januai-y 14 . . . 48 

Montreal Metropolitan i,ommission, 
April 8 32 

Moose Jaw Assessment, i'eoruary 

18 48 

Moose Jaw's Borrowing Power, 
April 8 32 

.Morrii Bros. Failure (Editorial), 
February 18 10 

.Mortgage and Investment Associa- 
tion Meets, Dominion, May 13 . . S 

Mortgage and Investments Associa- 
tion, Dominion, May 20 5 

Mortgage on Laml Exdng-uished by 
Tax Sale, April 29 26 

Municipal Accounting and Munici- 
pal Finance, March 18 18 

Municinal Assessments, Alberta too 
High, April 22 20 

Municipal A?sociation, Sasl-.atche- 
wan Rural, March 25 14 

Municipal Bond Market, Govern- 
ment and. (See every issue). 

Municipal Budgets, Careless Hand- 
ling of, June 17 11 

Municipal l>erauhs. Crop of, (Edi- 
torial), March 11 9 

Municipal Defaults in Saskatche- 
wan, April 1 . . . 32 

Municipal Defaults, Proce lure with, 
June 17 5 

Municipal Exemptions Prove 
Burdensome, June 24 5 

Municipal Finance. (See every 
issue) . 

Municipal Hospital System in 
Alberta, April 1 24 

Municipalities, Aid to Defaulting, 
April 15 32 

Municipalities, Defaulting (Letter 
to Editor), March 18 » 

Municipalities' Difficulties (Editor- 
ial), June 24 4 

Municipalities, Financial Conditio i 
of Canadian, Febiniary 25 . . . IS 

Municipalities Suffer by Bonusing 
Industry (Editorial). May 6 .. IC 

Municipalities, Will Hold no Respon- 
sibilit" for Saskatchewan, Janu- 
ary 23 , 40 

Municipal Legislation Featured 
Quebec Session, April 1 18 

Municipal Railways and Provincial 
Con<ti-ol (Eiitoi-ial), April 29 .. 9 

National Debts, Something About 
(Editorial) , April 8 10 

National Revenue and Expenditure, 
Aprils 3 

New Brnnsvrck Funds Railway 
r>pbK May 6 24 

New Brunswick has Current Deficit, 
Februarv 4 40 

Newfoundland's Expenditures are 
to be Re<luced, June 24 7 

Newfoundland Makes Loan in U. S., 
May 20 42 

Nevs^ouiv-Jl^nd's Temporary Borr- 
cvring^ Hea^/y, May 20 52 

New Yoik Frnf's, Collecting Inter- 
est in, April 22 .......... - 2>5 

Ncra Scotia RpveTiv.e and Expendi- 
ture. April 22 42 

Nova Sco+ia's Budget and Finances, 
May 13 3ii 

Nova Suot'i Sells Bonds. .-^ pril 1 . ^(^ 

Oak B'jv Finances in 1920. Febru- 
ary 11 .- 48 

O'k Bav Tninroves Financial Posi- 
tion. Arril 1 32 

Ontario Budset fcr 1921, February 
18 3^ 

Ontario Hydro Bonds, June 24 . . t> 



January 1 to June 30, 1921 



THE MONETARY TIMES 



Index 



PAGE 

Ontario Losinjr Succession Dues, 
March IS . . ', IG 

Ontario Sells Bonds, January '2S . . 42 

Ontuiio Tre;\surer Estimates Sur- 
plus, February 18 30 

Ontario Treasury Bills, Another 
Issue of, April 8 3tJ 

Ontario Treasury Bills Sold, April 
1 2& 

Ottawa Business and Income Assess- 
ment, February 4 48 

Ottawa CalHns: Shortly for Loan, 
June 24 ... P 

Ottawa Municipal Hydro Electric 
Results, March 4 36 

Paris Bonds Oflered Here, January 
21 ". 54 

Paris Loan Here, Another, Januarv 
14 ■. 62 

Penticton, B. C, Finances Improve, 
February 4 48 

PeterbOiOUg'h Debt Increased Large- 
ly, May 6 32 

Point Grey Finances, March 11 . . 32 

Prince Edward Island Budget, 
April 22 22 

Problems ot Municipalities, Finan- 
cial, June 24 1 

Quebec Province, Nearly a Surplus 
for, February 4 38 

Quebec Revenue and Expenditure, 
April 22 43 

Quebec Roman Catholic School 
Debentrues, March 25 ....... . 52 

Red Deer Annual Report, March 4 36 

Regina Finances in 1920, April 8 . . 32 

Regdna-Moose Jaw Water District, 
May 20 40 

Religion, Debenture Indebtedness 
and, March 25 42 

Rent Taxation, Edmonton Seeking, 
February 11 48 

Revenue ard Expenditure, National, 
Aprils 9 

Revenue, Source of Dominion, Feb- 
niary 2o 32 



HACiK 

Roumanian Cedit, April 1 8 

Rural Muncipal Association, Saska- 
tchewan, March 25 14 

Saskatchewan iionds Sold, January 
28 .. 44 

Saskatchev/an Comparative Tax 
Rates, April 29 32 

Saskatcnevifan Legislation Moderate 
in Character, January 21 5 

Saskatchewan Local Government 
Board, June 17 9 

Sasaktchewan Municipalities, Finan- 
cial Problems of, June 24 ... . 1 

Saskatchewan Municipal Defaults, 
April 1 32 

Saskatchewan Municipalities, prov- 
ince will Hold no Responsibility 
for, January 28 40 

jsEskatchewan Rural Municipal 
Association, March 25 14 

Saskatoon Assessment, January 28 40 

Saskatoon's Position, May 13 ... . 41 

fcherbrooke Hopes to Profit on 
Exchange, February 18 48 

Single Tax has Many Deficiencies, 
June 17 2 

South Vancouver Recovering, April 
1 33 

St. Lambert 'n Difficulties, Febru- 
ary IS , 48 

St. John Debt Increased, April 8 . . 32 

Swift Current In Financial Difficul- 
ties, February 25 48 

Taber Irrigation District has no 
Tax Delinquents, February 25 . . 48 

Taxation Now bein^ Tested, War- 
time, March 25 5 

Taxes on Corporations (Editorial), 
June 24 4 

Tax Exemptions Prove Burdensome. 
Municipal, June 24 5 

Tax on Sales, Turnover Tax and 
Extended, May 6 5 

Tax Rates of Canadian Municinali- 
ties, May 27 '. . . 40 



r,- i'AGjj 

Tax Rates, Saskatchewan Compaia- 
tive, April 29 32 

Tax Rates,, Weoiein Cities have 
High, ,4.pril 22 e 

Tax aaic, mortgage on Land Extin- 
guished by, April 29 26 

Toronto Assessment, oainarj' 14 . . no 

Toronto Assessment, February 18 48 

Toronto Exemption i:!y-la>v Delayed, 
January 28 40 

Transcona Requii-es Administrator, 
March 18 44. 

Turnover Tax and an Extendeu T<ix 
on. Sales, May 6 ,.,,._,... . 5 

Turnover Tax not Desirable (Edi- 
torial), May 6 y 

Turnover Tax, The Proposed (Edi- 
torial), AprU 1 9 

United States, Borrowing in the, 
will be Heavy, January 21 ... . 56 

United States, Dominion Govern- 
ment ;nay Borrow Tl ere. May 13 34 

Utilities, i mancihg ot Public, April 
8 22 

Vancouver Assessment, February 4 48 

Vancouver Faced with Deficit, 
March 4 S6 

Vancouver Finances, April 22 ... . 32 

Victoria's Financial Position, May 
^.13 .. 32 

Vrctory Lean Committee's Work, 
AprO 8 7 

War Loan Committee's Work, Aniil 
8 '.. 7 

War-timo Taxation now being 
Tested, March 25 5 

Western Cities have High Tax 
Rates, April 22 6 

Winnipeg Bond Issue, Fcbvuary 4 52 

Winnipeg Hydro Bonds Taken Up, 
January 28 42 

Winnipeg Refinancing in Next Six 
Years, January 14 4'' 

Winnipeg- Sinking Fund Report, 
February 23 48 

Wiiin'peg Tax Rates and Esti- 
mates, Marc^ 18 44 



The Monetary Times 
Printing Company 

of Canada, Limited 



The Canadian F.nsincer" 



Trade Review and Insurance Chronicle 

of Canada 



Established ISl?') 



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JAS. J. SALMOND 
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AsBistant General Manager 

JOSEPH BLACK 
Secretary 

W. A. McKAGUE 
Editor 



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The Year 1920 — Retrospect and Prospect 

Turning Point in Price Movement Was Feature of Year— Bond Prices 
Reached Low Level, While Stocks Rose and Fell— Bank Loans Increase, 
While Deposits Fail to Respond —Insurance Business Continues to Grow 



WHEN the armistice was signed Canada stopped and con- 
sidexed. This was but a temporary break in the period 
of expansion which had commenced in 1916, and the year 1919 
found business breaking all war-time records. A real turn in 
the tide of progress took place in the year just closed. Prices 
are unmistakably coming down, business is contracting, labor 
is more plentiful and more efficient, and speculation is on the 
decrease. The year 1920 marks a turning point in Canada's 
history. 

It is remarkable how easily the transition, so far as it 
has gone, has been brought about. There have been many 
bears in the business world, and these have offset the influence 
of business leaders who expected a prolonged period of high 
prices and prosperity. Canada has been one of the first to 
feel the effects of the downward movement, because she is a 
great producer of the raw materials which have been among 
the first commodities to suffer price reductions. 

Throughout the whole of the year individual buying has 
been maintained fairly well. Even the heavy luxui*y taxes 
imposed by the Dominion government last June have failed to 
materially affect the volume of business as a whole. In fact, 
it is probable that a movement towards lower prices, coupled 
with a maintenance of the pi-esent wage scales, will place wage 
earners in a position to buy more than at any time during the 
past few years. 

Nevertheless the summer and autumn brought a rapid 
contraction in business. This had been anticipated and in 
part brought about by the banks earlier in their year, when 
they set about bringing the period of credit expansion to a 
close. As a guide to business policy this attitude on the 
part of the banks was more effective than the mere reduction 
in loans which was achieved; in fact, October was the first 
month in which current loans showed a reduction, although 
earlier reductions in call loans indicated that speculation 
was the first field to which the screws were applied. 

Primary Production 

Primary production has again come to the assistance of 
this country. The war-time record of manufacturing industry 
was remarkable, but it at the same time is being more and 



more felt that the future of this country rests in producing raw 
materials and carrying them to shipping points, working them 
in some cases through the earlier process of manufacture. 
Natural resources are yearly becoming scarcer, and continu- 
ally enhanced prices are assured for products of this class. 

The acreages sown to grain crops were less this year than 
last, but higher yields brought the production to a larger total. 
The number of acres sown to wheat was 17,186,300, compared 
with 19,295,968 in 1919; 15,555,400 acres were sown to oats, 
compared with 14,952,114 in 1919. Acreages sown to other 
grains were as follows: Barley, 2,588,000, a decrease of 2 per 
cent.; rye, 729,500, a decrease of 3 per cent.; peas, 2,588,000, a 
decrease of 3 per cent.; mixed grains, 909,350, an increase of 
1 per cent.; hay and clover, 10,409,150, a decrease of 2 per 
cent.; alfalfa, 229,300, an increase of 1 per cent,; potatoes, 
819,000, about the same as in 1919. 

The Northwest Grain Dealers' Association have estimated 
the production for the three prairie provinces as follows: — 
Wheat, 14,026,000 acres at 15.2 bu., 213,245,000 bu.; oats, 10,- 
973,500 acres at 32.8 bu., 359,000,000 bu.; barley, 2,108,000 
acres at 23.5 bu., 49,538,000 bu.; rye, 237,500 acres at 16 bu., 
4,400,000 bu.; flax, 1,181,000 acres at 7.1 bu., 8,385,000 bu. 

Lumbering was rather less active in 1920, as the prices 
were lower. The fisheries on both coasts experienced a good 
year. The mines were also working practically to capacity 
and had less difficulty as regards labor supply. 

Transportation 

The railways passed one of their greatest ciises in 1920. 
Following a further wage award substantial increases in rates 
were granted, though not without strong objections from agri- 
cultural and commercial interests. The situation is compli- 
cated in Canada by reason of the difference in the financial 
condition of the two great railways. The Canadian Pacific is 
strong, and no doubt could have continued to render a fair ser- 
vice at the old rates. The Canadian National, on the other 
hand, is not yet in an independent position, and it is not antici- 
pated that much will be left by way of return to the Dominion 
government on the investment after operation expenses and 
depreciation are met. The soundest argument presented 



THE MONETARY TIMES 



Volume 66 



against the rate increase was to the effect that an effort should 
be made to make the Canadian National pay only after its 
capitalization had been written down to a niore moderate 
level. 

In the field of shipping the supply of space this year over- 
took the demand. There is a tendency towards keener compe- 
tition and lower rates, for the buildinR- of new ghips has now 
more than overtaken the ravages of the war. The Dominion 
government continued its construction programme and re- 
ported good financial results for 1919. Shis recently con- 
structed have been at an excessive cost, however, and ship- 
ping authorities feel that many of them will not pay in future 

Higher Rates for Public Utilities 

The outlook for public utilities has greatly improved; the 
necessity for rates commensurate with the new level of opera- 
tion costs is becoming impressed on the public. Many of the 
street railways in Canadian cities secured increases this year. 
The Bell Telephone Company made a successful application 
for higher rates. Gas and electric light and power companies 
all have felt the pressure of high costs, but the year 1920 
found their position .as a whole improved. 

At the same time there is a growing feeling in favor of 
public ownership. The feeling of hostility towards all large 
corporations, engendered as a result of the high prices and 
lai'ge profits of the war period, will no doubt outlive any 
justification which did exist for such feeling. The acquisition 
and amalgamation of the Canadian Northern, Grand Trunk 
and Grand Trunk Pacific Railways by the Dominion govern- 
ment, the proposal for Ontario to purchase the hydro radials 
of the Dominion government and the power assets of the 
Mackenzie interests are recent examples of the movement 
in the government field, while practically every municipality 
which do'es not now ovim its street railway is planning to do 
so, and some are venturing into the operation of other 
services. 

Manufactures 

The manufacturing industries of Canada have kept up 
their record, but during the past year they have felt more 
and more keenly the vigorous free-trade movement set up by 
the organized farmers in Canada. Efforts made to combat 
this movement have, to a large degree, been successful; they 
have at least transformed the free trade into a tariff reduc- 
tion movement, and have brought home to the city populations 
the fact that their prosperity is dependent upon the mainte- 
nance of a tariff wall. A commission to investigate the tar- 
iff was appointed by the Dominion government, and in Sep- 
tember and October evidence was received at the more import- 
ant cities throughout Canada. The findings of this commis- 
sion have not as yet been announced, but it is an accepted 
view that a commission composed of three members of a pro- 
tectionist government will scarcely advocate any appreciable 
reduction. 

Tendency of Banks to Contract 

Developments in the sphere of banking were of a mixed 
character. The movement of expansion exte.ided through the 
early months, but the banks made a concerted effort to bring 
about a contraction of credit. This action was taken in antici- 
pation of price reductions, and was beneficial to merchants, 
who were still inclined to maintain hea%'^' stocks of goods on 
hand. Reductions in credits first took place in the call money 
market, the maximum loaned at call in Canada having been 
reached in January, when the figure was .'6132,015,334. By 
the end of June it had been reduced to $115,360,894. Current 
loans continued steadily upwards, however, the total in Can- 
ada at the end of July being $1,377,276,853, compared with 
.■^1,226,962,963 at the end of January, 1920, and with $1,014,- 
■ '87,206 at the end of July, 1919. Savings deposits showed a 
teady increase, though not as rapid as in 1919, while the level 
cf demand deposits was higher than in 1919. 

Good Year for Insurance 

Unquestionably 1920 was one of the best years in the his- 
tory of insurance in Canada. Life business continued to ex- 
perience the expansion which showed such phenomenal results 
for 1919, but it is not expected that the increase in business 



written in 1920 will be so great. There was no epidemic such 
as took place in 1918, and reappeared in lesser degree in 1919, 
to threaten the companies' surplus. The rise in property 
values brought about a substantial increase in the volume of 
fire insurance in force, and fire losses were about the same as 
in 1-919, which was regarded as a fair year. There was 
growth in all branches of casualty insurance, further particu- 
lars of the experiences in which will be found in the series of 
reviews in the insurance section of this number. 

Loan and Trust Business 

There was no new development in the loan and trust field. 
The experience of the former as regards repayments of mort- 
gage loans was good, as the general good crops in the west 
enabled the farmers in many cases to bring their payments 
up to date. There were sections, of course, in which crops 
were not so good this year, and further extensions had to be 
made. Funds for new borrowings were not plentiful, as the 
companies on the one hand were more careful in anticipation 
of lower prices for farm produce, and on the other hand were 
tempted to invest still more of their funds in bonds, which 
were obtainable at exceptionally low prices. 

The trust companies again experienced an increased de- 
mand for their services. Corporate administration of estates 
is continually becoming more popular in Canada because of 
the undoubted advantages which it offers. One notable fea- 
ture of the year was the greatly increased demand for safety 
deposit boxes, due to the more widespread holding of securi- 
ties. 

The Bond Market 

The investment field witnessed some rather unexpected 
developments. Government and municipal bonds and other 
first-class securities sank to still lower levels. In spite of 
this, new issues were numerous and the low prices secured im- 
pose heavy capital charges on the provinces and municipali- 
ties. There was no Dominion government loan for the first 
year since 1915, but this important factor did not appear to 
strengthen the market to any appreciable extent. 

The control of the Victory bond market resumed in 
January by the Dominion government, and the embargo on 
the impoi't of securities which accompanied it, were two im- 
portant factors in the investment field. Neither was suc- 
cessful in attaining the desired object, which was to prevent 
the decline in war bond prices and in security prices as a 
whole. The market showed a little strength towards the 
end of November, however, and control was removed. 

The Stock Market 

Corporation bonds moved downward in sympathy with 
the security market in general. The greatest collapse took 
place in the stock market, however, which reflects in greater- 
degree the trend of business. The fall in the prices of sugar, 
rubber, steel and other leading commodities was followed 
and in some cases anticipated by the price movements of 
stock specialties. Liquidation of stocks was encouraged by 
the pressure of the banks. 

In the face of these conditions the number of security 
issues was exceptionally large. The lists given elsewhere in 
this issue show that the provincial governments were very 
heavy borrowers, and while the smaller municipalities 
generally kept out of the market, ■ the larger cities also 
borrowed freely. The high rates prevailing for New York 
exchange resulted in an unusual proportion of the new loans 
being placed there, heavy obligations for many years to 
come being piled up in this way. Corporate financing was 
also active, especially in speculative stocks. Theatre issues 
were especially numerous, and considerable interest was also 
evinced in mining and oil issues. 

There has, therefore, been a good deal accomplished 
during the past year in the way of restoring business to a 
more healthy and normal state. The process of deflation is 
bound to bring its difficulties in the way of failures, contrac- 
tion of profits and readjustment of. wages, but there is good 
evidence that the process is being brought about gradually 
and the danger of collapse or panic is thereby minimized. 



January 7, 1921 



THE MONETARY TIMES 



Business Indices Reflect Contraction of Business 



Peak of Business Activity, As Reflected By Bank Clearings, New Building. Failures, 
and Other Figures, Was Reached at Beginning of 1920 — Building Inactive, While 
Failures Increase — Falling Stock Prices Anticipate Further Business Contraction 



CANADIAN business reached its greatest activity in 
January, 1920, according to an average of commonly ac- 
cepted indices, compiled by Babson's Statistical Organiza- 
tion, Wellesley Hills, Mass., and grapliically presented be- 
low. The black areas are formed by combining and plotting 
figures on Bank Clearings, New Building, Failures, Com- 
modity Prices, Railroad Earnings, Security Prices, Ratio of 
Bank Cash to Liabilities, and Money Rates — subjects whicli, 
taken together, make a reliable measure of general busi- 
ness. The X-Y line represents the average gain or growth 
in business. In locating the X-Y line we have assumed that 
the law of equal action and reaction applies to business and 



gi-owth of the country, with a more rapid increase in 1007, a 
year of crisis. The year 1914 again brought depression, 
with many failures up to the middle of 1915, when war-time 
expansion commenced. Thereafter the number of failures 
fell to a very low point in 1918 and again in 1919. The 
past six months have found them growing rapidly. 

Building Operations 

Building was very inactive during the war years. There 
was a slight revival in 1918, due to the great scarcity of 
houses and business plants which was making itself felt; 
a substantial revival took place in the summer of 1919, and 



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economic phenon.ena just as it does to mechanics, chemistry, 
medicine and other sciences. In other words, for every de- 
gi'ee of over-expansion in business a corresponding rest 
period or depression must be experienced. The X-Y line, 
therefore, is drawn to make the two areas of each cycle equal, 
its trend being detei-mined in accordance with such statistics 
of growth as are available. 

Two Cycles Completed 

There are now two complete cycles on the plot. The 
first (Areas B and C) runs from the end of 1905 to 1908. 
The second (D and E) runs from 1908 to the latter part 
of 1915. For the past five years a large area of business 
expansion has been developing, which indicates that a re- 
action in trade may normally be expected. 

The red line represents the monthly average prices of 
ten stocks. The solid black line shows failure liabilities; 
the dotted black line, new building. The figures for new 
building and commercial failures are plotted quarterly. 

The movement of failures, it will be noticed, is very 
irregular. It seems usually to be higher at the end of each 
year, because that is the end of an accounting and settling 
period and also because business is usually quiter at that 
season in Canada. There was a gradual increase, however, 
from 1904 to 1914, which was not out of proportion to the 



in the summer of 1920 operations again approached their 
pre-war proportions, followed by the usual autumn decline, 

Stock prices are the most sensitive of all business in- 
dicators, anticipating the others by several months, and these 
do not hold out any hope of revival. The high levels of 1916 
were followed by a long decline, in anticipation of the post- 
war depression which was bound to come. In 1918 and 1919, 
however, the reconstruction activity was anticipated by an 
upward movement, which culminated in November, 1919, 
but after which a real fall did not take place until the 
third and fourth months of 1920. 

The average trend of business, represented by the black 
area, indicates that the second half of the cycle commenc- 
ing in 1916 has set in, and that a fairly long period of 
depression may be looked for. 

In the developments of the next few years, therefore, 
an increase in the number of failures and reductions in 
profits, as reflected by lower stock prices, may be looked for. 
Nor can the volume of building be expected to increase very 
much until such time as costs have been reduced to a level 
commensurate with market values. Bank clearings, railroad 
earnings, loans and trade figures should show reductions in 
accordance with the condition of business as a whole. Rates 
for money, on the other hand, should before long show an 
easier tendency. 



THE MONETARY TIMES 



Volume 66 



More Stable Policy Needed for Welfare of Canada 

Slump in Prices is Test of Country's Industries— Europe's Need Does Not Help 
Business Here— What Measure of Tariff Protection Necessary Could Be Scien- 
tifically Ascertained — National Debt and the Resulting Burden on Industry 

By W. W. SWANSON, Ph.D. 
Professor of Political Economy, University of Saskatchewan 



IT was pointed out in the early months of the war by Prof. 
S. Patten of the University of Pennsylvania that a sudden 
decline in prices after the cessation of hostilities might easily 
wipe out all the war profits of the republic and cause hard- 
ship and suffering throughout the world unparalleled in mod- 
ern economic history. While it is quite true that natural 
resources, farms, factories and other concrete economic goods 
would remain after such a collapse of prices, nevertheless the 
actual loss of wealth following a steep fall in market values 
would adversely affect the entire business life of the nation. 
It is of fundamental importance to speed up production in 
Canada, but it is equally important to protect prices as far as 
may be by refusing to give way to panic and the forces that 
make for business depression. 

It is admitted that Canada cannot escape the effects of 
world-wide economic conditions, but much can be done to 
maintain confidence in what is fundamentally sound in the 
nation's economic life. Only a few years since trust-baiting 
was a favorite pastime of demagogues and their followers in 
the United States notably, as well as in the Dominion; but the 
sober sense of the people has taught them that in the long 
run business, big or small, must rest upon the good-will and 
confidence of the people or it cannot endure. And what is 
true of business in general is doubly true of the great basic 
industries within the confines of our common country. The 
time is opportune to make an earnest effort to co-ordinate the 
interests and activities of the manufacturers, the agricultur- 
ists and the several governments concerned to the end that 
good-will may displace mutual suspicion and conflict. While 
there always will be large issues of national economic import- 
ance upon which opinion will be divided, there is much common 
ground that can be cultivated for the common good. Confi- 
dence in the integrity and fairness of men who control indus- 
tries and governments is the sine qua non of national stability 
and progress. 

The West's Grievances 

Rightly or wrongly, the agricultural West has felt that 
its industrial progress has been liinited and thwarted by the 
short-sightedness and selfishness of the manufacturing and 
financial East. The fact is there, whatever its causes, and it 
will do no good to speak of the sacrifices of the east in railway 
building and the like for the development of the prairies. The 
people of the west are persuaded that they are carrying their 
fair share and more of the common burden of exploiting and 
developing the natural resources of the nation. The various 
provincial governments have, on the whole, given sympathetic 
consideration to the conserving of the agricultural interests of 
the people, but in general the Dominion's national economic 
policy has placed the emphasis to too great an extent upon 
manufacturing and to too small a degree upon agriculture. 
As an excuse it is asserted in certain quarters that a gro\\nng 
population can be provided for only by expanding industry and 
commerce — that the amount of food required from the farm 
is limited in amount, while the consumption of manufactured 
goods has no definite limits. This loses sight entirely of the 
significance of the relation of food supplies to an expanding 
population and an expanding industrial environment. 

In his "Economic Consequences of the Peace" J. M,. 
Keynes draws attention to the fact that as late as 1890 Europe 
had a population more than three times as great as the entire 
population of tlie North and South American continents. Since 
that time the populations of the new world and the old have 
vastly increased. Before the war Russia was expanding at 
the rate of 2,000,000 annually, Germany at the rate of 850,000, 



and Austria-Hungary at 500,000. Europe was making vast 
gains in population each year while on this side of the water 
the increase in numbers was equally rapid. The net result 
was a relative dearth of foodstuffs throughout the western 
world. ^ 

The Cost of Food 

This growing shortage of food supplies was evidenced by 
the rising prices of foodstuffs everywhere. Mr. Keynes 
reaches the conclusion that the economic law of diminishing 
returns was at length making its effects felt ■ — that popula- 
tion was pressing hard upon the means of subsistence. It 
was in 1798 that Thomas Malthus formulated and presented 
to the public his famous hypothesis of the relation of food sup- 
plies to population; but the opening up of new areas of supply 
during the nineteenth century caused his theories to fall into 
discredit, when they were not forgotten. Once more, however, 
the relation of agriculture to industry becomes of surpassing 
importance, particularly in view of the fact that the United 
States is rapidly approaching the point where it will be 
rather an importer than an exporter of wheat and other food 
commodities. 

The bearing of all this upon the present agricultural situa- 
tion in Canada is patent. Upon the prairies there is discon- 
tent among both grain growers and stock producers with past 
economic policies and present prices. The market for farm 
products may be extensive and constantly expanding because 
of the growing necessities of the world, but all that avails 
nothing if the agriculturist cannot make a living commen- 
surate with the efforts and sacrifices undergone. Canada's 
greatest agricultural province, Saskatchewan, already begins 
to show the effects of the narrowing of the gap between mar- 
ket prices and costs of production. According to the figures 
recently furnished to the legislature by the Hon. Chas. 
Dunning, that province has seen more than one million acres 
go out of cultivation in 1920. The total area under cultivation 
in 1919 was 2.3,585,000, whereas the figures for 1920' are only 
22,549,000. The wheat acreage for 1920 showed a decrease of 
520,000 acres as compared with the previous year. The yield 
per acre had increased from 8.5 to 11.2, the total yield of wheat 
for 1920 being estimated at 113,125,000 bushels. Both the 
yield per acre and the area under cultivation of oats are larger 
for 1920 than for the previous year, the total yield of this 
grain being placed at 141,549,000 bushels. There was an in- 
crease of 27,000 acres sown to barley, and of 210,000 acres 
sown to flax, while there was a falling off of 18,000 acres sown 
to rye. There was a decrease of summer-fallow from 4,395,- 
000 in 1919 to 3,751,000 in 1920, while the new breaking in 
1920 amounted to only 549,000 acres. In cattle, horses and 
swine there has been a heavy reduction in the numbers held, 
sheep alone showing an increase. The price factor and the 
high cost of production have been the chief reasons for this 
serious falling off of agricultural production. The decline in 
prices brings with it an enormous decline also in the purchas- 
ing power of the west. 

Raw Materials and Manufactured Goods 

It is not forgotten that the falling off of market prices is 
a phenomenon that characterizes the production of raw ma- 
terials everywhere — from lead and zinc, copper and silver, to 
sulphur, tea, coffee, cotton, raw silk and rice. Nevertheless, it 
avails our fai-mers little to be assured that they are not the 
sole sufferers in the liquidation of values. The simple fact is 
that if too wide a gap is fixed between what the producers of 
basic raw materials bring to market and what they must buy 
for family purposes and to take care of the processes of pro- 



January 



THE MONETARY TIMES 



duction, the fundamental industries will stagnate. This would 
be fatal not only for those territories and countries still in the 
pioneer stage of development, but for the secondary industries 
depending upon them for support, for markets, and for buying 
power, and for raw materials as well. Steps should be taken, 
therefore, not only to aid the agricultural community to reduce 
its costs of production but to alter its psychological attitude to 
the buying of essential products. The markets of the west 
and the export trade are vital to the manufacturing east, both 
in Canada and the United States as well. 

What Industries Need the Tariff 

The psychology in the situation rests upon the economic 
factors involved. Chief among these economic factors are the 
tariff, finance and railway rates. With respect to the tariff it 
will no longer suffice merely to ask critics of protection to 
name specifically those industries that can exist without arti- 
ficial aid, as Sir Henry Drayton asked Mr. Wood, president of 
the United Farmers of Alberta, at Calgary. There ought to 
be a scientific study of the tariff in Canada, similar to that 
undertaken in the United States for the tariff commission by 
Professor Taussig of Harvard and his staff of able assistants. 
Such an examination could determine whether our manufac- 
turers of agricultural implements and farm machinery, if 
granted customs-free raw materials, are actually in a position 
to give up the advantages of a protective tariff. Moreover, it 
could also be decided whtit are the so-called "key" industries 
requiring protection to render the Dominion secure in war and 
peace, and which are the "luxury" industries for which the na- 
tion is paying too great a price. Finally, the complex and 
difficult problem of the relation of protection to necessary pub- 
lic revenues could be at least tentatively solved. Such a scien- 
tific study, undertaken by experts and representatives of all 
classes, would accomplish something enduringly good, whereas 
the present tariff inqury gets the nation nowhere. It is worth 
while emphasizing these factors, for beyond doubt the decline 
in the demand, at present, for manufactured products is due 
in no inconsiderable measure to the belief on the part of the 
agricultural producers of the west that their economic interests 
have been sacrificed. 

Need for the Wheat Board 

The disclosure of facts under scientific analysis will do 
much to allay suspicion and make for the building up of good- 
will among the great economic groups in Canada. Nothing is 
so unsettling to business as a state of unstable equilibrium 
occasioned by mutual distrust. What is required, among other 
things, is the working out of a definite national economic pol- 
icy that will give due weight to the interests of the agricul- 
tural community. The wheat board, for example, should be 
reconstituted, not perhaps to assume the responsibility of actu- 
ally marketing the farmers' big cash crop, but for devising 
ways and means to assist in the marketing of that crop to the 
best advantage. Some such organization is essential, not 
merely for the marketing of wheat, but for the furnishing of 
accurate information with respect to markets for other farm 
products. Such a body should also institute studies concern- 
ing costs of production, distribution and final saje of agricul- 
tural commodities. With such data available something 
worth while could be attempted to promote the best interests 
of Canadian agriculture. A case in point is the purchase of 
the entire output of New Zealand's butter by the British gov- 
ernment, with a consequent decline in the domestic and export 
prices of the Canadian commodity. The dairy industry is an 
expanding one in the west and becoming of great economic im- 
portance in agricultural operations. Balanced farming is not 
only economically sound but of vital importance to the stabil- 
izing of agriculture; but it is discouraging to produce the 
goods only to find the markets blocked. 

Debt and Taxes Are Heavy 

On the other hand, it is equally essential to find steady and 
profitable employment for factory operatives and those en- 
gaged in commercial pursuits, as well as to discover markets 
for the output of their labor. It has often been stated, but it 
requires constant repetition, that the Dominion is in need of a 
settled economic and political policy that will conserve the 



interests of all classes of producers. The net debt of the na- 
tion is, in round numbers, $2,225,000,000, and is still growing. 
True, revenue is also increasing in a way that will take care 
of fixed charges and current expenses, but the greater part of 
that revenue — customs, excise and war taxes — is derived 
from taxation and represents a heavy burden upon industry. 
Among the nations of the world Canada is in a strong finan- 
cial condition, but the finest statesmanship and the greatest 
efforts on the part of all will be essential to keep it there. 
During the past twelve months the external trade of the nation 
has amounted to more than $2,500,000,000, the imports being 
in excess of exports by approximately $125,000,000. Imports 
from the United States are dangerously in excess of exports, 
and every effort should be made to widen our export markets 
in the Republic and in Europe. 

To do so will involve a heavy reduction in costs of produc- 
tion and selling prices. Until Europe is economically rehabili- 
tated prices will not be materially hardened by extensive sales 
there. On the other hand, the plant equipment of the Domin- 
ion, consisting of field, mine, factory, railway and shop, is 
capable of far greater production than in the days preceding 
the war. A great deal of necessary woi-k, with restored con- 
fidence, lies ready at hand in Canada in "deferred mainte- 
nance" — in the consti-uction of buildings, and the production 
of railway and other equipment halted by the war. There is 
an immense amount of construction that ought to be immedi- 
ately undertaken by the federal and provincial governments, 
in the building of public works, the St. Lawrence deep water- 
way system, and the making of roads. Such economic under- 
takings would stimulate the demand for the output of fac- 
tories and aid in keeping the wheels of industry revolving. To 
those who insist upon public economy it may be replied that a 
collapse of Canada's industrial system, with consequent unem- 
ployment, would in the end place far heavier burdens upon 
the people, industry and the government than any additional 
tribute of taxation now to take care of interest upon public 
capital expenditures. 

Demand Limited by Purchasing Power 

It must be squarely recognized that owners can operate 
plants only if costs of production are fnet, including a fair 
retui-n on capital. True, the European nations are in need of 
goods, but that need can be translated into economic demand 
only as it is backed by purchasing power. The old analogy 
based upon civil war conditions and following prosperity does 
not hold good to-day for the simple reason thjit the civil war 
struggle was a domestic struggle and confined to a single ter- 
ritory, permitting the United States to depend upon Great 
Britain and other wealthy nations for financial aid. Since the 
armistice the United Kingdom has labored hard to revive the 
trade of the continent, but the task is too stupendous for the 
efforts of one nation alone. The action of the United States 
in refunding only $100,000,000 of the Anglo-French loan fur- 
ther depressed European exchange and made it more difficult 
for the British and French to purchase the goods produced on 
this continent. As a first and essential step in increasing the 
buying power of Europeans the United States must come to 
the financial support of those war-stricken nations. 

Danger of Unemployment 

The great danger threatening the economic life of 
Canada and the United States is that under-employment 
may develop, or unemployment, with resultant low wages, 
or their lack, and a general breakdown of the stan- 
dard of living, and hence of the buying power of the 
masses. During a period of falling prices, also, there is little 
or no incentive for the manufacturer to extend his plant and 
engage in new enterprises. The factor in the situation, there- 
fore, making for business stability is the discovery of new 
markets for the output of our factories and the prevention of a 
sudden collapse of prices. The laws of the United States have 
been adapted to meet changed conditions, and now permit and 
encourage export associations of American manufacturers. It 
is highly expedient that Canadian business be fostered and 
developed by similar measures, notably by export associations 
and the sending of able agents abroad to broaden export trade 
with the United States. For under the new price conditions a 
larger volume of goods must be produced to enable manufac- 



THE MONETARY TIMES 



Volume 66 



tuiers and the govei-nment to carry their financial obligations. 
Germany, before the war, owed its commercial and indus- 
trial success in no small measure to efficient financial, as dis- 
tinguished from commercial, banking. German financial insti- 
tutions were prepared to hold long-term securities as the basis 
of financial support for the export trade of German manufac- 
turers. The iiuestion has already been raised in London as to 
what can be done to establish a bank of rediscount for the 



empire, but the equally important problem remains to be 
solved as to how long-time credit can be offered by British 
and Canadian manufacturers without dangerously placing lim- 
its upon their liquid assets. It is not tlie business of commer- 
cial banking to assume such risks, but the time is at hand 
when Canadian manufacturers must find some safe method of 
granting longer credits if they arc to strengthen their position 
in foreign markets. 



Canada's Economic Progress at a Glance 

Development of the Dominion Geographically Illustrated in Figures of Production, Trade 
Banking and Currency - Effect of the War on the Country's Industry Clearly Reflected 

'T'HERE is no better and easier way of describing the eco- 
A nomic development of a country than by statistics. A few 
well-selected figures contain more information than any liter- 
ary volume in this respect. In the following tables, which 
have been carefully prepared and selected by The Monclayy 
Times, the economic progress of the Dominion is graphically 
illustrated: — 

POPULATION 

■(Immigration 



PRIMARY PRODUCTION— Continued 



1871 3,689.257 

1881 4,324,810 

1891 4,833,239 

1901 5,371,315 

1911 7,296,643 

*1914 7,725,000 

1915 7,928,000 

1916 8,140,000 

1917 8,361,000 

*1918 8,593,000 

*1919 8,835,000 

* Estimated 



1897 21,716 

}1900 23,895 

1905 146,266 

1910 208,794 

1913 402,432 

1914 384,878 

1915 144,789 

1916 48.537 

1917 75,374 

1918 79,074 

1919 ■ 57,702 

t From other countries. 

+ 6 months — Jan. to June. 



. PRIMARY PRODUCTION 

Total value Wheat yield Value of 

field crops bushels wheat 

1914 $638,580,300 $161,280,000 $196,418,000 

1915 825:370,600 393,542,600 356,816,900 

1916 886,494,900 262,781,000 344,096,400 

1917 1,144,636,450 233,742,850 453,038,600 

1918 1,372,935,970 189,075,350 381.677,700 

1919 1,452.437,500 193,260,400 364,857,000 

PRIMARY PRODUCTION— Continued 

Total value of pulpwood Fisheries 

1914 $8,089,868 $33,207,748 

1915 9,426,217 31,264,631 

1916 13,104,458 35,860,708 

1917 18,817,483 39,208,378 

1918 24,886,475 *60,363,502 

* Calendar year. 

PRIMARY PRODUCTION— Continued 

Coal Coal 

tons value 

1914 13,637,529 $33,471,801 

1915 13,267,023 32,111,182 

1916 14,483,395 38,817,481 

1917 14,046,759 43,199,831 

1918_— 14,979,213 55,752,671 

1919 13,586,300 54,051,720 

PRIMARY PRODUCTION— Continued 

Gold Silver Nickel 

ozs. ozs. lbs. 

1914 773,178 28.449,821 45,517,937 

1915 918,056 26,625,960 68,308,657 

1916 930,492 25,459,741 82,958,564 

1917 738,831 22,221,274 84,330,280 

1918 710,526 21,284,607 92,076,034 

1919 767,167 15,675,134 44,542,953 



Copper Total value 
lbs. mineral production 

1914 75,735,960 $128,863,075 

1915 100.785,150 138,920,759 

1916 117,150,028 177,201,534 

1917 109,227,332 189,646,821 

1918 118,415,829 210,204,970 

1919 74,124,653 173,075,913 

BANKING STATISTICS 

Paid-up Capital 

Oct. 31. Total assets and Reserve 

1910 $1,260,755,709 $176,889,102 

1911 1,381,280,989 199,582,373 

1912 1,521,105,096 218,773,578 

1913 1,575,550,980 226,966,252 

1914 1,577,919,069 228,245,019 

1915 1,657,256,962 226,738,438 

1916 1.968,940,288 226.053,811 

1917 2,244,878,054 225,187,422 

1918 2,638,839,732 217,712,095 

1919 2,967,598,848 241,152,863 

1920 3,155,601,568 257,682,757 

BANKING STATISTICS— Continued 
Deposits on demand 

Oct. 31 and after notice Circulation 

1910 $829,855,337 $95,992,866 

1911 918,404,607 105,855,021 

1912 1,023,912,500 110,696,877 

1913 1,011,367,714 118,234,359 

1914 1,008,539,512 123,744,682 

1915 1,093,379,043 122,782,233 

1916 1,303,527,638 145,031,667 

1917 1,480,849,299 195,298,212 

1919 1,968,027.027 242,509,573 

1920 1,958,927,532 252,882,760 

LOAN AND TRUST 

Loan Companies Trust Companies 

(assets) (assets) 

1914 $70,588,091 $10,740,640 

1915 71,992,666 7,306,350 

1916 70,872,297 7,826,943 

1917 69,676,223 7,656,292 

1918 69,995,036 8,836,i37 

CURRENCY 

*Dom. notes tBank notes 

in circulation in circulation 

1911 $99,308,945 $89,982,223 

1912 111,932,238 100,146,541 

1913 116,363,537 105,265,336 

1914 114,182,098 104.600,185 

1915 152,117,695 105,137,092 

1916 175,494,135 126,691,913 

1917 178,564,970 161,029,606 

1918 281,336,474 198,645,254 

1919 299,530,655 218,919,261 

1920 292,016,290 228,220,603 

* Year ended June, t Monthly average. 



January 7, 1921 



THE MONETARY TIMES 



TRADE OF CANADA* 

Fiscal year Exports of Exports of 

ended March Canadian produce foreign produce 

1906 $235,483,956 $11,173,846 

U907 180,545,306 11,541,927 

1908 246,960,968 16,407,984 

1909 - 242,603,586 17,318,782 

1910 279,247,551 19,516,442 

1911 274,316,553 15,683,657 

1912 290,223,857 17,492,294 

1913 355,754,600 21,313,755 

1914 431,589,658 23,848,785 

1915 409,419,503 52,023,67r 

1916 1 741,610,953 37,689,432 

1917 1,151,461,855 27,835,332 

1918 1,540,318,069 46,142,004 

1919 1,207,613,806 52,321,479 

1920 1,239,492,098 47,166,611 

* Merchandise only. t Nine months. 

TRADE OF CANADA*— Continued 

Fiscal year Imports for Total trade 

ended March consumption of Canada 

1906 $283,282,204 $529,940,006 

tl907 249.737,874 441,825,107 

1908 351,879,955 615,248,907 

1909 288,217,515 548,139,881 

1910 369,815,427 668,579,420 

1911 451,745,108 741,745,318 

1912 521,448,309 829,164,460 

1913 670,089,066 1,047,157,421 

1914 618,457,144 1,073,894,368 

1915 455,446,312 916.888,821 

1916 507,817,159 1,287,117,229 

1917 845,356,306 2,024,567,406 

1918 962,543,746 2,548,713,538 

1919 916,443,432 2,176,378,717 

1920 1,064,528,123 2,304,020,221 

* Merchandise only. t Nine months. 

BOND SALES 

Year Sales in Canada Sales in U. S. 

1910 $39,296,462 $3,634,000 

1911 44,989,878 17,553,967 

1912 37,735,182 30,966,406 

1913 45,603,753 50,720,762 

1914 32,999,860 53,944,548 

1915 114,275,214, 178,606,114 

1916 102,938,778 206,943,764 

1917 546,330,714 174,708,365 

1918 727,446,361 33,310,000 

1919 705,385,419 199,446,670 

BOND SALES— Continued 

Year Sales in U. K. Total bond sales 

1910 $188,070,128 $231,000,590 

1911 : 204,269,143 266,812,988 

1912 204,236,394 272,937,982 

1913 277,470,780 373,795,295 

1914 185,990,659 272,935,067 

1915 41,175,000 335,106,328 

1916 5,000,000 356,882,542 

1917 5,000,000 726,039,079 

1918 14,600,000 775,356,361 

1919 5,105,133 909,937,222 

The sales in the United Kingdom since 1915 have nearly 
all been refunding issues. 

TRANSPORTATION 

Steam i-ailways Elec. railways 

(earnings) (earnings) 

1914 $243,083,539 $29,691,007 

1915 199,848,072 26,922,900 

1916 261,888,654 27,416,285 

1917 310,771,479 30,237,664 

1918 330,220,150 24,299,890 

1919 I 382,976,901 35,696,532 



INSURANCE 

Fire Fire Fire 

(premiums) (losses) (at risk) 

1911 $20,575,255 $10,936,947 $2,279,868,346 

1912 23,194,518 12,119,581 2,684,355,895 

1913 25,745,947 14,003,759 3,151,930,389 

1914 27,490,158 15,347,284 3,456,019,009 

1915 26,474,833 14,161,949 3,531,620,802 

1916 27,783,852 15,111,133 3,720,058,236 

1917 31,246,536 16,379,101 3,986,197,514 

1918 35,954,408 19,359,252 4,523,514,841 

1919 39,914,398 23,207,647 4,904,396,461 

INSURANCE — Continued 

Life Life 

(net in force) (premiums) 

1913 $1,168,590,027 $38,641,206 

1914 1,242,160.478 41,094,095 

1915 1,311,616,677 45,106,678 

1916 L 1,422,179,632 48,093.105 

1918 1,785,061,273 61,641,047 

1919 1 2,187,833,396 74,689,262 

MISCELLANEOUS 

Dun's Price 

Bus. failures Index Bldg. permits 

1911 1,332 127.4 $138,170,390 

1912 1,357 134.4 185,233,449 

1913 1,719 135.5 153,662,842 

1914 2,892 136.1 96,780,981 

1915 2,652 148.0 33,566,749 

1916 1,677 182.0 39,724,466 

1917 1,088 237.0 33,936,426 

1918 873 278.3 36,838,270 

1919 751 293.2 77,113,413 

Canada's Progress Graphically Illustrated 



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YEAR 



FRUIT PRODUCTION UNUSUALLY LARGE 

The largest crops of fruit so far grown in southern On- 
tario were grown in the year just ended. Prices of some 
fruits were the lowest since 1914. This fall in prices, coupled 
with the high cost of labor, of containers, of freight and other 
expenses, cut down the profits of the growers. "Perhaps the 
worst year we have ever had in our whole history as fruit- 
growers," was the way a prominent fniit-grower summed up 
the situation in the Niagara fruit belt. The growers claim 
they have made hardly any money on the great output of 
peaches, cherries, plums, etc. 



THE MONETARY TIMES 



Volume 66 



New Government Legislation and Its Effects 

Taxes Imposed at H)20 Session Have Swelled Dominion's Revenue — The 
Government Shipbuildins Subsidy— Soldier Settlement Plan and Its Results 
—The Tariff and the Tariff Commission— New Trade Relation Established 



THE 1920 session of Parliament, which opened on February 
21st and closed on July 1st, was notable more for the im- 
portance rather than for the number of its enactments. In 
volume its product was not nearly as large as that of the fii'st 
session in 1919, but especially in matters of taxation there was 
a launching out along new lines which made its work of a very 
high order of importance. 

The first Drayton budget represented something new in 
Canadian taxation methods and general fiscal policy. As ex- 
perience has shown, it was sagacious; but before results were 
forthcoming to determine whether it was sagacious or not it 
was generally admitted to be courageous. Pay-as-you-go as 
a national policy sounded well, but the question was; How will 
it work? 

New Taxation Has Been Productive 

Confronted by the problem of raising nearly $600,000,000, 
Sir Henry cut expenditure as much as possible, but evidently 
realizing that he could not by this means hope to make income 
balance expenditure, he cast about for new sources of revenue 
and decided to introduce the luxury and sales taxes, and also 
made certain increases in the income tax. At the same time 
he courageously reduced the business profits war tax and the 
7% per cent, customs war tax. He estimated the revenue at 
$381,000,000 and said that collections on outstanding accounts 
and balances due from Great Britain would probably amount 
to $570,000,000. There was no definite estimate of what the 
new taxes would yield. 

Under the classification "New excise taxes" are included 
the taxes on luxuries. These, imposed with a view to check 
the expenditure on what may be considered non-essentials, 
were considerably altered by the time they had left the com- 
mittee stage. They are so based and scaled as to exempt, as 
far as possible, goods of a nature and price such as may be 
considered necessary. They are paid by the purchaser to the 
vendor at the time of sale and delivery for consumption and 
use. They range from 10 to 50 per cent. The tax on beer, 
wine and spirits was also increased. 

The sales tax, which is in addition to the excise and the 
customs tax, is a tax of 1 per cent, collected on all sales by 
manufacturers, wholesalers or jobbers, and on the dutiable 
value of importations, but in respect to sales made by manu- 
facturers to retailers or consumers, or on importations by re- 
tailers or consumers, the rate is 2 per cent. 

Stamp taxes, the tax on cheques, was continued, the rate 
•being increased on bills of exchange and promissory notes so 
as to provide a two-cent tax on all bills or notes of $100 or 
less, and for every additional $100 or fractional part thereof 
two cents more. A tax of two cents for each share of stock 
transferred was also imposed. 

Income and Business Profits Taxes 

The rate on incomes of $5,000 a year and upwards was 
increased by 5 per cent. As a result the tax on a personal 
income of $5,000 brings $126, compared with $100 before; on 
an income of $50,000 $9,649.50 is collected, compared with 
$5,782, and on $100,000 the collection is $10,500, as compared 
with $6,000. 

The business profits war tax was continued but reduced, 
the exemption being extended from 7 to 10 per cent. • The new 
schedule is as follows: On profits in excess of 10 per cent, but 
not exceeding 15 per cent., tax 20 per cent. On profits in ex- 
cess of 15 per cent., but not exceeding 20 per cent., tax 30 per 
cent. On profits in excess of 20 per cent., but not exceeding 
30 per cent, tax 50 per cent. On profits over 30 per cent., tax 
60 per cent. The tax on pi-ofits of business with a capital of 
not less than $25,000 and under $50,000 was reduced from 25 
to 20 per cent, on all profits exceeding 10 per cent, on the 
amount of capital employed. 



The customs war tax, which amounted to 7% per cent., 
was abolished. The other tariff changes were of minor im- 
portance. 

Tariff Revision Promised 

Sir Henry announced that the tariff commission would be- 
gin its enquiry after prorogation. He also stated the tariff 
policy of the government as follows: "Our policy calls for a 
thorough revision of the tariff with a view to the adoption of 
such reasonable measures as are necessary: (a) To assist in 
providing adequate revenues; (b) to stabilize legitimate indus- 
tries and to encourage the establishment of new industries 
essential to the proper economic development of the nation, to 
the end that a proper and ever-increasing field of useful and 
remunerative employment be available for the nation's work- 
ers; (c) to develop to the fullest extent our natural resources; 
(d) to specially promote and increase trade with the Mother 
Country, the sister dominions and colonies and crown depen- 
dencies; (e) to prevent the abuse of the tariff for the exploi- 
tation of the consumer; and (f) to safeguard the interests of 
the Canadian people in the existing world-struggle for com- 
mercial and industrial supremacy." 

Assistance to Shipbuilding 

In order to assist Canadian shipbuilding plants in securing 
foreign orders legislation was enacted authorizing the govern- 
ment to make advances upon approved securities up to 50 per 
cent, of the value of such orders, a condition being that one- 
fourth of the value of the vessels ordered should be paid for 
in cash, the other fourth to be arranged for by the builder. 
The advances thus authorized were $20,000,000. Mexico en- 
deavored to take advantage of this provision, but owing to the 
instability of conditions in that country her application was 
not entertained. It is understood that other applications have 
been made. 

Railway Problems 

Railway matters occasioned a great deal of discussion, as 
these involved an expression of opinion on the cost of operat- 
ing the Canadian National system and the Grand Trunk, to- 
gether with opinions as to their value and the extent of the 
obligations assumed in the taking over of these enterprises. 
The statement of the minister of railways to the effect that 
the deficit on government railways was $48,611,000 produced a 
lengthy debate, the opposition contending that in reality the 
deficit was much larger. There was further discussion over 
the authorizing of advances for approximately $17,000,000 to 
the Canadian Nationals for equipment, also over the authoriz- 
ing of a loan of $25,000,000 to the Grancl Trunk. During the 
year the Canadian Nationals floated a $15,000,000 equipment 
loan in the United States, guaranteed by the Dominion gov- 
ernment, while another loan of $25,000,000. issued by the 
Grand Trunk and also guaranteed by the Dominion govern- 
ment, was disposed of over there. 

Among acts of special importance to men of business was 
that relating to trusts and loan companies, and which, in so 
far as inspection is concerned, placed them on the same basis 
as insurance companies. The inspection will be of a regular 
nature. The Supreme Court Act was amended so as to bring 
about a simplification and uniformity of procedure in matters 
relating to the court and to prevent appeals being brought be- 
fore it in matters of a low order of importance. Appeals are 
now restricted to cases in which the amount at issue exceeds 
$2,000 in value exclusive of costs; in all other cases appeals 
shall be made by special permission of the highest court in the 
province. 

A considerable increase was made in pensions to returned 
soldiers. The wheat board gave rise to much discussion, the 



.lanuaiy 7, 1921 



THE MONETARY TIMES 



government being given power to recreate the board if it were 
deemed advisable to do so. 

Soldier Settlement 

The soldier settlement scheme developed rapidly during 
the year and has proven to be undoubtedly the most impor- 
tant permanent colonization effort of its kind that Canada 
has ever seen. To date approximately 57,000 returned sol- 
diers have made application for the purpose of qualifying 
and thus taking advantage of its opportunities. No less than 
41,000 have been declared qualified, while over 19,600 have 
received advances amounting to about $80,000,000. 

Alberta has received by far the largest number of those 
settlers, followed by Saskatchewan, Manitoba and British Co- 
lumbia. Of the total over 85 per cent, have located west of 
the great lakes, the figures by provinces being: Alberta, 
5,637; Saskatchewan, 4,783; Manitoba, 3,250; British Colum- 
bia, 2,907; Ontario, 1,374; New Brunswick, 493; Quebec, 454; 
Nova Scotia, 392; Prince Edward Island, 291. 

The loans approved by the provinces are: Alberta, $22,- 
410,192; Saskatchewan, $19,352,307; Manitoba, $13,057,770; 
British Columbia, $12,437,650; Ontario, $5,931,605; Quebec, 
81,884,938; New Brunswick, $1,413,684; Nova Scotia, $1,376,- 
130; Prince Edward Island, $783,377. The distribution of 
loans has been as follows: To purchase land, $42,778,768; to 
remove encumbrances, $2,173,955; for permanent improvement, 
$9,039,823; for stock and equipment, $24,555,107. 

Will Increase Farm Production 

Prom the standpoint of its contribution to agricultural 
production the scheme is of very great importance. To date 
it has resulted in the locating of 20,000 men on the soil and 
under conditions so favorable that with ordinary luck they 
cannot help but make good. These men have, in form of 
soldier grant entries, received over 1,600,000 acres, and an- 
other 500,000 acres through the exercise of their civilian right, 
or a total of over 2,100,000 acres. It is also to be remembered 
that less than one-half of those qualified have been placed. 
Now, 2,100,000 acres sown to wheat and yielding 16 bushels 
per acre, which was the average for all Canada this year, 
would produce over 33,000,000 bushels of wheat, an amount 
equal to the spring wheat yield for all Canada in 1900. 

It may also be pointed out that this average is greater 
than that under crop in the whole of the maritime provinces 
as late as 1914. 

The value of this settlement may also be stated in another 
very striking way. The C. P. R. estimates that the yearly 
value to the railways of the average farmer settler in the 
west is $746.33, this figure being obtained through dividing 
the number of farmers in the prairie provinces into the rev- 
enue derived from the movement of agricultural produce, also 
coal and in-and-outgoing passenger traffic. Capitalized at BV, 
per cent. $746.33 is worth $13,569.63, which, the C. P. R. con- 
cludes, is the value of each western farmer to the country. In 
this basis of calculation these 20,000 farmers placed through 
the soldier settlement board should be worth $270,000,000 to 
the country. If all those qualified go on land the value of the 
total settlement to the country should equal half a billion dol- 
lars. 

Returned Soldiers' Insurance 

Among other legislation of the session was the Returned 
Soldiers' Insurance Act, which came into operation on Septem- 
ber 1st, 1920. It applies to returned soldiers and to the 
widow of a returned soldier who died after honorable dis- 
charge from service and before September, 1921. Policies 
are issued for a minimum of $500, and in multiples up co 
$5,000. The insurance money is payable only at death or on 
permanent disability of the insured, the maximum amount 
paid in one sum being one-fifth of the amount of the insur- 
ance, the remainder being paid in annuities. The insurance 
must be applied for before September 1st, 1922. The amount 
of such insurance in effect at the beginning of November was 
$2,203,000, the number of policies issued being 649. 

The tariff commission, consisting of Sir Henry Drayton, 
chairman, Hon. J. A. Robertson and Hon. Dr. Tolmie opened 



its sessions in Winnipeg on September 18th, where represcnta- 
ti\"es were heard chiefly from the Canadian Manufacturers' 
Association and the Grain Growers. In the west sittings were 
also held at Medicine Hat, Vancouver, Victoria, Vcmon, Nel- 
son, Trail, Calgary, Edmonton, Saskatoon, Rcgina and Bran- 
don; also at Port William and Port Arthur, and Sault Ste. 
Marie. The eastern itinerary opened at Charlottetown on 
November 4th, other places visited being Sydney, Halifax, St. 
John, Moncton, Quebec, Sherbrooke, Three Rivers, Montreal, 
Kingston, Hamilton, London, Windsor and Toronto. 

Results of New Taxes 

The new taxes, together with the more vigorous and effi- 
cient collecting of the income tax, have produced abounding 
revenues so far during the current fiscal year. Very gratify- 
ing indeed have been the returns from the luxury and sales 
taxes, these, with a i-eduction in expenditure, having enabled 
the finance department to report at the end of October a reduc- 
tion of $2,634,356 in the net national debt during the month. 
The receipts from the luxury and sales taxes, which are in- 
cluded under the item internal revenue, were $38,985,991 for 
the seven months ending October, an increase of $30,870,000 
over the returns for the same period in 1919. During October 
they were $9,534,178, as compared with $1,045,708 in the pre- 
ceding October. The reduction in the business profits tax is 
showii in the reduced collections, which amounted to $16,889,- 
720 for the seven months, compared with $17,787,975 for the 
preceding seven. The income tax collections were $7,297,512,. 
compared with $1,946,419. For October alone they were $712,- 
093, against $272,691 for the same month last year. The cus- 
toms collections for the first six months of the fiscal year ran 
over $24,000,000 ahead of those for the same months in 1919, 
but in October they began to fall behind. Up to October 31st 
the total revenue for the fiscal year was $256,576,967, com- 
pared with $186,408,794 for the same period in 1919. 

At this rate the revenue for the fiscal year would -amount 
to $437,000,000, and it is quite possible that this amount may 
be realized. Certainly $400,000,000 seems to be within reach. 
The customs revenue has been surprisingly high, the average 
for the first seven months being $17,546,000 a month, which, if 
maintained, would mean over $200,000,000 for the year. When 
he announced the abolition of the 71/2 per cent, customs war 
tax Sir Henry Drayton expressed the view that the collections 
might be $160,000,000 for the year. That they have so ex- 
ceeded expectations has been due to the unexpectedly heavy 
importing, especially from the United States. 

These revenue figures makes those of pre-war days look 
small. In the fiscal year 1912-13 the total revenue was but 
$168,690,000 and constituted the record up to after the out- 
break of the war. The revenue for this year will exceed that 
by more than two and one-half times. Nor can it be said that 
the present revenue occasions hardship. As an evidence of 
how the per capita revenue has increased it may be pointed out 
that in 1868 it was equal to $4.05 per capita; in 1878, $5.49; 
1888, $7.66; 1898, $7.80; 1908, $14.80; 1918, $30.35; 1920-21. 
probably $44. 

The department of finance made a praiseworthy departure 
during the year in altering the balance sheet by eliminating a 
number of "inactive" assets, or assets of a doubtful character 
It is true that in doing so the net national debt was increased 
by well on to $300,000,000, but there was nothing to be gained 
by including among the "active assets" a number of loans xo 
railways that had been taken over by the government. The 
net national debt now stands at approximately $2,275,000,000. 
and the gross at approximately $3,045,000,000. 

Canada-West Indies Trade Agreement 

The Canada- West Indies trade agreement was negotiated as 
a result of a conference held during June between representa- 
tives of Canada and the Bahamas, Barbados, Bermuda, British 
Guiana, British Honduras, Jamaica, Leeward Island, Trinidad 
and the Windward Islands. By it Canada affirmed the princi- 
ple of granting a preference on all goods the product or manu- 
facture of any of the foregoing colonies imported into the 
Dominion which are subject to duty, or may be subjected to 
duty at any future time, and the colonies reciprocated. The 



THE MONETARY TIMES 



Volume 66 



duties on all goods, other than tobacco, cigars, cigarettes, spir- 
ituous or alcoholic liquors, are not to be more than 50 per 
cent, of the duties imposed on similar gpods imported into 
Qanada from foreign countries, special ti-eatment being grant- 
ed to sugar imported from the islands. Subject to certain 
special provisions, the duties on all dutiable goods other than 
tobacco, cigars and cigarettes, which are the product or manu- 
facture of Canada, shall be imported into the colonies accord- 
ing to the following preference: In the case of Barbados, Brit- 
ish Guiana and Trinidad, 50 per cent.; British Honduras, the 



Leeward Islands, and Windward Islands, 66% per cent.; Ber- 
muda and Jamaica, 75 per cent.; Bahamas, 90 per cent, of the 
ordinary tariff rate. Special provision was also made for the 
establishing of direct mail, passenger and freight steamship 
service between Canada and the British West Indies. The 
treaty is subject to the approval of Parliament and of the 
legislature of each of the colonies and of the colonial secre- 
tary. All the colonies have ratified it. It will remain in 
force for ten years after proclamation of it and be terminable 
on twelve months' notice. 



Wide Fluctuations Shown in Employment 

Very Little Unemployment in Summer Months, But Rapid Increase in Fall- 
Seasonal Fluctuations Greatest in Prairie Provinces, Proportion of Applicants 
to Vacancies Grows — The Work of the Employment Service of Canada 



By BRYCE M. STEWART 

Director, Employment Service of Canada 



IN 1919 a nation-wide employment service was established in 
Canada by the Dominion and provincial departments of 
labor in co-operation. In this Canada anticipated the recom- 
mendation of the international labor conference that "Each 
member which ratifies this convention shall establish a system 
of free public employment agencies under the control of a 
central authority." At present there are 75 offices in oper- 



The service regards the placing of applicants in employ- 
ment and the recruiting of employees for employers as a local 
problem in the first instance. If, however, the local office is 
unable to fill all its orders or place every applicant in its own 
zone of operations the surplus of demand or of labor is re- 
ported to the clearing house of the province. The provincial 
clearance officer is constantly receiving these reports of aver- 





PERCENT 


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ation, distributed among the provinces as follows: Nova Scotia 
4, New Brunswick 1, Quebec 5, Ontario 27, Manitoba 9, Sas- 
katchewan 9, Alberta 5, British Columbia 15. For the 11 
months ended November 20, 1920, the number of vacancies 
notified to the offices of the employment service was 452,293, 
of which 394,710 were for men and 57,583 were for women. 
Applications for employment for this period numbered 450,- 
544, of which 407,422 were received from men and 43,122 from 
women. The placements of men were 314,981, and of women 
27,529, a total of 342,510. In addition 73,803 casual place- 
ments were effected. The total placements for the calendar 
year will be approximately 450,000. 



ages and circulating them in clearance bulletins throughout 
all the offices of the province. Frequently a local superinten- 
dent is able to match his surplus of carpenters, for example, 
with an unsatisfied demand for these tradesmen in some other 
locality. He communicates by telephone or telegraph with 
the other superintendent concerned and arranges a transfer 
if both parties are satisfied. 

After demand and supply have been ironed out in this 
way as smoothly as possible over the province the provincial 
clearance officer reports any orders for employees or applica- 
tions for employment still unsatisfied to the Dominion clear- 
ing house of the district — at Winnipeg for the west, at Ot- 



January 7, 1921 



THE MONETARY TIMES 



tawa for Ontario and Quebec, and at Moncton for the mari- 
time provinces. Tlie Dominion clearing house circulates these 
items among employment offices in adjacent provinces, or if it 

seems desirable in all the remaining offices of the country. 
As before, the local superintendents are authorized to com- 
municate directly with one another in arranging to transfer 
persons to satisfy orders in interprovincial circulation. 

Reduced Railway Rates 

■ To assist the service in this clearance work a special 
transportation rate for persons being sent to employment at a 
distance has been granted by all the large railways. Under 
this transportation arrangement a reduction from the regular 
fare is granted on all trips of 116 miles or more, a flat rate 
of $4 being charged on trips from 116 to 177 miles, and a rate 
of 2¥i cents per mile on trips of more than 177 miles. Re- 



duced fares are granted to applicants on presentation of a cer- 
tificate signed by the superintendent of the local employment 
offices. The certificate is granted, of course, only in cases of 
bona fide placements through the employment service. The 
rate presupposes the existence of a well-organized system of 
provincial and interprovincial clearance to insure that persons 
will not bo despatched long distances when suitable employ- 
ment is available near at hand. The importance of this re- 
duced fare plan in enabling the service to secure employment 
for persons who would otherwise be out of work, and at the 
same time to increase production, can scarcely be over-empha- 
sized. 

Relation of Employment to Industry 
The reports of applications, vacancies and placements 
received from the local offices afford a valuable index of labor 
market conditions and the accompanying chart is of some in- 



pLRCEIiT/qGEl CH/^NGE IM MUnBER OF PER50N5 ON P/qv'-ROLLS, /^5 

REPORTED WEEKLY bY EHPLOYERS NflKING RETURNS FOR CflNflDfl, 

flS ^ WHOLE ^ND 6/ DISTRICTS . 

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THE MONETARY TI 



E S 



Volume 66 



terest from that standpoint. It shows that from March 1, 
1919, when the statistics first became available, until the last 
week of July, the spread between the supply of labor as indi- 
cated by applications for employment and the demand for 
labor as evidenced by employers' orders was never very 
great. The supply, as would be expected, was somewhat in 
excess of demand in the early spring but demand was slow co 
overtake supply and it was not until the end of June that the 
number of workers required was in excess of the applications 
for employment. Industry had not completed the change 
from war to peace production and as demobilization threw 
thousands of men on the labor market the usual spring absorp- 
tion was delayed. Indeed it was not until the heavy demand 
for labor for the western harvest that demand rose above 
supply pronouncedly. During the autumn orders for labor 
kept up very well and a surplus of labor was not registered 
until the second week of November, with the release of num- 



organized. Reports of the number of persons on pay-rolls are 
received weekly from 5,000 industrial enterprises employing 
about 700,000 workpeople. Assembled by industrial groups 
they constitute a very good barometer of the employment sit- 
uation in industry. The accompanying chart shows the 
change weekly in the number of persons employed since the 
base week — January 17 — as reported by employers making 
returns from Canada as a whole, and by districts. It had been 
planned to use the first week of the year as a base, but this 
was found impracticable because of the annual holiday and 
inventory-taking period which occurs at that time. The per- 
centage change rather than the actual number of employees 
is used in plotting the curve for the reason that the number 
of returns received weekly is not constant. 

Taking the reports for all Canada the curve for the first 
few weeks shows the recovery from the holiday season, but 
from the middle of January until the 1st of April it remained 




bers of men from railroad and construction operations and 
from farm work. 

Recovery Last Spring 

All through the winter until the end of March, 1920, the 
iniployment service carried a surplus of applicants on the reg- 
isters, a peak being reached early in January when the regis- 
tration of unemployed ex-service men for the federal emerg- 
ency appropriation was heaviest. In the spring of 1920, how- 
ever, recovery from the winter slackness was much earlier 
than in 1919, the curve of demand rising above the curve of 
supply about the 1st of April, as compared with the end of 
June in the previous year. The demand for labor for the 
western harvest was also somewhat heavier than in 1919 and 
in the record week of the harvest season, as well as of the 
year, 17,500 placements were effected as against 13,500 in the 
corresponding week of the year previous. Evidence that we 
are entering upon the winter of 1920 with a lesser volume of 
emplojTiient than at the beginning of last winter is afforded 
by the fact that in 1919 the demand as represented by vacan- 
cies did not make a final crossing to a position below supply 
as indicated by applications until the second week in Novem- 
ber. This year the crossing took place in the second week of 
October, just one month earlier. 

Weekly Employment Reports 

During the year a system of weekly employment reports 
from representative employers of labor in all industries was 



almost horizontal. During this period railway and other con- 
struction work, which bulks so largely in the industry of the 
west, was at its low level for the year, a fact which exerted a 
strong bearish influence on the curve of employment for Can- 
ada as a whole. With the advent of the usual spring expan- 
sion in out-of-door work the volume of employment grew rap- 
idly until a peak was reached in the middle of July, when the 
number of employees on the pay-rolls was 9 per cent, greater 
than at the middle of January. The various curves show that 
this expansion was common to all parts of Canada, but very 
marked in the prairie provinces and British Columbia, where 
many thousands \vere drafted into railway and general con- 
struction. The curve for the maritime provinces, partly due 
to an unusual volume of construction work, was steepest of all. 
The curve for the province of Ontario and Quebec closely 
parallels the curve for the whole country, due, of course, to 
the large proportion of the total industrial population within 
these two provinces. The recession from the peak in July is 
accounted for mainly by the numerous separations from indus- 
try and especially from construction work on the part of work- 
ers going to the harvest fields", a movement which appears in 
the curve for the prairie provinces and also in the curve for 
Ontario and Quebec. With the conclusion of the harvest the 
workers returned to industrial employment in large numbers, 
especially in the west, where the fine open fall favored rail- 
way and other construction. At the middle of November in- 
dustrial workers in the prairie provinces were still very well 



January 7, 1921 



THE MONETARY TIMES 



19 



employed, but the employment curve for the country as a whole 
had dropped to the position it occupied on May 1. The curve 
for the maritime provinces was keeping up very well, but the 
curve for Ontario and Quebec was falling rapidly because of 
the slump in various manufacturing industries, chiefly cloth- 
ing, boots and shoes, rubbei-, some branches of textiles, furni- 
ture, pianos, automobiles, confectionery and sugar refining. 
The rapid fall in the curve for British Columbia reflects 
shrinkage in railway construction, lumbering and logging op- 
erations and shipbuilding. 

Trade Unions Also Report 

Reports from trade unions as to the number of members 
unemployed are indicative of labor market trends for skilled 
workers in particular. Returns are received for the last day 
of each month from some 1,500 unions with a membership of 
approximately 200,000. As the accompanying chart shows 
unemployment among trade unionists fell to an almost irreduc- 
ible minimum during the war — less than 1 per cent, in the 
summer of 1918. After the armistice the cessation of war in- 
dustries, added to the unusual winter dullness, brought the 
trade union unemployment curve in February and March, 1919, 
to 5.6 per cent. — the highest percentage of unemployment re- 
ported since the winter of 1915-16. The usual spring expan- 
sion was somewhat retarded, but in the summer months only 
slightly over 2 per cent, of the members were reported unem- 
ployed. The curve mounted rapidly from the 1st of October 
to the 1st of December, when an unemployment percentage of 
5 was registered, but it dropped to 4 per cent, in January and 
February, 1920. Not only was the unemployment curve lower 
than in the previous winter, but improvement began earlier, 
and in the months of March, April and May an unemployment 
percentage of about .3 was reported, as compared with consid- 
erably over 4 in the spring of 1919. While there was more 
rapid recovery from winter slackness than in 1919, trade 
unionists were not as well employed in the summer as in the 
previous year, and at the end of- August the cui've registered 
an unemployment percentage of 4. There was some recovery 
in September, but by the end of October the curve had risen 
steeply to 5.7 per cent., which brings us into the high altitude 
attained in February and March, 1919, when demobilization 
combined with seasonal inactivity to force the curve sharply 
upwards. Unemployment among trade unionists in the cloth- 
ing, boot and shoe and rubber industries in Ontario and Que- 
bec, and in shipbuilding and lumbering in British Columbia, 
was chiefly responsible for the steepness of the curve. Slack- 
ness among the carpenters and joiners also contributed. 

1920 A Year of Wide Changes 

The various indices of employment maintained by the 
employment service agree that 1920 was a year of early rise 
and rapid fall in the labor market. The year 1919 was 
weighted with the demobilization problem and it was mid- 
summer before industry seemed to get under way. As if to 
compensate for this tardiness the demand for labor continued 
brisk into the late autumn and at the end of the year there 
was no heavy surplus. The year 1920 accepted this heritage 
blithely and gave promise of a twelve-month of activity. The 
winter dullness passed off quickly. The number of ex-service 
men registered for the federal emergency appropriation was 
much smaller than had been expected. The percentage of 
trade union members unemployed averaged only 3.5 for the first 
four months of the year as compared with 5 per cent, in the 
first four months of 1919. Demand for labor at the employ- 
ment offices began to exceed the supply about the 1st of 
April, two months earlier than in the year previous. Reports 
from employers indicated expansion in the volume of employ- 
ment beginning early in April and reaching a peak in July; 
and building permits in 35 cities, which have not been dis- 
cussed because of lack of space, registered their largest 
monthly total of the year in April, $15,333,183, as compared 
with a record of $11,995,683 for 1919. which was not recorded 
until September. But the year 1920 was riding for a fall. 
In July the curve of unemployed trade unionists registered a 
higher percentage than in the previous year and in each 
month following it has exceeded the 1919 mark. A surplus 



of labor began to appear in the autumn, and applications for 
work at the employment offices i-ose to a position above vacan- 
cies offered by employers the second week of October, a month 
earlier than last year. The employers' weekly reports show 
that despite buoyancy in the prairie provinces the volume of 
employment for the whole country has been shrinking 
steadily since the last week in September, and in that month 
the value of building permits fell below the figures for 1920, 
and has so remained. The number of unplaced applicants on 
the registers of employment oflSces is steadily increasing while 
the number of unfilled vacancies has been declining at the 
same rate. 

It is now abundantly evident that 1919 was only the first 
phase of readjustment from war to peace. Since midsummer 
there has been much business unsettlement and many indus- 
tries have been reducing staff's. To this unemployment will 
be added that consequent upon seasonal inactivity, and we 
must expect a volume of unemployment greater than that of 
the winter of 1915-16. 



BRITISH EMIGRATION TO CANADA RESUMED 

Figures Show Big Increase During 1920 . — Movement From 
United States Keeps Up 

IMMIGRATION to Canada in 1920 was substantially in ex- 
cess of 1919, as the figures on page 22 show. In the fiscal 
year ended March 31 last 117,336 came to Canada, of which 
59,603 were British, while for the previous year the figures 
wei-e 57,702 and 9,914 respectively. During the seven months 
ended October 31, 1920, 109,856 came to Canada, 60,370 being 
British, 34,708 from the United States, and 14,778 from other 
countries. 

Falling Off in Autumn 

In commenting on the movement, W. D. Scott, Dominion 
superintendent of immigration, said to Tlie Monetary Times: 

"It will be noticed that immigration to Canada during the 
seven months ended October 31st of this year shows an in- 
crease of 32 per cent. For the last three months of the period, 
however, as compared with the corresponding months of the 
preceding year, the increase is quite small. In view of the 
fact that an order-iri-council of recent date, fixing the money 
qualification for adult males at .$250, for adult females at $125, 
and for children at $50 each, the same to become effective at 
border ports on the 15th inst., and at ocean ports on the 1st 
prox., it may perhaps be concluded that for the five months, 
November to March, the number of immigrant arrivals may 
not be expected to show any increase over the corresponding 
months of 1919-20. If no falling off results the figures for 
the fiscal year 1920-21 will he approximately 144,000, or about 
23 per cent, increase as compared with that of 1919-20." 

Movement from Across Border 

In recent years the number of immigrants coming to 
Canada from the United States has been greater than the 
number moving in the opposite direction. A report of the 
United States commissioner of immigration for the six months 
ended June 30, 1920, says : "In the movement of United States 
citizens to and from Canada, the balance is in favor of the 
latter, for during the past ten years nearly 562,000 have gone 
there and about 367,000 have come to the United States." 

Figures showing the movement of immigrants between 
the two countries show 329,316 going from Canada to the 
United States in the five-year period 1910-1914, and 605,498 
from the United States to Canada in the same time. In the 
period 1915-16-17 289,165 persons left Canada for the United 
States, while 158,105 came to Canada from the United States. 

United States immigration officials say this was largely 
due to the fact that the United States had not entered the war 
at that time and there was unusual prosperity in that country. 
Many former Americans were returning from Canada to work 
in factories because of the higher wages offered. In 1918 and 
1919, with the United States in the war, the situation was get- 
ting back to normal. 



THE MONETARY TIMES 



Volxime 66 



1920 a Record Year in Canadian Trade 



Total Exceeds 1917 Figures— Adverse Balance Probably $85,000,000— Imports 
Increased By Over $400,000,000, While Exports Stationary — Foreign Trade 
Showing Good in Face of Changing Conditions— Exchange and Its Effects 

By W. G. GATES 



CANADA established a new trade record in 1920. The offi- 
cial figures for the year are not yet available, but one is 
warranted in saying that the value of the total external trade 
is approximately $2,635,000,000. Until now the year 1917 with 
$2,599,499,000 held the palm; but this has been beaten by 
nearly $40,000,000, while the figures for 1918, the year in 
which Canada was sending immense quantities of food and 
munitions to Europe, have been left behind to the extent of 
nearly $450,000,000. Canada did about $300,000,000 more 
trade with the United States than she did in 1919; about $40,- 
000,000 less with the United Kingdom, and probably $170,000,- 
000 more with other countries. 

The value of the exports is approximately $1,275,000,000 
and that of the imports approximately $1,360,000,000, leaving 
an excess of imports amounting to probably $85,000,000. How- 



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ever, there is this to be taken into account: Canada has large 
quantities of food to sell, and as other countries need these, 
exports should at least equal if not exceed imports on the 
whole fiscal year. 

Per Capita Trade Very High 

It is worth noting that the total trade for the year ex- 
ceeds the net national debt by probably $400,000,000 ; it is over 
two and one-third times greater than it was for the best year 
before the war, and is equal to about $300 per capita. What 
this really means is more cleai'ly realized when compared with 
the per capita trade of the United States, which for 1920, ac- 
cording to the best available figures, amounts to $132. In 
point of turnover there is every reason to be satisfied with 
1920, for in no other calendar year has Canada done as large 
a per capita trade. It should also be borne in mind that these 
huge figures wei-e rolled up in spite of rapidly declining prices. 

Exports Have Fallen Off 

While the total figures are thus much larger than ever be- 
fore, it is regrettable that the exports show a slight decline, 
for they amount to approximately $1,275,000,000, as compared 
with $1,294,830,372 in 1919, and $1,243,727,769 in 1918. But 
the situation is not as unfavorable as the comparative figures 



might lead one to conclude. Though the figures for exports 
are lower, they are nearly equal to 55 per cent, of the net 
national debt. That they are lower than those for 1919 is due 
inerely to the marked decline in grain prices during recent 
months. Canada has 100,000,000 bushels more of wheat this 
year than last for export, which means possibly $170,000,000 
more in exportable values; and in the next few months it will 
swell the export figures. So while returns for exports may 
lower the potential value of this department of the nation's 
trade is much higher than it was in either 1919 or 1918, and 
that in spite of lower prices. It is furthermore to be taken 
into account that the decline has been in foreign produce, 
so that the exports of Canadian produce have remained 
nearly stationary. 

Much has been said about the decline in exports, but the 
real gains made by exports should rather have commanded 
attention. During the twelve months the value of commodi- 
ties exported exceeded by $100,000,000 the value of all muni- 
tions exported during the four years of war. It was also equal 
to three-fourths of the national war expenditure. That a new 
record was not established is easily explained. During the 
year, owing chiefly to the rate of exchange and to the further 
fact that many of the countries of Europe are now drawing 
from other sources commodities fonnerly taken from Canada, 
exports to the United Kingdom and France fell off to the ex- 
tent of probably $200,000,000 during the year, of which pos- 
sibly $170,000,000 is represented by reduced exports to the 
United Kingdom. Among other things there was a loss of 
$100,000,000 in munitions. 

Strong Spots in Export Figures 

This has been partially made up for by an increase of 
nearly $100,000,000 in exports to the United States. That, 
taking into account this serious loss of expoi'ts to Europe and 
the decline in prices, the exports are so nearly equal to 
those of last year, while much greater quantities of grain at 
good prices remain to go out, is strong proof that, all things 
considered, the export trade of Canada is in a satisfactory con- 
dition. 

In passing a word should be said on the recuperative 
powers of the export trade manifested during the last two 
years. In 1917 the exports of cartridges and other explosives 
were valued at $435,000,000; in 1918 they were $273,000,000; 
even in 1919 they exceeded $100,000,000; but in 1920 they 
dropped to less than $2,500,000. Notwithstanding this serious 
loss the industries of the Dominion, engaged solely in peace- 
time production, last year turned out for export a volume of 
commodities much exceeding in value that of 1918, when 
Europe was paying Canada famine prices for almost any 
product. For this recovery credit is due chiefly to the agri- 
cultural and to the pulp and paper and lumber industries. The 
pulp and paper exports for the year are estimated at $175,- 
000,000, as compared with $70,661,000 in 1918, and $86,996,371 
in 1919. Indeed, the progress made by this industry, reads 
like a fairy tale and merits special attention. 

In the fiscal year 1913 the value of pulp and paper exports 
was $11,837,344. The advance to $58,753,906 for the calendar 
year 1917. and to $86,966,371 in 1919 was surprising, but it re- 
mained for 1920 to give a remarkable demonstration of growth. 
In April the value of these exports was $8,172,356, but in Sep- 
tember it had jumped to $18,224,356; that is to say, the value 
increased by 120 per cent, in six months. In September alone 
the value of pulp and paper exported w-as within $800,000 of 
that for the whole of the fiscal year 1914. It is said on good 
authority that last year Canada produced 75,000 tons more of 
pulp and paper than Noi-way, Sweden and Finland combined. 



January 7, 1921 



THE MONETARY TIMES 



Moreover, this is a permanent industry insofar as the present 
generation of Canadians is concerned. This remarkable dem- 
onstration of recuperative power when many good judges ex- 
pected a collapse imparts confidence for the future. 

Exchange Affects Trade Figures 

Paradoxical as the statement may seem to be, it is never- 
theless true, that insofar as exports to the United States are 
concerned their real value to the country is not disclosed by 
the trade returns, for while they were nominally valued at 
probably $600,000,000, the rate of New York funds, which 
ranged at 12 per cent, during the year, increased the returns 
to the Canadian exporters by approximately $70,000,000 — that 
is to say, these exports were really worth over $670,000,000 to 
the country. On the other hand, imports from the United 
States are not always increased in value by an amount equal 
to the rate of exchange, for it must be remembered that in 
order to hold their trade a very large number of American 
firms divide the premium with their Canadian customers, while 
some, indeed, bear it entirely. 

In comparing the export trade of 1920 with that of 1919 
and 1918 it must also be taken into account that only a small 
portion of the business done during the year just closed was 
obtained through government credits, or through long ad- 
vances made by the banks, but rather on such terms as are 
usually granted in the ordinary run of commercial transac- 
tions. But not so the business of 1918 and 1919, a large part 
of which was secured through liberal government credits, for 
during the war period the aggi'egate advances extended to 
allied governments probably reached $1,100,000,000, to which 
should be added bank credits exceeding $200,000,000. 

Compared with that of the United States the export trade 
of Canada during 1920 was very creditable. The exports of 
the great republic for the year are estimated at $8,000,000,000, 
a new high record. But this is only $75 per capita, whereas 
Canada's exports were probably $140 per capita. In other 
words, the per capita export trade of this country during 1920 
was 85 per cent, greater than that of the United States. Be 
it also remembered that this huge American export trade is 
sustained by nearly $4,000,000,000 of private credits. Had 
such credits been at the disposal of Canadian trade 1920 would 
have left all previous export figures far behind. 

Large Increase in Imports 

Imports took a long leap forward during the year, being 
valued at approximately $1,360,000,000, an increase of approx- 
imately $420,000,000 over the preceding year, and nearly $450,- 
000,000 over 1918. In 1920 the imports were at the rate ol 
$115,000,000 a month, whereas in 1919 the rate was but $104,- 
557,000, and in 1918 $76,000,000. The increase may be attrib- 
uted chiefly to the removal of the 7% per cent, customs war 
tax and to the practice of Taluing imports from countries, 
whose currency as compared with the Canadian dollar is de- 
preciated, at the current rate of exchange. The imports from 
the United States were approximately $930,000,000, or at the 
rate of about $78,000,000 a month. This means that Canada 
imported $200,000,000 more of commodities from the republic 
than she did in 1919. Imports from the United Kingdom 
show the lai'gest percentage of increase, 110 per cent., though 
the increase in dollars is but a little over $150,000,000, the fig- 
ures being $240,000,000, as compared with $87,651,725. 

As an evidence of not only the value, but of the rapid 
growth of trade with the United States, it may be pointed out 
that the increase alone in imports during 1920 was within 
about $40,000,000 of the value of all imports from the United 
Kingdom. This was piled up in spite of the rate of exchange, 
which operates to retard purchases from the Republic, while at 
the same time it stimulates imports from the United King- 
dom. During the year the value of imports from the United 
States was probably equal to the value of all imports from all 
countries in any previous calendar year. Ten years ago the 
imports from all countries were only valued at $.370,000,000. 
That, in spite of the obstacle, these imports increase so rapidly 
is due undoubtedly to the fact that Canada is now drawing new 
capital almost entirely from the United States, a large portion 



of which necessarily enters in the form of impoi'ts, and to 
stronger efforts in both countries to promote international, 
financial and commercial relations. 

Influence of Exchange Rates 

The influence of the rate of exchange on e.xport trade was 
more marked during the year than ever before. Among other 
things it has made the United States Canada's best customer, 
the United Kingdom having taken second place. Canada had 
so increased lier exports to Europe during the war period and 
her name stood so high among the nations of that continent 
that prospects for the continuance of this trade seemed very 
bright, and confident predictions were made by some of the 
best-informed over the importance of this new trade outlet. 
But in general these predictions were made without due regard 
to the influence of exchange after the pegs had been removed 
from sterling in New York. During the past year the effect 
has been most apparent. As has already been noted, exports 
to the United Kingdom and the continent of Europe declined 
to the extent of over $200,000,000. The reason is obvious, for 
with sterling at a discount ranging from 10 to 20 per cent, in 
Canada, and with the currencies of other countries in Europe 
subjected to an even greater discount, they cannot aff'ord to 
buy here any more than is absolutely necessary. 




On the other hand, the rate of exchange which has re- 
duced exports to these countries has strongly stimulated them 
to the United States, the gain having been equal probably to 
at least $100,000,000 during the year. So that much of what 
has been lost in trade with Europe has been regained with the 
Republic. 'Wbile possibly 30,000,000 bushels of wheat were ex- 
ported to the United States, which may be attributed almost 
solely to the absence of a strong direct demand from the 
United Kingdom, the increase was due largely to the heavy 
demand for pulp, paper and lumber, and the higher prices 
which these products commanded over other years. It is un- 
doubtedly true, however, that the whole range of commodities 
that could be sent south was strongly afi'ected by the premium 
on New York funds, which made the American market by far 
the most profitable of any outside of the country. 

The change of direction taken by so large a portion of 
Canada's export trade is of major importance. Only four 
times since 1873 has this occurred, namely, in the fiscal years 
1882, 1888 and 1889, and during the last calendar year. In the 
years immediately preceding the outbreak of war the United 
Kingdom was taking from $30,000,000 to $60,000,000 worth 
or commodities more than from the United States. In 1915- 
16 this excess was $250,000,000; in 1916-17 it was $465,000,000; 
in 1917-18 it was $421,000,000, and in 1918-19 it had dropped 
to $83,000,000, and in the calendar year 1919 to $46,000,000. 



THE MONETARY TIMES 



Volume 66 



IMMIGRATION INTO CANADA, 1919-20 

(Figures furnished to " The Monetary Tinics " by Mr. W. D. Scott, Superintenileni of Immigration. Ottawa.) 
Statement of Immigration to Canada during the Fiscal Year 1919-20, compared with that of 1918-19. 



United 
Stales 



1!)19 

A!'..l 

-Mav 

lune 

July 

August 

September . 

October 

November . . . 
December. . . 

1920 

January 

Februar\- . . . 
.March..' 

Totals... 



4. 'id 


6,310 


209 


4,. 554 


i:u 


3,277 


30-1 


2,719 


199 


3,610 


2.S-_' 


2,835 



616 

634 

1,810 
1,170 
3,442 



2, 194 
1,796 
2,226 

2,085 
2,641 
6,46S 



Other 
Countries 



383 
438 
461 
444 
706 
344 
626 
799 
576 



805 
753 



7,073 



7.123 
5,261 
3,895 
3,468 
4,515 
3,461 
3,436 
3.195 
3,436 

4,633 

4,616 
10,663 



57,702 





191920 




Percentages 
of 










Increase 


irilish 


United 
States 


Other 
Countries 


Totals 


and 
Decrease 
Increase 


3,244 


7,524 


5UU 


11,268 


58 per cent. 


4,534 


5,198 


465 


10,197 


94 


2,601 


4,707 


505 


7,813 


101 


5,998 


4,450 


629 


11,077 


219 


9,428 


5,149 


583 


15,160 


236 


7,792 


4,852 


775 


13,419 


288 


9,394 


4,069 


949 


14,412 


319 


4,594 


2,772 


708 


8,074 


153 


3,244 


2,149 


908 


6,301 


83 •■ 


2,089 


1,665 


465 


4,219' 


- 9 per cent. 


2,008 


1,951 


638 


4,597 




4,677 


5,170 


952 


10,799 


1 


)9,603 


49,656 / 


8,077 


117,336 


103%incre'se 









Statement of Immigration to Canada, during the period, April to October, 1920, compared with that of the corresponding months of 1919. 

1920-21 



Month 



April 3,244 

-May 4,534 

June 2,601 

July 5,998 

August 9,428 

September | 7,792 

October I 9,394 

Totals 42,991 



1919-20 



United j Other 
States Countries 



Totals British 



United Other 

States Countries 



7,524 
5,198 
4,707 
4,450 
5,149 
4,852 
4,069 



35,949 



500 
465 
505 
629 
583 
775 
949 



11,268 
10,197 
7,813 
11.077 
15,160 
1.3,419 
14,412 



6,229 
12,414 
9,844 
10,472 
7,404 
6,405 
7,602 



6,324 
5,353 
4,720 
4,.S01 
5,838 
4,227 
3,945 



83,346 



60,370 



734 
1,844 
1,780 
1,888 
2,510 
2,718 
3,304 



14,778 



13,287 
19,611 
16,344 
16,661 
15,752 
13,350 
14,851 



Percentages 
of 



j 18 per cent. 
I 92 
109 
50 

I 4 



109,856 I 32 per cent. 





HOMESTEAD ENTRIES IN CANADA, 1898-1920 




Years 


Total entries 


Entries by 
English 


Entries by 
Scotch 


Entries by 
Irish , 


Entries by 
Americans 


Entries by Conti- 
nental Immigrants 


Calendar Year 














1898 


4, ,848 


489 


161 


75 


581 


1,270 


1899 


6.689 


578 


192 


97 


1,064 


1,796 


•1900 


7,420 


3.50 


95 


50 


833 


1,643 


Fiscal Year 














1901 


8,167 


659 


182 


99 


2,026 


1,866 


1902 


14,673 


1,096 


300 


184 


4,761 


2,653 


1903 


31,383 


2,816 


724 


336 


10,942 


7,260 


1904 


26,073 


3,486 


911 


267 


7,730 


4,909 


1905 


.30,819 


4,284 


1,225 


421 


8,532 


4,999 


1906 


41,869 


5,897 


1,657 


543 


12,485 


5,955 


tl907 


21,647 


3,032 


807 


252 


6,059 


2,951 


1908 


30,424 


4,840 


1 ,026 


339 


7,818 


5,373 


1909 


39,081 


5,649 


1,310 


506 


9.829 


7,265 


1910 • 


41,568 


5.4,59 


1,326 


546 


1.3,566 


6.696 


1911 


44,479 


6,161 


1,291 


492 


13,0.38 


8,793 


1912 


.39,151 


5,739 


1,041 


476 


10,978 


9.044 


1913 


33,699 


4,452 


836 


307 


8,895 


7,757 


1914 


31,829 


3,894 


966 


400 


7,293 


8,139 


1915 


24,088 


2,974 


800 


363 


4,334 


6,881 


1916 


17,030 


2,374 


700 


314 


2,435 


3.899 


1917 


11,199 


1.469 


496 


194 


1,734 


2,1.32 


1918 


8,319 


888 


285 


142 


2,094 


1,094 


1919 


4,227 


639 


182 


87 


876 


447 


1920 


6,732 


1,2.52 


360 


154 


1,331 


.574 


tl921 


1 3,784 


611 


169 


76 


754 


441 



.Six months ended June 30th. f Nine months ended March 3Ist. J 7 months to October. 



January 7, 1921 



THE MONETARY TIMES 



Political Leaders Discuss National Issues 

Tariff is Main Subject Dealt Willi in Western Towns — Premier Meighen 
Upholds Present Tariff — Mackenzie King, Liberal Leader, Advocates 
Retrenchment— T. A. Crerar, Progressive Leader, Stands For Tariff Reduction 



Hon. Arthur Meighen, premier of Canada, and leader of 
the National Liberal and Conservative party, which succeeded 
the Unionist party in July last, in a speech at Winnipeg on 
October 25, at the commencement of a tour of Western Can- 
ada: — 

"There must be," said Premier Meighen, "such a tariff as 
will make it pay Canadian industries to remain in Canada, and 
make it pay industries to grow and make good Vvithin this 
country. Up to that point, and not beyond that point, the tar- 
iff in Canada on any class of goods should go. I ask the peo- 
ple of Winnipeg, if you first of all decide that you must take 
account of the needs of industry and the need of keeping them 
in this country, can you possibly adopt a more restricted prin- 
ciple than that? We do not intend to go further. There is 
no value whatever in a tariff that does less. I did not see 
how to find out what is necessary except by the most careful 
and thorough enquiry that can be made. That is the course 
the government is pursuing, and before the electors in this 
country are asked to decide between our course and the vag- 
aries of our various oppositions they will have a definite tariff 
from us in black and white. By the principle I have defined, 
by the limits I have clearly set out, that tariff will be con- 
structed. 

"If I am asked whether it will be possible to have a lower 
scale than prevails to-day or not, I say that must await the 
completion of the investigation. For myself, I would hope 
that in the final result it would be found not to be higher, and 
perhaps lower, than it is now; but I believe the interest of 
Canadians of every class require that Canadian industries re- 
main Canadian industries, and that Canadian industries, not 
American industries grow with the growth of Canada. 

"The authority of Parliament over its executive is just as 
complete, just as final, just as supreme at this hour and has 
been at every moment of the last six years, as it ever has been 
in the history of Canada or any country on earth. There has 
never been a single day when Parliament could not, by a ma- 
jority vote, have voted the government from office or forced it 
to a general election." 

The premier then proceeded to deal with the tariff'. There 
were only the tariff principles, he said — protective and free 
trade. "I believe the protective principle can be abused," he 
said. "I certainly believe it can be too high. I believe it has 
been abused. I believe in places and at times it has been too 
high, but I don't believe it can be abolished. There are many 
who believe that there is little, if anything, to be lost and very 
much to be gained by practically a prohibitive tariff. With 
that opinion the government of Canada holds no sjonpathy, 
and against the prevalence of that opinion it will stand just as 
firmly as against the prevalence of the opposite opinion, the 
theory of free trade. If we abandon the principle of protec- 
tion we will pay a sure and heavy penalty and every class will 
share in the calamity. We do not intend any. system of shut- 
ting out imports. We must hold the level of our tariff down 
to the minimum that will maintain fair but active competition 
with industries outside. 

"The big task of the next few years is the development of 
the resources of Canada. Constructive plans that bring real 
results in the development of our resources must be thought 
out and got under way, and_policies consistent with these plans 
must be pursued. Do not let the west of this counti-y get the 
idea that the east must remain the business centre or even 
the manufacturing centre of this Dominion. A territory that 
has the coal and the ore and the mineral wealth of Western 
Canada is bound to become a great industrial land." 

Hon. W. L. Mackenzie King, leader of the Liberal party 
in the House of Commons, in a speech at Brandon on Novem- 
ber 6:— 



"The real issue to-day is the big interests versus the 
classes that represent the masses of the people," stated the 
Hon. Mackenzie King. The parties against the present gov- 
ernment are not united, and this is the strength of the present 
party in power. "I have no opposition to any group in Can- 
ada, but I come here to state that I am standing for a party of 
progress, which will influence and add strength to any body 
for progress. The time has come when those standing for 
progress .should co-operate, so that when the fight does come 
we can stand united against the big intei-ests." 

"The greatest problem to-day is the cost of living, and 
there is not a person in Canada to-day who is not affected by 
it," stated the speaker. The duty of the government is to 
seek some solution for the high cost of living, but up until the 
present time they have done nothing. Three great policies 
have been outlined in the Liberal platform, and briefly Mr. 
King outlined them as (1) retrenchment of public expendi- 
tures, (2) a revision of the tariff downward, and (.3) the elim- 
ination of profiteering. 

Dealing with the first policy, the opposition leader told 
of the immense amount of money Canada had to pay each 
year as interest on its national debt, of the huge expenditures 
that arose out of the war and have to be met, and the expense 
of carrying on the government of the country. The only solu- 
tion, said Mr. King, i?o a more economical method of handling 
the finances of the country is in a complete change of admin- 
istration. Until we get a Parliament representative of the 
people we will never get anywhere. 

With regard to the tariff, the speaker said that the Lib- 
erals had laid down their policy in their platform of last Aug- 
ust, and by that policy the Liberal party would stand or fall. 
He then read the tariff policy of the party showing the revi- 
sion to be sought, and said that it was a tariff in the interests 
of both the producers and the consumers. The purpose of the 
custom duties was for the purpose of revenue only, and the 
Liberals naturally seek freer trade. The point is that the 
necessities of life should be as free as possible so that the 
masses of the people can get as great quantities as they want. 
The cost of living can only be reduced by increased production. 
The war has destroyed wealth, and now we must make more 
wealth. 

Hon. T. A. Crerar, leader of the Progressive party in Can- 
ada, in a speech at Prince Albert, Sask., on November 4: — • 

As to the tariff", Mr. Crerar urged more attention to the 
development of the basic industries rather than artificial stim- 
ulation for industries asking protection. The tariff commis- 
sion had gathered a mass of contradictory evidence, and the 
Progressive leader advocated that any industry needing pro- 
tection should place its claims in the open before a committee 
of the House of Commons. He cited Great Britain's recovery 
after the war as an instance of what free trade had done, as 
compared with such protectionist countries as Germany, 
France and Italy. 

Canada had many problems before the war, said Mr. 
Crerar, but the war had magnified and intensified these prob- 
lems. For instance, before the war the public debt was $333,- 
000,000 — now it is $2,2.50,000,000. Yet nobody in Canada be- 
grudged that increase. There was also the geat problem of 
taxation. History showed that it was not the amount of 
taxation, but the manner of imposing taxation, which counted. - 
Some criticism had been directed against the farmers' or- 
ganization. The declarations of political principles laid down 
by the farmers before the people were not the product of a few 
men, but wei-e produced by great conventions in many prov- 
inces, and in succeeding years. Yet this platform was criti- 
cized as a class policy. This criticism came from those who 
were interested in keeping the common people down to the 
level they had been heretofore. 



THE MONETARY TIMES 



Volume 66 



Canadian 
Government and 
Mnnicipal 
Bonds 



Victory 
Bonds 



Sold 
Quoted 



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that go to make an at- 
tractive investment. The 
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Consult us about your 
investment problems. 



Wood^ Gnndy & Company 

MoTe°al Canadian Pacific Railway Bu.ldiog Sask\^-J 

Winnipeg Toronto London, Eng. 



January 7, 1921 



THE MONETARY TIMES 



25 



Provincial Premiers Write of 1920 and Outlook 

Opinions .Expressed are Optimistic of Recovery from Present Period of Depression — 
Turning Point Has Been Safely Passed — Review of Year's Developments in the Provinces 



NOVA SCOTIA 







By 


H 


anorable 


4. 


MURRAY 


P 


remier. 



alllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 



No other portion of Canada is more prosperous to-day 
than the Province of Nova Scotia. The farmers were 
blest during 1920 with bountiful crops, which were harvested 
in excellent condition. The apple production was exceeded 
by only two other apple crops in the history of the Nova 
Scotia fruit industry, and the output of creamery butter shows 
a gratifying increase. While prices have declined in sym- 
pathy with world-wide conditions, the end of the year finds 
our farmers with a balance on the right side of the ledger. 

The output of coal during the past year reached approxi- 
mately 5,700,000 tons, as comp&red with 5,004,757 tons in 
1919, an increase of about 14 per cent. Sales amounted to 
5,082,230 tons, as against 4,459,647 tons in the previous year, 
an increase cjlso of very nearly 14 per cent. The coal in- 
dustry of Nova Scotia is now on a basis that will support a 
largely increased production as soon as conditions will war- 
rant such development. 

In the lumber industry weather conditions were ideal for 
operations. The total production was 350 million feet, which 
is valued at $12,250,000. The cut exceeded normal by about 
50 million feet. Of the total cut a-bout 90 per cent, has been 
sold, and about 60 per cent, shipped, leaving about 40 per 
cent, on hand. It is estimated that of the supplies disposed 
of, 25 per cent, were consumed locally, 10 per cent, went to 
Upper Canada, 30 per cent, to the United States, 25 per cent, 
to the United Kingdom, and the remainder to the West 
Indies, South America and Newfoundland. 

The deep-sea fishing fleets had a- successful year, while 
the production of the shore fisheries, with the exception of 
lobsters, was under the average. All the branches of the in- 
dustry — fresh, salt and smoked — have been carried on in 
about the same volume as during the preceding year, but at 
a lower range of prices. The industry, in general, is suffer- 
ing from a forced curtailment of buying due to the financial 
situation. It is confidently expected, however, that conditions 
will improve in this industry as soon as the accumulated 
stocks on hand will be cleared off. 

To sum up, owing to the flourishing condition of two of 
our leading industries, farming and coal mining, and the very 
fair condition of the steel and other industries, it may be 
truthfully stated that Nova- Scotia has again earned the right 
to be classed among those countries where a certain buoyancy 
of trade is maintained by virtue of the variety of its re- 



giiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiijiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiyiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitt^ 



NEW BRUNSWICK 




Honorable 
W. E FOSTER. 



iiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 



illlllllllllllllllillllllllilllllllllllllllllllllllllllllllllllllllllllllllllH 



NEW BRUNSWICK has not been simply marking time in 
1920. All classes of people have realized the import- 
ance of gaining a fresh and firm foothold on business and 
trade after the uncertainties that prevailed during and imme- 
diately after the war period. 

The greatest industry, lumbering, was followed wi.th 
great energy. Enhanced prices in the later months of 1919 
and the spring of 1920 resulted in increased production of 
lumber and pulpwood. Wages were high and costs advanced 
proportionately. Falling prices in later months have given 
warnings which are being wisely heeded. 

Employment is not so plentiful as it was. The cessation 
of road work, in which the Province has spent liberally, has 
diverted such labor to other channels. Manufacturing indus- 
tries are slacking up and further diversion will be necessary. 

Agricultural production was satisfactory and the prices 
fairly good. Lower prices mean greater efforts on the part 
of those engaged in this industry, and this, no doubt, will be 
as true in the future as in the past. 

In spite of these drawbacks, due to the falling prices the 
world over and reconstruction efforts, there is a feeling of 
great confidence in New Brunswick. The Government, of 
which I am the Prime Minister, is aiding the development 
of the water powers and assisting wherever possible to ad- 
vance the interest and prosperity of the people. Teachers' 
salaries have advanced and the profession is encouraged to 
carry on with vigor and efficiency. Our bonds are selling as 
high as those of any Province in Canada. Improvement in 
the people's means of transportation, the highways, has been 
very great. We are entering 1921 with courage, hope and 
faith in our people and Province, confident that progress and 
prosperity awart our united efforts. 




THE MONETARY TIMES 



Volume 66 



gllllllllllllllllilllllllllllllllllllllllllHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIllllllllllllllllllllllllllllllllllllllllllllllllW 



BRITISH COLUMBIA 




g-iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 



THOUGH the wheels of some of the principal industries 
have slackened within the past month or two, a com- 
prehensive view shows that the yea^r to date has been on the 
whole one of prosperity for British Columbia. 

The great lumbering industry promises a good average 
for the vear, though at present trade is quiet. Logs scaled 
during the first nine months of 1920 totalled 1,400,000,000 
feet as against 1,438,000,000 for the whole of 1919. The 
domestic lumber market is at present very quiet, largely 
owing to the advance in freight rates of September 15th last, 
which discriminated against Coast shippers to the east. The 
advance, being on a percentage basis, favored the southern 
pine operators with their shorter haul to the eastern market. 
Export shipments overseas for the year show some increase, 
with 88,380,299 board feet for the first nine months as 
against 72,310,130 for the same period last year. Financial 
conditions in Australia, China and Japan have retarded 
recent business to those points. 

The pulp and paper trade continues to gain steadily, and 
last year's total output of 123,000 tons of newsprint should 
be surpassed. The demand for pulp and paper, and the de- 
pletion of eastern pulp wood stands has turned the attention 
of eastern manufacturers to the timber stands and water 
powers of British Columbia. Several new pulp companies 
have been incorporated and will be operating as soon as 
plants can be established. 

The mining industry shows satisfactory returns, though 
there is naturally considerable falling off after the abnormal 
activity of the war period. Such developments, however, as 
that of the Canada Copper Company near Princeton, and 
others in the Portland Canal district, promise well for the 
future. 

In the fisheries the province still holds a premier place 
in the Dominion. Last year the value of the British Colum- 
bia catch was estimated at 4.5 per cent, of that of the whole 
of Canada. This year, owing to the lower prices for the in- 
ferior grades of salmon, it will probably be smaller. 

The government has been overhauling and rehabilitating 
existing irrigation systems, and in the Southern Okanagan 
valley is inaugurating a new system which should bring 
about 7,000 acres under cultivation. All this should add ma- 
terially to the future productiveness of the province. 

A survey of the industries of the province as a whole 
shows satisfactory progress for the present year, and 
promises well for the future. British Columbia does not 
carry all its eggs in one basket or all its wealth in one valley, 
and "out of its varied industries of lumbering, mining, farm- 
ing and fishing, is gradually accumulating a basis of sub- 
stantial wealth. 




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SASKATCHEWAN 




Honorable 

W. M. MARTIN, 

Premier 



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IT is a great pleasui-e to be called upon to write about 
Saskatchewan at this particular moment, in view of the 
fact that, notwithstanding post-war conditions and disap- 
pointing crops, we have never been more justified in looking 
forward vi'ith confidence to Ss'Skatchewan's future, and in 
this remark I am sure I can include the whole prairie country. 
The budget recently presented to the Legislature by my 
able colleague, Mr. C. A. Dunning, showed an excess of re- 
ceipts over expenditure of ,$1,934,62.5, and a net cash surplus 
of $1,801,095. In view of this surplus the Supplementary 
Revenue Tax has been abolished. This tax was first levied 
thirteen years ago, and consisted of a levy of one cent per 
acre, one of its objects being to compel speculating owners 
of unused lands to contribute to the educational needs of the 
country. Since then all taxes based on acreage alone have 
been replaced by an assessment on value. The last remaining 
vestige of acreage taxation was the Supplementary Tax. Of 
the proceeds of this tax 80 per cent, went to rural schools, 
5 per cent, to the Agricultural College, 5 per cent, to the Sas- 
katchewan University and 10 per cent, to secondary educa- 
tion. 

The public debt of the Province is on a satisfactory 
footing. In a new Province the initial development expenses 
were necessarily heavy. Large expenditures were absolutely 
necessary in public buildings, roads and bridges, and for the 
due support of education. The gross debt stands at $41,- 
549,480. It is made up of two different kinds of indebtedness, 
a dead-weight debt which has to be paid off from the revenue 
derived from taxation, and a debt incurred for revenue-pro- 
ducing utilities. This latter class of indebtedness takes care 
of itself, the revenue-producing utilities paying their own 
way, and fi-om the point of view of being a burden to the 
State, it may be ruled out of consideration. The dead-weight 
debt of the Province stood &t $19,416,237, a relatively small 
amount. Without going into fui-ther detail I think I have 
said sufficient to indicate that the financial position of the 
Province is satisfactory; but I may add one other point which 
was brought out in Mr. Dunning's budget speech, and that is 
that Saskatchewan can borrow money as advantageously as 
Ontario, the wealthiest Province in Canada. There is a 
third liability, but it is a contingent one, of $28,582,011, re- 
sulting from the Government guaranteeing C.N.R. and G.T.P. 
branch line bonds, but there is little likelihood of the Pro- 
vince being called upon to make the contingency good. There 
are some other contingent lia^bilities on account of the Sas- 
katchewan co-operative creameries, municipal hail insurance, 
seed grain and drainage schemes, relief extended under 
special circumstances to municipalities, and so on, but these 
are not sufficient to affect the general situation very much, 
as the prospects or repayment &re excellent. 



January 7, 1921 



THE MONETARY TIMES 



MANITOBA 




ALBERTA 




By 

Honorable 

C. STEWART, 

Premier 



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IN its agricultural industry Manitoba has "had still an- 
other very satisfactory year, the yield of wheat over the 
whole province being above the average of the past ten 
years, while the coarser grains were proportionately good. 
Isol&ted districts suffered somewhat from summer drought, 
but on the whole, the year 1920 gives renewed confii-mation 
to the declaration that "Manitoba is the Sure Crop Pro- 
vince." Many years have passed since this province has had 
anything in the nature of a serious crop failure, and the 
possibility of such a visitation is steadily growing less as our 
farmers continue to adopt proved methods in diversified 
agriculture. At the moment our farmers are suffering from 
the fact that while the cost of production was at its peak 
during the year, the price of their product has been among 
the first to be affected in the readjustment that is now well 
under way. This, however, does not a-ffect the fact that 
Manitoba farms are just as productive as ever, and that 
Manitoba farmers are constantly improving their methods. 

Conditions in the industries based on other natural re- 
sources of the province have been normal. The a^nnual out- 
put of our lake and river fisheries stimulated during the 
war by the scarcity and high prices of beef, has remained 
above pre-war figures, and will, undoubtedly, hold its present 
place. Opening of transportation to the valuable fishing 
grounds in our northern lakes will further increase the an- 
nual yield. Lumbering, never a very large industry in Mani- 
toba, shows a satisfactory increase, while our large tracts 
of pulpwood remain as yet untouched; they await the open- 
ing up of our far northern stretches with their natural riches 
such as can only be guessed until they have been properly 
prospected. Mining in northern Manitoba is now apparently 
on the very eve of the long-expected development. 

During the past five years there has been a large ex- 
penditure for good roads, extension of the telephone service 
and completion of the new legislative buildings of the pro- 
vince. By careful management the financial position of the 
province has been strengthened, and the credit of the pro- 
vince has been ret&ined at high levels. The government has 
safeguarded zealously, not alone the credit of the province, 
but the credit of the municipalities and the school districts 
as well, with results that speak for themselves. During 1920 
thei-e was established the Provincial Savings Institution, the 
people of the province being invited to deposit their savings 
with the government. A beginning has thus been made 
towards securing eventually within the bounds of the province 
itself the money for ca^pital requirements. In this connection 
it must be noted that the people of Manitoba feel that the 
justification of the claim of the province for control of its 
minerals, timber, water powers, fishei-ies and other natural 
resources should be recognized and established. 




SEEDING opened later than usual, but under very favor- 
able conditions. During the fall of 1919 and the winter 
and spring of 1920, a generous supply of moisture saturated 
the soil, producing excellent seeding conditions. As usuaJ, 
seeding began first in Southern Alberta and went forward 
more rapidly than in the north, where heavy rains in the last 
half of May delayed seeding to a point that made farmers 
anxious for a time. The lateness of the season, however, wa-s 
soon compensated for by a rapid growth. The seed quickly 
rooted and grew with great luxuriance, owing to steady heat 
and moisture throughout the summer. 

One of the most satisfactory features of the season was 
the phenomenal growth of grass. The scai'city of feed in a 
large portion of the province during the winter induced the 
farmers who had large supplies of feed (especially in Central 
and Northern Alberta) to sell below their normal needs. 
Coupled with the lateness of the spring, this feature in the 
general situation caused our farmers many anxious days, but 
with the beginning of the grf'ss the country quickly recov- 
ered and the feed famine was forgotten in a few weeks. The 
universal expression of satisfaction by all livestock men was 
"How Alberta can come back." 

The scarcity of feed and the cost of tractor supplies in- 
creased the cost of seeding operations and limited the acreage 
of whe&t. Successful efforts were made, however, to in- 
crease the acreage of feed grains. The favorable ripening 
season which continued into October resulted in a most 
bountiful harvest of oats and barley. It is regrettable, how- 
ever, that the farmer has not benefited by the increased pro- 
duction. By the time his crop was ready for market, prices 
had so declined that he has had an inadequate reward for 
a year of anxious and costly toil. He is left wondering why 
the price of his commodities has so rapidly declined while 
those he is forced to buy (though they contain many raw 
materials produced on the farm) still cling to unapproach- 
able levels. 

Such a situation is not very encouraging to increased 
production for the coming year. Alberta farmers, however, 
are not dispirited. More fall plowing has been done and 
more land is ready for seeding next spring than for several 
years p&st. As an evidence of the unbreakable faith Alberta 
farmers put in their province, it is refreshing to cite the 
pledges of the farmers of the Lethbridge Northern Irriga- 
tion District to bond their land for irrigation works by a 
vote of 278 to 16. 

The year has been a successful one in the coal mining 
industry. The market for Alberta coal is widening and in- 
creasing. Shipments 'are going east to Ontario points and 
west to the Pacific coast. Production up to the end of No- 
vember was 6,750,000 tons and it is estimated production will 
pass the 7,000,000 mark by the end of the year. It is the 
largest on record. 

The ordinary statistics of bank clearings, post office and 
customs returns and building returns indicate a satisfactory 



THE MONETARY TIMES 



Volume 66 



increase except in tlie building returns. In the two principal 
cities buildings erected this year total $6,000,000. Still hous- 
ing is scarce. The liigh building costs and the fear that 
lurks in the minds of those who formerly invested in home 
building property, that city taxes will wipe out all profits 
no matter how high rents go, is causing a slump in the num- 
ber of houses available for a steadily increasing population. 
On the other hand, there are evidences of increased interest 
on the pa-rt of investors in the natural resources of the 
country. The number of application to the Provincial Utili- 
ties' Commission doubled in 1920 over the number in 1919. 
A number of joint stock companies that were quiescent dur- 
ing the war are now applying to be placed on the register. 
Many new companies are being organized and 400 certifi- 
cates of incoi-poration have been issued during the year. 

There has been an increase in the commercial and manu- 
facturing industries in the past year. Many new firms have 
been added to the business directories of our cities. There 
have been extensions of plant and improvements in equipment 
of many of the old-established houses. It is a sign the pro- 
vince is becoming more self-sustaining every year. Condi- 
tions seem to be moving to a steady readjustment from those 
prevailing immediately after the close of the war. There is 
no doubt costs are falling, that there is a growing surplus of 
lator that is leading to the survival of the fittest on the job. 
Business men and employers seem to be anxious to get back 
to a basis of steadier and better production, and hope by re- 
ducing the cost of production to be able to promote increased 
consumption by all classes, instead of by those who were 
fortunate during the war. 




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QUEBEC 




By 

Honorable 

L.A.TASCHEREAU 

Premier 



WHILE moving in an orderly and progressive way in 
every sphere of human activity, the people of the pro- 
vince of Quebec have, in 1920, devoted their attention chiefly 
to agricultural development. Realizing that the world-short- 
age in food is threatening to bring about a fateful crisis and 
has become the most vital after-war problem, members of 
the government as well as our leading professional and busi- 
ness men were all agreed that everything must be done to 
help and increase agricultural production. Our farmers 
proved equal to the task laid upon them, and set about to 
make of Canada a self-contained nation as to food and 
supply some of the foodstuffs that must be provided for the 
millions dependent on the land. 

The tiller of the soil was considered one of the pivots 
upon which the result of the great war turned; he appears 
to-day to be the axis upon which the destiny of European 
and American nations revolves. Since there is no larger 
sphere of duty to our country and to the world, the province 



of Quebec may well take pride in the patriotic action of the 
farming communities. 

Our province had in 1920 over 175,000 farmers at work, 
and the area under cultivation was considerably increased. 
In the remoter districts of Abitibi and Lake St. John hardy 
pioneers kept on gaining ground and laid under the plough 
thousands of acres of productive soil, which yielded in many 
places forty bushels of oats to the acre. The value of our 
crops this year was $327,063,000 as compared with $307,994,- 
280 ill 1919. The average yield of cereals per acre has been 
far superior to that of the previous year, and largely com- 
pensated for the small decrease in the yield of hay and 
corn caused by the drought at the beginning of the summer. 
Although the Quebec farmer is more prosperous than 
he ever was, he remains the man of simple life, of frugal 
tastes, fond of his home, and still puts his pride in raising a 
large family. He is a healthy type of Canadian. In follow- 
ing up the best methods of agriculture that h&ve been evolved, 
he is developing into a most effective worker of the land. 

Thanks to her forest wealth, our province was also able 
during this year to answer a most pressing want. Our pulp 
and paper mills worked at their full capacity and many had 
to be enlarged. Statistics are not yet available to show the 
number of tons of pulp produced, but 1,000,000 tons should 
be a conservative figure. As to the total value of all the 
raw forest products for the year, it will amount to over 
$45,000,000. 

In the first six months of this year, our province ex- 
ported 778,246 cords of pulpwood valued at $9,556,255, and 
from April to September for $103,949,481 worth of pulp and 
paper. 

In order to assist the pulp mills and other mills, and 
to create new thriving manufacturing towns such as 
Grand'Mere and Shawinigan Falls, the government is fol- 
lowing up its policy of developing the most useful water 
powers. A storage dam is being built on St. Anne River, and 
surveys are being made for developments on the Nottaway 
and Megiskan Rivers, and the Kenogami and St. John Lakes. 
Our mineral production, which increased during the 
last ten years from $7,000,000 to $10,000,000, is steadily en- 
hancing. Important discoveries of gold and molybdenite were 
recently made in the Abitibi which promise to make of this 
new region an important mining district. 

While generous appropriations were made in favor of 
technical schools, and the erection of a score of rural 
academies was planned, this year has been especially de- 
voted to the cause of higher education. The government has 
granted $3,000,000 to be shared equally between McGill, 
Laval and Montreal Universities, and it has besides estab- 
lished many new European scholarships. Four young forestry 
engineers left this last month for a special course abroad. 

As to our financial situation, the rule established in re- 
cent years still prevails and our budget shows a surplus 
which gradually reduces our debt now standing at a little 
less than $12 per capita. Our debentures are consequently 
much sought after, as are all our municipal and corpora- 
tion bonds. If banking may be considered a true barometer 
of provincial conditions, to tell the tale of our prosperity we 
need only refer to the great increase of deposits in 1920 and 
the opening of many new branches throughout our province 
by our leading banks. 

While they had to bear the high cost of raw material 
and the sudden slump in retail prices, our manufacturers, 
however, have had a prosperous year. 

Among other industries, shipbuilding is making great 
strides in our province, and Montreal is claiming interna- 
tional attention. 

The sanity and level-headedness of our laboring cla-ss 
saved us from strikes and bolshevist tendencies such as have 
more or less handicapped other countries' industrial en- 
deavors. This again should help solve the unemployment 
problem. With prices falling our laborers will understand 
that wages must follow suit, and fewer men and women will 
then have to be released. 

L. A. TASCHEREAU. 



January 7, 1921 



T'HE MONETARY TIMES 



Provincial Legislation of the Year 1920 

Summary of the More Important Legislation Placed on the Statute Books 
During the Past Year — New Ontario Government Failed in Ecomony But 
Succeeded in Politics— Tendency to Raise Taxes on Accumulated Wealth is Evident 
From Increases m Succession Duties — Higher Taxes on Financial Institutions 



PROVINCIAL legislation affecting finance and industry dur- 
ing the past year is of considerable importance. The rapid 
expansion of the past few years required some changes of this 
kind. The tendency towards increased public expenditures 
made increased taxes also necessary. The new legislation of 
the year has a strongly soc"al flavor, minimum wage, housing, 
mothers' pension and similar laws being very prominent. An 
effort was made to raise the money for these purposes by 
higher succession duties, on commercial and financial institu- 
tions, and on other forms of accumulated wealth. Experi- 
ments are also being made in the way of provincial assistance 
to new industries. 

The time at which the legislatures met is indicated by 
the following dates: — 

Opened Closed 

British Columbia Feb. 1 

Alberta Feb. 15 April 10 

Saskatchewan Nov. 27, 1919 Feb. 7 

Manitoba 

Ontario Mar. 9 May 28 

Quebec Dec. 4, 1919 Feb. 14 

Nova Scotia Mar. 4 

New Brunswick Mar. 11 April 24 

Prince Edwai'd Island 

Yukon April 28 

Ontario Has Big Record 

The Ontario session was of outstanding interest this year, 
as at the elections in the fall of 1919 the farmers had been 
returned as the strongest party, although they had to form 
a coalition with the small labor group to secure a majority in 
the house. The new party had been elected on a platform of 
economy, but like other new governments, it has found it im- 
possible to carry out in power what it had advocated in oppo- 
sition. 

The large number of 260 acts were passed by the govern- 
ment house. The estimates were higher than ever before, and. 
new taxes were as a result necessary. These took the form of 
increases in succession duties, in taxes on corporations, in 
taxes on race tracks, and on transfers of stock. The succes- 
sion duties in the province now range from 15 to 60 per cent., 
which is exceptionally high. The taxes on banks were prac- 
tically doubled, and those on loan companies substantially 
raised. The tax on race tracks is now $7,500 per day for 
mile tracks and ?2,500 per day on half-mile tracks. 

This increase in revenue was for additional expenditures 
for ordinary provincial purposes, including a good roads pro- 
gramme, of which the farmers were strongly in favor, and a 
mothers' pension act, which was passed largely through the 
efforts of the labor members. Provision was also made for 
the superannuation of civil servants. The influence of the 
labor section is also shown by the minimum wage acts and the 
amendment increasing the rate of workmen's compensation. 

An extension of the Temiskaming and Northern Ontario 
Railway to James Bay was authorized, although construction 
will not be commenced for some time. The two big commis- 
sions in the province, which are the Hydro-Electric and the T. 
and N. O., have received strong support from the now govern- 
ment, although it has been keenly criticized for not authoriz- 
ing the former to purchase the radialfrailways of the Domin- 
ion government without making an investigation first. 

Another important bill passed at the last session of the 
Ontario house was that providing for local option in municipal 
taxation, by which improvements up to a certain amount may 
be exempted from taxation. In recognition of the changed 
financial conditions it was also enacted that provincial bonds 
might in future be issued bearing interest at more than 6 per 
cent. 



The Quebec legislature dealt with the city of Montreal's 
charter, the housmg question, the provincial public service 
commission, grants to railways, McGill University's finances, 
and a number of other financial questions. The amendment 
to Montreal's charter took the form of an act providing that 
there should be no election at the end of 1920, but that in- 
stead a commission should be appointed to frame a new form 
of government for the city. This commission was to be com- 
posed of sixteen members, representing various interests in 
the city. It is still working out a new plan of government for 
the city. 

The new housing act dropped provincial control of hous- 
ing, under an enactment of the 1919 legislature, but provided 
that the government should still make advances to munici- 
polities for housing purposes, accepting as security their 5 per 
cent, bonds at par. Provision was made for flats as well as 
individual dwellings by making the loans applicable to tene- 
ments of three flats erected at a total cost of $13,500. 

The name of the Quebec Public Utilities Commission was 
changed to the "Quebec Public Service Commission," and some 
important changes were made in its powers. The sessional 
indemnities of members of the legislature were increased from 
$1,500 to $2,000. A new companies act was passed to take 
the place of the existing legislation regarding the incorpora- 
tion and management of companies in the province. The 
"General Accountants' Association in the Province of Quebec" 
was incorporated, as was also a million-dollar company called 
the "Guarantee Title Bond and Trust Corporation of Canada." 
Amendments were also made to the charters of "La Prevoy- 
ance" Assurance Company, and of the Industrial Life Insur- 
ance Company. 

Saskatchewan Legislation 

Legislation of the Saskatchewan government included a 
new seed grain act, amendments to the towTi act and to the 
rural municipality act, a new village act, the Saskatchewan 
Loans Act, a Sale of Shares Act, and an Attachment of Debts 
Act. A new and increased scale of succession duties was also 
put in force. An advisory board was created to assist the 
wild lands tax commissioners. The status of the provincial 
bureau of labor was enlarged to that of a provincial bureau of 
labor and industry, with power to investigate the possibilities 
for new industries and for extension of existing ones. Sev- 
eral measures in the way of development, affecting irrigation 
and water supply, were passed. 

The Saskatchewan Loans Act authorized the borrowing of 
money in advance of the fiscal year, in order to take advan- 
tage of favorable financial conditions. The provincial mora- 
torium was extended to February 1, 1921. Provision was 
made for financial assistance to co-operative enterprises, such 
as the Saskatchewan Co-operative Elevator Company and the 
Saskatchewan Creameries, Ltd. 

Other Provincial Legislation 

The Manitoba legislature took up the question of assist- 
ing industry in the province, railway and other developments 
in the north, and the extension of the rural credits system in 
the province, which is now to be financed with the assistance 
of a Manitoba savings bank. Hail insurance also received at- 
tention and some changes were made in the law. 

British Columbia authorized several new loans, and passed 
acts relating to the Pacific Great Eastern and several other 
railways. Efforts were also made to enable the municipalities 
to raise more revenue. A mother's pensions act was one of 
several pieces of social legislation placed on the statute books 
of the province. 

The Yukon legislature at its 1920 session passed eleven 
acts, the most important being one prohibiting the sale of in- 
toxicants for beverage purposes. 



THE MONETARY TIMES 



Volume 66 



CANADIAN BOOKS OF THE YEAH 

Scarcely Any Deal Directly With Finance or Industry — 

Canadian Trade Index a I'seful Directory — 

Many Books of Legal Cliaracter 

OUTSIDE of law books having a close relation to industry, 
there were scarcely any books published during 1920 on 
Canadian economic subjects. In 1919, on the other hiand, agri- 
culture, the raih'oads, and several other branches, received con- 
siderable attention. 

Probably the book of most importance to Canad'an eco- 
nomic life was the Canadian Trade Index for 1920-21, which 
is really not a book at all, but rather a directory (Canadian 
Manufacturers' Association, Toronto, 832 pages, $6). One of 
the valuable services rendered to manufacturers of Canada by 
the Canadian Manufacturers' Association is the publication of 
this complete reference list. The object of the index is to 
provide all buyers of Canadian manufactured goods, in what- 
ever country they may be, with a dependable list of the arti- 
cles made in Canada and the names of the manufacturers 
making them. In addition to the list, arranged alphabetically 
under the names of the products, this edition introduces two 
new features: A continuous alphabetical list of all manufac- 
turers, whether members of the association or not; and a 
translation section in French and Spanish. 

Every year sees a considerable number of law books pub- 
lished in Canada, some of them being closely related to eco- 
nomic affairs. About the end of 1919 there was one published 
which is of outstanding value. This was "Dominion Company 
Lay," by Thomas Mulvey (Ontario Publishing Co., Ltd., Tor- 
onto, 889 pages, with index, .$12.50). The author, who is 
under-secretary of state for Canada, and an authority on 
company law in this country, sets foi-th thoroughly the law as 
it affects companies incorporated under federal charter. His 
synopsis of the Dominion Companies Act, and of the practice 
thereunder, which occupies seventy-two pages of the book, 
will be particularly instructive to those not conversant with 
the subject, and will readily be understood by business men 
without legal training. The text of the Dominion Companies 
Act is set forth in full, and annotated, as are also the provi- 
sions relating to loan companies, British loan companies, and 
British and foreign mining companies. The Dominion Wind- 
ing-up Act is treated in the same way, and then the licensing 
and taxation legislation in the various provinces is taken up, 
in so far as it affects companies with Dominion charters. 
Finally, the Income Tax Act and the War Profits Tax Act are 
given, and a list of forms to be used by companies. The 
book will be very useful, not only to corporation lawyers, but 
also to the officers of any company which operates under 
Dominion legislation. 

Another was "Executors' Accounts," by C. H. Widdifield, 
judge of the Surrogate Court of Grey County, Ontario (The 
Carswell Co., Toronto, 531 pages, with index, $6.50). This is 
the second edition of this book, but since the first was pub- 
lished considerable legislation has been passed altering the 
practice and procedure of the courts. Trust company officers 
will find the book exceedingly valuable, and a good index 
makes it convenient for reference. 

Fraser's "Company Forms and Precedents" contains ovev 
1,000 forms. Those relating to applications for registration 
or license under the Extra-Provincial Corporations Acts of 
the different provinces and to departmental applications are 
based on precedents which have been approved and accepted. 
A selection only of statutory and departmental forms has 
been included. These are subject to change from time to 
time, and are always available on application to the proper 
Dominion or provincial authorities (The Carswell Co., Ltd., 
Toi-onto, 699 pages, with index, $10^ 

Book on Railway Law 

The passing of a new railway act at the 1919 session of 
parliament gave this country a new railway law, no less than 
sixteen previous acts being repealed, either in whole or in 
part. As a result of this change, "Concordance of the Rail- 
way Act," by A. H. O'Brien, M.A., has been published (Can- 
ada Law Book Co., Toronto, 184 pages, $6). This volume is a 
new edition of "Currie's Concordance," and gives, in addition 



to the text and a thorough index of the Railway Act, 1919, an 
index to all acts of parliament affecting railways, an account 
of the Board of Railway Commissioners and an index to its 
regulations and forms, and considerable other useful informa- 
tion. 

A similar publication in the field of company finance 
was "Concordance of the Companies Act," by Leslie G. Bell. 
(Carswell Co., Toronto, 181 pages with index; $5.) This 
book covers the Dominion Companies Act, the "Business Pro- 
fits War Tax Act, the Income War Tax Act, and provincial 
legislation applicable to Dominion companies. The increas- 
ing number of incorporations and the growth and import- 
ance of legislation governing such bodies make it a very 
useful work. The "Office Consolidation of the Companies 
Act," which comprises 88 pages of the book, is a thorough 
index to all subjects dealt with by the act. 

Manual on the Tarifif 

Another useful publication was "Canadian Customs and 
Excise Tariffs," by M. P. McGoldrick. (Chas. S. J. Phillips, 
20 St. Nicholas St., Montreal. 504 pages; $2.50.) This 
handbook shows the tariff on all classes of goods alphabeti- 
cally arranged, and includes the Revenue Act of 1920. It 
also shows thei articles subject to luxury tax and those 
exempt from sales tax, and the stamp tax legislation. Other 
features are a list of warehousing ports, outports, etc., in 
the Dominion; the trade conventions with Belgium, Nether- 
lands, Japan, Italy and British West Indies; extracts from 
the Customs Act, specimen forms of customs, documents, 
foreign weights and measures with their Canadian equival- 
ents; tables showing Canadian customs value of foreign cur- 
rencies; conversion tables of sterling and francs into Cana- 
dian money; Montreal wharfage tariff and list of principal 
customs brokers in Canada. 

Currency Exchange Tables 

A book entitled "Currency Exchange Tables" (G. B. 
Sneli, CO Bank of Montreal, Montreal, $7.50) has been wel- 
comed by the business houses of Canada as a timely aid for 
calculating the exchange on New York funds. The table 
gives the exchange on all amounts from $100 to $10,000, 
at all rates from %i to 1 per cent., advancing by sixty- 
fourths and from 1%2 to 10 per cent., advancing by five 
thirty-seconds. The exchange on larger or smaller amounts 
can be arrived at by simply moving the decimal point to the 
or left as required. The second edition, just issued, contains 
in addition a table showing the comparison between the 
premium on United States funds in Canada and the discount 
on Canadian funds in the United States. 

"Daylight on the Money and Banking Questions," by 
R. C. Owens (Western Veteran Publishing Co., Edmonton, 
Alta. 47 pages; 25 cents), was a pamphlet making some 
radical proposals. The author believes that wealth is pro- 
duced by labor alone. "It is a recognized fundamental fact 
of political economy that labor produces all wealth," he says. 
He accordingly deplores the accumulation of wealth through 
interest, and urges radical changes in the money and bank- 
ing system. His chief proposals are: That the government 
issue sufficient legal tender money for all needs, thereby 
abolishing credit and interest, and that banking be conducted 
by the government at cost; that a tax on land values be 
imposed; that the tariff be abolished; that natural resources 
be the property of the people; that public utilities be operated 
at cost; that six hours be a legal day's work; that each per- 
son over 55 years of age receive a pension; and that an in- 
come tax of from 50 per cent, to 100 per cent, be levied on 
all incomes from $2,000 to $1,000,000, until the public debt 
is paid. 

General interest in the application of the Bankruptcy 
Act has led to the commencement of a special publication, 
to deal carefully and exhaustively with the development of 
the law under the act. The series is known as the Canadian 
Bankruptcy Reports, Annotated, published by Burroughs and 
Co., Ltd., of Calgary, Alta., and handled in eastern Canada 
by their eastern office. Burroughs and Co. (Eastern), Ltd., 
Witness Building, Montreal, Que. 



BANKING 




Jamiary 7, igii 



THE MONETARY TIMES 



Page .;j 



32 



THE MONETARY TIMES 



Volume Ofi 



BANK OF MONTREAL 



Established over 100 years 








Capital Paid Up 

Rest 

Undivided Profits 
Total Assets 



$22,000,000 

22,000,000 

1,251,850 

560,150,812 



Board of Directors : 

SIR VINCENT MEREDITH. Bart. 
SIR CHARLES GORDON. G.B.E. - 

R. B. Angus, Esq. 
LordShaughnessy, K.C.V.O 

C. R. Hosmer, Esq. 
H. R. Drummond, Esq. 

D. Forbes Angus, Esq. 
Wm. McMaster, Esq. 



Vi, 



iJcnl 
iJenI 



Lt.-Col. Molson.C.MCM.C 
Harold Kennedy, Esq. 
H. W. Bcauclerk, Esq. 
G. B. Eraser, Esq. 
Colonel Henry Cockshutt 
J. H. Ashdown, Esq. 



E. W. Beatty, Esq., K.C. 



SIR FREDERICK WILLIAMS-TAYLOR, General Manager 



A Complete Banking Service. 
With branches in every part of the 
Dominion and Newfoundland, with offices 
in the principal financial centres elsewhere, 
and with correspondents in all parts of the 
world, the Bank of Montreal offers unex- 
celled facilities for the transaction of every 
class of domestic and foreign banking. 

Direct Jeire service helTX)een Montreal, Toronto, Winnipeg, 
V ancouver, Nen> Yorl^, Chicago anJ San Francisco. 



A Savings Department at each Canadian Branch. 
Interest at current rates 



PRINCIPAL BRANCHES OUTSIDE OF CANADA: 



LONDON, Eng. : 

47 Threadneedle Street, E.C. 
G. C. Cassels, Manager. 
Suh-Agency — 9 Waterloo Place, 
Pall Mall, S.W. 

PARIS, France : 

Bank of Montreal (France), 17 
Place Vendome. 



NEW YORK AGENCY : 64 Wall St. 
R. Y. Hebden. W. A. Bog, W. T. 
Oliver, E. P. Hungerford, Agents. 

CHICAGO : 27-29 South La Salle St. 

SPOKANE, Washington 

SAN FRANCISCO: British-American 
Bank (owned and controlled by 
the Bank of Montreal). 



MEXICO: City of Mexico. 

NEWFOUNDLAND: St. John's. Car- 
bonear. Curling. Ferryland, Gaul- 
tois, Grand Falls. Greenspond 
and St. George's. 

WEST INDIES. BRITISH GUIANA 
and WEST AFRICA: The Col- 
onial Bank (in which an interest is 
owned by the Bank of Montreal). 



January 7, 1921 



THE MONETARY TIMES 



Review of Canadian Banking in 1920 

Tightening of Credit Was Most Prominent Feature— Failure of Deposits to Respond 

to Growtli of Loans— Fewer Branches Opened than in 1919— Substantial Addition 

' to Paid-up Capital and Reserves— Effect of Depreciated Currency on Banking 

By A. B. BARKER. 



DURING the past year the banks have been reluctant to 
increase their commitments. The business of the coun- 
try has been conducted for several years under a condition 
of steadily rising prices, necessitating the use of an increas- 
ing amount of credit to handle stocks of goods. These high 
prices have, it is believed, reached their peak, and from now 
on should recede. The executives of the banks at the various 
annual meetings have emphasized the necessity for great 
caution in view of the disturbed financial and political out- 
look everj'^vhere. Throughout the year credit has been re- 
stricted, and loans for purposes other than commercial have 
been increasingly difficult to obtain. This was particularly 
noticeable in the early fall. 

Even in normal times, owing to the general preparations 
for financing the western crops movement, the banks find it 
necessary to curtail anything in the nature of speculative 
advances, but this season the movement has been more pro- 
nounced. Formerly relief was obtainable from London in 
anticipation of grain exports, but this year, owing to the fall 
in sterling, the grain is not likely to go forward in the same 
quantities as before. This will throw an additional load on 
home funds, even with wheat at reduced prices. There will, 
in consequence, be heavy demands on the banks from western 
customers to enable them to carry the crop until it can be 
sold to better advantage. 

This is a matter of vital interest to the rest of Canada, 
as unless the farmers can obtain adequate prices for their 
grain the purchasing power of the west will be greatly cur- 
tailed, with unpleasant effects on the rest of the country, as 
it means contraction of trade, which will in turn react on the 
flow of deposits, and without a steady increase of deposits 
bank credits cannot expand. A bank is a merchant in credit, 
buying it from depositors and selling it to the commercial 
community. If the supply is not sufficient the volume of 
sales must decrease. 

Smaller Deposits Anticipated 

That some reduction in deposits is looked for by the banks 
the public statements of their responsible officers leave no 
doubt, and they are wisely setting their houses in order in 
preparation for this contingency. This condition is not con- 
fined to Canada; it is world-wide, and is due to the strain of 
readjustment after the war. The satisfactory feature is that 
the preparations to meet coming conditions have been steadily 
going on for months, as evidenced by the curtailment of credit, 
and, judging from past experience, the ti-ansition, because of 
these preparations, will be effected with the minimum of loss. 

The government announced when the 1919 loan was is- 
sued that it would be the last loan of the kind and that fu- 
ture expenditure would be met by taxation. At the begin- 
ning of the year it was estimated that receipts would fall 
short of expenditure by some $90,000,000. The new taxes, 
however, produced something like $100,000,000 in excess of 
expectations, and a surplus is now confidently expected in- 
stead of the deficit. Borrowings by the government therefore 
liave been merely the usual anticipations of revenue. 

During the year two more Canadian banks have opened 
offices in London, England — the Merchants Bank and the 
Bank of Nova Scotia. 

New Developments in West 

There have been no further amalgamations, but a new bank 
is understood to be in process of formation in the west. 
Nothing has been said of it lately, and it was reported that 
the promoters were waiting until after the harvest to canvass 
subscriptions. Much will doubtless depend on the returns re- 



ceived by farmers for their wheat, and as this has lately fallen 
to below $2 a bushel, the prospects of obtaining the subscrip- 
tions necessary to apply for a chai-ter are none too favorable, 
this year at any rate. 

Owing to its failure to induce the banks to make ad. 
vances for farming purposes at less than market rates, the 
province of Manitoba has undertaken an experiment in finance 
which will be watched with interest by all, whether in sym- 
pathy with the plan or not. This is the taking of deposits 
from the pubic in order to finance loans to farmers. The ob- 
ject is one of the best, and while the plan has been criticized 
strongly there is no quarrel with the object sought. It is the 
plan itself to which objection is raised. The scheme provides 
for advances to farmers to mature not later than December 
31st, and for one renewal for twelve months. This will make 
the average loan a fairly long-term one. Now, if the funds 
from which these loans are made, were obtained for this definite 
purpose and on similar terms, there would be small objection 
to the scheme, but when the funds are obtained from deposits 
payable on demand, the possibility of trouble is not far 
away. It is understood that the act permits advances by the 
province, but if the depositors want their money, the province 
can raise the funds only by borrowing, and in this case it will 
have to pay market rates. No lending scheme has ever suc- 
ceeded when demand funds have been used for long-term in- 
vestments, as numerous failures have shown, and it is a mat- 
ter of regret that so worthy. a scheme should be started on 
principles fundamentally unsound. 

Banks Not So Strongly Criticized 

There has been much criticism of the banks for insisting 
on business principles when co-operating with the provinces, 
but there are unmistakable signs that many of the critics are 
beginning to realize that the Canadian banking system has 
really been the salvation of western Canada. An extract 
from a recent editorial in the Calgary Farm and Ranch Re- 
view, which has heretofore been most critical, is an evidence 
of this: — 

"A CHANGE OF HEART 

"Confession is good for the soul, and here is where I take 
advantage of it. I have thought and said a good many harsh 
things about our banks and banking system generally during 
past years. I have admitted its virtues for commercial enter- 
prise, but have been rather more than sceptical in regard to 
its application to agriculture. I have been a believer in the 
smaller local bank, trading largely on the moral asset and be- 
ing in closer human touch with its rural customers. I still 
think that the local bank has much to recommend it. 

"But a retrospect of the past three years, with pyramiding 
farm credits, forces me to the conclusion that no system of 
local banks could successfully have met the credit require- 
ments of western Canada, at least, during the present season. 
That it was precisely the ability of our powerful banks to 
concentrate funds where needed when the pinch came that 
saved the situation for a very large number of farmers in the 
areas that have been drouth-stricken in recent years. We 
'live and learn,' or ought to learn. I cheerfully admit that 
more recent information and contemplation have caused m ' 
to change my mind in regard to our banking system." 

Fewer Branches Opened 

The past year has not been so marked by the increase 
of branches as was 1919, when some 800 were opened. There 
was a special reason for this, as during the war the shortage 
of staff precluded much activity in this direction. With the 



THE MONETARY TIMES 



Volume 66 



return of so many of their men to civil life, the banks took 
advantage of the opportunity to extend into new territory, 
particularly in the west. 

During the year the paid-up capital of several of the 
banks was substantially increased, through the payment of 
calls on stock issued during the previous year. The total 
paid-up capital at the end of September was $126,927,040, 
and the rest $130,325,640, increases of $9,876,801 and $7,283,- 
890 respectively. 

The total s-ssets show a marked increase over 1919 and 
previous yeai's. In 1914 they were, at the end of December, 
$1,555,550,815, in 1919 $2,967,373,695, and on October 31, 1920, 
$3,155,601,568. 

Money Is Depreciated 

While in figures this shows marvellous growth, the 
changed value of the dollar must be taken into consideration. 
According to the Department of Labor, the index number for 
June, 1914, was 135.6, and for June, 1920, it was 346, indicat- 
ing that the value of the dollar in 1920 was about 40 cents as 
compared with 1914. When the various statistics of trade 
and finance are adjusted on this basis the actual growth will 
be more clearly shown. The index number is a modem idea 
and one we will hear more of in the future. It is a device 
for keeping record of the variations in the price of commodi- 
ties as a whole by establishing a certain average figure based 
on the prices of commodities in common use. Fluctuations 
in a commodity price affect the index number, thus affording 
a good record of one of the main factors affecting living con- 



ditions. Money is a commodity as well as a measure of value, 
and when prices measured in money rise, the value of money 
as a commodity falls to the same extent, and more money is 
required to do the same volume of trade as before. 

Educational Work 

In recent years the Canadian bankers have realized the 
necessity of providing some system of education for the mem- 
bers of their staffs, along lines similar to those followed by 
the Scottish banks, which have so increased the efficiency in 
the banks of that country. Owing to the numerous branches, 
and the difficulty of giving their men the varied practical ex- 
perience necessary to train them for work in other sections of 
the country, some method had to be found of grounding them 
in the theories on which all banking business should be based. 
For those in the cities courses of lectures have been estab- 
lished, and for those in the smaller centres courses in the 
vai'ious banking subjects ai-e carried on by correspondence. 
Inducements have been offered by the various banks to the 
members of their staffs to take advantage of these facilities, 
and the wide response has sho\\'n a spirit of enquiry among 
the younger officers, which is full of promise for the future. 
Many of the larger American banks have these educational 
facilities. The National City Bank in New York, before send- 
ing out a man to their foreign branches, gives him a thorough 
grounding in the banking and commercial law and customs of 
the country to which he is sent, and thus endeavors to give 
him the confidence born of knowledge, which will, to a great 
extent, guard against mistakes both in policy and execution. 



TWELVE MONTHS' BANK FIGURES (COMPARED) 



Circulation 



Deposits on Demand 



1919 



November 242,309,082 \ 248,073,385 

December 240,705,540 ' 247,611,079 



January. . . 
February . . 

Marcli 

April 

May 

June 

July 

Augusts . . . 
September . 
October. . . 



1919 

226,385,506 
210,894,809 
216,529,576 
223,763,426 
219,287,788 
222,712,991 
223,662,648 
223,454,556 
229,532,356 
242,509,573 



1920 

237,269,805 
223,979,656 
231,220,770 
243,226,193 
235,085.179 
238,(188,555 
240.833,686 
237,697,647 
242,988,866 
2,'>2,882,760 



1918 


1919 


$ 


$ 


666,366,359 


728,657,589 


711,034,060 


703,392,204 


1919 


1920 


62.S,919,410 


621,408,024 


566,775,434 


620,069,555 


566,797,268 


6.57,412,028 


571,412,8.57 


6.52,918,760 


.568,730,118 


645,957,229 


605,927,027 


6.59,622,583 


584,176,765 


639,415,(IJ5 


584,300,855 


640,.361,707 


650,743,015 


677,286,905 


705,280,241 


687,651,781 



Current Loans in 
Canada 



Current Loan* 
Abroad 



Deposit* after 
Notice 



1919 



939,329,271 1,137,858,277 
9.58,473,557 1,138,086,691 



1919 

990,000, 
1,018,184, 
1,037,851, 
1,070,985, 
1,107,983, 
1,139,569, 
1,175,092, 
1,196,632, 
1,127,*37, 
1,262,746, 



1920 

,'.63,297,037 
,187,027,307 
,197,719,570 
,209,573,760 
,229,073,515 
,•243,700,977 
,253,170,443 
,261,647,7.32 
,270,194,097 
,271,275,751 



Deposits Abroad 



221,299,711 
206,845,143 

1919 

203,015,797 
200,560,308 
210,104 607 
212,649,478 
221,605,846 
240,201,440 
294,650,777 
238,363,859 
255,274,256 
2.53,965,203 



1919 



259,047,187 
275,342,645 

1920 

285,203,939 
277,478,631 
318,277,881 
327,235,197 
345,095,475 
360,358,386 
348,008,545 
356,.570,176 
355,238,992 
339,955,233 



Call Loans in 
Canada 



November. 
December. 

Januar5'. . . 
February . 
March . . . . 

■April 

May 

June. 

July 

.\ugust. . . . 
September 
October . . 



1,082,709,655 
1,075,640,003 

1919 

1,080,340,861 

1,095,301,791 

1,117,197,446 

1,107,986,523 1 

1,071,447,686 

1,043,712,9,32 

1,014,387,206 

1,011,785,424 

1,058,-572,202 



1919 1918 

$ S 

1,189,408,5231 110,010,815 
1,207,109,0461 119,153,924 



1 
1,104,940,16011 



1920 

,226,962,963 
,257,015,902 
,.322,267,030 
,347,238,230 
,.349,079,981 
,365,151,083 
,377,276,853 
,385,470,1.53 
,417,-520,756 
,405,401,227 



1919 

513,3.38 
590,063 
984,608 
328,561 
490,932 
525.5.50 
217,957 
964, .11 5 
814,511 
713,386 



1919 



149,302,293 
168,955,696 

1920 

182,.533,I24 
180,711,238 
183,642.658 
185.085,021 
183,986,222 
184,328,464 
190,914,052 
200,945,241 
202,590,184 
193,749,657 



85,675,063 
89,120,423 

1919 

87,598,427 
79.154,121 
87,601,337 
86,091,844 
89,187,032 
95,8.52,728 
93,587,497 
95,899,836 
96,912,709 
100,549,390 



1919 

; 

121,7-54,469 
125,888,760 

1920 

132,015,334 
127,251,919 
12«,233,310 
125,644,859 
119,114,493 
115,272.587 
11.5,360,894 
113,5"8,923 
114,669,611 
113,135,902 



Call Loans 


Abroad 


1918 


1919 


$ 


$ 


171,035,7.32 


169,626,880 


150,248,322 


172,232,161. 


1919 


1920 


140,819,656 


170,206,805 


155,98.3,681 


184,469,882 


160,116.443 


205,2112,133 


1.55,533,666 


206,229,451 


157,176,325 


213,964,182 


167,236,045 


219,214,431 


178,098,434 


203,045,209 


174,176,578 


193,888,245 


169,532,489 


186,9H2,960 


158,194,085 


188,367.459 



January 7, 1921 



THE MONETARY TIMES 



Banks' Service in Public Finance 

Dominion Government Deposits Have Decreased During Past Year— Trend of 
Provincial Deposits Fairly Even— Municipalities and Provinces Increase their Loans 
—Holdings of Public Securities Have Been Liquidated to Meet Commercial Demands 



AS DEPOSITARIES of the Dominion government, Canadian 
banks during the pa«t few years have performed a service 
of inestimable value. Ordinarily, the collection and disburse- 
ment of the national revenues involves considerable woi-k, and 
the balances maintained by the government are supposed to 
recompense the banks, as these funds may be used for coirLmer- 
cial or other purposes. When the Dominion government com- 
menced floating domestic loans, however, the banks were 
called upon to act as intermediaries, and during each campaign 
and for some time after an enormous amount of work was 
done by these financial institutions with little remuneration. 
Following each loan large amounts were placed on deposit, but 
as the government did not float these loans for the purpose of 
holding the money on hand, these balances, an illustration of 
which will be seen in last year's figures, were quickly with- 
drawn, so that the banks benefited but little. Furthermore, 
interest on Canada's debt is paid through the banks, and small 
though this item may appear, it involves considerable work, 
and will continue to do so for some time. 

As no domestic loans were floated in 1920, the work of the 
banks was somewhat reduced in this regard. Balances main- 
tained by the government were also reduced, however, so that 
the banks had less money at their disposal. 

The course of deposits of the provinces in chartered banks 
has been fairly even in the past few years, therefore this ac- 
count calls for little comment. The following figures show the 
balances due to the Dominion and pi-ovincial governments at 
the end of each month since the beginning of 1919: — 

Due Dom. Due Prov. 

1919 — Government Governments 

January ?236,119,588 $21,238,779 

February 238,256,091 20,800,869 

March 228,201,515 21,646,571 



Due Dom. Due Prov. 

1919 — Government Governments 

April 188,129,800 21,754,210 

May 113,860,593 26,196,865 

June 128,890,218 24,454,438 

July 140,575,172 23,499,116 

August 100,639,909 23,552,757 

September 110,217,948 24,094,698 

October 121,028,537 20,699,308 

November 350,381,389 17,625,464 

December 224,926,921 19,032,841 

1920 — 

January $224,597,564 $20,276,072 

February 217,059,832 19,864,020 

March 262,340,599 17,827,892 

April 261,044,115 19,178,187 

May 216,098,321 20,691,300 

June 183,913,852 23,955,524 

July 170,190,302 26,344,597 

August 153,359,936 25,057,401 

September ^ 156,410,480 20,933,968 

October 160,129,252 24,942,898 

Loans to Provinces and Municipalities 

Notwithstanding the increased amount of permanent 
financing during the past two years, provinces have greatly 
increased their bank loans. At the beginning of 1919 the total 
amount of these loans was $5,410,289, while at the end of Octo- 
ber last the figure was $14,361,485. 

Of more importance than loans to provinces, however, are 
loans to municipalities. During the past year these advances 
have shown large increases. The condition of. the bond mar- 




THE MONETARY TIMES 



Volume 66 



ket was, no doubt, the chief x-eason, but a review of the amount 
of permanent financing shows that bond issues were equally 
substantial in total as in the previous year. 

Many municipalities, during the war and for some time 
after, refrained from spending large sums on improvements, 
some of which were really necessary. Consequently a number 
of these municipalities undertook to do that which they had 
neglected during times of stress. Had the bond market been 
anything like normal there would have, no doubt, been a flood 
of securities, but prevailing conditions prevented this. Evi- 
dently temporary accommodation had to be secured in a large 
number of cases. 

The trend of these loans accounts since January, 1919, is 
shown in the following table: — 

Loans to Loans to 

1919 — Provinces Municipalities 

January $5,410,289 $32,640,198 

February 6,159,859 36,380,183 

March 6,636,143 41,993,305 

April 8,660,899 47,911,199 

May 8,156,982 50,356,227 

June 8,104,927 52,349,352 

July 3,700,208 54,455,738 

August 4,846,194 57,536,867 

September 6,667,116 57,033,309 

October 11,226,420 56,116,897 

November 13,815,103 52,703,363 

December 15,187,626 42,635,290 

1920 — 

January $11,271,190 $46,147,388 

February 13,090,090 52,690,790 

March 13,585,217 62,992,675 

April 18,768,268 72,281,019 

May 18,887,396 73,904,635 

June 15,773,409 76,410,676 

July 14,994,799 78,792,822 

August 12,314,726 79,912,041 

September 13,183,317 78,103,364 

October 14,361,485 71,374,060 

Public Security Holdings 

Another public service which the banks perform is their 
extensive purchase of securities. During the past year, how- 
ever, holdings of such securities have been greatly reduced. A 
large part of the amount under "Dominion government and 
provincial government securities" represents loans to the Do- 



minion on security of treasury bills. It will be seen, there- 
fore, from the figures given below, that the government has 
not been leaning so heavily on the banks as in 1919. 

In times of easy money the banks employ surplus funds 
by purchasing such securities as municipal, railroad and other 
bonds. The year of 1920, however, was by no means a period 
of easy money, but rather extremely adverse. Demand for 
funds was so great that banks found it necessary to liquidate 
their holdings of securities and place the money where it could 
be used for commercial and other necessary purposes. 

The following figures illustrate these remarks: — 

Dom and Can. Mun. & Railways & 

Prov.Gov. other public other bonds 

1919 — Securities Securities etc. 

January $159,039,874 $259,462,077 $53,546,118 

February 112,160,131 259,422,456 53,416,524 

March 115,180,320 260,003,939 54,276,188 

April 117,616,232 258,504,084 54,628,223 

May 123,939,312 256,617,235 56,812,743 

June 224,301,264 254,147,015 55,191,819 

July 278,190,601 253,490,909 55,214,138 

August 273,332,930 254,235,984 52,679,157 

September 323,781,953 255,098,813 53,658,486 

October 361,280,956 255,684,576 54,442,926 

November 336,855,869 253,341,708 54,327,528 

December 149,780,058 255,239,781 54,957,659 

1920 — 

January $127,087,135 $249,413,578 $51,548,307 

February 125,729,366 234,608,866 50,605,825 

March 126,609,453 223,709,931 50,969,557 

April 118,416,840 214,768,123 50,778,055 

May 117,864,456 205,129,314 47,988,462 

June 117,471,598 206,534,550 46,785,603 

July 117,037,931 202,471,301 45,738,394 

August 117,018,957 201,647,011 44,778,724 

September 116,287,730 202,349,860 46,613,366 

October 119,010,969 201,447,094 47,023,401 

Under the heading of "Canadian municipal securities and 
British, foreign and colonial public securities other than 
Canadian," the chartered ba-nks of the Dominion showed an 
amount of $201,447,094 at the end of October, 1920. While 
the banks' holdings of Canadian municipal, foreign and col- 
onial securities are considerable, the above figure chiefly re- 
presents obligations of Great Britain. 





























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. GOVErt 


NMENT? 




^ 


^^ 




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__ 




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^^ 



January 7, 1921 



THE MONETARY TIMES 



37 



In 1916 the Canadian banks loaned the British govern- 
ment $100,000,000 for the purchase of munitions, and a sim- 
ilar amount in 1917 for the purchase of wheat. These loans 
were originally advanced on a three-years' basis, at a mod- 
erate rate of interest, and renew&ls have been made from 
time to time. Of this $200,000,000, one-quarter was paid off 
during the first five months of 1920, leaving a balance of 
$150,000,000. 

From the following figures, which illustrate the trend of 
the above mentioned account since the beginning of 1916, the 
loans and repayments are readily apparent: — 



January 

February 

March 

April 

May . . . , 

June , . . . 

July . . . . 

AuETUst 

September 

October 

November 

December 



1916. 1917. 1918. 1919. 1920. 

$41,746,948 $163,299,724 $235,989,801 $259,462,077 $249,413,578 



44,503,218 
44,384,303 
93,052,670 
. 106.680,437 
. 124,637,308 
. 148,916,278 
. 153,319,333 



182,808,459 
178,893,152 
178,624,830 
178,833,219 
167,769,412 
182,461,263 
176,249,192 



161,162,630 176,015,496 

163,380,276 172,639,288 

165.470,146 218,405,643 

167,758,788 224,093,823 



242,256,480 
250,422,761 
260,978,605 
269,102,070 
266,226,264 
265,155.438 
252,239,043 
250,698,255 
260,254,056 
248,398.067 
253,518,074 



269,422,466 
260.003,939 
258,504,084 
256,617,235 
264,147,015 
263,490,909 
264,235,984 
255,098,813 
255,684,576 
253.341.708 
265,239.781 



234,608,866 
223,709,931 
214,768,123 
206,129,314 
206,534,560 
202,471,301 
201,647,011 
202,349,860 
201.447.094 



Repay Balance by 1922 

The remaining balance of $150,000,000 is now being re- 
paid, and will be wiped out by May, 1922. On November 1 



and December 1, payments of $5,000,000 were made, and it is 
the intention of the British government to continue monthly 
payments through 1921 and a part of 1922. 

Great Britain still owes Canada about 180 millions, in 
addition, which represents the credit balance due the Cana- 
dian government on the various advances made mutually 
by the two governments to each other to cover their respec- 
tive war expenditures in the two countries. No arrangements 
for the liquidation of this debt are known to have been made 
as yet. The repayment of the other debt of 150 millions to 
Canadian banks will, however, materially assist the credit 
position of the Dominion, and bankers express much satis 
faction that the account is being thus disposed of. 



Deputy Secretary Trowbridge, of the province of 
Alberta, announces that the total number of auto licenses 
sold in 1920 is 38,050, as compared with 34,000 last year. It 
was thought three months ago that the annual issue would 
reach the even 40,000 mark before the end of the year, but 
the drop in grain prices is held as accountable for the 
slackening of auto purchasing during the fall. 



400 
360 
























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CANA 
1 


3IAN MU 


mciPAL ; 


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3 AND 1 


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MONEYS COINED BY CANADA'S MINT 



Coined 1 Jan.— 31 Dec, 1919 
1 Jan.— 31 Oct., 1920 

Issued 1 Jan.— 31 Dec, 1919 
1 Jan.— 31 Oct., 1920 



i?s coined 


and 


issued from January 1, 1919, 


to 


October 31, 

Value, 

$ 
3,195,878.15 
1,338,003.45 
3,258,044.10 
1,076,000.00 


1920 


were as follows 

Bronze 

pieces. 
11,201,347 
15,205,551 


:- 


Gold 
pieces. 

12135,889 

171,042 
1 


Value, 

$ 

661,326.47 

832,404.40 
4.86 


Silver 

pieces. 

22,903,234 

14,287,049 


Value, 
$ 
112,013.47 
152,055.51 
115,100.00 
145,585.00 



Note: The only gold pieces coined and issued were sovereigns. 



38 



THE MONETARY TIMES 



Volume 66 



BANK CLEAR.ING HOUSE FIGURES BY PROVINCES 





1914 


1915 


1916 


1917 


1918 


1919 


1920 




$ 

•2,536,795,848 

2,797,227,774 

1,397,358,249 

561,899,682 

399,965,267 

78,259,921 

100,280,103 

215,941,751 


S 

2,411,073,625 

2,786,449,334 

1,557,815,247 

371,713,657 

308,837,076 

77,058,264 

104,414,590 

188,526,217 


$ 

§3,240,773,729 

t3,939, 152,266 

2,040,717,775 

415,797,842 

400,762,688 

90,946,795 

125,997,881 

255,347,092 


$ 

3,792,647.962 

4,435,709,612 

2,653.354,314 

521,913,559 

566,007,431 

102,948,814 

151,812,753 

340,238,760 


$ 

14,326,431,476 

5,114,234,344 

2, 395, 388,. '■07 

670,405,480 

568,848,622 

117,133,609 

215,259,297 

368,631,391 


$ 

5,479.295,137 

6,595,339,437 

2,353,647,0.S2 

804,018,563 

650.034,151 

153,139,927 

241,. 300, 194 

424,504,941 


$ 

6,904,908,623 

7,540,531,459 

3,057,452,638 

1,061,107,104 

805,818,885 

193,761,263 

255.678,397 

464,296,936 


Quebec 

Manitoba 

British Columbia. .... 
Alberta 


New Brunswick 


Saskatchewan 


Total 


8,087.728,595 


7,805,888,010 


10,509,496,068 


12,564,633,205 


13.776,332,726 


16,701,279,382 


20,283,555,305 



•Peterboro started June, 1914. fSherbrooke started February, 1916. §Kitchener started April, 1916. 
IWindsor started April, 1918. •♦Moncton, started August, 1920. 

BANK CI^EARINGS BY CITIES— MontK by MontH 



Clearing House 



Brandon 

Brantford 

Calgary 

Edmonton 

Fort William 

Halifax 

Hamilton 

Kitchener ....... 

Lethbridge 

London 

Medicine Hat 

Moncton 

Montreal 

Moose Jaw 

New Westminster . 

Ottawa 

Peterboro 

Prince Albert. . . 

Quebec 

Regina 

St. John 

Saskatoon 

Sherbrooke . 

Toronto 

Vancouver 

v^ictoria 

Winnipeg 

Windsor 



January 
1920 



$3,129,439 

5,687,152 

37,638,201 

24,488,025 

3,120,439 

21,488,859 

29,168,399 

5,092,879 

3,338,654 

15,978,011 

2,241,896 



614,027,196 

7,060,890 

2,551,285 

40,971,148 

3,862,216 

2,090,029 

27,449,109 

18,129,119 

14,937,167 

8,773,312 

4,985,900 

447,974,237 

65,698,847 

11,609,302 

206,96.3,731 

10,819,497 



Total . I $1,639,274,939 



February 
1920 



$2,497,698 

4,774,589 

30,013,304 

19,650,940 

3,528,317 

16,013,622 

24,675,066 

4,002,016 

2,787,419 

12,774,846 

1,632,528 



March 
1920 



$3,106,770 

6,031,500 

37,403,388 

25,069,355 

3,486,860 

19,820,570 

31,324,956 

5,432,722 

3,533,432 

15,572,717 

1,995,363 



538,611,264 

5,627,802 

2,418,964 

34,031,-304 

3,177,888 

1,709,674 

24,960,565 

13,112,007 

11,727,802 

7,281,662 

3,873,412 

390,838,269 

62,489,007 

11,160,924 

168,615,962 

10,238,521 



$1,412,225,372 



568,4.'>2,098 

7,097,665 

3,149,518 

40,941,647 

4,064,579 

2,112,950 

27,698,374 

17,681,764 

15,039,493 

9,120,115 

4,695,884 

439,181,926 

74,994,746 

12,150,766 

191,763,117 

13,631,266 



$1,584,553,531 



April 
1920 



$3,167,430 

7,025,759 

34,126,554 

31,903,710 

3,591,254 

19,882,133 

33,500,454 

5,345,694 

4,588,282 

16,777,458 

1,913,617 



531,665,934 
7,-379,639 
3,170,336 
41,675,434 
4,692,080 
2,066,412 
30,339,053 
18,597,852 
14,9.52,029 
9,812,068 
5,322,547 
463,804,088 
71,765,-S97 
11,914,125 
188,183,383 
13,742,647 



$1,580,905,369 



May 
1920 



$3,248,893 

6,780,005 

32,058,375 

26,861,996 

3,653,762 

22,819,768 

33,509,584 

5,715,514 

3,443,760 

17,613,415 

2,071,857 



599,923,247 

6,770,000 

3,170,050 

55,275,196 

4,370,357 

1,999,617 

31,456,221 

18,063,874 

16,480,743 

9,549,685 

5,829,361 

460,896,938 

71,884,569 

11,859,319 

211, ,529,743 

14,597,735 



$1,681,439,584 



June 
1920 



$3,390,494 

6,480,618 

30,214,716 

21,742,949 

3,984,840 

24,586,070 

32,859.435 

5,889,216 

3.287,464 

19,167,708 

2,098,749 



612,-304,115 

7,298,373 

3,464,109 

45,680,127 

4,531,024 

1,998,203 

32,859,435 

18,746,168 

16,335,209 

9,636.882 

5,297,976 

469,284,720 

73,870,444 

12,478,128 

182,749,256 

14,461,131 



$1,664,697,559 



Clearing House 



July 
1920 



August 
1920 



September 
1920 



October 
1920 



November 
1920 



December 
1920 



Brandon .....' 

Brantford 

Calgary 

Edmonton 

Fort William 

Halifax 

Hamilton 

Kitchener 

Lethbridge 

London 

Medicine Hat ... , 

Moncton 

Montreal 

Moose Jaw 

New Westminster. 

Ottawa 

Peterboro 

Prince Albert . . . . 

Quebec 

Regina 

St. John 

Saskatoon 

Sherbrooke 

Toronto 

Vancouver 

Victoria 

Winnipeg 

Windsor 



$3,523,792 

6,507,651 

32,758,119 

21,110,274 

3,943,737 

24,520,960 

34,312,4.54 

5,312,854 

2.936,846 

16,409.122 

2,043,720 



Total . 



647,820,992 

7,450,168 

3,120,751 

38,188,647 

4,385,513 

1,993,060 

34,892,388 

18,211,891 

15,961,197 

10,037,638 

6,071,296 

447,270,993 

76,934,040 

14,670,096 

187,417,562 

16,647,014 



$3,086,815 

5,775,195 

30,434,969 

21,767,146 

3,525,798 

20,-553,413 

30,270,697 

4,836,003 

3,600,231 

14,878,915 

1,84-5,928 

2,451,731 

576,939.686 

7,201,741 

3,063,053 

33,008,013 

3,764,802 

1,977,068 

29,698,617 

17,168,314 

16,004,679 

6,550.691 

5,671,186 

406,191,434 

74,858,240 

11,144,187 

184,981,567 

13,859,1.56 



$3,182,754 

6,574,696 

36,447,175 

22,715,293 

3,805,695 

22,421,025 

31,836,176 

4,720,901 

3,927,345 

14,676,204 

2.465.692 

3,513,528 

556,543,834 

7,723,012 

3,077,724 

35,473,726 

4,235,936 

1,666,781 

30.648,095 

18,316,105 

13,253,567 

9,632,660 

5,524,034 

414,156,433 

77,437,078 

11,727.457 

245,98-3,823 

15,371,371 



$4,225,687 

6,4v0,122 

47,454,614 

24,057,805 

4,437,-543 

19,808,840 

34,241,010 

4,644,363 

5,410,618 

16,201,449 

3,337,120 

3,395,827 

619,293,513 

10,428,515 

3,049,225 

45,231,603 

4,7.S6,793 

2,025,551 

30,351,-356 

23,904,262 

13,620,854 

11,608,900 

5,476,598 

474,916,435 

72,563,504 

13,709,053 

414,840,605 

16,478,472 



$4,688,149 

6,651,144 

48,407..332 

27,798,216 

5,107,407 

23,812.271 

33,261,308 

5,395,160 

5,347,988 

16,980,248 

3,385,257 

3,843,638 

652,846,705 

10,886.385 

3,145,045 

57.308,879 

4.395,692 

2,184,122 

34,276,795 

25,881,328 

14,297,754 

12,668,947 

5,668,353 

494,365.696 

75,231,039 

11,718,439 

429,192.133 

15.512.541 



$1,684,452.775 $1,535,109,275 ' $1,607.058,120 



•1,935,870 237 



$2,034,256,971 



$4,150,418 

7,394,518 

41,116,330 

26,103,653 

5,023,226 

19,950,866 

31,774,421 

5,193,175 

4,465,827 

15,127,876 

2,776,853 

3,886,152 

590,760,454 

9,654,142 

3,118,277 

47,220,857 

4,422,908 

2,222,769 

32,565,553 

22.456,612 

14,161,893 

10,730,512 

5,630,313 

501,323,633 

81,174,710 

11,565,350 

403,8-33,417 

1-5,906,848 



1,923,711,563 



January 7, 1921 



THE MONETARY TIMES 



39 



CANADIAN BANK CLEARINGS 

The following: lable gives the yearly total clearings of each house since its commencement :- 
(Note. — In practically all cases the first figure is for a broken period.) 



City 


1889 


1890 


1891 


1892 


1893 


1894 


1895 


1896 


1897 


1898 


1 E 

2 E 

3 C 

4 E 

5 F 
B h 

7 V 

8 1 

9 L 

10 L 

11 t> 

12 A 

13 A 

14 A 

15 ^ 

16 C 

17 F 

18 F 

19 C 

20 F 

21 S 

22 S 

23 S 

24 1 

25 V 

26 \ 

27 \ 

28 \ 




$ 


s 


« 


% 


$ 


% 


s 


s 


s 


c 
























rantioru 

































































lalifax 


47.534.252 


62.281,748 


64.601,913 
10,320.134 


59.872.489 
38.306.280 


60,381,918 
37,824,976 


58.778.698 
34.307,856 


60,978,524 
34,277,878 


61,237.206 
33,753.865 


63.513,838 
33,350.542 


61.942.831 
35.637.364 










fhh 1« 




















H ^ ' ■ 






















onaon. ... .... 






















1^ ct"^ 






















lontreal 


454.528.000 


473,984,000 


514,607,000 


590.043.000 


568,732,000 


546.600.000 


583,160.000 


,527.851,000 


601.185.000 


732.262.000 


J. Westm'ster 










































f h 






















Alh *■ 






















,'"' t,^ '' 






















juepec 






































20,284.420 


30.109.575 


30.349.265 




















. ■ . ° , 






















oronto 






145,897,939 


326,564.323 


309,278,689 


279.270.739 


308.636,044 


342.031.851 


371.456.867 


437.661.654 
8.414,923 


H ^n a 




















5,931.409 




































50.602.648 


55,873,630 
1,042,926,076 


64,146,438 


84.435.832 


90,724.325 


















$502,082,252 


$536,265,748 


735,426,986 


1.014.786.092 


976,217.583 


969,559.941 


1.049,304,780 


1.184.051.654 


1,402,923,771 




1899 


1900 


19U1 


1902 


1903 


1904 


1905 


1906 


1907 


1908 


1909 




$ 


s 


s 


$ 


$ 


s 


$ 


* 


$ 




S 


2. 

3 





























"•;■;■■;■■;;; ;;;;';;; 




41,771,924 
20.083.179 


69,745,006 
45,916.792 


64,815,227 
38,496,509 


99,453.662 




51.561.012 


j 
















6 
7 
8 
9 


70.600.705 
40.298,084 


77.594.871 
40.262.588 


87,161,888 
42,554,583 


,S8,532,368 
45,965.217 


93,349.633 
53,419,704 


90.115.784 
59.003.094 


89,251.562 
68.385,601 


92,468,040 
78.480.620 


93.587.138 
88.163,279 


90,232,247 
72.333.062 


95.278.468 
84,803.936 






























23,097,509 


42.848,581 


45.552.230 


50,429.505 


58.063,826 


65,770,473 


56,875,041 


62,093.337 












12 
13 








• 
















794.029,000 


73(),933,o66 


889,479,66b 


1,098,970,000 


1,113,978,000 


1.065.067.000 


1,324,313,000 


1,533,597.000 


1,555,729,000 


1,467,316,000 


1.866.649,000 


\* 


























29,200,088 


96.445,291 


106,083,750 


106,637.587 


120.891,877 


135,866,735 


156.487.801 


154,367,756 


173,181.973 


17 
18 






1 






















48,177,614 


73,881,253 


80,794,414 


77,649.688 


86.734,553 


92.934,213 


107.460.897 


111,812,551 


118.803.773 


20 
21 
22 
23 
24 
25 
26 
27 
28 






32,922,509 1 36.001.574 


40,072,689 


41,702,253 


48,950,500 


50.756.315 


52,836.333 


60,601,241 


66.150.414 


66,435,636 


72.404.500 




















504,872,846 ; 513.696.401 
37,802,218 ! 46.644.098 
33,199.807 1 32.779,919 


625,271.306 
47,006.211 
30,801.369 


809,078,559 
54,467,549 
28,580.751 


808.748.260 
66.215.765 
30,818.426 


842.097.066 
74,029.902 
33.070.009 


1.047.490.701 
88.460.391 
36.890.464 


1.219,125.359 
132.606.358 
45.615.615 


1 228,905,517 
191,734,480 
55,339,588 


1,166,902,436 
183,083,446 
55,356,013 


1.437.700.477 
287,,528,944 
70,695,882 


107,786,814 106,956,792 


144.199,483 


188,370.003 


246.108.006 


294.601.437 


369.868,179 


504.585,914 


599,667,576 


614,111,801 


770,649,322 




1,621,511.983 1,584,869,243 


1,983,924.231 


2,549,090,693 


2,691,315,039 


2.738.580,112 


3,335.552.166 


4,015,800.024 


4,324,648,961 


4,142,137,725 


5,204,957,530 




1910 


1911 


1912 


1913 


1914 


1915 


1916 


1917 


1918 


1919 


1920 


1 
2 
3 
4 

6 
7 
8 
9 
10 
11 
12 
13 
14 
IS 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 


s 

21 ,278,869 

" 150,677.031 
71,635,122 

95,855,310 
101,226,496 


s 

29,430,274 
27,206.985 
218,681.921 
121,438,391 
7,865,923 
87,994.038 
125.250.982 


s 

32,875.875 
30,749,317 
275.492,303 
220.727.617 
40,503.087 
100.467.672 
167.712.729 

"33,485,947 
84.526,961 


s 

32,186.498 
32.697,443 
247,882.928 
213.0.53,218 
49.265,358 
105,347.630 
178,107.853 

28.893,876 
90,720,202 
21 106,215 


$ 
26,397,443 
28,669.309 
201.669.873 
157.308,683 
39,110,558 
100,280.103 
148,934.586 

" " 21.217',849 
86.024,236 
19,768,862 


$ 
27,132.123 
26.640.280 
169.758,599 
105.834,955 
24,674,847 
104,414,590 
151,420.271 

19.740,328 

89.774,787 
13.503.194 


S 
28.922.518 
34.243.297 
233.097.671 
114,345,%4 
27.472,160 
125,997.881 
200.811.087 
20.201,665 
31,648.551 
100,090,560 
21,670,502 


s 

30.429.612 
42.189.449 
348.663.426 
142.606,772 
34,224,050 
151.812.753 
244.401.339 
30,268.621 
45.021,074 
112,664,207 
29,716.159 


$ 
32,654,296 
48,141,451 
331,334,577 
171,524,924 
38,313,344 
215,259,297 
262,076,476 
32,549,572 
41,901,108 
126,958,350 
24,088,013 


$ 

36,922,769 
57,825,305 
355,009,588 
233.066,5*0 
41.224,768 
241,300.194 
306,370,966 
48,244,693 
38,179,533 
164,126,856 
23,778.450 


$ 

41,398,339 

76.108,949 
438,073.077 
293,269,362 

47,209,878 
2.5S.678,.397 
380,733,960 

61.580.497 


9,378.091 
67,154.297 


28.818.693 
71.554.221 


45.667,866 
192,157,969 
28,808,580 








17.090.876 


2.088,558,000 


2.368,491.239 
39.872,743 


2,845,468,033 
65.136,326 


2,879,118.859 
61,370,943 
28.424,494 
207.667.008 


2,631.354,533 
45 846,371 
19,284.692 

209,662,599 
11,338,896 
12.574.904 

165,873,241 
98,205.535 
78.259,921 
59,314,941 


2,628,123,428 
42,634.319 
■13,460,082 

211,636,519 
20,970,664 
8.622,444 

158.325.906 
87.122.611 
77.058.264 
50.146.843 


3,722,609,663 

52,971,442 

13,878,003 

261,049,599 

26,675,636 

9,709 906 

192,163 703 

I24,349„591 

90,946.795 

68.316.153 

24,378,900 

2,570,229,725 

321,588,718 

■ 80,331,121 


4,188,2,55.210 
64.896.741 
17.480.445 
291.197.713 
32.917,018 
11,811,256 
213,.504,960 
169.800,113 
, 102,948,814 
93.730,650 
33,949,442 
3,004,783,565 
419.610,898 
84,822,216 


4,833,924,041 
78,425,563 
23,565,159 
357,598,753 
37,574,621 
14,149,320 
237,904,224 
184,624,626 
117,133,609 
91,431,882 
42,406,079 
3,379,864,506 
545,368,714 
101,471,607 
43,3,54,403 
2,362,734,211 


6,254.781.093 
86,347.586 
28 714.013 
472.691.921 
• 41.376.004 
21,280.641 
290,983.483 
210.989,136 
153.139,927 
105,887,578 
49,574,861 
4,251 644,303 
655,913,205 
119.391,345 
95,790.321 
2.316.724,263 


7.109.189,038 
94,578,332 






193,714.888 


213,952,292 


244,123,451 


515.006.581 
50,639.788 






8,545,562 
158,760,185 
115.727,647 
88,969,218 
115,898.467 


22,936.528 
165.654,745 
132,087,457 
82.447,747 
96,034,717 


24.046,236 


123.710.055 
50.739 159 
77.843.546 
9,004,823 


133,319.176 
73,032.088 
77,328,182 
63.557.142 


367.295,561 
230,269,296 
176,670,387 
115.403,072 
64.046.860 


1,593.954,2,54 
444,988.818 
101,567.074 


1.852,397,605 
543,484.354 
134,929.816 


2,160.230,376 
645,118,877 
183,544,238 


2.1S1.281„577 
606.899.710 
176.977,074 


2,013,055,664 
420,951,718 
121,663.272 


1,885.956,257 
281.575.949 
76.677.626 


5.410.204,802 
878.901.621 
145.707.146 
171,266.199 


28 


953,415,182 


1.172.762.142 


1.537.817,524 


1.634.977.074 , 1.370.960 806 


1.530.683,124 


2,011,795,257 


2,622,924,702 


3.016.054.299 




6.154,701.015 


7.391.368.207 


9,155,881,412 


9.275.139.154 


8.087.728,595 


7.805.888.010 


10,509,496,068 


12,564,633,205 


13,776,332,726 


16.701,279,382 


20,283.555.305 



THE MONE, TARY TIMES 



Volume 66 



The Trust Companies' Business in 1920 

Scarcity of Funds for Investment was Outstanding Feature of the Year— Capital 
Needed for Development of Farms and Industry— Succession Duty Legislation in 
Ontario— Law Respecting Beneficiaries— Growing Appreciation of Trust Company Service 

By ROBERT BEATTIE 

National Trust Co., Toronto 



T^HE scope of the business of Canadian trust companies is 
•*■ now so well known that there would be little value to 
such a paper E'S The Monetary Times, in any resume of the 
work they carry on. The public is coming more and more to 
realize that the business of a trust company is to exercise 
the various functions which trustees exercise, and to see that 
there are advantages in having these functions carried out 
by corporate bodies instead of by individuals. Accordingly, 
the trust comp&nies have had steady and satisfactory de- 
velopment of their business as ej^ecutors and administrators, 
and in the various other trusteeships which modern business 
requires. The purpose of this review, however, is not to dwell 
on this development, but merely to refer briefly to certain 
points of special interest and concern to which the attention 
of trust company officials has been directed during the year. 

Shortage of Capital 

The outstanding feature of the past year has been scar- 
city of funds available to the lending corporations for invest- 
ment. The significance of this fact from the n&tional point 
of view will be recognized if it is borne in mind that the 
development of Canadian agriculture depends to a very con- 
siderable degree on the moneys loaned to Canadian farmers 
by Canadian loan and trust companies. 

In the past funds have reached the farmers from two 
sources. The first source was formerly the savings of the 
people in European countries, notably Scotland, Holland, Bel- 
gium and Prance, who, prior to the war, sent through Euro- 
pean agencies and Canadian trust and loan companies large 
sums for investment in Canada. The European requirements 
of capital for war purposes combined, with adverse exchange 
rates during the war, to slacken the flow of funds. In 
the later stages of the conflict, European capital became 
increasingly difficult to obtain, and since the war it has be- 
come impossible to send money profitably out of Europe for 
investment. This source of supply has therefore been cut 
off. At annual meetings of trust companies during the year 
it was pointed out — and up to the present the statement has 
proved true— that for an indefinite time Canada would be 
thrown more and more on her own resources for the capital 
needed for her development. Contrary to what might per- 
haps have been expected, the United States has not yet 
furnished any considerable amount of money for Canadian 
mortgage loans. Although present exchange conditions offer 
American investing corporations advantages in this field, the 
demand for farm loans in the United States has so far been 
strong enough to prevent American capital from seeking 
this Canadian outlet. 

The other source from which money formerly re&ched 
the' Canadian farmer was the funds which the trust and loan 
companies administer as part of the assets in their care or 
themselves own — their capital and reserve. So far as the 
trust companies are concerned, this is now aJmost the only 
source available for mortgage money. With the general 
increase of trust company business, it has grown substan- 
tially. Competing with the demand for farm loans, however, 
is the need of municipalities and industries for capital, re- 
sulting in offerings by such corporations of bonds &t attrac- 
tive rates. Many trust company officials feel, therefore, that 
the domestic source of supply above mentioned is not likely 
to be by any means sufficient to meet the probable early 
needs of the country for capital. Already at least one of 
the provincial governments has undertaken a n&tional cam- 



paign to sell bonds with the object of lending the proceeds 
to farmers. Another has opened savings banks in an effort 
to supply funds for farm development. These are only two 
of the many signs which show that in order to discharge 
their function in the community — to provide sufficient funds 
so that governments shall not be obliged to exhaust their 
credit (already strained to take care of the recognized public 
undertakings and services) in financing private enterprise — 
the companies will have to make every effort consistent with 
their duty to their clients to attract funds for investment on 
mortgage security. 

Outstanding Loans In Good Condition 

On the other hand, the outlook for loans already made is 
of the brightest. There is every prospect that the f&rmers, 
after the marketing of the crop of 1920, will have funds to 
meet all their commitments. Their need for capital will, 
however, be none the less, because it is these very successful 
farmers who should develop mixed farming. This will make 
them borrowers of the highest class of such funds as the 
companies have available. Their assets already developed 
will give them ample security for necess&ry loans, and their 
borrowings will be invested in the erection of new buildings, 
the purchase of better stock, and generally in the improve- 
ment of their holdings. During the past few years the im- 
provement along this line, in the west particularly, has been 
phenomenal. The rude farm shacks, which at one time were 
fairly common in some sections, have given place to sub- 
stantial dwellings. Improved barns &nd outbuildings and 
increased farm machinery, have replaced the eai'lier limited 
equipment. Electric light, motor transit, better roads and 
telephones have broken down the isolation which used to 
make life in the farming districts difficult. The faith of 
those who early saw the future of Canada's vast spaces is 
being completely justified. 

Succession Duties 

Another field is of interest to trust companies — the field 
of legislation dealing with property. The year just ended 
has seen several new laws passed which affect their dealings 
with property in their charge. In Ontario the most important 
law, perhaps, has been the Succession Duty Amendment Act, 
passed e.-t the late session of the legislature. In the form' 
earlier proposed, this law contained changes which were far- 
reaching, but it was so modified subsequently, that it refers 
in its final form only to the exemptions of estates from death 
duties and to the rates payable on estates of various sizes 
passing to various classes of beneficiaries. In 1905 estates 
aggregating $50,000 or less were exempted from taxation if 
they passed to lineal beneficiaries. This exemption was sub- 
sequently reduced to $25,000. As a result of other changes, 
of which the one of the past ye&r is the latest, only estates 
of $10,000 or less are exempt if passing to near collateral 
relations, and only estates of $5,000 or less are exempt if 
passing to remote collaterals or strangers in blood. 

Another change brought about by the recent Succes- 
sion Duty Act refers to the administration of the law. Under 
former arrr.-ngements the Succession Duty Office was re- 
quired to satisfy itself that there had been no undervaluation 
of the assets which came under its survey. This duty is now 
transferred to the Surrogate Judge concerned with the pro- 
bate of the will. The duty of making the valuation remains. 



January 7, 1921 



THE MONETARY TIMES 



of course, where it has always rested — on the executor of 
the estate. 

Beneficiaries 

Another Ir.w recently passed which aifects the procedure 
of the companies, concerned as they often are in the tracing 
of missing- beneficiaries of estates in their charge, is the 
Absentee Act, passed also last session in Ontario. This act 
provides that the Court may declare a person an absentee. 
An absentee it defines as "one who having had his usual 
place of residence or domicile in Ontario, has disappeared, 
whose wherec.'bouts are unknown, and as to whom there is 
no knowledge as to whether he is alive or dead." The Court 
may also make an order for administering the property of 
an absentee and a committee may be appointed for the pur- 
pose. The powers and duties of the committee are the same 
as those of a committee of the estate of a lunatic. The act 
specifically provides that a trust company with or without 
one or more persons may be appointed such a committee. 

The last legislation to which attention should be drawn 
in an article such as this is the new bankruptcy law of the 
Dominion, which went into force in July. The adv&ntages of 
this act in making uniform the regulations of all the pro- 
vinces dealing with this import&nt matter are obvious. So 
far as the trust companies are concerned,, the law has been 
in operation too short a time as yet for a forec&st to be 
possible of its defects on their work. That trust companies 
have superior facilities for the performance of the duties of 
trustees in bankruptcy, as well as those of receivers, liqui- 
dators and assignees, no one acquainted with their organiza- 
tion will question. Their offices are in ma-ny cases distributed 



throughout the country, and each oflice staff includes experts 
with long training and intimate acquaintance with local con- 
ditions. Trust company officials generally believe that as 
time goes on the amount of work of this kind which they are 
asked to perform will' become very large. 

The Volume of Business 

The editor of The Monetary Times hais suggested that its 
readers might like to know "how trust companies get their 
business." It is not easy to give an accurate and confident 
answer to this question, since although the companies know 
what are the influences which lead a man or woman to en- 
trust his or her affairs to them, it is very difficult for them 
to class these influences in the order of their power or im- 
portance. The comp&nies would agree that one of the most 
important causes of their appointment to positions of trust, 
is the advice which solicitors give their clients. Another 
factor is the high reputation of the individual company- — 
direction, executive and staff. This explains, however, rather 
the appointment of one company instead of another, than the 
appointment of a comp&ny instead of a person. Perhaps the 
most valuable influence is that of satisfied clients and bene- 
ficiaries: for it holds in the trust company business as in any 
other that the best advertisement is a satisfied customer. It 
remains to name advertising as the means by which the 
compE^nies try to find new clients to satisfy. In recent years 
most companies have made steady efforts to explain their 
service to the public, and there can be little doubt that gen- 
eral knowledge of the duties which the companies perform 
is growing. 



Canadian Banks Expand in Foreign Field 

Movement of 1919 Continued in 1920— Montreal Makes Important Connec- 
tion, and Commerce and Royal Increase Branches in South — Foreign 
Branches Bring Capital to Canada— How They Help the Canadian Exporter 

By G. F. Towers, B.A. 

Superintendent, Foreign Trade Department, Royal Bank of Canada 



THE year 1920 has been one of development for Canadian 
banks abroad, a development accomplished partly by means 
of alliances with established banks, partly by the opening of 
foreign branches of our own institutions. Last year's Annual 
of 77(1' Monetary Times signalled the entry of the Royal 
Bank of Canada into Argentina, Uruguay and Brazil, where 
branches were established at Buenos Aires, Montevideo and 
Rio de Janeiro respectively. The same review noted the con- 
nection of the Dominion Bank with the British Overseas Bank, 
Ltd., head office London, an organization formed to handle 
foreign trade, and also the affiliation of the Union Bank of 
Canada with the Park Union Banking Corporation, operating 
in the far east. Branches of the latter had even then been 
opened in China and Japan. 

The Year 1920 

Developments of this nature have gone on in force during 
1920. The Bank of Montreal acquired an interest in the Colo- 
nial Bank, a British organization with strong connections 
through the British West Indies. The Canadian Bank of Com- 
merce entered the Caribbean- field, and by November 30th last 
had established branches in Havana, Cuba, and Kingston, 
Jamaica. They had fui'ther announced their intention of com- 
mencing business in Rio de Janeiro, Brazil, and Port of Spain, 
Trinidad. Finally, the Royal Bank of Canada, throughout the 
year, pursued its policy of expansion, increasing the number 
of its branches in Caribbean countries, and opening in Barran- 
quilla, Colombia, and Santos and Sao Paulo, Brazil. This 
bank now covers all the islands of the Caribbean and seven 
countries in Central and South America. The total number of 
foreign branches of Canadian banks is now probably one hun- 
dred and fifty, not including their offices in Newfoundland. 



This compares with little over one hundred branches on Octo- 
ber 31st of last year. 

Foreign Deposits Increase 40 Per Cent. 

The growth of old branches and establishment of new of- 
fices have been reflected in the figures of the monthly state- 
ment of the chartered banks to the Dominion government. 
The increase in foreign deposits has been striking. On Sep- 
tember 30th, 1919, the consolidated monthly return showed 
$255,000,000 under the head of "deposits elsewhere than in 
Canada." This amount had increased about 40 per cent., to 
$355,000,000, by September 30th last. Of the $100,000,000 in- 
crease the Royal Bank of Canada contributed $67,000,000, the 
deposits in their foreign branches increasing in the twelve- 
month period from $113,000,000 to $180,000,000. During this 
40 per cent, increase in foreign deposits Canadian notice and 
demand deposits increased a little less than 4 per cent., and 
total assets of all Canadian banks about 10 per cent. 

Current loans and discounts elsewhere than in Canada are 
always less than foreign deposits. On September 30, 1919, the 
former were $151,000,000. On September 30, 1920, they stood 
at $202,000,000, or about 57 per cent, of the foreign deposits 
on that date. The idea that foreign expansion of our Cana- 
dian banks would divert to other countries the capital urgently 
required for Canadian development should by now be thorough- 
ly discredited. It is interesting to note that at the time when 
exponents of this theory were most numerous in Canada they 
were also in force in the countries where our banks were lo- 
cating, the only difference being that the contention of the citi- 
zens of these countries reversed the Canadian viewpoint, since 
thev claimed that the foreign banks in their midst diverted 



THE MONETARY TIMES 



Volume 66 



local capital to the countries where the banks' head offices 
were located. 

Detailed figures of changes during the twelve' months end- 
ing September 30th last are given below: — 

All Canadian Chartered Banks — Fisures of Deposits, Etc., 
Elsewhere Than in Canada 

Sept. 30,'19 Sept. 30,'20 Increase 

Deposits $255,274,256 $355,238,992 $99,964,736 

Current loans and dis- 
counts 151,814,511 202,590,184 50,774,673 

Due to banks and bank- 
ing correspondents 37,433,749 63,667,391 26,233,642 

Due from banks and 
banking correspon- 
dents 59,644,718 73,476,022 13,831,304 

Call and short loans__ 169,532,489 186,962,960 17,430,471 

Our Foreign Trade and Foreign Banking Status 

Canada's foreign banking system is an organization sin- 
gularly complete for a country of this size. It is perhaps lit- 
tle realized how comparatively far advanced Canada is in this, 
as in other aspects of our foreign relations. Argentina has as 
large a population, Brazil a much larger one, yet, leaving for- 
eign-controlled banks out of consideration, neither country has 
anything approaching the foreign or domestic banking sys- 
tems possessed by Canada. England's wonderful foreign 
banking organization reached its present position after seven- 
ty-five years of development. The United States, on the other 
hand, had no real organization of this sort until after the com- 
mencement of the war. The need for it was felt long before 
it came into being; and the speed with which it had to be cre- 
ated, joined to the lack of anj'thing to build on, greatly in- 
creased the difficulties which have always to be faced by any 
expanding organization. 

A survey of Canadian foreign trade figures, from the 
point of view of Canadian progressiveness, reveals a some- 
what similar situation. In the fiscal year ending March 31, 
1918, Canadian exports and imports were valued at over two 
and a half billion dollars, or three hundred dollars per head of 
our eight and a half million people. England's foreign trade 
was $277 per capita during approximately the same period; 
that of the United States — the enormous figures of which 
have been given so much publicity — was only $97 per capita. 
India and China, thickly populated but poorly developed, have 
respectively a per capita foreign trade of $5 and $3 per annum. 

The transaction of foreign business on this scale, and the 
provision of facilities for financing the major portion of it, are 
phenomena not ordinarily seen in a country of our size and 
stage of development. 

Export Trade 

A year ago the surveys of 1919 which were being pub- 
lished were able to review a year of unbroken prosperity. 
Agricultural, manufacturing, wholesale and retail distributing 
industries — all were on the crest of the wave; and if Cana- 
dian foreign trade did not equal the record of 1918, it was still 
very lai'ge, and showed a surplus of exports amounting to 
three hundred million dollars for the year. In many lines the 
question was more one of supply than of demand. So strong 
was the buying power of the domestic market that export 
trade was not of primary interest to many manufacturers, 
though much was said and written about it. The present situ- 
ation is far from being equal to that of last year. 1920 will 
be a record year for some industries. Others have already 
been hit by the slump. But all now realize that readjustment 
is at hand and that the pi-ospects for 1921 are uncertain. 
There will be more reason to cultivate export trade at a time, 
however, when other countries will be suffering from the same 
difficulties as ourselves. Competition will be keen, orders dif- 
ficult to secure, and when secured should be accepted only 
after a most careful investigation of the credit standing of the 
intending purchaser. 

What Canadian Banks Can Do 

Our Canadian bank branches abroad are going to be of 
great assistance in this period. They are ready to help Can- 



adian industries and export trade in any possible way. The 
supplying of information on foreign markets and conditions, 
and on foreign exchange, is one of the first services they can 
render. They ai'e often in a position to put Canadian manu- 
facturers in touch with foreign importers. Any actual busi- 
ness obtained naturally depends on the cost and quality of the 
product. Canadian banks with foreign branches or affilia- 
tions, by reason of being closely in touch with foreign condi- 
tions are in a better position to discount their clients' documen- 
tary drafts on recognized foreign houses than they would be if 
they had confined themselves to domestic business, since it is 
quite possible that they will know the foreign firm in question 
or hold private reports on its responsibility. The most im- 
portant service is, of course, the supplying of full credit infor- 
mation on foreign houses to Canadian business men. The 
necessity of obtaining this through doubtful or unfamiliar 
sources would have a tendency to lessen the confidence of Can- 
adian houses in the value of the reports and to increase the 
difficulties of the Canadian manufacturer who was endeavor- 
ing to book foreign orders. Happily this necessity does not 
exist as far as many countries are concerned. Canadian firms 
are at liberty to take full advantage of the facilities offered. 
No charge is made, nor, as far as we know, is there any stip- 
ulation that enquirers should be clients of the bank concerned. 



RURAL CREDITS MOVEMENT GROWS IN MANITOBA 

Twenty New Societies Organized in 1920, and Loans 
More Than Doubled 

MANITOBA'S rural credit system had another year of ex- 
pansion in 1920. This is the only province which has 
such a system in active operation, but some of the other prov- 
inces have taken steps in this direction. Ontario appointed 
a commission last year to enquire into the subject, and a re- 
port is expected shortly. Regarding progress in 1920, C. N. 
Gifford, supervisor of the Manitoba system, said in a state- 
ment to The Monetary Times: — 

"The Manitoba Rural Credits Act has been in force about 
three and a half years. The following table shows the growth 
in the number of societies and the business done: — 

Amount of 
Year No. of societies loans granted 

1917 1 $16,600 

1918 10 215,581 

1919 38 1,051,876 

1920 58 2,480,345 

More Being Formed 

"While we have only 58 societies in actual operation there 
are ten more to which charters have been issued, and which 
are in the formation stage. The number of farmers who are 
members of the societies would be slightly over 4,000, with 
510 directors. 

"A combined financial statement of the 38 societies doing 
business in 1919 shows them with an authorized capital of 
$760,000, a subscribed capital of $429,950, and a paid-up cap- 
ital of $64,175. Of the unpaid capital $168,000 represents the 
balance on their shares which the pro\'ince of Manitoba and 
the rural municipalities can be called on for; $58,573 of the 
paid-up capital is invested in municipal, school district and 
government bonds. 

"The societies operate on a 1 per cent, margin; after pay- 
ing all expenses they show a net profit of $3,200. After a 
society has been operating two years they cannot only pay all 
expenses but show a good surplus, which is being used to 
create a reserve fund to take care of any loans that might 
occur. So far not one dollar has had to be written off. 

"During 1920 part of the loans were carried by the banks, 
but the largest part of the funds for loaning were borrowed 
by the societies from the provincial government. 

"Our loans are practically all due in December. We have 
due up to November $130,000. To date (November 19th) our 
collections amount to $124,780." 



January 7, 1921 



THE MONETARY TIMES 



Bank Loans in Relation to Deposits 

Loans in Canada Increased by $359,000,000 — While Increase in 
Deposits Was Only $79,000,000— This Demand for Funds Naturally 
Strained Banking Facilities — All Classes of Borrowers Affected 

By O. A. HARPER 

Manager, Sterling Bank, Winnipeg, Man. 



*' A RE we going to let the east shut off our credit like 
■^*- that?" or words to that effect, is a question recently 
asked the writer by a man well versed in business. We were 
discussing the affairs of a certain wholesaler whose matur- 
ing payments were being demanded by eastern manufac- 
turers. To all appearances he is solvent but requires an ex- 
tension of time to meet payments. He has not been able to 
sell or collect for his stock as expected. Trade is dull in 
his line and his shelves are full in the face of falling prices. 
This question expresses a sentiment that is causing a 
sectional division in the Dominion which, if allowed to grow, 
will seriously retard recovery from a trade depression felt 
in east and west alike. Is it reasonable ? 

Stringency is a General Condition 

One cannot lend what he does not have. Working from 
this premise, examine the financial condition of the country 
which is reflected in the loans and deposits of the chartered 
banks. Some of the figures given in The Monetary Times of 
November 5 may well be repeated. These figures show that 
neither eastern manufacturer, western wholesaler, banker, 
nor any other individual, class or section, is alone respon- 
sible for the present tight money condition. The mass of the 
people as a whole are responsible. They must produce more 
than they consume and save substantially before they can 
expect increased credit facilities. 

The last government return of the banks available at 
time of writing is up to the end of September, and figures 
of demand or current account and savings bank deposits for 
the preceding twelve months are as follows: — 

Deposits payable Deposits payable 

on demand. after notice. 

1919— September . . $650,743,015 $1,227,4.37,715 

October 705,280,241 1,262,746,984 

November 728,657,589 1,137,858,277 

December 703,329,292 1,138,086,691 

1920— January 621,408,024 1,163,297,037 

February 620,069,555 1,187,027,307 

March 657,412,028 1,197,719,570 

April 652,918,760 1,209,573,990 

May 645,957,229 1,229,073,515 

June 659,622,583 1,243,700,977 

July 639,415,025 1,253,170,443 

August 640,361,707 1,261,647,732 

September 677,286,905 1,270,194,097 

It will be noted that there is an increase in demand de- 
posits for the year, of almost $27,000,000, but as these funds 
are for immediate current use, they cannot be relied on by 
the banks as a basis for extending credit. Notice or savings 
bank deposits show an Increase of almost $53,000,000, mak- 
ing a total increase in deposits of only $79,000,000. As 
against this, note the following figures for commercial loans 
for the same period: — 

Current in Call in 

Loans. Canada. Canada. 

1919— September $1,058,572,202 $ 96,912,709 

October 1,104,940,160 100,549,390 

November 1,189,408,423 121,754,469 

December 1,207,109,046 125,888,760 

1920— January 1,226,962,963 132,015,334 

February 1,257,015,902 127,251,919 

March 1,322,267,030 128,233,310 



Current in Call in 

Loans. Canada. Canada. 

April 1,347,238,230 125,644,859 

May 1,349,079,981 119,114,493 

June 1,365,151,083 115,272,587 

July 1,377,276,853 115,360,894 

August 1,385,470,153 113,598,923 

September 1,417,520,756 114,669,611 

Loans Have Outrun Deposits 

There was an increase in commercial loans in Canada 
for the twelve months of $359,000,000, as against the in- 
crease in total deposits of $79,000,000. Total commercial 
loans amount to $147,000,000 more than the total savings 
bank deposits. The answer to the thought underlying the 
opening question of this article is contained in these figures. 
Commercial loans in one year have increased $280,000,000 
fa-ster than all deposits, and new loans cannot be extended to 
develop future business unless promises to repay are kept 
as they mature. The eastern manufacturer is in the same 
position as the western wholesaler and every one else. He 
must pay his bills as they fall due or business as a whole 
must slow up or halt. 

Where has this money to increase the loans come from 
and who borrowed it? are two questions often asked. 

Have Reduced Security Holdings 

In answer to the first, I would point out, the bank state- 
ment referred to show the banks have withdrawn $267,000,- 
000 during the year from Dominion and provincial govern- 
ment, municipal and other securities. The banks had pre- 
pared for a readjustment period after the war. Even after 
withdrawing the above amount from their liquid assets they 
are in a very strong position, but they cannot continue to con- 
vert their immediately available assets into commercial 
paper and at the same time remain in a sound banking con- 
dition. The baJance of the increase in commercial loans, 
$20,000,000, was obtained from various sources in compara- 
tively small amounts. 

Who borrowed this money? The popular opinion is that 
the profiteer has it to enable him to hold goods or grain for 
exorbitant profits. No one considers himself the profiteer, so 
all are ready to share the popular opinion and blame the 
other fellow. 

The manufacturers and the wholesalers always have 
used a share of the loans, and it is natural to assume that 
in the face of higher prices their loans are considerably 
larger than in pre-war times. But as all loans and deposits 
have grown since those good old days, it does not follow that 
they have a larger proportion than formerly. 

Loans to Farmers Have Grown 

The farmers, and especially the western farmers, have 
always required large credits during the spring, summer and 
early fall seasons. There are good reasons for assuming 
that this fall they have a larger proportion of credit than 
usual. 

First, — They have been operating under higher costs of 
seed, labor and all the incidental expenses that enter into 
farming. 

Second, — Some sections of the western provinces have 
had as many as three years' bad crops in succession. The 



THE MONETARY TIMES 



Volume 66 



result is that loans in these sections have had to be carried 
over and increased from year to year. 

Third, — In these districts of bad crops, where farmers 
were not in a position to warrant increased loans, the 
governments or municipalities have assisted them to obtain 
credit, with the result that many such loans have increased 
and still remain unpaid. 

Fourth, — The farmers depended on higher prices this 
fall and had obligated themselves accordingly. Now, with 
the prices down, many of them cannot realize enough to pay 
all their debts, and many more refuse to sell their crops at 
prevailing prices, with the result that neither their merchant 
nor their banker is paid. The merchant must ask an exten- 



sion from the wholesaler, who in turn asks an extension 
from the manufacturer and thus all are prevented from re- 
ducing their indebtedness. This latter condition also arises 
from many other small consumers not meeting their local 
bills promptly. 

No analysis of loans as to the occupation or district of 
borrowers is available, but if such an analysis could be made 
it is fairly certain that the increased loans resulting in tight 
money would be found to be spread over a^ll classes and 
businesses, farmers included. Thus, instead of the blame 
being placed on the east or the manufacturer, it would fall 
on the public as a whole, who are not saving sufficient of 
their production to develop a young and growing country. 
No man can lend what he has not. 



Dominion Note Circulation Around $300,000,000 

Went Down in Midsummer But Rose Again in Autumn— Gold Reserve 
is $27,000,000 Less Than Last Year — Securities Held Against 
Dominion Notes Outstanding— Currency and the Movement of Prices 



/CANADA'S government issues are based on a gold reserve, 
^ the ratio of which, however, through the exigencies of war 
finance, has been considerably reduced. The Dominion Note 
Act of 1914, by which the issue is authorized, permits an issue 
of $50,000,000 in the first instance against a reserve of 25 per 
cent, of this amount in specie, any additional issue to be cov- 
ered by an amount in gold equal to any issue in excess of 
$50,000,000. 

These requirements were modified subsequently by the 
necessity of providing funds in connection with- the taking 
over by the government of the Canadian Northern and the 
Grand Trunk Pacific Railways. Sixteen million dollars was 
required for this purpose and another $10,000,000 to meet 
maturing obligations of the government in connection wit! 
the war. 

For the $16,000,000 securities of these railways are held 
but are not included in the list of approved securities reported 
in the government returns as held against issues of Dominion 
notes. Virtually, therefore, issues of $76,000,000 are author- 
ized against a reserve of $12,500,000 gold, or an uncoverec 
issue of $63,500,000. 

While the act calls for gold equal to any additional issue, 
the Finance Act of 1914 permits advances to banks by the 
issue of Dominion notes against approved security. This has 
undoubtedly been availed of to a considerable extent in order 
to provide the additional currency required to handle the bus- 
iness of the country at the prevailing high prices. No exact 
details, however, of the amount so advanced are given in any 
of the returns published by the government, these advances 
being apparently included in "Balances due to Dominion gov- 
ernment after deducting advances for credits, pay lists, etc." 
in the monthly bank statement. 

Considerable Inflation 

While there is ample security for the issue the ratio of 
actual gold held has decreased materially since 1914, and as 
the basis of our currency is gold, there is consequently infla- 
tion in proportion to the decrease in the ratio of specie actu- 
ally held. Considering, however, the strain on the finances of 
the country by the war, as well as by the consequent disloca- 
tion of trade, it is a tribute to the soundness of Canada's 
financial position that this inflation is not far greater. To 
realize this it is only necessary to compare the position of 
Canada's currency with that of other nations. The value of 
cux-rency compared with commodities, as shown in the whole- 
sale prices current in different countries is a reasonable indi- 
cation of the inflation of the currency. The September Com- 
mercial Letter of the Canadian Bank of Commerce gives the 
rise in these prices since 1914: 



Per cent. 


$92,000,000 


81 


89,000,000 


59 


114,000,000 


65 


119,000,000 


67 


114,000,000 


41 


118,000,000 


39 



Per cent. 

Canada 150 

Austr-alia 112 

United States 112 

United Kingdom 200 

France 300 

Italy 400 

In France and Italy the percentage in the early part of 
the year was considerably higher. 

The government issues and the specie held against them 
at the close of the fiscal year since 1914 were as follows: 

1914 $114,000,000 

1915 ^^— 152,000,000 

1916 175,000,000 

1917 178,000,000 

1918 281,000,000 

1919 229,000,000 

In considering, however, the gold reserves of the country 
and the outstanding circulation, the bank issues and the gold 
held by them must be taken into consideration. 

The total of Dominion notes outstanding over the period 
of 13 months ended October 31, 1920, with the gold resei-^'e 
and the amount issued against securities, is shown by the fol- 
lowing table: 

Notes Against 

Securities 

$146,020,000 

162,957,000 

154,237,000 

$149,289,375 
151,064,375 
157,566,725 
154,262,225 
146,056,725 
138,036,125 
139,749,125 
138,437,125 
149,620,125 
166,715,125 



1919 — Total 

October $311,639,746 

November 328,010,829 

December 318,690,089 

1920 — 

January $303,678,278 

February 305,404,160 

March 311,932,791 

April 309,142,651 

May 300,241,483 

June 292,016,290 

July 293,541,399 

August 292,086,025 

September 303,065,376 

October 320,012,915 



Gold Reserve 

$122,633,554 

123,719,093 

114,821,962 

$105,165,301 
105,609,980 
100,286,280 
101,636,652 
102,495,683 
99,619,182 
95,510,383 
95,183,753 
95,205,901 
95,222,381 



Since the inauguration of the drainage scheme in Mani- 
toba, it is estimated that 3,200,000 acres of land, believed to 
be unsuitable for agriculture, have been brought under culti- 
vation. 



January 7, 1921 



THE MONETARY TIMES 



45 



siiiiiiiiinniuiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiininiiiiiiiiiiiiiiiiiiiiiiiiiiiNiiiin^ 

{ The Royal Bank of Canada 



INCORPORATED 18 69 



CAPITAL AUTHORIZED 
CAPITAL PAID-UP - 



$25,000,000 
$20,000,000 




HEAD OFFICE 



RESERVE FUND 
TOTAL ASSETS 



MONTREAL 



$20,000,000 
$580,000,000 



JA.S. REDMOND 

G. R. CROWE 

D. K. ELLIOTT 

HON. W. H. THORNE 

HUGH PATON 



BOARD OF DIRECTORS 

SIR HERBERT S. HOLT, President E. L PEASE. Vice-President 

A. J. BROWN, K.C. SIR MORTIMER B. DAVIS W. H. McWILLIAMS 

W. J. SHEPPARD G. H. DTTGGAN CAPT. WM. ROBINSON 

C. S. WILCOX C. C. BLACKADAR A. McTAVISH CAMPBELL 

A. E. DYMENT JOHN T. ROSS ROBERT ADAIR 

C. E. NEILL R. MacD. PATERSON T. SHERMAN ROGERS, K.C. 



E. L. PEASE, Managing Director 



C. E. NEILL, General Manager 



M. W. WILSON, Supt. of Branches 



715 BRANCHES IN CANADA, NEWFOUNDLAND, WEST INDIES, &c. 

BRANCHES IN CANADA AND NEWFOUNDLAND 

Alberta - - 47 Ontario - - - 186 

British Columbia - 53 Prince Edward Island 11 

Manitoba - - 41 Quebec - - - 61 

New Brunswick - 26 Saskatchewan - - 107 

Nova Scotia ■ - - 74 Newfoundland - - 10 



BRANCHES IN WEST INDIES 



Cuba— 47 Branches. Havana. Santiago, etc. 
Porto Rico— San Juan, Mayaguez. Ponce. 
Dominican Republic— Santo Domingo, etc. ((i br: 
Guadeloupe— Basseterre and Pointe-a-Pitre. 
Martinique— Fort de France and Trinite. 
Haiti— Port au Prince and Aux Cayes 



Antigua— St. John's. 
Bahamas— Nassau. 

Barbados— Bridgetown and Speightstown 
Dominica— Roseau. 
Grenada— St. Georges. 
Jamaica^Kingston, Cross Road 



Montserrat— Plymouth. 
Nevis— Charlestown. 
St. Kitts— Basseterre. 
St. Lucia — Castries 
Tobago— Scarborough . 
dSpanishTovvn. Trinidad — Port of Spain, San 
Fernando and Sangre Grande. 



BRANCHES IN CENTRAL AND SOUTH AMERICA 



Argentine— Buenos Aires. 
British Honduras — Belize. 
British Guiana^Georgetown.'Ne 



Brazil— Rio de'Janeiro. Santos and Sao Paulo. 
Colombia— Barrang uilla. 
sterdam and Rose Hall. Venezuela— Caracas, Ciudad Boli' 



Uruguay — Montevideo. 
Costa Rica— San Jose, 
iracaibo and Puerto Cabello. 



SPAIN— BARCELONA, Plaza de Cataluna, 6 



GREAT BRITAIN: 

LONDON - - - Princes St., E.C 

T. R. WHITLEY, Manager. JAS. MACKIE, Joint Manager 

FRENCH AUXILIARY: 
THE ROYAL BANK OF CANADA (FRANCE), PARIS— 28 Rue du Quatre-Septembre 



UNITED STATES: 

NEW YORK ... 68 William St. 

F. T. WALKER, J. A. BEATSON, 
E. B. McINERNEY and G. M. TODD, Agents 



PRINCIPAL CORRESPONDENTS : 



GREAT BRITAIN— Bank of England. 

London County Westminster and Pilrr's Bank, Ltd. 
Bank of Scotland. 

London Joint City and Midland Bank. Ltd. 
UNITED STATES New York-Chase National Bank. 

[^ American Exchange National Bank. 

Chemical National Bank. 
Bank of the Manhattan Co. 
Boston— National Shawmut Bank. 

First National Bank. 
Chicago— Continental & Commercial National Bank. 
Philadelphia— Philadelphia National Bank. 
Minneapolis— First National Bank. 



UNITED STATES San Francisco— First National Bank. 

Buffalo- Manufacturers & Traders National Bank. 
New Orleans— Canal Commercial Trust & Sav. Bk. 



London County Westminster & Parr's Bank. Lt 

Banco Calamarte 

Credito Italiano. 

Banco di Napoli 

Hongkong and Shanghai Banking Corporation. 



INDIA, CHINA 

AND JAPAN 
AUSTRALASIA 



Bank of New South Wale 



^iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniinuiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiNiiiiiiiiiiiHiiiiiiiiiiiiiiiiuiiiiiiiiiuiiiiininuiniiiiiiiiiiiiiiiiiiii^ 



46 



THE MONETARY TIMES 



Volume 66 



RECORD OF INTERNATIONAL EXCHANGE QUOTATIONS, 1914-1920 

(Compiled for The Monetary Times by the Foreign Department, Canadian Bank of Commerce) 



Months and Years 



1914 

July 

August 

September . 

October 

November . . 

December . . 

1915 

January 

February . . . . 

March 

April 

May 

June 

July 

August 

September . 

October 

November 
December. . . 
1916 

January 

February .. . . 

March 

April 

May 

June 

July 

August . . . . . 
September . . 

October 

November . . 
December. . . 
1917 

January 

February . 

March 

April 

May 

June 

July 

August 

September . 
October ... 
November . 
December. . . 

1918 
January . . . . 
February . . 

March 

April 

May 

June 

July 

August 

September . . 
October . . 
Novembr*r . . 
December. . . 

1919 
January . . . . 
February . . . 
March . 
April . 
May 
Jun'e 

July 

August . 
September . 
October . . 
November 



New York 
Funds in Canada 



High 



I's P 

i% D 
Par 

A P 

Vs P 

1 P 

if P 

II P 

16 '^ 

H P 

it P 

U P 

A P 

14 P 

/8 P 

sV P 

A P 



1^ 
1^ 

m 

2H 

2A 
2 ' 



December ,11 



2>i 

2tV 

2|3 

^H 

2f 

3 

Sj 

4 

5X 



IX n 

1'4 D 
% D 
Par 
A P 



Par 

A D 

.\ D 

A P 

? P 

jV P 

A P 

/^ P 

A P 

A P 



X 



Par 

h P 
p 
p 

ih P 

A D 

6 P 

/i P 

A D 

if D 

A D 

A P 



a 

63 

m 

1#T 

1 jj 

lit 

2 



Demand 
Sterling 



High 



492.00 
607 50 
50e.00 
497 50 
490.65 
489.15 

485.05 
484.70 
481.15 
479 80 
479.80 
478.45 
476.75 
476.25 
471.87 
472.37 
471.37 
473.65 

478.00 
476.50 
476 . 94 
476.56 
476.31 
476.94 
475.87 
475.87 
475.75 
475.68 
476.68 
475.68 

475.85 
475.80 
475.56 
476.00 
475.62 
475 . 55 
475.70 
475.56 
475.50 
475 . 38 
475.25 
475.25 

475.33 
475.31 
475.40 
475.52 
475 . 50 
475.43 
475.3.'i 
476.06 
475.50 
475.52 
476.00 
475.70 

475.85 
475..80 
475 . 70 
468.00 
468.75 
463.25 
457.25 
435.75 
426.25 
4-25.25 
416.75 
.399 75 



485.30 
5OH.00 
495.25 
489.40 
486.85 
485.00 

483.95 
+79.15 
478.55 
478 . 90 
478.25 
475.85 
476.00 
455.00 
454.00 
461.62 
463.50 
470.25 

473.63 
475.81 
475.87 
476.31 
475.50 
475.06 
475. «9 
475.75 
475.69 
475.37 
475.56 
475.45 

475.56 
475.33 
475.12 
475.31 
475 . 45 
475.37 
475.37 
475.55 
475.30 
475.19 
475.19 
475.19 

475.12 
475.25 
475.25 
475.37 
475.43 
475.30 
475.18 
475.31 
475.43 
475.43 
475.50 
475.00 

475.70 
475. 7< I 
475.25 
458.50 
462.00 
458 . 62 
430 . 87 
412.00 
412.75 
414.25 
400.50 
367.25 



(France) Francs 



High Low 



505 516% 
No quotations 

506 I 510 
505 515 



510 
511X 

516^ 

5I8-4' 

525 ys 

531;^ 

531% 

543 

553 

564 

576 

579 

582}4 

5S3)4 

583>^ 
586 

587 54: 
592^2 

591 X 

5903^ 

59034- 

589 

583 

583V 

584X 

583>^ 

584 X 
584 J^ 
584^ 
568 
570>i 

572 X 
573 
576X 
577 
571 X 

573 >^ 
572^- 

570 

571^ 

571% 

569>i 

571f^ 

569 X" 

544?^ 

546X' 

54fi^ 

539 

545J^ 

545H 

545,!^ 

546;^ 

.S89 

606X 

628 

649 

727 

782 

836 



515% 
517 

519^ 

528 

532X 

532X' 

543 

570 

570^" 

602 

601 

598X 

599 

588 

588 

590>^ 

598 

607 

594>i 

592X 

591-^ 

592 



585 X 
584X 
586 

584 X 

585 >i 
585 K 
5Si<4 
573^ 
578 
679 X 
578 >i 
580 
579;^ 
576X' 
574 "4 

573 X 

572;^ 

573 

572% 

57114 

571 X 

571^8 

56i'>^ 

549X 

548 ,\ 

547>^ 

545|i 

.546% 
547 ^^ 
P06 
610 
671 
650X 
735 
826 
924 
880 
980 
1178 



(Holland) Guilders 



High 



40X' I 40,-\ 
No quotations 
No quotations 
No quotations 
40% 40>^ 

40% 40X 



40A 
40A 
40 
39% 
39A 
40 
40% 
40t^! 
40% 
41% 
42 
43X 

44% 

42% 

42ii 

43% 

41il 

41X 

41X 

41% 

41A 

41A 

41 

40% 

40ii 
40i? 
40A 
41H 
41 X 
41X 
41A 
42X 
42% 
45X 
45% 
44X 

43X 

45X 

46X 

47% 

50% 

51 

51% 

52>^ 

50X 

47 

42% 

42% 

41% 

41% 

40% 

40A 

39 Vi 

38tti 

37t% 

38^ 

38% 

38 

38% 



40 

39% 

39X 

39A 

39% 

39A 

39% 

39% 

39% 

40% 

41% 

41% 

42% 
41ii 

42 

40% 

41A 

41% 
41% 
40X 
40]f 
40U 
40H 

40i| 

40A 

40X 

40A 

40it 

40iS 

41% 

41X 

41% 

42 

43% 

43% 

42 X 
43% 
44% 
46 

47X 

49X 

50 

50X 

46X 

41X 

41% 

42 

40% 

40ii 

39% 

40 

.39 

38% 

36% 

36X 

36% 

37% 

37X 

37% 



(Italy) Lire 



(Norway) Kroner 



High 



516% 518> 
No quotations 
No quotations 
No quotations 
533 1 540 
524 536 



533% 

542% 

563 

576% 

575 

591 

609 

620 

615 

622 

643 

651% 

653 

667% 

652 

631 

647 

635 

637X 

642 

641^" 

646 

664 

673 

687 

709 

762 

687 

701 

703% 

719% 

723 

751 

772 

795 

842 

831 
857 
795 
876 



801 
636 
631 
637 
637 
636 

636% 

636% 

636% 

705 

748 

780 

785 

860 

947 

968 
1077 
1214 



544 
580 
595 
589 
592 
616 
640 
652 
652 
646 
651 
660 

678 

676 

671% 

662% 

621 

641% 

649% 

648% 

648 

666 

674% 

691% 

720 

756 

785 

768 

706 

736 

726% 

749% 

779% 

795 

895 

791 

858 

877 

892 

901 

9lS% 

911 

881 

801 

637 

637 

637 

637 

637 
637 

785 

758 

875 

817 

879 

968 
1014 
1082 
1270 
1347 



High 



26.75 I 26.72 
No quotations 
No quotations 
No quotations 



26.00 


25.00 


25% 


25.00 


25% 


243X 


25.00 


24% 


25.30 


24% 


25.90 


25.05 


26.30 


25.75 


26.55 


26.20 


26 35 


25.60 


26.25 


25.40 


26.25 


25.25 


26.30 


25.65 


29.00 


26.10 


29.00 


27.00 


28.10 


27.35 


28.30 


27.55 


28.95 


28.10 


30.35 


29.00 


31.25 


29.60 


31.00 


28.00 


29.20 


28.05 


28.80 


28.40 


28.75 


28.10 


28.35 


27.65 


27.75 


27.66 


28.15 


27.70 


28.10 


27.90 


28.00 


27.90 


29.30 


28.05 


29.70 


28.30 


29.40 


29.10 


29.50 


29.00 


30.75 


29.25 


31.00 


30.00 


31.30 


30.30 


35.50 


31.13 


37.50 


33.00 


33.50 


31.60 


32.75 


31.00 


32.00 


30.25 


31.50 


29.87 


32.12 


31.25 


31.55 


30.75 


31.60 


31.20 


31.40 


31.20 


31.45 


30.90 


31.00 


31.40 


29.80 


27.20 


27.40 


26.80 


28.00 


27.40 


28.00 


27.00 


27.35 


27.00 


27.20 


25% 


26.05 


25.60 


25.60 


24.70 


25.60 


24.65 


24.75 


23.40 


.23.70 


22 90 


23.50 


22.65 


23.25 


22.55 


23.55 


21.40 


21.55 


17.65 



January 7, 1921 



THE MONETARY TIMES 



47 




THE CANADIAN BANK OF COMMERCE 

Statement of the result of the business of the Bank for the 
year ending 30th November,, 1920 

Balance at credit of Profit and Loss Account brought forward from last year $ 1,427,735 40 

Net Profits for the year ending 30th November, after providing for all bad and doubtful debts 3,306,243 97 

$ 4,733,979 37 

This has been appropriated as follows: 

Dividends Nos. 132, 133, 134 and 136, at twelve per cent, per annum $ 1,800,000 00 

Bonus of one per cent., payable 1st December 160,000 00 

Dominion and Provincial Government taxes and tax on bank-note circulation 360,000 00 

Written off Bank Premises 600,000 00 

Transferred to Pension Fund 160,000 00 

Balance carried forward 1,783, 9f9 37 



$ 4,733.979 37 



GENERAL STATEMENT, 30th November, 1920 

To the Public- LIABIUITIES 

Notes of the Bank in circulation ! 

Deposits not bearing interest $108,813,028 52 

Deposits bearing interest, including interest accrued to date 286,066,493 06 



Balances due to other Banks in Canada 

Balances due to Banks and Banking Correspondents 

Bills Payable 

Acceptances under Letters of Credit 



To the Shareholders — 

Dividends Unpaid 

Dividend No. 135 and bonus, payable 1st December. 

Capital Paid up 

Rest Account 

Balance of Profits as per Profit and Loss Account . . 



393,878,521 57 

792,301 63 

10,640,517 £3 

1,139,863 90 

11,204,565 81 

$448,372,665 02 



$15,000,000 00 
15,000,000 00 
1,783,979 37 



ASSETS 

Gold and Silver Coin Current on hand $15,992,107 21 

Gold deposited in Central Gold Reserves 6,500,000 00 



31,783,979 37 
$480,760,624 51 



Dominion Notes on hand $35,388,710 26 

Dominion Notes deposited in Central Gold Reserves 10,000.000 00 



$ 22,492,107 21 



45,388,710 25 



Notes of other Banks $ 2,482,865 00 

Cheques on other Banks 25,846,697 22 

Balances due by other Banks in Canada ."■ 100 00 

Balances due by Banks and Banking Correspondents elsewhere than in Canada 11,290,555 29 

Dominion and Provincial Government Securities, not exceeding market value 

British, Foreign and Colonial Public Securities and Canadian Municipal Securities, not exceeding market value 

Railway and other Bonds. Debentures and Stocks, not exceeding market value 

Call and Short Loans (not exceeding 30 days) in Canada on Bonds, Debentures and Stocks 

Call and Short Loans (not exceeding 30 days) elsewhere than in Canada 

Deposit with the Minister of Finance for the purposes of the Circulation Fund 



$ 67,880,817 46 



Other Current Loans and Discounts in Canada He; 
Other Current Loans and Discounts elsewhere than 
Liabilities of Customers under Letters of Credit, a 

Overdue Debts (estimated loss provided for) 

Real Estate other than Bank Premises 

Mortgages on Real Estate sold by the Bank 

Bank Premises at cost, less amounts written oflE 

Other Assets not included in the foregoing 



rebate of interest) 

1 Canada (less rebate of interest) 
per contra 



39,620,217 51 

13,101,656 80 

20,737,620 72 

6,059,204 45 

21.434,844 02 

34.274.934 06 

908,245 56 

$204,017,440 58 

231,114,772 74 

26,863.226 72 

11.204,565 81 

147,916 91 

514.901 60 

190,501 63 

6,617.095 06 

90,213 66 

$480,760,624 51 



B. E. WALKER, President. 

Report of 



JOHN AIRD. General Manager. 
Shareholders of The Canadian Bank of Commerce. 

of the Bank Act. 1913. we report as follows:— 
and vouchers at Head Office and with the certified 
that we have required, and are of the opinion 
powers * " ~ 



Auditors to 

In accordance with the provisions of sub-sections 19 and 20 of section 56 

We have audited the above Balance Sheet and compared it with the books 
returns from the branches. We have obtained all the information and explanatic 
that the transactions of the Bank which have come under our notice have been 

We have checked the cash, and verified the securities representing the investments of the Bank, at its chief office and principal 
branches at a date other than that of the verification at the chief ofiice on the 30th November, 1920, and found that they were 
in agreement with the entries in the books of the Bank relating thereto. 

In our opinion the Balance Sheet is properly drawn up so as to exhibit a true and correct view of the state of the affairs of 
the Bank according to the best of our information and the explanations given to us, and as shown by the books of the Bank. 

T. HARRY WEBB, C.A., \ 

of George A. Touchc & Co. I A„j:,r.r= 

JAMES MARWICK, C.A., f -*"°™'^=- 

of Marwick, Mitchell & Co. ' 



48 



THE MONETARY TIMES 



Volume 66 



RECORD OF INTERNATIONAL EXCHANGE QVOTATIONS—Conimued 



Months and Year 



1920 

January 

Kebruarv 

Man-h 
April.. 
May. 
June 

July 

August 

September 

October 

November 

Dec. (to Dec. 2i). 



New York 
Funds in Canada 



High 



13 

ITA 
ibH 
i\'4 

12H 
ISA 
I4H 
1*A 

n% 

11^8 

14tV 



12A 

9 

9>^ 
12A 

12t\ 

9X V 

8X P 

W% P 

13^8 P 



Demand 
Sterling 



High 



379.00 
348.00 
395.25 
402.25 
390.75 
399.25 
395.75 
372.00 
356.50 
350.75 
348.75 
353 . 50 



349.25 
324.00 
341.00 
376.00 
380.75 
388 . 50 
374.25 
354.87 
344.75 
340.50 
334.00 
343.00 



(France) Francs I (Holland) Guilders 1 



High 



10.77 
13.20 
13.10 
14.50 
12.20 
11.62 
11.60 
13.07 
14.25 
14.87 
15.80 
16.34 



13.35 
14.85 
14 98 
17.00 
16.67 
13.22 
13.25 
14.50 
15.47 
15.80 
17.30 
17.23 



High 



39K 
38X 
37X 
37^ 
36^ 
Z&H 
Zby^ 
34X 
32H 
3liV 
30^ 
ZIH 



37^8 
36^ 
36 >i 
36 )i 
36 X 
35X 
^i% 
31>^ 
30 f^ 
30^ 
29;^ 
30>g 



(Italy) Lire 



High 



13.21 
15.67 
17.22 
20.45 
16.37 
15.82 
16.17 
18.60 
21.32 
23.94 
25.70 
26.90 



15.52 
19.32 
20.52 
26.12 
22.22 
18.37 
18.77 
21.92 
24.05 
26.74 
29.50 
28.78 



(Norway) Kroner 



High 



20.30 
17 60 
19.40 
22 00 
19.25 
18.20 
17.00 
15.70 
14.53 
14.40 
13.60 
15.00 



17.55 
16.80 
17.00 
19.15 
18.00 
16.50 
15.70 
14.10 
13.25 
13.40 
13.05 
13.50 



NET PROFITS AND DIVIDENDS OF CANADA'S BANKS 



(l)Bank of Montreal 1,797,993 

§Quebec Bank 1 278,926 

Bank of Nova Scotia ! 662,302 

(2) Bank of British North America I 554,942 

Bank of Toronto I 589,656 

The Molsons Bank i 602,694 

La Banque Nalionale 257,917 

(3) Merchants Bank ol Canada , 1,057,140 

Banque Provinciate du Canada 149,062 

Union Bank of Canada 451,620 

Canadian Bank of Commerce 1,838,065 

(4)Royal Bank o( Canada 951,336 

Uominion Bank 659,300 

(5)Bank of Hamilton 422,090 

••"•-" ■ • 373,208 

417,697 

532,353 

702,508 

95,832 

! 258,144 

I 96,825 



Standard Bank of Canada 

Banque d'Hochelaga 

(6) Bank of Ottawa 

Imperial Bank of Canada. 

Home Bank of Canada. . 
(7)Northern Crown Bank... 

Sterling Bank 

(8)\Veyburn Security Bank.. 



(l)Bank of Montreal 

§Quebec Bank 

Bank of Nova Scotia 

(2)Bank of British North America. 

Bank of Toronto 

The Molsons Bank 

La Banque Nationale 

(3)Merchants Bank of Canada . . . . 

Banque Provinciale du Canada. 

Union Bank of Canada 

Canadian Bank of Commerce . . 
4) Royal Bank of Canada ... 

Dominion Bank 

(5)Bank of Hamilton 

Standard Bank of Canada 

Banque d'Hochelaga 

(6)Bank of Ottawa 

Imperial Bank of Canada. . 

Home Bank of Canada. . . 
(7)Northern Crown Bank 

Sterling Bank 

(SlWeyburn Security Bank 



2,108,631 
233,420 

1,220,057 
328,595 
663,074 
556.193 
333,207 
995,431 
196,355 
659,688 

2,352,035 

1,905,576 
805,123 
424,274 
563.401 
530,237 
531,268 

1,031,359 
133,406 
100,789 
145,290 
53.844 



% 
10 

7 
12 

7 
10 
10 

8&9 

5 

7 

9 
11&12 
12 
10 
12 

8 

lOJ 
11 

6 

5 

5 



Di\ 



% 

10 + 2 

7 

14 

11 
11 

8 
10 

7 

8 + 1 
10 + 2 
12 
12 
12 
13 

9 
12 
12 

5 
Nil 

6 
JIO 



$ 

2,276,519 
276,392 
815,519 
632,117 
677,964 
712,539 
202,613 

1,179,581 
184,398 
662,437 

2,305,409 

1,152,249 
704,045 
443,506 
381,601 
415,000 
595,228 
841,692 
121,941 
285,694 
107,876 
26,682 



2,200,471 



1,252,038 
546,346 
730,954 
582,356 
417,662 
950,713 
203,983 
651,183 

2,439,415 

2,111,307 
893,502 
442,525 
580,230 
546,011 
591,205 

1,003,960 

217,059 

128,761 

161,270 

82,149 



% 
10 

13&14 

8 
11 
11 

7 
9 & 10 

5 

8 
10 
12 
12 
11 
13 

9 

11 

11&12 

6 
5&6 

5 

2i 



2,518,409 
294,804 
970,544 
678,506 
835,787 
684,779 
293,564 

1,338,844 
185,165 
706,832 

2,811,806 

1,527,324 
901,529 
495,860 
462,079 
481,616 
640,220 

1,004,340 

140,030 

291,094 

113,400 

63,135 



% 

10+2 

7 

14 
8 

11 + 1 
11 

7 
10 

6 

8 

10 + 1 

12 

12 + 2 
11 
13 

9 

111 

12 

6&7 

6 

6 

5 



S 

2,648,403 
309,228 

1,210,774 
689,745 
* 1,050,693 
694,356 
302,304 
(A) 533,653 
19c,126 
750,095 

2,992,951 

2,142,100 
950,402 
498,273 
555,095 
534,700 
706,740 

1,125,971 

167,1-25 

281,167 

114,200 

54,917 



Divi- 
dend 



% 

10 + 2 



2,477,969 



14 

7 
11 
11 

8 
10 

7 
8+1 
10 + 2 
12 
12 
12 
13 

9 
12 
12 

5 



1,295, 

"668, 

802, 

615, 

435, 

1,236, 

207, 

763 

2,63 

2,327 

1,005, 

598 

649, 

565 

616 

1,185, 

228 

t208, 

186 

74, 



315 

003 
920 
514 
283 
680 
483 
,463 
,555 
979 
062 
,522 
546 
,433 
238 
,066 
,963 
608 
120 
274 



Divi- 
dend 

% 

10+2 



14 

8 
11 
11 

9 
10 

7 
8 + 1 
10+2 
12 
12 
12 
13 

9 
12 
12 



2,562,720 



1,411,925 



844,402 

712,485 

533,450 

1,383,569 

434,594 

824,174 

2,850,318 

2,809,846 

1,086,498 

571,226 

697,443 

595,187 

645,347 

1,247,516 

238,753 



% 

10 + 2 

7 

14 
8 

11 + 1 
11 

8 
10 

6 

8 

10 + 2 

12 

12 + 2 
12 
13 

9 
12 
12 

7 

6 



% 
10+2 



14 



11 
11 

9 
10 

7 

10 
10 + 2 
12 
12 
12 
13 

9 
12 
12 

5 



213,632 
. 74,343 



2,496,452 
296,659 

1,196,117 

536,577 

829,538 

608,196 

, 319,903 

1,218,694 
1^4,214 
712,440 

2,668,233 

1,886,142 
925,364 
485,265 
621,463 
566,614 
620,691 

1,236,984 

163,929 

201,289 

115,111 

48,. 354 



3,314,227 



1,926,478 



1,011,359 

818,802 

567,372 

1,686,156 

b) 333,882 

932,256 

3,074,892 

3,423,264 

1,169,703 

847,104 

776,310 

611,105 



1,379,318 
268,895 



251,346 
62,220 



16 



12 

12 

10 
12+1 

8 
, 10 

12 
12+2 
12+1 

12 

13 

10 



12+1 
6 



(1) Prior to 1904 the Bank of Montreal's year ended in April. The profits during 
1911 include ?708.800 expended in premises and those of 1912. $.511,000; in 
penditures were deducted. 2% bonus since June, 



previous years 
1912. 

(2) Figures for 1912 

(3) 1913 figures 



these 



ire from Jan. l.st to Nov. 30th inclusive. 
.„,„ ..i.„.^o ».- for 5 months ending 30th April. 1915 figures are for year 
April. 1915 Net profits for year ending April. 1916. $970,713. Dividend, 10%. 

(41 1912 figures are for 11 months ; financial year changed. 

{f,") The 1917 figures are for the 15 months ended 28th February. 1918. 

(6) The Bank of Ottawa was absorbed by the Bank of Nova Scotia in May, 1919. 

17) 1912. profits are for 11 months. 

(8) Weyburn Security Bank commenced business only in 1911. 



X 5% cash dividend and 5% stock dividend. 

* Including 8200.000 debts recovered. 

§ The Quebec Bank was purchased by the Royal Bank of Canada on Dec.Slst. 1916. 
and did not issue a statement showing the result of its business for that year. 
Dividends amounting to 8191.450, being at the rate of 7% per annum, were 
paid during the year. 

1a) Result of business for 5 months only. 

(ii) Figures for the previous period were for 18 months. There was a proportion- 
ate increase of 844.512 on a twelve months' basis. 

♦* Absorbed by the Bank of Montreal, March, 1918. 

t Purchased by the Koyal Bank. June 30th, 1918. who paid 10.883 fully paid 
shares of the capital stock of the Royal Bank, and $576,970 in cash. 



January T, 1921 THE MONETARY TIMES 



lllllllilHIIIillllllillllllllililllilllMllllllllillllllillllllllllllllllllllMlllililllllllllllllllllilllllllllH^ 



ESTABLISHED 



giliiiiiiiniiiiiiiiiililiiililiiiiiiiillllllllllliuitlllliiiiiliiiilliiii^ 
\ 

^lllilllllllllilllllll lllllillllillllllllllllllllllllllllllltllllIrT:- 




Coinnionwealtb Bank of Hustralia 

acts as bankers to the Commonwealth Government and State Governments of South 
Australia, Western Australia and Tasmania. 

All classes of GENERAL and SAVINGS BANK business are transacted in all the prin- 
cipal cities and towns of Australia, Rabaul and London. 

Banking and exchange business of every description transacted within the Common- 
wealth, United Kingdom, Canada, U.S.A. and abroad. 

JAS. KELL, DENISON MILLER, 

Deputy Governor 1920 Governor 



iliiiiiiiiilliiiiliiiiiiiiiiliyililiiiiiiiiiiiiiiiiiiiiiiiiiiiiliiiiiiiiiiiiiliiiiiiliiiillllliliiiiiiiliiiiiiiiiiiiiilil^^ 



iiiiiiiiiiiiiuiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiliiiu^ 



This Advertisement | 

will be read frequently throughout the year 1921 by thousands of i 

Canada's wealthiest and best-known financiers, manufacturers and 1 

merchants. ■ 

Your message, if inserted in this space, would have been read not 1 

only once but many times during the year by individuals whose 1 

purchasing power would put Croesus, if he were alive to-day, in | 

the " fair to middling" class. 1 

If you are particular as to the character and reputation of your 1 

representatives, you will want to reserve space for advertising 1 

purposes in the next issue of 1 

The Monetary Times Annual | 

Known Everywhere Welcome Always I 

liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiM 



50 



THE MONETARY TIMES 



Volume 66 



Canadian Gold Stocks Decreased During Past Year 

Government Held $100,000,000 On October 31, While Banks Held $80,000,000 in Gold 
and Subsidiary Coin — Record of Holdings During Past Months — World's Declared 
Holdings Reached Maximum at End of 1918 — Movement Towards East in Recent Years 



PRACTICALLY all the gold in Canada is held by the Do- 
minion government and by the chartered banks. The 
totals shown in the monthly statements of the banks to the 
government, and in the latter's own monthly statements of 
circulation and gold reserve, have decreased during the past 
year. These totals are shown below. In the case of the 
banks, subsidiary coin is included. 

Gold Reserves of Dominion Government 

Gold held for 

redemption of Reserve for 

1919 — Dominion notes. savings department. Total. 

October $122,633,564 $4,667,887 $127,301,441 

November 123,719,093 4,493,216 128,212,310 

December 114,821,963 4,389,872 119,211.834 

1920— 

January 105,165,301 4.229,339 109.394.640 

February 105,609,980 4.169,071 109,969,061 

March 100.286,280 4,113,174 104,399,454 

.:ipril 101,636,652 4.033,044 106,669,606 

May 102,496,683 4,107,517 106,603,200 

June 99,619,182 4,080,992 103,700,174 

July 95,510,383 4,079,589 99,589.972 

August 95,183,753 4,044.990 99,229,743 

September 95,205,901 4,022,842 99,228,743 

October 95.222.381 4.006.798 99.229,179 

At the end of January, 1916, gold held for the redemp- 
tion of Dominion notes amounted to $115,147,985. In January 
of 1917, the figure was $114,105,144. while in October of 
that same year it had arisen to $114,616,227. In connection 
with the above figures it might be also interesting to note 
that the decrease in gold held for the redemption of notes 
has not been in accorda^nce with the circulation of such notes. 
For instance, in January of 1920, circulation totalled $303,- 
678,278, against which was held $105,165,301 in gold. In 
September of this year the circulation was $303,065,376, 
while only $95,205,901 was held against this in gold. The 
reduction in gold reserve against savings deposits was justi- 
fied, as deposits in the Post Office Savings Banks and the Do- 
mininon Government . Savings Banks have decreased. 

Banks' Holdings 

Turning to the banks' holdings of gold it will be noticed 
that during the past two years there has not been very much 
change. Holdings in Canada have tended to become lower, 
while holdings of the banks abroad have increased slightly. 
The monthly average, however, has followed a fairly even 
course. 

Gold and sub. Gold and sub. Monthly 

1919 — coin in Canada, coin elsewhere. Total. average. 

January $61,564,369 $18,999,305 $80,563,677 $86,168,445 

February 61.407,637 18,771,077 80,178.618 85,725,951 

March 61,568,476 18,685,091 80,253.572 86,098.447 

April . . .■ 61.521,905 18,935,264 80,457,174 84,953,140 

May 61,328,957 18,675,213 80,004,173 84.809.908 

June 60,543.234 18,736,201 79.279,438 85,656,671 

July 61.045,702 19.157.828 80.203,535 86,236.599 

August 61,025.508 19.799.188 80.824,700 86,079,703 

September 61.656,194 19,888,844 81.560,043 87,170,499 

October 61,496,667 19,6.56,819 81,063,489 86.492,301 

November 63,168.170 20,684,480 83.572.653 86.617,911 

December 62.553,188 17,634,912 80.088,103 84,213,438 

1920— 

January 63,248,178 17,647,320 80,895,602 86,641,270 

February 63,302,649 17,677,669 80.980.212 87.668.936 

March 63,667,531 16,323.290 79.990,826 87.396,939 

April 66,864.526 16,483.966 83,348,497 88.865.086 

May 63,830.589 16.368,010 80.198,600 86,487,324 

June 63.682,026 17.282,255 80.964,285 86,460,864 

July 62,580.287 18,480,221 81.060.510 87.471.926 

August 61,499,066 18.455,770 79,954.831 86.332,046 

September 61,764.041 19.273.632 81,037,676 86,944,667 

October 61.680,300 18,143,172 79.823,476 86.211.873 

The World's Stocks 

The past two years have witnessed important movements 
in international gold supply, while the grand total has de- 
creased since the end of 1918. Japan and India show in- 



creases, indicating an extensive movement to the Orient. The 
world position in this respect is fully discussed by a writer 
in the London Times of August 14, 1920, whose figures show 
the gold holdings of the world's state banks and treasuries 
at the end of 1913, 1914, 1915, 1918 and 1919 and also at the 
end of June last, and therefore gives a measure of the move- 
ment of gold money during the war. As it is desired to 
arrive at a grand total, it is necessary to include, at any rate, 
one doubtful item — that of the Imperial Bank of Russia, for 
which no figure later than that of October, 1917 (£129,500,- 
000), is available, and the totals shown since that date are 
approximations much open to question. The last two figures 
of £65,000,000 are based on the statement that the gold re- 
serve transferred to Omsk amounted on August 1, 1919, ta 
651,532,118 roubles. If the figures set down for Russia are 
too high, they affect the calculations in this statement accord- 
ingly. 

All Countries Not Included 

The table is not exhaustive, since Greece, Rumania, 
Portugal, Turkey, Finland, Bulgaria, Egypt, Brazil, Uruguay, 
Peru, the Straits Settlements, and the banks of issue of 
Scotland, Ireland, Victoria, and New Zealand are not in- 
cluded; but if all these were added, they would probably ac- 
count for £70,000,000 at the end of 1913, rising to £85,000,000 
at the end of 1915, and thereafter probably falling somewhat 
if the actual gold holdings of the state banks of Greece and 
Rumania (for which figures are not available to the writer) 
have not increased. The addition of these further banks, 
however, would not materially affect the total of the table: — 



End of 
France (1) 
Enprland (2) . . 

Spain 

Russia (3) 
Reichsbank (7) 
Netherlands 
Italy 



(In n 
Dec, 
1913. 
140.3 
35.0 
19.2 
161.6 



Sweden 

Nat. of Denmark . . . . 

Nat of Belgium 

Austro-Hungary Bank . 
Norway 



Total, Europe 



Dec, 
1914.' 
166.3 
88.0 
22.9 
155.4 
103.9 
18.1 
44.7 
9.5 
6.0 



of pounds) 
Dec. 
1915. 
200.G 
80.0 
34.7 
161.2 
122.3 
35.8 
43.1 
lO.O 
6.9 
6.2 



Dec, 
1918. 
219.1 
108.5 
89.1 



67.5 
32.7 
16.6 
15.9 
10.8 
10.7 
(11.9) 
6.7 



Dec, 
1919. 
223.1 
119.8 
97.8 
(65.0) 
64.6 
53.1 
32.2 
20.7 
15.6 
12.6 
10.7 



June. 

1920. 

223.5 

146.4 
98.1 

(65.0) 
54.6 
53.0 

(32.2) 
21.3 
14.6 
12.7 
10.7 
11.0 
8.1 



U.S. Treasury 
Argentina (4) 



772.( 
526.( 



Canada. Treasury 
Canada Chart. Banks (6) 
Australia Com. Bank.. 



43.9 
23.7 



33.3 
19.5 



24.8 
12.9 
15.0 



(21.0) 
(16.6) 
(23.9> 



Grand Total 

Notes to above. 

(1) Including gold 

abroad 

(2) Including gold 

against currency 
notes 

(3) Excl. gold abroad 

(4) Ditto 

(5) Including gold 

abroad 

(6) Including gold 

outside Can. 
17) £10.260,000 in Span- 
dau Tower at De- 
cember 31, 1913. 



36.0 
944.8 



37.0 
1034.0 



52.7 
1227.7 



18.5 
21.4 



28.6 
27.0 
13.5 



28.6 
16.6 



January 7, 1921 



THE MONETARY TIMES 




Every Modern 
Banking Facility 



BOARD OF DIRECTORS 

Sir William Price. Quebec. Honorary Presi 

John Gait, Winnipeg. President 

G. H. Thomson. Quebec. Vice-President 

Stephen Haas. Toronto. Vice-President 

W. R. Allan. Winnipeg. Vice-President 

Major Hume Blake, Toronto 

G. H. Balfour. Winnipeg 

M. Bull. Winnipeg 

Sir John W. Carson. C.B.. Montreal 

B. B. Cronyn. Toronto 

E. L. Drewry, Winnipeg 

S. E. Elkin. M.P.. St. John. N.B. 
A, Hitchcock, Moose Jaw. Sask. 
J. S. Hough. K.C.. Winnipeg 

F. E. Kenaston, Minneapolis. Minn. 
R. O. McCulloch. Gait. Ont. 

W. H. Malkin. Vancouver, B.C. 
Wm. Shaw. Quebec 

G. M. Black. Winnipeg 
D. N. Finnic. Winnipeg 



OFFICERS 

H. B, SHAW. Winnipeg. Gene 
J. W. HAMILTON. Winnipeg, 

Asst. Gel 
F. W. S. CRISPO, Winnipeg, 

Asst. Gel 



al Manager 
eral Manager 
eral Manager 
era! Manager 
eral Manager 



FROM Halifax and Charlottetown, settled and historic, 
on the Atlantic, to Prince Rupert, and Vancouver, new 
and growing, on the Pacific, are more than 400 branches 
of the Union Bank of Canada. In frontier towns, in 
peaceful farming districts and in bustling cities, they 
stand at strategic points in the pathways of Canadian 
trade and commerce, linking East with West, North with 
South. 

Our nation-wide Banking Service is always at the 
disposal of producers, business men and individuals. 

Abroad, we have our own New York Agency (49 Wall 
St.) and two branches in London, Eng., (6 Princes' St. 
E.C., and 26 Haymarket, S.W.) In addition, branches of 
the Park-Union Foreign Banking Corporation, which is 
jointly owned and controlled by the National Park Bank 
of N.Y., and the Union Bank of Canada, offer direct 
banking connections in the Orient ; at San Francisco and 
Seattle, in the U.S. ; and in Paris, France. 

UNION BANK OF CANADA 

Capital and Reserve $14,149,296.47 

Assets (Nov. 30, 1920) $169,205,445.39 




THE MONETARY TIMES 



During the years 1916 and 1917, the chief movements 
were as follows: — 1916. — Increases. — France, 203.0; England, 
83.5; Reichsbank, 126.0; Netherlands, 49.0; U.S. Treasury, 
453.0; Argentina, 51.5; Japan, 41.0. Decreases. — Russia, 
147.3; Italy, 36.0; Austria-Hungary, 12.1. 1917.— In- 
creases. — France, 214.2; England, 87.7; Spain, 78.7; Nether- 
lands, 58.1; Sweden, 13.6; U.S. Treasury, 492.0; Japan, 65.6. 
Decreases.— Russia, 129.5; Italy, 33.4; Reichsbank, 120.3; 
Austria-Hungary, 11.9. The totals for the two years re- 
spectively were: — Europe, 757.0 and 768.2; America, 504.5 
and 543.8; Asia, 56.9 and 84.1; and Colonies, 54.7 and 58.0 
The grand totals were 1,373.1 and 1,474.1. 

It will be seen that the annual increase in the gold hold- 
ings of these state banks and treasuries was greatest in 1915, 
and that in 1919 there was a material loss, particularly in 
the case of Germany, the United States, and Russia, though 
Japan showed a marked increase. 

Stock of Gold Money 

During the period covered the aggregate stock of gold 
money has been materially added to, as shown by the follow- 
ing table, which shows how the stock has been built up to 
the extent of £356,000,000 since the end of 1913:— 

(In millions of pounds. Gold at 85s. per fine oz.) 

Industrial India's 

consump- absorp- 
tion tion. Balance Aggregate 
World's (Europe (year to Egypt's available stock of 
output and March 31 absorp- as gold money 
of gold. America), following). tion. money. (Dec. 31). 

1912 96.9 25.6 25.2 4.2 40.9 1,546 

1913 94.7 27.3 18.0 —1.4 50.8 1,596 

1914 90.4 (21) 7.6 — B.O 66.8 1,663 

1915 96.4 (17) 1.7 —0.8 78.5 1,742 

1916 93.6 (18) 11.1 — 64.4 1,806 

1917 86.3 (16) 19.0 — 51.3 1.857 

1918 78.2 (16) —1.6 — 63.8 1,921 

1919 72.0 (22) 19.4 — 30.6 1.952 

The totals in the last column give the stock of gold 
money as arrived at by the writer's method, which is suffi- 
ciently indicated in the table. Other estimates differ con- 
siderably, the estimate of the United States Treasury, quoted 
in The Economist Commercial History Supplement of Febru- 
ary 16, 1918, being £2,095,000,000 at the end of 1913. 

Falling off in Gold Production 

The foregoing table shows the striking falling off in the 
gold production since 1915, and the still greater drop in the 
amount of that production which is available as money. For 
1919 the latter was about £31,000,000, as compared with about 
£45,000,000 per annum in the few years before the war — ^the 
war years for special reasons added abnormally to the stock 
of money. As the gold output for 1920, and possibly for suc- 
ceeding years, will show a further decline, anything like a 
normal demand by industry and India would leave as avail- 
able for money each year an amount which under pre-war 
conditions would have been inadequate for the growing trade 
and commerce of the world. Indeed, the total stock of gold 
money, which rose strongly from 127d. per head of the world's 
population in 1893 to 259d. in 1918 and 261d. in 1919, seems, 
for the near future at least, to have reached a point at which 
it will do little more than merely keep pace with the grow- 
ing population. It should be pointed out that the last table 
takes no account of immeasurable items such as the recent 
absorption of gold by China and the illicit import into India, 
both of which (affecting 1919 in particular) should, if known, 
be deducted from the aggregate figures given, which exclude 
Asia. 

War Movements of Gold 

Having thus arrived at figures both for the aggregate 
stock of gold money and for the portion of that amount which 
is to be found in state banks and treasuries, it is possible, 
by comparing them, to get some idea of the migration of gold 
money during the war — a picture which, as regards this 
movement, will be approximately coi-rect, even if the aggre- 
gate stock of gold money is materially different from that 
set down: — 



(In millions of pounds) 

Private banks, 
hoarded, and in 
State banks and circulation (differ- Stock of gold 
treasuries. ence figures). money. 
Year's in- Year's in- 
crease or crease or Year's 
Dec. 31. Total, decrease. Total. , decrease. Total. increase. 

1913 945 — 651 — 1,596 — 

1914 1,034 89 629 —22 1,663 67 

1915 1,228 194 514 —115 1,742 79 

1916 1.373 145 433 —81 1,806 64 

1917 1,474 101 383 —60 1,857 51 

1918 1,500 26 421 38 1.921 64 

1919 1,438 —62 514 93 1,952 31. 

493 —137 356 

Here one sees gold flowing from the pockets of the 
public into the state banks and treasuries, the stream reach- 
ing its height in 1915 and diminishing yearly since, as one 
would expect. 

Increased State Holdings 

The state banks and treasuries have not only absorbed 
the whole of the new gold production available, but have 
taken £230,000,000 in addition in the five years to 1918, dur- 
ing which period they increased their stock by 59 per cent. 
If the £421,000,000 shown at the end of 1918 as being in 
private banks, hoarded, and in circulation is at all near the 
mark, it has, of course; become largely immobilized, and is 
now mostly held by banks or has been hoarded. 

In view of the figures in connection with net imports 
into this country, referred to later, and the recent unknovsm 
absorption of China and India, already mentioned, the 1919 
figures in this table are subject to much correction, and 
there was in reality no such drop as £62,000,000 in the hQld- 
ings of state banks and treasuries, though the totals at the 
end of last June given in the first table fairly represent the 
real position. 

On a percentage basis, if we leave out Australia, the 
most gold has flowed into Japan, which profited much from 
the war; but absolutely the United States has taken most. 
State banks and treasuries increased their stock to the end 
of 1918 by £555,000,000, of which no less than £259,000,000 
went to the United States, whose record is as follows:— 

(In millions of pounds) 

In banks Propor- 

and in tion of Net 

In circula- Total world's Year's imports 

Dec. 31 — treasury, tion. stock. stock. increase, or exports. 

1913 266 126 392 24.6% — — 

1914 243 128 371 22.3% —21 — S4 

1915 347 126 473 27.1% 102 + 87 

1916 453 137 590 32.7% 117 -fl09 

1917 492 139 631 34.0% 41 + 87 

1918 525 126 651 33.9% 20 -f 4 

1919 467 107 574 29.5% —77 — 60 

182 -f-143 

June 30— 

1920 445 108 653 28.2% — 

Eastern Absorption of Gold 

Since the end of 1918 that country has lost about £100,- 
000,000. Where has it gone to? Mainly to Asia. £25,- 
000,000 has gone to Japan, and the balance, or most of it, to 
China and India. At the Royal Statistical Society's meet- 
ing on June 15 Sir Charles Addis said that £60,000,000 had 
been imported by China recently, and doubtless part of that 
has in turn gone via Tibet and the Burmese border into India, 
which has also smuggled considerable amounts from other 
places, including South Africa, where several millions have 
vanished from circulation. The illicit imports into India, 
where gold has sold at large premiums in the bazaars, are 
reckoned by the Times of India (June, 1920) to have reached 
£4,000,000 a month. 

Most of the gold shipped home by South Africa is reach- 
ing the east. The gold re-exported to South Africa has gone 
to make up the wastage caused by illicit export to India, the 
amount sent to the Straits Settlements must have largely 
gone in the same direction; and it is probably not far wrong 
to say that in this way £20,000,000 of gold extracted from 
South African mines in the last nine months has found or 
will find its way to India. 



January 7, 1921 



THE MONETARY TIMES 



63 



THE DOMINION BANK 



ESTABLISHED 1871 



Capital Paid Up - - - 

Reserve Fund and Undivided Profits 



$6,000,000 
$7,500,000 



Sir Edmund B. Osier, President 

A. W. Austin 

Sir Augustus M. Nanton' 



Vice-Presidents 




London, England 

Branch 
73 Cornhill, E.C. 3 

S. L. Jones, 

Manager 



«y "- ft 111 

mm 9 



n 331313 ii 

31 131111 if 




^ 




New York Agency, 
51 Broadway 



C. S. Howard, 
Agent 



HEAD OFFICE OF THE DOMINION BANK, TORONTO 



CLARENCE A. BOGERT, General Manager 



THE MONETARY TIMES 



Volume 66 



In the year to March 31, 1920, India's declared net im- 
ports of gold reached £17,400,000, practically all in the last 
five months of the time, the amount increasing rapidly until 
March showed twice the figure of November. The net ex- 
ports from the United Kingdom to India for the six months 
to June 30 last were £18,211,000. Declared gold holdings (as 
given in the first table) are sometimes deceptive. During 
the five months July to November, 1919, there were net im- 
ports into the United Kingdom amounting to £54,854,000, 
and the Bank of England's declared gold holding showed an 
increase of only £3,223,000 during that period. £42,886,000 
of the amount came from Holland and Belgium, and was 
doubtless largely German gold intended to pay for food- 
stuffs. During the first six months of this year we have ex- 
ported (net) £19,052,000 of gold, and in the same time the 
Bank of England's declared gold holding was advanced £26,- 
600,000! Thus the declared position seems to have been re- 
dressed. 

Principal Gold-Holding Countries 

It is interesting to note that the pre-war and present 
positions of the principal gold-holding countries of the world 
are: — 

(In millions of pounds) 

Pre-war. Now. 

In banks 

and in "Lost," 

State circu- State immobilized 

bank. lation. Total. bank, or hoarded. 
United States. Dec. 31, 1914. 243 128 371 445 74* 

France. Dec. 31, 1914 (U.S. 

Mint) 166 119 285 144 141 

Russia. Dec. 31, 1914 (U.S. 

Mint) 155 49 204 (?)65 139 

Germany, Dec. 31, 191S 

(Frankfurter Zeitung).. 69 112 131 55 126 
United Kingdom, June 30, 
1914 (Currency Com- 
mittee) 38 123 161 146 15 

Totals G71 531 1,202 855 347 

•Gained. 

The record of the United Kingdom, so far as it can be 
traced, is: — 

June 30, 1914. June 30. 1915. June 30, 1919. June 80, 1920. 

£117,000.000 £146.000,000 

Bank of England. £38,000.000 £81.000,000 £117.000.000 £146.000.000 

Banks 45.000,000 (?) 40.000.000 I , . 50 000 000 

Public 78.000.000 75.000,000 I '■' ''"■'"'"■'"'" < .) O".""".""" 

£161,000,000 £196,000,000 £167.000,000 £196,000,000 

The Currency Committee recommended that the stock of 
gold in the Central Institution should be increased to £150,- 
000,000, and this has now been attained. 



BANK PREMISES AT COST 

In the year 1919 there were more branches of Canadian 
banks opened than in any previous period in the banking 
history of the Dominion. (Jreat expansion in this connec- 
tion also took place during 1920, although not on quite as 
large a scale. The figures given below reflect this to some 
extent, showing the value of bank premises, month by month 
since January, 1917. The amounts given, however, do not 
represent the present-day value of the banks' premises. The 
government requires that this item in the monthly statement 
be valued at not more than cost, less depreciation, if any, 
and that no provision be made for appreciation. It is evi- 
dent, therefore, in view of the rising cost of real estate dur- 
ing the past two years, that the figures which follow under- 
value the premises to a certain degree: — 

1917. 1918. 1919. 1920. 

January $49,317,636 $51,716,972 $52,801,507 $56,500,332 

February 49.620.189 51,897,132 53.005.275 57.207,547 

March 49.967,852 52,388,793 53,317,635 57,946,975 

April 49,980,909 62.313,874 54,443,467 55,317,655 

May 50,134,753 52,501,581 53,898,884 56.459.647 

June 50,450,150 62.780,885 54,315.064 57.192,011 

July 50,577,670 .52.954.694 64.667.642 57.896.005 

August 50.725.312 53,333.467 56.014,766 58,554,076 

September 51,188.669 53.268,468 55,464.363 59.297,890 

October 61,107.191 53,009,741 55,602,824 60,126,795 

November 50,850,974 .52.547.327 55.518,536 

December 51,484,686 62,550,835 55,944,018 



MONTREAL AND QUEBEC SAVINGS INSTITUTIONS 

That the Montreal City and District Savings Bank and 
the Caisse d'Economie Notre Dame, of Quebec, are two im- 
portant banking institutions in the Dominion, is evident from 
the figures which are given below. Their business is chiefly 
with the French-Canadians of their respective communities 
and savings deposits constitute the greater part of their lia- 
bilities to the public. The Dominion government keeps funds 
on deposit with them, but during the past year, as in the case 
of the chartered banks, these balances have been greatly 
reduced. 

The chief investment of these institutions, as will be 
noticed, is in Canadian municipal securities, although their 
holdings of other bonds and stock are considerably heavy. 
Their loans are made largely on bank stocks and other se- 
curities, although the former are not very significant. 

The trend of notice deposits reflects the prosperity of the 
communities in which they operate. The quick recovery from 
the effects of the Victory loan in the fall of 1919 is especially 
notable, particularly in the case of the Montreal bank. 

Montreal City and District Savings Bank 





Dominion 












government 




Loans 


Canadian 






demand 


Notice 


on 


municipal 




1919. 


deposits. 


deposits. 


securities. 


securities. 


Cash. 


October 


... $ 93,599 


$40,253,569 


$7,268,848 


$16,481,022 


$7,017,658 


November 


. . . 2,916,405 


38,880,396 


8,031,883 


16,381.179 


7,094,666 


December 

1920. 
January 


. . . 1,354,920 


40,213,589 


8.155.710 


16.400,944 


6.782.375 


972,377 


40,982,767 


8,467.671 


16.563,863 


6,636,242 


February 


642.376 


41,947,219 


8.528,526 


15,728,125 


6.813,298 


March . . . . 


624,836 


42,693,315 


8,856.906 


15,800.058 


7,052,432 


April 


614,835 


42,798,052 


9,178,936 


15,618.772 


7.366.586 


May 


619,835 


42,708,148 


9,216,677 


16.600,076 


7.296.117 


June 


395,043 


42.928.529 


9.441,090 


16,241,758 


7,513,983 


July 


336,043 


43.043.074 


9,396,848 


16,191,611 


6.831.303 


August 


286,043 


43,654,974 


9,307.661 


16,167,414 


7.103.422 


September 


260,043 


43,889,372 


9.610.628 


16,136,263 


6.785.748 


October . . . 


200,043 


43,950.117 


9.576,381 


16,074,660 


7,037,959 



Caisse d'Economie Notre Dame de Quebec 



Dominion 










government 




Ix>ans 


Canadian 




demand 


Notice 


on 


municipal 




deposits. 


deposits. 


securities. 


securities 


Cash. 


. $ 


$10,688,489 


$3,070,713 


$4,087,966 


$1,869,093 


. $ 515,985 


10,119,820 


2,984,875 


4,087,534 


1,711.899 


422,880 


10,196,410 


3,003,488 


4.083.687 


1.707,758 


357,605 


10,209,265 


3,098,423 


4,082.464 


1.620,782 


202,041 


10.341,502 


3,081,775 


4,121,677 


1,600,022 


188,628 


10,424.737 


3,200,655 


4,121,677 


1,554,108 


188,628 


10.513.667 


3,247,493 


4,114,676 


1,663,534 


168,628 


10.645,071 


3,219,714 


4,113,968 


1,632,221 


95,628 


10,468,067 


3,242,860 


4,107.008 


1,398,087 


68,628 


10,292,696 


3,182,692 


4,104,616 


1,287,284 


43,628 


10.729.619 


3,183,629 


4,078,615 


1,302,238 


33,628 


10,324.364 


3,203,326 


4.074,780 


1,326,916 


7,628 


10,507.703 


3,213,922 


4,070.941 


1,620,242 


BANK LOANS TO DIRECTORS 





1919. 

1919. 
October 
November 
December 

1920. 
January 
February 
March 
April 
May 
June 
July 
August 
September 
October 



In the monthly returns to the government, Canadian 
banks are requested to show the aggregate amount of loans 
to directors and firms of which they are partners. The fig- 
ures given below show that the course of these loans during 
the past three years has not been anything out of the ordi- 
nary. Expansion, of course, has taken place as general bus- 
iness activity has increased: — 

1918 1919 1920 

January $8,282,811 $8,412,352 $10,193,668 

February 8,124,358 8,935,094 10,486,347 

March 9,490,098 9,513.529 10,838,430 

April 8,004,424 9,274,523 11,192,329 

May 7,967,892 7,919,869 10,753,595 

June 8,013,622 7,275,448 10,506,652 

July 7,642,280 8,645,725 10,408,321 

August _- 7,544,298 8,545,891 10,514,251 

September 7,227,344 9,135,518 9,641,328 

October 7,329,893 8,837,140 9,951,009 

November 8,749,377 10,742,309 

December 9,021,436 9,573,924 



January 7, 1921 



THE MONETARY TIMES 



55 



BANK OF NEW ZEALAND 

ESTABLISHED in 1861 

Bankers to the Governnieiit of New Zealand, which holds Preference Shares in the Bank for $3,649,875, and 
guarantees its Redeemable Stock .$2,579,186. 

Paid-up Capital ($13,528,811) and Reserve Fund ($12,166,250) $25,695,061 

Undivided Profits $713,039 

Aggregate Assets at 31st March, 1920 $257,500,944 

BOARD , OF DIRECTORS: 



WELLINGTON, N.Z. 

(Four are appointed by 
New Zealand Govern- 
ment ; two elected by 
Ordinary Shareholders.) 

H. BEAUCHAMP 

(Chairman) 
GEORGE ELLIOT 
R. W. KANE 
WM. REECE 
J. H. UPTON 
WM. WATvSON 



HEAD OFFICE : 




LONDON BOARD 

FREDK. LUBBOCK 

(Chairman) 

THE RT. HON. LORD 
CARNOCK, G.C.B. 

ALEX. MICHIE 

SIR. JAMES MILLvS, 

K.C.M.G. 



LONDON OFFICE 



WELLINGTON, NEW ZEALAND. 1, Queen Victoria Street, E.G. 4. 

General Manager : H. BUCKLETON, Manager ; ALEXANDER KAY. 

{Auditors Appointed by New Zealand Government) : 

RICHARD W. GIBBS, Chief Auditor. W. C. SNEATH (Price, Waterhouse & Co.), London Auditor. 

THE BANK OF NEW ZEALAND has Branches or Agencies in all the principal cities and towns in New Zealand, in 
Melbourne and Sydney (Australia), Suva and Levuka (Fiji), and Apia (Samoa), also Agents in all the principal Cities in the world. 

The Bank has facilities for conducting every description of Banking business. 

The Bank negotiates at any of its Branches Bills drawn in dollars under American Credits as well as those in sterling, and 
it invites the establishment of such Credits. It also issues Drafts or Credits, either in dollars or sterling, on any of the princi- 
pal cities in North America. 

Chief Agents in Canada : 

CANADIAN BANK OF COMMERCE. BANK OF MONTREAL. 



American Express Company 
Bank of Nova Scotia 



Other Agents and Correspondents in Canada : 

Bank of Ottawa 
Dominion Bank 
Dominion Express Company, Toronto 

Chief Agents in New York: IRVING NATIONAL BANK. 



Imperial Bank of Canada 
Royal Bank of Canada 



Chief Agents in San Francisco FIRST NATIONAL BANK OF SAN FRANCISCO. 



Other 

American Exchange National Bank, 

New York 
American Express Company 
Bankers' Trust Company, New York 
Bank of Bishop and Company, Honolulu 
Bank of Italy 
Bank of Montreal 
Bank of Nova Scotia 
Brown Brothers and Company, Boston 
Canadian Bank of Commerce 
Chartered Bank of India, Australia and 

China 
Chase National Bank, New York 
Columbia Trust Company, New York 
Crocker National Bank of San Francisco 
Drexel & Company, Philadelphia. 
Equitable Trust Company of New York 



Agents and Correspondents in United 

Farmers & Merchants National Bank. 

Los Angeles 
Farmers Loan and Trust Company, New 

York 
First National Bank of Boston 
First National Bank of Chica,go 
Greeneiiaum Sons Bank & Trust Co., 

Chicago 
Guaranty Trust Company of New York 
Hanover National Bank of the City of 

New York 
Hong-Kong & Shanghai Banking Corp. 
Illinois Trust & Savings Bank, Chicago 
International Banking Corporation 
Mercantile Bank of the Americas, New 

Orleans. 
Mercantile Trust Co.. St, Louis 



States : 

Merchants National Bank of Boston 
Morgan & Co., J. P., New York 
National Bank of Commerce, vSt. Louis 
National Bank of South Africa, Ltd. 
National City Bank of New Y'ork 
National Park Bank of New York 
National Shawmut Bank, Boston 
Northern Trust Company, Chicago 
Philadelphia National Bank 
Riggs National Bank of Washington, 

DC. 
Royal Bank of Canada 
Standard Bank of South Africa, Ltd. 
Walker Bros., Salt Lake City. 
Yokohama Specie Bank, Ltd 



THE MONETARY TIMES 



Volume 66 



Leading Bankers Forecasted Tightening of Credit 

Views Expressed During Past Year Urged Caution, with Leaning Towards Pessimism 
as to Business Outloolt — Sir Frederick Williams-Taylor on Loans and Deposits — No Desire 
for Violent Exchange Fluctuations — Great Need for Public and Private Economy 



CANADIAN bankers, from the beginning of 1920, took a 
stand on the side of caution. This view they carried into 
effect by a gradual restriction of credit, which action was not 
altogether voluntary on their part because of the fact that t 
would have been quite impossible to meet the demands for 
money without causing over-inflation and danger to the banks 
themselves and business organization as a whole. The figures 
of banking for the year, showTi elsewhere in this issue, illus- 
trate how this policy was put into effect. 

Representative opinions of bankers, expressed for the 
most part at the annual meetings, are given below. These 
opinions indicate the line of action followed by the banks dur- 
ing the year. 

No Extra Profit in Exchange 

H. B. Shaw, general manager of the Union Bank, at the 
annual meeting on January 7, 1920 : — 

"No permanent relief can be expected until the nations of 
the world get together, without greed or selfish motives, and 
in a frank and fearless manner face existing conditions. The 
United States might very properly be expected to take the 
lead. As far as we in Canada are concerned, time, production 
and thrift are the only possible solvents. Exporters and im- 
porters should not open credits or engage in contracts without 
exercising the utmost caution. Inflation of the various cur- 
rencies has caused exchange to become a most important ques- 
tion. An erroneous idea prevails that the banks are respons- 
ible for and making large profits out of the present situation. 
This is, indeed, incorrect; the banks derive no extra profits as 
the result of the hea\'y fluctuations in exchange. We shall, 
indeed, welcome a return to normal conditions." 

Time for Production 

Sir Herbert S. Holt, president. Royal Bank of Canada, at 
the annual meeting, January 8, 1920: — ■ 

"During the year just passed Canada has again proved 
her ability to meet every emergency as it arises. Our soldiers 
have been absorbed into civil life without strain, our indus- 
tries have been readjusted with little unemployment, and the 
unfailing response of our people to every patriotic call has 
been shown by the immense over-subscription to the last Vic- 
tory Loan. Despite an unfavorable harvest in some parts of 
the w-est, the country is prosperous and the balance of trade 
continues largely in our favor. 

"Factors which have contributed to the prevailing high 
prices are being gradually eliminated. Ocean transportation 
sei-v-ice will soon far exceed that of the pre-war period and 
stores which have accumulated in distant lands will, as a 
result, become readily available. Industrial plants have mul- 
tiplied and everywhere an aiTny of women workers has been 
added to the ranks of labor. Moreover, Europe can only ulti- 
mately pay its huge debts by a corresponding output of goods. 
We shall then enter upon an era of greater supplies and keen 
competition. If pi-ices fall in the future, as seems probable, 
each dollar made and saved to-day will then have greater pur- 
chasing power. We should, therefore, strive to produce to the 
limit of our capacity while markets are high, and exercise the 
most rigid economy in order that our gains may be conserved. 

"The government is still discharging some of the heavy 
obligations arising out of the war and the net public debt now 
fast approaches two billion dollars. There are only two ways 
of meeting this responsibility — greater industry and less ex- 
travagance — prosperity is not unending or national borrow- 
ing power unlimited. It is an unvarying economic law of 
which we in Canada had a bitter experience following the Civil 
Wai' — that all conflicts terminate in a period of prosperity and 
inflation during reconstruction, which is succeeded by equal 



or greater depression. For this inevitable reaction in the 
future we should now be prepared, and it is the duty of the 
government to set an example to the nation by abstaining 
from all unnecessary or wasteful expenditure. It cannot be 
too strongly urged or too often repeated that the greatest pos- 
sible effort must be put forth in every direction if we are to 
meet the amount required for interest and the redemption of 
debt. It has been aptly said that governments have no income 
outside that of the people, and that the wealth of a country, 
like that of an individual, can only be built up by spending 
less than is earned. 

A Year of Surprises 

Sir Edmund Walker, president of the Canadian Bank of 
Commerce, at the annual meeting on January 13, 1920: — 

"The difficulties of reconstruction after the great war are 
even greater than we feared. The whole world is feeling the 
effect of four years in which the ordinary work and economics 
of life were not merely neglected, but the basis thereof was 
almost swept away. We are short of almost every commod- 
ity, the strongest evidence of this being the fact that millions 
of people in Europe face actual starvation. We cannot re- 
establish the normal supply of commodities except by work- 
ing harder than usual, and we cannot lessen the terrible strain 
of high prices without doing the extra work which will put an 
end to the lack of commodities. We cannot adjust prices 
without also bringing about a contraction in the volume of 
paper money and other instruments of credit, and so far as 
it is possible to enforce contraction without interfering with 
the production of what is really necessary, the reduction of 
prices will be facilitated. In a word, bankers should not aid 
speculation or assist ventures which do not directly lead to 
production. We are still building ships with feverish haste 
throughout the world, and we ought to be spending large 
sums on railroads in order that commodities may be freely 
distributed. The present cost of ocean transportation, quite 
as much as the cost of goods at the primary markets, stands 
like a huge barrier across the pathway of return to normal 
conditions. What is worse, how-ever, is that even present 
prices, in the natural order of things, will go on rising until 
the lack in the world's supply of commodities has been filled, 
and there has been a large contraction in the volume of paper 
money now in existence." 

Need for Government Economy 

W. G. Gooderham, president. Bank of Toronto, at the 
annual meeting, January 14, 1920: — 

"The indebtedness of the country has now reached an 
amount that will prove a heavy burden for our present popu- 
lation. So long as the war existed and such tremendous 
issues were at stake, no sacrifice was too great to be taken in 
supporting the government in their defence of the empire, but 
the time has come when the best energies of the administra- 
tion must be directed towards reducing expenditure in every 
direction. No new indebtedness should be incurred excepting 
such as will have the direct effect of increasing production, or 
for such enterprises as will return sufficient revenue to fully 
justify the expenditure. Every new demand upon the treas- 
ury should be tested by these requirements, and every effort 
should be made to lessen in every way the country's expendi- 
ture. 

"Upon the amount of our production depends the amount 
and value of our exports, and to the increase of our exports 
we must look for the means whereby we can comfortably carry 
the burden of interest on our national debt. There is no 
country that can look forward with greater hope and confi- 
dence than Canada. We have immense potential resources. 



January 7, 1921 



THE MONETARY TIMES 



57 



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BOARD OF DIRECTORS: 

Sir John Hendrie, K.C.M.G., C.V.O., President. Cyrus A. Birge, Vice-President. 

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Pittsburg— Exchange National Bank 
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New York — Hanover National Bank 

Mechanics and Metals Na- 
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National City Bank 

Philadelphia— First National Bank 

Boston — National Shawmut Bank 

Buffalo — Marine Trust Co. 



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Sail Francisco — Crocker National Bank 
Duluth — American Exchange National 
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CORRESPONDENCE SOLICITED. SAVINGS DEPARTMENT AT ALL BRANCHES 

J. P. BELL, General Manager 



58 



THE MONETARY TIMES 



Volume 66 



and the development of them is certain to take place. It may 
take time — perhaps it is better that we should grow steadily 
rather than rapidly, but our future is certain to be a bright 
one." 

Recent Prosperity Was Not Sound 

H. A. Richardson, general manager of the Bank of Nova 
Scotia, at the annual meeting on January 28, 1920 : — 

"During the past year conditions generally have been a good 
deal confused, and while prosperity has been fairly general 
throughout Canada, it has been of a somewhat feverish char- 
acter, for there is the knowledge that it is based to a consider- 
able extent on inflation. Similar conditions prevail in the 
United States, where speculation in commodities and real 
estate, in addition to the somewhat common speculation in 
shares on Wall Street, has resulted in a considerable strain 
on floating credit. Foreign trade has been hampered by ab- 
normal exchange rates, labor has been unsettled and the oper- 
ation of most businesses has been attended by considerable 
anxiety. The press and the platform have teemed with 
theories for the amelioration of the conditions confronting us, 
and we have had what seems ample time to consider all aca- 
demic remedies for the disposal of this aftermath of the war. 
We should, therefore, without further loss of time, get down 
to honest, hard work which, after all, is the real panacea for 
our present troubles. If each and every person would give a 
good account of himself in that respect, it must follow that 
efficiency would obtain throughout our land, with the result 
that, through increased production, the process of deflation 
would forthwith begin, and we would then, year by year, find 
our national debt being gradually absorbed and liquidated — 
for that overhanging debt and the further needs of the gov- 
ernment are in fact the outstanding matters of vital import- 
ance to all of us, as we shall more fully realize a little later 
on. It seems impossible that any one should fail to recognize 
personal responsibility in connection with the financial obliga- 
tions of our country. The debt was incurred to carry us 
safely through the war, and it is only by individual effort that 
it can be borne and finally liquidated. The matter is personal 
to every citizen of Canada. It is therefore essential that work 
and increased production be undertaken and persisted in, and 
that personal and public expenditure be scrupulously kept 
down to the last dollar. It would seem advisable, rather than 
lay down maxims for others, that each individual, and partic- 
ularly those responsible for the management of each business 
enterprise, make certain that the work entrusted to him and 
those under him is performed with the maximum of efficiency. 
Given that, we shall gradually work back to normal conditions; 
failing it, we are heading for serious trouble." 

Widespread Rise in Prices 

J. P. Bell, general manager of the Bank of Hamilton, at 
the annual meeting on April 19, 1920, referred to the rise in 
prices as world-wide, rather than local, and gave as some of 
the causes the excessive issue of government bonds and note 
circulation, the insistent and increasing demand for goods, 
accompanied by disorganized and decreased production and 
excessive taxes. Money being only a shadow of the substance 
represented by commodities, the decrease in the production of 
commodities has resulted in an increase in their price. He 
then referred to the excess profits tax, and the heavy surtaxes 
on the income tax, as a paralyzing element so far as the trade 
of the country is concerned, and said that some other means 
should be found of raising the revenue necessary to pay the 
interest and gradually retire our war debts. The taxes made 
it necessary for the price to be raised by each man through 
whose hands the goods passed in order to realize cash to cover 
his own taxes, a cumulative burden which would inevitably 
result in a reaction in trade and restricted production, or de- 
mands for credit which would be a dangerous strain on the 
finances of the country, and which would prevent the natural 
increase in capital needed for new enterprises and growing 
business, excessive taxation being, therefore, a. large con- 
comitant of the high cost of living and the prevailing discon- 
tent. It would be necessary to speed up production and to 
produce more of the necessities of life, both on the farm and 



in the factory. At a time when more work and more goods 
should be the watchword, everyone seemed to be trying to ob- 
tain more leisure. 

Room for More Population 

G. T. Somers, president. Sterling Bank, at the annual 
meeting on May 18, 1920: — 

"While there is a good deal of talk and general unrest, I 
have no fear as to the future prosperity of this country. 
There is a good and comfortable living to be made here for 
everyone. I believe we have a sound and contented popula- 
tion whose judgment in the end will lead them to safe conclu- 
sions, and govern their acts wisely. What we need most now, 
which I emphasized before the war, is 'increased population 
of a desirable type' to develop our resources and increase our 
production." 

Conditions Very Uncertain 

Peleg Howland, president. Imperial Bank, at the annual 
meeting. May 26, 1920:— 

"It is hoped and believed that we will do well during the 
coming year, but there was never a time in my recollection 
when conditions were so uncertain, and when it was so difficult 
to form an opinion, satisfactory at least to oneself, as to what 
may be in store for us. Here is the situation in Canada as it 
appears to me: Large government expenditures have been 
sanctioned by parliament; outlays on the acquired railroads 
must be made; public works, thougli curtailed, have not 
ceased. Our pulp and paper industries have expanded enor- 
mously, and are continuing their growth. There is demand 
for lumber at extraordinary prices, and efforts are being made 
to supply it. The manufacturers of nearly all kinds of goods, 
with the exception of those making some lines of clothing, in- 
cluding silks and boots and shoes, are as busy as labor, power 
and transportation conditions will permit. Good returns are 
promised from our fruits, furs, fish and minerals. Immigra- 
tion has increased, the numbers being some 57,000 in 1918-19, 
and 117,000 in 1919-20. There is investment of United States 
funds in Canadian securities, industries and timber limits; 
wages continue high, with indications that they have not 
reached the limit, and there is an almost unlimited demand 
for housing at any cost. 

"Against all this we have the comparatively small resi. 
due of crop left over from last year, the long, severe vrinter, 
which has delayed seeding and prevented the proper prepara- 
tion of the soil, with consequent reduced acreage and adverse 
chances of good crops (although recent advices from the 
northwest would indicate that the excellent conditions as to 
moisture may go a long way to offset other drawbacks) ; the 
loss of cattle and horses in the northwest from the severity of 
the winter and the shortage of feed; the poor condition of 
those remaining; the curtailment in the number of hogs be- 
cause of the cost of production; the continued increase in the 
amount of our imports and the decrease in our exports (in the 
months of March and April the balance of trade was actually 
against us) ; the growing public debt and the increasing bur- 
den of taxation, municipal, provincial and Dominion; govern- 
mental restrictions and interference with the natural course 
of trade — for governmental efforts to provide liberally for 
the weak, the needy and the helpless, while at the same time 
curtailing or restricting the amount of labor or effort, which 
should be greater if help of this kind is to be provided. Put 
the favorable against the unfavorable, and judge for your- 
selves. 

Selective Curtailment of Credit 

D. C. Macarow, general manager of the Merchants Bank, 
at the annual meeting on June 2, 1920: — 

"The demand for borrowed capital continues to be more 
or less importunate, and it is in the conservation of credit and 
the equitable rationing of it that banks can play, and indeed 
are playing, a sound constructive role. Legitimate productive 
enterprises are being fostered and encouraged fairly, while at 
the same time a firmly restraining hand is held upon unpro- 
ductive, non-essential and speculative undertakings. This pol- 
icy of selective curtailment, so to put it, operating as it does 
at the very root of existing evils, and applied \vith due judg- 
ment, discrimination and consistency, cannot but prove a bene- 



January 7, 1921 



THE MONETARY TIMES 



59 







NATIONAL PRIDE 

iiiBiiiimiiiii iBiiiiiii ■■iiiiimiiiiiiiimiiiiiMiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiira 

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Ottawa 



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Branches : 

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Vancouver 



IHE Toronto General Trusts Corporation 



THE MONETARY TIMES 



Volume 66 



ficial corrective and an importantly contributing factor toward 
restoring, with a minimum of dislocation and disturbance, 
healthy and normal conditions in the body politic. 

"I might here venture to say that it is a matter of grati- 
fication to see our mercantile marine growing apace and to 
know that the government will have, it is understood, some 45 
mei-chant vessels in commission by the end of July next. I 
mentioned last year, and I reaffirm the opinion then expressed, 
that there is nothing of greater national importance than the 
establishment of our own lines of ocean transport, and what 
has been and is being accomplished in this direction, both by 
the government and by private enterprise, augurs well for 
the future safety and stability of the country's trade and com- 
merce. 

"After what looked like in some respects an ominous start 
the crop situation throughout the country now seems to justify 
the belief that good yields will be secured this year. Predic- 
tions, however, are futile, and we can only nurse the hope that 
actual results will fairly measure up to present optimistic 
estimates. Certainly, on the theory of averages alone, we are 
entitled to look for some redress in the crop situation this 
year. Much depends upon it, more especially in view of the 
disappointing results of the last two years, and if nature is 
benevolent in the coming harvest, this country will benefit to 
an unmeasured extent, and we shall be reasonably in a posi- 
tion to view the period of deflation, upon the threshold of 
which we stand, with feelings of confidence as to our immedi- 
ate future — as to our ultimate future there need be no mis- 
giving, for it must be borne in mind that Canada is a young 
and virile country of almost limitless possibilities and im- 
mense natural resources awaiting development; that its man- 
hood is strong, enterprising, thoughtful and sane." 

Gradual Deflation 

R. Audette, president. La Banque National, at the annual 
meetmg on June 9, 1920: — 

"We believe that this year will see a diminution in the 
advances made to the public and that prudence will oblige the 
banks to curtail and choose 'more carefully the operations in 
whach they will interest themselves. The facilities which have 
been offered by the government during the war will grow less; 
the banks who have bororwed will have to reimburse, and this 
will allow the government to withdraw a good proportion of 
its paper and, to a great extent, re-establish the gold basis it 
had before the war. However, this should not be done at the 
expense of production. It is evident that, if the government 
collects Its loans too suddenly and obliges the banks to hamper 
production, it will cause a greater evil; as, if by such a line 
of conduct, our exports with the United States decrease and 
our imports are the same, our money, which, in relation to the 
United States, was worth 10 per cent, to 15 per cent, all the 
year less than theirs, will be worth still less, whatever the 
gold guarantee the government may have for its paper. What 
is wanted for the welfare of Canada is to import only what is 
strictly wanted, not to accumulate any goods for speculation 
especially necessities of life. We must produce and produce 
still more, so that the balance of trade will be in our favor." 

Effects of New Taxes 

H. J. Daly, president, Home Bank, at the annual meeting, 
June 29, 1920:— 

"There probably will be some temporary setback to busi- 
ness through the levy of taxes under the new budget. The 
difficulties of framing this measure of taxation are generally 
appreciated, as is evidenced in the willingness of business in- 
terests to meet conditions brought about by the application of 
the new levy. The national debt is there, to be paid off as 
expeditiously as may be accomplished without disturbing the 
accustomed channels of industry and trade. Exports and pro- 
duction cannot be taxed. The presumption is that the tax 
may be raised from what the people can comfortably spare 
and what may be added to the overhead charges of the man- 
ufacturing and trade without hindering activity in these 
spheres. The budget aims in these directions and \vill in all 
likelihood be ultimately brought to operate equitably in the 
minor features of its detail." 



Adverse Trade Balance 

Tancrede Bienvenu, general manager of the Banque Pro- 
vinciale du Canada, at the annual meeting on August 11, 
1920:— 

"The balance of trade with the United States this year 
shows a heavy deficit against our country. We are convinced 
that it is the imperative duty of Canada to reform its position 
in this regard, for such an adverse balance is without doubt 
the first cause of the depreciation of our currency in the 
United States. An intense utilization of all our resources, 
economy and production to the utmost extent, and most im- 
portant of all, restrictions in importation of luxuries, will 
facilitate the task to which of necessity conditions of the pres- 
ent time oblige us." 

Deposits Fail to Keep Up 

William Molson Macpherson, president of the Molsons 
Bank, at the annua-l meeting on November 2: — 

"The deposits of the Canadian public in the chartered 
banks of Canada show an increase for the year of $70,000,000, 
but the bank loans in Canada have increa'Sed by $360,000,000. 
This justifies the banks in their present policy of restricting 
loans. You are doubtless aware that for the past four or five 
years the Canadian banks have supplied their customers with 
the necessary funds to conduct their business with little, if 
s-ny, increase in discount rates, and our customers at the pre- 
sent time are discounting their bills at lower rates than can 
be obtained in Great Britain or the United States. We are 
sure that the Canadian public must value the steady money 
market they have enjoyed all through these troublesome times. 

"The period of falling prices has begun and provided the 
drop is gradual and not violent, our people should be able to 
meet the changing conditions without difficulty. Most of our 
manufacturing and trading firms have prospered so well dur- 
ing the past few years that they are in a good financial condi- 
tion to meet a period of readjustment without embarrassment. 

Comparison With United States 

Sir Frederick Williams-Taylor, general manager of the 
Bank of Montreal, at the annual meeting on December 5: — 

"As comparisons are constantly made between Canada 
and the United States, owing to general similarity in con- 
ditions, one anomaly attracts attention, viz.: that with credit 
restriction as acute here as it is across the line, the price of 
money is materially lower in the Dominion. 

"This condition, in days of world-wide high interest rates, 
has a^ttracted much attention in other countries and is re- 
garded as a tribute to Canada's good banking system. The 
one disadvantage of this cheap money condition is that per- 
sons on fixed incomes derived from investments face the 
higher cost of living, including income tax, with little in- 
crease in revenue. 

"With reference to current loans in Canada-, your Direc- 
tors have felt impelled for many months past, in the Bank's 
and the country's best interests, to follow the policy found 
essential in every other country, and keep within bounds our 
advances to merchants and manufacturers. This policy is in 
accordance with the views of the Dominion Government and 
has been followed, more or less closely, by aJl Canadian banks. 

"Naturally enough, exception has been taken in certain 
quarters to such restrictions, but, as a rule, our customers 
have recognized the necessity of checking over-trading and 
further expansion in such times as we are now facing. There 
has never been a period in our experience when requests 
for advances for purposes out of the ordinary have been so 
numerous. 

"It is safe to say that had credit been granted freely and 
banking resources become tied up, a serious condition would 
have resulted in this country. Already the tide has turned 
and many of our friends now frankly admit the danger of the 
undue expansion so much in evidence a few months &go. We 
are convinced that the business of Canada is in a safer and 
sounder position to-day in consequence of a judicious credit 
restriction." 



January 7, 1921 



THE MONETARY TIMES 



Capital, $2,000,000 




Reserve, $2,000,000 



National Trust Company 

Limited 
Executor Guardian Administrator Assignee Trustee Liquidator 

President: SIR JOSEPH FLAVELLE, Bart. 

Vice-Presidents: E. R. WOOD, W. E. RUNDLE. 

W. E. RUNDLE, General Manager. 



Chester D. Massey 
H. C. Cox 

H. H. FUDGER 

H. B. Walker 

Hon. Sir Edward Kemp, K.C.M.G. 

J. H. Plummer 



Board of Directors : 

Hon. F. H. Phippen, K.C. 

H. J. Fuller 

T. B. Macaulay 

W. M. Birks 

E. M. Saunders 

Sir John Aird 

Thomas Findley 



Fred. W. Harcourt, K.C. 

James Ryrie 

Hon. Sir Thomas White, K.C.M.G. 

Miller Lash 

Harrington E. Walker 

Norman J. Dawes 



Head Office: 18-22 Kin^ Street East, Toronto 



Montreal 



Winnipeg 



Regina 



Saskatoon 



London, England 



BANKING 
INFORMATION 

During the six months ending Dec. 31st, 
1920, The Monetary Times of Canada 
published no fewer than forty-three (43) 
different articles that were of direct and 
vital concern to the practical banker. 
This was exclusive of banking statistics, 
clearing house returns, branch bank 
notes, etc. 

In addition, each issue contained a great 
volume of information on investments, 
insurance (all classes), all of which have 
interest for those concerned with the dir- 
ection of banking activities. 

The subscription price of The Monetary 
Times (including The Monetary Times 
Annual) is $3.00 a year postpaid. 

Monetary Times of Canada 

TORONTO 



The Home Bank 
of Canada 



BONDS AND FOREIGN EXCHANGE 
Every Branch of the Home Bank 
is in ready communication with the 
Bond and Foreign Exchange Depart- 
ments at the Head Office, and any 
enquiries made through any branch 
will receive prompt attention. 



Branches and Connections throughout Canada. 

Head Office— 
8-10 King Street West, Toronto 



THE MONETARY TIMES 



Volume 66 



Recent Legal Decisions on Canadian Banking 

Sections 77, 90 and 176 Interpreted During Past Year— Bank Must 
Ascertain Agent's Authority — No Authority to Guarantee Payment to 
Third Party — Drawer of Draft Personally Liable for Misrepresentation 
in Bank Should Have Advised of Privileged Lien on Its Own Stock 



T TNCERTAINTY as to the meaning of certain sections of the 
*-^ Canadian Bank Act have again brought banking questions 
into the higher courts of this country. The sections on which 
the most important decisions were made this year were sec- 
tions 176, 90 and 77. 

King vs. Royal Bank 

In the case of the King vs. Royal Bank of Canada the 
Manitoba Court of Appeal held that the burden of proving the 
authority of a government agent to receive payment of a 
cheque, drawn on a certain bank, payable to "Dominion Gov- 
ernment Elevator Company," rested upon that bank. 

The action was brought on a cheque for $673.68 drawn by 
Woodward & Co., grain merchants, on the Grain Exchange 
branch of the Royal Bank of Canada, in favor of "Dominion 
Govei-nment Elevator Company." The words "Canadian Gov- 
ernment Elevator" were stamped on the back of the cheque 
with a rubber stamp, and underneath those words there was 
written "Per F. S. Burgess." The cheque in question was 
given in payment of charges due from Woodward & Co. to the 
Dominion government in connection with wheat received and 
stored at the tei'minal elevator at Port Arthur. It was claimed 
that the proceeds of the cheque were improperly paid by the 
bank to O. S. Burgess, who was in charge of the Dominion 
government elevator business at Winnipeg, and who kept the 
money for his own use. The duty of Burgess to make deposit 
of all funds received by him was not only specifically set forth 
to him in written instructions, but was statutory, and he had 
no authority to expend any money for any purpose whatever. 

Bank Assumed Too Much 

In giving judgment against the bank the court said: "The 
actual authority of Burgess is determined by the letters and 
oral instructions referred to. He was authorized to take 
cheques or money in exchange for warehouse receipts and to 
make deposits to the credit of the Receiver-General. Without 
any express representation being made, the bank teller as- 
sumed that Burgess was the manager of a grain company, 
with full powers as such. In this the teller was clearly negli- 
gent. Moreover, the endorsernent, 'Canadian Government 
Elevator, per F. S. Burgess,' was direct notice that the cheque 
was being negotiated, not by the owner but by an agent 'per 
proc' By section 51 of the Bills of Exchange Act a signature 
by procuration operates as notice that the agent has but lim- 
ited authority to sign, and the principal is bound by such signa- 
ture only if the agent in so signing was acting within the 
actual limits of his authority. In this case the endorsement, 
'Per F. S. Burgess,' was sufficient to put the bank upon en- 
quiry as to the agents' authority. Upon the whole case, I am 
of opinion that the defendant bank has failed to establish the 
agency of Burgess, actual or ostensible, to receive this sum of 
money over their counter, and has failed to show that it ac- 
quired any title to the cheque in question by means of a valid 
endorsement." 

Merchants Bank vs. Stevens 

In the next notable case, that of the Merchants Bank vs. 
Stevens, the question came up as to whether a bank could 
guarantee the payment of a debt due a third party, the Mani- 
toba Court of Appeal distinctly holding (1) that a letter writ- 
ten on the bank's stationery and signed by the bank manager 
to guarantee the payment of a debt due a third party was not 
binding upon the bank, and (2) that the bank manager had no 
authority to give such a guarantee, and in doing so was not 
acting within the scope of his employment. 

Briefly, the facts of the case were that the Winnipeg 
Motor Exchange Company, an unincorporated company, had 



been in operation in Winnipeg, and in the course of its business 
the company became largely indebted to the Merchants Bank, 
the account being kept at the main branch, which was under 
the management of one Paterson. In August, 1917, the com- 
pany's indebtedness to the bank amounted to about $40,000, 
which amount Paterson was ordered by the general manager 
to reduce, but to which order he paid no attention. During 
the same month Paterson was instrumental in obtaining a sale 
of the business, the bank advancing $5,000, and the name of 
the company being changed to the Winnipeg Motor Company. 
As far as the bank was concerned, no improvement resulted, 
and Paterson continued initialing post-dated cheques to aid 
the company in securing further loans. On October 8th, 1917, 
the company negotiated a loan with Stevens, the respondent, 
for $10,000, to be paid in four installments. As security for 
the repayment of the loan the company gave to Stevens four 
post-dated cheques on the defendant bank, bearing the dates 
of the installments and for corresponding amounts. Paterson 
placed his initials on the lower left-hand comer of each 
cheque. He also signed and gave to Stevens the following let- 
ter: "In connection with the loan of $10,000, which we under- 
stand you are gi-anting to the Winnipeg Motor Company, to be 
repaid, and etc., we beg to notify you that this bank is pre- 
pared to grant the company a credit sufficiently large to enable 
them to take up these installments as they mature and hereby 
guarantees the payment of the said loan." The money received 
from Stevens was deposited to the credit of the company in its 
ordinary chequing account in the bank. 

The bank refused payment of the cheques and Stevens 
then brought action to enforce payment. 

No Guaranteeing Power in Bank Act 

In the decision the court said: "Apart from the question 
of ratification, the real point involved in this appeal is the 
power of the bank to give the guarantee. The powers which 
a bank may exercise are set out in section 176 and following 
sections of the Bank Act. No power to give guarantees is 
specifically given by the Bank Act. Any such power must be 
derived by necessary implication from the words of the act. 
The only words in the act which can possibly be appealed to 
are the words in section 76, subsection 1 (d) : "Engage in and 
carry on such business generally as appertains to the business 
of banking." The question then is whether these words by 
necessary implication give the bank power to guarantee the 
repayment of a loan by a third party to a customer of tha 
bank. When it is remembered that the bank itself is given 
specific power to loan money, and that the loaning of money 
to its customers is in fact its chief business, it is difficult to 
discover any ground for implying a power to guarantee the 
repayment of loans made by others. It was argued that rep- 
resentations made by the agent, even if fraudulent, bind the 
principal, and, as a rule, this is the law. But it is impossible 
in my opinion to rely upon the verbal promises of the manager 
when the contract has been reduced to writing in the form of 
a letter. Even if they could be relied upon, the plaintiff on",e 
again returns to the position of seeking to enforce a guarantee, 
verbal this time, made by the manager as agent for the bank 
which had no power to enter into it. From this standpoint 
there can be no ratification of the manager's action, for there 
can be no ratification of any ultra vires contract. 

"In my view, the giving of the guarantee or undertak- 
ing in his case was unauthorized by the Bank Act, and that dis- 
poses of the whole case." 

Bank of Nova Scotia vs. Hatfield 

Another case, which dealt with section 90 of the Bank Act, 
was that of Bank of Nova Scotia vs. Hatfield, which arose out 



January 7, 1921 THE MONETARY TIMES 63 



THE MERCHANTS BANK OF CANADA 

Established 1864 HEAD OFFICE: MONTREAL 

Paid-up Capital - - $8,400,000 Total Deposits (30th October, 1920) over $170,000,000 

Reserve Funds and Undivided Profits 8,660,774 Total Assets (30th October, 1920) over 209,000,000 

Board of Directors: 

SIR H. MONTAGU ALI^AN, C.V.O. President 

A. J. DAWES . - - - Vice-President 

Sir F. Orr Orr-Lewis, Bart. Hon. C. C. Ballantyne F. Howard Wii^on 

Farquhar Robertson Geo. L. Cains Alfred B. Evans 

Thomas Ahearn Lt.-Col. J. R. Moodie Lorne C. Webster 

E. W. Kneeland Gordon M. McGregor 

General Manager - • - - - D. C. Macarow 

Superintendent of Branches and Chief Inspector : T. E. Merrett 
General Supervisor ■ - - - - W. A. Meldrum 



A GENERAL BANKING BUSINESS TRANSACTED. 

399 Branches and Agencies in Canada extending from the Atlantic to the Pacific 

New York Agency : 63 and 65 Wall Street London, England, Office : 53 Comhilt 

W. M. RAMSAY and C. J. CROOK ALL, Agents J. B. DONNELLY, D.S.O., Manager 



THE 

TRADERS TRUST COMPANY 

Authorized Capital - - ' - $500,000.00 

Subscribed and Paid Up - - $100,000.00 

Authorized Trustee to Act under the Bankruptcy Act in the Provinces of 
Manitoba, Saskatchewan, and Alberta 

EXECUTORS 

J. B. NICHOLSON. ADMINISTRATORS AND ^- ^^ campbell. 

President - — • ^ ice-rresidcnt 

FINANCIAL AGENTS 

Head Office : WINNIPEG. Branch Offices : Regina, Saskatoon, Edmonton 

BANKERS: Merchants Bank of Canada. 



64 



THE MONETARY TIMES 



Volume 66 



of the acceptance by Hatfield and the discounting by the bank 
of a certain draft, and an action commenced in 1918 in regard 
to the matter had been dismissed, but "without prejudice, how- 
ever, to any action which might be taken by the plaintiff 
against any person or persons whatever on or in respect of 
the bill of exchange sued on." This action was then brought 
by the bank against Hatfield as acceptor. 

The facts of the case were that the firm of Hatfield & 
Scott of New Brunswick and Montreal had made arrange- 
ments to buy carloads of apples from Edward Harrison of 
Kentville. N.S., to be paid by drafts drawn by Harrison, and 
to which the bills of lading were to be attached. On Decem- 
ber 8th, 1917, Hatfield and Harrison called upon the agent of 
the Bank of Nova Scotia, and the agent of the bank said he 
filled in the date in a form of draft and also the words "at 
sight." Harrison signed the draft as drawn and Hatfield ac- 
cepted the draft as it then was by writing at the foot of the 
draft, "O.K., Hatfield & Scott Co., Ltd., per H. H. Hatfield," and 
the draft was afterwards filled in for the sum of $927.50, the 
draft being drawn on Hatfield & Scott, Ltd., Monti-eal. The 
draft was discounted by the Bank of Nova Scotia and the pro- 
ceeds placed to the credit of Edward Harrison. The evidence 
further showed that although Hatfield & Scott had applied for 
incorporation, they had not at the time received their letters 
of incorporation, but believed in the interval they vs'ere an in- 
corporated company. Further, the evidence showed that Hat- 
field had not been legally authorized by the company (which 
in reality did not at the time exist) to act as its agent, but 
that he did so. 

Decision of the Court 

In deciding the case Mr. Justice Chandler says: "Consid- 
ering that Hatfield knew- when he accepted the draft sued on 
that it was to be used immediately in order to put Edw-ard 
Harrison in funds, and that it was absolutely useless and futile 
for Hatfield to accept the draft if the draft was not to be valid 
or used until a bill of lading for a carload of apples was at- 
tached to it, and that this particular draft was discounted by 
the bank and the proceeds placed to the credit of Edward Har- 
rison's account on December 10, 1917, I have come to the con- 
clusion that the draft was not accepted by Hatfield condition- 
ally, as contended by him. If the draft was not to be used — that 
is, discounted by the bank — until a bill of lading for apples was 
attached to it, what was the use of Hatfield's acceptance ? In 
the course of business between Edward Harrison and Hatfield 
& Scott prior to this date, any drafts drawn by Harrison on 
Hatfield & Scott Co., Ltd., to which bills of lading were at- 
tached, were paid by Hatfield & Scott at Montreal on presenta- 
tion, and if this particular draft was to be held until a bill of 
lading was attached to it in order to secure payment, all that 
took place between Hatfield and the bank's agent when this 
draft was in part prepared and accepted by Hatfield amounts 
to nothing whatever, and has no effect. 

"If, as stated by Hatfield, the bank manager had waited 
tmtil Harrison had brought in a bill of lading to be attached 
to the draft accepted by Hatfield before sending it forward for 
payment, the bank would have lost the benefit of the bill of 
lading as security for the payment of the draft. Section 90 of 
the Bank Act provides that the bank shall not acquire or hold 
any warehouse receipt or bill of lading or any such security as 
aforesaid to secure the payment of any bill, note, draft or 
liability unless such bill, note, etc., is negotiated or contracted 
at the time of the acquisition thereof by the bank. If the 
manager of the bank had acted as Hatfield claims he agreed 
to do, the bank would have lost the security of the bill of lad- 
ing as the draft accepted by Hatfield was negotiated or dis- 
counted on December 10th, at which time admittedly there was 
no bill of lading available to be attached to the draft and to 
secure its pajTnent. It is unlikely that the manager had alto- 
gether overlooked the provisions of section 90 of the Bank 
Act in connection w'ith this transaction. 

"I think that the defendant Hatfield is liable by reason of 
his representation that he had authority to accept the draft 
sued upon as agent for Hatfield & Scott Co., Ltd., and that by 
his conduct he warranted that he had such authority. Though 
Hatfield does not seem to have been aware of the fact at the 



time, there was no such corporation as Hatfield & Scott Co., 
Ltd., in existence on the date when the draft sued on was ac- 
cepted, but the ignorance of Hatfield on this point does not 
affect his liability." 

Lazard Bros. vs. Union Bank 

The next case dealing with the Bank Act was that of 
Lazard Bros. vs. Union Bank of Canada, which came under 
section 77 of the act. The facts of the case were that the 
late E. E. A. Duvei'net, having arranged with Lazai'd Bros, 
of London for a loan, promised to deposit with the Union 
Trust Company, as trustee for Lazard Bros., 500 shares of the 
Union Bank and 500 shares of the Union Trust Company as 
security. The dispute arose over the ownership of 200 shares 
of the Union Bank which were held in trust for Lazard Bros, 
by means of a stock certificate. The bank claimed ownership 
of the shares in question because of a debt owing it by Duver- 
net, and because of section 77 of the Bank Act, which provides: 
"The bank shall have a privileged lien for any debt or liability 
to the bank on the shares of its own capital stock and on any 
unpaid dividends of the debtor or person liable, and may de- 
cline to allow any transfer of the shares of such debtor or per- 
son until the debt is paid." 

The bank officials knew ill the details of the loan by 
Lazard Bros, and the security on which the loan was made. 
Knowing these facts, and knowing of their lien on Duvemet's 
shares, which Duvernet was pledging as his owm absolutely, 
the bank should have notified Lazard Bros. 

His Lordship in deciding the case said in part: "Before 
discussing the law I would point out that the certificate depos- 
ited with the Union Trust Company afforded no protection to 
the plaintiffs. It in no way represented the shares. It was a 
mere statement that at its date the shares were standing in 
the name of Duvernet. The power of attorney would enable 
the holder to make a transfer on the books of the bank, but 
there was nothing to prevent Duvernet from dealing with the 
stock in the meantime. The production or surrender of the 
certificate was not necessary to the transfer of the stock and 
there was nothing to prevent the issue of any number of cer- 
tificates, each stating the same fact, that Duvemet's name 
appeared upon the register as the holder of so many shares. 

"In this case I have no hesitation in finding that there was 
a duty upon the part of the bank to disclose its lien, and that 
failure to disclose was fraudulent in the sense that it was in- 
tended to allow the plaintiffs to assume the liability incident 
to the acceptance of the bills without the security they thought 
they had." 



LETTERS OF CREDIT AN INDISPENSABLE 
CONVENIENCE 



Previous to 1917, letters of credit issued by Canadian 
banks were not used very extensively because the conveni- 
ence afforded was not sufficient. To-day, however, this fa- 
cility is found to be practically indispensable by the im- 
porting Canadian and the business man travelling abroad. 
Letters of credit issued by Canadian banks are recognized 
in practically all the important centres of the world, because 
of the banks' extensive connections. It will be seen from 
the following figures, which have been taken from the 
monthly bank statement under the heading of "liabilities of 
customers under letters of credit," how the use of this fa- 
cility has grown. The figures also reflex, to some extent, the 
development of our foreign trade: — 

1917. 1918. 1919. 1920- 

January $ 9.377,150 $20,781,228 $33,693,463 $47,967,989 

February 9,888,080 20,124.613 31,201,120 46,900.376 

March 10,954,633 20,646.226 28,928,930 42,939,486 

April 10,623,216 21.563,672 22.079,366 48.794,655 

May 12,665.722 17,665,401 20,669,010 50,828,266 

June 15,601,123 21,652,323 23,811,176 46,470,631 

July 16,260,225 23,428,320 28.746,346 43.261,195 

August 16.990,296 21.244,247 30,638,645 42,754,911 

September 17.258,539 21,451,481 34,752.308 43,589,081 

October 17,320,360 29,318,113 42,787,234 47.635.099 

November 21,886,093 32,259.631 50,485,107 

December 21,981,345 33,670,067 61,188,148 



Januarv 7, 1921 



THE MONETARY TIMES 



65 



llllllllllllllllll 




THE BANK OF NOVA SCOTIA 



ESTABLISHED 1832 



CAPITAL PAID UP 
RESERVE FUND 
TOTAL ASSETS 



$ 9,700,000 

18,000,000 

240,000,000 



1 Head Office 



HALIFAX, N.S. m 



GENERAL MANAGER'S OFFICE 

H. A. RICHARDSON, 



TORONTO, ONT. 

General Manager. 



44 in Nova Scotia 

12 in Prince Edward Island 



BRANCHES IN CANADA 

129 in Ontario 

42 in New Brunswick 



22 in Quebec 

35 in ^Vestern Provinces 



CUBA . 
PORTO RICO 
JAMAICA . 



NEWFOUNDLAND 

St. John's and 25 other points 



WEST INDIES 



Havana 

Fajardo, Ponce, San Juan 

Kingston and 10 other points 



DOMINICAN REPUBLIC . Santo Domingo and San Pedro de Macoris 



UNITED STATES 



3oston 



Ch 



icago 



New York (Agency) 



GREAT BRITAIN 

LONDON, ENGLAND ... 55 Old Broad Street, E.C. 2. 

Correspondents 

GREAT BRITAIN— London Joint City & Midland Bank Limited; Royal Bank of Scotland. 

FRANCE -Credit Lyonnais. 

UNITED STATES— Bank of New York, N.B.A., New York; National Bank of Commerce, New 
'i'ork ; Merchants National Bank, Boston ; First National Bank, Chicago ; Fourth Street National Bank, 
Philadelphia; Citizens National Bank, Baltimore; American National Bank, San Francisco; First 
National Bank, Minneapolis ; First National Bank, Seattle. 



Illlllil 



THE MONETARY TIMES 



Volume 66 



Trade Situation Explains Exchange Dislocation 

War Time Trade and Currency Difficulties Have Thrown Settlement Mactiinery 
Out of Gear — Foreign Exchange Dealings in Canada, and Methods of Calculating- 
Different Rates — Bank is the Dealer, Fixing Rate to Adjust Supply and Demand 

By A. B. BARKER 



MONEY has been defined as a commodity which mankind 
accepts in exchange for other commodities and services. 
Many substances have been used as money, but gold and 
silver have gradually supplanted all other commodities owing 
to their peculiar adaptability for use as media of exchange, 
and to-day gold is accepted by the nations of the world as 
the basic measure of monetary value. 

The early coins were simply lumps of rhetal, with a mark 
certifying the weight of metal stamped on them by a ham- 
mer, and this is all that the coins of to-day indicate. In 
coining money no government guarantees the value, but 
merely the weight and fineness of the metal in the coin. 
The government declares what shall be legal tender in the 
payment of debts within its jurisdiction, but the real value 
and standing of the coins depend entirely on the willingness 
of the inhabitants to accept them in exchange for goods 
and services. 

Gold being the common standard, and silver used only in 
the subsidiary coinage, all prices are quoted in turns by gold. 

Goods Exchanged for Goods 

Trade, whether by ■ barter, as in primitive times, or 
through the present three-cornered system by the inter- 
mediary of money or credit,- consists in the exchange of goods 
for other goods. The use of money as an intermediary 
merely facilitates the exchange by permitting the division 
into smaller and more convenient units. One of the argu- 
ments often heard is that by dealing at home the money is 
"saved," but money is not the one thing for which trade is 
carried on. Men sell commodities to dealers for money, and 
this money is turned over for the puchase of other goods; but 
in the final analysis it all comes back to the exchange of 
goods for other goods, or for services. Money, to be of 
use, must be used as it is intended, a measure of value and 
a medium of exchange. As Ben Johnson once said: "Money, 
to be sure, of itself is of no use, for its only use is to part 
with it." 

As trade increased, it was found that these exchanges 
could more easily be arranged by means of credits, which 
would, more or less, cancel each other, only the final balances 
being settled in gold, and the degree of civilization to which 
a country has attained may be largely measured by the per- 
fection of its machinery for handling these credits. 

These credits are exchange, and exchange, domestic or 
foreign, is in reality a commodity in the same sense that 
poi'k, or molasses, are commodities. Like them, it is a manu- 
factured product, may be bought and sold on the market, and 
is subject to the same law of supply and demand. 

Exchange is Result of Trade 

Exchange is produced by trade in commodities. If a 
shoe manufacturer in Quebec ships his wares to a whole- 
saler in Toronto, a debt is created in his favor from the 
wholesaler, and this debt is exchange, domestic exchange, as 
both parties live in the same country. This debt is payable 
in the legal tender of Canada. Until the debt is paid it 
belongs to the manufacturer, and he may sell it, or dispose 
of it as he will. The usual course is for the manufacturer 
to draw a draft for the amount of the debt on the Toronto 
wholesaler, and discount it with his bank in Quebec — i.e., he 
.sells the draft to the bank, which then becomes the owner 
of so much Toronto exchange, or funds. These funds, or 
exchange, the bank in turn sells to some one who has a debt 
to pay in Toronto, or it may hold the amount iri Toronto, 
and lend it to a customer of its branch in that city. 



Foreign exchange is produced through the sale of com- 
modities by an inhabitant of one country to an inhabitant of 
another country. Countries do not trade with countries as 
such. Trade is entirely between individuals. Foreign ex- 
change is slightly more complicated than the domestic ex- 
change, in that the settlement must be made in gold. The 
principles are, however, the same. A Canadian exporter 
ships grain to Liverpool, the result is sterling exchange — i.e., 
the right to money in Britain, which is made available 
through the banking systems of Great Britain and Canada, 
to discharge a debt owing by a Canadian firm importing 
British goods, the transfers being made by bills of exchange. 
The sum of similar transactions between two countries may 
result in a balance due from one to another, and this differ- 
ence is termed the balance of trade. It is this balance which 
determines the rate of exchange. Theoretically this difference 
is payable in gold, and the cost of shipping gold either way 
will determine the premium, or discount, which the debtor 
will pay, or the creditor accept, for a bill of exchange, in 
preference to taking the trouble to ship the actual bullion. 

There are other ways of avoiding the shipment of gold 
between countries, the sale of securities and loans being the 
chief methods. 

The bank's relation to exchange is that of a merchant. 
It buys and sells exchange in exactly the same way a grocer 
deals in his wares. It buys, as be does, at wholesale prices, 
and sells at retail, and its profit depends on the voldme of 
its turnover. 

Pre-War Quotationf, Near Par 

In pre-war days, when foreign trade was on a normal 
basis, the exchanges between countries fluctuated within nar- 
row limits, and between Canada and the United States the 
range varied in large transactions between 1/10 of 1 per 
cent, above or below par, and for this reason the public gen- 
ei'ally ceased to look on New York funds as foreign exchange. 
One result was that the charge made, when a cheque on New 
Yoi'k was negotiated, came to be looked on as a commission, 
and now that these funds rule at a high premium, many still 
persist in regarding it as a commission, or charge for ser- 
vice. One great reason for the current misunderstanding in 
the case of New York exchange is that the unit of value — 
the dollar — is the same in both countries, as is also the 
statutory gold contents of 25.8 grains 9/10 fine. 

In normal times, thanks to our connection with Great 
Britain, both politically and commercially, we were able to 
obtain sufficient gold, or, what answered the purpose as well, 
sterling exchange, to hold our funds at par, or close to it, 
in New York. Now, however, owing to the change in the 
financial relations between Great Britain and the United 
States, the latter country becoming a creditor instead of a 
debtor nation, our former source of supply has been cut off, 
-for the present at least, and we have to rely on our own 
resources. The result has been that the adverse balance in 
favor of the United States has had its natural effect, and 
our funds are at a discount in that country. 

New York Rate is Important 

The current rate for New York funds touches Canadian 
economic life very closely, as, owing to our geographical 
position and habits of trade, we are dependent on that centre 
in all our exchange dealings with Europe, as well as those 
with China and Japan. Before the war we puixhased chiefly 
from the United States, and our chief exports were to Great 
Britain, buying from the United States much more than we 



January 7, 1921 THE MONETARY TIMES 



'^IIIIIMinilMIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIHIIIlMlilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll^ 

I IMPERIAL BANK I 

I OF CANADA | 

I Capital Paid Up $7,000,000 I 

I Reserve Fund $7,500,000 I 

i 214 Branches in Canada. E 

E The Imperial Bank of Canada is a highly specialized organization, providing every = 

E modern banking convenience at each of its 214 branches in the Dominion. = 

= Since its establishment, over forty-four j'ears ago, this institution has enlarged its E 

= capacities to meet the growing demands following Canada's steady development, and E 

= takes pride in the efficiencj' of its service. ^ 

E Whether it be in connection with Collections of Drafts, Money Orders, Letters of E 

E Credit, Government and Municipal Securities, a Savings Account or a Safety Deposit = 

E Box, the special requirement of each individual client receives prompt and accurate = 

E fulfilment. E 

E Our Foreign Affiliations. E 



While confining the sphere of our direct activities within the borders of the 
Dominion, we are affiliated with strong banks abroad. Through their co-operation, 
we are enabled to offer a complete world-wide financial service. 

Agents in Great Britain Agents in United States 



E England — New York — • 

= Lloyd's Bank Limited, London, and The Bank of the Manhattan Company ; 

I branches. Chicago— ; 

E First National Bank \ 

I Scotland— Buffalo— j 

E The Commercial Bank of Scotland, The Marine Trust Co. i 

= Edinburgh, and Branches. Detroit ■ 

E First and Old Detroit National Bank : 

I Ireland— ' San Francisco— j 

E The Bank of Ireland, Dublin, and Wells-Fargo Nevada National Bank, i 

E branches. and in all other principal centres. '■ 

E Agents in France i 

E Lloyd's Bank (France) and the National Provincial Bank (France) Limited. • 

I PELEG HOWLAND, President. W. MOFFAT, General Manager. I 

I HEAD OFFICE - TORONTO | 

?iiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 



68 



THE MONETARY TIMES 



Volume 66 



sold, and selling- to Great Britain much more than we pur- 
chased from her. As the United States was then indebted 
to Great Britain, we were able to transfer our claims against 
Great Britain to the United States by selling sterling ex- 
change in New York, and with the funds so obtained, settling 
our debts in the United States. This kept the balances be- 
tween us normal, and the question of a premium or a dis- 
count on our transactions with New York was of compara- 
tively little moment. 

Now, however, this is all changed. We still rely on the 
United States to furnish the bulk of our import require- 
ments, but are unable to settle as formerly by selling ster- 
ling in New York, neither can we ship gold, which is the only 
accepted mediurn of settlement of balances between nations. 
This for the good and sufficient reason that we have not the 
gold to ship. The result is that there is competition in 
Canada for New York funds, which must be purchased here 
with Canadian money, and this competition has inceased the 
price of the commodity, so that, at one time, the right to 
receive $100 in New York, in funds current there, was worth 
$117 in funds current in Canada. At the present time (Oc- 
tober, 1920), the premium is 11 per cent. 

Premium Goes to Canadian Sellers 

The essential point to be kept in mind here is that 
these funds are not purchased from the United States dealer, 
but from a Canadian who owns the funds. It is he who gets 
the premium from the Canadian purchaser. All the American 
receives is the face amount of the invoice. For instance, a 
Canadian dealer buys American goods to the value of $1,000 
in the United States. The cost to him in Canada, with New 
York funds at a premium of 11 per cent, will be $1,110, 
but all the American seller receives is $1,000. He gets no 
benefit from the premium, but the reverse, as it interferes 
with his trade, making it harder for him to make the sale. 
As our market for foreign exchange is in New York, this 
premium must be allowed for in all transactions involving 
payments abroad. In its final analysis, when we have a pay- 
ment of, say, £1,000 to make in London, the transaction 
simply is an exchange of commodities. Suppose sterling in 
New York is quoted at 3.45 and New York funds here at 
11 per cent, premium, the rate for sterling here would be 
3.83. The Canadian would purchase, with $3,830, the right 
to receive $3,450 in New York, and with this would buy the 
right to receive £1,000 in London. Of course the transaction 
would go through the Canadian bank, and the £1,000 draft 
would be drawn on its London correspondent, but the bank 
would have to buy sterling in New York to enable it to accom- 
modate its customer. 

For many years the Canadian system of quoting ster- 
ling obscured this. Prior to confederation, the legal par of 
exchange was at the rate of $4.44 4/9 to the pound sterling, 
and when this ratio was changed to $4.86%, as it is to-day, 
it was found that the new par was 9V2 per cent, premium 
on the former. For some reason unknown at the present 
time, the system of quoting sterling at a rate of premium 
per cent, advance %r\ the rate of $4.44 4/9 was adopted, and, 
in spite of its absurdity, resisted all efforts to change it. 
When the war broke out the exchange market became de- 
moralized, and the quotations outran the exchange tables in 
use, so that dealers were forced to adopt a commonsense 
method and quote in dollars and cents. In other words, they 
had to mark the prices of their wares in plain figures. 

Normal Adjustment Was Simple 

In normal times, the adjustment of rates of exchange be- 
tween countries was a comparatively easy matter, and the 
course of exchange could be foretold, according to the season, 
with fair accuracy, but since the war the exchange markets 
have been thrown out of gear like everything else. 

The balances between countries have become so huge that 
settlement by shipment of gold is utterly impossible, and 
the systems of adjustment formerly used quite inadequate. 
Plans are being- made for the creation of large credits in the 
United States, which is at present practically the only 



creditor nation, and when these are effective the abnormal 
exchange situation will correct itself in time. 

Effect on Customs Rates 

When foreign exchange is at a heavy premium, it oper- 
ates as an increase in the customs tariff on imports. Ameri- 
can exchange at a premium of 11 per cent., is equal to an 
increase of 11 per cent, in the Canadian customs tariff on 
American goods, and conversely sterling exchange, now 
quoted at 3.84 in Canada, or a discount of 21 per cent., is 
equal to a reduction in the Canadian tariff on British goods 
to this extent. Until recently this was nullified by the cus- 
toms authorities calculating the import duty on the par of 
exchange, no matter what the depreciation of the foreign 
currency. This absurdity was at last realized and partially 
corrected, so far as importations from any country other 
than the United States is concerned. American invoices are 
valued at par and duty collected on that valuation, though 
in reality the actual value here is greater by the amount of 
the current premium on New York funds. 

Much has been said as to the prospects of foreign trade 
with Europe after the war, and it will be well to realize the 
effect of exchange on the export of goods from Canada and 
the United States, as the discount on foreign funds here will 
naturally increase the price which the foreigner must pay 
in his own currency for Canadian goods. Canadian exports 
to Europe will, for this reason, be materially increased in 
price to the foreign consumer. For instance, Ontario winter 
wheat, worth, say, $2 at shipping points in Canada, which in 
pre-war days would cost the British buyer 8s. IV^d. a bushel, 
will, with sterling at a discount of 21 per cent., cost him 
10s. 3d. a bushel. Sterling at a discount here means that in 
Great Britain Canadian funds are at a premium and this 
premium will have exactly the same effect on the prices of 
Canadian goods in Britain that the premium on New York 
funds in Canada has on the price of American goods here. 
There are countries where British funds are at a premium or 
at par, and this will impel the British consumer to buy from 
those countries rather than from Canada. 

Trade follows the line of least resistance always. The 
old slogan that "trade followed the flag" was true, un- 
doubtedly, in normal times, when the only barriers were 
those deliberately raised by the various countries with the 
avowed intention of turning trade into certain channels. The 
war has, however, brought about entirely new conditions, 
as evidenced by abnormal exchange rates everywhere, and 
trade at present is adjusting itself to meet them. 

New York Controls Canadian Rate 

The main dealings of Canadians in exchange are with 
the United States, Great Britain and France, and on the 
Pacific Coast China and Japan, and with all of these we are 
dependent on the New York exchange market for rates, as 
that city is the exchange centre for this continent. Trade 
in exchange, as in other commodities, follows the line of least 
resistance, and, as New York is the market where exchange 
can be most readily bought and sold, transactions naturally 
are handled there. It is all a question of supply and demand. 
The trade in exchange is of mutual benefit, just as is trade 
in other commodities, and unless there is a mutual profit 
there would be no trading. The essential part of trade is 
that there shall be mutual consent. 

Methods of Calculation 

The methods of calculation in exchange are simple, if 
the commodity idea is kept in mind, and the following ex- 
amples will make it clear: — 

Sterling Exchange 

The par of sterling exchange is $4.86% to the pound. 
At present prices, the pound is quoted at 3.45. The Canadian 
rate will be the same, plus or minus the premium, or dis- 
count, on New York funds in Canada. The premium is, say, 
11. per cent., and the Canadian rate for sterling, therefore, 
would be 3.45 plus 11. per cent, of itself, 3.45 + .37.95. or 



January 7, 1921 



THE MONETARY TIMES 



American Baniv Note Company 



17!).-, 



CA >• A DI AX INC* >K I 'OK A TTON 
1S!>7 




HEAD office; AND WORKS 



224 WELLINGTON STREET - - OTTAWA 

FIREPROOF BUILDINGS 

BRANCH OFFICES 

TORONTO MONTREAL WINNIPEG 

STEEL PLATE ENGRAVERS AND PRINTERS 

CONTRACTORS TO THE GOVERNMENT OF CANADA FOR DOMINION NOTES, 
POSTAGE AND REVENUE STAMPS. ENGflAVERS OF BANK NOTES FOR 
THE CHARTERED BANKS OF CANADA. RAILVifAY, CORPORATION AND 
COMPANY BONDS, MUNICIPAL DEBENTURES, STOCK CERTIFICATES, 
LETTERS OF CREDIT, CHEQUES, DRAFTS AND OTHER SECURITIES. 



WORK ACCEPTABLE ON ALL STOCK EXCHANGES. 



70 



THE MONETARY TIMES 



Volume 66 



0.8295. These calculations are usually based on £100 as a 
matter of convenience in the ai-ithmetical work, thus: — 

New York rate per £100 345. 

Fremium on New York funds in Canada ll.'/t 37.95 

382.95 
£100 in Canada would be worth $382.95. The quotation is 
always made on the single pound, therefore the quotation 
would be .$3.8295 per pound. 

The bulk of stei-ling transactions are by cable, or by 
demand, or 60 days' sight bills, and in arriving at the rates 
lor these interest on the demand rate is allowed for, and 
for bills other than demand or three days' sight and under, 
the stamp tax of Is. per £100, or fraction thereof, must be 
calculated. In figuring the interest, the calculation is made 
on the demand rate, with three days of grace on all items 
drawn at any time over demand or sight. The year is taken 
at 365 days. 
Example: 

If demand cheque rate is 3.45, what would be the rate 
for 60 days' sight. New York funds in Canada, 11. per cent, 
premium. 

Premium on New York funds in Canada 11. ^r 37.95 

New York demand cheque rate 345. 

Deduct: 382.95 

Stamp tax of Is. per pound. This is taken 

as 1 20 of I'f 191 

63 days' interest on 382.95 at the open mar- 
ket rate in London, not Bank of England 

rate, say 6% 

382.95 X 6 X 63 3.991 



365 



4.182 



Canadian rate, 3.7877. 378.768 

This would be the basic rate, or let us say, the wholesale 
price at which large blocks could be bought and sold be- 
tween banks. If a bank wanted to make, say, M of 1 per 
cent, on the transaction, this would be allowed for before the 
rate was quoted to the customer, and would work out as 
follows: — 

Premium 37.95 

New York demand rate 345. 

Deduct: 382.95 

Stamp 1/20 191 

Interest 63 days at 6% 3.991 

Vi profit 957 

■ 5.149 

Canadian rate, 3.778. 377.801 

If the bank were selling the bills, the Vi per cent, profit 
would be added to the rate as follows: — 

Canadian basic demand rate 382.95 

Stamps 191 

Interest 3.991 

4.182 

H profit 957 

3.225 



Canadian rate, 3.797. 379.725 

In normal times, rates for cables are simply the rates 
for demand cheques, plus the interest on the estimated time 
which would elapse before a remittance by demand draft 
could reach London, this depending, of course, on the closing 
and sailing of mails. Ten days was the time usually allotted 
in such cases. 
Example : 

New York demand cheque rate 346. 

Premium on New York funds 11.' > 38.06 

384.06 



Add: 

10 days' interest at open market rate in 
London, say 69c 



Canadian cable rate, 3.847. 



384.70 



French Exchange 

French exchange, or, as it is often termed, franc ex- 
change, was formerly in New York and is still in London 
quoted at so many francs and centimes per foreign unit, 
pound or dollar. The efi'ect of this was that as the quota- 
tion in francs rose the lower became the value of the franc. 
At par the rate was 5.20 — i.e., 5 francs 20 centimes -to the 
dollar. At this rate the franc was worth 19.3 cents. At 
present (October, 1920) it is worth about 6V2 cents. New York 
quotations until very recently were in francs per dollar, but 
now are given, like all other exchange in that market, in 
dollars and cents per foreign unit. It has been suggested 
that the basis of quotation shall be 100 francs, and this may 
possibly be adopted. 

In Canada banks have usually quoted in cents per franc, 
owing to the question of premium or discount on New York 
funds as the premium or discount must be on the amount 
of dollars to be paid, not on the francs purchased. 

The method of calculating interest on franc exchange 
diflrers from sterling in that there are 40 days of grace, and 
the year is taken at 360 days as in New York. Formerly, 
the interest was calculated on the par of exchange, 5.20 
francs to the dollar, or 19.3 cents per franc, but now, as in 
sterling, intei'est is calculated on the active quotation for 
demand cheques. 

The stamp duty on cheques is 10 centimes each, if pay- 
able in the town where they are drawn, otherwise 20 cen- 
times. At par this would' be 2 and 4 cents, respectively, 
as the franc contains 100 centimes. The stamp duty on 
cheques is not considered in exchange calculations. On bills 
of exchange the stamp duty is 5 centimes per 100 francs, or 
1/20 of 1 per cent. For quotation purposes, this is reckoned 
on the quoted rate. 

For instance, under the old system of francs per dollar, 
the 60-day rate would be worked out as follows: — 

Demand cheque rate 1540. 

Add interest on 1208 60 days at 

Bank of France rate, say, 7% ■ ■ 17.98 

Stamp, 1/20 77 

18.75 



1558.75 
The rate, therefore, would be 15.58% francs per dollar, 

the calculations being made on the equivalent of $100 for 

the sake of convenience. 

In this case the interest and stamps would be added 

in order to reduce the price, as a 60-day bill would be worth 

less than a demand cheque by the amount of interest and 

stamps. 

Under the present method the rate for 60-day bills is 

found as follows: — 

Demand cheque rate 650. 

Deduct: 

Interest 60 days at 1'', 7.583 

Stamps, 1/20 375 

7.958 

642.04 
The rate would be 6.42 cents per franc. 

To find the Canadian rate the premium on New York 
funds would be added to the New York price, just ;'..• it is 
with sterling. At the present time, however, the question 
of 60 and 90 day rates for exchange of any kind is largely 
academic, as, owing to the uncertainty of the exchange mar- 
kets, practically all remittances abroad are by cable or de- 
mand drafts. 



i 



January 7. 1921 



THE MONETARY TIMER 




Head Office Building, Montreal 

BOARD OF DIRECTORS: 

W. MOLSON MACPHERSON. 
President 

S. H. EWING. Vice-President 

W. M. BIRKS. W. A. BLACK 

J. M. MclNTYRE F. W. MOLSON 

JOHN W. ROSS 

EDWARD C. PRATT 

General Manager 



THE 

MOLSONS 

BANK 

INCORPORATED 1855 
Capital Paid Up $4,000,000 Reserve Fund $5,000,000 



OVER 130 BRANCHES 
IN CANADA 



A General Banking 
Business Transacted 



Savings Bank Depart- 
ments at all Branches 



The Standard Bank 

OF CANADA 

Established 1873 

Capital Authorized .... $ 5,000,000.00 

Capital Paid-up 3,500,000.00 

Reserve Fund and Undivided Profits 4,860.537.09 

Total Assets . . . over 95,000,000.00 

179 BRANCHES THROUGHOUT THE DOMINION 
HEAD OFFICE 

15 King Street West 
TORONTO 



C. H. EASSON. 

General Ma 



J. S. LOUDON. 

Asst. Gen. Manage 



Buy and Sell Foreign Exchange and Cable Transfers. 

Issue Commercial and Travellers" Credits and Cheques, ne- 
gotiable in all countries. 

Make Collections in all the Provinces, United States, Europe 
and the Orient at most favorable rates. 

Assure prompt and efficient service. 

Savings Bank Department at all Branches 

Correspondence Invited 




THE MONETARY TIMES 



Volume 66 



Publicity Methods in the Banking Field 

Greater Attention to Advertising Reflects Keener Competition Among Banks — 
Commercial Methods Utilized — Topical Booklets, Monthly Letters, House 
Organs and Street Car Publicity Now Supplement Advertising in Press 

By J. H. HODGINS. 

Manager, Statistical Department, Union Bank of Canada, Toronto 



MEASURABLE progress has been made since the war in 
the development of bank publicity in this country along 
more modern lines. In the evolution of newspaper effort, and 
more specifically publicity and advertising, there is probably 
no more interesting phase than that which concerns the atti- 
tude of Canadian bankers. 

For so long our bankers have been regarded as ultra-con- 
servatives; for so long a bank "card" represented the consum- 
mation of the banker's advertising expression. Our bankers 
have been among the last of the advertisers seeking extension 
of business to try out the effectiveness of the "human interest" 
appeal. Tlie change has come in more or less subtle fashion, 
but sufficient evidence of real "pep" has already been fur- 
nished by Canadian bank advertisements and by various inter- 
esting publicity-getting methods of the last year to indicate 
that our bankers have followed the trend of the times. 

AA'ar Effort Pointed the Way 

The greatest achievement of modern publicity has been 
the development and propagation of ideas. Out of the neces- 
sities of the war period came the need for vast public borrow- 
ing by governments; thrift and production had to be engen- 
dered. How was all this accomplished? By propaganda 
advertising. We have but to look back to be more fully im- 
pressed with the gigantic effort that was pushed through to 
previously undreamed-of successes through the sheer force of 
publicity and advertising. As an immediate result all adver- 
tising effort has taken on an added dignity, an increased 
value. 

It has been demonstrated that bank advertising may 
remain dignified and yet have a "punch" to it. Similarly, no 
individual, however grand, sacrifices his "dignity" because he 
• smiles. You are not attracted by a gloomy advertisement but 
rather to the one that i-adiates cheer. Aftei- all, why should a 
bank advertisement be more stereotyped in its form than any 
form of advertisement? 

Canada's war loan experiences were the same as Eng- 
land's. Our finance minister had to "sacrifice dignity" and 
get dovm to the level of the masses through the popular 
phases of publicity. A million dollars in cold figures had first 
to be "interpreted" in tei-ms of bullets before the man on the 
street caught the real significance of the country's great 
need. 

Linked With Agriculture 

It is given to our banks in their advertising to be con- 
structive, nationally. A great deal may be accomplished to- 
ward further driving home the truths of national propaganda, 
as witnesseth the campaigns carried on by many American 
financial institutions during the war period, when thrift was 
paramount, when food conservation was vital. Here in Can- 
ada — ■ where the bond between banker and farmer must neces- 
sarily be intimate because the country's basic industry is that 
of the soil — our banks may accomplish much from the agri- 
cultural viewpoint. On more pi-ogressive lines the banks' cam- 
paigns may be directed toward greater production where lower 
yields threaten, be it in wheat crop or cattle herds. Our 
banks actually have furnished the financial energy necessai-y 
in the growth, transportation and marketing of Canada's vast 
crops, but our bankers are only now awakening to the need 
for educating the agriculturists of Canada to a fuller appreci- 
ation of the gigantic task which the banks perform for the 
Canadian farmer from year to year. 

Likewise it is given to the banks to direct public thought 
along the lines of constructive spending. 



Bankers are coming to regard advertising and publicity 
along broad lines. More recent bank advertising in this coun- 
try has done much to broaden the public's vision of interna- 
tional trade, a factor to which the average Canadian directed 
but scant thought before the pressure of war production ad- 
vanced our industrial plant to its present proportions — - and 
has thus enlightened the average citizen as to the future. 

Undeniably banking is becoming more and more competi- 
tive in Canada. There are only eighteen chartered banking 
institutions, but these eighteen banks have some 4,800 branches 
thi'oughout the Dominion, and each and every branch manager 
knows full well the keen race for business which he must run 
against competitive managers. The I'esult is a very consider- 
ably stimulated publicity programme. 

New York Agencies Take Lead 

Probably some of the most progressive methods of pub- 
licity which our bankers have employed have been undertaken 
by the New York agencies of Canadian banks in their effort 
to make Canada better known throughout the United States. 
The Union Bank of Canada early initiated an educational cam- 
paign, through the issuance of two booklets, "Canada and Its 
Potentialities," and a little later, "Trade Acceptances: Cana- 
dian Practise," which was a treatise timed when the trade 
acceptance was being introduced into the American banking 
system. This subtle form of Canadian propaganda was fur- 
ther supplemented by advertisements designed to sti-ess Can- 
ada's rich resources. Closely allied with this publicity, direct- 
ly in the interests of Canada and indirectly, of course, in the 
interests of the advertising bank, was that undertaken by the 
Canadian Bank of Commerce and by the Dominion Bank, 
which further served to draw attention by picture and by 
word message to our provinces and our cities. The Royal 
Bank of Canada during the year issued for New York distri- 
bution a booklet of Canadian statistics, and the Bank of Mont- 
real, in a pamphlet, informed the American investing public 
regarding Canada's war loans. 

The Topical Booklet 

The topical booklet has come to be a dominant factor in 
financial advertising, and our bankers liave been quick to ric- 
ognize it as a potential direct medium. The foremost banking 
institutions of the United States within the last few years 
have made extensive use of the booklet as part of their pub- 
licity programmes, and their continued efforts in this direction 
indicate clearly their satisfaction. 

More recently the Union Bank of Canada, as part of a 
campaign to attract American manufacturers to the Dominion 
has brought out a booklet, "A Canadian Plant — Why?" the 
title of which is significant of its plea. The vagaries of the 
foreign exchange situation have recently been clearly ex- 
plained to the layman by the Canadian Bank of Commerce's 
iDOoklet and by "Protecting Your Canadian Customer," a book- 
let of the New York agency of the Union Bank of Canada 
which was primarily ^\^■itten for the education of the Ameri- 
can exporter to Canada. The Bank of Montreal has issued 
"The British West Indies and British Guiana," which, after 
all, is propaganda in attractive form, and of pertinent interest 
to Canadian business men was the Union Bank of Canada's 
booklet upon "The Canadian Stamp Tax," meeting immedi- 
ately the needs of a like situation created by the income taxes 
to which several Canadian financial institutions catered with 
carefully indexed booklets citing the law for the average 
reader. In publishing these and similar booklets our bankers 
unquestionably are furthering the public service of our banks 



Januaiy 



THE MONETARY TIMES 



(Eompaiig of Qlanaba, HtmttPii 

HAMILTON, ONTARIO 



Paid-Up Capital, $500,000 



Reserve, $125,000 



Executor, Trustee 
Administrator, Etc. 

The Company will act as Agent for Executors 

or Trustees who desire to be relieved 

of the Management of Estates. 



All Business under direct supervision 
of the Executive Committee 



BOARD OF DIRECTORS : 

Cyrus A. Birge, President 

Col. H. L. Roberts and James Turnbull, 

Vice-Presidents 

T. C. Haslett, K.C, Chairman Executive Committee 

C. C. Dalton, A. E. Dyment, J. J. Greene, 

Sir Jolin S. Hendrie, K.C.M.G., J. F. Kavanagh, 

Col. John r. McLaren, Lt.-Col. W. H. Merritt, 

Maj.-Gen. Hon. S. C. Mewburn, Stanley Mills, 

C. S. Wilcox, W. A. Wood. 

S. C. Macdonald, Manager 



A Trust Company organized and equipped 
for service to you and your family. 

Incorporated by Special Act of Parliament 
ol the Dominion of Canada. 

Auihorize^t to act in all Trust Capacities. 

Prudential Trust Company 

LIMITED 

Capital Stock Authorized, $1,500,000 

Subscribed, $1,000,000 Paid up, $609,611 

Reserve Account, $100,464.27 

Real -Estate & Insurance Departments 

B. HAL BROWN, President and General Manager 
J. P. SPEEDIVIAN, Vice-President 



Head Office 



MONTREAL 



Toronto Branch— Union Bank Building 



Cor. King and Bay Streets. 
Other Branches — 

Winnipeg Edmonton 

Regina Vancouver 

London, England 



St. John 
Halifax 



THE SASKATCHEWAN MORTGAGE AND 
TRUST CORPORATION, LIMITED 



Paid-Up Capital and Reserve - 



$950,000 



The oldest and largest Trust Company in Saskatchewan. Real Property Managed. 

Estates Administered. Acts as Agent lor Executors and Trustees who 

desire to be relieved of the management of Estates. 

Money invested for Clients on Agency or Guaranteed Plan. Acts as Trustee under 

Bond Issue. 



INCORPORATED BY SPECIAL ACT. A.D. 1909 

Executor Administrator Liquidator Trustee Guardian Etc. 

DIRECTORS : 

A. E. WHITMORE. Vice-President 
A. W. MacGREGOR S. C. BURTON 

HON. A. P. McNAB R. M. JOHNSTON 

A. G. RAWLINSON 
R. A. KIRKWOOD, Secretary 



J. F. BOLE, President 

F. N. DARKE 
MAJOR F. J. JAMES 
JOHN F. REID 

C. V. SMITH, Manager 



102 Darke Block - Regina, Saskatchewan 



74 



THE MONETARY TIMES 



Volume 66 



■ — in an educational way — while seizing the opportunity for 
publicity of the kind that makes a real appeal to the public. 

The Illustrated Advertisement 

The illustrated bank advertisement is probably the latest 
development in this country. As far as I am aware, the Union 
Hank of Canada's "Park-Union" series was the first among 
Canadian bank advertisements to be seriously treated by an 
artist. These advertisements, primarily designed to empha- 
size the extended international services offered through this 
unique organization, were made attractive with "local atmos- 
phere." As an example: The advertisement which told of the 
bank's London (England) connections was illustrated with a 
picture of busy Threadneedle Street and the Bank of England 
as a background. Since, the Canadian Bank of Commorc; 
has issued several attractively illustrated advertisements, and 
the Bank of Montreal, long regarded as ultra-conservative in 
its advertising, brought out a new series with sketches of the 
bank's head office. 

The serious illustrating of bank advertising is not a cas- 
ual development. Rather it represents a conviction among 
professional advertising men who have studied their publics 
that a picture drives home its message even more quickly than 
the printed word. Probably, too, the influence of the Victory 
Bond posters has been carried into our bank advertising. 

Coming Down 'o Public 

Canadian. bankers of late hava indeed branched into hith- 
erto imexploited fields of publicity. The silk-hatted banker 
of the old school would be shocked iio doubt to see ban'^t adver- 
tising beckoning, cheerily, at him from the street cars — driv. 
ing home a message of thrift and saving to the average indi- 
vidual of the community. Our banks are now advertising in 
the street cars of almost all our Canadian cities. Some bank- 
ers there are who have come to recognize electric signs and 
the "movies," but comparatively few may be said to bo "soiu" 
for advertising other than that appearing in the newspapers, 
trade journals and well-recognized magazines. In other 
words, the press is still the most completely accepted medium 
for bank publicity. 

The Canadian Bank of Commerce, the Royal Bank of Can- 
ada and the Merchants Bank of Canada, as outstanding exam- 
ples, have come to regard the monthly commercial letter as a 
potent factor of publicity. The commercial letter may be 
said to be a consistent supplement to the topical booklet. 

The House Organ 

Not all bank publicity is being done publicly, however. 
The house organ is being adopted within several of our bank- 
ing organizations. Already the Sterling Bank, the Home Bank, . 
the Union Bank of Canada, the Canadian Bank of Commerce, 
the Royal Bank and the Dominion Bank are publishing- 
monthly magazines solely in the interest of their staffs. The 
mission of the bank organ primarily is to develop an espint 
de corps or a staff loyalty, but there is no gainsaying its 
measure of publicity even if only within the bank's own 
organization. 

From the "exterior" or public viewpoint the coming of 
the bank organ should not lightly be dismissed. The bank 
organ unquestionably will accomplish much toward further 
improving the public service rendered by our banking institu- 
tions. As a literary contribution to our banking history it 
will no doubt exert its influence in due season, while at the 
same time offering an interesting contribution to the art of 
printing and to the trade of publishing. 

A bank organ is particularly desirable for a Canadian 
bank under the Canadian system of branch banks. By this 
medium the bank's representatives at the frontier posts — ■ 
and there are still many in this wide-flung Dominion — may 
be kept in intimate touch with the passing events of the home 
office. The bank organ may be made to fill much the same 
purpose of the small community weekly whose item of news, 
"Bill Smith has shingled his barn this week," is of more vital 
concern to the home-town boy far removed from his native 
hearth than events duly chronicled in display headings on the 
front pages of the metropolitan dailies. 

Canadian bankers clearly have reached a finer and a 
keener appreciation of the arts and subtle influences of pub- 



licity and advertising. All that remains is a fuller realization 
of the fact that bank advertising to be completely effective 
must become increasingly "popular," for the average man or 
woman is the individual whom the banks would reach to-day. 



GOLD AND DOMINION NOTE HOLDINGS LOWER 



Since the beginning of 1918 the holdings of gold and 
subsidiary coin of the banks in Canada have decreased to 
quite a large extent. In January of the year mentioned 
these holdings totalled §95,785,084, reaching that point, which 
is the high record, after increasing during the years previous. 
Since then, outside of slight fluctuations, there has been a 
continued downward movement which reached the bottom in 
December, 1919, when the figure was $84,213,438. There has 
been a slight improvement during the- past year, but not of 
much account. 

The decline in these holdings has also been accompanied 
by a similar movement in holdings of Dominion notes, com- 
mencing in December, 1918. From that date the movement 
continued downward until October, 1919, when it started up- 
ward. The climax was soon reached, however, and in April, 
1920, the trend was again downward, and this time more pro- 
nounced. 

Although it would seem from this that the cash position 
of the banks has become weaker, such is not the case. Call 
loans in New York, which are considered equivalent to cash, 
have increased to such an extent that the decline in gold and 
note holdings is more than offset, and to quite a considerable 
sum. Call loans in New York at the beginning of 1918 
amounted to $132,687,066, while according to the latest bank 
statement the figure is now $188,367,459. It is more profit- 
able for the banks to keep substantial amounts on call in 
New York, when they are not only available within twenty- 
four hours as cash but are also drawing interest. 

The following table shows the average amount of hold- 
ings of gold, subsidiary coin and notes, each month since 
January, 1918: — 

Gold and Dominion 

1918 — Subsidiary coin Notes 

January $95,785,084 $195,927,684 

February 94,366,989 192,207,106 

March 93,181,192 182,330,656 

April 93,013,608 179,705,307 

May 88,667,684 189,025,969 

June 85,815,276 199,932,537 

July 85,933,634 204,179,801 

August 85,808,338 207,814,241 

September _- 86,476,973 210,088,479 

October 86,117,756 205,.332,680 

November 87,200,769 214,022,846 

December 87,884,146 208,019,191 

1919 — 

January $86,168,445 $197,739,973 

February 85,725,951 191,441,588 

March 86,098,447 181,102,320 

April 84,953,140 174,131,071 

May 84,809,908 177,456,695 

June 85,656,571 171,392,969 

July 86,236,599 176,544,418 

August 86,079,703 177,327,436 

September 87,170,499 168,260,462 

October 86,492,301 166,437,341 

November 86,517,911 172,997,904 

December 84,213,438 172,690,695 

1920 — 

January $86,641,270 $177,501,154 

February 87,668,936 177,099,303 

March 87,396,939 182,212,025 

April 88,865,085 170,320,595 

May 86,487,324 170,012,109 

June 86,460,864 166,192,824 

July 87,471,926 164,680,676 

August 86,332,046 172,509,202 

September 86,944,667 172,047,610 

October 86,211,873 173,008,938 



January 7, 1!»21 



THE MONETARY TIMES 



Canadian Financiers Trust Company 



INCORPORATED 1907 



Government, Municipal and Corporation Bonds 

To Yield 5.90% to 7!% 

For Investment 



We have a very complete list. Before investing secure particulars of our offerings. 



Commutiicate ivifh us for all Trust Agency 
and Investment Business in British Columbia 



HEAD OFFICE 



VANCOUVER, B.C. 



General Manager: LIEUT.-COL. G. H. DORRELL. 



The 



Montreal City and District 
Savings Bank 



Head Office and Sixteen Branches 
in Montreal. 



A. P. LESPERANCE 
General Manager 



T. TAGGART SMYTH 
Assistant General Manager 



Executors & Administrators 
Trust Company 



Authorized Capital 



$1,000,000 



HEAD OFFICE: 

10 Central Chambers 
MOOSE JAW - SASK. 

Authorized to act as 

Executor, Administrator and Assignee 



BOARD OF DIRECTORS: 

A. W. Irwin, President; J. H. Wellington, First Vice- 
President; R. H. Clark, Second Vice-President. 

Wm. Grayson, K.C., W. F. Dunn, L. M. Rosevear, 
A. R. Bie, H. F. Stirk, J. W. Sifton. 

W. A. MUNNS, Manager. 

(Official administrators for the Judicial District of 
Moose Jaw, Sask.) 



THE MONETARY TIMES 



Volume 66 



Bank Circulation Higher Than in 1919 

More Notes Outstanding at End of Each Month Than for Corresponding 
Months in 1919 — Maximum is Reached in November and Minimum in 
Early Summer — The Security for Bank Notes and the Service Rendered 



UNDER the Bank Act banks are authorized to issue notes of 
the denomination of $5 and multiples of $5 up to the 
amount of their paid-up capital. They are also permitted to 
issue in excess of the capital by depositing in the Central 
Gold Reserve an amount equal to such excess in gold or Do- 
minion notes. In addition each bank may, during the crop- 
moving period, from September 1 to April 30, inclusive, issue 
up to 15 per cent, of its combined capital and rest, and on 
this excess interest must be paid the government at the rate of 
5 per cent, per annum by way of tax. As a war measure this 
excess was authorized by the Finance Act of 1914, during the 
balance of the year, but this has not been availed of to any 
extent for the last year or two, the banks preferring to use 
the gold reserve. 

The Finance Act of 1914 also authorized advances by the 
government to the banks, by the issue of Dominion notes 
against approved securities. The bank statement issued 
monthly by the government does not show to what extent this 
has been availed of. Just why this information should not be 
given is not apparent, as in making advances in this way the 
government is merely performing the same service to the Can- 
adian banks and public that the Federal Reserve Banks in the 
United States were organized to do in that country. 

Effect of High Prices 

The high prices of commodities, due to the inflation 
through war conditions, made an increase of circulating me- 
dium imperative, and this W0,s the safest and most conserva- 
tive plan of providing a fully-secured currency. When prices 
fall, as appears probable, the currency will reduce accordingly, 
thanks to the system of daily redemption of bank notes, which 
is one of the outstanding features of our Canadian system of 
banking. 

This system by which each bank daily sends in for re- 
demption through the clearings all notes of other banks re- 
ceived in the course of business is the chief method by which 
the elasticity of currency throughout the country is preserved. 
Under it the circulation outstanding is only that amount 
required for the actual business needs of the community, any 
excess being promptly retired in the ordinary course of daily 
business. 

Large Increase in 1920 

During 1920 bank circulation, as shown by the compara- 
tive table below, has greatly increased in volume over the pre- 
vious years: 

Monthly Average Highest point 

In 1917 $190,000,000 $196,000,000 

In 1918 200,000,000 2.34,000,000 

In 1919 235,000,000 237,000,000 

'\^^ile the figures for December are not yet available, the 
average for the year 1920 will be about $20,000,000 more than 
the year preceding. In the past the highest point each year 
has been in November, and for the year 1920 the same result 
can be looked for. 

Security for the Notes 

The bank circulation is frankly an asset circulation, the 
notes being a first charge on the bank's assets. On this basis 
it will be interesting to know the security behind the issues. 
Under the section of the act requiring a deposit of a i-edemp- 
tion fund equal to 5 per cent, of each bank's circulation, the 
effect is to make the banks as a whole responsible for the 
circulation of any one bank. For this reason the charter of 
the Canadian Bankers' Association gives the officials of that 
organization authority to inspect the records of issue of each 
chartered bank, in order to prevent an over-issue of circula- 
tion. So far as the banks are concerned their issues have 
been handled in a most consei-vative way, anything in excess 
of the paid-up capital being covered by deposits in the gold 
reserve. 



The total circulation outstanding on August 31 was $227,- 
378,864; of this $103,162,533 was covered by the deposit in the 
gold reserve which offsets the liability of the banks to that 
extent, leaving in round figures $124,000,000. At the same 
date the banks held gold coin in their vaults amounting to 
$879,954,831, or 64 per cent, of their issue not covered by the 
deposit in the gold reserve. 

The total assets of the banks, less the gold reserve which 
specifically secures part of the issues, amounted on the same 
date to $2,968,017,294. The notes are a first charge against 
these assets, so that for each dollar of circulation outstanding 
there are $24 of assets for the security of the public. 

What Return Is Given? 

The circulation privilege of the banks is sometimes criti- 
cized on the ground that the banks give no adequate return. 
Without circulation, however, the banks' power to extend 
credit would be greatly reduced, and the usefulness of the 
branch system decidedly impaired. 

As the notes are not currency until issued it is possible 
for the branches to carry their funds in this form without 
expense. Owing to public confidence in the security behind 
them these notes pass as money in the ordinary course of 
business, and outside of silver for change the branches there- 
fore require no specie, and the reserves of gold and Dominion 
notes are kept intact in the main offices, where they are read- 
ily available when wanted. The use of the notes is merely 
an extension of the credit system by which all business is car- 
ried on. 

There is another feature of banking in this connection 
which is not fully appreciated. This is the amount in transit. 
Cheques and notes of other banks are received daily and cred- 
ited to depositors. The bank does not receive actual payment 
for these until the following day, and it therefoi-e constitutes 
an advance until payment is actually received. It is in effect 
a continuous free advance to the public. To il'ustrate: The 
circulation outstanding on August 30 last, less the amount 
covered by deposit in the gold reserve, was $124,000,000. 
Against this $30,000,000 of cash reserves is applicable, leav- 
ing the loanable balance $94,000,000. On the same date the 
banks held in cheques and notes of other banks, credited to 
depositors but which the banks had not yet received settle- 
ment for, $158,540,830, which far more than offsets the loan- 
able fund derived from the circulation. 

The following table shows the totals of the bank circula- 
tion by months for the last four years. The rise and fall 
during the year indicates the course of business demand, while 
the steady increase year by year shows tlie result of the 
steadily rising price of commodities, which has been chiefly 
responsible for the increase in the current medium of ex- 
change. 

Circulation by Months 

The amount of notes outstanding at the end of each 

month for the past three years, as shown by the banks' state- 
ments to the department of finance, have been as follows: 

1918 1919 1920 

January . $171,674,464 $203,424,472 $216,691,916 

February 176,369,296 204,779,750 223,377,781 

March 191,058,404 214,576,070 225,769,628 

April 180,654,964 208,958.572 223,387,731 

May 181,889,959 215,895,050 226,335,037 

June 194,681,710 217,608,195 227,775,253 

July 187,865,833 206,906,941 231,534,233 

August 200,839,660 222,461,915 227,373,864 

September 211,623,856 225,907,997 231,094,885 

October 227,597,808 236,477,479 249,165,707 

November 234,982,978 237,547,162 

December 224,501,117 232,486,734 



January 7. lOiil 



THE MONETARY TIMES 



77 



The 

Yorkshire & Canadian 

Trust, Limited 

Established 1889 in Vancouver 
A General Trust Company Business Transacted. 



TRUSTEE 
EXECUTOR 
ADMINISTRATOR 
LIQUIDATOR 



ESTATES MANAGED 
INSURANCE EFFECTED 
BONDS BOUGHT AND SOLD 
REAL ESTATE AGENT 



YORKSHIRE BUILDING, VANCOUVER. B.C. 

General Manager H. W. DYSON 



British Canadian Trust 
Company 

Head Office — Conybearc Block 
LETHBRIDGE, ALBERTA. 



Inc(1ki'oraTkii bv Special Ordinanck oi; thI' 

NoKTHwKsT Territories of Canada. 

(1901 Chapter 35.) 



Authorised to act as 

EXECUTOR, ADMINISTRATOR, 

TRUSTEE, GUARDIAN. 



Genera/ Financial Agents. 



V. p. CONYBKARK 
President 



GEO. H. STAGEY 
Vice-President 



(IKO W.M. PARSONS 
Manager 



Authorized Trustee under Dominion 
Bankruptcy Act. 



Taylor Safes 

STAND THE TEST 

They have been considered the 
standard of excellence for 65 years. 

One Quality 
One Price 



J. & J. TAYLOR, Limited 




Toronto Safe Works 



Toronto 



Branches . MONTREAL WINNIPEG VANCOUVER 



THE MONETARY TIMES 



Volume 66 



Four Legal Decisions Affecting Trust Companies 

Canadian Shareholder Held Liable For Double Liability Provision in Minnesota 
— Interpretation of Will in Nova Scotia — Executors Held Personally Liable in 
Alberta Case — Charitable Bequest Need Not Be Spent in New Brunswick 



OF the cases before the Canadian Courts during the past 
year, dealing' with matters of interest to trust companies, 
four have been selected for consideration in this review as be- 
ing of special interest. The first case to be considered is that 
of Allen vs. Standard Trust Company, in which Justice Gait 
decided that the estate of a British subject who had bought 
and received shares in an American company was liable under 
the double liability clause which it was claimed obtained in the 
case. 

The relief claimed was $5,000, being the par value of 
50 preferred shares of the O. W. Kerr Co., held by the late Sir 
William Whyte. The plaintiff Allen sued as the receiver of 
the 0. W. Kerr Company, which is a foreign company, incor- 
porated in the state of Minnesota, head office in Minneapolis, 
and doing business as vendors and purchasers of real estate; 
the Standard Trust Company is the executor of Sir William 
Whyte's estate. The basis of the plaintiff's claim consisted 
in a double liability alleged to attach in favor of creditors to 
every share of stock issued by a corporation which has become 
insolvent. 

The present case was argued by the defendants mainly on 
the ground that the plaintiff was seeking to enforce against 
the defendant a personal judgment obtained in Minnesota 
.against the late Sir William Wliyte, a non-resident, and with- 
out notice. But the action was not upon any personal judg- 
ment, nor were the appointment of the receiver nor the assess- 
ment levied on shareholders carried on without notice, for the 
manager of the defendant company produced papers showing: 
(1) That notice of a special meeting of the Kerr Company to 
consider its financial difficulties was sent to Sir William 
Whyte; (2) the receipt of a copy of an order from a Minne- 
sota court regarding the appointment of a receiver for the 
company; (3) that a copy of an order made by the Minnesota 
court in regard to the enfoixement of double liability on the 
shares in question was received. Thus notice of all proceed- 
ings was given Sir William Whyte. 

Minnesota Law to Govern 

In regard to the double liability question the court is 
quoted as follows: "The liability sought to be enforced against 
the estate of the late Sir William Whyte is a constitutional 
liability expressed in the statutes as follows: 'Each stock- 
holder in any corporation, excepting those organized for the 
purpose of carrying on any kind of manufacturing or mechanical 
business, shall be liable to the amount of stock held or owned 
by him.' The constx-uction placed upon this provision by the 
Supreme Court of the United States, and now applied by the 
courts in Minnesota, is that it is a provision intended to pro- 
tect the creditors of companies, and that it imposes on all 
shareholders a liability over and above any balance remaining 
due upon their shares to the full extent of the par value of 
their shares. It operates as a double liability." 

Mr. Justice Gait sums up his decision in six statements, 
the most important of which are, briefly: (1) That the O. W. 
Kerr Co. was duly incorporated in Minnesota. (2) That Sir 
William Wliyte bought 50 preferred shares of the company and 
received dividends thereon. (3) That Sir William Whyte was a 
British subject and a non-resident of Minnesota, and he pur- 
chased the shares in Winnipeg; but, in my opinion, the proper 
law of contract in question, in so far as the rights and liabili- 
ties of the late Sir William Whyte are concerned, is the law 
of Minnesota. (4) Finally, I find that when Sir William 
Whyte became a shareholder of the O. W. Kerr Co. in 
the "year 1911, he agreed by implication that his rights, liabili- 
ties "and status as a shareholder in that company should be 
governed by the laws of Minnesota, and that under these laws 
the defendant company, as executors of the estate of Sir 
William Whvte. are now liable for the relief claimed, to- 



gether with interest at six per cent., in accordance with the 
law of Minnesota." 

Mills vs. Biden 

In the next case it was held by the Nova Scotia Supreme 
Court that it is the intention of the testator which must be con- 
sidered, whatever the wording of the will may be. The case 
was that of Mills vs. Biden, and the part of the will in ques- 
tion was that making a bequest to his wife, reading as fol- 
lows: "All my real and personal estate of which I shall die 
seized and possessed, or to which I shall be entitled, and all 
debts which may be due to me at the time of my decease, with 
full power and authority for her to dispose of the same at her 
discretion by absolute deed or deeds of conveyance executed by 
her, or by her last will and testament among my children, or 
any one of them; and should she die without executing such 
deed or deeds or last will and testament, then the same to be 
divided among my children surviving, or their legal represen- 
tatives if dead, share and share alike." 

After the death of W. N. Mills the widow seems to have 
thought she was the absolute owner of the real estate and 
accordingly made a deed of a portion of it to one William 
Hamilton, who by himself or his grantees, conveyed to one 
Briden, the defendant. The widow of W. N. Mills died on 
March 12th, 1902, without having disposed of the property by 
deed or will among the children of the deceased, and the action 
was brought to recover possession of the land so sold to Ham- 
ilton and subsequently transferred to Biden. 

Intention Was Children Should Benefit 

The main contention was as to whether the will of W. N. 
Mills on the true construction to be put on it gave his widow 
absolute ownership or only possession for the duration of her 
own life in the real estate. If she took it in absolute owner- 
ship, then it is admitted that her deed to Hamilton and the 
subsequent deeds vested a good title in Biden. On the other 
hand, if the will only gave the widow a life estate in the real 
estate of the deceased, it would seem to follow that she could 
convey a life estate only. 

Chief Justice Harris decides the question in the following 
words: "His intention that his children should benefit is per- 
fectly obvious, as is also his intention that they should at least 
take on the death of his wife. They are to take before her 
death if she, in her discretion, should so decide, and should 
convey it to them otherwise on her death, either by her will in 
their favor or otherwise under the testator's will equally. I 
do not see how a plainer intention to benefit the childi'en could 
have been manifested." 

Security Trust vs. Wishart 

The third case is that of Security Trust Company vs. 
Wishart, in which the Supreme Court of Alberta held that 
executors are personally liable on their contracts so long as they 
have no relation to some obligation of the testator. The facts 
were that the company obtained $15,000 for services rendered 
Mrs. Wishart and William Breckenridge, two of the executors 
of the will of the late John Breckenridge. The two executors 
had made an agreement with the trust company whereby the 
company was to act as their attorney and agent whenever 
they might be absent from the jurisdiction. The agreement 
then witnessed that the trust conipany was to receive $250 per 
month for its services, and that some question might arise 
later as to what extent such compensation might be chargeable 
against the estate. A later clause then set forth that in the 
event of Mrs. Wishart not receiving $300,000 and her daugh- 
ter $75,000, or any legacies being diminished by reason of pay- 
ments to the trust company, Mrs. Wishart was to be "person- 
ally liable for such proportion or amount of the said trust com- 



January 7, 1921 



THE MONETARY TIMES 



THE IMPERIAL CANADIAN 
TRUST COMPANY 

HEAD OFFICE, WINNIPEG, CANADA 

Incorporated by Special Act of the Legislature of Manitoba. 
Licensed under tlie Laws of the Provinces of Saskatchewan, Alberta and British Columbia. 



AUTHORIZED CAPITAL 
SUBSCRIBED CAPITAL 
PAID UP CAPITAL AND RESERVE 
TOTAL ASSETS 



$3,000,000 
1,171,700 
1,172,348 
7,266,797 



DIRECTORS 

Major D. E. vSprague. O.B.E., J. H. G. Russell, Esq., W. T. Alexander, Esq., Dr. A. D. Carscallen, 

W.J Boyd, Esq., E. L. Taylor, Esq., K.C., F. H. Alexander, Esq., Col. The Hon. 

A, C. Rutherford, James Short, Esq., K.C., S. D. Lazier, Esq , 

R. T. Elliott, Esq.. K.C., Thos. S. McPherson, Esq. 

C.eneral Manager: \V. T. ALEXAN'DER. Esq. Asst. General Manager. M.AJOR F R GEORGE 

Authorized to act as 

EXECUTOR, TRl STEi:, ADMINISTRATOR, GIARDIAN, RECEI\'ER, ASSIGNEE 
GENERAL FINANCIAL AGENTS 

Branches at VANCOUVER. VICTORIA. CALGARY. EDMONTON, REGINA. SASKATOON 



Canadian Guaranty 
Trust Company 

HEAD OFFICE 

BRANDON, MAN. 



Acts as Executor, Administrator, Trustee. 
Guardian, Committee, Assignee, Receiver, 
etc. 

Moneys Invested for clients in First Mort- 
gages on improved farms only to yield 

6 ; to 7 :. 

5' '., allowed on sums of $500.00 or upwards 
in moneys left for tliree years or longer under 
our Guaranteed Trust Investment Receipts. 

Our Agency Department is fully organized 
for tlie management of properties, collection 
of rents, accounts, etc., and the buying and 
selling of Real Estate. 

Of ficial Administrator ior the Northern and 
Dauphin Judicial Districts in the Province 
of Manitoba. 



Branch Office: 
Swift Current, Sask. 



Saskatchewan General 
Trusts Corporation 



Limited 



.AUTHORIZED TO ACT AS 

Executor, Administrator, 
Trustee under Bankruptcy Act 

Acts as Agent for making Investments 

in First Mortgages and other First Class 

Securities 

BOARD OF DIRECTORS: 

W. T. .MoLLARD, President G. H. Barr. K C. Vice-President 

J. A. McBride C H. Willoughby W. H. Duncan 

J. A. M. Patrick, K.C. David Low, M.I). \Vm. Wilson 

A. L. Gordon. K.C. Herbert E Sumnson, K.C. 

General Manager E. E. Murphy 

HEAD OFFICE 

1811 CORNWALL STREET 

REGINA, SASK. 

(Official adniinstrator for the judicial district 
of Wevburn, Sask ) 



THE MONETARY TIMES 



Volume 66 



pany's remuneration as may be disallowed by the court on 
the passing of the accounts of the said estate," provided that 
if William Breckcnridge received more than $5,000, "he shall 
to the extent of such excess contribute in equal shares with 
the said Irene Breckcnridge (Mrs. Wishart) to such remuner- 
ation of the said trust company as may, on the passing of the 
executors' accounts, be disallowed by the courts." 

This agreement was signed by the above two executors, 
but not by the third. The will of John Breckcnridge provided 
that William Brcckenridge and Mrs. Wishart would be amply 
compensated for their services by the legacies they would 
receive, and that the third executor who was to look after 
much of the detail was to receive $250 per month, which he has 
received. At first it was thought that there would be a sur- 
plus, but it later developed that there was hardly sufficient to 
pay the debts in full. 

His Lordship's decision is, briefly: 

"The parties all thought the estate was not only solvent 
but very rich. Hence the idea of much personal liability was 
not very prominently in their minds. Mr. Wishart agreed 
that what she had indemnified William Breckenridge against 
would come out of her share of the estate. They were really 
all thinking that everything would come eventually out of the 
estate or someone's very large legacy from it. 

"I therefore think that we ought not to discover any im- 
plied undertaking of the plaintiff to look to the estate and the 
estate alone for the major portion of its remuneration. 

"My point is that there never was any possibility of the 
plaintiff company being able to sue' the estate in an action for 
their services. Even if the reference to 'personal' liability 
which is found in the agreement had never been there at all, 
and even if Roach had signed, and although they were all de- 
scribed as executors, the plaintiff company could have sued 
executors personally, and them alone, for their agreed remu- 
neration. 

"There is nothing in the agreement specifically relieving 
the two signing executors from their ordinary personal liabil- 
ity, covering the whole amount agreed to be paid — the uncer- 
tain amount left after a fixed remuneration had been decided 
on for the two executors as well as the amount which might 
be allowed to them — i. e., the executors, as such remunera- 
tion. And I think, therefore, the ordinary rule of full per- 
sonal liability should apply. 

"The appeal should be allowed with costs and judgment 
entered for the plaintiffs against the defendants Wishart and 
Breckenridge for $15,000." 

New Brunswick Succession Duty 

In the fourth and last case to be considered the question 
came up as to the application of the New Brunswick Succes- 
sion Duty Act to certain charitable bequests made in a certain 
will. 

The case arose out of an action commenced by the provin- 
cial secretary of New Brunswick' against C. W. Robinson and 
A. E. Bartlett as executors and trustees of the last will and 
testament of one A. R. McClelan. The aggregate value of the 
estate of A. R. McClelan is $205,602, of which $152,999 was a 
charitable bequest to be administered by the above named trus- 
tees, Robinson and Bartlett. The residuary clause of the will 
which directed the application of this charitable bequest is: "I 
give and bequeath all the residuary estate to my executors and 
trustees in trust to manage, to call in, collect and convert the 
same into money and deposit the same at interest in a char- 
tered bank or banks and use and employ the money so depos- 
ited from time to time and all interest therefrom arising for 
the benefit, advantage, assistance or the founding of such 
charitable, religious, educational or sanitary institutions as my 
said executors and trustees may from time to time see fit and 
deem desirable." 

The questions upon which the court was asked to give an 
opinion were: (a) Is the plaintiff entitled to succession duty 
under The Succession Duty Act, 1915, in respect of all moneys 
passing to the said Clifford W. Robinson and Abner E. Bart- 
lett, as trustees under the residuary clause in the will of the 
said Abner R. McClelan, deceased? (b) At what rate is suc- 
cession duty to be computed? (c) Is the plaintiff entitled to 
interest on such succession duty as claimed ? 



The judge in his answer to the questions stated that as 
regards the first question the answer depended on the con- 
struction and meaning to be placed on section 6, sub-section 
2, of chapter 27, of the Succession Duty Act, which reads as 
follows: "No duty shall be computed in reference to (2) any 
pi'operty given, devised or bequeathed for religious, charitable 
or educational purposes to be carried out in New Brunswick, 
nor the amount of any unpaid subscription for any like pur- 
pose, made by any person mentioned in this sub-section for 
which his estate is liable." 

Need Not Be in New Brunswick 

In answer to the first question His Lordship said: "I base 
my judgment upon the fact that upon a true construction of 
the will there is no obligation on the part of the trustees to 
carry out the intention of the testator in this province, and 
that the bequest is not a bequest to be carried out in New 
Brunswick. To bring the case within the statute the legacy 
must be given to be carried out in New Brunswick, and there 
must be a clear intention manifest upon the face of the will 
that the purpose is to be effectuated here. In the language 
of Palles, C. B., mutatis mutandis it is not sufficient that an 
application of money in New Brunswick would satisfy the be- 
quest. In my opinion, therefore, the answer to the first ques- 
tion must be yes, or in other words that the plaintiff is en- 
titled to succession duty under the Succession Duty Act, 1915, 
in respect of all money passing to the said C. W. Robinson 
and A. E. Bartlett as trustees under the residuary clause in 
the will of the said A. R. McClelan, deceased." 

In regard to the second question His Lordship said: 

"It is quite clear that if the bequest were made for the 
benefit of a charitable institution outside the province the 
assessment on the amount would be as follows: A rate of 10 
per cent, would be computed owing to the institution being a 
stranger in blood to the testator, and this would be doubled 
because such beneficiary was outside the province. My judg- 
ment is that it is liable to a duty of 10 per cent, because it 
goes to institutions that must be regarded as in the same posi- 
tion as strangers in blood to the testator, and because it is not 
directed that it shall be disposed of for purposes to be carried 
out in New Brunswick." 

In answer to the third question it was decided that in 
accordance with section 18 of the Succession Duty Act, interest 
at the rate of five per cent, could be collected from the time of 
the testator's death. 



REAL ESTATE AS SECURITY FOR DEBT 



Under the Bank Act, Canadian banks must not lend on 
real estate, but may accept mortgages as additional security 
for a debt already incurred. In case of foreclosure they are 
allowed to bid in the property, but cannot hold it over a cer- 
tain length of time, so that naturally they get rid of it as 
soon as possible, and in doing so accept mortgages. The ex- 
tent of the banks' business along this line is shown in two 
accounts in the bank statement, as given below, and it will 
be seen from the figures that it is not large: — 

Real estate Mortgages 

other than under real 

1919 — bank premises estate sold 

October $5,463,675 $2,404,772 

November 5,586,078 2,405,619 

December 5,596,930 2,505,401 

1920 — 

January $5,545,766 $2,608,622 

February 5,611,570 2,615,018 

March __• 5,482,719 2,585,361 

April J 4,876,459 2,671,132 

May 4,910,297 2,622,484 

June 4,786,140 2,726,360 

July 4,625,775 2,655,462 

August 4,435,256 2,727,545 

September 4,353,651 2,714,752 

October 4,142,987 2,825,245 



INVESTMENT 




Jtiiinary 7, iQ^i 



THE MOXF.TARV TIMES 



Paqe 81 



82 



THE MONETARY TIMES 



Volume 66 



United Financial Corporation 



LIMITED 



BOARD OF DIRECTORS 

Sir Charles Gordon, G.B.E., President. 

President Dominion Textile Co., Limited. Vice-President Bank of Montreal. 

D. C. Macarow, Vice-President, 

General Manager Merchants Bank of Canada. 

Chas. F. Batchelder, Vice-President, 

Formerly of Guaranty Trust Co. of New York. 

Major H. B. MacDougall, Vice-President, 

of Messrs. C. Meredith & Co. 



W. A. Black, 

Director Molsons Bank, 

Vice-President Ogilvie Flour Mills Co.. Limited. 

A. Breton, 

Vice-President Guaranty Trust Co. of New York. 

A. J. Brown, K.C. 

Vice-President Montreal Trust Co. 
Director Royal Bank of Canada. 

Geo. Chahoon, Jr., 

President Laurentide Co., Limited. 

A. E. Holt, 

Director The Royal Trust Company. 



C. R. Hosmer, 

President Canadian Cottons, Limited 
Director Canadian Pacific Railway. 
Bank of Montreal, etc 

Wm. McMaster, 

President Canadian Explosives. Limited. 
Director Bank of Montreal, etc. 

Charles Meredith, 

of Messrs. C. Meredith & Co. 

Harold Stanley, 

Vice-President Guaranty Trust Co. of New York. 

E. W. Stetson, 

Vice-President Guaranty Trust Co. of New York. 

J. R. Swan, 

Vice-President Guaranty Trust Co. of New York. 



A. P. B. Williams, Secretary-Treasurer. 



We purchase entire issues of Bonds, and deal in 
Government, Municipal and Corporation Securities. 



Head Office: 



112 St, James St., Montreal 



Toronto Office : 
Ottawa Office: 
London Office : 



14 King Street East 

709-711 Hope Chambers 

46 Threadneedle Street, E.G. 2. 



January 7, 1921 



THE MONETARY TIMES 



Recent Conditions Relating to Investments 

New Capital Well Distributed in 1920, With Growing Preference for Essential Indus- 
tries — Demand for Tax-Exempt Securities Fairly Well Exhausted — The Course of Prices 
as AflfectingI Investments — Bankers Recognize Need of Sound yet Adequate Credit 

By ADAM SHORTT, Ph.D. 



ON the face of it it is merely a truism to say that capital 
investments are determined by the general economic 
conditions of the country. On second thought, however, it 
may not be quite so obvious as to what are exactly these 
economic conditions, or what are their respective importance, 
range, steadiness, and capacity for reliable estimate. How 
far are they purely domestic conditions and how far foreign 
or world conditions. Moreover, in what measure are they 
purely economic, and in what measure political, social or 
psychological? . 

Thus, when we attempt to penetrate our subject we find 
interesting questions arising on every side. Some of these 
are more or less soluble on fairly stable practical principles 
derived from experience, while others can only be noted as 
to their general nature and relative influence, but cannot be 
reduced to any permanent or practicable operation. By way 
of analogy, we may say that economic conditions in general 
are like those which govern agriculture. One may determine, 
more or less definitely, the character of the soil, the most 
effective methods of cultivation, the relative values of 
fertilizers, implements and seeds, as also the general climatic 
conditions; but we cannot be certain for. more than a few 
hours in advance as to what the weather will be. Yet every 
one kjiows that the weather is a very potent factor in de- 
termining the crop returns. The psychological and tempera- 
mental features, whether of individuals, of sjiecial economic 
groups, or of public opinion in general, constitute the weather 
factor in economic conditions. While understandable in their 
effects and radical in importance, they can be predicted with 
no certainty. On the eternal uncertainty of weather con- 
ditions the weather prophet flourishes, while the trained 
meteorologist has little counsel. On the psychological 
element in economic affairs the confident predictions of the 
speculator and the plausible promoter rely, where trained 
economists will not hazard a definite opinion. But sometimes 
the weather prophet and the speculator are right, hence their 
influence. 

Psychological Factor is Prominent 

Owing to the uncertainty of the present outlook, the 
psychological factor promises to be d very influential force 
in determining the course of the stock markets and the direc- 
tions of investments. Immediate impressions are likely to 
be projected into an indefinite future and to encourage the 
conviction that conditions can never return to what were 
considered normal before the war. At one time optimism will 
govern and determine action, at another pessimism will rule 
the day, spreading with subtle and almost irresistible in- 
fluence through the minds of those not well fortified by a 
long range of experience. 

During the greater part of the past year the directions 
of capital investments have been fairly steady. There ap- 
pears to have been a prevailing assumption that the diffi- 
culties anticipated at the close of the war not having ma- 
terialized, it was rather late to expect them. The heavy 
trend on the part of persons with comparatively large in- 
comes towards the purchase of long-term tax-exempt Do- 
minion securities, which was so pronounced a factor in 1919, 
and which carried those issues to a substantial premium, had 
nearly exhausted itself towards the close of the year, when 
the last Victory Loan was successfully floated. Thereafter 
the flow of capital investment, during the greater part of 
1920, was fairly evenly distributed between the various fields 
of public securities. Dominion, provincial and municipal, and 
private and corporate enterprises; the pulp and paper shares 
being naturally popular in virtue of their present prosperity 
and attractive future prospects. 



All this furnishes a curious parallel to the economic 
situation which followed the last great world struggle, prac- 
tically brought to a close in 1814. In that case, for the first 
two years after the close of hostilities business remained 
brisk, the populace spent lavishly, economy was disregarded, 
and the conviction became general that no serious re- 
action was thereafter likely to occur. It was felt that dur- 
ing the long war. nothwithstanding its inflated credits and 
currency, and suspended specie payment, a new an3 per- 
manent level of values had been established, which were not 
likely to be disturbed for an indefinite period. In the early 
part of the third year, however, as in the present case, 
stagnation began to develop, raw materials to accumulate, 
and prices to break. Industries slackened their pace and 
many ultimately closed, unemployment spread and a long 
and severe depression followed. In the course of this re- 
action, deflation was thoroughly accomplished, exchanges 
were readjusted, specie payment was resumed, wages and 
the cost of living fell concurrently, rendering production on 
a large scale both possible and profitable, and at prices suit- 
able to the domestic consumer and the foreign markets. Pros- 
perity on a sound basis rose to volumes undreamed of be- 
fore the war, with increasing funds for investment drawn 
from a much broader section of the general public. These 
conditions, unfortunately, tempted reckless speculation, 
promising fabulous returns and letting loose in the economic 
world the psychological forces already referred to, the whole 
leading once more to reaction and crisis. 

How Far Will Parallel Go? 

It does not of necessity follow that the general parallel 
with conditions after the close of the Napoleonic wars which 
has so far existed, must continue during the third and fol- 
lowing years of the modern cycle. Yet there are many in- 
dications that healthy trade conditions on a sound financial 
basis should be reached as rapidly and effectively as possible 
over a wide area. This will permit of commercial and ex- 
change relations being re-established, with the resumption 
of specie payment, and the affording of safe and attractive 
investment for capital. It would also promise employment 
for labor at reasonable rates of remuneration measured, not 
by inflated credits, but by a standard of living bearing some 
fair equivalent to the output of the worker in his own con- 
tribution of products or services. 

There is, of course, much to be said for a gradual process 
of deflation if it could be effectively and justly carried out. 
But this is quite impossible. Certain lines of industry, such 
as building trades, do not lend themselves to this process. On 
the other hand, owing to the rapid accumulation of raw ma- 
terials in the textile, leather, sugar and other trades, where 
production can take place with fair rapidity, the finished 
goods are certain to fall in price long before rents from 
housing, fuel, and transportation would adjust themselves, 
especially if encouraged to maintain a high level as long as 
possible. Large sections of the community, however, are 
liable to suffer a severe shrinkage of income before there is 
a corresponding fall in the cost of living in other lines. A 
more rapid adjustment all round would be more equitable 
in the end, and the sooner establish a sound and reliable basis 
for capital investment. 

In the face of present conditions capital is naturally shy 
of ready investment in even standard lines of production, 
while prices are in a more or less crumbling condition, not- 
withstanding elaborate attempts to sustain them at levels 
above their normal gravity adjustments. It is quite true that 
in well-established industries with their fixed capital in good 
working condition and with sufficient supplies of raw ma- 



THE MONETARY TIMES 



terial at suitabli- rates, they are able to make a rapid turn- 
over of their capital ami thus secure reasonable profits, even 
on a gradually falling market. Such industries, however, 
can fairly well take care of themselves even on a rapidly 
falling market, and they are the sooner in a position of 
stability to meet future developments. 

Must Be Shrinkage of Values 

There is nothing to be gained and much to be lost in 
attempting to ignore the fundamental fact that in the process 
of deflation or readjustment of values, a certain shrinkage of 
fortunes must result, just as a corresponding expansion was 
temporarily secured through the highly artificial process of 
inflation incidental to the great war. But when we come to 
consider the great benefits which result for a country when 
its business is restored to former conditions, the temporary 
sacrifices necessarily involved in reaching this basis may be 
philosophically faced if not altogether relished. When the 
alternative is considered the outlook for new investment is 
certainly not hopeful. A country such as Canada cannot ex- 
pect to confine its business within its own borders. If, there- 
fore, the attempt is made to maintain prices upon a per- 
manently higher level than in competitive countries, or to 
have the decline in prices lag behind the fall in adjoining 
countries, two complimentary results must inevitably follow. 
In the attempt to sell our own goods abroad we are steadily 
handicapped by high cost of production. Our trade is in- 
evitably retarded and many industries must either undergo 
heavy sacrifices or curtail — possibly suspend — their business 
indefinitely, foregoing profits and throwing labor out of em- 
ployment. Again, with high prices maintained in our do- 
mestic markets, Canada becomes an exceptionally attractive 
country into which to import foreign goods, despite our tariff 
rates. The slow readjustment, therefore ,is a stagnating and 
unprofitable line of policy to follow. 

Exchange Rate Now a Real Factor 

It is to be observed that the barrier of a high exchange 
rate does not materially affect purchases under the com- 
pulsion of necessity to buy in any market available regard- 
less of costs during war conditions; as also during post-war 
condition depending on the reckless extravagance of those who, 
in proportion to their previous incomes, have shared greatly 
in war profits. When, however, war conditions have passed 
and the accumulations of the spendthrift classes are trans- 
ferred to more thrifty hands, those countries enjoying a high 
favorable exchange rate, notably the United States and even 
Canada itself, with reference to the European countries, will find 
themselves in a very difficult position as regards the sale of 
their goods. So long as the foreign purchaser has to pay the ex- 
change rate with the United States and Canada, there will 
be no great loss to American or Canadian exporters, but 
when supplies are available from other countries on the basis 
of the sale of bills on London, then Canadian and American 
exports to Britain, not to mention other European countries, 
must conform to similar conditions. 

Then the return on the goods is not the nominal value 
in the foreign country, but simply the domestic rate at which 
the exchange drawn against the foreign country will sell in 
one's own country. Thus the sale of a cargo of wheat to 
Britain at so many pounds in the British market nets the 
American exporter, and through him the farmer, just so 
many times, say, $3,40, the price of the English pound in the 
New York market, for the time being. A similar cargo 
would net the Canadian exporter just so many times $3.80. 
If the Canadian and United States farmers wish to spend the 
full returns from their grain in the purchase of British 
goods, they would recover in the corresponding low rates at 
which they could purchase sterling exchange, what they lost 
in the selling of sterling exchange drawn against their ex- 
ports; the net result to both would be the same. In other 
words, in both Canada and the United States, a given num- 
ber of bushels of wheat would purchase just the ,ame 
quantity of British goods. If, however, the Canadian and 
.American farmers have debts to pay, or wish to purchase 



goods in their own countries, and the prices are the same in 
each, the American farmer would be worse off than the Can- 
adian, while both of them would suffer a severe shrinkage 
in their incomes, so long at least as prices in their respective 
countries are still approximately at war levels. 

United States is at Disadvantage 

The more intelligent observers in the United States are 
not slow to recognize their disadvantages so long as war 
rates prevail. To protect themselves in the world's markets, 
the more enlightened Americans perceive the necessity for 
reducing prices and costs as rapidly as possible and as nearly 
as possible to a pre-war basis at least, in order that the 
handicap of a high favorable exchange may not cripple the 
foreign trade of the United States in proportion to the re- 
covery of the productive power of competitive countries. The 
same, of course, applies to Canada only in a slightly less 
degree. These are important factors, therefore, affecting 
very radically and with increasing power the prospects of 
capital investment in Canada. 

Essential Industries Have Best Outlook 

As regards the relative attractiveness for capital in- 
vestment of the fields of the necessaries and luxuries of life, 
it may be concluded that, at the present time, the former is 
much the more promising. During periods of inflation, how- 
ever, as in the later years of the war and the first two years 
of peace the contrary would be true. In the first place, in 
periods of inflation a relatively prosperous community, such 
as that of Canada or the United States, does not purchase 
much more of the necessaries of life than in other periods. 
It is the demand of non-productive armies and the general 
waste of war which renders the necessaries of life scarce and 
dear. In times of inflation and consequent extravagance, 
however, there is no limit to the markets for luxuries save 
only the extreme limit of pui'chasing power. Not the body 
but the fancy has to be satisfied. In exceptionally prosper- 
ous periods, therefore, it is in the line of luxuries that the 
widest margins of profits are realized and the greatest 
fortunes are made. There arises, of course, a great and most 
virtuous wail over the high cost of the necessaries of life, 
while most of the same parties pay without a murmur famine 
prices for fleeting and unprofitable luxuries. 

When, however, the spending power is curtailed, the 
urgency of the necessaries comes to the front, and the dis- 
pensable luxuries and the King's revenue therefrom are 
among the chief sufferers. During critical periods of trade 
and finance, it is obviously safer for investors, who are not 
quite on the inside of the market, to place their capital with 
those enterprises which are connected with the production 
of the necessaries of life, rather than its luxuries Fortu- 
nately, the Canadian industrial field hitherto has been chiefly 
concerned with the great staples of trade. 

Building Costs May Remain High 

One of the most difficult aspects of capital investment is 
that connected with building and housing. Unfortunately 
while the increasing costs and lack of materials, which meant 
lack of labor, restricted, during the war period and since, the 
construction of houses for the common citizens, enormous 
funds with all available labor at high wages were employed, 
chiefly by the Dominion, but also by the provincial govern- 
ments and municipalities, in the construction of extensive 
buildings connected more or less with war work, and many 
of which are now of but little service in proportion to their 
costs. Private corporations connected directly or indirectly 
with war contracts also spent large sums in buildings and 
other fixed capital, while those contributing to the amuse- 
ment of the masses and the furnishing of other forms of 
luxury found it quite profitable to build for these purposes, 
in spite of the high costs involved. 

The pressing popular need for housing still remains, 
therefore, and there ^s less prospect of an immediate decline 
in cost in that essential line than in any other. This is 
chiefly due to the fact that the cost of building is chiefly de- 



January 7, 1921 



THE MONETARY TIMES 



85 



termined by the cost of high-priced labor as distinguished 
from the standard raw materials of construction. As a re- 
sult, so long as the exceptionally high remuneration of the 
building trades and the shortness of their hours remain on 
the present basis, the cost of building cannot substantially 
decline, even should there occur a considerable reduction in 
the more essential building materials. 

The chief sufferers from the present unfortunate situa- 
tion are the lower or unskilled sections of the laboring 
classes, the shop-keeping assistants and the numerous 
clerical classes whose incomes are far below those of the 
building trades. Many schemes have been propounded for 
the relief of the situation, but they are all brought to a stand 
by the excessive cost of building. Naturally, therefore, at 
the present time, very few persons will invest capital with 
any expectation of profit in the construction of dwelling 
houses for rent, or even in the construction of closet apart- 
ments on the cheapest lines that will pass inspection. Apart 
from victimising the insurance companies, there is no pos- 
sibility of a rapid turnover in the investment of capital in 
housing accommodation. Aside from governments, therefore, 
or those institutions who build without hope of permanent 
pecuniary reward, there is likely to be little capital invested 
in buildings until a paralysis of building leads to a reduction 
of costs. 

Needy Cannot Pay Prices 

This is the only important field in Canada which illus- 
trates the situation which prevails in so many lines in 
Europe. Briefly the situation is one in which there is wide- 
spread and urgent need, but very little economic demand. 
In other words, the needy have no adequate means of pay- 
ment for the supplies they require. In the case of many 
millions of people in Europe, there is a most urgent need for 
supplies of practically all the necessaries of life, but as these 
people have little of commercial value to offer in exchange, 
their need does not furnish an economic market; it promises 
no remuneration for capital devoted to the supply of their 
wants. This condition has occurred after every great war, 
but it was sadly overlooked by the thoughtless commercial 
optimists rejoicing over the prospects of a large and highly 
profitable market for the supply of Canadian and American 
products in the areas devastated by the war. 

The dire need of Europe extends far beyond the regions 
which these persons had in mind. America could dispose of 
all her surplus food and keep most of her industries busy 
without adequately meeting these urgent needs, but for the 
vast majority of our products we should have to take the 
European I.O.U.'s for an indefinite period. In other words, 
their chief available export is the product of their promissory 
printing presses, one war industry which is still in active 
operation among them. 

In point of fact what is required to meet the most urgent 
need of Europe is charity, not trade, much less profiteering. 
In view of prospective production it cannot be too clearly 
realized that the economic markets of the world are far more 
limited since the war than they were before it. In the re- 
covery process, supply bids fair to exceed, for some time, de- 
mand backed by the means of payment. Both the capital and 
labor which hope to successfully compete for the supply of 
such limited markets, must revise as speedily as possible the 
cost of production. Apart from the economy of mechanical 
devices and industrial organization, this means the reduc- 
tion of the cost of living, and, under present conditions, this 
means the reduction of profits and wages, into which ulti- 
mately all costs resolve themselves. With the enormous 
supplies of our native raw materials and the steadily falling 
urioe'^ of the chief foreign raw materials, except fuel, it 
should be possible for Canada to adjust itself to the new 
world conditions to as great an advantage as any other 
country, not excepting the United States. 

One primary requisite of a sound economic condition and, 
therefore, of the safety of the field for capital investment, 
is the maintenance of the trade and particularly the com- 
merce of the country upon a fluid basis of exchange, that is. 



a fluid money market. Now an inflated credit market is no 
proof of a fluid money market; nor do the highly expanded 
banking returns give any assurance of a fluid money market. 
On the other hand, it is quite evident that the leading Can- 
adian bankers are very much alive to the real needs of the 
situation, and take a very intelligent view of their functions. 
Their energies ai'e being directed alike in expanding accom- 
modations in certain directions, while curtailing credits in 
others, to bring as large a volume of the trading capital of 
the country into the most flexible and serviceable form pos- 
sible. This is essential to prevent the tying up of large funds 
in stocks of goods or forms of investment which cannot be 
realized upon within comparatively brief periods. It is highly 
necessary to devote commercial capital to productive indus- 
tries with a rapid turnover, thus permitting of the maximum 
employment for labor in the supply of essential goods and 
services. 

In any case it is specially desirable that the irresponsible 
speculator should be kept out of the capital market until con- 
ditions are once more fairly normal, when his operations will 
alfect mainly h.mself. In critical periods, when even the 
most experienced captains of industry and pilots of finance 
are more or less nervous and worried as to the extent and 
duration of this, that, or the other squall, current, or tide, 
the speculator obscures all issues, displays false signals, and 
in raising false hopes induces in the end more widespread 
disaster or even despair. -All past history of the re- 
adjustments after important wars establish the certainty of 
the process of deflation with an inevitable shrinkage in 
values. But when the situation is intelligently realized and 
calmly dealt with, panic can be avoided and the disasters 
which are almost entirely due to it successfully evaded. 



EXPANSION OF AUTOMOBILE INDUSTRY 

When the war broke out the number of automobiles in 
use in Canada was 67,415, but now the number is 400,000, and 
the value of those registered is $600,000,000. Although the 
price of cars and of gasoline has increased during the current 
year, their use for pleasure as well as for business purposes 
has steadily increased. For the manufacture of automobiles 
and the assembling of parts $54,000,000 is invested in Cana- 
dian plants, which employ 15,000 hands, receiving annual 
wages of $15,000,000. Sales of cars exceed $100,000,000 an- 
nually. 

A large portion of the material used in the production of 
a Canadian car is imported. For parts alone the annual bill 
is $12,000,000, while the requirements of automobile manufac- 
ture entail an increased importation of glass, rubber, iron and 
steel. The growing use of automobile vehicles accounts in 
great measui-e also for the steady increase in imports of petro- 
leum products. For the twelve months ended June 30th last 
514,897,000 gallons of oil were imported, as compared with 
4.3.3,018,000 gallons for the preceding twelve months. The 
cost of this year's imports of oil in its finished and crude 
forms is estiinated at $35,000,000. 

The Canadian Bank of Commerce, in its monthly commer- 
cial letter for September, points out that this, however, does 
not represent the whole cost of maintaining cars. During the 
current year a large amount of capital has been invested in 
garages, public and private. The former are now as numer- 
ous as were once village blacksmith shops, which they have in 
many cases absorbed, and serve to a very large extent the 
users of pleasure cars. They also give employment to a large 
number of highly-paid workmen. While expenditures on 
these accounts may to some extent facilitate production and 
trade, the physical volume of the former has not materially 
changed. Continued expenditure of labor and capital on so 
large a scale without tangible results in exportable products 
will not aid in bringing about more satisfactory condition?. 
Declines in prices of essential food, clothing and house-build- 
ing materials cannot be looked for so long as a di.sproportion- 
ate amount of capital and labor is expended on sustaining 
activities that do not produce the necessities of life. 



IKE MONETARY TIMES 



Volume 66 



CANADIAN BOND SALES $320,000,000 

More Than Two-Thirds of This Total Was Placed in the 

United States — Large Amount of Provincial and Kailroad 

Financin;; — Many Municipalities Make Domestic Loans 

CANADIAN bond sales in 1920 reached the substantial total 
of $324,914,667, according to figures compiled by The Monc- 
laiy Times. A summary on another page of this issue shows 
that this total is made up as follows: Government (all pro- 
vincial), $125,993,000; municipal, $56,371,391; railroad, $96,- 
600,000; corporation, $46,050,276. In the absorption of this 
large amount, however, Canada participated only to a small 
extent, more than two-thirds, or $223,084,000, going to 
United States investors. 

The amount of Government bonds sold, when compared 
with the five years previous, seems small, but then there 
was no war financing by the Dominion Government. Sales 
of municipal securities exceeded those of the previous year 
by about $28,000,000. The bulk of these bonds were placed 
iii Canada, although slightly more than $10,000,000 found 
their way across the line. The record of municipal sales 
since 1911 shows the following results: 1911, $30,295,838; 
1912, $19,767,365; 1913, $20,550,239; 1914, $34,483,360; 1915, 
$31,910,214; 1916, $19,640,778; 1917, $17,955,714; 1918, $41,- 
860,361; 1919, $26,274,089; 1920, $54,271,391. 

Railroad and other corporation securities' increased 
greatly over the previous year. All of the railroad bonds 
were sold in the United States, while the greater part of 
the corporation bonds was disposed of across the line. 

A feature of the bond sales in 1920 was the large num- 
ber of municipalities which successfully arranged their own 
financing. Two Provinces, Alberta and Saskatchewan, are 
also included in the list of domestic loans. 



A conservative estimate of local loans during the year, 
including those made by a large number of western school 
districts and rural municipalities, which have not been heard 
from, would be about $7,000,000. This amount seems small 
as compared with the total of all bond sales, but it is the 
largest on record. 

In addition to the 6 per cent. 10-year bonds, the Province 
of Alberta also disposed of a considerable amount of savings 
certificates. The exact amount sold during the year has not 
yet been ascertained, but up to the end of November the 
total was $1,074,274, as compared with $681,029 for the whole 
of 1919. 



Ont. 



Issue 
Woodstock, Out. 
Kitchener, Out. 
Lanark Count.v 
Oweu Sound, Out 
Exeter, Out. 
-Hanover, Ont. 
Cote Ste. Mlcln-1, ijn 
Xorth Battleford, .s.is 

Regina. Sask 

Whitewood, Sask 

Grand Prairie, Alta. 

Traii, B.C _ 

Godericli, Ont 

County of Ontario - .- 

Guelpli, Ont 

Milton. Ont 

Brantford, Ont 

Cobourg. Ont. ._.. 



65,000 
100,000 
100,000 
SS.OOO 
50.1100 
45,000 



Inter- 
Price at est 
Maturity whicli sold cost 
15 years 



20 instal. 
15 years 



400,000 

s. notes) 30,000 

61,000 

._ 3,000 

13,000 

9,000 

10,000 

50,000 

_ 16.225 

S2,000 

_ 600,000 

50,000 

Hamilton. Ont _ 475,000 



15 years 
10 years 
20 years 



Chatham, Ont 100,000 

Halifax, N.S 500,000 

HaUfax, N.S 300,000 

Halifax, N.S 43.000 

Stamford Township, Ont 22,000 

Province of Alberta _ _ 500,000 

Province of Saskatchewan 1,600.000 

Province of Saskatchewan 380.000 

Moncton, N.B 300,000 

London, Ont 265,000 

Moose .Taw. Sask 22,000 

Moose .Taw, Sask. (schools) 64.000 

Halifax, N.S 550,000 



6 20 years 

6 30 instal. 

6 20-yr. ser. 

6 20 instal. 

Vo-e 20 instal. 

6 15 years 

6 10 years 
33 years 
10 years 
10 years 
10 years 
7 years 
30 years 
10 years 







100.00 
100.00 


6.00 
6.50 






100.00 


7.00 






92.00 
98.00 
100.00 


7.28 
6.00 


100.00 


6.00 
6.50 


100.00 


6.00 
6.50 




6.00 



iVz 



100.00 
98.16 
92.85 
98.16 
98.00 
100.00 
100.00 

ino.oo 



6.00 
6.25 
6.26 
6.00 
5.00 
S.OO 



514 



15 years 
10 instal. 
10 years 



86.40 
100.00 
95.365 



CORPORATION 

JANUARY 

Drummond Apartment Biiildinfls 

FEBRUARY 

ReRina Trading Company 

MARCH 

Canaiiian Tungsten LampCo.. Ltd.. guaranteed 

by Can. Gen. Electric Co 

St. John Drydock & Shipbuilding Co . Ltd 

APRIL 

Ames Holden Felt Company. Limited 

McCormicli .Manufacturing Company, Limited 

Uniied Grain Growers 

Acadia Sugar Refining Co 

Granby Consolidated Min. Smelt. & Power Co. 
Bell Telephone Co- of Canada 

MAY 

Ames Holden Rubber Boot Company 

.•\bitibi Power & Paper Company 

JUNE 

Ontario Smelters & Refiners. Limited ... 

.Northern Light Railways Company 

Howard Smith Paper Mills, Limited 

Shawinigan Water & Power Co.. Limited 

JULY 

Kaministiqua Pulp & Pap. Co. (1st mt. ski. fd.). 

AUGUST 

Manouan Pulp I'i: Paper Co. (convertible deb.) 
Manouan Pulp & PaperCo. (1st nit. skg. fd. bds) 
Western Canada Pulp & Paper Co 

OCTOBER 

Paramount Victoria Theatres. Limited 

Benson-Hines London Hotel Company 

Ottawa Light, Heat &- Power Company 

.Massey-Harris Company. Limited 

NOVEMBER 

St. Francis Power Company. 

Dominion Power & Transmission Co.. Ltd 

DECEMBER 

Kiordon Company. Limited 

Moimt Royal Hotel (convertible deb.) 

K. & S. Tire and Kubber Goods Company 

Canadian Western Steamships Company 



8 
650.000 



375,000 

600.000 

750.000 

2.000,000 

2,500.000 

5.500.000 



250,000 

300,000 

450,000 

4,000,000 



600.000 
1.750,080 
1.000,000 



300,000 

600,000 

1.200,000 



6,500.000 

4.000 000 

300,000 

850,000 



20 years 
20 years 
20 years 
serials 



15 years 
20 years 

20 year serial 
10 years 
15 years 
6 years 



15 years 

25 years 

20 year seri: 



20 years 

1923 
15 years 



Approx 
Int. 
Basis 



7.00 


7.00 
6.75 


7.00 
8.00 



Royal Securities Corporatic 
Bell St Mitchell 



Thornton, Davidson & Company 

Nesbitt. Thomson & Company 

Sun Life Assurance Company 

Graham. Sanson & Company and Syndicate 

New York 
Royal Securities Corporation and Syndicate 



Tanner. Gates & Company 



raham. Sanson & Company 



ATlus Bond & Security Company 
Ulas Bond & Security Company 
Graham. Sanson & Company 



Burdick Bros.. Ltd. Offered with bonus of 50% com. 

Brent, Noxon & Company 

Royal Securities Corporation and Harris, Forbes & 

Company, Incorporated 

VVm. A. Read & Company 



al Securities Corporation and Syndicate 

N. A. MacDonald & Co. 
Richardson. Sheppard & Thorburn 



1,750,000 
2,500,000 
S,.'iOO,000 



4,000,000 
125,000 



1,200,000 
4.000,000 



600.090 
6.500. UOO 



Janiiary 7, 1921 



THE MONETARY TIMES 



87 



CANADIAN BOND SALES IN 1920 



PROVINCIAL 



JANUARY 

ish Columbia.. 



FEBRUARY 

New Brunswick 



Saskatc;he\< 
Ontario .... 
Ontario... 



MAY 

IVlanitoba (Farm Loans) 

Manitoba (Rural Credits Treas. Bills). 

.Manitoba 

Nova Scotia 

Nova Scotia 

■New Brunswick 

Alberta -. 



JUNE 

British Columbia 
Ontario 

JULY 

British Columbia 

British Columbia 

Quebec 

<Juebec 

Ontario (Treas. Notes) . 
Ontario 



AUGUST 

Nova Scotia 

Manitoba 

.Alberta 

British Columbiii 
Manitoba 

SEPTEMBER 

.Alberta University 
Saskatchewan.. 

OCTOBER 

British Columbia 



NOVEMBER 

Ontario 

Nova Scotia. 

Alberta 

Manitoba 

DECEMBER 

Ontario 



Nc 



Br 



MUNICIPAL 



ONTARIO— January 

Flamhorn Township. East 

Kitchener 

Kitchener 

Etobicoke Township 

Bridgeburg 

Toronto (Harbour Commis: 
Issues under .?2S,(X)0 

February 

Midland 

Carleton County 

Whitby Township. East . . . 
Charlottenburg Township 

Woodstock 

Renfrew County. 
Issues under $2.S.0(XI 



S 
■i.4S0,(X)() 



,^0(1.1100 
2.498.000 



2.850.000 
3.500.000 
3.500.000 
5.000.000 



500.000 
1. 000.000 
2.0(10.000 
B.SOO.OOO 



500.000 
1.000.000 { 
2.000.000 I 

800,000 
2,200.000 
2.800.000 j 
3.000.000 ! 



I. .100.000 
L.VIfl.Oflfl 
2..'!flfl.n00 

2 ,sno 000 
i; (Kin 0011 

.S,(10fl ()0(l 



.wio.non 
7'J.';.(ioo 

2.000.000 
3.000.000 

^..sflo.nno 



1.000.000 

.sonono 
7.w,ooo 

3,000,000 
3.000.000 



5,000 000« 

2.000.000 
1.000.000 
750.000 i 6 



2!l,5(i8 
4B.,'i()0 

.TD.dOO 

.sn.ooo 

.so.ooo 

J.ooo.ono 

61.934 



30.000 
40.0(10 

m.ax) 

lOO.OflO 
I.SO.OdO 
W.Xtl 

;.T2-.'.;t,i4 



25 years 
10 years 



5 years 
5 years 
5 years 



3 years 

4 years 
15 years 

5 years 

3 years 
4 months 
S years 
5 years 
■ 5 years 
10 years 
3 years 



.■» years 
5 years 
to years 
5 years 
6 months 
10 years 



6 months 
10 years 
5 years 
5 years 



5 years 
3 years 
5 years 
6 months 
3 years 



7 years 

10 years 
10 years 
10 years 



6.52 
I 6.52 



5.83 i 



20 instalments 
30 instalments 
20 instalments 
20 instalments 
30 instalments 
34 years 
Various 



20 instalments 



30 instalments 

20 years 
30 instalments 
20 instalments 



6.12 
6.05 
6.00 
5.96 
6.28 
6.20 



Purchaser 


Price 
Paid 


Sold in 
U.S. 


Dominion Securities Corporation. 




S 


Wood, Gundy & Company and A. E. Ames & Company 






A. Jarvis \ Company 






A. Jarvis & Company. Canada Bond Corporation. 






Wood, Gundy & Company and R. C. .Matthews & Co. 






J. M- Robinson & Son and the Eastern Securities 
Company. Limited 


9,S.15 






J. P. Morgan & Company. National City Company 
and Harris Forbes & Company 










J. P. Morgan & Company and Syndicate 
Harris. Forbes & Company and National City Company 






•93.87 


3.500,000 


Dominion Securities Corp. and Wood. Gundy & Co. 


•92. S5 


3,500,000 


A. Jarvis & Company and Syndicate 


100.65 


5,000,000 


A. E. Ames & Company 


99.314 


500,000 


A. E. Ames & Co. and Dommion Securities Corp. 


102.20 


1,000.000 


United Financial Corporation. Limited 






Wood, Gundy & Company and Syndicate 


•91.633 


6,800,000 


Wood. Gundy & Company 


100.00 


500,000 
1,000,000 
2,000,000 


Wood, Gundy & Company and Syndicate 


*89.66 


R. A. Daly & Company and Syndicate 


•91.21 


800,000 


R. A. Daly « Company and Syndicate 


101.19 


2,200.000 


A. E. Ames & Company and Syndicate 
A. E. Ames& Company and Syndicate 


97 715 
101.57 




3,000.000 


'Wood. Gundy & Company and Syndicate 


•88.14 


2,000,000 








British-America Bond Corporation and Syndicate 


100.00 


1,300,000 


British-America Bond Corporation and Syndicate 


99.88 


I 500,000 


Bank of Montreal and others 
A. Jarvis & Company and Home Bank 






99.50 


3,000.000 


A. E. Ames & Company and Syndicate 


98.317 


5,000,000 


National City Company. Limited 


101.287 


500.000 








United Financial Corporation. Limited 


96.58 


1.800.000 


Seattle National Bank and Syndicate 


98.91 


3.000,000 


A. Jarvis & Company and First National Company 


•89.66 


4,500,000 


Wells-Dickey Company 


99.25 


750.000 


Wood.Oundy & Company 
Carstcns & Earles. Royal Financial Corporation. 






103.351 


1,000,000 


British American Bond Corporation and 






Gillespie. Hart * Todd 






Carstens & Earles, and Syndicate 


100.73 


1,000,000 


Wood. Gundy & Company 


100.00 




Minnesota Trust & Loan Co.. and Wells-Dickey Co. 






A.Jarvis&Co..andthc Home Bank of Canada, private 




3.000.000 


A. Jarvis & Company. Halsoy, Stuart & Company. 


103.567 


3,000,000 


and the First National Company 






Wood. Gundy & Company. A. E. Ames & Company. 


I04..S33 


5.000.000 


R. C. Matthews & Company and Illirois 






Trust & Savings Company 






Dominion Securities Corporation and Wm. A. 


102.02 




Read & Company 






Harris, Forbes * Company and the National 






City Company 






Wells-Dickey Company and the Minnesota 






Loan 8c Trust Company 






Dominion Securities Corporation & Syndicate 








89,243,000 


.Morgan-Dean Harris & Company 

C. H. Burgess & Company 

C. H. Burgess & Company 

W. L. .McKinnon & Company 

A. E. Ames & Company 
























Various 




C. H. Burgess & Company 


97.67 




A. E. Ames & Company 










Brent, Noxon * Company 






Dominion Securities Corporation 






Wood. Gundy St Company 






Various 







THE MONETARY TIMES 



Volume 66 



BOND SALES (Continued) 



lirottfihl Forward 



Mimico 

Mimico 

Renfrew Town.. 
Niagara Fulls. .. 
Ningara Falls... 

Sarnia 

Sandwich 

Hamilton 

Windsor 



April 

Walkerville 

Chatham 

Chatham 

Toronto 

Issues under $25,000. 

May 

Sarnia 

Walkerville 

York Township 



'ille 



Brantford 

Sandwich 

Toronto (Separate School). 
Issues under $2.'i.00() 



Linci.ln County 

Trafalgar Township.. 

Chatham 

Sudhury 

Sai 



St. Catharines 

County of Renfrew. 
County of Renfrew. 

Kingstiin . 

Sault Ste. Marie.... 

Port Arthur 

Carleton County.... 
Gait 



Gait 

Fort William 

Fort William 

Fort William .. 

Fort William 

Peterborough. . .*. 
Issues under ti.S.OflO. 

July 

Ingersoll 

Cobourg 



Augu«t 



Hawkesbury. 

East Sandwich Township. 

Toronto Township 



■ Tor, 



nto . 



Ca rieton County 

Prescott & Russell 

Oshawa 

York Township 

Stormont. Dundas & Glengarry. 

September 

Laketield. 

Toronto Township 



Milton 

Charlottenburg Township. 
Essex Border Utilities . . . . 



es under S'i.S.OOO. 
October 



Oananoque 

Niagara Falls 

Haltnn County 

Brockville 

Belleville 

Belleville 

Lincoln County 

Waterloo 

Kitchener 

York Township 

Issues under S2S,000. 

November 

Toronto . 



Windsor 

Sarnia 

Niagara Falls. . .. 
Renfrew County. 

Oshawa 

Parry Sound 



2,S,743 
M.OfiS 
40.S4i) 

sn.noo 

100,000 
101.040 
144,932 

752,34,'i 



75,000 
90.000 
130,000 
1 ,90.'i,000 
2S.20.S 



3,S,000 
38,012 
40,000 
45,000 
100.000 
144.933 
200,000 
62,000 



25,000 

37,349 

60,000 

80,000 

90.000 
100,000 
100,000 
125,000 
100,000 
150,000 
142,000 
150,000 
173,000 
190.000 
105,091 

93,247 

20.000, 

80,000 

87,000 
230.000 
500.000 

43.074 Va 



61.000 
75,000 
76,320 
167,005 
78,707 



34,881 
42.000 
74,676 
78.,500 
1.50,000 
•200,000 
220.000 
278,248 
400.000 



33,!i00 
37.000 
45,000 
48.000 
95,000 
117,615 
128,000 
!.300,0fl0 
29,361 



33.000 
33,000 
35.000 
37.500 
3.000 
38,000 
50,000 
95,000 
135.000 
215,280 
38,300 



377..S47 
164.981 
153,955 
150,000 
78,743 
75,000 



AppROX 
Int. 
Basis 



Carried Forward 



30 instalments 

30 instalments 

20 instalments 

20 instalments 

20 instalments 

Various 

Various 

10&20instal. 

Various 



20 & 30 years 

30 years 

10 years 

Serial Various 



10 instalments 
10 instalments 
20 instalments 



1924-29 

15 instalments 

20 years 

Various 

20 instalments 
10 instalments 

20 years 

20 yellrs 

30 years 

20 years 

20 years 

20 years 
20instalments\ 
20 instalments/ 
30 years serial 

15 years 

20 years 
20 & 30 instal. 
20 instalments! 

Various I 

20 years 

30 years 

30 years 

30 years 

30 years 

Various 



10 & 15 instal. 

IS & 20 years 

15 & 20 instal. 

Vai ious 

Various 



20 instalments 
15 instalments 
20 instalments 
20 instalments 

20&40 instal. 
30 instalments 

20 & 30 instal. 

10 & 25 instal. 
10 years 



30 instalments 
20 instalments 
20 instalments 
30 instalments 
20 instalments 
28 instalments 

20 years 

Various 

Various 

Serial 
20 instalments 
20 instalments 

10 years 

20 years ■> 

30 years ) 

lOinst'lments 

20 instalments 

20 instalments 

Instalments 

Various 



Various 
Various 
10 & 20 instal. 
20 instalments 
15 instalments 
30 instalments 



6.25 
6.25 
6.40 



6.75 
6.20 
6.25 
6.25 



6.30 
6.70 
6.90 
6.50 



6.70 
6.70 
6.70 



6.77 
6.53 
6. .53 



6.75 
0.72 
6.60 
6.85 
Var. 



6.60 
6.65 
6.94 
7.70 



C. H. Burgess 8t Company 

C. H. Burgess & Company 

W. L. McKinnon & Company 

nited Financial Corporation. Limited 

nited Financial Corporation, Limited 

Wood, Gundy & Company 

National City Company, Limited 

s. Forbes & Co. and C H. Burgess & Co. 

Wood. Gundy & Company 



National City Company, Limited 

Brent. Noxon & Company 

Locally. 

National City Company and Syndicate 

Various 



W. L. McKinnon & Company 
Wood, Gundy & Company 
A Jarvis & Company 
Bunnell & Company, Brantford. Ont. 

W. L. McKinnon & Company 

National City Company, Limited 

Dyment, Anderson & Company 

Various 



. L. McKir 
A. Ja 
A. Ja 



& Company 

s i*i Company 

s& Company 

A. E. Ames & Company 

Wood. Gundy St Company 

Wood, Gundy & Company 

Brent. Noxon & Company 

A. E Ames & Company 

C. H Burgess & Company t 

C. H Burgess & Company i 

Wood. Gundy & Company 

Wood. Gundy & Company 

Wood. Gundy & CoMpany 

Dominion Securities Corporation 

Brent. Noxon & Company \ 

Brent, Noxon & Company I 

Wood, Oundy & Company 

Wood, Gundy A Company 

Wood, Gundy & Company 

Wood, Gundy & Company 

A. E, Ames & Company 

Various 



Wood, Gundy & Company 
Wood. Gundy & Company 
Brent. Noxon & Company 
Wood. Oundy & Company 



C. H. Burgess & Company 

Wood, Gundy & Company 

Harris, Forbes & Company 

C. Burgess & Company 

R. C. Matthews & Company 

R. C. Matthews * Company 

lited Financial Corporation, Lim 

Wood, Gundy & Company 

A E. Ames & Company 



A. E. Ames & Company 
Wood, Gundy & Company 

C. H. Burgess* Co. 

Wood, Gundy » Company 

A. E. Ames & Company 

A. E. Ames & Company 

Dominion Securities Corporatic 

nited Financial Corporation. Lin 

Various 



A. E. Ames & Company, private 

Wood. Oundy & Company 

C. H. Burgess & Company 

A. E. Ames & Company 



A. Jarvis & Company 
United Financial Corporation. L 
C. H Burgess & Compan: 
A. E. Ames & Company 



Dominion Securities Corporation, R. A. Daly S 

Company. W. A. Mackenzie & Company, 

Harris, Forbes & Company, and the 

National City Company, Ltd. 

W. A. Mackenzie & Co., and R. A. Daly & Co. 

Dominion Securities Corporation 

W A. Mackenzie & Company 

Wood. Gundy & Company 

A, E. Ames & Company 

N. A. Macdonald & Company 



90.13 
89.83 
95.71 
97.82 
93.13 



95.56 
97.77 
97.09 
%.18 
96.53 
93.11 



97.00 
93.50 
89.90 
96.587 



94.33 
94.87 
92.666 
87.51 
92.43 
95.07 
97.79 



93.493 

97 29 

Various 



93.91 
95.26 
96 09 
f92.75 
193 58 
96.50 
94.33 
95.27 
95.78 
Var. 



90.03 
94.87 
94.199 
84.67 



January 7, 1921 



THE MONETARY TIMES 



BOND SALES (Continued) 



February 



St. Aiieustine of Montreal. 

Shawinigan Falls 

Grand-Mere 

March 

Sorel '. ... 

(Juebec 

Montreal C.S. Comm 
St, Honore 



April 

Coteau St. Pierre.. 
tap. de la Madclai 

Uuebec 

SherbrooUe 

June 

Three Rivers. .. 

July 

Drummondville. - 
Outremont C. S. B. 
St. Chrysostome.. . 
Quebec 



August 

Uutrcmnnt (Protestant Schools).. 

Grand 'MiVeCP. S.) 

.Matane 



September 

Llslct 

October 

Kast Angus 

Lachine 

I.achine C. S. B ... 
Sherbrooke 



Thr 

November 

Montreal (Schools) 



NEW BRUNSWICK 

St. John 

.Moncton 

Moncton 

October 

Campbellton . 
Newcastle 

December 

Chatham 

St. John 



NOVA SCOTIA— March 

Pictou County 

Pictou County 

Cape Breton County. 

April 

Truro 

Pictou County 



Carried Forward 



Braunht Fur-ward 

November — Continued . 

Parry Sound 

Ford City 

Etobicoke Township 

Pembroke 

Charlottenburg Township 

Issues under #25,000 

Hawkesbury 

New Toronto . 

December 

Ford 

Oshawa 

Oakville 

Renfrew Town 

YorkTownship 

Walkerville 

Toronto 

Issues under $2.5.000 



QUEBEC— January 

La Tuque 

Verdun 



18.745 
50.000 
25.000 
47.000 
30,000 
fil.OlR 
95,000 
39.335 



5?,B05 
43.791 
111.000 
45.01 fi 
129.fill 
30H.OOO 
I 055 000 

25.000 



200.000 
.50.000 

ifi'.ono 



si.ono 

4ll0.nnii 

7..<0fl 

279,000 



17<.nofl 
2110 000 
1.50.000 



50 000 

un.noo 

175.000 



500.000 
211 .501 

1 00.000 

100.000 



100.000 
tflflono 
203 SOO 



90.000 
787..500 



40,500 
59.500 
75.000 



9»noo 6 

l,T»S.flOO I K 

2,000.000 5j 

70.000 I -6 



.•«3.ono 
00.000 

unn.noii 
.577,000 



Approx 
Int. 
Basis 



15 instalments 


7. 55 


20 instalments 




30 instalments 


6.60 


10&30instal. 


6.80 


30 instalments 


7.02 


Various 




20 mstalments 




10 years 





15 instalments 


7.05 


20 & 30 years 


6.80 


20 instalments 




20 & 30 instal. 


7.10 


10 instalments 


7.00 


15 instalments 


6.93 


1922-1930 


6.60 & 




6.70 


Var. 


Var. 



5 years 
20 years 
9 years 



10 years 
10 years 
5 years , ---- 

40.year serial i 6-30 



10 years 

5 years 

10 instalments 

10 years 



10 years 

30-year serial 

S years 



30 instalments 

20 instalments 
Serials 
10 years 
5 years 
10 years 



10 years 
5 years 
5 years 

10 years 



10 years 
instalments 
20 years 



6.25 
6.00 



6.55 
6.70 
5.90 
6.13 



7. IS 
6.40 
6.60 



6.30 
6.80 
6.40 



6.35 
6.25 



Purchaser 



5 years 

15 year serial 

5 years 6.00 

IS year serial ' 

10 years 



N. A. Macdonald & Company 

Dominion Securities Corporation 

Brent. Noxon & Company 

Brent. Noxon & Company 

Wood, Gundy St Company 

Various 
C H. Burgess & Company 
C. H. Burgess & Company 

Wood, Gundy & Company 
Wood, (.iundy & Company 
Wood. Gundy & Company 
Wood. Gundy & Company 
A. E. Ames <.<: Company 
A. E. Ames & Company 
nion Securities Corporation & Synt 

Various 



Rene-T. Leclerc 
Versailles. Vidricaire & Boulaii 
Versailles, Vidricaire & Boulai: 



Rene-T. Leclerc 

Wood. Gundy & Co. and Dominion Securities Corp. 

Versailles. Vidricaire & Boulais 

Municipal Debenture Corporation 



Hcne-T. Leclerc 

Versailles. Vidricaire & Boulais 

Versailles, Vidricaire & Boulais 

Credit-Canadicn, Inc. and Rene-T. Lecler 



Versailles. Vidr 



Rene-T. Leclerc 

L. G. Beaubien & Company 

J, A. Porrier 

Municipal Debenture Corporatii 



Nesbitt. Thomson & Company 

Rene-T. Leclerc 

lunicipal Debenture Corporation 



Municipal Debenture Corporation 



Canadian Bond Corporation, Montreal 

Renc-T. Leclerc 

Versailles. Vidricaire & Boulais 

Rene-T. Leclerc and Syndicate 

Beaubien Si Company 



Rene-T. Leclerc and Syndicate 
Versailles Vidricaire & Boulais 
Municipal Debenture Corporation 
Municipal Debenture Corporation 



:sCo.. Ltd. and J. M. Robinson &Son! 
. M. Robinson & Sons 
. M. Robinson & Sons 



Eastern Securities Company. Limited 
Eastern Securities Company. Limited. J. M- Robin- 
son & Sons and Mahon Bond Corporation. Limited 
Eastern Securities Company. Limited. J. M. Robin- 
son & Sons and .Mahon Bond Corporation, Limited 



H. M. Bradford 

Private Investors 

Nova Scotia Trust Company 



Eastern Securities Company 



90.68 
99.082 
98.93 



96.69 
93.42 
98.27 
91.13 
95-303 
94.094 



















96. 3S 






100. OO 
98.53 

93.26 

%.50 
97.00 
100.25 
99.00 
















93!6b 













i 






96.80 




95.00 
93.50 
91.75 

98.00 
94.00 
95.33 


























92.04 








100.00 






92.04 
87.07 









90 



THE MONETARY TIMES 



Volume 66 



BOND SALES (Continued) 



August 

Truro 

New Glasgow 

September 

Pictou County 

October 

Kentville 

Bridgewater 

December 

Windsor 



Hroiight Forward 



PRINCE EDWARD ISLAND 

Charlottetown 



MANITOBA— January 

Assiniboia R.M 

Brandon 



February 

Portage la Prairie 

Greater Winnipeg W. D.. 

March 

Conor S. D 

St. Anne R.M 

Dauphin R.M 

Greater Winnipeg W. D. . 
Greater Winnipeg W. D. . 

April. 

East Kildonan 

Assiniboia 



iniboi: 
mipeg 



nder .S25.000 

June 

Pipestone R..\l 

Fort Garry R. M 

Macdonald R. M 

East Kildonan R.M 

Brandon S.D 

Pipestone R.M 

July 

Swan River R..M 

Selkirk- Town 

East Kildonan 

.4ssiniboia R.M 

Winnipeg 

August 

Fort Garry R.M 

October 

.Manitoba Schools.. . 

Woodworth 

G. Winnipeg W. D 

November 

Minitonas 

Issues under under J25.000. 

December 



SASKATCHEWAN— January 

Schools 



February 

Issues under .825,000. 
Schools 



April 

Issues under 
Schools 

May 

Schools 



June 

Saskatoon . . . 

Schools 

Issues under 825.00(1- 

July 

Regina 

Schools 



August 

Schools 

Issues under $25,000. 



15.000 
438,600 

75,000 j 5j 



3,950 

57,263 

35,000 

I.OOO.OQO 

1,250.000 



97.000 

129,262 

6.192 

500,000 

17,000 



13,000 
21,000 
40,000 
33.000 
.iO.OOO 
KO.OOO 



,58,000 
115,000 
150 000 
312,195 
600 000 



24.000 
145,000 
800,000 



100.000 
23,5.50 
32,600 



Carried Forward 



ah I 

Var. 

Var, I 



20 years 
instalments 
30 years 
20 years 
10 years 



20 years 

20 instalments 

10 instalments 

20 years 

Various 



30 instalmen 
25 years 
20 years 
20 years 
30 years 
20 years 



30 years 

3 years 

30 year seria 

10 & 20 instal 

20 years 



30 years 
20 years 



20 years 
Various 
Various 



6. OS 
6.40 
K.14 


6.10 



H. .M. Bradford 



J. C. Mackintosh & Company 



Royal Securities Corporation 



H. J. Birket & Company 
A. E. Ames & Company 
Harris, Read & Company 
Wood, Gundy & Company 
Wood, Gundy & Company 



nd Debenture Corporation 
i. Mackenzie & Company) 
.. Mackenzie & Company I 
. E. Ames & Company 



Harris. Read & Company 

Bond & Debenture Corporatif 

Bond & Debenture Corporatic 

Bond & Debenture Corporatic 

A. E. Ames & Company 

Harris, Read & Company 



Strang & Snowden 

Bond & Debenture Corporation 

Strang & Snowden 

A. E. Ames lV Company 

National City Company. Limited, and Syndicate 



J. A- Thompson & Company 

Strang * Snowden 

A. E. Ames & Company 



Various 
W. A. Mackenzie & Company 



97.25 
90. 00 



96.50 
95.00 



94.30 
88.27 






*87.25 


750,000 


94.38 




•87.25 


1,250,000 


91.295 






Various 
89.00 


Var. 










^ 


86.00 




1 










95.1.55 













90.093 








1,02.09 


800,000 








2.800 000 


























Various 








Various 












Various 





January 7, 1921 



IHE MONETARY TIMES 



91 




Our 

Investment Service 

is at your disposal. 



Send us your name 
to he added to our 
Mailing List. 



The National City Company 



Bonds and Investment Securities 

Canadian Headquarters . 
74 Notre Dame Street West, Montreal 



10 King Street East 
Toronto, Ont. 



McCurdy Building 
Halifax, N.S. 



92 



THE MONETARY TIMES 



Volume 66 



BOND SAUES (Continued) 



Approx 

FNt. 



September 

Chester 

Schools 

October 

School Districts 

Saskatoon 

Issues unilcr $25,000. 

November 

Schools 

Moose Jaw 

Chester R.M 

December 

YorUton 

School Districts 



ALBERTA— January 

Nanton 



129,000 
48,887 
27.287 



53.100 

100,000 

9.500 



1.944.562 
6,000 



February 

Spirit River 

Edmonton 

June 

Edmonton 



August 

Rural School Districts. 



September 

lonton (. Motes). 



124,000 

250.000 

2.130 000 



October 

Medicine Hat . 



BRITISH COLUMBIA— January 

North Vancouver 

February 

Prince Rupert.. 

March 

South Van 
Greater Vane 
Victoria 

April 

Victoria. 

May 



June 

Grand Forks. . . 

July 

Point Grey. 

August 



225,000 
150.000 



227.000 
510,000 
126.4SS 



74.609 
75.000 
55,000 
135.000 



September 

Prince George 

October 

Courtenay 

December 

Victoria 

Prince Rupert 



RAILROAD 

JANUARY 

Canadian Northern Railway 

MARCH 

Canadian Northern Railway 

Canadian Pacific Railway 

MAY 

Canadian Nat. Railways (equip, trust cert). 

OCTOBER 

Grand Trunk 

NOVEMBER 

Canadian Northern 



12.000.000 
12.000.000 

15.000.000 

25.000.000 

25.000.000 

96.500.000 



Various 

10 years 

10 instalments 



Var. I Various 

I 

6A 10 instalments 

) 

6 ; 15 years 
5i 10 years 



5 years 



2 years 
2i years 
Various 



3 years 
30 years 



2 years 

3 years 
Various 



Various 
20 years 
20 years 
20 years 



20 years 
Various 



3 & 5 years 
12 year serial 

15 years 

20 years 

20 years 



6.50 
6.55 



7.01 & 
6.96 
6.75 

7.10 

7.00 

7.00 



International Loan Company 



Various 
Saskatoon Sinking Fund 

Various 



Various 
Woods. Gundy & Compar.y 
International Loan Companj 



Strang & Snowden 



S. T. Armstrong 



W. Ross Alger & Company 

W. Ross Wgt-r and Morris Bros. 

Morris Bros.. Portland 



British-American Bond Corporation 
Treasury Certificates 



Wood. Gundy & Company 

Brent, \oxon & Company 

Pemberton & Sons 

Pemberton A Soi 
ons and Royal Fin 

National Bond Corporatit 

Pemberton & Son 

Spitzer. Rorick & Co. 



W. A. Read & Company 

W. A. Read & Company 
Guaranty Trust Company and Syndicate 

W. A. Read & Company 

W. A. Read & Company, and Syndicate 

Wm. A. Read & Company and Associates 



94.00 


227.000 
510.000 












































737.000 



1,525.000 
200,000 



124.000 

250.000 

2.130,000 



12,000,000 
12,000.000 

15,000,000 

25,000,000 

2,'>.0OO,O0O 
%.S00,000 



January 7, 1921 THEMONETARY TIMES 93 



CANADIAN BOND 4 MORTGAGE COBPORATION 

TRUST AND LOAN BUILDING, WINNIPEG, MAN. 



Subscribed Capital 


$655,800.00 




Paid-up Capital and Reserve - 551,758.96 


President 
J. C. McGAVlN 


Vice-President Managing Director 


A. R. DAVIDSON W. W. EVANS 


Secretary 


R. F. McMILLIN 


Directors 


E. W. KNEELAND W. H. McWILLIAMS G. W. MATHESON J. M. WILEY 


FIRST MORTGAGES ON IMPROVED REAL ESTATE. 


CANADIAN & GEI 


NERAL SECDRITIES, LIMITED 



TRUST AND LOAN BUILDING, WINNIPEG, MAN. 
Subscribed Capital - - - $450,000 

President Vice-President 

A. R. DAVIDSON J. C. McGAVIN 

Vice-President and General Manager 
W. W. EVANS 

Directors 
R. T. EVANS ANDREW KELLY H. B. LYALL W. L . ROSS 

INVESTMENT SECURITIES. 

Associated with WM. L. ROSS & CO., Inc., Chicago. 
Correspondents Toronto, New York and l^ondon, England. 

TRADERS FINANCE CORPORATION, Limited 

TRUST AND LOAN BUILDING, WINNIPEG, MAN. 
Authorized Capital ... - $3,000,000 

President Vice-President 

A. B. HUDSON, K.C. J. C. McGAVIN 

Managing Director 
W. W. EVANS 

Directors 

E. W. KNEELAND ANDREW KELLY R. T. EVANS A. R. DAVIDSON 

SIR DOUGLAS CAMERON 

COMMERCIAL PAPER. 



94 



THE MONETARY TIMES 



Volume 66 



SUMMARY OF CANADIAN BOND SALES IN ALL MARKETS, 1907-1920 



Bonds 


Sold in 
United 
States 


Sold 
Canada 


Sold 

in 

Canada 


Sold in 
United 
States 


Bonds 


Sold in 
United 
States 


Sold 
Canada 


Sold 
Canada 


Sold in 
United 
States 


January 


1919 

$ 

3,315,000 


1919 

$ 
2,310,000 
1,325,077 
4,004,000 
1,333,330 


1920 
$ 


1920 

$ 

8,950,000 


July 

Government... . 

Municipal 

Railroad 

Corporation ... 

August 

Government. . . . 


1919 

$ 
75,000,000 

225,000 
10,000,000 

925,000 


1919 

$ 

"3,313,32i' 


1920 ' 1920 

$ i $ 

5,000,000! 13.H0O.0OO 




3,404,077 
"650,000 


2,718,380 




Railroad 


8,750,000 
2,666,670 


7,500,000 




Corporation . . . 


4,025,000 


375,006 


125,000 
13,925,000 


February 

Government 


14,731,670. 


8,972,407 


4,054,077 


16,450,000 


86,1.50,000 


7,338,321 


8,093,380 


1,550,000 
1,750,000 


900,000 
4,1.32,067 


500,000 
1,443,405 


2,498,000 
2,275,000 


3,500,000 




200,000 10.595.000 




1,243,871 


2,900,430 




Railroad 






Corporation. . . . 


1,000,000 


9,300,000 


160,000 




Corporation . . 

September 

Government. . . . 


750,000 


1,000,000 


3,250,000: 100,000 






4,300,000 


14,332,067 


2,103,405 


4,773,000 


4,250,000 


2,243,871 


6,.350,430 10,695,000 




775,000 
315,000 


2,805,000 
1,913,951 




14,850,000 

1,987,000 

24,000.000 


500,000 


250,000 
699,038 


3,000,000 750,000 
877,676 4 804,000 


Municipal 


6,659,566 


Railroad 


Railroad 




Corporation 


1,655,000 


1,115,276 


Corporation . . . 

October 


3,500,000 
















5,554,000 


April 

Government. . . . 


1,090,000 


7,373,951 


7,774,842 


40,837,000 


4,000,000 


949,038 


3,877,676 


3,100,000 
435,000 


2,900,000 
1,115,052 


2,000,000 
4,962,368 


8,300,000 








9.250,000 


Municipal 




194,200 


3,517,354 


Railroad 






25,000,000 
5.9011 ono 






2,200,000 


1,975,000 


9,750,000 






900,000 






November 

Government.. . . 

Municipal 

Railroad 










• 3,535,000 


6,215,052 


8,937,368 


18,050,000 




194,200 


4,417,354 39,450,000 


May 

Government. . . . 
Municipal 






5,000,000 
.•iO.OOO 


500,000 
1,18,3,101 


2,800,000 
915.745 


9,500,000 


53,250,000 
1,677,000 


631,032,000 
1,134,521 


5,386,424 


8,750,000 


Railroad 




15,000,000 
1,000,000 


25,000,000 
600,000 


Corporation . . 


577,000 


2,723,666 4,000,000 


Corporation . . . 

December 

Government 

Municipal 

Railroad 


600,000 


2,350,000 


200,000 




5,627,000 


4,406,101 1 7,715,745 


25,500,000 


55,527,000 


634,516,521 


5,.586,424i 34,-350,000 


Government. . . . 


2,510,000 
1,626,000 
6,800,000 
1,500,000 


4,677,000 

2,929,335 

700,000 

6,625,000 


3,000,000 
3,949,411 


2,000,000 
200,000 


6,800,000 


3,700,000 
1,012,555 


20,250,000 
9,570,555 




Municipal 

Railroad 


800,000 


Corporation . . . 


1,000,000 


4,000,000 


Corporation . . . 




200,0OC. 


5,156,666 6,5oo,66o 




12,436,000 


14,931,335 


7,949,411 


6,200,000 


6,800,000 


4,912,555 


t34970,555 7,300,000 



Sold in 


Government 
1919 1920 


Mun 
1919 


cipal 

1920 


Railroad 
19)9 1920 


Corporation 
I9I9 1920 


Totals 
1919 1920 




S 

649,07'1.0OO 
156,300.000 


s 

36,750,000 
89.243.0OU 


2U.1%.089 
6,078,000 


46,305.391 
10,066,000 


9 

4.704.000 
25,550,000 
5.105,133 


* 


$ 

31,411,330 
11,518.670 


$ 

18.775,276 
27,275.000 


705,385,419 

199,446,670 

5.105,133 


101,830,667 
223.084,000 




96,500,000 


United Kingdom 




. 
















805,374.000 


125,993.000 


26,274,089 


56,371.391 


35,359,133 


96,500,000 


42,930,000 


46.050.276 


909.937,222 


324,914.667 



Year 


Sold in f,"'."^ '" 

Canada ^^"''^'^ 
Kingdom 


Sold in 
United States 


Total 


Year 


Sold in 
Canada 


Sold in 

United 

Kingdom 


Sold in 
United States 


Total 


1907 
1908 
1909 
1910 
1911 
1912 
1913 


$ $ 
14,761,683 63,095,057 
24,585,140 165,455,031 
60,4.33,964 194,356,788 
39,296,462 188,070,128 
44,989,878 204,269,143 
37,735,182 204,236,394 
45,603,753 277,470,780 


$ 

4,779,000 

6,316,350 

10,367,500 

3,634,000 

17,5.53,967 

30,966,406 

50,720,762 


$ 
82,635,740 
196,3.56,521 
265,158,252 
231,000,590 
266,812,988 
272,937,982 
373,795,295 


1914 
♦1915 
♦1916 
1917 
1918 
1919 
1920 


$ 
32,999,860 
114,275,214 
102,938,778 
546,330,714 
727,446,361 
705,385,419 
101,830.667 


$ 
185,990,6.59 
41,175,000 
5,000,000 
5,000,000 
14,600,000 
5,105,133 


$ $ 
53,944,548 i 272,935.067 
178,606,114 ! 335,106,328 
206,943,764 **356,882,542 
174,708,.365 : 726,0.39,079 
33,310,000 775,356,361 
199,446,670 909,937,222 
223,084,000 324,914,667 



the war commenced to the end of 1916. The 



"Included in this sum are 88,000.000 of a total of 850,000.000 Canadian bonds repurchased in United Kingdom 
inclusion of the 842,000.000 of unclassified repurchases brings the total of Canadian bond sales in 1916 to $356,000,000. 

*ln the above tables it has been estimated that of the first Canadian war loan of $100,000,000 "in November, 1915, 825.000.000 wa: 
loan of SIOO.000,000 in September. 1916. 830.000.000 in the United States: third loan of 8150,000,000 in March, 1917, 825,000,000 
(allotted) of 8400.000,000 in November, 1917,810.000.000 in the United States, fifth loan 825,000,000 in the United States. 

tlncluded in the December figure is the amount of domestic loans made during the year, totalling approximately 87.000,000. As most of these loans were made over 
an indefinite oenod, it is not possible to classify by months. 82.100.000 of Saskatchewan rural telephone bonds, the approximate amount sold during the year, is 
also shown in the December Municipal total. 

Note.— In addition to the above loans, advances for war purposes have been made to Canada by the Imperial Government, and Canada has established credits 
here for the British Government. These loans are not included in the above figures. 



January 7, 1921 THEMONETARYTIMES 95 

llllliillllllillllllillllllllllllllllllilllMIW 






w 



E have at all times a select list of high-grade Government 
and 'Municipal Bonds suitable for the investment of : 

PERSONAL FUNDS ESTATES TRUSTEES 

MERCHANTS' OR MANUFACTURERS' SURPLUS FUNDS 

AMERICAN FUNDS ON DEPOSIT IN CANADA 

INSURANCE COMPANIES 

We can solve your investment problems. Consult us. 



W. A. MACKENZIE & CO. 

Government and Municipal Bonds. 
42 KING STREET WEST 

TORONTO - - CANADA 



!;iiiii{|iiiiiiiiiiffliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiH^^^ 



■iiiiiiwiiniiiiiiiimiiiiiiniiiiiiiiiiiiiiimii^ 




THE NATIONAL CITY COMPANY of NEW 
YORK which established Canadian Offices in 
MONTREAL, TORONTO and HALIFAX 
early in 1919, have the honour to announce the 
formation of the following Canadian Advisory Board. 



RT. HON. LORD SHAUGHNESSY, K.C.V.O., Chairman. 
SIR JOHN AIRD, EDSON L. PEASE, 

MARTIAL CHEVALIER, SIR AUGUSTUS NANTON, 

SIR LOMER GOUIN, K.C.M.G. W. N TILLEY, K.C. 

LT.-COL. HERBERT MOLSON, C.M.G., M.C. 



THE NATIONAL CITY COMPANY 

Limited 

Canadian Head Office : 
74 Notre Dame Street West, Montreal. 



10 King Street East, 
Toronto, Ont. 



McCurdy Building, 
Halifax, N.S. 



THE MONETARY TIMES 



Volume 66 



REGINA 




The Financial and Commercial Centre of Saskatchewan, 
the Grain-Growing Province of the Dominion. 



Population 40,000. 



The City is growing Solidly and Steadily. 

Surplus of Assets over Liabilities, Five and a Half Millions. 



ASSESSMENT 1920 

Total Assessment $58,406,459 

Less Exemptions 15,190,300 

Net Assessment $43,216,159 



POST OFFICE RETURNS 

1916 $ 6,377,986 

1917 9,695,520 

1818 10.161,003 

1919 11,364,420 

1920 (10 mos.) 9,894,465 

BUILDING PERMITS 

1919 $1,699,020 

1920 (10 mos.) 2,448,720 



BANK CLEARINGS 

1916 $124,349,589 

1917 169,800,113 

1918 184,624,631 

1919 210,898,989 

1920 (11 mos.) 208,613,656 

EARNINGS CITY UTILITIES 



1916 $674,595 

1917 716,914 

1918 781,084 

1919 958,494 

1920 (10 mos.j 857,618 



Manufacturers and Wholesalers 

REGINA has a model wholesale and industrial area, planned and developed to give every advantage 
to manufacturers and distributors. The district is served bj' spur track system linked with the three 
transcontinental railways. It has pavements, water, sewer, electric light and power, and street railway 
services, all of which are owned and operated by the City. Some seventy new businesses have located 
here since the beginning of the war, and the City still holds nearly Two Million Dollars of Property in 
this area which is available for manufacturing or warehouse sites on attractive terms to bona fide firms. 

Detailed information concerning the above will be furnished promptly on application. 

CITY COMMISSIONER, Regina. Saskatchewan 
■■■■■■■■■■■■■■■■■■■■■■■■■■BBBHBBBHHaaBaHHBHHHBaHHHBHaHHaHBHBHBI 



January 7, 1921 



THE MONETARY TIMES 



MONTHEAI. STOCK KXCHAJNOK 

Comparative Statement of Prices and Sales, January-March 



STOCKS 



KEBRUARY 



7BJ 
64 i 



,i "'«'' 

llAbitibi Com. SO 

^1 " ..Pref. 90J 

Ames-Holden-McCready i om. 

Pref. 

Asbestos Corporation Com. 

Pref. 

Atlantic Sugar Com. 

■ Pref.; 70 

Bell Telephone i ISO 

New Stock 

Brazilian T.L. St P.Co 

British Columbia Fishing & Packing Cu. 

Brompton Com.; 61 

Canada Cement Com. 66 

Pref( 96i 

nada Foundries & Forgings Com. 192 

Pref. ... 

—nada N.W. Lands Com.! 

19 Canada Steamship Lines. Ltd Com. 453 

•• Href. 79 

Voting Trust 

Canadian Pacific Railway 160 

^3 Canadian Car and Foundry Com. 3li 

Pref 86 

^ Can. Consolidated Rubber Co Com 

•' .. Pref. 9S 

dian Converters 47 

dian Cottons, Limited Com. 68 

•« •■ , ■• ■• Pref 

alBlectric 

•*1 Canadian Locomotive - . .Com, 

Pref, 

Carriage Factories Com.: 

Consolidated Min'g & Smelt. Co.. $25 par 27j 

3oCrown Reserve Mining Co 55 

36 Dominion Bridge i 123 

•'7[ Oominion Canners Com. 39 

Pref. 76 

iCoa! Pref 

1 Steel Corporation Com. 62i 

1 1 ron and Steel Co Pref. 95 

1 Textile Com. 104 

Pref. 101* 

i Limited Com 

Pref.' 45 

i Hillcrest Collieries Com.! 36 

Pref 

vard Smith Paper Mills Com 

Pref 

lois Traction Pref 

Intercolonial Coal Com 

• Pref.' 

1 Lake of the Woods Milling Co Com. 165 

Pref. 106i 

•'•.il Laurentidc Co ' 198 

■t6 Lyall Construction Co Coni.l 

}";Macdonald Co.. A.. Ltd Com.] 23 

■^SlMackay Companies Com.: • 75 

M ■■ •■ Pref.i 64* 

WiMaple Leaf Milling Co Com. 137J 



2,787 
2,721 
1,519 
Mi.'; 



543 SOi 2,252 



45} 



I04i 
633 



131 
2.041 
3,151 
1,047 

737j 

144,420 

1,862 

1,471 



2,025 
3,443 
2,676 



13,875 ,^2} 50 



59l 56J 
67 63i 
984 95 



89^ 89i 



4Si 42 
79J 77 



163i 163} 
32t 29} 



High Low Sales 



954 79l 
1254 125 



3,021 

1.2021 
1.135 

78.453 
200 
733 



72} 

51 

684 



10.218 
1.027 

12.442 
7,337 
1,201 

17,031 



1,941 
8,032 
1.164 



92 85i 
97i 83i 



601 
I02i 



3205 694 67 



39:i)ominii 



H Ooodv 



4»i 
321 



79 744 34.680 



6.722 I04i 100 



385 160 IS9i 



209i 192 



! 25 2li . 



.Pref. 

al Cottons. Limited Com 61 

w •• •■ •■ Pref. 1004 

fit Montreal L. H. and Power ! 88» 

•" Miintrcal Loan and Mortgage j 

fifi Ml. nt real Telegraph | IM 

eal Tra 

ries, $100 Par Com 

... Pref. .« 

el and Coal Co Com. 66 

•• ...Pref. 105 

72lOgilvie Flour Mills Co...., Com. 22S 

73| Pref.i 107J 

74;Ontario Steel Products Com.! 28 

TS ■• •• •■ Pref. 

76 Ottawa L. H.&P. 

77 Ottawa Traction.. 

78 Penm 
79 



fi2 Montr 



fiSi National Brewe 

69] 

70] Nova Scotia St« 



I's Limited . 



390 
1.229 
4,499 



, 614 
I 100 
' 90 



594 
100 
84i 



803 75 1.252 



W Price Bros Com.j 

l<li Prov. Paper Com. 

S2| " •■ Pref.i 

81, Quebec Railway.Light, Heat & Power Co. ' 

!<4 Riordon Pulp & Paper Co Com.! 

8,5 " •■ •• ■' Pref. 

86 Russell Motor Car Com. 

87; Pref.! 

Jv^'Sawyer-Massey Com. 

89! ■• •• Pref. 

911 Shawinigan Water and Power Co 

illiSherwin-Williams Co Com. 

il2| •■ •• Pref. 

93 Spanish River Paper & PulpCo. . . Com.l 

94 ' '• ....Pref.i 

•)5' ■' " " ...Pref. 1914 
'Jtii " " " " ...Voucher 
97l Steel Company of Canada, ., Com. 

98 •• " " Pref. 

99 St. Lawrence Flour Mills Com. 

ino " " " Pref. 

101 Tooke Bros Com. 

1112 ■' Pref. 

103 Toronto Railway 

lot Tuckett Tobacco Co Com. 

KM " ■' " Pref. 

lOfiTwin City 

107 Winnipeg Electric 

HIS W;ivaKamack . .. 

Hill > .ihLisso Cotton.. 

Ilii:\\ mdsor Hotel.. .. 
11 Woods Mf>!. Co. 



117} 
94i 



40 I 106 105 

172 215 200 

160 110 110 

150 I 324 30 



10.659 , 123 



67 63i 1.110 



119i lis 
80} 754 



7,098 , 1174 115 



2li 174 
774 65 



2.680 
2,958 
1,370 



91^ 90 



27* 25 



2,705 
6.047 
1,135 , 50 .38 

2.056 , 

963 39} 34 



974 94 



230 160 157 



1.300 2USi 201 



724 
Sli 



824 694 

90i 874 

131 J 120* 

103i 1024 



184} 172 
72 69j 



87} 85 6.977 • 93 89 



207 191 4 8.42S 



217 200 194 
267 no 109 



324 26 
183 171 
1014 100 



,577 ! 165 166 

375 53 51 

16 874 874 

).203 2li 17 

>,026 1224 1173 



884 8li 23.427 



87J 
44 
.554 



61 574 
944 93} 



29 27 
1854 173 



1,140 86 74 



20 ] 104} 102 



195 
lOS 


182 
102 


378 
40 


88 


84 


890 




6.93 


693 


25 




84* 
104 
68} 

118 
147 


834 
104 

85 

il8 ' 
1444 


142 

29 

3.649 

26 

48 


%* 


964 


150 



91 
944 
131} 


90 
80 
122 


44 
37,453 
15,441 



1 12' 



Pref. 



T li E MONETARY TIMES 



Volume 6G 



MONTREAL STOCK EXCHAIVGE 

Comparative Statement of Prices and Sales, April-June 



STOCKS 




1S19 


APRIL 


192 


1 




1919 


MAY 


19-21) 




1919 


JUNE 


1920 








High Low 


Sales 


High 




Sales 


High 


Low 


Sales 


High 


Low 


Sales 


High 


Low 


Sales 


High 


Low 


Sales 




1 AlMt.lM 


Com- 

. . . Pref. 


65i 62 


120 


340 
96i 


286 
95 


2,089 
244 


80 
106 


64 
105 


874 
30 








824 
108 














95 


94* 


20 


107 


434 


S45 


94J- 


10 


2 


3 AmcsHoldenMcCreadv 


Com. 

.... Pref. 


33 28i 
77 73 


3SS 
1,317 








37* 
89 




2,363 
7,380 


132 
109 










6,835 
14,235 










107* 


100 


1,407 


753 


99 


2,111 


96 


83 


1073 


97 


832 


4 




— Com. 


03 55i 


2,223 


82i 


74* 


1724 


67 


57 


3,399 


74 


70 


4854 


80 


68* 


3,597 


89 


72 


4,424i 


5 




...Pref. 


78* 75 


1,621 


•91 


88 


200 


81 


77 


1,031 


88 




215 


88* 


834 


690 








6 




.. Com. 


28* 23 


1.993 


90* 


83? 


27,648 


25 


23 


2,837 


96i 


89- 


21.020 


46ij 


31 


6,616 


136 


924 


> 41,090 


7 




... Pref. 


82 75 


2,350 


120 


115 


242 


93 


82 


2,570 


120 


117 


55 


101 


893 


2,700 


1.56 


125 


2,263 


« 


J Bell Telephone 

10 " ■■ N 

11 Brazilian T.L.& P. Co 














1324 


125 


3,205 




103i 


493 


120} 


111* 


1,006 


1064 


103 


643 


fl 


ew Stock 




































10 


55 52 


4,251 


48^ 


421 


9,538 


,59J 


54 


12,340 


48* 


413 


16,660 


60 


57 


10,618 


48 


42 


9,974 


11 




47i 46s 


165 


60 


57 


72 


54l 


46* 


5,218 


57 


5-21 


175 


54* 
654 


49 


2,725 


53* 


40 


1,981 


12 




Com. 


58i 55 


954 


93 


81 


59,065 


63 


55 


25,-599 


117 


91* 


44,884 


614 


28,401 


14(1 


1134 


80.972 


13 




. ...Com. 


67 64l 


1,683 


69 


65 


4,056 


69i 


66 


4,387 


66 


64 


2,224* 


70 


674 


3,671 


66 


61* 




14 




.... Pref. 


lOli 99i 


894 


95 


9H 


476 


101* 


99j 


711 


93* 


91 


452 


1013 


100 


1,093 


93 


90 


370 


15 














395 


197 


195 


80 


240 


220 


765 


193 


1854 


201 


213 






Ih 




.... Pref. 
— Com. 
Com. 
















89 
784 


89 


25 














11 


IS Canada N.W. Lands 




40 
80 


40 

72 


25 

9,597 


40 
504 


40 

44 


25 
11,289 


:;;;:::::;;. .::;;..., 




18 


45* 43 
80| 77! 


1,076 


71* 


3.514 


52J 


484 


4,934 


763 


M 


3.495 


19 


2? " ■• •■ Vot 
ti Canadian Pacific Railway 


.... Pref. 


4,693 


83* 


SO* 


2,750 


87 


80} 


16,603 


85 


812 


1,493 


87* 


84 


4,381 








21 


ng Trust 






























71i 


68 


660 


21 




135 

65 


135 

55 


50 

1,865 


171} 
33i 


1715 
30 


,50 
2,863 




1674 

47 


1674 
30 


200 
12,230 


?■> 


. . . Com. 


■Ml iS 


1,385 


54 


49 


220 


57 


50 


895 


23 




-Pref. 


90 88 


2,660 


106 


99* 


1,811 


92 


88 


2,840 


993 


98 


925 


99i 


89 


3,795 


99 


96 


1,440 


24 


25 Can. Consolidated Rubber Co 






































■■'5 


.... Pref. 
































57i .50J 


3,297 


75 


68 


1,982 


57i' 


55 


1,627 


69 


63* 


2,815 


58 


56 


1,024 


75 


70* 


2,356 


27 




.. Com. 


86 74i 


5,260 


91*. 


sfiS 


830 


90 


83* 


4,728 


95i 


88 


1.5.30 


85j 


81 


425 


98 


93 


990 


2t 


29 " . , " " . 


. ..Pref. 


87} 81 


548 


78 


77 


147 


86 


85 


381 


80 


773 


146 


86 


83* 


170 


80 


78 


489 










91 
39 

V8t 






116 


108 


1,589 


105 


103i 


427 


114* 


112 


205 


104* 


102 


484 




31 Canadian Locomotive 

S2 , "^ p ^^"^.^^ 


Com. 


67* 62 
91 90 


635 
295 


944 


25 


701 


664 


1,888 








784 
94 
















85* 


60 




157 


87* 


85 


% 


3'> 


. Com 
S25 par 


35 

27 


305 
2,640 


15 

293 


15 
28 


50 

5,229 


34 

27* 


25 
25 


145 
3,328 


15 
31? 


13 

28 


30 
25,069 


284 
263 


22 
25 


372 
1.771 


,33 


34 Consolidated Min'K & Smelt. Co. 


30 26} 


7,100 


34 






41 41 


125 


39 


39 


125 


44 


39 


9,300 


234 


23* 




40 


34 


1,500 














1-23 123 
42 35 


3' 
1,426 


104 

64J 


101 

57* 


1,621 
1,090 




413 


1,120 


101* 
63 


95 
57 


1,470 
1.620 


115 
53 


100 

44 


684 
2,676 


99 

65 


94* 
593 


366 
2,828 


,36 




Com . 


45i 


37 


38 " " 

39 Dominion Coal 


. . Pref. 






80i 


80J 


S 


91* 


91* 


5 


88 


88 


5 


92 


92 


10 


84 


84 


10 


38 


.... Pref. 






90? 


86 


151 


98 


95 


76 


87 


86 


20O 


100 


97 


10 


87 


86 




3a 


...Com. 


62 60* 


10,755 


71* 


66j 


9,443 


633 


60 


22,711 


72S 


63 


11,41* 


68* 


6-23 


52,543 


69j 


59 


11,420 


40 




Pref 


97* 96 


227 


89 


87 


120 


100 


96i 


302 


88 


86 




99* 


97 


223 












.. Com. 


ll5i 107 


5,880 


130 


126* 


2.788 


119* 


112 


6,319 


132* 


126 


2.230 


116* 


108 


1.914 




1284 


3,031 








106 106 
123 12j 
56 54 


55 


104 

35 
95 


103 


191 


105« 


104 

1-23 


114 


1044 


100 


66 


106 


102j 


191 


105 

3?i 


102 
324 


55 
50 


4a 


44 Goodwins Limited 


— Com 


44 


















265 


83 


82 


35 


45 


46 Hillcrest Collieries 

48 Howard Smith Paper Mills 

49 

50 Illinois Traction 

51 Intercolonial Coal 










51 


44 


810 


55 


55 


5 


.50 


48 


215 


56 


55 


25 


46 


....Pref- 
.. Com- 








80 
71 


SO 
65 


25 
355 


130 


















4- 




70 


74^ 


8'2S 


75 


6.978 


81 


72 




1.19 


130 


2,232 


48 


... Pref- 

...Pref- 

— Com- 

Pref . 




100 

70 


98 
t9 


213 
71 


Sli 
80 


811 
80 


210 

1 


102 
69 


98 
68 


735 
56 


95 
80 


85 
80 


275 
1 


102j 
69 


100 

67* 


3,53 
160 


4'^ 




50 












--• ; 




52 


5» Lake of the Woods Hillmg Co. 


Com. 

...Pref. 


162* 160 
lOB* 106 
207J 205i 
H8 64 


120 

136 

1,875 

102 


200 
104 


187 J 
103* 


604 










102} 










102 


100 


11 


,54 


55 Laurentide Co 




225i 
71 






















55 


. . . .Com. 


84 


67 


1,110 


05 


805 


71 


55 


785 


82 


66 


3,753 


76 


58* 


1,428 


56 


SV.Macdonald Co.. A-. Ltd 

58 Mackay Companies 

60 Mapie Leaf Milling Co 


. , , Com. 


■24 23 
76 74 


555 




















34S 




















79* 


7SJ 










70 


70 


12 


58 


...Pref. 
...Com. 
. Pref. 
.Com. 




68* 


68i; 


5 


















59 


150 137 

99 99 
72J 65 


2,876 

1 

265 






2.556 




169 




490 


161i 


161i 


20 


60 












105 
68 


105 
67* 


1 
146 








61 


62 Alontreal Cottons. Limited 


83 


82 


135 


71* 


69 


951 


813 


81 


25 


82 


79* 


175 


62 


... Pref. 


103 102* 
93 894 




105 
88 
































64 Montreal L. H. and Power 


6,387 


m 


4.017 


92 


89} 


9,508 


85 


83.* 


3.722 


904 


8S 


4,960 


87S 


824 


5..375 


64 




IS3i 153J 
120 120 




































66 Montreal Telegraph 


147 


118 
1444 


118 
144 


52 


12! 


120 


.54 


118 


115 


123 


12S 
ai14| 
169 


125 
1143 
128 


37 


118 


118 


100 


66 


68 National Breweries. $100 Par... 

69 " " ■' . . . 

70 Nova Scotia Steel and Coal Co. 


Com. 
.... Pref. 


78 30 
92 68 






734 


46,741 




21,983 








68 


2,845 


96^ 


96 


21 


99 


90 


1,559 


95 


95 


1 


98* 


97 


175 


93 


93 


4,50 


69 


Com. 

....Pref. 


66 G6 


190 


S7j 
107 
240 


673 
105 
235 






























38 
135 


107 
2.57 


105 
216 


27 
1,951 


235 


233 


ii3' 


110 
260 


107 
2,50 


32 

. 458 


103 

234 


103 
225 


,5 
113 


71 


219 195 


592 


72 


73 " " '■ 


.. Pref. 


110 109- 


113 


10.^* 


105 


76 


109 


107 


16 


105 


104 


80 


110 


108 


134 


104 


994 


113 


71 


...Com. 


28 27 


110 


58J 


56* 


755 


35 


27 


1,225 


68 


55 


2.012 


363 


31* 


1,645 


ri 


67 


1,584 


74 




. . Pref. 












75 
81 


75 
81 


125 
1 






















/6 Ottawa L. H . & P 


82i 82i' 


156 


81 


77* 


142 


80 


793 


36 


823 


82 


33 


79 


79 


4 


76 




















68* 
124* 


684 
118 


20 
651 














r, 


78 Penman's Limited 


Com. 


95 90* 


1,828 


121 


118 


815 


95 


92 


1,150 • 


95 


93 


205 


1314 


121 


997 


78 


Pref. 


93 92 


211 


90 
335 
132 


90 
285 
130 


30 
830 
30 


93 












9l4 




















310 
125* 


300 
125 J 


505 
20 






367 
92 
91 
31* 


310 
92 
91 

24.; 


1,099 

10 

5 

31,176 


80 


81 Prov Paper 


Com. 

. ...Pref. 
ower Co. 






55 


53 


125 


81 




90 
20* 


88 
18 


70 
4,749 


K 


83 Quebec Railway^ Light, Heat & P 

84 Riordon Pulp & Paper Co 

85 " " " '■ 

86 Russell Motorcar 


21| 18 


3,560 


27 


21* 


4.965 


26 


21J 


6,249 


21} 


184 


5,481 


83 


Com. 


121 117* 


1,479 


180 


150 


4.379 


131 


119 


3,030 


197 


1493 


















... Pref. 
- , . .Com. 


95 95 


5 


lOOi 


100 


100 


99i 


97 


292 


994 


954 


176 


100 


98 


152 


99 


88 




S3 

86 


8?! " " " 

88 Sawyer-Massey 


.... Pref. 
.... Com. 
...Pref. 








■■i4J 


■■i4i" 


.s" 






88 












S< 


90 Shawinigan Water and Power Cr 

91 Sherwin-Williams Co 

92 " " 

93 Spanish River Paper & PujP Co.. 
9<! ". !'. .'. 


I20J 116i 
60 60 
100 99 










127* 


1?1A 


10,395 


106* 


105 


2.096 


125 


121 


2,124 


114 


106 


2,700 


90 


. , . Com. 
Pref. 


72 
191 


75 
93 


75 
91 


35 
22 




















105 


78 


270 


91 


100 


99* 


106 


93 


91 


107 


102 


100 


45 


92 


90 


61 


92 


. . . .Com. 


20i 19 


3,025 




80 


28.362 


27* 


19 


32.596 


96 


84i 


16,850 


424 


26* 


55,432 


108* 


94 


54,744 


93 


...Pref. 


82 78 


1,121 


144i 


130 


28,556 


106 


80* 


23,531 


13.5* 


1281 


4.230 


110 


llOi 


16,484 


149 


103* 






Pref. 1914 
Voucher 
Com. 












95 


71 


1,525 








100 


94 


1.605 








9.' 






86| 


5* 
77 


392 
12,504 


6i 
78 


6i 
75 


85 
5,180 ■ 


7i 
78 


6 

94i 


312 
4.192 


96 


97 Steel Company of Canada 

98 " " " ' 

99 St. Lawrence Flour Mills 

loo " " " 


66 6U 


7,311 


6S* 


62* 


11,455 


73| 


65i 


•37,980 


97 


Pref. 


97* 93* 


445 


984 


97 


540 


98i 


97 


411 


971 


954 


218 


984 


97 


Svl7 


97 






Com 


94 90 


1,878 


110 


106 


170 


110 


92* 


11,524 


106 


984 


477 


113 


1064 


2,585 


99 






99 


.... Pref. 


88 S5 


62 


95i 


95 


107 


92* 


88 


18 


9.-. 


95 


5 


97 




35 












28 26 
76* 75 


64 
327 


70 
88 


70 
87 


6 
250 


40* 
86 


30 
76 


1,131 
1,150 


69 
86* 


67 
86* 


500 
70 


43 
86 


.35 
85 


1.150 
265 


90 


84 


225 




'02 " " 


.... Pref. 


102 








53 

5B* 
85 


433 
50 
85 


412 
630 
10 








444 
51 
85 


42 
46 
85 


308 
230 
.50 


4Sj 
40 
88 


40 
38 
88 


774 
15 
10 


424 
50 
873 


39 
.50 
85 


:i4i 

75 
55 


io;- 






37* 27J 


1,581 
225 


40 

90* 


34 
88 


1,120 
105 


IIH 


•05 ;■ . •■ 


... Pref 


105 




















353 


353 


1 








34)! 




31 


lOb 


l07 Winnipeg Electric 

log Wayagamack 

109 Wabasso Cotton 

110 Windsor Hotel 

111 Woods Mfg. Co 




"so 50 




















31 
130 


30 
108 


125 
16,408 


107 


471 


91* 


823 


S,876 .t 


50 


50 


350 


111* 


87 


10,554 


SO 


45 


2,231 


108 




75 69* 


746 


120 


no 


213 


86 


75 


1,206 


120 


119 
























72 
104 

1 86 


72 
lOOi 
8i* 


10 
100 
92 








n 












107 

823 


106 
82,'. 


200 
32 




. Com 




102 
90 


90 
87 


421 
40 


95 
95 


95 
87 


60 
85 


111 


90 89 


518 


86 


85 


5 


112 











January 7, 1921 



THE MONETARY TIMES 



MOXTUEAL STOCK EXCHANGE 

Comparative Statement of Prices and Sales, July-September 



STOCKS 




1919 


JULY 


1920 1 




1919 


AUGUST 


1920 






1919 


SEPTEMBER 


1920 




Hiiih 


Low 


Sales 


High 


Low 


Sales 


High 


Low 


Sales 


High 


Low 


Sales 


High 


Low 


Sales 


High 


Low 


Sales 






8() 
lOfl 


260 
70 








80 
107 


79 
105 


55 
70 








121 
116 


92 


3,676 
450 












93 


89 


150 ' 


90 


89 


161 


91 


91 


5 ■ .' 


3 Ames-Holden-McCready 






..Pret 101 


93 


13,996 


98 


73 


1.815 


103i 


92i 


6.647 


74 


64 


1.069 


110 


9Rf 


16,703 


704 


594 


878 J 


5 Asbestos Corporation 


..Com. 7Bi 


70 


2,553 


88 


82 


3.777 


75 


Ti 


1.323 


86i 


75 


1,302 


77 


73 


2.460 


100 


85 


7,731 5 




..Pref. S5 


80 


846 


98 


92 


1.177 


8.i 


82 


550 


9? 


90 


427 


88 


82S 


1.0,50 


107 


97 


1,535 6 


7 Atlantic Sugar 


. Com. 55 


431 


12.911 


Iftl 


131 


41.740 


52 


449 


3.959 


149 


127* 


19,265 


62i 


43^ 


31,906 


144 


124 


10,204 7 




.Pref. 115 


103 


1,140 


185 


153 


6,010 


llli 


100 


430 


175 


144 


878 


115 


103i 


778 


141 


135 


57 8 


























697 


120 




315 


104 


100 


716 ; 4 


10, ^■e^ 








































57 
S2A 


16,(107 
11,295 


45 

51 « 


401 
43 


12,208 
410 


57.J 
65 


50 
595 


8,092 
L335 


41 
.57 


36 
47 


15.412 
20 


.53 
64 


50 
61 


11,545 
1,790 


38? 
49 


35 

45 


8,453 II 


12 ' ritish Columbia Fishing & Packing Co BAi 


127 1 12 






61* 
68 


22,090 
5,637 


151 
62 


137 

58 


29.890 
2,625 


6!i 
70 


57 
67 


5,959 
2,523 








66i 

73A 


58ii 
69 


18,467 
5,8'i7 








U Canada Cement 


..Com. 71^ 


61 


55 


4,476 


64 


57* 


2,504 i 14 




...i>r£f.' 10'2 


100 


922 


92 


89i 


501 


\mi 


100 


516 


90A 


89 


476 


101 


100 


1.134 


91 


90 


717 ! 15 


17 " " ■■ • 


. Com. 209 


I85S 


6,208 


190 


116 


838 


195, 


187 


76C 


120 


114 


325 


200 


183 


1,522 


120 


I19i 


190 1 16 












40 
R5 


40 
53J 


25 
16,509 


!a 


. .Com. 521 


491, 


5.513 


788 


71 


9,001 


55 


*'. 


6,498 


72 


64j 


2.716 


66 


553 


3.127 t 19 


20 " " " " ■ 


. . Pref. ffiS 


83 


7,236 


83 


78 


1.832 


M» 


81} 


4,607 


791 


74J 
69i 


1.874 


8S 


8? 


5,649 


80 


73J 


1.409 20 










72 


69 


2.120 








691 


15 


«5 


.52 


1,7.58 


64 


64 


200 i 21 



































136 


133 


206 1 ■>■> 


23 Canadian Car aod Foundry. ■ . ■ 


..Com. 44 


39 


7,006 


60 


53i 


520 


39 


n 


1,320 


.58 


49 


435 


48i| 


36* 


14.046 


48 


42 


265 23 


24 " " " 


...Pref. 100 


9.S.4 


4,212 


lOli 


96 


1.90S 


98 


1,880 


97J 


94 


521 


lU3t 


964 


4,781 


9s 


90i 


446 24 








































Pref. 100 


100 


10 










67 


.%} 




80 


71 


2.562 


64 


63 


360 


74 J 


69 


610 


68 


64 


1,266 


76 


7?* 


900 27 


28 Canadian Cottons. Limited .. ■ 


...Com. 95 


7rJ 


2,640 


100 


94* 


2.044 


92 


86 


124 


95 


90 


570 


94 


89 


2,540 


95 


89 


115 28 


29 


...Pref M 


84 


.350 


79 


76 


•227 


844 


83j 


177 


79 


78 


143 


85 


8:1 


107 


80 


77 


274 29 



40U 102 lOfli 



170 102 99! 8.56 108 106 



35 Crowr 

36 Oomir 

37 Domir 
38 

39 Domir 

40 Domir 

41 Domir 

42 Domir 
43 

44 Goodv 



Keserve Mining Co 40 

ion Bridge 1074 

ion Canners Com. 59 

Pref 

ionCoal Pref. 

ion Steel Corporation Com. 

ion Iron and Steel Co Pref. 

ion Textile Com. 



874 


874 


10 


28 


25 


385 


284 


25 


2,272 



25 1 87* 85 



30} 284 4,a51 



4.196 30i 29 



90 


8-2 
47 


1,384 
425 


lis 

.565 


944 
47J 


4,434 
5,896 


81 
65 
81 


81 

.58 
78 


.30 

9.592 

13.1 


98 
70! 
100 


98 

67 
963 


77 

38,902 

168 



46 Hillcrest Collieries 

47 " " 

48 How.ird Smith Paper Mills 



62 Mo 
63 

64 .Montr 

65 Montr 

66 Montr 
K7 .Montr 
68 Natii 



lited Com. 

Pref. 
.Com. 
Pref 
Com, 
•Pref, 

50 Illinois Traction Pref 

51 Intercolonial Coal Com 

52 " " Pref, 

53 Lake of the Woods Milling Co Com, 190 

54 Pref 106 

55 Laurentidc Co ,. . 222 

56 Lyall Construction Co Com. 834 

57 Macdonald Co.. A.. Ltd Com. 36 

58 .Mackay Companies Com. 784 

.59 " ' • , 

60 Maple Leaf Milling Co Com. 1774 

61 Pref. 106 

eal Cottons. Limited Com. 71) 

Pref. 103 

cal 1-. H. and Power 95 

al Loan and .Mortgage I 

al Telegraph 125 

al Tramways 

nal Breweries, $10«1 Par. . Com, 187 

69 '• ■• " Pref. 994 

70 Nova Scotia Steel and Coal Co. . Com. 90* 

71 •■ •■ •• •• Pref. UJj 

72 0gilvic Flour .Mills Co Com. 2,55 

73 

74 Ontario Steel Products Com, 

75 Pref 

76 Ottawa L. H. & P 

77 Ottawa Traction 

78 Penman's Limited Com, 

79 •• •■ Pref 

80 Price Bros Com 

81 Prov. Paper. Com 

82 " ■■ Pref, 

83 Quebec Railway. Light. Heat « Pr. Co. 2(^ 

84 Riordon Ptilp& Paper Co Com. 145 

85 '■ " ■' ■■ Pref. 99i 

86 Russell Motor Car Com. 

87 " " '■ : Pref 

88 Sawyer. .Massey Com. 21 

89 " " Pref. 60 

90 Shawinigan Water and Power Co 127 

91 Sher\vin-Williams Co Com. 65 

92 " " " Pref. lOOi 

93'Spanish River Paper & Pulp Co.. Com 

94 

95 



97 Steel Company of Canada . 



105 

106 Twin City 

107, Winnipeg Electrii 

108 Wayagamack. .. . 

109 Wahasso Cotton 

110 Windsor Hotel 

111 Woods Mfg. Co. 

Hi " " ... 




Pref. 109 

• Pfd 1914 1(14 

' Voucher 5} 

Com. 763 

Pref. lOO 

. . Com. 

Pref 



THE MONETARY TIMES 



Volume 66 



MONTRKAL STOCK KXCHAIVGE 

Comparative Statement of Prices and Sales, October-December 

1919 » OCTOBER 1920 I 1919 NOVEMBER 1920 1919 DECEMBER 



.Com. I 
.Href. 
-Com. 

Pref. 
. Com . 
.Prcf.! 

Com.' 
. Pref 



3;Ames-Holdcn McCready. 

4 

5;Asbestos Corporation . 

G 

7 Atlantic Sugar. 

9 Bell Telephone. 

10 ■• .New Stock 

11 I'razilianT.L. & P.Co 

12 British Columbia Hishing & Packing Co.. . 

13 Brompton Com. 

U Canada Cement com. 

15 •■ ■• Pref. 

16 Canada Foundries & Forgings Com. 

17, •• " " Pref. 

18 Canada N.W. Lands Com. 

19 Canada Steamship Lines. Ltd t om.l 

20 • •• •' •' :.Pref. 

21 •' •' " " Voting Trust 

22 Canadian Pacific Railway 

2» Canadian Car and Foundry Com.i 

24 " " " Pref. 

25 Can. Consolidated Rubber Co Com. 

26 •• •• •■ Pref. 

27X'anadian Converters \ 

28 anadian Cottons, Lin ited Com. I 

29; •• " " Pref.l 

30 Canadian General Electric 

31 Canadian Locomotive Com. 

32 •• •■ Pref. 

33 Carriage Factories Com.! 

34 Consolidated Min'g & Smelt. Co... .825 par 

35 Crown Ke^er^■e Mining Co 

36 Dominion Bridge 1 

37 Dominion Canners Com I 

38 ■• •• Pref.l 

39 Dominion Coal Href.j 

40 Dominion Steel Corporation Com.' 

41 Dominion Iron and steel Co Pief.i 

42 Dominion Textile Com. 

43| •• •• ...Pref.l 

44!Good\vins Limited Com. 

45 •■ '• Pref. 

46 Hillcrest Collieries Com. 

47 •• •• I'rtf 

48 Howard Smith Paper Mill- 
49, 



112i 
1I6J 



545 
17,582 
15,S20 
6,390 
1,703 
80,436 
1,17,1 
397 



ll7A 


1174 


25 


,S54 


50 


23,480 


73 


62 


6,716 


S5 


64i 


62,513 


74 ( 


70 


7,266 


lUl* 


100 


1,009 



High Low Sales [High Lo\^ 



H35 

loss 

lOil* 



NOVEMBER 1920 


Sales 


H igh Low Sales 


1.960 
8.5HS 


90 KB 15 



1.125 
6.1»3 
1 ,275 
21,930 



38* 34i 7,B39 53j 



87i 83J 



1134 
1053 
»3J 



7,245 
16,210 

2,000 
11.3^1 
12,481 



20 



94| 
120} 



Ircf. 

oOj Illinois Traction Pref. 

51 Intercolonial Coal Co.ii.' 

521 " '• Href. 

aSlLalee of the Woods Milling ' o Com. 

54j " •• Pref-! 

55jLaurent'de Co j 

56iLyall construction Co Com. 

57l uacdonald Co., A., Ltd Com-! 

58 Mackay v onipanies Com.l 

59: '■ •■ Pref.] 

60 Maple Leaf Milling Co Com.' 

61, Pref.l 

b"2!Montreal Cottons, Limited Com | 

63 " " ■• Pref.l 

64 Montreal L H. and Power 1 

66;Montreal Loan and Mortgage t 

66 Montreal Telegraph 



14,663 
28,217 
9,1.62 



1,486 

36 

10.184 



67: Mo 



al Ti: 



68, National Brewe 



SlOO Par Com 

691 " ■' •'.... Pref. 

70 Nova Scotia Steel and Coal Co Com. 

7li ■• " " " Pref. 

72;Ogilvie Flour Mills Co Com. 

73i Pref. 

74 Ontario Steel Products Com. 

75 •■ "• " Pref. 

76'ottawaL. H. & P 

("iOttawa Traction 

Com. 



78! Pen 
791 

80j Price Bros.. Com.} 

8i:Prov, Paper Com. I 

82' •■ •■ Pref.! 

83 Quebec Railway, Light. Heat & Power Co.; 

84; Riordon Pulp & Paper Co Com.; 

85l •• ■; " " I'ref. 

86 Russell Motor Car Com. 

871 Pref.l 

SSlSawyer-Massey Com. 

89 " '• Pr.f. 

90 Shawinigan Water and Power Co 

91 Sherwin-Williams Co Com. 



-Pief. 98-* 92j 



24| 20h 

159 145 

98 97i 

102i 91i 

%l 96i 



92 

93 Spa 



sh Rh 



Paper «: Pulp Co Com. 

941 " " " " Pref.[ 

95| " " " " Pref. 1914;. 

96l " Voucher 

■ 97iSteel Company of Canada Com.[ 

JS' •■ •• " Pref.: 

99 St- Lawrence Flour Mills Com.i 

100 " '■ ■■ Pref.l. 

lOlTooke Bros Com. 

102 •• Pref. 

103 Toronto Railway i 

104 Tuckett Tobacco Co Com.; 

105 ■■ " " ref. 

106 Twin City 

107 Winnipeg Electric I. 

108 Wayagamack . . 

109 \\aba so Cotton. 

no Windsor Hotel I. 

Ill Woods Mfg. Co. Com. 

112; ■• ■■ Pref.l 



Pref.l 100 100 



8,057 

4,329 

3,914 

41,947 

1.395 

21« 

55 

17,'- 80 

2 249 

40,435 

, 3,345 



2,328 S6 83} 



97i 



337 112.^ 108 



407 1 14 103 



5,473 
4,150 
3,183 
3.950 



5,943 I 73^ 68 65,958 



1314 119 
9Si 96 



2.991 

l.li24 

36,275 



103i 100 
37}' 34 



122 1193 

116 1 101 

1154 1154 

53i 49J 



733 70 
100 97 
1954 187 



3,97S3 

3,031 

36.579 

317 

801 

20 

12,762 

1.725 

33,080 

4.370 I 

1.204 I 

2.049 



49* 


34 


7.862 


70-S 


60i 


2.342 


46 


44 


15 



675 109 104 
- 5 96 954 
' 94J 94I 



224 15i 9.640 



4.399 
60.565 
4,a94 
2.680 



454 10.176 I 754 70 36.041 | 40 39 



3.505 147 135 



406 113 99£ 



223 2'.'9 220 
110 109 108 



98 9 4 
85J 781 



125 125 

664 "eoi 



20 ' 125 120 



111 108 1053 



284 24 
2214 19SJ 
91)4 90 



229 139 134 



11.111 

8.146 
9.892 



56 I 110 110 



'23s I T(i6 1044 257 



705 200 175 



.137 112 106J 



500 I 280 250 



lOOi 100 
734 641 
123 1144 



UJ 90t 

83 80I 



3.578 ' 78i 684 
60 100 994 





48 


44 


467 


50 


49 


20 


40 


40 


10 


35 


31 


73 


150i 


134 


6.706 



6 Si 
8SJ 75* 



45i 
4«J 



46i 42 
60 514 
90i 89 



25 mi lOT 



8,219 I 34. 



3.363 I 1104 96S 3.909 ; 42- 



|100 
1 101 

102 



98i 77 5.460 jlOS 



January 7, 1921 



THE MONETARY TIMES 



BONDS QUOTED ON MONTREAL STOCK EXCHANGE 

Comparative Statement of Prices and Sales, January-July 





UONDS 






191^ 


JANU.^KY 


192( 






1919 


FEBKUA1«\ 


1920 






1919 


MARCH 


1920 








Abitibi .....Con. Del 


.Stock 


HiKh 


Low 


Sales 1 


High Low 


."sales 


High Low 


Sales 1 


Hieh Low 
no 110 


Sales 
810,500 


HiKh 


jOW 


Sales 1 


HigL 


Low 


Sales ! 


V 








1 


1 


j 


1 


\t 


3 




1 


1 


[ 


90 
77 
93 
971 


90 

77 
923 
95 


2,500 
13 200 

1,500 
21,400 


I 


j 


■^ 


Asbestos Corporation 




80 


75 


$12,925 


79 
92 
100 
7.ii 
88} 


77 
92 
99 
76} 
87i 


$18,200 

soo 

13,200 
2,000 1 
29,000 


85 
954 
lOU 


75 
951 
98 


817,100 
9,5110 
6,500 


85 


763 


$46,575 


781 
92 
94 


77} 
90 
91 


S38.100 
10.000 
93,b00 


4 








.5 


(\ 






98 


97 


20,100 


100 


99 


8,800 


6 


7 
8 
9 
10 


C n di Ste mshins 


V 


C 'rf' aAPnnl" 




93 


93 


5.000 


1 


891 


87 


33,166 


■"':.:;;;: i 


90 


89} 


18,500 


X 


Canadian Consolidatet 
Canadian Converters 
Canadian Consolidate 




1 


941 


943 


10,000 


9 






1 


1 


90 
95 

803 

934 


94 
803 
921 


1,000 
17,0110 
1,000 
2.000 


:;:: :::.: ;.. i 


(1 






90i 
81 

92 


90i 

8ll 
90J 


6,300 
7,h00 
20,000 


9S 
84 


94 
80 


25,200 
12,500 


94 

84 


921 

84 


9,500 
1,000 


96 

80S 


95 
801 


9,000 
1,800 


94 
84 

94 


93 
84 
94 


4,0(10 
I,Ol;0 
1,000 

88366 

,57 SOO 

9,5(10 

17.9(10 

5 500 

42,000 

21,500 

28,(KI0 

146,400 

120.800 

429.000 

250 


1 


)'> 




cc, 1922 
ay. 1923 
pt., 1!>23 


2 


13 
U 
15 
16 
17 


Can;idi:in Locomotive. 
Carriiifie Factori s. . . . 

City of Montreal 1) 


;i 


1 




69| 

90 
1013 
102 
101 

913 


893 
881 
100 
1004 
1001 
913 


20 0(10 
31,300 
29,800 
153,200 
76,200 
9,i>00 


4 


88 
lOli 
101} 
lOOi 


87 
1003 

1003 

100 


20,400 
lO.IUO 
99,700 
137,500 


883 
102 
101 

1003 


86 
1004 
lOOi 

991 


50,900 1 
3.100 1 
1.600 

18.800 


893 

1013 

102 
101 


87 
lOiil 

looi 
100} 


64,900 
39,100 

95,41 

45,600 


881 
104 
104 
100 

92 

87 

97 

854 

9«i 
% 

100, 
981 


86 
100 
100} 

!'9} 

92 

85 

% 

943 

944 
98} 
984 


60,100 

18,300 

5,700 

21 200 

8,200 

15,.S0O 

8,000 

26.000 

1 13.400 

112.300 

223,200 

1 000 


88* 
106 
105 
100} 

91 i 

88 

97 

8,5) 

991 
98 


864 
102 
101 
100 

91 

871 

961 

84 

94} 

94 

971 

98 


15 

16 
17 
18 






9 


20 
21 




^1 
881 
961 
97 
98i 


92 
98 
87 

96 

CSS 

96 


6,500 
12,5110 
29,l«)0 
37,600 
71,700 
313,000 


871 
99 
86 
961 
96? 
99 
99 
99 
991 


87 
97) 
85 
95 
941 
"84 
98 
98 
98 


12,500 
7,000 
37.000 
56.800 
115.200 
258,71:0 
7.50O 
3.000 
8,000 


93 
99} 
88 
98 
97 
98J 
98 


93 

96 
96 
97 
98 


l,.50O 
4.000 
8.000 
29,600 
37,10" 
156,050 
20,5CJ 


>t' 


n t' rr 1 


: 


M 


Dominion Iron and St 
Dominion of Canada 

Dominion Textile Con 

Lake of the Woods M 
Laurentide Paper Co 
Lyall Construction C 
.Montreal Street Railv 






90 
99 
991 
100 

99 
991 


881 
97} 
961 
98 
99 
991 


28,000 
43,3110 
51,700 

588,4,iO 
3„500 
2,000 


22 


23 
24 
25 


War Loan.. 


...192,5, 

. ..1931 
....1937 


23 
24 
25 
26 


27 
28 
29 
30 
31 
32 
33 
34 
33 

;« 

37 
38 
39 


B... 




97 
971 


97 
97t 


3,000 
6,01.0 


Xi 


98 
98 

1001 


978 

98 
1(0} 
lOOi 


24,000 
5,000 
1.000 

10,000 






9M 








99 
100 


98 
100 


19,000 
I, COO 




m 






991 


991 


5,000 


991 


994 


2,000 


9H 


99i 


2,000 


991 


991 


12.000 


•w 






V 






93 


92 


6,000 


85 


85 


4,000 




r 








■12 


* 




:: ::: 




93 


93 


2,000 




;« 











86 
76 
90 
94j 


86 
72J 
90 

834 


soo 

65,300 
10,000 
19,900 







:i4 


Debenture S 


tock.. 


74 

"is" 

101 


723 

82 
101 


89,000 

2,806" 
2,000 


711 
100 

82 
1001 

ioo{ 

% 
83 
69 
% 


69 

loo 
80 

100 
99 
97 
883 
8l3 
62 
95 


42,200 
5000 
3 0011 
2.000 
6 000 
11.000 
24.H0O 
31.800 
159.500 
8.70O 


741 
100 


70 
100 


70,600 
4.000 


76 


72} 


44.500 


81 


71 


42.300 


35 

36 


.\ova Scotia Steel & ( 


^•■"j ■ ■ 


88 


831 


1,400 


83 


82 


5.500 


37 


"* 




100 
99 

■90 ' 
85 
65 
94 

98 
1(10 
lOI* 
104! 
KKl 
10'2} 


100 
99 

881 
79J 
62 
931 

96 
983 
993 
10(1' 
983 


1.000 
2.000 

40.666 
29.71!0 

101 200 

3500 

35,600' 
276.9-0 
149.900 
,192,;K(0 
(;8I1,51K) 
.201.3.50 


;is 


Penmans 


B 

C 


102} 


102 
100} 
88 


2,0.)6 
1,000 
10,000 


102} 
1021 

91 

85 

701 


102 
IO2I 

89 

85 

60 


8,000 
1,000 

18,300 
son 

67,000 


100 
99 
95 
84 
631 
95 

100} 
971 
983 
993 

100 
98 
99: 
84 
86 


100 

99 

88) 

84 

62 

93 
100 

961 

983 

993 
100; 

91'; 

99; 

84 

853 


5,000 

4.000 

26.8(K) 

I.COO 

.5:i,90,l 

20.600 

7.000 

8,600 

224 3S0 

25.050 

159.700 

231.9110 

60'.250 

1.000 

12,200 


;i9 




4U 


41 


87} 


87 


7,300 


41 

42 


43 


Queheu Railway, Light and Power 


Co 

. . Deb. 


6Ui 

as 

98 

iooj 

llioi 
1032 
IIHI 
102 

' sai' 


60 

90 
98 

98 
100 
1013 

99* 
101 

'« 


2.100 
,S,5<0 
2,000 

755,850 ' 
2,56,700 
474,9.iO 
385,9,10 
,781,400 


60 
941 
98 
961 

looa 

1011 
104 
lOOil 

10/3 

84 


59 

94 

95 

943 

995 I 
1(10} 
l(r2} 

101}'. 
84 
86 


6,100 
15,2(10 

5„500 
10,500 

.;106.(HKI 
183,100 
3K4,90(I 
9!I0,4,5() 

,:«6 100 

20,000 
94,600 


43 


4S 
46 
47 
48 
49 
.SO 
SI 
.52 
53 
54 
55 


Sherwin-Williams Co 
Steel Co. of Canada. 
Victory Loan 

Wabassn Cotton. 

WayaM.imack 

West Kootenay. ■ 
Windsor Haiel 
WinnircR Street Rail 
1919 API 




98 

96 
100 
103 
106 
100 
105 

u 


98 .500 
964 800 
9Hi 746.600 

101 113,200 
103} 360,800 

100 1,0:13,100 

102 2,581,100 
84 131,030 
861 171,100 


45 


::: 

1922 

1927 

1937 

1917 issue.. 1923 

1933 


96 « 
100 
Kill 
104} 
100 
!02i 

90 

87 

9«i 


95 37,000 
98 l,264,;lOO 
\m 261,900 
10-.' 402.9,50 
984 81 3,8.50 
1014 1.6)5..5(10 
90 I.IXXI 
851 46.800 
96) 10.000 


46 
47 
48 
49 
50 
51 
,5? 


86 


85 


4,900 


S3 

,54 















80 


80 


27,000 


.55 


vav ' 


■.■.■.■.;:: 












56 




tlL 19^0 


Sales 




1919 .11 / 


iY 


IU20 




1919 JU 


NK 


1920 




1919 JULY 


1920 






HiKli Low S.ilos 


HiBh Low 


HiBb 


Low 


8nlu>i 


HiKh Luw 


Sitliw 


HiKh 


Low 


Mnle8 


HiKh 


Low 


Sales 


HiKh Luw 


SaloB 


High 


Low 


Sales 


1 


3 
4 

« 


100 99 SI2,000 





99 
.40 
781 
96 
lOOl 

97 


99 
90 
78J 
96 
100 


$51,000 
6,000 
5,700 
3,000 
•27.166 




100 
93 
90 
96 

101 
80 
98 
96 


89 
93 
78 
% 
99 
81) 
98 
96 


$17,600 
1.000 
8, '00 
2.000 
15.500 
1.320 
7.600 
1,000 




101 


99 


$15,800 






2 











3 


90 77 S8,S00 
9«i isi 15,000 
100 99 27,900 


90] 90i 
9:1 92 
76j 764 
90 89 


$7,300 
2.000 

50,400 
7 000 

.34.800 


90 
^1 


77 


$4 7.50 
3.S00 
8.500 


90 
91 

9'2l 
75 
893 


77 

90) 
92 
75 
893 


$5,625 
6.000 
9.200 
10.000 
10..500 


90 
96 
101 


76 
96 
99i 


29.225 
1,000 
I9,S00 


9'. 

90} 
92 


77 
901 
90 


»2,750 
1--,0(IO 
5,500 


4 

5 
6 


3 
9 
lU 
11 
12 
13 
I4 
IS 

le 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 




95 


2,000 


90 


893 


14, .500 




901 
983 


893 
983 


20,100 
10,000 


8 






y 

















961 95 4.200 
85 82 2,000 
92 92 100 


931 93 
83 83 


6,000 
500 


96 


96 


3,000 


93 
84 


93 
84 


1.000 
2,000 


96 


96 


3,000 


93 


921 


4.000 


96 
85 


95 
85 


14,000 
2.000 


92 


92 


2,000 


11 
12 


■'95 


95 


1,000 








13 






'ss' 

101 

lot 

994 

924 

89 

96: 

H3 

9-2 

91 

92 








94 

90 
102 
102 
lOll 

95} 

96 

993 

90 
lOOi 

tool 

'^1 


89 

88 
100 
101 
101 

941 

95 

891 
97 

973 


2,000 

7.400 

7 100 

5.300 

5.100 

5..5<iO 

3.000 

8..500 

8.000 

103.400 

102,300 

315.800 

500 


106% 

IS? 






14 


90 88 j 64,300 
101? lOli 16 400 
102 101 11.300 
101 lOOj 20,-.'00 
9-2* 924 2,000 
95 941 6,000 
99i 981 17,000 
89j 89) 3,000 
998 981 139,400 
993 9 i 84.000 
lOoa 99} 133,650 
9t)l 99 1,500 
99 99 .500 
99 98j 2,750 


871 86) 
104 101 
104 100 
1023 993 
924 92< 
90 87 
98i % 
85 8;t 
95 9:f 
94* 92 
98J 9(i 


23S0O 

13,500 

4,700 

5,000 

I.I 00 

12,500 

211.000 

65.000 

57.600 

130.810 

169.400 


891 

lois 

10'2J 
101 


88 
100 
lOOi 
1003 


23,bOO 

9,300 

■268.300 

.5.900 


87 
104} 
1041 

"^^ 
90 
97 

923 
96 


9.800 

16.600 

15.900 

5.100 

2.00O 

2.000 

1..SO0 

4.000 

132,800 

107 01 

328,700 


90 
lOll 
103 
101 

97 

96} 
lOfl 

891 
101 
lOli 

'U 
100 
100 


881 
lOOl 
100} 
101 
97 
96 
993 
89 
97: 
98i 
99ft 
99 
99 
100 


39.800 

800 

19.000 

5.400 

1.000 

5.000 

13,000 

4 1 ,000 

142,300 

96.:«K) 

144,100 

500 

4,000 

12,000 


86 
105 
104 
lOOi 


823 

nil 
101 
100 


28.400 
21.800 
4.100 
11.200 


824 
104} 
101 
lUO 


18 800 

23.200 

2,000 

400 


16 
17 
18 
19 


9Si 
lOO 

881 

99 

993 
101 
100 


94 
99i 
88 
971 
974 
100 
100 


28,.'i0fl 
9.000 
9.000 
1IIS..500 
67.450 
82.900 
4.250 


89 
97 
83| 
9Si 
931 
97} 


89 
97 
82 
94 
92 
951 


8.000 
2 .500 
1.5.000 
117,.550 
2' '2,900 
166.200 


96 

974 

81 
96 
95 
97 
95 
97 
95 

9*» 
998 


90 

911 

81 

933 

90* 

953 

95 

95 

95 

95 

991 


2 000 

8..5(IO 

3.000 

159.600 

128 900 

179.700 

4.000 

9.250 

8.000 

1.100 

8,0l0 


20 
21 
22 
23 
24 
25 
26 


97 97 


3.500 


9S 


95 


3,000 


97 


97 


1,000 


W 


100 


991 

H4 
871 
74 
97 


7.000 

I1,.S1K1 
ll.tKHI 
47.700 
16,000 


U 


^1 


7,000 
2,000 


28 












29 


100 lOO 2,000 
\m 100 7.000 


991 991 


2,000 






102 


102 


3,000 


99i 


99J 


2,000 


311 




31 


93 " 92 
81 81 
714 70 
991 99} 
81 81 












93 


93 


9,500 


..:.::';:::;j:::;::::. 


32 




39,900 
1 000 
27,100 
10.000 
2,000 


94 

88 
75 
lOO 






\ 92 


92 


9,000 


33 


34 
35 
36 
37 
38 
49 

id 

41 

4! 
43 


88 87 10,000 
75 74 88,600 
97 95 36,000 
84l 8;( 4,000 


81 
70 


"1, 
69i 


ibooi) 

1.600 


'74' 

100 
841 
100 
103 


'rij' 
100 

841 
100 
103 


;«,700 

12,000 
7,000 
1,000 
1,000 


69 


68 


' 4,200 


"723 
100 
85 


"69 " 
100 
85 


16,366 
6,000 
2,000 


■'es' 


67! ■ 


29'6C6 


35 
3fi 


80 
100 


80 
100 


1.600 
1.000 


80 

166 
100 

891 

83 

63} 

911 
100 

96 


80 

100 
100 
88 
83 
60 
91 
100 
95 


200 




;i7 


103 


103 


1,000 


991 


991 


10.000 


:« 


102i 102i 1,000 
I02i 102i 1,000 
92i 91 600 
84» 84j 7,400 
71 69 31„500 
961 95 21,100 
>18» HO 4,200 
99 98 5,200 
1003 llklj 703,3,50 
103J 102 91,800 
1063 1054 238,800 
lOOi lOol 69 ,,200 
105 lOli 1,697 650 

88 874 3,500 

89 88 71,700 




4,000 
1.000 
2.500 
• I.OOO 
49.500 
4,100 
3,0.'0 
7,000 


102 
10?} 

931 

86 

67 

98 
lOOl 
100 
101} 
1031 
1063 
1018 
10.5} 

89 

88 
100 

801 


102 2,000 
IO2I 1,000 
93} 100 
86 2,.500 
f6 3.000 
97 31,000 
994 5,400 
f91 14,000 

100 670,;«)0 

101 180,7.50 
1043 2.59.000 
100 1.2.18,40(1 
1021 1.718.200 

89 K.OOO 
861 14.000 
100 15.000 
8OI 4.000 


:« 


100 100 

90 884 
82 82 
621 61 
931 93 
994 994 
97 96 


1,000 
6,000 
500 
45.200 
12.600 
tiOO 
28.500 


1021 
92 
85} 
69 
96} 
99j 
■'91 

101 

1024 

1061 

101 

I04j 
90 
881 


102 
92 
RS3 
66] 
9.Si 
984 
97 
1001 
102 
105» 
101} 
104 
88 
873 


2,000 

S,500 

12„500 

31,200 

3,000 

13,000 

3„500 

618,750 

191, 21X) 

281,600 

807.1.50 

l,796..50O 

4,1100 

21,200 


89i 

631 
93 
97, 
961 








40 


88 


18 000 


93* 


!)23 


11,100 


89 


881 


2.000 


41 
42 


591 
91 
92 
9S 


57.500 

14,500 

son 

3,000 


68 
97 
1 99} 
1 100 
102i 
105 
1073 
102i 
1063 
88* 


663 21.600 
96 1,000 
983 12„500 
991 9„500 
1004 788,800 

102 270,^50 
10« 3^4,2,50 
1008 1,787,9.50 

103 2,349.950 
88 3.500 
S7l l.tiOlKl 


631 


61J 


84 ,.500 


43 


4f 

r 

4f 


100, 
95} 


100 
95 


16.000 
4.000 


45 

46 
47 










48 










49 


M 

s 

5 
S. 
5 
5. 
ft 








.50 




"is' 

84} 




"Vooo 




...[..'.'...'.'.'.v. 


51 




»4 






.52 


86 8)1 
9S 95 
80 80 


28.900 
2.000 
5,000 




29,400 

1.666' 


, 84 


83 


23.600 


53 
,54 











,55 


;::::>::::::;::;:;:::: 






'•••• 






56 



102 



THE MONETARY TIMES 



Volume 66 



BONDS QUOTED ON MONTREAL STOCK EXCHANGE 











Comparative Statement 


of Prices 


and 


Sales 


, August-December 












HON 


DS 








1919 


AUGUST 


1920 


1919 SEFTE 
High Low Sales 
104 102 $52,400 


VIBEK 1920 

High Low Sales 




1919 OCTOBER 


1920 




Cr 


n.De 


b. Stock 


High 


Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


1 






1013 


100 


1131.000 






;;::::;:;:::;::::::::; 




?. 












93 

90 
92} 
100 


93 
99} 


$1,000 
8,4,50 
2,500 

40,200 




3 


4 

5 


Asbestos Corpor.ition 
Bell Telephone 




78 
96 
101 


77 
96 
100 


10,400 
4,500 
12..500 


78 
903 
91 


77 
90* 
90 


$2,500 
25.000 
6,800 


78 

100} 
813 
96 
96 


77 
93* 
993 
813 
934 
96 


36,825 
300 

48,300 
5.000 
2,500 
2,000 


78} 
904 
92 


77} 
90 
90 


$9,300 
5,000 
41,900 


SI. 
93 
70} 
85 


76} 
90 
91 

70} 
85 


$16,600 
4,000 
20,700 
2,000 
1.000 


4 

5 
K 










7 




Canadian Car & Foun 








961 


96 


6.000 


90 


90 


1,000 


89} 


89} 


300 


904 


904 


5,000 


8 


9 
10 








9 


r ' ^^ n f n f tfr>i 








90 
91* 
84 


90 
914 
80 


1,000 
2,000 
3,500 




90 
96 
86 


90 
95 
86 


1,000 
6,000 
3,000 


:;:::; : :;..::..: 


10 


Canadian Consolidated Rubl 






96 
86 
943 


% 
83 
92* 


2.000 
2.000 
3,500 


97 
85 


96 
83 


13,000 
4,000 


88 
80 


88 

784 


1,000 
3,600 


894 


89 


5,500 


11 


12 
13 






1'/ 


Canadian Locomotive 










13 










::::;:;::;.;:::::::::: 


:,:...::::::::::::. ::;r;::::;:;:::;::;:::: 




14 






89i 
101* 
101 1 
101 

94 


88 
100* 
101 
lOOl 

94 


9,000 
3,300 
13,000 
1,600 
4,000 


84^ 
106 
105 
100 

90 

88 

97.* 

81 

943 

92 

96§ 

95* 


83} 
101 
101 

99} 

90 

88 

964 

81 

93* 

90| 

93 

93* 


14,700 

5,100 

6,800 

1,600 

1,000 

2,500 

5,000 

4000 

82,000 

95,800 

138,600 

1,000 


89 
101* 
1013 
102 

94' 


87 
100* 
101 
101* 

94 


17,900 
9,400 
5,000 

22,700 
4,000 


84 
104 
103 

99* 


81 
101 
100; 

98* 


17.000 
1,100 
5,800 
4,200 



874 
100* 
101* 
101* 

93 


87 
100* 
101 
1014 

924 


13,100 

1 ,(KIO 

1,600 

,5(10 

• 3,300 


86 
103 
103 

99 

89* 

87 

%4 

76 
93i 
91} 
94* 
95 
984 
95 


82} 
101 
101 

99, 

894 

87 

96 

76 

914 

89 

90} 

95 

97 

95 


41,400 

8,000 

3,300 

1,000 

1.000 

2.000 

8,.500 

7,000 

1 10,200 

186,000 

168.200 

1,000 

4,000 

1.000 


1,5 








Deo. 1922 
klay 1923 
ept. 1923 


IK 






t 


17 


18 
19 
20 
21 
22 
23 
2J 

26 
27 
38 
29 
3U 
31 
32 
33 
34 




...S 


18 
19 


uominio ca 












W 


Dominion Cotton 

Dominion Iron and St 
Dominion of Canada > 




100} 
91 

100 
983 

101! 

100 
993 
99i 


99} 
90 
95 

97 
97* 


10,030 

13,000 

64,650 

194,100 

176,250 

7.000 

3,000 

500 


99i 


99i 


1,000 


964 
81 
94 

92 
95 


964 

1% 

884 
90J 


16„300 
13,000 
88,000 
93,000 
188,400 


100 

894 
98 
99 
lOOi 
99* 


99 
86} 
97 
97 
100 
99 


5,000 
13,000 
120,800 
208,000 
336,600 

2,000 


21 


,Var Lc 


A..'. 
B... 

C .. 


1925 

.... 1931 
.... 1937 


98 
89 

io6g 

99} 
100 

101" 


974 
98* 

100 
99} 
99} 
99 
99* 

101 


83,600 
58,100 
175,500 
7,000 
6,000 
10,300 
3,000 
1,000 


23 
24 

25 










>7 






994 
100 
993 


90} 
99I 
991 


5,000 
4,000 
28,000 


?S 




m 


— 




101 


101 


1,000 








30 


Laurentide Paper Co 
Lyall Construction Co 
Montreal Street Raih 
Montreal Tramways 


* 








31 












94 


94 


12,200 




96 


% 


4,100 




32 


■ 














33 
















.;:: 




34 


tiir(> K 


>tock 




71j 
100 

83} 

'io2i' 


70 

99J 

• 83} 


6.400 
14,500 
1,000 


69 


67 


28,000 


73 
IOO 

84 
103 
100 
100 

90 

833 

65i 

96 
lOOi 

99* 

io.tJ 

102} 
105} 
lOOi 
104 J 

92 

86 


70 31,000 
100 7,000 
83} 3,000 
103 31,000 
100 3,000 
100 4,000 
89 30.500 
85} 2,500 
63 55,100 
96 11,000 
1004 11,000 
96 10,900 
IOO 7.56,150 
102 106,850 
104i 320.200 
100 1.426,200 
1031 1,684,400 
92 1,000 
844 48,500 


69* 


663 


12,200 


70* 
100 


69 
100 


17,300 
2,000 


71 
934 
80 
98 
90} 


63 
93 
78 
893 
90 


24,100 
4.000 
14,500 
26,000 
5,000 


Vi 


36 


National Breweries, Ltd . . . 
Nova Scotia Steel & Coal Co 
Ogilvie Flour 




3K 


80 
99* 


80 
99} 


2,500 
2.000 






37 


38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 




A 

B 

C 




103 

1004 
100 

90 

84i 

634 

97 
100} 

98 
100} 
102} 
105 
100* 
1032 

92 

894 


103 
100 
100 

It 

63 

96 
100} 

95 
100 
101} 
104 
100 
103} 

92 

85 


6,000 

5,000 

1,000 

25,500 

1,000 

11,100 

5,500 

500 

27,100 

773,550 

377,8.50 

l,122,80p 

1,136,600 

4,397,050 

2,000 

84,400 


38 


1024 


3.000 


: • 


19 




40 


m 


921 


10,100 


88* 


87 


3,500 


89 
83 

614 


87 

85 
60 


14,000 

300 

25,200 




41 


Price Bros 

Quebec Railway. Light and 

Riordon Paper ■ 

Sherwin-Williams Co 









4!' 


Power Co 

Oeb, 


67 

98 

99i 

99* 
lOlJ 
102s 
1061 
101} 
1051 

90 

87 

98 


634 

96} 

99* 

98 
100 
1003 
104} 
100 
102* C 

89j 

853 

98 


76.500 

4.000 

100 

4,000 

982.100 

148.000 

342.400 

.159.900 

,179.300 

6,000 

17,500 

5,000 


63 
91 


61 

91 


40,100 
1,500 


614 
90 
98 
944 


60 
90 
98 
931 


23,700 
3.000 
2,U00 
8,000 


43 










953 


954 


4,500 


93 


95 


4,000 


46 
















48 


•• ■■.■■■.■.■..'.'.'.'iiwi'iss 


.. -.1937 
le. . . 1923 
.... 1933 




















51 




83 
82 


83 
80 


4,500 
36,400 


834 
82 


83* 
81 


1,000 
18,900 


,52 




83 


813 


23,900 


58 


55 


W t K t-f av 


,54 


VV ]i H t 1 












55 


Winnipeg Street Railway 












36 


1 
2 


1919 NOVEMBEP 


1920 






1919 


DEC EM 


BER 


1920 






1917 




1918 


1919 


1920 




Hieh Low Sales 


H.Rh 


Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low Sales 
104 102 $.52,400 
lOS! 99 200,800 

93 90 88,000 
90 75 284,275 
%} 91 44,500 

101 97 280,366 
81} 80 6,320 
98 90 36,600 
% 943 13,000 
90 90 2,000 
97 90} 66,900 
994 80 29,400 

95 9fli 32,100 

94 893 22,000 

90 86 430,900 

102 100 233,300 
103} IOO 1,702,300 
102 100 324,200 

97 913 41,500 
96} 86 65,500 

1004 98 94,000 

91 85 188,000 

101 95 1,467,300 
lOli 953 1.709.250 
102} 96 3,311,400 
100 98 74,000 
100 97 40,iiOO 
100 971 86,500 
100 98 63,000 

102 99 64,000 
100} 100 17,000 

96 90 62,300 
94 93 13,500 
88 86 21,500 
76 67 750,300 

lOf, 90 120,000 
88 82 43,200 

103 100 43,000 
103 99} 67,000 
102* 100 11,000 

98} 87 156,600 
86 84 49,600 
71 59 637,200 

98 90 104,100 
100} 95 58,700 
IOO 94* 98,000 
IO2J 98 10,393.000 
103 100 2.384.700 
1073 1013 3,384,200 
1024 994 13,167,950 
1063 101 26,472,850 

92 84 177„500 
89,* 81 802,100 

100 98 20,000 
804 80* 4,000 
85 83 1,000 


High Low 

110 no 


Sales 
$10,500 


1 


106^ 106 $45,000 




104 


104 


$28,400 
















89 
75 
934 
98 


88 
70 
87} 

95* 


$69,000 
261,225 
37,000 
63.300 


90 
91 
93 
100 
764 

^ 
90 
93 

84 
94 


90 
744 
90 
90 
70} 
82 
98} 
90 
88 
784 
94 


2.,500 
152„525 
92.500 
290,700 
21,000 
16K.0OO 
10,000 
1,000 
66.700 
24,100 
1,000 


3 


4 


90 77 21.925 

91 91 SCO 
100 995 10,600 


76 
91 
9U 


75 
90} 
91* 


S28.000 
2,000 
19,.300 


90 
92 
100 


77 
92 
983 


28,550 
6,000 
37,300 


77i 
91} 


74* 
91 


$6,200 
11,000 


80 
99i 
98 


70 
^^1 


S44.999 
82,.500 
194.400 


4 

3 
6 






7 


8 


91 90* 3.000 


87 


82 


3.000 


9 


90 


5,500 


87 


87 


2,000 






8 


95 
83 
97 
83 


93 
82 
94 
80 


2.000 
5.000 
46,300 
28.700 


92 
82 
94 
81 
90 


92 
82 
87 
80 
85 


1,000 
7,000 
24,300 
36,600 
6,000 


9 












10 




97 96 2000 
99J 99* 2000 
94 93* 2.500 






89 


88 


6.500 


11 






86} 
95 


86J 
94 


2,000 
3.000 


12 


13 










13 










14 


15 
16 


87* 86 57.000 
lOli 100 26.800 
lOll lOOi 22.400 
101* 101 1.500 

94 94 1,000 

99J 99 U.Oob 
87j 85 17.000 
97j 973 343.600 
98-! 98i 652.200 
lOOi 99i 631,100 
99 99 7.250 
100 99 20.000 
100 99 3.750 
100 100 11.000 


87 
106 

103!; 

993 
89S 
84 
% 
77 
929 
90! 
93 
94 
90i 
90 


84 
100 

too 

96 
898 
82| 
96 
75 
91* 
885 
93* 
90 
90 
90 


50.200 
2,900 
3.600 

1 1 .20M 
1.500 
4..500 
8,000 

35,000 

73,900 
169,200 
160,400 
2,000 
3,000 
7,300 


87 
102} 
102 
101} 

92I 

87 


86 
100 
100 
101} 

9H 

86 


80,200 
100.200 
8,100 
2,000 
9,000 

15,000 


89} 
107* 
lOBi 


844 
101} 
101 

97 


92,400 
20,300 
16,100 
7,800 


92 


84 


144.400 


89 


80 


388.000 


89} 

Wii 

92* 

90 

99 

86 

96} 

%} 
100 

99 

99 

994 

95 

993 


81 495,500 
100 171,600 
100 79.100 
96 105,400 
89* 20,200 
823 109,.50O 
914 109,000 
75 255,000 
9041.255,150 
884 1„505,200 
90} 2.666,200 
90 19,250 
90 28,750 
90 33,500 
90} 1,500 
95 29,000 


13 
16 






17 


18 
19 
20 


1 . 


18 


894 

93 

99i 

88 

99 

99 

% 

99J 

994 

99 

983 
104 
101 i 

93 


89} 1.000 

83 64,500 
974 60,30G 
85 174.000 
95 3.295.700 
91^3,226,500 
92 3,316,700 

97 26,500 

98 6,750 
97 25,000 
98? 2,000 
993 13,000 

101 25,000 

84 56.700 


89* 

92 

99 

86* 

97 

96* 

97| 

98* 

98 

97* 

98 

00* 
101 
193 

90} 


89* 
85 

953 

84 

93 

92 

91} 

93 

96 

94 

96 
■00 
101 

92 

90* 


2.000 

49,500 

.50„500 

101,000 

480,800 

,025,000 

,852,600 

23,000 

9,7.50 

13,2,50 

2.000 

7,000 

1,000 

42,000 

500 


19 


87} 

96 

76 

92} 

91 

95* 

93 

93 

9li 

90} 

95 


84 
96 
75 

m 

89 
93i 
90* 

'^ 
90} 
95 


6,000 

2,000 

18,000 

116.900 

123.300 

255,700 

2.50O 

2,000 

9,000 

500 

1,000 


20 
21 


22 
23 
24 
25 
26 


86 
97i 
98i 
100 
99 


83 
95 
93 
983 
99 


19,000 
250,350 

86,300 
238,000 

20,000 


22 
23 
24 
25 
26 
27 


28 


99 
99 
99 


99 
99 
99 


8,000 
19,000 
22,000 


28 
29 


30 




30 


31 






31 


96 95 6,566 




90 


90 


24,000 




90" 


' 10,566' 


83 

95 

81 

81 
100 

83 
100* 
100} 
100 

95 

85 

69 

% 
100} 

9S 
IOO 
101* 
104} 
IOO 
102} 

90 

87 

964 

81 


83 

90 

81 

64 

93 

774 

92 

90 

92 

814 

75 

33 

894 

97 

92 

93 

95 

94i 

93} 

93 

83 

76 

95 

80 


4,000 

67,200 

11,000 

329.400 

28,000 

32,300 

61,000 

22.000 

29,000 

143,600 

72,000 

761,800 

72,900 

32,100 

145,.10fl 

3,134,050 

640,450 

2,654,7,50 

2,912,600 

5,292,430 

22,000 

310,100 

12,000 

37,000 


,32 




90 


90 


7,800 


95 


33 










34 


35 


69 674 47.300 


68 
93 
77* 
93i 


64 
93 


34,500 
5,000 
2,000 

14,000 


75 
100 

823 
102 
100 


67 
100 

823 
Iffi 
IOO 


261,400 
16,300 
2,000 
2,000 
5,000 


66 


64 


12,000 


77 
90} 
89 
1034 


72 
80 
82 
102* 


149.601 
33,000 
40,600 
20,000 


76* 
90 
83 
100} 


72} 
75 
69 
100 


121,100 
62.500 
14.100 
17,000 

17,000 
24,000 
51,680 
85,600 
,38,500 
7,500 
48.100 
144.000 
114,300 
133,450 


35 
36 


37 

18 


83 83 ioO 


774 
9t 


774 
92 


1,000 
5,000 


37 
38 




ioO 991 35,666 






93 
85 
85 
60 
90 


93 
81* 
83 
57 
894 


2.000 
3.500 
1.000 
45,900 
1,300 


93 
86 
76 
39 
90 
98 
92} 
98 
974 
98* 
97i 

%4 

84 
775 


92 
85 
73 
,55 
90 
97 
92 
95 
95 
94} 
94 
93 
84 
76 


10,000 

5,000 

6,500 

75.600 

3.000 

3,000 

5,100 

1.129.050 

200.950 

774,350 

1.047.250 

1,765,850 

10,500 

18,100 


83 

71 

»7 
100} 
100 


1024 
83 
813 
,52 
96* 
98* 
90 


33,000 
4.500 

21.820 

98,800 
8,000 
8,300 

47,300 


IOO* 
87', 
85 

fA 
99 

95 

994 
101} 
102} 


100 
85* 
80 
57 
92* 
97* 
88* 
98 
99* 

101 


40 


41 

42 
43 
44 


89i 89 7,500 
85 84 18.200 
65 63 80,900 
97 95 2.800 


98} 
85 
66 
97 

7a 
100} 
102} 

104S 
100} 
103* 

92 

86* 


88 
•85 

62* 

96 
100 

94i 

98* 
1008 
103 

983 
10l3 

92 

85 


32,100 

3,000 

251,100 

4,000 

4,000 

400 

1„507,300 

479.700 

398.100 

893.6,50 

1,341.950 

500 

35.400 


41 
42 
43 
44 
45 




% 95 12,100 
lOOl 100 984.250 
102} 102 182,300 
IO4I 104'i 453.400 
lOol lOOi 1,. 592,400 
103* 103 2,199,2,50 




46 


47 

48 

4a 

.SO 
5 


97 
96 
953 
95i 
95 
85 
80 


95} 
95 
94} 
93i 
93 
85 
78 


239,400 
2,630 
124,850 
149,100 
74,500 
3,000 
12,200 


47 




48 




49 




50 






51 




84 
84 
99 


84 
73* 
99 


23,000 

148,300 

.500 


52 


52 
54 
S. 
5f 


89 86 31.000 


90 


80 


180,300 


53 

54 




81 


81 


4.000 








.55 


85 "65 1,000 






983 


96_ 


2,300 


97 


90 


22,000 


56 



January 7, 1921 



THE MONETARY TIMES 



BANKS QUOTED ON MONTREAL STOCK EXCHANGE 

Comparative Statement of Prices and Sales during 1919 and 1920 







BANKS 


i 




1919 


JANUARY 


1920 




FEBRUARY 
1919 


192( 


] 




1919 


.MARCH 

1920 
















High 

214 
210 


Low 

201 
210 


Sales 

169 
1 


High 
199 


Low 
1954 


Sales 
222 


High Low Sales 
212 205 136 


HiRh 
198 


Low 
191 


Sales 
' 124 


HiRh 
206 


Low 
204 


Sales 
169 


High Low Sales 
197 1883 369 


1 


2 
3 










-lamilton 




1 










186 
147 


186 
147 

igo " ■ 

196 
'10 

267' 


10 
209 




3 


14S 


147 


121 


158 


1554 < 


189 1 


148 148 153 


1574 


1564 


108 


158 1,554 


165 


4 


5 
6 

8 
9 
10 
11 
12 
13 
14 


mperial 

Herchants .. 
^lolsons . ... 

Montreal 

>Jationale 

>Jova Scotia .. 




5 


192 
201 
2164 

272' 
2a5 
214 


181 
1793 

2i;!i 

255 
203 
2114 


33i 
68 
945 

253 
63 
351 


190 
190 
2084 

273 


1864 
187 
■204 

27i " 


2i3 
7.S 
518 

' iio ' 


192 190 88 
196 195 96 
2123 212 587 

270 2694 98 
208 208 52 
2.1 208 562 


190 

i90i 

209 
27i 


187 
190 
206 

265' 


174 
105 
526 

"is? " 


1924 
199 
2123 

272 


483 
84 
502 

208 


189 1874 

190 188 
218 208 
162 J IB'4 
270 266 


241 
33 

275 
20 
208 

373 


6 
7 
8 
9 
10 
11 


Royal 

Standard... 

Toronto 

Union 




2174 


214 


.S84 


2194 


217 


i92 1 


2084 


208 


418 


220 218 


12 
13 




20U 
170 


193 
160 


112 
108 





205 201 51 
160 157* 175 


157" 


Hi" 


20 " 


200 
160i 


200 
160 


IS 
14 




14 






160 


160 


152 


160 155 


389 


15 














1919 


APRIL 

1920 






1919 


JIAY 


1920 




JUNE 
1919 


1920 




1919 


JULY 

1920 




2 
3 

4 


HiRh Low 
206 205 


Sales 
220 


High Low 
190 IS9 


Sales 
418 


High 
20$ 


Low 
201 


Sales 
191 


High 
191 


Low 
1873 


Sales 
1.108 


High Low . Sales 
205 202) 281 


High 
1884 


Low 
186 


Sales 
293 


High Low 
205 202 


Sales High Low Sales 
376 185, 180 387 


1 
?. 


1 





* 


■■■: ::"•;::: 




■■■;■: : ; 




3 


1491 148 


I.W 1 


I.i7 1534 


170 


1.11 

1991 
198 
221 


150 


30 


1S7 


157 


62 


157 154 3 


1584 


157 


93 


160 


157 


116 


157 157 


12 


4 

5 


6 
7 
8 
9 

in 


202} 192J 
198 197 
225 210 


633 
81 
488 


200 185 
191 188 
220 209 


,1019 
80 
588 


187 
1974 
218 


2,094 
30 
569 


2(0 
194 
217 
170 
267 


189i 
189 
206 
160 
265 


.564 
99 

744 
39 

195 


1994 194 1.228 
198 193 105 
218 215 452 


1^ 

202 


180 
188 
1944 


1.525 

190 

1.195 


203 
I9S 
217 


193 
192) 
214i 


824 
!)9 
380 


186 177 
188 188 
2024 1954 


478 
32 
605 


6 
7 
8 
9 


269 267 


95 


270 267j 


153 


275 
2i6 


270 


S3 


277 275 -8 


265 


261 


72 


278 


275 


260 


261 253 


89 


10 
11 


12 
13 
14 

15 


216 208i 

200} 200} 
162 160 


566 


231 220 


404 


212 


281 


233 


227 


755 




216 213 243 


220 


210 


7i7 


2164 


216 


:«)3 


211 209 


701 


12 
13 


4 
144 


193} 1934 
1584 1.55 


1 

.56 















14 


161 


161 




157 


154 


121 1 162 162 75 


154 


153 


12-2 , 162} 


162 


51 


1534 153 


281 


15 




1919 


AUGUST 

1420 


Sales 
524 




1919 


SEPTE 


.MBER 

1920 




OCTOBER 
1919 


1920 




1919 


NOVEMBER 

1920 




1 

2 
3 
4 

5 

1 6 
1 7 

1 9 

;io. 

ill 

12 
13 
14 
15 




High Low 
Wi 1984 


Sales 
379 


High Low 
183 177 


High 
199i 


Low 
197J 


Sales 
255 


High 
177, 


Low 
1734 


Sales 
385 


High Low Sales 
199 197 310 


High 
177 


Low 

174 


Sales 
278 


High 
1984 


Low 
196 


Sales 
141 


HiRh Low 
190 181 


Sales 
155 






















1S8 157 


28 


iw' 'l.wi' 


6 


156 


156 


10 


157 


15S 


164 


158 356 201 


158 

i73j 
1 1773 
194 
174 
250 


155 


68 


158 


155 


75 


156 153 


30 




195 193 
193 192i 
214 21 iS 


449 
59 
235 


180 175 
188 180 
202 195 


584 
139 
4S7 


195 
194 
213 
160 
276 


193 
1934 
210 
160 
271 


29:1 

316 
50 
6S 


177 
181 
200 


1734 
177 
189 


328 
13 
598 


i9.s i89» ise 

192 190 26 
211 2074 580 


166 
174 
185 
174 
244 


1,074 

140 

698 

5 

124 


190 
193 
209 


188 
190 
207 


229 
63 
539 


172 162 
174 173 
193 187 
174 174 
255 250 


l.ITt 

73 

6S9 

14 

134 




277 2744 


86 


254 246 


207 


249 


245 


201 


1 274 2T2 39 


275 


273 


146 




217 213* 

1 1; j IS,-. ', 


188 


212 204 


327 


215 


2124 


4^8 


2084 


202 


428 


2ISi 215 624 


204 


I%J 


504 


2184 


2l4i 


390 


205 1894 


633 




















46 


154 1S2 


393 


IfiO 


160 


2 


153 


146 


289 


163 161 166 


145 


142 


117 


160 


160 


36 


145 138 


410 




1919 


DECEMBER 

1920 




1917 


1918 






1919 




1920 




. 1 
2 

. 3 
4 

. 5 
6 

. 7 

. 8 
. 9 

;io 
.11 

.112 
.!l3 




Hiiih Lov 

108 l%i 

2oii aoij 


Sales 

237 
3 


Hinh Low 
186 182 


Sales 
354 




High 
. 188 


Low 

183 


Sales 
1.882 




High Low Sales 




High 

214 
210 
186 
160 


Low Sales 

196 2.864 
20l4 4 
186 10 
147 1.4.9 




HiRh 


Low Sales 
173* 4.617 








209 


4 202 100 








3 










lS6i 155 


318 


1.53 151 
I8.5i 1851 
166 US 
174 169 
1954 193 


18 

5 

1 .078 

83 

.573 




. 145 

"m 

186 
234 
143 
•i574 
202 
214 
201 
1912 

':i4 


140 

i67 
1794 
210 
134 
248 
200 
208 
201 
187 
135 ! 


823 

1.402 

794 

1.563 

20 

.195 

28 

1.693 

5 

93 

0.029 








; • 


.. 1.581 151 1.085 




( 




198 

180 

179 






... 18,5: 


185i 5 
1.58 8,451 
169 1.062 


190 I87i 
]sri 187 
210 209 


221 
89 
524 


1.... 


167 1,345 ... 




203 
201 
225 
160 
278 
208 
2184 


181 7.0.59 
179J 811 

207 6.117 
160 .50 
255 1.471 
203 115 

208 5.088 




. . 2(W 








220 185 7.466 
. . 174 16(1 78 
... -273 244 1.8,86 






148 148 P . . 

255 248 598 ... . 

203 201 34 . . . 

215 208 1.966 




K 


2734 272 



216 3l4i 


90 
734 


1 256 2.50 
JM i894 


206 

886 


1 

1 
1 




.233 1894 6,504 






Kill ini 


123 

45 


180 1794 
1424 1394 


15 
l:«i 




193 

161 






205 
170 


193 30.5 
1574 863 


■■'■'■■f 


.. 1934 1794 16 
... 160 138 2,586 


14 






15 













SASKATCHEWAN Rl'R.VL TELEPHONE WORK 

"The amount of rural telephone construction work," said 
Mr. Naismith, superintendent of rural telephones, "accom- 
plished during the season of 1920 will probably amount to 
about the .same as last year by the time frost puts an end to 
operations. At the present time a total of 4,495 new sub- 
scribers have been added since the beginning of this season, 
and 4,804 pole miles have been inspected. There are, how- 
ever, approximately another thousand pole miles under con- 
struction, a large proportion of which will, it is hoped, be 
completed and inspected before freeze-up. 



"One of the chief difficulties in the way of rapid progress 
this season," said Mr. Naismith, "has been the unusual dif- 
ficulty in selling debentures. Those that have been disposed 
of, however, have been placed at good prices, the majority go- 
ing at par, with interest at 8 per cent. A surprisingly large 
number of the issues have been taken up by local investors, 
which is a thoroughly satisfactory state of affairs, and is, in 
fact, the ideal way of disposing of the debentures. This dis- 
posal of telephone and school debentures in their own districts 
was a thing practically unknown up to a very short time ago, 
but it is becoming more and more common, and it is to be 
hoped that this financing of their own enterprises by the peo- 
ple themselves will in time be extensively practiced. 



104 



THE MONETARY TIMES 



Volume 66 



TORONTO fSTOCK EXCHANGE 

Comparative Statement of Prices and Sales, January-March 



1 American Cyanamid Co Com. 

2 Ames-Holden-McCready Com 

3 " " " Pref. 

4 Atlantic SuKar Com. 

5 ■' ..Pref. 

6 Parcelona ... 

'/ BL-IITclcplionu 



' Brazilian 

' B.C Fishing and Packing Co. 
Burt Co., F. N 



..New 
.Com 



.Com. 

'■ " ■• Pref. 

> Canada Bread Com, 

! " " Pref. 

> Canada Cement Company Com 

> " " " Pref. 

' Canada Foundries & Forcings Com. 



FEBRUARY 



High Low 

'28i"''28"" 



Sales High Low Sales ; High Low Sales ] High Low Sales 



1333 1331 
110 109 
100 74J 



m ID 
I29J IW 



4.iJ 10.824 57* 50 



70 1104 106 



19 1 IJO 104 



High Low Sales 



46 40* 10.696 I 553 51 i 6,941 



. Pref. 
> Canada Life Com. 

• Can.ada Steamships Co.. Ltd Com. 

' " ....Pref. 

■■ VotingTrust 

' Canadian Locomotive Com. 633 

! ■• " Pref. 

I Canadian Car & Foundry Com. 

; '■ " '■ Pref. 

' Canadian General Electric Com. 

i " ■• " Pref. 

' Canadian Pacific Railway 

) Canadian Salt 

' City Dairy Com. 

Pref. 

I Confederation Life 

1 Coniagas Mines. Ltd (15 per share) 

; Cons. Mining* Smelting Co.. .825 par. 

I Consumers Gas 

[ Crow's Nest Pass Coal Co 

Crown Reserve ((I per share) 

Detroit United 

< Dome Mines ($10 par) 

1 Dominion Canners Com. 

• ■■ ■■ Pref. 

' Dominion Iron & Steel Pref. 



32J 28i 4,924 



240 ! 93i 91 



272 I 108 105 

213 I 108 105 

271 I 31* 28 

293 I 86i 86 



80 75j 
84i 83 



lOli 
98 
139i 



76J 70 2.442 443 43i 

84 79 2,056 19h 77i 



63i 62 

91 90 

321 32J 

88 838 

103 J 102 



2.75 2.48 1,400 
27h 18i 11,111 
150i 150 25 



32} 28.* 

14S| 141 

S9J 53 

48 42} 

U3i 109j 

14. .SO 30.75 

6li 57J 



90 



87 



95 



91j 9U 



Steel Corporation Com.' 62i 60 



' Dominion Telegraph. 

' Duluth Superior 

' Howard Smith 



783 74 

9ii "gi 



.Com. j 

' Pref. 

International Petroleum Co.. ..(85 par) 21.50 19.25 

■ Lake Superior Corp I 

I Lake of Woods Milling Co ....Com.' 

. ■ " " Pref. I 

nsolidated . . . . (f 1 per sha 



13.50 12.50 630 



29 28 13 

23^00 2i!75 400 



100* lOQj 
108 103 
lOOj 99 



High 
334 


Low 
354 


110* 
97* 
130 


!09t 
82g 
1.'44 


7 
1093 


61 
104 



,263 
8H* 
65* 



913 90 



104i 1014 1,222 I 109 lOJi 1,.174 



2.9S 
28* 
140i 

46* 



13.25 12.75 



2.50 2.50 
27} 25i 
152 1494 



219 142 140 



13.25 12.75 
395 304 
854 82} 



680 13.75 12.60 
564 I 66 55 
326 88} 86i 



5.841 ; 6l3 60 



73* 


69 


2..S98 


90 


90 


10 


914 


91* 


31 





10 23.00 22.75 110 82.00 47.00 



» .Mackay Companies Com. 

' " '■ Pref. 

I Maple Leaf Milling Com. 

' " " Pref. 

I Mexican Light & Power Com. 



75* - 714 



2,600 
1.011 
1.378 



.344 .344 
784 '33 



313 I 104 102 



964 784 733 

399 I 74 69 

2,005 t 193 169 

240 102 99) 



7..S85 
1.633 
2,002 
1,350 



.534 .48.00 8.259 
794 77 1,139 

1,7116 



142 l3Sf 2,455 180 173 
101 99 538 1014 99* 



'■ Monarch Knitting. . . . 
1 National Steel Car Co! 



Pref. 



Pref. 80 

Com. 7 

Pref.* 29 

Vot. Trust Com. I 23 



1,160 
50 



Pref. 

I Nipissing ($s per share)! 8.85 8.25 

I Nova Scotia Steel and Coal Com. 60 60 

' Pref. ..• 

I Ogilvie Klour Mills Co Com.! 

'■ Pref. 

I Pacific-Burt Com. I 

I " Pref.l 

> Penman's Limited Com. I 

' " "- Pref.i 

' Porto Rico Com. 

' " " Pref. 

t Prov. Paper Com. 

' " " Pref. 

I Quebec Railway L. H. & P 

! Riordon Pulp* Paper Co Com. 

' Pref.j 

I Rogers, William A Com, I 

> ■' •• Pref.j 

) Russell .Motor Car Com. I 

' ■■ ■■ " Pref.' 76 70 

1 Sawyer Massey Com.t 

i '■ " Pref. 

) Shredded Wheat Co Com. i 125 125 

' " " Pref.l 89 89 

1 Spanish River Paper & Pulp Com.! 18* 17* 

! " Pref.' 65 63* 

1 ;, „ ;; '\ pref. 1914 

J ' ,. ., .. Warrant 

» Steel Co. of Canada Com. 65 58 

' ' " " Pref. 95 934 279 

5 Tooke Bros., Ltd Com 

I Pref 

) Toronto PaperCo 

I Toronto Railway i 5S 44 563 

2Trethewey (»1 par)! 46j 37 22,200 

> Tuckett Tobacco Co.. Com. 244 244 20 

! " " " Pref 

jTwinCity ^ Com.! 444 39 284 



13.75 12.50 1,357 



1,963 363 33 



n 53 

41* 343 



12.50 12.00 1,740 



41 3»h 
85 83 
111) 111 



22 20} 
95* 954 



284 273 
182} 176* 



19 100* 97} 



2,197 



514 47 
574 ,55} 



45 35 



243 



RIGHTS 

108 Bell Telephone . 



' 67} 63 



614 574 1,687 



80} 75i 



94} 83} 
1304 123 



8li 76 1.370 ' .65 60* 

1004 90 285 94* 931 

69 69 25 23* 20 



77| 
97} 





46 


424 


167 


49 


46 


16.900 


.50 


50 


55 



January 7, 1921 



THE MONETARY TI.MES 



TORONTO STOCK EXCHANGE 

Comparative Statement of Prices and Sales, April-June 



I American Cyanamid Co Com 

> Ames-Holden-McCready Com. 



High L,ow 
' 28J"'28i " 



Sales 'Hif!h Low 



Prt-f. 104 104 



Sales I High Low 

25 [ 

364 33i 



Sales High Low Sales Hirih Low Sales High Low Sale 



28i 22 
828 75 

130 129} 



67i 60 



I'Atlantic Sugar ....Com 

sl ■' ■■ Pref. 

3 Rarcclona 

1 Bell Telephone 

i ' ' ..New 

) Brazilian Com. 55 52j 2,428 

) B. I.. Fishing and Packing Co ' 488 46j 104 

I'Burt Co., P.N Com. 90 89 120 

i Pref. 9.5 94j 126 

f Canada Bread Com. 22* 19j 1,325 

1 " •■ Pref. 83i 829 136 

5 Canada Cement Company Com. 67} 64} 1,296 

j " •■ •• Pref. I I0I4 984 87 

7 Canada Foundries & ForKings Com 

) " " ■• Pref 

) Canada Life Com 

) Canada Steamships Co., Ltd Com. 45 43 951 

I '■ ■■ " Pref.: 80} 77J 2,029 

I " " " Voting Trust 

] Canadian Locomotive Com. 

I " '■ Pref. 

; Canadian Car & Foundry Com. 

; '• ■■ •• Pref. 

7 Canadian (leneral Electric Com. 

I ■■ ' " Pref. 

) Canadi'in Pacific Railway 

)Canadian Salt 

I City Dairy Com. 

I ■■ Pref. 

J Confederation Life 

I Coniagas Mines, Ltd (SS'per share) 

; Cons. Mining & Smelting Co $25 par. 

i Consumers (las 

; Crow's Nest Pass Coal Co 

i Crown Reserve (41 per share) 

) Detn>it Inited 

) Dome .Miiii-s (tlOpar) 

I Dominion Canncrs Com. 

J •■ ■ Mr f. 

I Dominion Iron* Steel Pref. 

I " " " Com. 

; Dominion Steel Corporation Com. 

i " " ■' Pref. 

?i Dominion Telegraph 

I Duluth Superior 

) Howard Smith Com. 

) " " :i Pref-t 

I International Pretrolcum Co (♦5 par) 

» Lake Superior Corp [ 

t Lake of Woods Milling Co Com. 

1 " " Pref. 

» La Rose Consolidated ($1 per share) 

; Mackay Companies Com. 

t " " Pref. 

1 Maple Leaf Milling Com. 

) ■■ ■' Pref. 

) Mexican Li^^ht & Power Com 



^ 106 104} 



496 ! 105 104 



94} 88 

46} 30 

100} 894 

lol Sl 

119} 118 



606 1 148 130 



484 4li 7.819 



68ij Hi 2,000 
95| 931 59 



485 41} 8,087 



9li 
954 
2j4 



59} 57} 
54} S3 



954 93} 



42J 8.131 I 9; 



2,803 I 65; 633 



694 66i 1,642 



65 51} 
101 99 
las) 104 



504 49i 
87} 843 



846 116 1074 



412 1344 125 



764 71 



92j 89 

86 85 

.Sl4 47 

98 9S 

1054 101 

974 97 

130 1274 



250 3.00 3 00 
,69« 274 27 
259 140 1394 



3.12 
29} 
ISli 



3.01 2.75 
27} 26J 
1404 140 



2.S2 2.80 
319 28 
1514 147i 



2.35 2.0O 
26 254 
1404 135 



12.70 11.00 485 



16.25 14.10 
434 42 
9li 90 



25 108 107 



11,01 10.90 
64A 60 
85 824 



61} 60} 



714 66} 
80 79 
914 9li 



2,204 I 72} 63) 2,295 



688 64i 6,215 68 59 



770 I 47.25 47.25 



42.00 42.00 
i89 189 



31.00 31.00 

180} "isoi' 



66} 64B 
150t 13.59 
102] 99} 



65i 
155 
994 



294 66g 66 

605 169 1484 
307 105 102) 



7,570 ', 165 156 



235 168 164 



360 99} 97} 188 ' 107 1044 



ch Knitting. 



Pref. 

.Com. 

. Pref. 

1 National Steel Car Co Com. 

5 •■ '■ " Pref. 

i ■■ " " Vot. Trust. ...Com. 

J •■ Pref. 

) Nipissing (S5per share) 

) Nova Scotia Steel and Coal Com. 

) Pref.' 

I Ogilvic Flour Mills Co. ,,. Com. I 

! Pref. 

I PaciflcBurt Com.' 

I " Pref. 

j Penman's Limited Com. 

i •■ " Pref. 

! Porto Rico Com. 

i " " Pref. 

) Prov. Paper Com. 

) " " Pref. 

1 Quebec Railway L. H. & P 

2 RiorUon Pulp & PaperCo Com. 

J, " '• '■ " Pref. 

I Rogers, William A Com. 



11.75 10.75 1.525 



88 


86 


59 


H 


44 


SO 1 


31 


30 


247 ' 









9,567 11.10 10.25 



1,430 I 10.60 10.00 1,310 



IS [ 122 1214 



'25 914 90 



65 132} 122 



25 I30i 129 



'22 21* 
1184 116) 



1S4 18i 
128 120} 



125 202 191 



i Russell Motor Car Com. 

', Pref. 

[ Sawyer Massey . . . . Con^ . 



834 754 
85} 83 



944 79 
94 85 
124 lOi 



%4 954 



2,908 107} 95j 
449 . 1494 134 



i Steel Co. of Canada 

I " 

I Tooke Bros., Ltd. 

I 

IToronto Paper Co. 
1 Toronto Railway 
[ Trethewey 



Pref. 
Com. 
Pref. 



65} 60i 
%4 94 



($1 par) 
loa Tuckett Tobacco Co Com. 

104 " " " Pref.' 

105 Twin City Com. 

106 Western Canada Flour 

107 Winnipeg Electric 

RHillT.4 

108 Bell Telephone 



77 


76 


40 


75 


73 


90 


4S 


40 


242 


.37 


28 


1,978 


90 


854 


55 


464 


45 


208 



98} 96 
69 69 
89 87} 




<w» 


1,288 


78}' 


74} 


1,545 


734 


684 


3,654 


78 


744 


788 


96 


445 


97 


96 


207 


984 


974 


432 


95* 






29 


290 


l6l 


67 


650 


40 


36 


110 


74 


68 




76} 
75 
39} 


64 


86} 


70 


84 


84 


2 


87 


87 




659 


444 


424 


742 


49 


39 


407 


44 


4'i 


466 


m 


1,150 


3« 


34 


510 








30 


28 


17,300 


33 


529 


50 


47; 


265 


36 


35 


55 


S3 


50 






93 
717 








90} 
58 


90} 
.50 


16 
163 








44 


34} 


32 


572 


344 


32} 


134 



38 32S 29} 



3i 24 6,04X 



THE MONETARY TIMES 



Volume 66 



TORONTO STOCK EXCHANGE 

Comparative Statement of Prices and Sales, July-September 



IjAmerican Cyaiiamid Co ..Com. 

2tAmes-Holden-McCready Com- 

3 •• ■• •■- Picf. 

41 Atlantic Sugar .'..Com. 

5, ■ •• Pref. 

6i Barcelona 

(Bell Telephone 

8 • New!. 

9 Brazilian Com. 

10 B.C. Fishing and Packing Co 

11 Burt Co., F. N Com. 

12 • •• Pref. 

13 Canada Bread Com. 

14 ■■ ■■ Pref. 

15 Canada Cement Company Com., 

16 •■ ■• •■ Pref.i 

17 Canada Foundries & Forgings Com. I 

18 •• •• ■• Pref.l. 

19 Canada Life : Com. I. 

20iCanada Steamships Co.. Ltd Com. 

21 



Sales High Low Sales High Low Sales High Low Sales 



IB4 135 3,149 , 50j 45j 



10 8| 

I19i 1184 



195 ' 148 13li 1.717 

29 17.5 144 146 

635 I 5 4S 255 

97 ! I02.V lOlS 205 





,.,H 


SEPTEMBER 

1920 




High 


Low 


Sales 


High Low 


Sales 


109 

62 
IHj 
IIJ 


50 
984 
46 
106 
9i 


1.681 

2.56S 

7,307 

310 

2,210 






69g Bti 
144 125 
1384 138i 

5 44 


5 

1,415 

5 

586 



8,189 57} 50| 



57 < : 101 101 



53 50i 4,493 38} 35 



207 I lOOi 97 



236 105 103 



73i 69i 3,063 



25 I IISJ I19J 



23 



29 



Canadian Locomotii 



Pref. 
Voting Trust 

Com. 

Pref. 

Canadian Car & Foundry Com. 

Pref. 

Canadian General Electric Com. 

Pref.! 

Canadian P.icific Railway 

Canadian Salt 

City Dairy ; Com. 

Pref. 

33|Confederation Life 

SI Coniagas Alines. Ltd ((5 per share) 

35 Cons. Mining & Smelting Co $25 par 

36 Consumers Gas 

37 Crow's Nest Pass Coal Co | 

3S Crown Reserve ((I per share); 

391 Detroit United I 

40 Dome Mines ($10 par) 

41 Dominion Canners Com. 

Pref. 

Iron &• Steel • Pref 

Com. 

Steel Corporation Com. 

«: " " Pref. 

47, Dominion Telegraph 

48 Duluth Superior 

49 Howard Smith Com. 

M; " " Pref. 

ol International Petroleum Co ...(tSpar) 

52i Lake Superior Corp 

53;Lake of Woods Milling Co Com. 



64} 54 
85i 63 



102i 100 
99 97i 



92J 924 
36J 344 
964 96* 



I02j 100 
99 98 
1384 130 



336 103* 98 



2., 50 


2.50 


314 


30 


151 i 


1.50 


,50 


50 


34 


34 


106 


104j 


15.00 13.90 


57 


514 



145 I 2.73 2.73 



345 136 135 



300 136 136 



195 ' 12.00 11.00 



1024 1024 
14.75 13.50 
Sl4 44 



13.00 11.00 



91 
300 


90 
300 


110 33 


2ni 
135 


24j 
127 


,„ 35 
234 * 


27 


22 


1,200 38 



43 Domii 

44; 

45|Domii 



13.00 12.10 
53 46 
R3 S'2i 



2.427 674 64 2,940 63* 58 



28 28 
30.25 30.25 



164 15 



59| 50 

85 83 
I6i 12 



- Pref. 



54 

.55! La Rose Consolidated.. ($1 per sha.^, 

oBiMackay Companies Com. 

57| ■• " Pref. 

58! Maple Leaf Milling Com. 

59, . " •■ Pref.' 

60 Mexican Light & Power Com. 

61 Pref.l 

62 Monarch Knitting Com. 

63 •■ ■• Pref.: 

6J| National Steel Car Co Com 



2 ] 1 161 159 



66| 65} 



67} 66} 
155 155 
100 98} 



77} 
64} 



45 107 . 105 



651 



70 ■• 
-l;Ogilv 



Pref.l. 

Vot. Tru.st Com. . 

Pref. 

smg ($5 per share) 

Scotia Steel and Coal Com. 



300 10 00 9.75 



Flour Mills Co Com 

m Pref.' 

/3 PacificBurt Com. 

I* " Pref. 

7o Penman's Limited Com. 

J6 " " Pref.' 

7( Porto Rico Com. 

78 ■• ■■ Pref. 

79 Prov. Paper Com. 

■80 •• Pref. 

81'tluebec Railway L. H. & P 

82 Riordon Pulp & Paper Co Com. 

83 •• •• Pref. 

84 Rogers, 'William A Com. 

85, " •• Pref. 

86| Russell Motor Car Com. 

87! Pref. 

88 Sawyer Massey Com. 

891 ■' ■■ Pref. 

901 Shredded Wheat Co Com. 

9l! •• •• Pref.l 

921 Spanish River Paper* Pulp Com. 

93| .. -Pref. 

Pref. 1914 



Pref. 112 112 



335 i 10.75 9.30 



11.90 10.75 1,783 11.00 10.00 



60 i 140} 130 



344 34 
78J 78 
I34S 1264 



64 I 33* 334 



145 1444 
99i 99| 
50t 50i 



95! 



Wa 



96iSteel Co. of Canada Com.! 



87 


83 


71 


90 


85 


105 


22 


20 


635 


62} 


50 


248 




4.5} 


40 


4,148 


109 


103 


664 





79i 7« 



44| 44 
1334 1334 



20 , 1334 130} 



585 118 101 



(iTooke Bros,. Ltd Co 



Pref. 



100 Toronto Paper Co 

101 Toronto Railway 

102 Trethewey (Jl par) 

103lTuckett Tobacco Co Com. 

1041 " •• •• Pref. 

l05iTwin City Com. 

106 Western Canada Flour 

107' Winnipeg Electric 



RIGHTS 

108] Bell Telepho 



424 


40 


135 


29 


29 


237 


50 


48S 


55 



27} 
49} 



1.193 504 504 



22 1 115 114 



157 404 37 



1,767 

8 
1,105 



69i 67 J 1,759 



January 7, 1921 



THE MONETARY TIMES 



TORONTO STOCK EXCHAISGE 

Comparative Statement of Prices and Sales, October-December 



OCTOBEU 



DECEMBER 



I, American Cyanamid Co Con-.. 

2 Ames-Holden-McCready Com. 

3 •■ " " Pref. 

4 Atlantic Sugar. Com. 

5 •■ •■ Pref. 

6 Barcelona 

7 Bell Telephone 



Hiuh Low Sales < High Low Sales ; High Low Sales Hieh Low Sales ' High Low Sales High Low Sales 



102 J 87 

llSi 107} 

79 631 

120i 114 

10 8J 

118 1171 



5Si 
125i 



.Ne 



lU3i 101 



9,179 
1,866 



72i 69i 

122 118i 

8 53 

117} llSi 



9] Brazilian Com. 

10 B.C. Fishing and Packing Co 

11 Burt Co., F.N Com. 

12i " " Pref. 

13 Canada Bread Com. 

U " " Pref. 

15;Canada Cement Company Com- 

101 •■ " ■' Pref. 

17 Canada Foundries & Forgings Com. 

18 " " ■' Pref. 

19 Canada Life Com. 

) Canada Steamships Co., Ltd. 



Il2i mo' 
UOJ 99 



38} 
4.iS 



991 
244 



126 107 105 
52 1068 1 0.11 



32} 
87 
73? 



179 90i 8S4 



21 



Voting Trus 

23'Canadian Locomotive Com. 

24; ■' " Pref. 

25 Canadian Car & Foundry Com. 

26 •• Pref. 

27 Canadian General Electric Com. 

28 " " •• Pref. 

29 Canadian Pacific Railway 

30 Canadian Salt 

31 City Dairy Com. 

32 " Pref. 

33 Confederation Life 

^M Coniagas Mines, Ltd (tS per share) 

ViCons. Minings Smelting Co »«par, 

36 Consumers Oas 

.37 Crow-s Nest Pass Coal Co 

38 Crown Reserve (|l per share) 

39 Detroit United 

40 Dome Mines (810 par) 

41 Dominion Canners Com- 

42: " " Pref. 

43! Dominion Iron & Steel Pref. 

44, " " " Com. 

45 Dominion Steel Corporation Com. 

48| ■' " ■' Pref. 

47I Dominion Telegraph 

48!Duluth Superior 

49 Howard Smith C( 

50 ■• ■• 

51 International Prctoleum Co. 

52 Lake Superior Corp 

53'LaUe of Woods Milling Co. . 



Pref. 87i 834 



.S89 73i 69 



105 J 93 

974 93 

514 49 

lOOi 99} 

1131 111 



96 94} 
534 48 
994 96 



47 994 994 



607 694 49* 



86 

28 28 



54} 
9l| 



9» 911 
96 92 
140} 132 



733 109 103 



87J 
% 
95J 



79 



90:1 
90 
131i 

SOS ' .soi' 

85 85 



137 



■1, 85 


2. 85 


324 


304 


145 


138 


51 


494 


374 


;i7i 


109* 


106 


15 (K 


14.25 


64 


52} 



190 2.76 2.75 

882 , 24} 20 457 | 30 29 

716 133 125 298 152 14Bi 



429 136 131 



1.2;»5 2.00 1.75 
180 18 16 

225 , 136 13l» 



900 12.60 12.00 



60 112 112 



454 36 11,175 



660 14.10 12.75 



Ml 15i 
Sli 814 
13.25 11.50 
32 271 



73} 68 
90i 90 



.Pref 
.(SSpar 



36 32} 
8S 781 
931 91 



. .Com 

. . Pref 

55 La Rose Consolidated (Si per share) 39 37 

56 Macltay Companies Com. 80} 794 

57 •• " Pref. 66* 66 

58' Maple Leaf Milling Com. 209 195 

59 ■' " Pref. 106 103 

60 Mexican Light & Power Com 

61 ■• •■ Pref 

62' Monarch Knitting Com- 

63 " ■• Pref. 90 88 

64 National Steel Car Co Com., 11 5 

60 Pref.; 45 33 

66 .Vot.Trust....Com. 9 9 

67| ■' ...Pref.i 

eSJNipissing (115 per share)] 12.00 11.48 

691 Nova Scotia Steel and Coal Com. 

70 Pref. 

71 Ogilvie Flour Mills Co Com. 

72 Pref.| 

73 Pacific-Burl Com. 

711 ■ Pref. 

75 Penman's Limited Com. 

76 •• •• Pref., 

77 Porto Rico Com. 24 J 24j 
78 Pref. 

79 Prov. Paper ...Com.i 83 65 

80 •• •• Pref.; 

81 Quebec Railway L. H. & P 

82 Riordon Pulp & Paper Co Com. 

83 ■• •■ " •• Pref.- 

84 Rogers. William A. . Com. 

So •• " Pref. 

96 Russell .Motor Car ..Com- 

87 ,,Pref. 

88 Sawyer Massey. . . Com. 

89 •' " Pref. 

90 Shredded WhealCo Com. 

»1| ■• " - Pref. 

92 Spanish River Paper* Pulp Com. 

93 Pref.l 

94 Pref. 1914 

95 Warr.ant 

96 Steel Co- of Canada Com. 

97 •' •■ " Pref. 

98 Tookc Bros., Ltd Com. 

99 Pref. 

100 Toronto Paper Co 

101 Toronto Railway 

102 Trcthewey ($1 par) 

103 Tuckett Tobacco Co Com. 

104 ■ " Pref. 

lOSTwin City Com. 

106 Western panada Flour 



l.l.SO 
1.236 
1.117 



1064 1061 



1.882 I 146 138 288 206 193 

190 •• 971 93} 142 104 lOll 



888 138 133 



472 691 651 
337 205 196 
177 1041 1021 



165 I 138 134 



22i 



1,110 1 9.75 9.40 330 14 20 13 15 1.655 



lOII 
30{ 
^78 



100 971 
sol 304 



1061 105 
91 91 
23} 23 



24i 221 
I50i 147 



165 .53} 53 



301 26 
184? I6ft 
99i 9!)i 



2.770 1161 954 
111 122 100 



41} 40 

32 J 29} 



5 I 1321 1321 



48 4li 



107 Winnipeg Electr 
RKillTS 

106 Bell Telephon 



464 45 
14,5} 145 
40 37} 



lOfl 115 113 



901 901 

46 37 

174} 148 



231 
451 
84} 



9^ 



1,500 36 



46 


39 


2,.5.52 


65 


65 


?1 


81 


80 


in 



83 

i;U 


83 

i:U 
139a 


10 
600 


90} 90} 
29 27? 


140 
600 


81 
144 


80 
i:t 


in 
350 




,^ 










62.00 62.00 


in 




139S 














51 45 
79 731 


S.0.50 
1.071 


26 
70} 


25 
68 


2.000 


7«4 


63i 


734 


511 



8.40 1,180 68 



THE MONETARY TIMES 



BONDS QUOTED ON TORONTO STOCK EXCHANGE 





Comparative Statement of Prices and Sales during 1919 and 1920 










BONUS 






1919 JANUARY 


1920 


1919 FEBRUARY 1920 


1919 MARCH 


1920 




1 






High Low 


Sales 


High LOW 


Sales 


High Low Sales 


High Low Sales 


High Low Sales 


High Low Sales 


1 


•> 






95 


93 


$27,500 


92} 


91} 


88,100 


944 94 $6,500 




94 94 $7,000 


94 


94 8500 


n 


<l 


Canada Cement 

Canadian Lo<;oniotiv< 
Canada Steamships. 

C.P.R. Notes 

Dominion of Canada > 

Dom. of Canada Victc 


3 


i 


914 


90 


19,000 


94 


93 


10.200 


92J 92 5,766 


93 93 81,000 


934 93* 10,500 
80 80 200 


93 


93 5,500 


i 

S 


fi 














::::::::::.::::::■;::: 


fi 


8 
9 
10 
11 
12 
13 
U 
IS 


VarLoan 1925 

" 1931 

" 1937 

ry War Loan, . 1922 

.1927 

" .1937 

•■ ..1923 

■• ..1933 




97 

97 
98; 
100 J 
1011 
103g 
lOlJ 
102 


959 51,400 
95} 64,300 
96* 353,400 
98| 689,600 
903 170,M)0 
lOO.i 423,900 
99i 1,002.050 

100 1,123,200 


984 
993 
lOil 

1014 

104} 
100 
102^ 
95 

89 


9SJ 439.000 
95 31,1(10 
98 247 000 
98} 1,165,600 
98 172,550 

1023 1,128,850 
98} 89.i.750 

101.! 2,649,300 
94 2,500 
92 2.500 
404 3.000 
89 1,000 


98 964 72,466 
963 96 64,100 
98J 97 261,300 
100} 99| 646,050 
101.1 lOOi 150,600 
103« 102 522,900 
100} 99| 493,800 
1024 99| 1,983,100 


96 95 170,000 
96 944 87,100 
100} 983 452,900 
100 98} 336,650 
1014 101} 54,050 
104} 1003 258, liO 
100 98} 294,700 
102} 993 600,150 
944 944 1,00c 
934 93 1,500 


99* 97 67,600 
99} % 75.600 
lOol 97} 687,600 
1003 100 515,500 
103} 101 90,550 

1064 1033 643,850 

1065 too 1,268,150 
1045 1024 4,116,050 


95} 

95 

too 

993 
1001 
1023 

994 
101} 


94} 192,300 
944 139,400 
97} 572,800 
98* 95,450 
99} 25.400 
1003 775,4.50 
983 15,600 
994 392,250 


7 
8 
9 
10 
11 
12 
13 
14 
15 




Electrical Develonme 
Mexican Lifiht & Pow 






87 


87 


1,000 


92 91 61,000 






16 


• n 


er 








n 












90 894 6,500 






18 


19 












19 


?n 


Quebec Railway, Light and 
Rio de Janeiro Tram. Light 






64 
754 
76 


64 
74 
76 


S.OOO 

36,800 

1,500 






65 64 4,000 




?0 


•'1 








75 71 11500 
78 75 22.000 


75 
79 


69 27,800 
7b 45,000 


VI 


•>? 










n 


■^ 






85i^ 
94? 


854 
94 


1,500 
1.500 






n 


24 


Steel Co. of Canada.. 






96j 


% 


7,500 


96 94 7,000 




98 98 2,000 


973 


963 4,006 


24 


1919 APRIL 


1920 




1919 MAY 


1920 


1919 JUNE 1920 


1919 JULY 


1920 




, 


High Low Sales 


High Low Sales 


High Low 


Sales 


High 


Low 


Sales 


High Low Sales 


High Low Sales 


High Low Sales 


High 


Low Sales 


1 


■> 


94i 93) $9,800 




954 


94} 


87,500 


933 


933 


#500 


94} 94 $2,500 


904 90 81,900 
92 92 16,800 
91 90 9,000 




89 


87 86,500 


9. 


3 








3 




94i 93 6,I0O 




94 


94 


8,000 




95 943 6,000 








s 










f> 


li 



















C 


7 
8 
9 
10 


994 971 112,800 
99* 98 132,600 
lOOi 98i 210.500 
lOOj 99i 617,850 
I03i 102 81,650 
I06i 1043 322,3.1(1 
lOo! lOOi 634,450 
IU4i 104J 1,365,000 


95 

94 
98t 


94 881.600 
91 1 16,(100 
944 268.200 


99i 
998 

100 

100 

102 

106 

lOOj 

1043 
95 


97} 184,700 
973 43,500 
99 136.600 
lOOj 520,050 
IO1I 46,100 
105} 385,250 
100} 628,100 
104} 1,816,900 
934 6,500 


95 
93 
95J 


94 
91 
94 


101,300 
122.000 
267,900 


100| 984 147,200 
lOOl 98 31,300 
102 994 349,700 

101 1004 713,150 
104 1024 181,100 
107 106 752,450 

102 1004 874,600 
1061 1044 2,.522,900 

964 95 9,000 

92 914 6,000 
40 40 500 

93 93 4,000 


95} 94} 135,000 
94J 92 209,800 
97-S 9.53 218,800 


100 964 128,200 
101* 98 31,900 
101} 99 141.700 
lOli 993 643,9.iO 
103s 100 280,4.50 


943 

924 
963 


94 47,400 
90 129,200 
95* 150,S0O 


7 
8 
9 
10 














P 










I' 










1013 993 1.194,250 
105} 1024 1,912,750 
95} 9,5} 5,500 
91 91 4,000 




13 


14 






92 92 566 




14 


l.l 




914 


914 


4,000 




15 


lA 


95 92 4,000 






16 


17 






32 
88 


32 

88 


2,000 
2.500 








18 




894 


894 1,500 


92 


92 


1,000 


89 88 9,000 






18 


19 


80 80 500 


82 82 2,000 






?0 


613 
73 
79 


61f 1,500 
69 4..500 
78 12,500 








63} 63} 1,000 
73 604 56.700 
77 77 3.000 


63 
73 


63 1 ,000 
72 6,000 


in 


?l 






73 
784 

S9 


67 
764 
89 


18,000 
15.000 
11,000 






?1 








80 80 500 






?3 






164} i66i 3.560 

994 994 500 






24 


99i »8 24,66b 


97J 


97} 4,566 


993 


994 


5.500 


994 994 1.066 


% 953 2.000 


953 


954 9 000 


24 




1919 AUGUST 


1920 


1919 SEPTEMBER 1920 


1919 OCTOBER 1920 


1919 NOVEMBER 1920 




1 


High Low Sales 


Higli 


Low .Sales 


High 

90 
95 


Low 
90 
94 


Sales 
»2,000 
6,500 


High 
"87 


Low 


Sales 


High Low Sales 


High Low bales 


High Low Sailea 


High Low Sales 


1 


">. 


94 93h »6,100 


87 


87 $500 


86 


$24,666 


94 '94 83,000 


86 85} 5.200 




854 


84 7,000 


9, 


1 


994 994 $5,000 
94 94 2,000 


<t 


4 






95 


95 


5,000 










4 


S 


















5 


6 
















6 


8 
9 


98 96 30,400 

99 974 47,000 
lOlJ 981 64,100 
lOol 99J 483.600 
1024 100} 102,150 
lD6i 104i 322,350 
101 993 462,900 
105J 102* 1,142,850 

95 95 500 
91 91 1,500 


94} 
92 
96S 


93i 74,100 
90* 81.200 
95 194,600 


98 
99 
lOOg 

losl 

104i 


97 

984 
lOOj 
100 
101* 
1035 
100 
1034 


67,900 
22,600 
126,400 
793,400 
179,950 
973,000 
,093,650 
,812,900 


933 
92 
94} 


914 


86,200 
70,900 
192,400 


97i 973 68,800 
98| 98} 229,400 
lOol lOOi 238,500 
100} 100 703.350 
1021 IO2J 142,000 
1043 104S 530.400 
100* 100 747,350 
lOSi 10312,089,150 


92 j 92J 103.806 97J 973 244.000 
903 88} 133,800 983 98K 265,200 
934 91 196,000 100} 98} 524.30O 


928 
90| 
95 
964 
98 
944 
95 
943 
92 
88 


9l4 66,600 
89} 184,200 
93i 254.700 
954 169,050 
94 5 800 
93i ,36,250 
94 110,300 
93 219,000 
90 5,500 
874 1 ,000 


7 
8 
9 


II 








102} 102i 22'),500 
1043 104} 748.150 
100} lOOj 1.309,550 
1038 103} 2,602,300 


11 












13 








13 










IS 


92 
87i 


92 5,000 
87} 1.000 


92 


91 


5,500 




IS 


IR 


91 


90 


20.500 




84 84 7,000 


91 91 9,000 


16 


17 






17 


18 




89} 


89} 1,000 




89 


89 


500 


913 91} 200 


874 87 1,500 






18 


19 




82 


82 


1,000 






19 




65 65 1,000 














'O 




74 


63i 23,500 


80 


78 


12,000 


73 
75 


65 
72 


67.000 
22,500 


76 75 4,600 
80 80 2,000 


724 70 27.500 
734 72 69.000 


76 704 85,300 
76 76 1.000 


734 
73 


724 16,500 
70 48„500 




?' 




2? 


?3 








?3 


24 




95? 


954 2,500 


100 


96 


1,800 




97 97 1,666 


944 94i 3 000 




94 


93 4,100 


24 




1919 DECEMBER 1920 






1917 




1918 


1919 


1920 




1 


High Low Sales 


High Low Hales 




High 


Low Sales 




High Low Sales 


High Low Sa 


les 


1 High Low 


Sales 




5 


94 94 »5,000 
99 99 4,000 
934 934 1.000 


83 i 
90J 


834 81.000 
90J 1,000 




94 


90 $74,000 








00 
00 
00 
00 


94 834 

i 92 9(^ 


$57,200 

17,800 

25,700 




J 










4 




95 


93 2,800 






86 4,100 ....| 


95 90 7I.S 




S 














5 


a 






..;.: .:::.;:;;::::;■;: : i m"™ inn :...i 










•i 


97| 954 177,400 
98| 954 166,100 
995 98J 250,500 
1001 98J 948,200 
102S lOOJ 288,000 
1043 102} 864,700 
100} 98i 1.212,700 
1031 lOli 2,795,350 

'91* " 91* " l',666' 


921 
91 

95 
98 
% 
984 
974 
%? 
89 


893 108,100 
89 51,200 
934 346,000 
% 1,784.150 
94i 204,250 
94i 1.071,400 
94t 1.165.100 
93} 2,493.050 
88 3,500 




98} 
98} 
96 


94g 938 900 
91 1.479 400 
9li 2,268,310 








KK) 
00 
.00 


968 892 


,605,400 

,355,900 

,362.100 

),550.900 

462.0.SO . . 

.,270.100 

,479,450 

>,353,750 

27,500 

13.000 

5,000 

23.500 


7 


8 








98? 89 

.. ' 100} 90} 

.10(1 954 
,,:... 1014 94 




9 

in 






91} 1,730,150 ....! 
98} 167.350 ....; 
992 24.950 ... 


102 %4 3.344. f 


9 


11 










. .101 


1045 99} 1.942.6,50 


11 


I- 














50 
i50 
50 


]•' 




1 " 








94 
93 




14 


\ 






102? 


14 


1^ 


1 




95 88 

931 84 

. . 404 32 
,90 87 








92i 
30 

96 
82 


89} 2,000 
30 9.000 
87 2.500 
82 8,000 






84} 19.500 ... I 






17 
















89 89 1.500 










DO 

00 

KK) 
.00 
«0 
KK) 
00 




11 








. 80 
. 593 
. 83. 
80 
.82 
94 






19 




76' '7S 21,766' 


564 
74 
704 


56i 1,000 
734 13,000 
60} 21,000 










. . 64 564 

754 604 

79 693 


9,.«00 

308,800 

260.000 

11.000 

39,600 .... 


tn 


?l 




86} 
84 


80 40,300 






80 704 123 f 


?i 


n 






■>? 






5.400 








89 
91 




24 




9i 


91 3,000 




994 


90 2. 


88 32,600 .... 


100 94 44,. 


1 973 


24 



January 7, 1921 



THE MONETARY TIMES 



LOAN & TRUST COS. quoteu on TORONTO STOCK EXCHAiNGE 

Comparative Statement of Prices and Sales during 1919 and 1920 





COMPANIES 


1919 


JANUARY 


1920 






1919 


FEBRUARY 


1920 






1919 


MARCH 


1920 






I 


HiKh 

Canada Landed & National Invest 148 

Canada Permanent Mort Corporation 170 


Low 

148 

167 


Sales 

I 

743 


High 
140 
171 


Low 

137j 
167 


Sales 
112 
833 


HiKh 
149 
172 


Low 

149 

169 


Sales 

26 

1,930 


Hieh 
isoi 

175* 


Low 

150 
171 


Sales 
12 
573 


High 


Low 


Sales 


Hieh 
150 
178 


Low 

148i 
175 


Sales 

77 

1,005 




2 
3 


172 


169 


cii 


2 


4 


■' 20% paid 
Colonial Investment & Loan 












;:;;;::;:::::::'" 








5 
6 


81 


81 


930 


81 


74 


241 


81 


81 


532 


73 


69 


471 


81 


80 


348 


70 


68 


368 


5 


7 
R 




















20% paid 

Huron and Erie MortSagc Corp 

20% paid 
New 




















9 


204 


200 


24 


112 


112 


11 


210 
201 


196 
196 


475 
66 


112? 


112 


18 








II 


198 


195 


101 




10 


1 














•!. 
















142 
121 
209 


142 
121 
209 


15 
16 
39 


1^ 
l3 


3 






120 


120 


2 


127 


127 


20 


123 


I22i 


20 


126 


126 


10 


4 






S 












160 


155 


41 


15 
16 
17 
18 


A 


20%paid 

Real Estate Loan 












7 




95 
210 
132 


99 
210 
I29i 


6 
58 
20 








95 
211 


95 
211 


9 
5 


8 








210 
134 


210 
134 


8 
10 




S 






134 


134 


se 


134 


134 


22 















1919 


APRIL 


1920 






1919 


MAY 


1920 






1919 


JUNE 


1920 






1919 


JULY 


1920 






High 
148 
171 




Low 

148 

170 


Sales 

9 

165 


High 
149 
177 


Low 
1424 
l7Si 


Sales 

28 

2.112 


High 


Low 


Sales! 


High 
1424 
176 


Low 
I42J 
174 


Sales 

10 

4.816 


High 


Low 


Sales 


High 
■42 
174 


Low 
1391 
170 


Sales 
52 
365 


High 


Low 


Sales 


High 
140 
170 


Low 

138 
159 


Sales 

24 

1,005 


1 


174i 


1734 


513 


176 


1724 


856 


175 


1724 


757 


2 




1 














79 
75 


79 
75 


las 

10 


70 


67 


231 


70 


70 


100 


70 

72 


68 
72 


283 
10 


70 


67 


654 


68 


67 


88 


72 
75 


70 
75 


396 
20 


67S 


67 


395 


5 

6 


146 


146 


9 














7 


















121 


121 


16 


8 




Il3i 


Il3i 


4 


218 
100 


218 

too 

109 
142 


8 
25 
SO 

7 


il3i 
103 


113 
103 


21 
56 




U2 


112 


ISO 




9 










10 










112 
142 
118 


112 
141 
118 


5 

31 

' 12 




114 


114 


14 




11 












142 
1221 
230 


142 
1V!24 
220 


20 
13 
52 




I? 




I2S 


123 


189 


126 


120 


21 


120 


120 


8 


121 
200 


121 

200 


71 

5 


13 




200 
160 


200 
160 


4 
24 


14 










160 


160 


\i 






IS 


















IR 




. ... .......... ....|.. ............ ........ 


95 
206 
135 


92 
206 
134 


28 
153 






100 
220 
133 


100 
215 
133 


12 
11 
25 




17 


2071 


207i 
132 


12 
7 


206 
134i 


206 
134i 

1920 


9 
20 


207i 


207i 


18 




206 


2024 


86 


200 


200 


10 


18 


135 


135 


10 


19 


















1919 


AUG 


u ;t 






1919 


SEPTE 


MBE 


1920 






1919 


OCTOBER 


1920 




High 
140 
170 


1919 


NOVEMBER 

1920 






High 


Low 


Sales 


High 
140 
160i 


Low 
140 
157 


Sales 

4 

1643 


High 
143 
174t 


Low 

140 

I70i 


Sales 
11 
760 


HiKh 
I40i 
Ibl 


Low 
138A 
160 


Sales 

12 

524 


High 
140 
171i 


Low 

138 

164i 


Sales 
50 
466 


High 


Low 


Sales 


Low 

140 

168 


Sales 
20 
598 


HiKh 
132 
166 


Low 
131 
160 


Sales 

35 

1,071 


1 


175 


I74i 


348 


163i 


162 


346 


2 
3 


..................... 


...................... 


..................... 


■::::::::::::;:::;: 


::;;•;::::::::;::;::■ 


78' 






:::::.:;;;:;;;:.;:.;:; 




4 


75 


70 


1,026 


74 


67 


499 


7SJ 


7S 


565 


82 


74 


274 


74 


74 


67 


78 


18 


78 


70 


697 


77 


77 


32 


5 
6 




145 


145 


23 


146 


125 


68 






US 
120 
110 


145 
120 
110 


6 
S 
4 




145 


145 


9 


7 














8 




112 


112 


12 


:;• 








114 


114 




1124 


1124 


93 


9 




100 
114 
140 
120 
205 
157 


100 
114 
140 
120 
205 
157 


14 

10 
77 
20 
5 
19 




::::■;:: 


10 








112 


112 


4 


.................... 







II 








141 


141 


13 






1? 




121 
200 


120 
200 


28 
20 


121 

200 
155 


120 
200 
155 


14 
98 
2 


120 
205 
160 


120 
205 
160 


10 
28 
9 


119 


119 


29 


US 


110 


48 


I!l 




'::::;::.:.:;;;;:.:: 


14 




155 


155 


1 


1.57 
148 


157 
148 


2 
18 




IS 








16 








..................... 


98 
2l7i 
131 


98 
215 
131 


8 
18 
21 


92 


92 


1 




17 


218 


218 


5 


200 
134 


200 
134 


18 
14 


220 
131 


218 
131 


35 

66 


206 


204 


" 


212 
131 


210 
131 


59 
2 


200 
132* 


1964 
132 


25 
21 ■ 


18 


132 


132 


22 


19 










{High Low Sales High Low Sales 



High Low 
. 160 150 
. 173 1624 



Sales High Low 

330 1481 140 

4,774 • 169 1624 



1124 1124 



15 160 160 



18 211 207 



I30i 1301 



115 1 133 133 

19 ... 121 121 

237 204 202 

332 190 190 



1281 
2071 



185 1264 1264 



High Low Sales 



57 146 145 

12 i 121 120 

519 1131 110 

206 103 103 



247 1 204 199J 



The close of the 1920 whaling season has brought the 
return of the whalers of the British Columbia coast to port 
with a satisfactory catch. While an official report is not yet 
available it is expected that about 500 whales will have been 



accounted for in British Columbia waters. In 1918 the catch 
was 500, and in 1919, 423. The whalers will now lie at their 
berths at Point Ellice bridge in Victoria until the opening of 
the season next spring. 



THE MONETARY TIMES 



Volume 66 



BANKS QUOTED ON TORONTO STOCK EXCHANGE 

Comparative Statement of Prices and Sales during 1919 and 1920 









BANKS 








1199 


JANUARY 


1920 


1919 FEBRUARY 1920 




1919 MARCH 


1920 
















High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High 


1 
Low Sales j 




1 










215 


205 


273 


199} 


196 


457 


205 205 




177 


198 


I9li 


' 153 


205 


204 


144 


196 


190* 


242 




'/ 




nion 








219 


201 


179 


205 


2021 


227 


215 214} 




45 


204* 


203 


119 


?14* 


208 


129 


206 


201* 


482 


2 


3 


Ham 


ton - 








209 


200 


228 


194 


191 


106 


205 183* 




421 


194 


190 


115 


186* 


183* 


4B7 


192 


1891 


182 


3 


4 


Impe 


iai 








210 


203 


l.so 


200 


196 


163 


207 206 




64 


197 


194 


148 


206 


203 


67 


195 


190 


400 


4 


.-i 


Mcrchnnts. . 








181 


180 


33 


190 


187 


150 


190i 19(1} 




20 


189 


187 


62 


192* 


189 


233 


190 


189 


20 


t> 


« 


Molsi 


ns 








180^ 


180} 


5 


187 


187 


87 








190 


190 


9 








188 


186 


59 






Mont 


•cal 








216} 


216} 


15 


207 


206 


72 


213g 212 




15 


207 


206:i 


34 


212* 


212* 


5 


218 


215 


47 


7 


8 


NOVM 


Scotia 








270 


257} 


48 


271 


270 


93 








271 


■m 


58 


269* 


266 


73 


270 


266 


2 




q 


Otta\ 
Roy.-) 


■a . . . 








206 
214 


203 
212 


238 1 
163 








208 208 
212 205 




4 

106 








2081 












H 


10 


217 


215. 


85 


218 


217 


84 


207 


80 


219 


217 


l04 


10 


11 


Stanc 


ard 








215 


•■09} 


114 1 


21 li 


209 


102 


212 209 




177 


214? 


210} 


134 


211 


209 


127 


■m 


217 


186 


11 




Toron 


to. 








203 


193 


260 


197 


195 


243 


204} 201 




362 


196* 


195 


61 


201 


21K)1 


233 


195 


194 






lii 


Unior 










171 


159 


103 


161 


160 


63 


160} 158 




276 


160 


156 


272 


160 


159* 


16 


158} 


156 


172 


13 




Hieh 


1919 


APRIL 


1920 






1919 MAY 


1920 


1919 




JUNK 


1920 




1919 JULY 


1920 








Low 


Sales 


High Low 


Sales 


Hi^h 


Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low Sales 




1 


205 


204* 


198 


192 


190 


257 


205 


2u1 


295 


191 


185 


.587 


205 203 




157 


1K9 


186 


101 


2(15 


•'03 


205 


185* 


183 


265 




2 


208* 


207i 


360 


202 


199 


269 


208 


206 


,532 


200 


199 


146 


207} 201 




921 


202* 


196} 


304 


205 


2(14 


188 


198* 


195 


103 


2 


3 


186i 


185 


496 


190 


189 


101 


1855 


182 


669 


19i* 


187 


520 


184 183 




'!68 


192} 


186,! 


417 


186 


183* 


378 


187 


170 


.562 




4 


205 


1983 


363 


195 


189} 


244 


1981 


197 


4.56 


195 


189* 


347 


200 198 




197 


195 


192} 


118 


2(K) 


196 


317 


195 


190 


130 


1 


5 


202* 


192? 


250 


190 


187 


82 


199 


I85J 


133 


2023 


194* 


186 


198 197 




38 


188} 


183 


75 


198 


193 


56 


182 


179 


38 


:> 


K 


197 


197 














































U 


7 


215 


214} 


6 


2?n* 


215 


27 


218 


218 


10 


217 


205 


51 


217 216 




102 


202 


195 


102 


217* 


215 


26 


201* 


200 


15 


7 


a 
q 


268 


267 


63 


270 


270 


1 


275 


270 


83 


267 


265} 


10 


276 273 




28 


265 


263 


45 


277 


275 


75 


2B2 


260j 


41 


8 
9 


10 


215 


208} 


268 


22.5 


219 


179 


216 


212 


153 


233} 


226| 


306 


216 214 




72 


216 


2113 


104 


216 


215 


189 


210* 


208 


131 


Ifl 


1 


209J 


204g 


463 


217* 


211* 


260 


212 


204} 


63 


216 


214 


176 


214} 213 




68 


216 


214 


51 


217 


215 


45 


215 


210* 


96 




12 


201 


200 


157 


194 


193 


206 


200* 


197* 


61 


1923 


186 


86 


200 199} 




103 


190 


189 


150 


199S 


198 


119 


190 


188 


24 


12 


13 


161 


160 


74 


158 


157 


36 


160 


160 


4 


156} 


153* 


81 


161 160 




16 


1.55 


153* 


96 


163 


161 


60 


154 


153* 


114 








1919 


AUGUST 


1920 






1918 SEPTE 


MBE 


R 1919 


1919 


OCTOBER 


1920 


1919 NOVEMBER 1920 






High Low 


Pales 


Hi eh 


Low 


Sales 


HiRh 


Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


H;gh Lo« 


Sales 


High 


Low 


Sales 






20iS 


198} 


217 


184* 


177 


256 


199* 


198 


134 


177 


174 


375 


198i 197 
205| 202 




336 


178 


173* 


209 


2005 


197 


403 


187 


183 


165 




2 


205 


204 


62 


198 


195 


242 


206 


202 


247 


198 


193i 


287 




242 


195} 


192 


221 


206 


204 


552 


194 


190 


116 




3 


192 


188 


136 


184 


177 


266 


188 


:87 


131 


178 


176 


283 


196 1895 




322 


177 


176 


182 


195* 


191 


140 


177 


169 


104 


3 


4 


200 


198 


59 


192* 


190 


275 


200 


198 


171 


191 


189 


104 


20O 197 




204 


191 


188 


124 


199 


197 


375 


186 


184 


132 




6 


194 


194 


29 


180 


177 


86 


195 


194 


16 


175 


175 


10 


194 191 




28 


175 


166* 


mo 


189 


188 


10 


172 


164* 


32 


o 


K 








183 


180i 


11 




















173 
192| 
246} 


173 


5 


193 


191 
207j 
273 


12 








h 












2001 
248 


















7 


8 


277 


276i 


22 


252 


248 


204 


276 


276 


2 


245 


88 


272 271 




18 


245 


186 


274 


61 








8 


q 




» 


10 


216 


215 


7 


211 


204 


23 


21.5* 


213* 


426 


207 


205 


81 


2151 214 




1,30 


204 


197 


99 


VI 6* 


213 


66 


205 


191 


107 


10 


u 


21. S* 


215 


107 


210 


210 


63 


215} 


215 


122 


211 


209 


81 


215 2tl| 




182 


210* 


209* 


68 


211| 


21( 


99 


210 


207 


89 


11 


12 


I99( 


196 


96 


185 


182 


30 


197 


195 


122 


182 


181 


70 


197 J 197 




67 


182 


182 


14 


196 


19.5, 


76 


183} 


■179 


17 




13 


162i 
High 


160 


59 


155 


153} 


281 


164 


161 


42 


153 


147 


36 


164 162i 




108 


147 


142 


329 


164 


159 


111 


143} 


139 


,521 


13 




1919 


DECEMBER 1920 




1917 


. 1918 


1919 


1920 








IjOW 


Sales 


High 


Low 


sales 




High Low s 


iaies 




High Low Sales 






HiRh Low Sales 




High Low 


sales 








19SS 
205i 
192V 
198 
190 
192 
209J 
273 


195 
201 
188 
196 
187i 
190 
208( 
273 


231 

282 
142 
240 
K1 
11 
40 
39 


187 
199 
171 
188 
147 


181 

190 

168 

184* 

159 


306 
202 
2.50 
65 
43 


:;'.■; 


188 
212} 
192 
200} 
169 
184 
234 
257 
202 
214 
215 
192 
142 


182} 
202 
184 
185 
167 
180 
220 
252 
202 
202 
200 
184i 
136 


.837 
971 
459 
.370 
22 
53 
IS 
98 
.50 
308 
898 
187 
735 






.183i 
i 199 
i 184 
* 185 1 

167 


976 
666 
272 
296 
153 






215 
219 
209 
210 
202} 
197 
218 
277 
208 
217 
218 
204* 
171 


195 2.770 . 
201 3.739 . 
182 3,798 . 

196 2.663 . 
180 907 . 
1801 35 . 
207i 404 . 
257} 517 . 
203 242 . 
205 1 .836 . 
204} 1.632 . 
193 1.823 . 
158 977 




199' 


181 
190 
168 
184 
159 
173 
185 
245 


2,718 
3.088 
2,250 
884 
181 
509 
741 






9 












206 


*> 


? 












194 


» 


4 




202 








200 

202i 


4 












A 


fi 












190 


« 


', 


196 
251* 


194} 
2.i0 


18 
13 








210 
248 
201 
205 
5 200 
184* 
137 


123 
340 
142 
267 
590 
178 
920 








2204 


7 


f 




... 248 








271 


8- 


« 












9 


in 


217 
210 

1 96 J 
162 


2\4h 
209} 
194} 
158 


176 
65 
167 
108 


194* 
212 
182 
141 


192 
200 
■179 
1391 


270 
490 
49 
153 


;;::; 












233 


191 
20O 
179 
139 


1 ,.573 
1.696 
1.029 
2,154 




1(1 


11 












222 


11 


1? 












197 


12 


t; 














IS 



















ADDITIONAL AND NEW COMPANIES LISTED ON TORONTO STOCK EXCHANGE 





STOCKS 


JANUARY 


FEBRUARY 


MARCH 


APRIL 


MAY 


JUNE 


1 


Abitibi Listed Sept. 1920. Com. 


High Low Sales 


High Low Sales 


High Low Sales 


High Low Sales 


High Low Sales 


High Low Sales 


2 


Pref 














3 








62 62 SO 


62 62 00 






4 












5 
















6 


Dominion Coal Pref. 


94} 94} 5 




88} 88* 10 




85* 85} 5 




7 






8 




' 














Standard Chemical Com. 












38 38 25 


1(1 


Pref. 

BnlKis 

Bell Telephone 










36 36 15 


11 










12 


Dominion of Canada Victory War Loan . .1924 
1934 










13 




^ 






14 










91 91 $2,000 




15 


Rio de Janeiro Tram. Light & Power. $100 












16 
















17 


Sterlinc Coal . 

Rights 
Canadian General Electric 


80 80 $2,500 


80 80 $1,600 


80 80 83,000 








18 






19 


32 31 43 












20 


National Trust 










12 00 7.00 1 100 


21 




1 1 


9 9 230 


9 7J 61 




22 




' ■ 








;;::::;;::;:::;:;;:;;:r;::::;;;;:::::: .. ..• 



January 7, 1921 



THE MONETARY TIMES 



ADDITIONAL AND NEW COMPANIES LISTED ON TORONTO STOCK EXCHANGE— Continued 



STOCKS 


.JULY 


AUGUST 


SEPTEMBER 


OCTOBER 


NOVEMBER 


DECEMBER 


1920 




High Low 


Sales 


High Low 


Sales 


High Low 
78g 76i 


Sales 
255 


High Low 
794 67 


Sales 
1.125 


High Low 
674 544 


Sales 
2.435 


High Low Sales 
574 494 2,517 


High 

794 


Low 

494 


Sales 
6.33:i 


■> •■ Pref. 












&5 65 
35 34 

82 78* 


15 

> 50 

91 










65 
35 
82 
944 
380 
27 
38 
36 

904 
95| 
93* 
91 
65 
92* 
85 

50 
32 
12.00 
9 
6 


62 
6 
70 
85* 
310 
25 
38 
28 

90J 
92 
89 
91 
62 
92J 
80 

IS 
31 

7.00 

1 


115 
362 


4 Am.S.Bk.Jy. 1920.Com. 

5 ' " Pref. 


30 
82 


2S 
82 


161 
6 


30 
83j 


SO 

78 


94 
87 


30 30 
78 74 


4 
123 


7J 6 
744 Tl 


49 
194 


74 74 4 
72 70 82 










380 315 
264 264 


45 
50 


320 310 42 






8 Port Hope SanitaryCom. 


25 


25 


25 




27 26* 


175 














10 " " Pref. 








34 324 

s 


35 


28 28 


10 


60 

$4,000 

791 .700 

1.766.950 


ICoiKiS 


90} 


904 


t3.()0<l 


oc.J MOl 


Si. 000 






95J 92 
92 89 


S41.450 
453.950 


9SJ 93 8750.250 
934 90j 3,313,000 








■ 










15 RfodeJan T. L. &P.$100 










65 65 


<l,000 


628 62 
92i 921 


3.800 
1„500 


63 62 6,700 








..:;; ;.;...;:.::.;:;; 












80 


80 


85.000 






85 85 2,o66 


14.100 


UlKllIK 










li i 






















































1.050 


i J 576 




















ADDITIONAL AND NEW COMPANIES LISTED ON MONTREAL STOCK EXCHANGE 



STOCKS 


JA.N'UARV 


FEBRUARY 


MARCH 


APRIL 




MAY 






JUNE 




New 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 


Sales 


High Low 
71 63 


Sales 
23,113 


High Low 
841 703 


Sales 
55.212 














Pref. 

Pref. 






464 
90 


46 
88 


1,135 
661 


45 
90 


443 
90 


80 
SO 






Carriage Factories 


88 
20 
113 
81 
691 
91 


79i 
20 
106 
81 
63 
90 


2.279 
100 

9.163 
6 

4„533 
175 


904 


84 


682 














108 
801 
64 
9U 


103 

in 

60 

90 


3,688 

439 

1,065 

25 


113 
80 
67 
89 

100 
70 
83 


1034 

77 
604 
87 
1(10 
65 
80j 


6,061 

1,256 

1,863 

30 

10 

252 

183 


113 
80 
68 

874 


103 

78 
60 
861 


6,439 
779 

2,418 
125 


106 

784 
654 
87 


103 
78 
60J 

84 


2,625 
801 

1.110 
233 


106 

781 
64 
854 


103 
77 
60 
84 


2.344 
514 
700 
310 


Dominion Steel Corporation.... 

Dominion Gl^^ss 


Pref. 

Com. 

Pref. 

Pref. 

Com 

Pref. 

Com. 


Holt Renfrew 


70 
85 


61 
85 


308 
210 


66 
84 


62 
84 


68 
3 


70 


70 


11 








81 


81 


20 


801 
14 
90 
IIOJ 
674 


80i 
14 
86 


105 
54 

2:«i 

32.76-' 
75,2.92 










85 
90 
54 


83* 
82 
49i 


170 
7,135 
25.090 


90 
98 
533 


834 
84 
49 


330 
21.134 
34,110 




89 
lOOi 
521 


88 


30 
13.935 
8.691 








'SJt 


93 
49 


11,464 
14.041 




Com. 








Porto Rico 




















..New Stock 
















** 


4li 


6.199 


42 


33} 


4,476 


37) 


334 


2,291, 


33i 


29i 


1.395 


29i 


25 


315 


36 


26i 


380 


Itolllls 




*V% 


88 


85 


$3,000 


88 


85 


84.000 


90 


894 


814.000 




83 
95i 


83 
954 


1 1.000 
7.500 


84 


84 


81.000 










Pcirto Rico 






rt 

73J 


72 
724 


6.000 
6.000 






Km de Janeiro 






72 
974 


72 
97* 


1.600 
5,500 









i;i 






96 


95 


22.000 




93i 


93 


i.666 




Victory Loan. 1924. 












■■ 1934 






















RlKhtH 




25 
38" 


to 


1.793 
'V.S67 




















'"- 


Lake of Woods 










91 














Riordon 








lU 


9 


5.778 


64 


2,894 














:::;!;:;;..;;::;;;::. :i:;::;::;:;;;:;:::: 















High Low 
87 75 
744 70 



684 



74i 



Abitibi New 

Brompton....New Stock 
Can. lron& Foun...Pref. 
Carriage Factories. Pref. 

Calgary Power 

Detroit United 

Dom. Steel Cor.. . . Pref. 

Dominion Glass . .Com. 

...Pref. 

(touM Man. Co Com. 

Holt Renfrew Com. 

Pref. 

Illinois Traction. ..Com. 
Kaministiciua Power....' 92* 92! 
LaurcntideCo. . N.Stk. 125 106i 
N. Brew. 325 Par..Com. 70 60 

Porto Rico 1 

St. Maurice Paper i .. 

Wab. Cotton . New Stock 

Western Groceries-Corn.' 34 31 

Biiiidti 

Montreal Power. . .' ' 

Mon L. H.&P 44%! 84 84 

Ontario Steel hroducts..! 

Porto Rico 

Rio de Janeiro 

Spanish Kiver I 974 93 

Victory Loan. 1924 

1934 

KiKhts 

Canadian Gen. Electric 

Howard Smith .. 

Lake of Woods i 

Riordon 



Sales 
,53.762 
16.158 



4) 



SEPTEMBER 



Sales 'High Low 
19,.530 I 84 75 
26.874 



Sales 
19.895 
67.647 



I03i 103 
71* 624 



14* 14 
97 92} 

1184 too 



324 28 



324 314 705 

834 83* f4.000 



^igh Low Sales 
79 66 13.380 

8li 681 .57.574 



844 



High Low Sales 

69 543 22.011 

70 59 32.840 



100 884 16.345 



73J 731 4.O0O 



High Low Sales 
58 494 18.895 
.593 42} 37,190 



654 64 



89* 873 810.000 



79} 
62* 



1184 1184 
70 70 
85 80j 



Sales 
225.798 
238.283 



48..SB5 
6.,5-l2 

19.085 
1.912 



193 



1.539 

204.671 

359.345 

27 

2,150 

1.120 

20.767 



8;t4 



85.000 
8:) 34.000 
951 7.,500 
72 8.000 

72 11.600 
93 48.,S00 
89 749,400 
88i 1.810.650 



10 



1,793 
4.922 
1,567 
8,6T2 



THE MONETARY TIMES 



STOCK MARKETS IN 19SO 

Record of High and Low Prices and Total Sales for the year, on Montreal and Toronto Stock Exchanges 
MONTREAL TORONTO 



Abitibi Com. 

Href. 

Ames-HoIdcn-McCready Com. 

rrcf. 

Asbestos Corporation .' Com. 

Href. 

Atlantic Sugar Co 



1919 



. Href. 



Bell Telepho 



New Stock 

Brazilian T.L.& P. Co 

British Columbia Fisihing & Packing Co.. 

Brompt n Com. 

Canada Cement, Com. 

Pref. 

Canada Foundries St Forgings Com. 

^- Prtf, 

Canada N.W. Lands Com. 

Canada Steamship Lines, Ltd C» m. 

I'ref. 

Voting Trust 

Canadian Pacific Railway 

Canadian Car and Foundry Com. 

Pref 

Can. Consolidated Rubber Co Com 

Pref 

Canadian Converters 

Canadian Cottons, Limited Com 

Pref 

Canadian Gener.. 1 Electric 

Cunadian Locomotive Com 

Pref 

Carriage Factories Com 

Consolidate,! \ ing & Smelt. Co., $25 par 

Crown Reserve Mining Co.. 

Dominion Bridge 

Dominion Canners Com 

Prtf 

Dominion Coal Pref 

Dominion Steel Corporation Com 

Dominion Iron a. d Steel Co Pref 

Dominion Textile Com 

.Pr. f 



iioi 



I si 



4yi 



74i 63J 



7Si 
100 
12!)S 



Goodwins Limited Com. 

Pref. 

Hillcrest Collieries Com. 

Pref. 

Howard Smith Paper MilK Cnm. 

Pref. 

Illinois Traction Pref. 

Intercolonial Coal . . 



Low Sales 

4S 31.73(> 

9U 4.1110 

26 8Q,9S0 

654 90.412 

44 37.756i 

6\h ■M.ami 

20 219,731 
13 .i.S9 
7.649 
177 
126,946 
3;l,613 
242,873 
44.89C 
10.3H8 
15.700 
85 
SO 
91,072 
69„'i20 
2.483 



174 

19.28« 

25.%7 

4.231 

7,686 

7.996 

1.147 

10.706 

26,696 

117.067 

24.872 

33.27S 

130 

2,557 

348.647 

3.S44 

46.954 

1,418 

1,187 

1,0'22 

238 



I'ref. 



Lake of Woods Milling Co. 



Laurentide Co 

Lyall Construction Co. 
Macdonald Co., A., Ltd. 
M..ckay Companies 



.Com, 
.Com. 
-Com 



Maple Leaf Milling C.i Co 

' Pr 

Montreal Cottons, Limited Ci- 



Montreal L. H a 

iMontreal Lo^n a 
Montreal Telegr: 
Montreal Tram\ 
National Brewet 



, $100 Par Com. 

Pref. 

Nova Scotia Steel and Coal Co Com. 

.Pref. 



Ogilv 



■Mills Co. 



Com 

" Pref. 

Ontario Steel Products Ci m. 

Pref. 

Ottawa L. H.&P 

Ottawa Traction 

Penman's Limited C'm. 

" Pref 

Price Bros Com 

Provincial Paner Com 

•• Pref, 

Quebec Railway. Light, Heat* Power Co 

Riordo i Pulp & Paper Co Com 

" Pref 

Russell Motor Car Cum 

■■ Pref 

Sawyer-Massey. .Com 

P.ef 

nd Power Co 

) C'm. 

Pr-^f. 

Spanish River Paper & Pulp Co Com. 

'.' ....Pri-f 

' Pref 1914 

" Vouci er 

Steel Company of Canada C* m 

....Pref. 

St. Lawrence Flour Mills Com. 

Pref. 



90.355 
58.712 
54,3H8 



6.902 

2.847 

113.128 



1..S63 

149,>09 

6.813 

11.018 



11,743 
1.499 
2.134 



87i 
16* 
II7J 



96.055 
56,6i;4 
3.122 



Tookc Bros. 



Com- 

•• Pref. 

Twin City 

VVinnipCK Electric 

Wayagamack 

Wabasso Cotton 

Windsor Hotel 

Woods Manufacturing Co Com 

■• Pref 



1274 114^ 62.983 



17 


381.609 


63* 


110.031 


69 


3,270 


5* 


10,203 


57* 


263.0.59 


93* 


5,268 


87* 


44.971 


80 


2Z4 


VO 


24,161 


n 


5,117 


2.605 


22 


29.024 


80 


1.099 


■Mi 


55 


48 


91 


45 


117.722 


.58 


5.813 


SO 


9 


8Bi 


2.251 


83J 


1.793 



Sales 
8,716 
1.282 
3,875 
22 304 



103 


64 


34,532 


108 


83 


11,753 


161 


16 


515.437 


185 


244 


13,560 


HI 


100 


9,420 


51 


28 


142.294 


66 


34 


7,311 


151 


71^ 


2,58.298 


75 


.55 


39,2914 


100 


883 


8.115 


256 


75 


31,411 


91 


89 


30 


40 


40 


25 


80 


,34 


62 028 


85 


60i 


24,034 


72 


44 


3,010 


140 


133 


266 


74 


29 


18,998 


109 


67 


20,635 


100 


too 


25 


95 


873 


5 


80 


,55 


14,283 


100 


71 


13.2-'0 


83 


76 


2.390 


109 


91 


9,902 


100 


97* 


693i 


91 


41 


411 


49* 


7* 


15.160 


rn 


1.5* 


61.183 


44. 


13 


3.725 


107 


69 


19,709 


66i 


26 


32,840 


88 


79 


90 


974 


70 


1,060 


824 


39 


134,167 


92 


69 


2,935 


146^ 


865 


40.227 


105 


89 


1.029 


35 


■m 


,300 


95 


75 


6,32 


63 


55 


1,080 


167 


743 


21,472 


107i 


91 


3,237 


70 


64 


1.362 


,50 


50 


25 


2.'5 


130 


4,1563 



77 684 

69} 664 

1843 137i 

944 693 



191* 


25.917 


603 


16.787 


42 


3.50 


97 


247 


175 


3.886 


97 


1,446 


-.58 


13,193 


90 


50 


70 


492 


684 


■JO 


93 


9,691 


78 J 


■2773 


250 


7.650 


80 


1.718 


85 


56 


18 


195.075 


127 


79,501 


83 


2.674 



'■^i 


14i 


5 


643 


643 


1 


1194 


97* 


46.152 


119 


75 


2.861 


100 


853 


592 


125i 


75 


410,475 


149 


82 


251.997 


9^ 


5* 


2.108 


88i 


.543 


103,871 


101 


853 


2.932 


1394 


59 


9.080 


96* 


92 


390 


86 


67 


5,862 


91 


83 


784 


64 


37 


10.931 


57 


41 


2.788 


91 


SlJ 


313 


48 


32 


65 


40 


.30 


708 


1.50i 


71 


93.183 


135 


102 


2.051 


1 100 


68 


6^8 


no 


98* 


1,639 


102 


78i 


572 



STOCKS 



American Cyanamid Co Com. 

Ames-Holuen-McCready Com. 

Pref, 

Atlantic Sugar Com, 

• Pref 

Barcelona 

BeJl Telephone 

New Stock 

Brazil! n 

B.C. Fishing and Packing Co 
Burt Co.. F.N 



Com 



HiKh Low Sales 
47 38 670 



Canada Bread 

Canada Cement Company . 



Canada Foundries & Forgings 



Canadian Locomotive 

Canadian Car & Foundry. 



Canadian Pacific Railway. 

Canadian Salt 

City Dairy 



Com 

Pref. I 

Com. 

Pref. 

Com. 

Pret. 

Com. 

Pref. 

Com. 

td Com. 

Pref. 
Voting Trust 

Com. 

Pref. 

Com. 

Pref. 

Com. 

Pref. 



Com. 

Pref, 

Confederation Life 

Coni^gas Mines. Ltd ($5 per share) 

Cons. Mining* Smelting Co.. $25 pa 

Consumers lias 

Crow's Nest Pass Coal Co 

Crown Reserve ($1 per share 

Detroit United 

Dome Mines ($10 par) 

Dominion Canners Com, 

Pref, 

Dominion Iron & Steel Com, 

Pref 

1 Steel Corporatioi 



Domii 

Dominion lelegraph. 
Duluth Superior.. , . 
Howard Smith 



Pref 



. -Com, 
,,Pref, 
$5 par) 



International Petroleum C 

LaliC Superior Ciirp 

Lake of Woods Milling Co Com 



Maple Leaf Milling. 



Monarch Knitting 

National Steel Car Co.. 



1'22g 664 

13i 53 

133 1154 

118 118 

603 50 

69 46 

1124 71 

llOi 89 



733 63 
lOli 95 
201i '2014 



3,541 
9,611 

20,072 
6,580 

17,899 

1,1,59 

19 

60.259 
6.tj63 
3..568 
3,00€ 

35,645 
2,769 

34,358 

1,096 

10 



111.* 



164 

117 

3J 



694 30 



5,-229 
1,4% 
6,888 



10,598 
19,151 
3,920 



75l 583 53,756 



62.00 19.25 1.562 



54i 
88i 
119,{ 



.Pref. 
.Com. 
Prtf. 



Vot. Trust.. Com 

■• ..Pref. 

Nipissing ($5 per share) 

Nova Scotia Steel and Coal Com. 

Pref. 

Ogilvie Flour Mills Co Com. 

" Pref. 

Pacific-Burt C m. 

Pref. 

Penman's Limited Com. 

Pref. 

Porto Rico Cnm. 

•• Pref. 

Prov. Paper Com. 

Pref. 

Quebec R.ilway L. H. & P 

Rior^on Pulp & Paper Co Com. 

•• " Pref. 

Rogers, William A Com. 

■• Prif. 

Russell Motor Car Com. 

■ Pref. 

Sawyer Massey Com 



Pref. 
Com. 
Pref 
Spanish River Paper & Pulp Com 



Shredded Wheat Co.. 



.W.. 



nt 



Steel Co. of Canada Com. 

" •■ ■■ Pref. 

Tooke Bros., Ltd Com. 

Pref. 

Toronto Paper Co - 

Toronto Railway 

Trethewey (SI par) 

Tuckett Tobacco Co Com, 

' Pref, 

Twin City Com, 

Western Canada Flour 

Winnipeg Electric 

RIGHTS 

Bell Telephone 



30i 174 

1843 1164 

99J 954 

80 30 

954 65 

1024 68 



174 
634 
91* 
54 
574 



1.231 
2.663 
1.344 

1.189 



30.883 
3.321 
1.797 



4.793 
.52,800 
8.'277 



13.75 8.40 12.123 



223 12fc2 



71 
88} 
I0I4 



January 



THE MONETARY TIMES 



CURRENT PROBLEMS IN THE MORTGAGE LOAN 
FIELD 

Payments Good But Not Equal to Demand for New Loans — 

Shareholders of Some Companies Have Suffered, But 

Results Are Generally Good 

By John Appleton. 

TO-DAY'S problem in the field of the mortgage lenders is 
obtaining funds to meet the demands of a larger number 
of borrowers than they have hitherto had to deal with. As 
usual, it has happened that borrowers ai-e many, so lenders are 
few. Of course this applies to the particular sphere in which 
the mortgage lender operates. There are to-day actually 
more lenders than usual. To these ranks have been added 
very large numbers who have saved to serve their country by 
purchasing Victory bonds; many who have loaned for the first 
time to their municipal governments, who, resentful of condi- 
tions demanded by the usual financial market, offered "over 
the counter" on terms less onei'ous their securities to their 
own people; and many who have taken advantage of the at- 
ti-active yields of provincial securities. To this result increase 
in numbers and efficiency of selling prices has contributed very 
substantially. Although cities, provinces and the Dominion 
have borrowed more, paid the price, onerous as it is, and seem 
to be assured of still more if asked for, there does not appear 
to be in immediate prospect any source of supply approxi- 
mately adequate to meet legitimate mortgage demands. 

Funds Attracted to Bonds 

To verify what appeared to be, to those familiar with 
mortgage lending conditions, the facts with regard to this sit- 
uation, direct enquiry was made of some representative lending 
organizations. One general manager was found almost de- 
luged in half-yearly remittances of principal and interest 
which a few moments before, being interviewed, had been placed 
on his desk by the postman. "Wliat are you going to do with 
all the money coming in?" he was asked. "It's all spoken 
for," was the answer. "Any new money coming in from 
either domestic or foreign sources?" was the next question, 
and the answer was, "No; it's lucky for the borrower that we 
can utilize the monies paid on account of principal to meet but 
a very small part of the demands. Another manager who 
supervises mortgage investments exceeding $;^0,000,000 told a 
similar story and added, "There's very little new money for 
mortgage purposes; we can't get it. It's slipping away from 
7 and 8 per cent, mortgages into 7 and 8 per cent, bonds." In 
each instance, it was ascertained, payments of interest and of 
principal were above the average. Also the information was 
voluntarily given that the amount of mortgages outstanding 
was gradually declining. 

An examination of the statements of 55 companies dis- 
closes a steady increase in securities as compared with mort- 
gage investments. This is illustrated by the following com- 
parisons: — 

1916^ — — 1919 



Mortgages Securities 

Credit Fon. -_$40,567,.'il3 $.3,915,304 

Can. Perm 27,988,970 2,161,954 

Huron & Erie 11,341,924 5.388,150 

Trust & Loan 15,106,990 2,390,000 

Ont. L. & D._ 6,336,418 796,437 

Lon. & Can. L 4,443,114 392,586 



Mortgages 

.?35,183,953 

26,211.306 

13,339,194 

14,079,836 

4,759917 

4,381,380 



Securities 
$7,725,546 
5,308,025 
5,227,502 
3,335,000 
2,319,634 
461,332 



Totals _-$105,784,729 $15,044,431 $97,955,586 $24,377,039 
Need Money in Future 

The half-dozen companies whose figures we have taken 
are quite representative of the whole. Within three years 
their security holding increased by 60 per cent, and mortgages 
declined 7 per cent. For this change there must be some 
good cause as each has a very efficient organization designed 
for mortgage lending purposes. Actual funds at the disposal 
of such organizations suffered no actual decline in volume. 
Foreign holders of debentures to an appreciable extent desired 
their money back, but these withdrawals were more than offset 
by increase in deposits and domestic debentures. In this coun- 



Mining in 
Manitoba 

This industry will be the greatest 
in the Province within five years. 

^X'e have representatives in the 
most important districts. 

Write us for information. 

Manitoba Finance 
Corporation Ltd. 

410-11 Electric Railway Chambers 

Mining Department WINNIPEG 



NOTICE 

is hereby given that the Annual General Meeting of the 
Policyholders and Guarantors of the 

North American Life Assurance 
Company 

will be held at the Head Ofiice of the Company, North 
American Life Building, 112-118 King Street West, Toronto, 
Ont., on 

THURSDAY, 27th January, 1921 

at 11 o'clock in the forenoon, 
for the reception of the Annual Report, a Statement of the 
Affairs of the Company, and the transaction of all such 
business as may be done at a general meeting of the Com- 
pany. 

W. B. TAYLOR, 
January 8, 1921. Secretary. 



Condensed Advertisements 

" Positions \^ anted." 3c per word : all other condensed advenisemerts 
5c. pet word. Minimum charge for any condensed advertisement 65c 
per inst^rtion. All condenstd ^dvertisen ents must cor form to usual 
style. Condensed adveriiseo-ents. on account of the very low rates 
charg^d for them, are pay blein advance : 50 per cent extra if charged. 



WANTED. — Position with a Financial Institution by 
young man \vith fourteen years' banking experience. Clean 
record. Box 375, Monetary Times, Toronto. 

WANTED. — Special Agent and Inspector, Provinces 
Manitoba and Saskatchewan. Headquarters, Regina. Repre- 
sent three large American Companies. Good salary. Replies 
will be treated confidentially. Box 371, Moneltiry Times, To- 
ronto. 



THE MONETARY TIMES 



Volume 66 



try, liovv-fvor, there is now, and thtre will be in all probability 
for a generation or two yet to come, an incessant demand for 
capital for the development of homes, farms and urban com- 
munities. 

If this demand isvnot met a form of development essen- 
tial to the nation's welfare is restricted and progress halted. 
Progress in other fields in Canada did not cease during the 
war.- Industry expanded very markedly in response to the 
opportunities for greater reward which they respectively of- 
fered. To the lender on mortgage security there were, how- 
ever, more "knocks" than rewards. He was subjected to dis- 
criminatory restrictions, taxation and moratoria in place of 
encouragement. It can be no surprise therefore that funds 
usually placed at the disposal of mortgage lenders have been 
diverted to other fields, and in consequence the entire country 
is faced with an unprecedented demand for loans from build- 
ers of farms and homes, the need of which is of first im- 
portance. 

Public Money Appropriated 

The Canadian industries expanded, as already noted, dur- 
ing the war as a result of those abroad being turned from ordi- 
nary trade to war purposes. Movement of rural to urban 
centres of population was therefore accelerated. Meanwhile 
the usual agencies which provide capital and those who study 
and supply the demand for housing accommodation were held 
in check by moratoria, special discriminatory taxation by the 
Dominion government, and a press which voices too readily 
and too loudly a spirit of Bolshevism chiefly nursed among the 
shiftless and thriftless. When their own chickens como loine 
to roost they clamor for state help. All forms of government,- 
municipal, provincial and Dominion, were approached and 
pressed to make advances at a low rate of interest to b ild 
houses. The Dominion government appropriated $25,000, ;!00, 
all of which has been absorbed. Municipalities and provinceo 
have helped, and what information has been procurable leads 
to the belief that they have had unfortunate experiences. It 
may be ventured here, in the way of prophecy, that when the 
final history of the housing experiment is written it will be an 
asset worth as much as a deposit in the Farmers' Bank, still 
recorded as an asset in Ontario's public accounts. 

Public money used in this way, at great cost to the tax- 
payer, alleviated pressing needs of the moment, but it estab- 
lished in the minds of a militant minority the idea that the 
provision of a home is not now the business of the individual 
but a duty the state, owes to the individual. Even though a 
thrifty individual builds for the service of others he is threat- 
ened with a "court" to regulate the rent of it. In this way 
the state is flirting in dangerous proximity to the meshes of 
the master spider Bolshevism. The wary investor, crafts- 
man's skill and the organized lending agency will retire from 
the risking of eifort in such a field as the state extends its 
operations therein. 

Will the State Give Way? 

It remains to be seen whether the state and municipality 
jointly are to continue to act as mortgage lendeis, as they did 
under cover of special war conditions, and voluntarily in a lim- 
ited and quite inefl'ective way, in lending to farmers in two 
of the western provinces. Sporadic demands for moratoria, 
bonused lending, and retroactive legislation prejudicing legal- 
ly-made contracts still exist. That they have contributed to 
making necessary higher taxation, higher interest rates and 
their natural corrollary — shortage of funds — is not fully real- 
ized. By this yielding to pressure from a minority of borrow- 
ers a burden has been placed by bonused provincial and muni- 
cipal lending on all mortgagors. Nor is considerable relief 
likely to come until public opinion demands and ensures free- 
. dom and sanctity of contracts and the removal of discrimina- 
tory taxation of mortgage corporation investments. 

Results for Shareholders 

From the figures I have quoted and enquiries made it is 
inferred that the companies generally have held their own dur- 
ing the war period and that one which followed. At the pres- 
ent time they are generally prosperous, but there has not been 
expansion. Shareholders have fared not too well. Dividends 



did not increase as the cost of living ascended. Nor have the 
shareholders' funds earned as much for them as they might 
have done if they had been applied to industry and trade dur- 
ing years when rewards ran so high as to incur liability under 
the excess profits, too. Loan company profits did not get into 
such a class. But satisfaction — a satisfaction worth a ^food 
deal to shareholders — is knowing that despite rough han- 
dling at the hands of legislatures and tax-gatherers they 
could rely upon getting cash dividends regularly. There are 
but few e.xceptions and these are confined to companies oper- 
ating in localities where drastic moratorium legislation was 
taken advantage of. From now on — say for another ten 
years — funds employed in the mortgage field will be in very 
great demand at high rates, and as a result the loan company 
shareholders should profit. 

Interest rates in Canada have been held in check by 
credit control and credit creation by the Dominion govern- 
ment. Force of circumstances is now compelling that author- 
ity to save itself and the country from disaster by relinquish- 
ing control and preparing the way for the return of more nor- 
mal conditions. 

Treatment Must Be Fair 

It can be safely assumed that there will be no great vol- 
ume of new money available for mortgage purposes until the 
investing public is convinced that legislators will not unneces- 
sarily impair mortgage contracts, and that, at the same time, 
they will see to it that the mortgage itself and the security 
covered by it is not insidiously attacked by varying forms of 
special taxation. Treatment of this chai'acter, not applied to 
all other forms of very desirable constructive national effort, 
is in a large measure responsible for the steadily advancing 
rates of interest on mortgages. 

The burden is on the borrower, not the lender, but the 
latter naturally avoids those paths in which unnatural ob- 
structions are placed. Those provinces of Canada which did 
not so obstruct the mortgage lender will find that its borrow- 
ers will have a greater choice of lenders and of terms. This 
fs quite in accord with the natural operation of economic law. 



EXPORTS TO SMALL FOREIGN COUNTRIES 

In the tables entitled "Canada's Commercial Balance 
Sheet," shown in this number, it will be noted that the ex- 
ports to "other foreign countries" during the fiscal year 
ended March 31, 1920, amounted to substantial figures. The 
details of these items were as follows: — 

Imports Into Canada, 1920, Under Heading "Other 
Foreign Countries" 



Countries. Dutiable. 

Czecho-Slovakia $2,238 

Finland 

French East Indies 

$2,238 

Countries. Canadian. 

.^.Ibama $28,600 

Bulgaria 221 

Czecho-Slovakia 387 

Esthonia 44,862 

Finland 26,438 

Germany 610,528 

Palestine 3,884 

Poland 32,384 

Syria 15,575 

Tripoli 752 

$763,631 



Free. 



$ 480 
5,524 



$6,004 
Foi-eign. 



$ 45,743 
45,298 



123,762 



$214,803 



Total. 

$2,238 

480 

5,524 

$8,242 

Total. 

$28,600 

221 

387 

44,862 

72,181 

655,826 

3,884 

156,146 

15,575 

752 

$978,434 



Saskatchewan's sinking funds total $1,324,442, not 
$324,442 as was incorrectly printed on page 129. These 
sinking funds, together with the debt for utilities, etc., m?.ie 
up a total of $22,133,243. 



January 7, 1921 



THE MONETARY TIMES 



WE SPECIALIZE IN 
HIGH GRADE 



GOVERNMENT, PROVINCIAL 
and MUNICIPAL BONDS 

111 iiiiiiiiiiiiiiiiiiuiniuiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiinniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiii iliiiiiiiiiiiiiiiiiiniininiiiiiiiniiiuiiiiiiiiiniiiiiiiiniiiiii- 

Most favorable prices quoted for buying or selling all 
CANADIAN VICTORY BONDS 

imiiiiiiiiiiiiiiiimiiiniiiiiiMimiiiniiiiiiiiimuiiiraiuiiiiuiiiiiiiininiitinmimnwiiiiiuiiiuiiiiiuiiii^^ 

Correspondence invited 

MACNEILL, GRAHAM and CO. 

BANK OF HAMILTON BUILDING, TORONTO 













Canadian 










Government. 










Municipal 
and 










Corporation 
Bonds 










High Grade 
Industrial 










Securities 










Anderson, RoDinson 


&Co. 1 




Investment Bankers 






14 King 


Street East - 


Toronto 


Can. 


1 


TKc 

Depa 
at y 


Services 
rtment a 


■jf ou 
re at 
al. 


Statistical 




All 

w,ll 


■ nqu.ries {or 
Ke most car 
eously atttndcj 


iniormation 
efully and 
to. 




116 



THE MONETARY TIMES 



Volume 66 



The Market Record of Canadian War Loan Issues 

Prices in November Were at Lowest Point— High Water Mark Was Reached in June, 
1919, When All Outstanding Issues Were Above Par— The Influence of Exchange, and the 
Development of Market Control—The Embargo and the Present Unsatisfactory Position 



DURING the five years which have now elapsed since Can- 
adian war bonds first appeared upon the market they 
have experienced all the vagaries to which a security market 
is subjected by war conditions. They have advanced to a pre- 
mium and have sagged to a discount. Their market price 
has been fixed by a bond dealers' committee, and again thsy 
have been thrown upon the open market; just at present both 
methods are in use, some of the issues being traded in on the 
stock exchanges, while others are handled at fixed prices. 
Some of the most critical disputes in Canadian financial cir- 
cles have centered around the war loans. On what terms 
they should be issued, and whether patriotism or an attractive 
rate of interest should be relied upon to ensure the success of 
the flotations, was the first that arose. Once a loan was 
placed, there came the question of trading. When several 
loans had been issued and the amount of war bonds outstand- 
ing grew to what was for this country an enormous amount, 
it was urged that the tax exemption feature should be abol- 
ished. The downward sweep of prices has again revived the 
question as to whether the price of the loans should be fixed 
or left to the hazards of an open market. Now that all the 
issues have been marketed, and it is accepted that the terms 
of sale must be strictly observed, the only surviving dispute 
is that of market price; here, however, the question of ways 
and means developed numerous difficulties, and the methods 
adopted to support the market have been the subject of keen 
criticism. 

Some Mistakes Were Made 

War finance was a new experience for Canada, and there 
is» therefore, some excuse for uncertainty. The methods 
adopted by the United States, Great Britain and other coun- 
tries of experience varied, and the record of the Canadian 
issues compares very well with that of the bonds of these 
countries. 

Now that war financing is completed, and all the issues 
are actively traded in at prices which are stable in view of 
present conditions, a synopsis of the course of prices of the 
war bonds as marketed securities may be appropriate. This 
involves the consideration of prices, conti-ol, and several other 
factors which have exerted influence upon the market. 

It is not necessary for this purpose to review the details 
regarding each flotation in Canada. The essential facts about 
the domestic war loans are given in the accompanying table, 
however, as the issues differ in interest rate, in taxability, 
and in the places where interest is payable, points which must 
all be considered by the prospective buyer. The tax exemp- 
tion, it must be remembered, applies only to federal income 
taxes, and not to the income taxes which are levied by several 
of the Canadian provinces and cities. 

First Loan Set New Record 

When it was seen in 1915 that the war would be an ex- 
pensive undertaking for Canada, it was decided to issue a 
domestic war loan. The amount required at the time, $50,- 
000,000, far exceeded any single issue previously made in this 
country, and to ensure its success everything possible was done 
to make it attractive. The bonds were to mature in ten years, 
carried interest at 5 per cent., and were made exempt from 
federal taxation, although at that time a federal income tax 
was not even under consideration. 

The bonds were dated December 1, 1915, the issue price 
was 97%; a full six months' interest was to be paid on June 
1, however, and as a discount was allowed for advance pay- 
ment in full, the actual 'issue price was about 96%, yielding 
approximately 5V2 per cent. Almost 25,000 subscribers re- 
sponded, with a total of $79,000,000, and additional assistance 
from the banks brought the total up to $100,000,000, all of 
which was allotted. Although provision was made for pay- 



ment by installments, about $75,000,000 of the bonds were 
paid for in advance. These bonds were immediately listed on 
the Montreal and Toronto Stock Exchanges, the first sale 
taking place on December 18th on the Montreal exchange, at 
98, or V2 above the issue price. 

The Second War Loan 

The second issue was made in the fall of 1916, when a, 
fifteen-year maturity was chosen, the bonds being dated 
October 1, 1916. Otherwise the terms, including the price, 
were the same. The cash discount this time made the price 
about 97, yielding 5.30 per cent. The success of the first 
issue induced the government to ask for $100,000,000, and the 
response of $145,000,000 from 34,526 subscribers justified this 
confidence. Only $100,000,000 was allotted, however, and 
this cutting down of allotments, coupled with the fact that the 
previous issue was already selling at a premium compared 
with the issue price, resulted in the advance of both issues to 
around 98^2. These bonds were also listed at once, the sales 
dui-ing the first week in October being mostly at this figure. 

Both these loans had been made at prices which were at- 
tractive in view of market conditions, and there was a keen 
demand for the bonds during the last few weeks of 1916. The 
early weeks of 1917 brought a slump in the market, however, 
resulting from a successful German drive in France and the. 
entry of the United States into the war. At the beginning of 
March both issues were selling at 96%. At the same time 
Great Britain's financial stress became acute, and the Cana- 
dian government was impressed wth the necessity for meet- 
ing more of its financial requirements, such as the pajTnent of 
her troops abroad and credits for the pur'chase of supplies in 
Canada. 

The Third War Loan 

Another war loan was necessary, therefore, and a price of 
96 for twenty-year 5 per cent, bonds, dated March 1, 1917, 
was decided upon. A discount for prepayment in full was 
again allowed, making the price 94.068, yielding 5% per cent. 
Although the United States was now faced with obligations 
of her own, a special efl'ort was made to bring in subscriptions 
from across the border by making the bonds payable in New 
York as well as Canada. The success of this loan eclipsed 
previous results, a total of $183,000,000 being received, of 
which $150,000,000 was issued. 

In spite of this success, however, prices continued to go 
down. The first sales on the exchanges took place about the 
middle of April, at 95, but the market weakened immediately. 
The new bonds touched 93% at midsummer, after which they 
recovered to 95 in August, but were down to 91% at the end 
of the year. The other issues suffered corresponding de- 
clines. By this time the funds had been used up by the gov- 
ernment, and the necessity for raising still larger sums to 
meet the increased scale of expenditure, in the face of adverse 
market conditions, became a problem of paramount import- 
ance. The solution was the launching of the first Victory 
loan. 

New Flan of Raising Money 

Here it may be pointed out that the previous issues had 
been made by the usual underwriting methods. Bond dealers, 
stock bi-okers, banks and other financial institutions competed 
for subscriptions. There had been much duplication in work, 
and especially in the efforts to secure the large subscriptions, 
on which the commissions amounted to a considerable sum. 
For the Victory loan it was decided to pool the efforts by 
forming one huge selling organization. Practically every 
bond dealer, and many stock brokers, insurance agents and 
other financial men took part in the campaign. Dominion, 
provincial and local committees directed the efforts, and the 
banks took in the money. 



January 7, 1921 



THE MONETARY TIMES 



117 




K^rff'y^rff'^yA ^ A^h^^^ 






^Sh 



w^^mmm^nm^w^m^ 



INVfSTKENT-StRVICl 



Underwriting 

Industrial 

Canada 



In addition to offering Government and 
Municipal Bonds, we have for fifteen years 
been associated with Canadian in\'estors in 
the financing o( forty-three great Canadian 
industries, employing a capital of many 
hundreds of millions of dollars. 

Kasic necessity, plus natural resources to 
meet it, is the keystone upon which all our 
corporation financing has been done. This 
explains the confidence of investors in the 
security issues that hear our imprint. 

Send your name to be added to our Mailing 
List. 

Royal Securities Corporation 

I.IMITKI) 

Montreal Toronto Halifax St. John Winnipeg 

Vancouver New York London, Eng. 




% 



Throughout the West 

Insurance 

Investments in Western Canada 

Farm Lands and 

Farm Land Mortgages 

United Grain Growers Securities 
Company is a subsidiary company 
owned and operated by United 
Grain Growers Ltd. It has all the 
advantages given by the complete 
organization of the parent company 



Winnipeg Calgary 



The Organized Farmer in Business 



118 



THE MONETARY TIMES 



Volume 66 



Success of First Victory Loan 

In this way a total of $398,000,000 in subscriptions was 
piled up, compared with the modest sum of $150,000,000 asked. 
In order to meet the desire of all classes of buyers, it was 
decided to issue bonds of three maturities — five, ten and 
twenty years. These bonds were dated December 1, 1917. 
The interest rate was raised to 5% per cent., and although the 
price was fixed at par, a discount was again allowed for pre- 
payment in full, bringing the price down to 98.65 and interest. 
The great need of the government for funds is indicated by the 
fact that $398,000,000, or almost the whole of the subscrip- 
tions, was accepted. The most significant indication of the 
popularity of the loan was, however, the fact that 820,035 sub- 
scribers responded, or twenty times the number subscribing 
for the preceding loan. 

In spite of the fact that the prospectus for the first Vic- 
tory loan stated that the bonds would be listed, this was not 
done until late in 1918. The issue was so large and the mar- 
ket so weak that it was thought the publication of sale prices 
would result in panicky sales. There was talk of support of 
the market, and the government did go so far as to pass an 
order-in-council providing that new issues of bonds and stock 
could be made only with the permission of the finance min- 
ister. 

Victory Loan Prices Fixed 

To provide the machinery for trading in the Victory loan, 
a market committee composed of bond dealers was appointed 
by the government, with authority to fix the prices for trad- 
ing. This committee began operations on January 22, 1918, 
the prices for all issues being 98% and interest to the buyer; 
no fixed buying price was set, but the dealers agreed to buy 
at 97%, one point below the selling price. Meanwhile the 
three preceding loans remained listed on the stock exchanges. 

The year 1918 brought a recovery in bond prices. By 
June 8th the market had improved to such a degree that the 
committee was able to advance the prices to 99% and interest 
to the buyer. A second Victory loan was being discussed at 
this time, and the suggestion that it should not be exempt 
from taxes had an important influence on prices. On August 
12th the selling price was raised to par. 99 and interest being 
fixed as the buying price. On September 7th sales ceased in 
anticipation of the second Victory loan, but small amounts 
continued to be bought at 99. 

Second Victory Loan Established Record 

The second Victory loan was issued in the fall of 1918. 
Twa maturities — five and fifteen years — were chosen, dating 
from November 1, 1918. The interest rate was again 5% per 
cent., but this time accrued interest was charged on instal- 
ment pajnnents, making the price 100 and interest, and the 
yield 5% per cent. The bonds were slightly less attractive 
than those of the first Victory loan, but the success was 
greater. This time the sum of $300,000,000, or well within 
the amount previously secured, was requested, but subscrip- 
tions reached $695,000,000, and $610,000,000 was allotted. The 
number of subscribers was 1,104,287, or one in seven of the 
Canadian population. These results constitute the record in 
Canadian war loan financing, and they were due not only to the 



relatively strong position of the market, the attractiveness of 
the issue, and the improved organization engaged in securing 
the subscriptions, but also to the fact that the armistice was 
signed some days before the campaign closed. 

New Prices Were Higher 

The new bonds were also placed under the control of the 
market committee, the following prices being set when trad- 
ing was resumed on December 2:— 



Maturity 






Buying 


Selling 


1923 _-_. 






. 99 


100 


1933 __-. 






. 99% 


100% 


1922 






. 99 


100 


1927 ___. 






- 99% 


100% 


1937 






. 100 


101 


On December 


17th 


the 


prices of the 


five Victory loan 


issues were advanced to the following figures: — 


Maturity 






Buying 


Selling 


1922 ___. 






. 991/2 


1001/2 


1923 ___. 






. 991/2 


iooy2 


1927 __-. 







99% 


100% 


1933 ___. 







100 


101 


1937 — . 






- 101 


102 



Release of Market Control 

The market for the 1917 Victories had improved to such a 
degree that the committee, after consultation witli the govern- 
ment, was able to relax its control of these maturities on De- 
cember 21, 1918, and they were at once listed on the exchanges. 
The first transactions were at the following prices: — 
1922, 99; 1927, 100 Vi; 1937, 101%. The demand for the 1918 
Victories also proved so good that on January 20 it was de- 
cided to release these as well; trading in these bonds during 
the week ended January 24th was at about par for the 1923's 
and 101% for the 1933's. 

The operations of the special committee now ceased. A 
summary of its work issued at this time showed that during 
its period of operations, which was just two days short of one 
year, a total of $70,336,000 had passed through its hands, di- 
vided as follows: — 

1917 Victory Loan 

1922 maturity 1 $28,472,450 

1927 maturity 5,034,900 

1937 maturity 22,550,650 



$56,058,000 
1918 Victory Loan 

1923 maturity $1,806,000 

1933 maturity 12,472,000 



$14,278,000 
The committee had handled 33,764 separate transactions, 
of which 22,613 were incoming and 11,151 were outgoing. Two 
hundred and forty dealers, including stock exchange houses, 
had entered into the agreement to trade only at the fixed 
prices. The country had been divided into three sections for 
trading purposes, with centres at Montreal, Toronto and Win- 
nipeg, the number of firms connected with each being 104, 97 
and 39 respectively. 



Fixed Victory Loan Prices. (The figure in brackets is the buying price). 



1918 Jan. 22 
" June 8 
" Aug. 12 
" Dec. 2 
" Dec. 17 
" Dec. 21 

1919 Jan. 20 

1920 Jan.' 22 
" Feb. 2:1 
" Mar. 22 
" Mar. 27 
" Apr. 27 
" May :5 
" Aug. 30 
" Nov. 29 



1922. 
98% (97%) 
991/2(98%) 
100 (99) 
100 (99) ■ 
100% (99%) 
Rele&sed 



100% (99%) 
99 (98) 
99% (98%) 

100 (99) 
99% (98%) 
99 (98) 
98 (97) 

Released 



1927. 
98%(97?8) 
99% (98%) 
100 (99) 
100% (99%) 
100% (99%) 
Released 

101% (101%) 
100 (99) 
100 (99) 
100% (99%) 
100 (99) 
99% (98%) 
97 (96) 
Released 



1937. 
98%(97y8) 
99%(98y2) 

100 (99) 

101 (100) 

102 (101) 
Released 

104% (104) 
101 (100) 



1923. 



1933. 



1924. 



102 
103 
102 
101 
98 



(101) 
(102) 
(101) 
(100) 

(97) 



Released 



100 (99) 
101% (99%) 
100% (99%) 
Released 
100% (99%) 
99 (98) 
99% (98%) 
99% (98%) 
99% (98%) 
99 (98) 
98 (97) 
Released 



100% (99%) 
101 (100) 
101 (100) 
Released 
102% (102) 
100 (99) 
1001/2(99%) 
100% (99%) 
1001/2(991/2) 
99% (98%) 
96% (95%) 
Released 



100 (99) 
97% (96%) 
98% (97%) 
98% (97%) 
98% (97%) 
98 (97) 
97 (96) 
Released 



100(99) 
97(96) 
97(96) 
97(96) 
97(96) 
96(95) 
93(92) 
Released 



January 7, 1921 



THE MONETARY TIMES 



119 




Province of Vast Resources 



THE finances of the Province have been restored 
to a sound condition, current expenditure is 
being kept within revenue, and borrowing is 
restricted to absolutely necessary capital expendi- 
tures of a reproductive nature, or in connection with 
assistance to returned men to re-establish them- 
selves in civil life. 



FINANCE 

FISCAL YEAR ENDED 31st MARCH, 1920 

Revenue (current account) $10,931,279.21 

Expenditure (current account).. 9,887,744.62 
Expenditure (capital account) . . . 2,224,541.27 

Total assets exceed total liabilities by $22,181,2.52.63, 

exclusive of natural resources. 

LUMBER 

The forests of the Province vie with its mines 
for first place in the splendid array of its natural 
resources, and furnish about one-fourth of the Pro- 
vince's revenue. In the Queen Charlotte Islands 
alone is a stand of twenty-three billion feet of sitka 
spruce. With the application of modem methods of 
protection and reforestation, these are practically 
inexhaustible, and the demand is an increasing one. 
Forest production in 1919, including paper and pulp, 
was valued at $70,285,000.94, an increase of 30 per 
cent, over the pi-ovious year. 

MINING 

The mineral output for 1919 was valued at $33.- 
296,313, a decrease of about 20 per cent. This de- 
crease in production as compared with the preceding 
year, loses its adverse significance when it is con- 
sidered that the 1919 production is still materially 
greater than that of any year prior to 1916, and 
that the larger productions of the years 1916-17-18 
were due to the stimulus of war and the inflated 
prices attendant thereon. There is considerable 
activity in mining throughout the Province, and a 
great deal of prospecting and development work is 
being done as a result of the passage of the Mineral 
Survey and Development Act. Diamond drilling, 
carried on by the Department of Mines, shows a 
growing tonnage of iron ore, and investigations are 
still in progress. 

FISHERIES 

.■Vs in recent years, British Columbia again led all 
the Provinces of Canada in the value of her fishery 
products, which totalled $27,282,223. Her output 



for the year 1918 exceeded in value that of Nova 
Scotia by $12,139,157, and exceeded that of all the 
other Provinces combined by $9,456,968. This in- 
cludes the products of the whaling industry, which 
has been prosecuted vigorously during the past few 
seasons on the West Coast of Vancouver Island and 
the Queen Charlotte Islands. Last season's catch of 
halibut amounted to eighteen million pounds in 
weight. 

INDUSTRIAL 

To all manufacturers British Columbia offers very 
great opportunities, having illimitable supplies of 
all raw materials. Iron ore exists in large bodies, 
and in most cases close to power and transportation. 
An abundance of water power readily convei-tible 
into electric power is available at numerous points 
throughout the Province. The utilization of the 
immense iron deposits of the Province appears to 
be an early possibility, and the establishment of 
steel mills and steel shipbuilding plants is under 
consideration. Wooden shipbuilding has been in 
progress for the past two years, and the vessels 
already consti-ucted are operating successfully. 
Under the Department of Industries the Govern- 
ment has loaned over One Million Dollars to assist 
and develop the Industries of British Columbia. 

AGRICULTURE 

The year 1919 was the most successful on record 
so far as the agricultural industry in British Colum- 
bia was concerned. 

The total production was $65,384,556, being an in- 
crease of 32 per cent, over the year 1918; this being 
due to some extent to the high prices prevailing. 

The fruit crop was the largest on record, there 
being a notable increase in apples and small fruits — 
4,341 cars of tree fruits being shipped and 327 cars 
of small fruits. Grains and fodder crops did well, 
fall wheat and oats especially showing an increase 
in acreage and yield also. 

Live Stock held its own, poultry and egg produc- 
tion showing an increase of 26% for the year. The 
quantity of meats marketed showed an increase of 
9%; whilst dairy products, especially cheese, were 
well ahead of previous records. 

The steady influx during 1920 of a good type of 
settler from Dominion points and from adjoining 
States to the splendid valleys of Central British 
Columbia will materially augment the production 
from these newly settled districts, and although the 
Statistics for 1920 are not yet available, a record 
is again confidently expected for the Province. 



For any particulars address 



Bureau of Information, 
VICTORIA, B.C. 



or 



Hon. John Hart, 

Minister of Finance, VICTORIA, B.C. 



120 



THE MONETARY TIMES 



Volume 66 



High Prices in 1919 

The bond market was, as is well known, very strong in the 
first six months of 1919. The high-water mark for any Can- 
dian bond was reached in June, when the Victory loan twenty- 
year 5% per cent, bonds sold at 106%. All the issues were 
at a substantial premium. The summer brought the unpeg- 
ging of sterling exchange, however, and a flood of Canadian 
securities held in the United Kingdom, coupled with a general 
decline in security prices on this continent, carried prices down 
several points during the last six months of the year. 

The Third Victory Loan 

In the fall the third Victory loan, which was the last do- 
mestic war loan, was issued. Five and fifteen-year bonds 
were again issued, dated December 1, 1919, with "interest at 
5% per cent., and the price was again 100 and interest; $300,- 
000,000 was asked for and subscriptions totalled $678,000,000, 
which, while not up to the preceding figure, still made the loan 
a distinct success. The fact that these bonds were subject to 
income tax, and that an income tax had been levied by the 
federal government in 1917, and increased in 1918 and 1919, 
was the main handicap encountered. 

Market Control Resumed 

The bonds of the third Victoi-y loan have never been listed. 
Moreover, the first and second Victory loan issues were re- 
moved from the stock exchanges on January 22, 1920. A com- 
mittee similar to the former one has handled all trading since 
that date. In a statement issued by way of explanation the 
chairman of the new committee said: 

"Under an arrangement entered into by the Bond Dealers' 
Association of Canada and the members of the Toronto, Mont- 
real and Winnipeg Stock Exchanges, all maturities of 1917 
and 1918 Victory loans are now placed under the control of the 
market committee, along with the 1919 issue, and trading un- 
der the auspices of the committee will commence this morn- 
ing. This is a resumption of the plan which was so success- 
ful following the 1917 and 1918 Victory loans. The bonds 
now listed on the exchanges will continue to be quoted there, 
and the records of transactions will appear as before." 
The prices fixed for the bonds were as follows: — 
Maturity Buying Selling 

1922 99% 100% 

1927 101% 101% 

1937 104 10472 

1923 99% 100% 

1933 102 102% 

1924 99 100 

1934 99 100 

It will be noticed that the spread in the case of the matur- 
ities of the first two issues was reduced to one point. What 
was actually done was that the middle price was called the 
fixed price, to which a commission of % was added on sales, 
and from which a commission of % was deducted on pur- 
chases; both commissions were appropriated by the committee, 
however, and the V2 per cent, paid to the firm disposing of the 
bonds. 

On February 23 it was found necessary to cut the prices, 
these being fixed as follows: — 1922, 99; 1923, 99; 1924 97V->- 
1927, 100; 1933, 100; 1934, 97; 1937, 101. 

These prices were the net cost to the buyer. Instead of 
adding a commission on sales prices and deducting a commis- 
sion from purchase prices, the latter were fixed at one point 
below the sales prices in each case. This made a margin of 
one per cent, on all issues, instead of one-half of one per cent., 
as formerly. The inferiority of the 1924 and 1934 bonds, be- 
cause of their taxability, is evident from the specially large 
reduction in their price. 

Embargo on Purchases Abroad 

Coincident with this reduction in prices was the imposition 
of a voluntary embargo on the purchase of securities from 
abroad. This was on February 26. It took the form of a 
request to dealers and brokers. A statement issued by the 
Bond Dealers' Association said: 

"The bond dealers and stock exchanges have been in con- 
ference to-day with regard to the proposal of the minister of 
finance concerning the importation of securities into Canada, 



and have reached a decision to grant the minister's request, 
and to co-operate to the fullest extent. The decision has been 
made necessary by reason of the great quantities of Canadian 
securities coming over from Britain, which has been financing 
Canada for the last fifty years. The drop in sterling ex- 
change made it possible to ship these securities to Canada at 
prices that were very attractive, as compared with other Can- 
adian securities, including Victory bonds. 

"The first step taken by the minister of finance was when 
he realized that, if the market committee was to continue to 
distribute bonds in the same satisfactory manner as in the 
past, the prices of those bonds should be brought into line 
with market conditions. This was done by the reduction in 
price of Victory bonds; in fact, many people think that these 
prices, as readjusted, are really lower than they should be. 

"The next step was to request the bond houses and stock 
brokers who have been bringing securities from Great Britain 
not to continue this activity, and the banks were requested to 
co-operate in this direction. The members of the Bond 
Dealers' Association and the Montreal and Toronto Stock Ex- 
changes have all met, and, while it means a serious loss of 
business to the bond houses, and also to the stock brokers, all 
these bodies have agreed to meet the request of the finance 
minister to the fullest possible extent. 

Finance Minister's Statement 

Sir Henry Drayton, the finance minister, said in an inter- 
view at the time:— 

"Owing to the fall in value of the pound sterling on this 
side of the Atlantic a large quantity of Canadian securities 
held overseas have been dumped on the Canadian market. The 
securities sold are, for the most part, not direct government 
obligations, but many of them are guaranteed by the Domin- 
ion and provincial governments. These outstanding obliga- 
tions, whose absorption or liquidation ought to be temporarily 
stopped, represent to a large extent the working capital of the 
country. They include the obligations of our municipalities, 
railways, and industries. After extended conferences with 
bond dealers, stock brokers and bankers, it has been deter- 
mined that the sale of the securities held overseas on the Can- 
adian market must be discouraged and, so far as possible, 
stopped. Effective steps for this purpose in the direction of 
the financial channels through which such transactions take 
place have been taken. This action is not taken through any 
compelling law, but is wholly induced by a common-sense rec- 
ognition of the business requirements of the country. The 
purchaser of these long-date obligations, in addition to taking 
essential capital out of the country, as settlements are made 
on New York, still further depreciates the value of the Cana- 
dian dollar there, and renders still more difficult trade with 
the United States and the discharge of our obligations in that 
market." 

Recent Changes in Prices 

On March 22 the prices were advanced to the following: — 
1922, 991/2; 1923, 99%; 1927, 100; 1933, 100%; 1937, 192; 
1924, 981/2; 1934, 97. 

Another advance iox most of the maturities was made on 
March 27, as follows:— 1922, 100; 1923, 99%; 1927, lOOya; 

1933, 101 V2; 1937, 103; 1024, 99; 1934, 97. 

On April 27 it was found necessary to cut the prices to the 
following:— 1922, 99%; 1923, 99%; 1927, 100; 1933, 100%; 
1937. 102; 1924, 98%; 1934, 97. 

Another reduction was made on May 3, as follows: — 
1922, 99; 1927, 99%; 1937, 101; 1923, 99; 1933, 99%; 1924, 98; 

1934, 96. 

The next change was made at the end of August, to the 
following:— 1922, 98; 1923, 98; 1927, 97; 1933, 96%; 1937, 98; 
1924, 97; 1934, 93. 

All the prices which have been fixed by the committee are 
shown in the accompanying table. 

On November 29 all the Victory Loan issues were re- 
moved from control and listed on the stock exchanges, They 
suffered a loss of several points each, the lowest being 
reached about noon. Thereafter there was a steady re- 
covery, and day-to-day trading up to late in December, while 
showing slight fluctuations in both directions, found prices 
gradually improving. Up to December 23rd no action had 
been taken regarding the embargo. 



January 7, 1921 THE MONETARY TIMES 

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^ 



DEALERS IN 

Government, Municipal 

AND 

Corporation Securities 



Correspondence Invited 



L. M. Green & Co. | 

Members Toronto Stock Exchange M 

Union Bank Bldg. - Toronto 1 

IIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIillllllllllUIIIUIIIIIIIIIH^^^ 



The International Loan 
Company 

GEORGE \^ . ARGUE. M D.. General Manager 



Subscribed Capital 
Authorized Capital 



$2,830,000 
$20,000,000 



The International Loan Company is seeking 
to save and conserve part of the current 
earnings of Manitoba people to meet the 
requirements of Manitoba farmers. In the 
past six years it has enlisted more than 
twelve hundred shareholders. 

All the funds of the Company are invested 
in first mortgages on Manitoba farms, the 
best security in the world with so high a 
return. 

Correspondence is invited from any part 
of Canada 



Head Office 
224 Curry Building, Winnipeg 



I ■ ■ 1 111 1 ■■■■■■■■■ ■ M 



Earnings 

Past and Present 

It sometimes happens 
that large current earn- 
ings give a misleading 
idea as to the value 
of a Company's secur- 
ities. The Investor 
seeking information as 
to how earnings have 
averaged over a per- 
iod of years on the 
stock he is consider- 
mg, will find this, to- 
gether with other 
valuable facts, in our 
Analysis of Canadian 
stocks. 

This invaluable collection 
of data enables the Investor 
to size up accurately the 
comparative position of 
the leading Canadian 
issues. 

A copy will be mailed free 
on application. 



Greenshields & Co. 

Investment Bankers 

14 King Street East, Toronto 
Montreal Ottawa 



X33 



122 



THE MONETARY TIMES 



Volume 66 



Ten- Year Comparison of Bond Prices 

Lowest Point Reached in 1920— Last Two Months Witnessed 
Strengthening, However — May be Less Borrowing in 1921, 
but Some I'rovinces and Cities are Already Heavily Committed 

By C. H. BURGESS 

C. H. Burgess and Co., Bond Dealers, Toronto 



THE year 1920 opened with a promising bond market, until 
there was a very severe drop in sterling exchange. 
Immediately, the English holders of Canadian bonds began 
to sell them in this market, and the lower sterling exchange 
went, the cheaper the bonds were bought. This continued 
until about the end of February, when the matter became so 
serious that the minister of finance, in order to protect the 
prices of Victory bonds and conserve Canadian ba-iik deposits, 
asked the bond dealers to refrain from bringing more of 
these bonds into Canada. He asked the banks to co-oper&te. 
The bond dealers expressed their willingness to do this, pro- 
viding the minister of finance would check the importation of 
luxuries from outside the country, which was having more 
to do with creating len adverse exchange situation for Can- 
ada than the bonds that were being imported. The minister 
promised to do what he could, but, owing to the delicate posi- 
tion of trade between Canada and the United States, he 
could not put an embargo on, but tried to accomplish the 
same thing by putting a heavier duty on luxuries coming in 
from that country. 

The coming in of these sterling securities demoralized 
the market. One could not tell what bonds were worth, as 
the next day they might be undersold by imported securities. 

Provinces Were Heavy Borrowers 

Some large sales were hiade at the beginning of the 
year, the most important of which were $3,000,000 by the 
province of Ontario in January, bearing 5% per cent., and 
maturing at the end of ten yea-rs. These brought about a 
5.70 per cent. rate. This was followed by another loan, in 
which they got their money at about 5.80 per cent. The 
province of British Columbia offered $2,450,000 of bonds, 
bearing- 5 per cent, and maturing at the end of five years, 
the bonds being payable in the United States or Canada The 
province secured its money at around a 5.60 per cent. rate. 

About this time the New York funds began to rise very 
decidedly and the premium increased steadily until it reached 
about 17 per cent. This enabled Canadian municipalities, 
who issued bonds with the coupons payable in United States 
gold, to borrow their money for the time being at attrac- 
tive rates. Of course, it cost them a lot to pay the coupons 
when they became due, but most of them accepted this, ex- 
pecting to be able to redeem the bonds to advantage as they 
became due. Manitoba also issued about the beginning of 
the year $4,000,000 of bonds. Toronto Hai-bor Commission 
issued $2,000,000 of bonds. Greater Winnipeg Water Dis- 
trict issued $1,000,000 and the province of Saskatchewan is- 
sued $3,500,000 6 per cent, five-year bonds. All this time 
bonds were coming in from England in very large amounts, 
and it began to embaiTass people who contemplated tender- 
ing for bonds that were not payable in New York. 

Around March Toronto bonds would sell at about a rate 
to yield 5% per cent. 

Victories Controlled Market 

The selling prices of Victory bonds at this time, which 
really was the controlling feature of the market, outside of 
New York funds, were as follows: — 

Maturity. Price.' 

Dee. 1, 1922 991/2 and interest 

Nov. 1, 1928 99% " " 

Dec. 1, 1927 100 " " 

Nov. 1, 1933 IOOV2 " " 

Dec. 1, 1937 102 " " 



1919 Victory Loan: 

Nov. 1, 1924 98^2 and interest 

Nov. 1, 1934 97 

The prices of bonds had been kept down to these figures 

owing to the large amounts coming on the market: — 
Provincial bonds (Prov. Ontario) 5.60% to 5%% 

Toronto bonds 5% % 

Smaller cities 6% 

Township bonds 6% to 6%% 

County 6% to 5y8% 

Tovm bonds 6% % 

Village bonds eVa^ to 6%% 

Weakness Around Midsummer 

However, the market declined very rapidly and by June 

the prices were about as follows: — 

Victory Bonds: 

Maturity. Price. 

Dec. 1, 1922 99 and interest 

Nov. 1, 1923 99 " " 

Dec. 1, 1927 99% " 

Nov. 1, 1933 99y2 " 

Dec. 1, 1937 101 

1919 Victory Loan: 

Nov. 1, 1924 98 and interest 

Nov. 1, 1934 96 " " 

Provincial bonds (Prov. Ontario) 6% to 6%% 

City bonds 6% % to 6.20% 

Township or town bonds 6%% to 6%% 

County bonds 6.40% to 6%% 

Village bonds 6% to 6%% 

Western Municipals in Bad Repute 

I am not making any reference to the town bonds in the 
provinces of Saskatchewan or Alberta. Owing to a number 
of defaults by some of the municipalities in Saskatchewan and 
Alberta, there is practically no market for these securities 
whatever. It is fortunate that these municipalities have not 
found it necessary to borrow very much money, as they would 
have been faced with the position of finding their credit de- 
stroyed and the market practically closed to them. 

July and August were very dull months, and brokers 
were looking forward to a fine market in the fall, when much 
money seemed in sight on account of the excellent crops 
promised. However, the crop was not sold as readily as ex- 
pected, so that money did not become easy. On November 29th, 
the minister of finance suddenly and unexpectedly aban- 
doned the market committee controlling Victory bonds and 
this had an unsettling eff"ect for a few days. On top of this, 
the province of Ontario brought on an issue of $16,000,000 of 
6 per cent. 15-year bonds, which were sold on a basis to yield 
6% to 6.6 and 7 per cent., the lowest price Ontario bonds 
ever sold at in Canada. This was handled with great rapidity 
and in an unique manner by a syndicate of eighteen Toronto 
bond houses. Inside of three days the whole issue was dis- 
posed of, and was selling at a premium on issue price. 

Stronger Market in December 

Victory bonds recovered immediately they were thrown 
on the open market, and within a week most maturities were 
above the committee's prices. Towards the end of the year 
the prices were as follows: — 



January 7, 1921 THE MONETARY TIMES 



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THE MONETARY TIMES 



Volume 66 



War loan— 1925 ■• 7% 

" 1931 6.30% 

1937 (N.Y. payment) . . 5.50% 

Vict, loan— 1922 6%% 

V 1923 6%% 

" " 1924 7.20% 

" 1933 6% 

" " 1934 6.25% 

" 1937 5.70% 

Prov. of Ontario 6y2% 

Toronto 6y2 % 

Counties and township 6y2% to 6%% 

Small cities and large towns 6%% to 7% 

Villages 7% to 7% % 

Western cities (Calgary, Regina 

and Edmonton) 7yo% to 8% 

The outlook for 1921 seems to be in the direction of 
cheaper money and fewer issues of bonds by the many muni- 
cipalities, but very large issues by the city of Toronto and 
the province of Ontario. I would therefore, expect a notice- 
able advance in the prices of all high-grade securities, barring 
political troubles of a serious character which the growing 
unemployment might bring about. 

The following is a comparison of appro.ximate bond 
prices since 1910: — 

1910 

Provincial Governments, about 3.90 per cent. 

Large cities and counties, 4 per cent., 454 per 
cent, to 4^8 per cent. 

Large towns and townships, 4 1': per cent, to 4% 
per cent. 

Village bonds, 4% per cent, to 4% per cent. 

1911 

Provincial Governments, 4 per cent, to 3.90 per 
cent. 

Large cities and counties, 4V8 per cent., 4 '4 per 
cent, to 4^8 per cent. 

Large towns and townships, 4'/2 per cent., 4% 
per cent, to 4 '4 per cent. 

Village bonds, 4% per cent, to 4% per cent. 
At the end of the year prices for Ontario bonds were 
about as follows: — 

Provincial Governments, 4 per cent, to 3.90 per 
cent. 

Large cities and counties, 4y8 Per cent., 4% per 
cent, to 4|2 per cent. 

Large towns and townships, 4'/2 per cent., 4% 
per cent, to 4% per cent. 

Village bonds, 4% per cent, to 5 per cent. 

1912 
Real estate boom commenced to fail. 

Provincial Governments, 4'/^ per cent, to 4 per 
cent. 

Large cities and counties, 5 per cent, to AYz per 
cent. Counties selling at about 5 per cent. City of 
Toronto 4'. per cent, to 4% per cent. 

Large towns and townships. 5'/4 per cent, to 5 
per cent. 

Village bonds, 5'/2 per cent, to 5'r per cent. 

1913 

Real estate boom collapsed. Hard times. 

Provincial Government debentures sold as low 
as a rate to yield 4.40 per cent. 

Large cities and counties at 5% per cent, to 5 
per cent. (Counties selling at about Sti per cent., 
city of Toronto at about 5!4 per cent, to 5 per cent.) 

Large towns and townships from 6y2 per cent, 
to 6 per cent. 

Village bonds from 6?^ per cent, to 6'/2 per cent. 



1914 

August 1st. — The commencement of the great war. Ger- 
man rush for Paris. 

About March to May, 1914, the prices for debentures 
ranged as follows: — 

Provincial Government debentures, 4% per cent, 
to 4(4 per cent. 

City of Toronto, 434 per cent, to 4% per cent. 

Ontario counties, 4% per cent, to 4% per cent. 

Large Ontario towns and townships, 5 '4 per 
cent, to 5 per cent. 

Ontario village bonds, 5 ',2 per cent, to 5% per 
cent. 

Western city bonds, such as Calgary, Edmonton 
and Regina, 5*8 Per cent, to 5 '4 per cent. 

Smaller western towns sold from 6 per cent, to 
5^4 per cent., and smaller places still from 6'/4 per 
cent, to 6 per cent. 

School districts and western villages from 7'/i 
per cent, to 7 per cent. 

1915 
Great war and deadlock on west front. German advance 
against Russia. 

From March to about May prices reached their highest 
level or lowest yield rate. At this time, Ontario provincial 
bonds were selling to yield about 4.80 per cent. 

City of Toronto, 4.95 per cent. 

Ontario counties, 5 per cent. 

Moderate Ontario cities, 5 '4 per cent, to 5'/8 PC 
cent. 

Large Ontario towns and townships, 5% per 
cent, to 5'y4 per cent. 

Ontario village bonds, 5% per cent, to 5'/2 Per 
cent. 

Western city bonds (Calgary, Edmonton, Re- 
gina, etc.). about 6 per cent. 

Smaller western towns, 6 '4 per cent, to 7 per 
cent. 

School districts and western villages, 7 '4 pcr 
cent, to 7 per cent. 

However, it was not long until these prices were ma- 
terially changed, so tha-t in the fall of the year the prices 
were about as follows: — 

Provincial Government bonds (such as Ontario), 
5'/4 per cent, to 518 per cent. 

City of Toronto, 5?8 per cent. 

Small Ontario cities, 5% per cent. 

Good Ontario towns, 5*^ per cent. 

Western cities (such as Saskatoon, Calgary, Ed- 
monton), 6 '4 per cent. 

School districts, 7 ','2 per cent. 

Villages, 8 per cent. 

1916 

Supply of municipals limited; demand from a new mar- 
ket, the United States, large. After marketing of war loan 
in the fall, prices stiffened. 

Dominion Government bonds yielding 5 '4 per 
cent, to 5 '4 Pcr cent. 

Province of Ontario bonds yielding 4.80 per cent. 

British Columbia and Alberta bonds yielding 
5! 2 per cent, to 5.30 per cent. 

City of Toronto and Montreal bonds yielding 4.90 
per cent, to 4.85 per cent. 

Saskatchewan, Manitoba and medium-sized On- 
tario cities bonds yielding 5.20 per cent, to 5.10 per 
cent. 

Ontario towns and townships bonds yielding 5% 
per cent, to 5 '4 per cent. 

Ontario village bonds yielding 5% per cent, to 
5y2 per cent. 

Western city bonds (Calgary, Edmonton, Re- 
gina, etc.), yielding about 554 per cent. 

Western school districts bonds yielding about 
6 1/2 per cent. 



January 7, 1921 



THE MONETARY TIMES 



125 



Departments : 



BONDS 

MORTGAGES 

RENTALS 

INSURANCE 

CITY REAL ESTATE 

FARM LANDS 



Pemberton & Son 



FINANCIAL AGENTS 



418 Howe Street 



VANCOUVER, B.C. 



Established 18S7 



Mahan - Westman 

Limited 



Real Estate 
Financial, Rental 



ind 



Insurance Agents 

Property Management and Reliable 
Reports Furnished 



Address — 

Mahan -Westman Building 

432 Pender Street W. 
VANCOUVER - B.C. 



Dr. J. W. Mahan. 
PrMidenI 



J. A. Westman. 

ManaKinK Director. 



F. J. JAMES 



G. H. SNEATH 



NAY & JAMES 

Bond Exchange Building 

Regina, Canada 



Municipal Debentures 
Mortgage Investments 

Real Estate 

Insurance 



CORRESPONDENCE INVITED 



126 



THE MONETARY TIMES 



Volume 66 



1917 

United States entered the war in spring of 1917, so that 
Canadian borrowing in that field practically ceased. Sim- 
ilarly no help could be derived I'rom the United Kingdom. 
Canada, had therefore, to be financed at home, and a domestic 
war loan of over $400,000,000 was successfully floated in 
November. 

Dominion, 5!/2 per cent, to 5% per cent. 
Province of Ontario, 5.90 per cent. 
Large cities and counties, G per cent. 
Medium-sized cities and towns in Ontario, 6!^ 
per cent, to 6 ',4 per cent. 

Saskatchewan, Alberta and British Columbia 
provinces, GYi per cent, to 6|4 per cent. 

1918 

Province of Ontario 6's, par to 100 '/j. 

Western Provinces bonds, to yield about 6 '4 per 
cent, to 6.20 per cent. 

Ontario large cities, to yield 6 per cent. 

Ontario large towns and small cities, to yield 
6 14 per cent, to G'/j per cent. Ontario counties, to 
yield 6 per cent. Ontario small towns and townships, 
to yield 6 '2 per cent, to 6!4 per cent. 

Large cities in the west, to yield 6V4 per cent. 

Large towns in the west, to yield 7 per cent. 

School districts in the west, to yield 7 per cent. 



1919 

Province of Ontario, to yield 5.10 per cent. 

Western Provincial bonds, to yield about 5.20 per 
cent. 

Ontario towns and cities, to yield about 5.10 to 
.■>.05 per cent. 

Large Ontario towns and smaller cities, to yield 
.j.2,'') to S'/s per cent. 

Small Ontario towns, to yield about 5% to 5'/2 
per cent. 

Large cities in the west, to yield about 5% to 
5% per cent. 

Large towns in the west, to yield about 6 per 
cent. 

School districts in the west, to yield about 6.25 
to 6Ys per cent. 

1920 

Province of Ontario, to yield 6.40 per cent. 

Toronto, Hamilton and Ottawa, to yield 6'/2 P*"" 
cent. 

Counties and townships, to yield 6'/2 to 6% per 
cent. 

Small cities and large towns, to yield 6% to 7 
per cent. 

Villages, to yield 7 to 714 per cent. 

Western cities (Calgary, Regina' and Edmon- 
ton), to yield 7Vt to 8 per cent. 



Record Number of Large Companies Incorporated 



Riordon Company, Gatineau Company and Laurentide Company Head 
List as Regards Authorized Capital — Mining, Manufacturing, Trading 
and Finance all Represented in List of Ten Million Dollar Corporations 



l^yf ILLION-DOLLAR corporations are yearly becoming more 
■^'■■- numerous in Canada. In fact it is ten-million-dollar 
companies which are now taking the lead in large-scale 
operations. The following list of companies incorporated in 
1920 (up to December 1) with authorized capital of $10,000,- 
000 or over, illustrates how varied are the fields in Which 
these huge companies operate: — 

Canadian Fish Products, Ltd., Halifax, $15,000,000; Inter- 
national Petroleum Co., Ltd., Sarnia, $20,000,000; British Co- 
lumbia Sugar Refining Co., Ltd., Vancouver, $10,000,000; Brit- 
ish Foundation Ovens, Ltd., Montreal, $10,500,000; Consoli- 
dated Asbestos, Ltd., Montreal, $10,000,000; Laurentide Co., 
Ltd., Montreal, $35,000,000; Partners Securities Corp., Ltd., 
$10,000,000; Beige Paper Co., Ltd.. $15,000,000; Dominion En- 
gineering Works, Ltd., Montreal, $10,000,000; Gatineau Co. Ltd., 
Montreal, $45,000,000; Belgo Paper Co., Ltd., Montreal, $20,- 
000,000; Riordon Co., Ltd., Montreal, $80,000,000; Mount Royal 
Hotel Co., Ltd., Montreal, $10,000,000; Northem Mexico Power 
and Development Co., Ltd., Toronto, $13,000,000; Famous Play- 
ers Canadian Corp., Ltd., Toronto, $15,000,000; Provincial 
Paper Mills, Ltd., Toronto, $10,000,000; Anglo-American Mo- 
tors, Ltd., Toronto, $10,000,000; Brazilian Development Corp., 
Ltd., Toronto, $50,000,000; Fort William Paper Co., Ltd., Tor- 
onto, $15,000,000; Canadian Associated Goldfields, Ltd., Tor- 
$30,000,000. 

The ten-million-dollar list in 1919 was much smaller, being 
as follows: — 

The Lake Huron Steel Corp., Ltd., Goderich, $15,000,000; 
Goodyear Tire and Rubber Co. of Canada, Ltd., New Toronto, 
$30,000,000; Kipawa Co., Ltd., Montreal, $20,000,000; United 
States Rubber Co. of Canada, Ltd., Montreal, $20,000,000; Sir 
Mortimer Davis, Inc., Montreal, $10,000,000; British foundation 
Ovens, Ltd., Montreal, $15,000,000; Havana Marine Terminals, 
Ltd., Montreal, $30,000,000; Simmons, Ltd., Montreal, $10,000,- 
000; Allied Packers of Canada, Ltd., Toronto, $10,000,000; 
International Bushings, Ltd., Toronto, $25,000,000; Canadian- 
American Resources, Ltd., Toronto, $50,000,000. 



A record number of companies with capital of $1,000,000 
and over was organized in 1920. The list (up to December 
1st) is as follows: — 

Alberta 

Calgary. Alta.— Davis Dabro Farm and Ranch Co.. Ltd., $1,500,000; Mc- 
Laws Co., Ltd., $1,250,000; Bldon Mines, Ltd., $1,000,000; Mud Butte Oil Fields, 
Ltd., $1,000,000; Coast Timber and Trading Co., Ltd., $1,000,000. 

Edmonton, Alta.— Gillespie Grain Co., Ltd., $1,500,000; San Francisco and 
McMurray Oil Refining Co., Ltd., $3,000,000. 

Peace River, Alta.— Peace River Western Oil Co., Ltd., $3,000,000. 

British Columbia 

Cranbrook, B. C— Spruce Mills, Ltd., $1,000,000. 

Grand Forks, B. C— Union Mining and Milling Co., Ltd., $1,000,000. 

Grant, B. C— Manoose-Weilington Collieries, Ltd., $3,000,000. 

Nelson, B. C— Texas Yanliee Girl Mines, Ltd., $2,000,000. 

New Westminster, B. C— Bucklin Development Co., Ltd., $2,500,000. 

Prince Rupert, B. C— Alice Arm-La Rose Mining Co., Ltd,, $1,000,000. 

Sapperton, B. C— Brunette Sawmills, Ltd., $2,000,000. 

Victoria, B. C— British Columbia and Albert Power Co., Ltd., $1,000,000 ; 
Victoria-Phoenix Brewing Co. (1920), Ltd.. $1,000,000, 

Vancouver, 8. C— Vancouver Milling & Grain Co., Ltd., $1,000,000; Won- 
derphone. Ltd., $1,000,000; Silver Tip Mining & Development Co., Ltd., $1,- 
000,000; National Silver Mines, Ltd.. $1,500,000; Mahood Mines, Ltd., $1,000,- 
000; J. Coughlan & Sons, Ltd.. $3,000,000; McLennan Sliver Mines, Ltd., 
$1,500,000; North West Silver Mining and Development Co., Ltd., $1,000,000; 
Marshall- Wells, B.C., Ltd., $1,000,000; James Logging Co., Ltd., $2,000,000; 
Williams Logging Co., Ltd., $1,000,000; Lucky Strike Silver Mines, Ltd., $1,- 
000,000; British Columbia Sugar Refining Co., Ltd., $10,000,000; Marsh Mines 
Development Co., Ltd., $1,500,000; Dally Coal and Oil Syndicate, Ltd., $1,- 
100.000; B. W. G. Navigation Co., Ltd., $1,000,000; Liberator Mining Co., Ltd.. 
$1,000,000; Mexlcanda Petroleum,, Ltd.. $1,000,000; British Columbia Marine 
Engineers and Shipbuilders, Ltd., $1,000,000; Canadian Flashlight, Ltd., $2,- 
000,000; Pacific-Atlantic Construction Co., Ltd., $5,000,000. 

Manitoba 

The Pas, Man.— The Pas Oil, Development and Exploration Co., Ltd., 
$2,000,000; Lake Athapapuskow Minerals, Ltd., $1,000,000. 

Winnipeg, Man.— Commonwealth Gold Mines, Ltd., $2,000,000; Victory 
Gold mines, Ltd.. $3,000,000; The Pas Lumber Co., Ltd., $1,000,000; Bingo 
Mines, Ltd., $2,000,000; Canadian Mortgage Association, Ltd., $5,000,000; Gra- 
phite & Gold Mines, Ltd., $1,000,000; Bonanza Mining Corporation, Ltd., 
$2,500,000; Motherlode Mines, Ltd., $3,000,000; Stinson Auto Signal. Ltd., 
$1,000,000; Canadian and General Securities, Ltd., $1,000,000; Wolverine Gold 
Mines. Ltd., $3,000,000; Eternal Battery Co. of Canada, Ltd., $1,000,000; 
Lake Winnipeg Pulp, Paper & Lumber Co., Ltd., $2,500,000; Deep Rock Gold 
Mines, Ltd., $2,500,000; Ang\is McDonald Mines, Ltd., $3,000,000; Copper 
Lode Exploration Co., Ltd., $2,000,000; Canada Fibre Products, Ltd.. $1,000,- 
000; Winnipeg Motor Cars, $1,000,000; Parker Motor Car Co., Ltd.. $3,000,000; 
Tribune Newspaper Co., Ltd.. $1,000,000; Traders' Finance Corp., Ltd.. 
$3.000,000 ; Community Loan and Investment Co. of Canada. $4,500,000 ; Mam- 



January 7, 1921 



THE MONETARY TIMES 



127 




INVESTMENTS 

I 'HE present condition of the financial market 
•'• affords the investor greater opportunities for 

the safe and profitable investment of funds than 

for several years past. 

Many excellent issues are at present selling below^ 
their intrinsic value. 

Our purpose is to co-operate with our clients in 
taking advantage of these exceptional conditions. 

CANADA INDUSTRIAL BOND CORPORATION, LIMITED 



Citizen Building, 
OTTAWA 



Lewis Building, 
MONTREAL 



THE CITY OF WINNIPEG 

OFFERS 

$1,500,000.00 



30-Year 6 Per Cent. 



HYDRO BONDS 



at $96.63 

Maturing June 1st, 1950, 
Yielding 6', Per Cent. 



Iiitfiest Paxablf June Ist and Deceniher 1st 

In Denominations of $100, $500, $1000 

For full particulars apply to 

C Uij tight aTbuiQT 



WINNIPEG 



MANITOBA 



THE MONETARY TIMES 



Volume 66 



molU iMiumg Corp.. Ltd., iJ,iJOU,UUO; A. MacUuuiiia & Co., Ltd., $1,000,000, 
Canadian i'catuie and Troductlon Co., Ltd., $1,000,000; Peudennls Gold Min- 
ing and Reduction Co.. Ltd., $1,000,000. 

New Brunswick 

St. John. N. B.— Nocton Investment Co.. Ltd., $5,000,000; Uot«l Cham- 



Co., Ltd., $2,000,000. 



Nova Scotia 



Annapolis Royal, N. S.— Inicnuitiunal (;ji)sum Coiii.. Ltd., $1,150,000. 
Bear River, N. S.— Clark Bros. I'aper Mills, Ltd., $5,000,000. 
Halifax, N. S.— Ciinadlan Fish Products, Ltd.. $15,000,000. 

Ontario 

Alliston, Ont.— AUistou Gold Mines, Ltd., $1,000,000. 

Aylmer, Ont.— Trans-Canadian Oil Co., Ltd., $5,000,000. 

Brantford, Ont.— Ulue Bird Corporation, Ltd., $1,000,000; Ham Bros. Co., 
Ltd., $1,000,000; Ontario Cement Co., Ltd., $1,000,000; Brantt'ord Computing 
Scales, Ltd., $1,000,000. 

Cobalt, Ont.— Lightning River Gold Mines, Ltd., $3,000,000. 

Fort Frances. Ont.— J. A. Mathieu. Ltd.. $1,000,000. 

Goderich. Ont— Alk.vris Mines, Ltd., $1,000,000. 

Gowganda. Ont.— .Miller Lake Silver Star Mines, Ltd., $2,000,000. 

Guelph, Ont— Commerce Motor Trucks, Ltd., $1,500,000. 

Hailcybury. Ont.— Northland Gold Mines, Ltd., $2,000,000; Bousquet Gold 
Mliii-.s. l.lil.. .52,000,000. 

Hamilton, Ont.— Beaver Motor Truck Corp., Ltd., $1,000,000; Wm. South- 
am .V .Suns. Ltd., $5,000,000; Firestone Park Housing Co., Ltd., $1,000,000; 
John 1". WJiclau, Ltd., $2,000,000; Stanley Mills Co., Ltd., $1,50,000; Universal 
rroducts. Ltd., $3,000,000. 

Ingersoll, Ont.— IngersoU Machine & Tool Co., Ltd., $1,000,000. 

Kapuskasing, Ont.— Spruce Falls Co., Ltd.. $7,000,000. 

Kingston, Ont.— Canada River Steamship Co., Ltd., $1,700,000; Kingston 
Smelting and Reflning Co., Ltd., $1,000,000. 

Kirkland Lake. Ont.— Lebel Crystal Lake Gold Mines, Ltd., $3,000,000. 

London, Ont.— McCormick Manufacturing Co., Ltd., $2,000,000; Metro- 
politan Store. Ltd. $1,000,000; Ruggles Motor Truck Co., Ltd., $3,000,000. 

Midland. Ont.— Copeland Flour Mills, Ltd., $2,000,000. 

New Liskeard. Ont.— Pan-Oceanic Power development Co., Ltd., $1,000,000. 

Niagara Falls. Ont.— Alpine Silver Mines, Ltd., $2,000,000. 

Ottawa. Ont.— Continental Paper Products, Ltd.. $1,000,000; W. H. Dwyer, 
Ltd.. $! .000,000; International Prospecting and Developing Co., $1,000,000; 
Ottawa Nukol Co., Ltd., $1,000,000. 

Perth. Ont.— Henry K. Warapole & Co., Ltd.. $2,000,000; Perth Shoe 
Co., Ltd., 51,000,000; .Uidrew Jergens Co., Ltd., $1,000,000. 

Peterboro, Ont.— I'eterboro Cereal Co., Ltd., $1,000,000. 

Port Arthur. Ont.— Nipigon Fibre & Paper Mills, Ltd., $1,000,000. 

St. Catharines. Ont.— Victory Silver .Mines, Ltd., $2,000,000; J. H. Wil- 
liams A: Co., Ltd., $2,000,000. , 

St. Thomas. Ont.— "Nobility Chocolates" Co., Ltd., $1,000,000; Appleford 
Milk Products. Ltd., $1,000,000. 

Sarnia. Ont.— Regent Mines, Ltd., $1,000,000; International Petroleum 
Co., Ltd., $20.0011,000. 

Sault Ste. Marie. Ont.— International Screencraft Co., Ltd., $1,500,000. 

Toronto, Ont.— Interlake Tissue Mills Co., Ltd., $1,000,000; SaUda Tea 
Co. of Canada', Ltd., $2,000,000; March Gold, Ltd.. $1,500,000; Silver Bullion 
Mines. Ltd., $1,500,000 ; Bidwell Oil & Gas, Ltd., $1,000,000 ; Rosedale Securi- 
ties, Ltd., $2,500,000; Lack Munroe Mining Co., Ltd., $2,000,000; Southdrive 
Sectu-ities, Ltd., $1,000,000; Wood-Kirkland Gold Mines, Ltd., $2,000,000; 
Schofleld Tractor Corporation, Ltd., $1,000,000; Hargrave Consolidated Mines, 
Ltd., $2,500,000; Swedish-Canadian Mines, Ltd., $3,000,000; Hughes-McElroy 
Gold Mines. Ltd.. $2,500,000; Western Pulp & Paper Co., Ltd., $1,000,000; 
Thesaiu-us Gold Mines, Ltd., $1,000,000; Dutferin Oil Co., Ltd., $1,000,000; 
Northern Mexico Power and Development Co., Ltd., $13,000,000; Dominion 
Shipbuilding and Repair Co., Ltd.. $3,000,000; Canadian Paramount Corpora- 
tion, Ltd., $5,000,000; Frame Porcupine Mines, Ltd., $1,500,000; Wasapika 
Consolidated Mines, Ltd., $6,000,000; Northern Customs Mines, Ltd., $1,000,000; 
Trent Paper Co., Ltd.. $1,000,000; Bancroft Timber Co., Ltd., $1,000,000; Fam- 
ous Players Canadian Corporations, Ltd., $15,000,000 ; North Anierican Securi- 
ties, Ltd., $3,000,000; Tropical Products. Ltd., $1,000,000; Davies Footwear 
Co., Ltd., $1,000,000; Renew Tire Corporation of Canada, Ltd., $1,000,000; 
Tiger Tire & Rubber Co., Ltd., $2,000,000; Moffats, Ltd., $1,000,000; Gibson 
Gold Mines, Ltd., $1,000,000; Silverado Extension, Ltd., $1,500,000; Bailey Sil- 
ver Mines, Ltd.. $1,250,000: Biemark Oil Co., Ltd., $1,000,000; Union siining 
Corporation, Ltd.. $1,000,000; Loevv's Windsor Theatres, Ltd., $1,300,000; Pin- 
elle Kirkland Mines. Ltd.. $4,000,000; Silbar Cobalt Mines. Ltd., $1,500,000; 
King Kirkland Gold Mines, Ltd., $2,500,000; Adfllm Co., Ltd., $2,000,000; Na- 
tional Pavements of Canada. Ltd., $5,000.000 ; Chemical Products. Ltd., 
$5,000,000; Algomont Mines, Ltd., $4,000,000; Ontario National Pavements, 
Ltd., $1,000,000; Northcrown Porcupine Mines, Ltd., $3,000,000; Provincial 
Paper Mills. $10,000,000; Ductite Steel Co.. Ltd., $1,500,000; Sugars of Can- 
ada. Ltd., $2,000,000: Ryan Antiglare Light Co., Ltd., $1,000,000; Lebel 
Ore Mines. Ltd.. $1,500,000: Teldarb Manufacturing Co., Ltd., $1,000,000; 
Ovrob Steel Products. Ltd., $1,000,000 ; Ontario and Peace River Oil and Gas 
PrnduciiiK Co.. Ltd.. 52.500.000; Automobile Club of Canada, Ltd.. $1,200,000; 
Harvey-Kirklarid Cold Mines, Ltd., $1,500,000; Dominion Chocolate Co., Ltd., 
$2,000,000; Canadian Radio Corporation, Ltd., $5,000,000; Petrol Oil and Gas 
Co., Ltd., $1,000,000; Tropical Food and Chemical Co., Ltd., $1,000,000; Auto- 
strop Safety Razor Co., Ltd., .$1,500,000; Kaminlstiqua Pulp & Paper Co.. 
Ltd.. $1,000,000; Hamilton B. Wills and Co., Ltd.. $1,000,000; Manufacturers' 
Holding and Investment Corp., Ltd., $2,000,000; Canada Gas and Fuel Co., 
Ltd., $3,000,000; Mauson Motors. Ltd.. $1,500,000: Canadian Paper Board Co., 
Ltd., $5,000,000: Willards Chocolates, Ltd., $3,250,000; Iroquois-Kirkland Mines 
Corp., Ltd.. $2,000,000: Midwest Development Co.. Ltd., $3,500,000; United 
Trading Corp., Ltd., $1,000,000; Page-Hersey Tubes, Ltd., $4,300,000; Anglo- 
American Motors, Ltd.. $10,000,000: Superheater Co., Ltd., $1,000,000; Bra- 
zilian Development Corp., Ltd., $50,000,000; Progressive Gold Mines. Ltd., 
$2,000,000; Brant-Keora Mining Co.. Ltd., $2,000,000; Oak Tire and Rubber 
Co., Ltd., $3,000,000: Canadian Edison Appliance Co., Ltd., $1,000,000; Exide 
Batteries of Canada, Ltd.. $1,050,000; American de Levaud Manufacturing 
Co.. Ltd.. $7,500,000; Mohawk Trading Corp., Ltd., $1,000,000; Canadian Farm 
Power and Machinery Co., Ltd., $1,000,000; Fort William Paper Co.. Ltd.. 
$15,000,000; Universal Gas and Oil. Ltd.. $1,500,000: Canadian Associated 
Gnldflelds, Ltd., $30,000,000; Canadian Timber Co.. Ltd.. $1,000,000; Fulton 
Motors. Ltd.. $2,000,000; Don Valley Brick Works. Ltd.. $1,000,000; Dvrob 
Steel (Consolidated). Ltd.. $1,000,000; Canadian Libhey-Owens Sheet Glass 
Co., $1,680,000; Mortgage Discount and Finance, Ltd.. $2,000,000: Manitoulin 
Oil Co., Ltd., $1,000,000; Kilgour Bros., Ltd., $2,500,000; British-American 
Finance Corp.. Ltd., $1.500,000 : InterlocMng Cord Tire and Belt Co., Ltd., 
$1,500.000 ; Burkells, Ltd., $1,000,000. 

Welland. Ont.— Wallace Securities. Ltd.. $1,000,000. 

Windsor, Ont.— Victory Motors, Ltd., $1,000,000; Burroughs Machines. 
Ltd.. Sl.000.000; Border Cities Hotel Co.. Ltd.. $l,,50O.00O. 



Quebec 

Breakeyville, Que.— John Breakey, Ltd., $8,000,000. 

Drummondville. Que.^Ienckes Canadian Co., Ltd., $3,000,000. 

Granby, Que.— United Maple Products, Ltd., $1,000,000. 

Montreal, Que.— British Foundation Ovens, Ltd., $10,500,000; Consoli- 
dated Asbestos, Ltd.. $10,000,000; Eiiuitable Finance Corporation, Ltd., $2,- 
000,000; Laurentide Co.. Ltd.. $35,000,000; Tractor and Implement Co., Ltd., 
$1,000,000; Canadian Carbonate, Ltd., $1,000,000; Canadian Fur Auction Sales 
Co., Ltd., $5,000,000; A. & E. Pierce & Co., Ltd., $1,000,000; Canadian Man- 
hasset Cotton Co., Ltd., $3,000,000; Globe Shipping Corporation, Ltd., $1,000,- 
000; Canadian Electric Steel, Ltd., $5,000,000; Rubber Co. of Canada, Ltd., 
$2,000,000; L. G. Bcaublen & Co., Ltd., $1,000,000; North American Magne- 
site Producers, Ltd., $1,000,000; Canadian Mead-Morrison Co., Ltd., $1,060,000; 
Forster Motor Car & Manufacturing Co., Ltd., $1,000,000; Patenaude-Carig- 
nan & Co., Ltd., $2,500,000; J. S. Fry & Sons (Canada), Ltd., $1,000,000; 
Anson Securities Corporation, Ltd., $5,000,000; Canadian American Copper 
ReSning Co., Ltd., $5,000,000; Lord Strathcona Steamship Co., Ltd., $1,500,000; 
Partners Securities Corp., Ltd., $10,000,000; Tabah Cousins, Ltd., $1,000,000; 
J. C. Wilson, Ltd., $2,500,000; Canadian Manhasset Cotton Co., Ltd., $3,000,000; 
Windsor Phonograph and Record Co., Ltd., $1,000,000; Hartt & Adair Coal 
Co., Ltd., $2,000,000; Canadian Films, Ltd., $2,000,000; J. C. Asch Holdings, 
Ltd., $2,500,000; His Master's Voice, Ltd., $1,500,000; Canadian Pulpwood 
Corporation, Ltd., $1,000,000; Hillcrest Apartments Incorporated, $1,000,000; 
Patricia Photoplays, Ltd., $1,500,000; Walter M. Lowney Co. of Canada, Ltd., 
$2,000,000; Wolf River Pulp and Paper Co., Ltd., $1,000,000; Black Star Line 
of Canada, Ltd., $1,000,000; Wilson, Paterson & Giftord, Ltd., $1,000,000; 
Canadian Pulp & Paper Investments, Ltd., $1,000,000; Hall Research Corp., 
Ltd., $4,000,000; Beige P.aper Co., Ltd., $15,000,000; General Cigar Co., Ltd., 
$5,000,000; Consolidated Sand and Supply Co., Ltd., $1,000,000; William L 
Bishop, Ltd., $1,000,000; Dominion Engineering Works, Ltd., $10,000,000; 
Bridge River Timber and Manufacturing Co., Ltd., $1,200,000; F. H. Hop- 
kins & Co.. Ltd., $1,000,000; Dent, Allcroft & Co., Ltd., $1,500,000; Sea-Sled 
Co., Ltd., $1,160,000 ; Jas. Smart Manufacturing Co., Ltd., $2,000,000 ; Ames 
Holden Rubber Boot Co., Ltd., $3,000,000; Coristine Realties, Ltd., $2,000,000; 
Dominion Cottons, Ltd., $5,000,000; Lovell & Christmas, Ltd., $1,000,000; 
Holt, Ltd., $5,000,000; Quebec Petroleum and Natural Gas Co., Ltd., $5,000,000; 
Traders Sugar Co., Ltd., $1,000,000; Copper Products, Ltd., $3,000,000; 
Finance and Industries, Ltd., $1,000,000; Canadian Street Car Advertising 
Co., Ltd., $1,400,000; Gatineau Co., Ltd., $45,000,000; Grolier Society, Ltd., 
$1,000,000; Belgo Paper Co., Ltd., $20,000,000; D. G. Loomis & Sons, Ltd., 
$1,300,000; Dunn's Auto Markers, Ltd., $1,000,000; Rose Castle Steamship 
Co., Ltd., $1,500,000; Birks Buildings, Ltd., $2,000,000; Riordon Co., Ltd., 
$80,000,000; Joliette Castings and Forgings. Ltd., $1,000,000; Mount Royal 
Hotel Co.. Ltd., $8,000,000 ; Canadian Tube and Steel Products, Ltd.. $5,000.- 
000; Equitable Finance Corp., Ltd., $1,100,000; Consolidated Distilleries, Ltd., 
$5,000,000; Metropolitan Investment Co., Ltd., $1,000,000; Darling Bros., Ltd., 
$1,250,000: B. Gardner & Co., Ltd., $1,000,000; Mount Roval Hotel Co., Ltd., 
$10,000,000; Airtight Valve Co., Ltd., $3,000,000; Lake St. John Pulp and 
Paper Co., Ltd., $4,000,000; North Country Exploration and Mining Co., Ltd., 
$1,000,000; Three Rivers Pulp and Paper Co., Ltd., $4,400,000; St. Denis 
Building, Ltd., $1,000,000; Wlser's Distillery, Ltd.. $3,000,000; Magulre, 
Patterson and Palmer (Canada), Ltd., $5,000,000; Canadian Electrical Corp., 
Ltd., $1,000,000; Kraft MacLaren Cheese Co.. Ltd., $1,000,000; Ormes Steam- 
ship Co., Ltd.. $1,000,000 ; Jas. Carruthers and Co., Ltd., $1,000,000. 

Quebec. Que.— Great Eastern Pulp & Paper Co., Ltd., $8,000,000; Clarke 
Trading Co.. Ltd.. $1,000,000. 

Richmond. Que.— Richmond Wire & Iron Co., Ltd., $1,000,000. 

Rigaud, Que.— Northern Explosives, Ltd., $1,500,000. 

Saskatchewan 

Indian Head, Sask.— Glenn Farms, Ltd., $1,000,000. 
Regina. Sask.— Sterling Securities Corp., Ltd., $1,000,000. 



PROTECTION OF SAFETY DEPOSIT VAULTS 

Trust companies and other firms renting safe deposit 
boxes have taken extra precautions during the past few 
months to meet the epidemic of hold-ups and robberies. At 
least one repository where citizens lieep their Victory bonds, 
stock certificates, wills and other valuable and private papers, 
and which a boxholder visited the other day for the first 
time in weeks, had doubled its precautions. The newcomer 
thought the place was closed. The big door of steel bars 
was shut, and before it stood a man on guard. The visitor 
was admitted and the door carefully closed behind him. In 
the vault chamber itself he did not as formerly open his own 
box, but an attendant did this for him, putting the steel 
drawer back again in it; plac?. Ii thi . par icu'.ar safety 
vault such additional precautions have been in vogue for two 
weeks. 



NEWFOUNDLAND COAL AREAS 

Active steps to develop one of the bituminous coal areas, 
which for more than sixty years have been known to exist 
in the island, are being taken by the Newfoundland govern- 
ment. Preliminary work has been started on the deposit on 
the south branch of the Codroy River, on the west coast of 
the island, as a result of data provided by an oflicial of 
the Canadian Geological Survey, who recently examined the 
property. 

All the bituminous coal now used in Newfoundland comes 
from Cape Breton. This is used for the operation of rail- 
roads, factories, mills and steamers. A moderate amount of 
anthracite is imported from the United States for use in 
homes and public buildings. 



January 7, 1921 



THE MONETARY TIMES 



129 



BllllllllllllllilllllllillllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllH 




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SASKATCHEWAN 

Rich in Natural Resources ; Pre-eminent in Agricultural Production ; Pro- 
gressive in Methods of Farming and Marketing the Products of the Farm ; 
and Progressive in Legislation. Saskatchewan needs more Men and more 
Capital to develop the vast Potential Wealth of this Great, New Province 



Agricultural Production Natural Resources 



rops hav 



nU-tl 



for th 



wheat crop 

Saskatchewan 
over half the wheat crop 
Canada and leads in quality as 
well as quantity. Saskatchewan 
farmers winning the world's 
prize for wheat eiprht times in 
the past nine years. 

Saskatchewan holds third 
place in the Dominion in the 
number of its live stock, and 
holds first place for horses and 
in the number of pre-bred 
stallions enrolled, these includ- 
ing the leading heaN-y draft 
breeds. Great progress has 
been made in raising the stand- 
ard of all breeds of live stock 
and the breeding of pure-bred 
horses, cattle, sheep and swine 
has been greatly assisted and 
encouraged by the Provincial 
Department of Agriculture and 
the various Live Stock Associa- 

The dairying industry is 
making splendid progress. A 
decade ago, Saskatchewan was 
importing butter by the carload. 
In 1919 and 1920 the province 
exported over two hundred car- 
loads of government-inspected 
creamery butter which com- 
mands a high price on both 
eastern and western markets. 

There are between 94.000.000 
and 100,000.000 acres of arable 
land in the province, less than 
one-third of which have yet 
been brought under cultivation. 



lHlti-1920 inclusive. Saskatchewan's cereal 
to 1,619,041.000 bushels. Saskatchewan's 
period amounted to 750,000,000 bushels, 
produces 

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Isaskatchewan has billions of 
the province covering an a 
all the known coal deposits 



I AREA I 

i 251,700 square miles. i 

1 POPULATION I 

1911 census 492.432 j 

I9I6 census 647.835 | 

2 Provincial estimate 1920 833,267 | 

^ PUBLIC DEBT. | 

i Gross Debt $ 41,549,480.87 | 

I Less debt created for utilities. i 

^ etc., which carry public debt 1 

I charges $20,808,801.52 | 

t Sinking funds created for the re- 1 

§ demption of debt incurred for § 

I other than utilities 324,442.30 | 

I I 22,133^43.82 | 

I Net Debt $ 19.416.237.05 | 

I PROVINXIAL ASSETS. | 

I Lands and buildings, public improvements, utili- i 

i ties and investments, cash in bank and 1 

j sinking funds $ 75.504,032.78 | 

I TOTAL ASSESSABLE VALUE. | 

g Estimated assessable value of all property I 

i within the province $1,500,000,000.00 j 

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tons of coal, the coal formations 
rea of over 4,000 square miles, 
are of the lignite variety, which 
slacks when exposed to the air 
for any length of time, a Lignite 
Utilization Plant has been con- 
structed by the Saskatchewan 
and Manitoba governments and 
the Dominion government to 
demonstrate a method of car- 
bonizing and briquetting lignite 
coal. If the process cqn be put 
into general commercial prac- 
tice, Saskatchewan's vast fields 
of lignite will become a tre- 
mendously valuable asset. 

The clay resources of the 
province are so extensive and 
varied that it is impossible to 
give definite information until a 
complete analysis of the various 
deposits has been made. Three 
deposits of "ball" clays suitable 
for manufacturing chinaware. 
and five deposits of white burn- 
ing clays have already been 
discovered. The province excels 
in the quality and quantity of 
its fireclays, and has other de- 
posits from which can be manu- 
factured practically the whole 
range of structural clay pro- 
ducts. 

Enough sodium sulphate to 
supply the world market for a 
hundred years ; deposits of 
silica sand,* 999J- pure; dis- 
coveries of gold, silver, copper 
in the far north which as yet 
are merely reports of pros- 
pectors ; a forest belt over a 
hundred miles wide extending 
from east to west across the 
entire province, all point to 
important sources of wealth for 
future industrial development. 



The Saskatchewan Government 



SIR RICHARD LAKE— Lieutenant-Governor. 

HON. W. M. MARTIN— Premier. President of Council, Minist 

Education and MinUter of Railways. 
HON. W. F. A. TURGEON— Attorney General. 
HON. A. P. McNAB— Minister of Public Works. 
HON. G. LANGLEY— Minister of Municipal Affairs and Mil 

in charge of Bureau of Public Health. 



HON. C. A. DLNNINC — Provincial Treasurer and Minuster in 
Charge of Bureau of Labor and Industries. 

HON. S. J. LATTA— Minister of HiBhways and Minister in Charge 

of Office of King's Printers. 
HON. W. E. KNOWLES— Provincial Secretary and Minister of 

Telephones. 
HON. C. M. HAMILTON— Minister of Agriculture. 



iniiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiM^ 



130 



THE MONETARY TIMES 



Volume 66 



ELECTRICAL WORKSHOP BEING ESTABLISHED 

Canada Has Eighty Per Cent, of the Power in the British 

Empire, and is Surpassed Only by United States — 

Possibilities for Further Use in Railroad 

Operation and in Industry 

By G. W. Austen 

WHEN Lord Desborougrh, chairman of the British Empire 
Chambers of Commerce, went back from Canada to Brit- 
ain he loudly proclaimed his belief that Canada's water-powers 
would make this country ultimately predominant in manufac- 
turing. He bade the people of the mother country beware of 
their accustomed industrial superiority. Canada itself, in his 
opinion, did not realize what precious assets it had. 

Electrical development from water-powers has reached a 
more advanced stage in Canada, in proportion to population, 
than in any other country in the world. The United States de- 
velops about 30,000,000 horse-power, but of this only 7,000,000 
horse-power is from waterfalls. Canada develops a total of 
2,400,000 horse-power, virtually all from water-powers. The 
average cost of power in Ontario is about $12 to the produc- 
ing company now, and the price to industrial concerns from 
$16 to $20 a horse-power. A cost of $60 is common in New 
York state, and very few of the American installations are 
capable of selling power at less than double the price asked 
by the hydro-electric system in Ontario or by some of the 
large Quebec producers which have a surplus for sale. 

Greatest Sources in Empire 
The water-powers of the British empire are very large, 
but Canada has the predominant share. Britain has developed 
from them only about 200,000 horse-power, India 142,000, Aus- 
tralia 130,000, New Zealand 60,000, while Canada has devel- 
oped 2,400,000, and has much larger development coming. 
The Chippawa project alone is expected to produce 350,000 
horse-power more in two or three years. 

If Canada has 80 per cent, of the water-powers of the 
British Empire it likewise stands high in comparison with 
foreign countries. It has nearly five times as much power 
development as Austro-Hungary, eight times as much as Bra- 
zil, twice as much as France, four times as much as Germany, 
one and a half times as much as Italy, twice as much as Nor- 
way, twice as much as Sweden, and two-fifths as much as the 
United States. 

Distribution by Provinces 
The Canadian development by provinces is estimated offi- 
cially: — Per thousand 
Horse-power, population. 

British Columbia 312,482 506 

Alberta 32,080 63 

Manitoba 76,172 133 

Ontario 985,060 359 

Quebec - 842,761 376 

New Brunswick 14,869 41 

Nova Scotia 26,024 51 

Prince Edward Island 1,729 19 

Yukon 13.392 1,574 

2,305,310 276 

The water-powers of Canada are estimated at nearly 20,- 
000,000 horse-power. Of this British Columbia has 3,000,000, 
Alberta 466,000, Saskatchewan 567,000, Manitoba 3,218,000, 
Ontario 5,800,000, Quebec 6,000,000, New Brunswick 300,000. 
Nova Scotia 100,000, Yukon 100,000. Surely this indicates as 
nothing else the industrial possibilities ahead of this country, 
especially when coal is becoming scarce and will always re- 
main fairly high. In Britain, where the cost of coal is $15 a 
ton for domestic purposes, about 80,000,000 tons yearly are 
used to produce electricity. The cost of power varies from 
$50 to $100 per horse-power. Bituminous coal was $15 a 
ton in Ontario this summer, but now has taken a considerable 
drop, but anthracite coal at $17 has not weakened, nor is it 
likely that the price will go back to less than $12 for many 
years, or until the freight-rate situation and the exchange sit- 
uation have righted themselves. The water-produced power 
in Ontario alone has saved 2,000,000 tons of coal, at an esti- 



mated value of about $25,000,000, in the last year. Our coal 
import bill of $70,000,000 can be cut down by a much larger 
utilization of power, and probably will be when large installa- 
tions, permanent supply and a low price give assurance to 
large industrial concerns that they may safely forsake coal and 
put their faith on electricity. 

Electrification of Railways 

One of the problems Canada will have to face in the near 
future is that of electrification of many of the steam railway 
lines. Railway engineers point out that, considering the cap- 
ital cost of the change, it cannot be profitably done at present. 
The capital could not be obtained at reasonable rates. But 
the coal bills of the railways are evidence enough of the saving 
that could be effected in operating costs if the electrical equip- 
ment were once installed. The experience of the Chicago, 
Milwaukee and St. Paul in electrifying 440 continuous miles 
is distinctly in favor of the economy of the electrical system 
For the last three months of 1915, at $4 a ton for coal, the 
coal cost was $200,000. The electric power for the three cor- 
responding months of 1916 cost $88,000. In equipment the 
saving is more than half. 

If Ontario had enough power from Niagara Falls the 
whole steam railway system of southern Ontario could be elec- 
trified, with far lower operating costs. But, of course, the 
cost of the transfer is a gigantic item, and at present nothing 
is likely to be done. The cost of the proposed hydro-radial 
system is so exorbitant that failure for it is feared, not on ac- 
count of lack of traffic, but excessive capital charges. The steady 
growth of power development is, however, tending always to 
stimulate investigation in industrial and transportation sav- 
ings, and if in the years to come industry gets sufficient power 
transportation may well look into the problem. If, as the 
records of the Chicago, Milwaukee and St. Paul, and of the 
Butte, Anaconda and Pacific show, 1 kilowatt hour is equal in 
propulsive power to 6 or 7 pounds of coal, the fact that the 
one can be furnished at a cent in large blocks, while the latter 
will cost now at least 3 cents, is too outstanding to be neg- 
lected long. 

A Publicly-Owned Monopoly 

The recent deal whereby the Mackenzie electrical interests 
at Niagara Falls, the transmission line to Toronto, and plant 
and radials in and around Toronto, is acquired by the Hydro- 
Radial Commission and Toronto is a sign of the rapid develop- 
ment of our power projects. When the Chippawa canal de- 
velopment is complete the hydro-electric system will distribute 
not far from a million horse-power. It will be by far the 
greatest electrical distributing system in the world. Ontario 
will surpass any other' part of the world as an electrical cen- 
tre. Some idea of the savings that may be effected is sho\'rn 
by the fact that the hydro-electric will be able to give power 
to the Toronto street railway at $18 a horse-power, while the 
railway company now pays another Mackenzie company $25. 
Eventually Ontario is likely to have a vast public-owned and 
operated monopoly of power development and traction service. 

Use in Iron Smelting 

In northern Ontario, where water-powers are ample, but 
users scarce, development depends on the establishing of sin- 
gle industries. But if the Dominion government were to bonus 
the iron ore industry at a rate of $1 a ton the vast ranga of 
ore from Sudbury through to the Minnesota border could be 
utilized. The average of this is from 30 to 50 per cent., almost 
as high as the Minnesota ore, and the "beneficiation," alongside 
wonderful water-powers, would naturally lead to the establish- 
ment of electrical furnaces. There are technical difficulties in 
the way of making original pig iron in electrical furnaces, but 
when the two main elements are found side by side the smelt- 
ing business is sure to find some way of establishing itself 
there. In the next twenty-five years the water-powerj of 
Canada will probably become the basis of new industries with 
a production of billions, for the iron ore of the Minnesota 
range is being fast exhausted, the anthracite coal fields of 
Pennsylvania are being exhausted, the timber and pulpwood 
resei'ves of the United States are being fast exhausted, and 
we shall have all these or else satisfactory substitutes ''oi 
them. Nature intended Canada to be the great electricil 
workshop of the world. 




January 7, 1921 THE MONETARY TIM,ES 



iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^ 



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(Cc do no/ act as brokers, not fcuy or sell on margin, bul bu\] anJ sell honils onlv for oar o]Dn account. 



132 



THE MONETARY TIMES 



Volume 66 



stocks Active with Wide Price Variations 



Most Stocks Listed on Montreal and Toronto Exchanges Declined During 
Year — Pulp and Paper Group Showed Strength — Atlantic Sugar's Decline Was 
Sensation of the Year — Bank and Loan Company Stocks Also Lost Ground 



^ Cl( 



MOST groups of stocks listed on the Montreal and Toronto 
Stock Exchanges sold on a lower price basis during the 
closing weeks of tlie year 1920 than at the close of 1919. There 
were exceptions to this rule, notably the pulp and paper 
group, wliich in most cases advanced to new high levels and 
re closing the present year on a materially higher plane 
an they were a year ago. Price recessions include not only 
industrials but banks and loan companies. The bond market 
did not resist the downward tendency. 

A survey of the list of stocks shows that tlie bulk of 
shares are even below the low levels of December, 1919. In 
the utilities, for instance, Bell Telephone has been selling 
lately at around par, as against a low of 115 a year ago; Bra- 
zilian at 35, against 50; Consumers' Gas at 134, against 144; 
Detroit United at 103, against 112; Duluth-Superior at ISVa, 
against 28; Mackay at 69V2, against 13^:>; Quebec Rails at 22, 
against 26; Toronto Rails at 45, against 42; Twin City at 47, 
against 33 ; Winnipeg Electric at 33, against 35. 

The same general characteristic prevails in relation to in- 
dustrials. British Columbia Fishing has been selling at 40, 
against 62; F. N. Burt at 94%, against 105; Bread at 19%, 
against 28; Steamships at 49, against 70; Canadian General 
Electric at 93, against 103; City Diary at 50, against 56; Do- 
minion Canners at 29, against 56; Monarch Knitting at 60, 
against 46; Pacific Burt at 30, against 33; Penmans at 110, 
against 105; Wm. Rogers at 53, against 66; Russell Motor at 
70, against 95; Shredded Wheat at 132, against 145; Tucketts 
at 45 as against 51. 

The equipments show a similar tendency. Locomotive has 
been selling at 85, against 95; National Steel Car at 4, against 
4; Car and Foundry at 34, against 30. 

Among the milling issues considerably lower prices pre- 
vail. Lake of the Woods has been selling at 135, against 169; 
Maple Leaf at 134, against 196; Ogilvie at 200, against 293; 
Western Canada at 115, against 130. 

Of the big mine-industrial issues, Smelters is selling lower 
at 20, against 28; Crow's Nest Pass Coal at 48, against 60; 
Nipissing at 9.75, against 13;25. 

Earnings Have Been Good 

The general run of companies represented in the stock 
market had done well during recent years and only in the 
cases of a few companies did the earnings show serious impair- 
ment in 1920. Numerous stocks, however, were overbought 
and the market became top-heavy, with the result that when 
several strong bearish conditions developed the market gave 
way rather severely. 

The pulp and paper shares and some specialties such as 
Atlantic Sugar occupied the limelight during most of the year. 
The steels, textiles, equipments and utilities did not enjoy 
nearly so much activity on the buying side. The result was 
that when trouble developed the papers and some specialties 
suifered severely, while the last-named groups held fairly 
steady under general pressure. Victory bonds have declined, 
but the recessions have been moderate as compared with the 
war issues of other countries. 

Commodity and Money Markets 

Up until late summer every condition favored the buying 
side of the stock market. The money market had been com- 
paratively easy. Trade in the genei-al commodity market was 
brisk. The incomes of workers were at the peak. Investors 
were getting liberal returns on their securities. 

Then the feeling spread gradually that a change was com- 
ing. This was inspired by the fact that the banks unani- 
mously tightened up on their loans. Instructions to the 
effect that credits should be -withdrawn rather than extended 



were sent out. The banks had good reasons for their action. 
The leading bankers of the country had made a careful sur- 
vey of conditions. Credits had been carried far enough and 
price inflation had gone too far. Furthermore, huge sums 
of money were needed for the movement of the crops. 

Soon after prices of a few important commodities were 
reduced materially and then followed an almost general down- 
ward revision. Nervousness spread to the stock market. 
Speculation was checked by sharp advances in call money. A 
period of suspense ensued which preceded an inevitable slump. 

Pulp and Paper Issues Gain 

In the last Annual Review the Monetary Times forecasted 
that the pulp and paper group would occupy a prominent 
place in the market and gave as reasons the secure market 
for pulp and paper, the immense i-esources of this country, 
the shortage in other countries, especially in the United 
States, and the strong business and financial position of most 
of the Canadian companies represented on the stock market. 
These conditions hold good to-day and are likely to hold for 
many years to come. The pulp and paper issues offered spec- 
ulative opportunities at the close of last year, but they ai'e 
fundanventally investment securities. The growtli in the ex- 
port business of our pulp companies in recent years has been 
spectacular and 1920 is outstripping former years. Exports 
for the first seven months of the current fiscal year aggre- 
gated nearly $104,000,000, an increase over the corresponding 
period a year ago (which was the then high recoi-d) of about 
100 per cent. While the prices of some of the higher classes of 
paper have declined slightly this year end, sharp advances 
in newsprint are predicted for 1921. The prices prevailing 
in the various issues near the close of 1920 are compared 
herewith with the high prices of 1919: — 

— 1919 — Price 

High, 1920 High Low Nov. 23, 1920 

Brompton 85 .87 55 63 

Howard Smith __ 115 151 65 115 

Laurentide 125 245 192 93 

Price Bros. 385 260 150 300 

Prov. Paper 117 85 51 106 

Riordon 226 191 117 162% 

Spanish River __ 125% 90% 17 84 

Wayagamack 150M 90 45 103% 

Sugar's Meteoric Career 

Atlantic Sugar was the individual stock that provided the 
big sensation of the year's activities. The company's last an- 
nual statement revealed large earnings from a substantial 
volume of business. The shares were placed on a dividend 
basis and prospects were rosy until somebody made a serious 
miscalculation. Large volumes of raw sugar were contracted 
for at top prices, just before the bottom fell out of the sugar 
market. The shares, which had risen to 168, slumped heavily 
under the weight of selling to 19. Only at that price was 
confidence in the stock renewed and a moderate recovery fol- 
lowed. 

Steels on Lower Basis 

The steel issues are selling on a much lower price basis 
than they were at the crest of the 1919 movement and in most 
cases are somewhat lower than the low of last year. At 
present levels they look like a reasonably safe purchase. 

A feature of the year's developments has been the long- 
talked-of merger between the Dominion Steel Corporation and 
the Nova Scotia Steel and Coal Company. While the public 
have not been especially attracted by the steel group this 
year the merger is undoubtedly a natural, even inevitable, de- 



January T, 1921 



THE :\IONETARY TIMES 



133 



H. M. E. Evans & Company 

Limited 



FINANCIAL 
AGENTS 

Bonds, Insurance, 

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EDMONTON, ALTA. 



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C. H. BURGESS & CO. 

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T. K. McNAIR 



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GOVERNMENT 

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Mortgages 

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Correspondence Invited 
Valuations Farm Lands 

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Fire Insurance 

Reports Furnished 



134 



THE MONETARY TIME. S 



Volume 66 



velopment. The chief steel business of the world is being 
carried on by colossal corporations. The big Canadian com- 
panies have immense resources of iron and coal, but to com- 
pete successfully in the world's markets the industry must be 
operated on a commensurate scale. Whether the merging of 
big intei-ests in Canada is desirable or not, it is expedient in 
the present era. 

The steel companies suffered from a slackening of new 
orders and plants have not been running anything like full 
time. The decline in basic prices had a temporary effect on 
the steel market, and this, added to coal shortage, made the 
immediate outlook somewhat certain. 

Technical Strength of Victories 
From a market standpoint the year in the market for 
Victory bonds has been less favorable than hitherto, but the 
decline has been moderate as compared with the war bonds 
of other belligerent countries. United States Liberties have 
been selling as low as 88 to 96 on the open market, whereas 
Canada's war loans have been ranging between 90 and 94 Va, 
while the Victory loan committee, which up to the end of 
November controlled the market for the three Victory loans, 
has been able to maintain the price at 96 to 102, and find 
buyers. The course of the market for Canada's domestic 
government bonds may be shown by a comparative table: — 
Issue Price 

Rate price Close, 1919 Nov. 29 

1925 War Loan 5 97.5 96 — 96^i 91% 

1931 War Loan 5 97.5 96%— 96% 90 

1937 War Loan 5 96 99%— 99% 94% 

1922 Victory Loan 51/2 100 100%— 981/2 96 

1923 Victory Loan 5 ¥2 100 100 94 

1927 Victory Loan 5y2 100 10214—100% 941/2 

1933 Victory Loan 5% 100 100 94 

1937 Victory Loan 5y2 100 104%— 103 94y2 

1924 Victory Loan 5y2 100 100 92 

1934 Victory Loan 5y2 100 100 8978 

The finance minister announced on November 29 that all 

Victory bonds would be aemoved from the control of the Vic- 
tory loan committee. On that day trading was heavy on the 
selling side and recessions of from fractions to several points 
were registered. The bonds were taken up in large blocks, 
however, at the easier prices, and in view of the fact that no 
less than $270,000,000 of bonds have been absorbed by perma- 
nent investors through the medium of the Victory loan com- 
mittee the trend of prices should be upward, at least as soon 
as the immediate pressure by needy sellers is removed from 
the market. 

The wisdom of the financial authorities in Canada in al- 
lowing a rate of interest on the war issues commensurate 
with current money-market conditions is being confirmed. 
The private investors of this country have been more inclined 
to hold the bonds they bought as a permanent investment 
than the people in the United States. The authorities in the 
United States made a serious mistake in allowing only 3y2 
per cent, interest, because at that return the people would not 
keep their holdings, and huge volumes of the Liberties are 
still unabsorbed. 

It is noteworthy that during the year 1920 the Dominion 
has redeemed a large volume of the war issues. While com- 
plete official figures are not available, the amount redeemed is 
approximately a hundred million dollars. 

As an investment the Victories are a much better buy at 
the moment than ever before. The yield is higher and the 
floating supply of bonds has been materially reduced. 

The slump in the stock market towards the close of the 
year has had a healthy effect on the technical condition of the 
shares. The actual financial and business condition of most 
of the companies represented is secure. Annual reports of 
companies recently published have been gratifying. A close 
study of representative listed stocks on Canadian exchanges at 
the year's closing prices might be worth while. 

As an indication that the lower price movement in the 
share market is due chiefly to market operations and not pri- 
marily to intrinsic conditions, the bank stocks have been sell- 
ing at a much lower rate than they were a year ago. Com- 



merce has been quoted at 185, against 195; Dominion at 193, 
against 201; Hamilton at 172, against 188; Imperial at 185, 
against 196; Merchants at 169, against 188; Montreal at 190, 
against 209; Nova Scotia at 254, against 273; Royal at 191, 
against 214; Standard at 210, against 209; Toronto at 179, 
against 194; Union at 140, against 158. The declines were 
made in the face of an increase in financial strength among 
the banks. 

The loan and land companies' shares, as this year closes, 
show declines all through the list of several points as com- 
pared with the close of 1919, while the unlisted stocks, more 
actively dealt in here, are selling for the most part on a lower 
basis. 



ALBERTA COAL PRODUCTION HIGHER 

Alberta's coal production for 1920 will be 30 per cent, in 
excess of last year's, it is estimated by the government mines 
branch. A total output of well over 6,500,000 tons is expected 
by the end of the year, as compared with 5,022,412 tons in 
1919. There had already been mined for the first nine months 
of the year, to the end of September, a total of 4,750,964 tons, 
the output for September alone being 618,093 tons. 

The mines are now reported as running satisfactorily in 
all fields, and the good lead over last year was experienced 
throughout November and December. Some difficulty has 
been encountered from the shortage of cars, pai'ticularly at 
Drumheller, but reports to the government offices indicate that 
shipments are going' steadily forward to the local and prairie 
markets as fast as cars can be secured. 



ACTIVE YEAR FOR LAKE STEAMSHIPS 



Freight traffic on the great lakes and on the eastern and 
Pacific coasts during the past year was well above the volume 
of 1919, and passenger traffic on most lines exceeded all pre- 
vious records. Speaking for the Canada Steamship Lines, 
Ltd., which is the largest company operating a service of this 
kind, J. W. Norcross, president and managing director, said in 
an interview recently: — 

"So far as passenger traffic is concerned our receipts are 
almost $1,000,000 in excess of those reported up to this time 
last year. The steamers operating on all divisions of the sys- 
tem have been patronized to an extent which surpasses all 
former records, with inquiries as to accommodations for next 
year of a nature as to indicate that business in 1921 will be 
well up to this year's record-breaking standards. Our hotels 
are booked almost to capacity for next year after an excellent 
season so far in 1920, and altogether the outlook for the tour- 
ist business is excellent. 

"Freight business on the great lakes has also shown ma- 
terial gro\vth and, with the western crop movement inaugu- 
rated in the course of the next ten days or two weeks, our 
earnings in this department will be well in excess of those of 
last year. It should be borne in mind, however, that operat- 
ing expenses of water carriers, like those of the railway sys- 
tems, have been subjected to substantial increases. Labor is 
high, vrith other materials, notably coal, much over the levels 
of last year, but in the ultimate analysis of the results of 1920 
operations I am convinced we shall find that our net earnings 
will compare very favorably with those of 1919, which were, 
it must be remembered, the best in the history of the Canada 
Steamship Lines." 

Mr. Norcross stated that ocean-borne traffic had not been 
up to the 1919 level, but the increases in inland passenger 
and freight business would more than make up for the deficit 
in this respect. The current year's receipts from inland traf- 
fic would, in all likelihood, be maintained next year, while 
ocean freights might undergo improvement. "The underlying 
strength of an organization like Canada Steamship Lines," he 
stated, "lies in the fact that the company operates both ocean 
and inland lines. When business is poor in one direction it 
usually happens that it is profitable in the other. This has 
been our experience in the past and will likely prove so in the " 
future." 



January 7, 1921 THE MONETARY TIMES 



"THERE IS NO DISTRICT IN THE WEST 

WHICH OFFERS SUCH AN OPPORTUNITY 

TO THE MAN WHO HAS AMBITION TO 

OWN A FARM FOR A HOME." 

We always had the 

Soil and Sunshine 

Now we have the 

WATER 

With this combination you cannot fail to produce bounteous crops 

THIS EVIDENCE MUST CONVINCE: 

After the first season's operations had been completed, TWELVE of 
the new settlers bought ADDITIONAL ACREAGE, the second pur- 
chase being in many cases larger than the first. Could we possibly 
offer you a more striking proof of the excellence of the investment ? 

Successful Farming 

is the rule in 

Vauxhall Irrigated District 

PRICES: Up to $75.00 per acre, with full Water Right 

CANADA LAND & IRRIGATION CO. 

LIMITED 
Land Department MEDICINE HAT, Alta. 

Illllllllillllllllllllllllllllllllllllllilllllllllli 



r 



THE MONETARY TIMES 



Shipping and Shipbuilding in 1920 

Fall in Rates Makes New Construction Unprofitable at Present Enhanced 
Cost — Government Merchant Marine Will Probably be Burden to 
Country — Operation Will Assist Foreign Trade at Expense of Taxpayers 



SPEAKING at the launching of the "Canadian Leader" late 
in November, the managing director of the Vickers Com- 
pany, of Montreal, said that 40 per cent, of Canadian ship- 
yards had "sung their swan song." Unless conditions changed 
he expected a much larger mortality. The Vickers Company 
had business to last them until April, and nothing in sight 
after that. 

This condition was typical in most Canadian shipyards in 
the latter part of the year. It was prophesied in midsummer 
in an article in The Monchvy 'fiiihs. Unless there is new 
business coming out of an apparently barren atmosphere 1921 
wjll see the reduction of Canadian shipbuilding to at least one- 
half of its war vigor. The immense impetus given to it by 
war orders and by the Dominion government's immense 
shipbuilding programme — a consequence of the war — has 
ceased, and peace business is being sharply competed for, with 
contracts scarce. Already first-class tonnage is selling in the 
British market for about $100 a ton, and allowing for ex- 
change these ships could be bought for $75 a ton Canadian 
money. The lowest contract of the government list is for 
$167.50 a ton, and Canadian shipbuilders, like British builders, 
cannot build at under $150 a ton. New orders, therefore, are 
mostly for ships of a type or class not purchaseable in the 
open market. 

World's Tonnage is Increased 

The world now has a tonnage larger than in pre-war times 
and apparently quite adequate for the reduced international 
business caused by exchange handicaps. After the great 
war spending orgy the nations are turning to economy and 
shipping rates have fallen to one-third what they were — 
not passenger rates — with cargoes in most lines none too 
plentiful. All this has a reaction on Canada and Canadian 
shipbuilding, and it is now not improbable that Canada will 
have to stand a considerable loss on the government merchant 
marine, not only as regards capital, but in operating. The 
first annual report, up to December 31, 1919, showed a profit 
of $1,406,000 on 28 completed voyages, but since then cargoes 
have been slimmer and i-ates much lower. By the time the 
two dozen freighters now being completed are put into com- 
mission the government marine management may have more 
tonnage on hand than it can profitably employ. 

Large Contracts Placed Here 

The minister of marine announced early in the year that 
the National Shipbuilding Company, of Three Rivers, had ob- 
tained contract for six ships of 5,000 tons d.w., three of 3,200 
tons, and two of 6,500 tons, from French sources. The Vick- 
ers Company of Montreal had contracts for two vessels for 
Norwegian interests, the Coughlan yards in Vancouver built 
steel vessels for foreign use, and other Canadian yards had 
individual foreign contracts. The Prince Rupert Dry Dock 
and Engineering Company was in line for a large order from 
Mexico for cargo. ships and tankers, and the Erb interests of 
New York were said to be ready to give contracts to this 
company, but some hitch in financing appai'ently arose. The 
C. P. R. placed a contract with a Vancouver yard for a steam- 
ship for the British Columbia coastal service, and a lake yard 
did some business altering a lake steamer for ocean service. 
The bulk of the shipbuilding was, however, for government 
account. 

Ship Still to Be Delivered 

On the 1st of December the following ships had yet to be 
delivered to the Government Marine. As will be noticed, 
they are mostly large ships. Indeed, the tonnage of the 25 



vessels is not far under 200,000 tons. The total tonnage con- 
tracted for was 380,000 tons:— 

Price 

Ship. Tons Yard per ton 

Can. Fisher 5,100 Tidewater Co $200.00 

Can. Forester 5,100 Tidewater Co 200.00 

Can. Mariner 8,390 Halifax Shipyards 195.00 

Can. Explorer 8,390 Halifax Shipyards 195.00 

Can. Winner 8,390 Harbor Marine Co. 198.00 

Can. Traveler 8,390 Harbor Marine Co. 198.00 

Can. Cruiser 10,500 Halifax Shipyards 180.00 

Can. Constructor _.10,500 Halifax Shipyards 180.00 

Can. Reaper 8,390 Prince Rupert D. D. Co 190.00 

Can. Thresher 8,390 Prince Rupert D. D. Co 190.00 

Can. Squatter 4,575 British-American Co. 215.00 

Can. Pathfinder ___ 3,500 Dominion Shipbuilding ___ 180.00 

Can. Engineer 3,500 Dominion Shipbuilding ^_- 180.00 

Can. Commander __ 8,390 Canadian Vickers Co. 170.00 

Can. Leader 8,390 Canadian Vickers Co. 170.00 

Can. Highlander __ 8,390 Wallace Shipyards 167.50 

Can. Skirmisher __ 8,390 Wallace Shipyards 167.50 

Can. Rover 3,890 Collingwood Ship Co. 182.50 

Can. Coaster 3,890 Collingwood Ship Co. 182.50 

Can. Sapper 2,800 Nova Scotia Steel 190.00 

Can. Challenger 8,390 Davie Shipyards 167.50 

Can. Harvester 3,890 Port Arthur Ship Co 182.50 

Can. Transporter _- 8,390 Coughlan & Sons 167.50 

Can. Freighter 8,390 Coughlan & Sons 167.50 

Nearly all the freighters of the eight to ten-thousand 
class have yet to go into commission. By the first of the 
year six or seven of the above-mentioned vessels were prac- 
tically ready for service, and all but four or five of the 
twenty-five were on the stocks or in the water. These con- 
tracts are the basis of Canada's shipbuilding activity. What, 
then, will happen when they are complete? The government 
cannot give more, for the sake of giving, not even to provide 
employment for the large number of workmen or allow re- 
turns on the $100,000,000 of capital. The prices now are too 
high and unless labor costs are lowered the plants may, with 
half a dozen exceptions, close dov\Ti permanently. As an in- 
ternational shipbuilding country we have to compete with the 
United States and Britain, and the task is not a light one. 

How Costs Have Risen 

An insight into what has happened in Canadian shipbuild- 
ing costs was provided by the liquidator of the Dominion 
Shipbuilding Company of Toronto. He furnished a state- 
ment showing the increase in labor and material costs: — 

Labor per ton Material per ton 

1918 $40.00 $76.00 

1919 49.00 116.00 

1920 61.00 95.00 

The Dominion Shipbuilding Company entered into a con- 
tract to build ships at $180 a ton, and the labor and material 
alone in 1920 mounted to $156 a ton, and penalties of $70,000 
acci'ued through delay, involving an actual loss in construc- 
tion. It is not surprising that the company went into liqui- 
dation. The two freighters unfinished at the yards, the Path- 
finder and Engineer, will be finished by the Dominion govern- 
ment as a concession to unemployment in Toronto, yet it was 
mainly the insensate demands of shipyard workers for more 
and more wages which produced the result. This has oc- 
curred in nearly all Canadian plants at one time and another, 
and has handicapped the placing of shipbuilding on a safe* 
and sound basis. 



January 7, 1921 THE MONETARY TIMES 



MOOSE JAW 

SASKATCHEWAN 

THE CENTRE OF THE GREAT WHEAT COUNTRY 

We invite enquiries regarding 

Our L^knd, Our Telephone and Municipal Debentures, 
Mortgages and other Securities 



KERN AGENCIES 



(Correspondents : 
LO(iAN A: BRYAN, 

New York 



LIMITED 
INSURANCE Private Leased Wire 

STOCK, BOND AND GRAIN BROKERS Coast to Coast 

MEMBERS WINNIPEG GRAIN EXCHANGE 



MOOSE JAW 



THE EMPIRE LOAN COMPANY 



Authorized Capital $5,000,000.00 

Subscribed Capital 671,100.00 

Paid Up Capital and Surplus - - - 715,000.00 

Assets (approximately) 900,000.00 

President, CHAS. M. SIMPSON Vice-Preiident. WM. BRYDON Secretary-Treasurer. S. T. JONES 

DIRECTORS: 

CHAS. M. SIMPSON, H. H. BKCK. W ^[. BRYDON. A. B. STOVKI,, 

President. Fidelity Trust Company Director Union Tru.st Company Contractor Stovel Company 

JOHNSTON DOUGLASS, RICHARD McKKNZIK, A. N. McPHERSON, 

Oirector. Kiiuitable Trust Company Western .Manager. McLaughlin Motor Car Company .McPherson & Brown 

The Empire Loan Company issues Debentures iu sums of $100 and upwards for terms of from one 
to five years, bearing interest at current rates. Sterling Debentures for .£^25, and upwards, with interest 
coupons payable in London, Kngland, are also issued. These Debentures are a charge on the Company's 
Assets, and the Debenture holders are further secured by the deposit of mortgages with a trustee to the 
amount of one and one half times the total amount outstanding debenture debt. 

Debenture Prospectus may be had on Application. 

HEAD OFFICE: 
UNION TRUST BUILDING, - WINNIPEG 



THE MONETARY TIMES 



Volume 66 



It is no excuse to say that the United States has been 
equally guilty. Our government ships were built at an aver- 
age cost of $190. The cost of the United States Shipping 
Board vessels was near $220. British authorities ordered 
many ships in the war crisis, in the United States, in Canada, 
in Japan, at prices ranging from $200 up to about $215. But 
that was a war crisis, when the submarine made tonnage val- 
uable at any price. Our government ships now have a capi- 
tal co.st much higher than the market price of British ships. 
The efforts of the United States Shipping Board to sell some 
of its thousand or so steel freighters have shown that private 
purchasers now are unwilling to pay more than about one- 
half of the cost of building. Unless large profits are earned 
in the next few years, to bring down the capital cost, the loss 
will probably have to be written off in order that rates may 
be based on current market values. The cost of the Canadian 
government fleet is about $70,000,000, and by the end of 1921 
intrinsic value may not be more than $40,000,000. 

No Demand for New Ships 

There are no recent figures available to show the com- 
pai-ative cost of operating freighters and the returns from 
new freight rates. But an official of the Fairchild firm re- 
cently showed that passenger ship operation had increased in 
cost by about 380 per cent, during the war, and rates have 
increased approximately 180 per cent. On a liner the size 
of the steamer Calgarian, which is well-known to Canadians, 
coal which used to cost $22,500 per trip now costs $120,000; 
repairs for the round voyage $37,500, instead of $8,500; pro- 
visions $40,000, instead of $15,000; wages $45,000, instead of 
$12,500. The capital cost would be $8,500,000 instead of $2,- 
750,000. There was a cost of $300,000 per round trip, includ- 
ing interest, depreciation and insurance. 

It is no wonder that the Canadian Pacific Company, which 
has two passenger vessels being completed in the motherland 
now, has decided that capital costs are too great for any fur- 
ther ordering. Nearly every other ship-operating company 
has come to the same conclusion. 

Comparative Costs 

The result of the surplus of ships in the world, and of 
extraordinary high costs of new^ construction, has been felt in 
the United States and Britain almost as severely as in Canada. 
Most of the 140 steel shipyards of the United States have been 
closed and British orders have been heavily cancelled. On 
June 1 last United States yards had under construction for 
private persons 345 steel ships of 1,063,000 tons. About that 
time British yards regained their supremacy in tonnage in 
hand. But business for 1921 is poor indeed, for in the mat- 
ter of steel alone the United States and Canada can now out- 
bid Britain. British steel costs more to make than American 
or Canadian steel can be laid dowTi in Britain at. Canadian 
ship plates have been exported to South Africa, Australia and 
other countries that used to get British plates only. In Brit- 
ain more than 700 ships are now laid up for lack of sufficient 
cargoes at rates that will meet the cost of operation. The 
United States Shipping Board has laid up about 200 vessels 
and is weekly laying up more. It controls nearly 10,000,000 
tons, and in spite of all that it has tried to do, foreign ship- 
ping is again carrying the bulk of American exports and im- 
ports. 

Jones Act Started Something 

One of the great shipping events of the year was the pas- 
sage of the Jones act by the United States congress. This 
would have directly affected Canada if it had been put fully 
into eff^ect, but President Wilson has declined to obey the most 
important provisions of the act, and thus the situation stands 
in abeyance. The act directed the President to abrogate all 
commercial treaties which required the United States to treat 
shipping of foreign nations without discrimination respecting 
port dues, rate privileges, etc. This could not be done with- 
out repudiation of signed agi'eements, but if it had been done 
the liveliest shipping war ever seen would have been started. 
Canadian ports would have benefited greatly, because this 



country would have been used as the entrepot for foreign 
goods destined for the United States, and United States goods 
would have been shipping out via Canada. The great diversion 
of traffic to Canadian channels would have overcome the 
threatened discrimination and put our Canadian fleet in an 
exceptionally advantageous position. Indeed, the Holt line 
has contemplated moving its head offices from New York to 
Montreal, and on the Pacific Coast some American shipping 
concerns also figured on moving to Vancouver to escape the 
vexatious new restrictions. 

New Routes Opened Up 

During the year steamship services to and from Canada 
have been much augmented. Private lines as well as the 
government marine have put on new steamers and opened up 
new routes. Canada is commercially a much more important 
liart of the world than before the war. Then our foreign 
trade hardly amounted to a billion dollars a year; now it is 
more than two and a half billions. The government marine 
has done much to promote our overseas connections. It is 
operating nov*' about 40 ships out of the total of 63, and Brit- 
ish, West Indian, South American, Australian and New Zea- 
land, Indian, and Chinese and Japanese ports are being regu- 
larly traded with. The government marine concluded arrange- 
ments with the Holt Line and the British India Steamships to 
operate alternate steamers from Atlantic ports to British In- 
dia and to Hong Kong. The Elder-Dempster Line is operat- 
ing a new service to the West Coast of Africa. The Euro- 
pean service is much enlarged. 

The conclusion of the West Indies trade agreement, 
whereby the British colonies of the West Indies, British Hon- 
duras and British Guiana give a 50 per cent, preference, in 
return for the same, has greatly encouraged our southern 
trade. Canadian cement, pulp and paper products, steel, and 
other manufactures are being shipped extensively to these 
southern points. Indeed, our exports of manufactures show 
signs of outstripping our agricultural exports. Before the 
war they were only $43,000,000, now they are $500,000,000. 
The growth of Canadian shipping has been of inestimable 
value in promoting this trade. In 1895 we had 669,000 tons 
on registry, in 1919 we had 1,091,000 tons, and had become 
the fifth maritime country of the world. 

Progress as Maritime Nation 

Even if our shipbuilding is reduced, as it cannot avoid 
being, it will be far larger than before the war, and our net 
gain as a maritime nation is bound to be large and permanent. 
Not much advantage has yet been taken of the Dominion gov- 
ernment oifer of credit assistance to foreign purchasers of 
Canadian ships to be built. The government got authority to 
advance 50 per cent, of the cost of any steel ship of more than 
3,000 tons, providing that 25 per cent, were put up by the 
placer of the order, up to a total of $20,000,000. The loan was 
to be for five years. Some large orders seemed in prospect 
through this assistance, but the United States Shipping Board 
offered more generous assistance, and apparently no advan- 
tage of it has been taken. The government is being asked 
for a direct subsidy on tonnage, but when costs of construc- 
tion are obviously too high this could not be of more than 
temporary use. Shipbuilding is a business that cannot be 
profitably carried on by special subsidy and the shipbuilding 
companies must make their labor and material costs conform 
to the new requirements. 



The value of British Columbia salmon pack in 1920 was 
$13,307,000, according to official figures of the British Colum- 
bia Canners Association. The total number of cases amounts 
to 1,177,047, against 1,399,156 last year, and 1,616,157 in 
1916. 

The coal mines of Alberta produced in 1920 approxi- 
mately six and three-quarter million tons of domestic, 
bituminous and anthracite coal, a volume greater by half a 
million tons than the output of 1918, which had previously 
held the record for the Alberta fields. 



Januan' 7, 1921 



THE :monetary times 

lllllllllllllillllllllllllllllllllllillllllll 



139 



I MOOSE JAW I 

1 Saskatchewan's Railway and Industrial Centre g 




Gross Debenture Debt 
(31st Oct., 1920) - 

Sinking Fund $930,406.91 
High School 142,102.86 

Local Impvts. 

(owners' Sh're) 779.883.37 

Net Debt - 

Surplus in Sinking Fund above legal require- 
ments, $68,042.96 
POPULATION, 1916 census 
Bank Clearings 

1919 
1920(11 mos.) 



$ 5.997,325.84 



-1.852.393.14 
$4,144,932.70 



Sinking Fund Investments : 

First Mortgages 
Rural Telephone Debent. 
Dominion of Canada War Loan 
City of Moose Jaw Debent. 
Province of Saskatchewan 
Cash in Bank - - - - 

Accrued Interest 



$ 85,556.85 m 

418,044.10 m 

310,000.00 = 

67,689.08 m 

8.000.00 = 

3.568.67 m 

37,548.21 ^ 

$930,406.91 = 



Total Tax Levy 



Les 



$86,447,626 
84,910,768 

$1,041,985.99 

Assessment, 1920 
Exemptions 
Net Taxable Assessment 



,934; 1920 census 23, ISO 

Customs Receipts BIdg. Permits. 

$584,064 $ 590,895 
459,621 1,527,200 

Tax Rate - 41.60 mills 

$27,802,825 

4,826,615 

$22,976,210 



Land i, assessed at lOO^c ; .mprovemenls at 45 -c of their value. Surplus of Assets over Liabilities. $2 ,414 .5 75 ^ 

The City owns its own light and power plant which has a capacity of 6.000 K.W., and power J 

is sold to manufacturers at from 1.2 cents per K.W. hour up. ^ 

Moose Jaw is just completing its new water works which will furnish abundant water for ^ 

manufacturing and domestic purposes. i i u = 

Five new industries have been put in operation in the City this year. Moose Jaw is the home = 

of the packing industry of Saskatchewan. The Robin Hood Mi s operate m the cty 8 d.stmct ^ 

factories for the manufacture of food and stock products. Their flour mill has a capacity of 5,UUU ^ 

barrels per day and their roiled oats plant 2,000 cases per day. ^ 

The Government Terminal Elevators, situated in the City, have a capacity of 3,50U.UUU ^ 

bushels. The South Saskatchewan Co-operative Stock Yards, located '" t^^^. C>ty- '^o;"^^""'^ M 

operations in 1919 and now hold third place in the Dominion for volume of traffic handled. the ^ 

capacity of the Yards exceeds 5,000 heads and its area is approximately 80 acres. . ^ 

S. A. HAMILTON, Mayor GEO. D. MACKIE, City Commissioner g 



iilli 



THE MONETARY TIMES 



Volume 66 



Legal Decisions on Provincial and Local Finance 

Capital Expenditure of Oil Company Held Assessable for Income in Ontario, 
and Operations of a Company Are to be Considered Separately— Domicile of 
Deceased Determines Succession Duty— Powers of Medicine Hat Charter Interpreted 



ASSESSMENT and taxation are fruitful sources of litiga- 
tion, and the past year has produced several cases on 
these and other points in public finance which have reached 
the higher courts in this country. 

Union Natural Gas Co. vs. Dover Township 

Of the cases before the Canadian courts during the past 
year dealing vi^ith questions of public finance, that of Union 
Natural Gas Company vs. Township of Dover was the most 
notable and important. The case arose over the assessment 
of the income of the company under the Ontario Assessment 
Act, and the Supreme Court of Canada, in affirming the deci- 
sion of the Supreme Court of Ontario, held that e.xpenditure 
on the sinking of new wells or the deepening of existing wells 
by a company in search of oil and natural gas is expenditure 
on capital account and is not deductible from earnings for the 
purpose of arriving at the income of a mine or mineral woi'k 
assessable under the Ontario Assessment Act. 

In 1916 the Union Natural Gas Company leased land in 
the township of Dover, county of Kent, and drilled wells in 
search of oil and natural gas, but its efforts came to little un- 
til 1917, in which year the value of oil and gas produced was 
$11,041, and in 1918, when oil and gas to the value of $93,368 
were produced. In its efforts to produce this the company 
drilled in the township of Dover some twelve wells, of which 
only two — designated well No. 1 and well No. 7 ■ — produced 
oil and gas, and they produced practically all the oil and gas 
secured by the company in this township. The two wells in 
operation were assessed at $35,000 each, but on appeal to the 
County Court this was reduced to $62,376, this amount being 
arrived at by deducting ground rent and cost of operation 
from gross income. The company claimed that it had suf- 
fered a deficit, for its payments on all wells, whether produc- 
tive or not, had amounted to $116,120, which, less the assessed 
income of 1919, viz., $62,376, left a deficit of $53,743. 

Separate Operations of One Company 

Meredith, C.J. 0., stated that the question for decision 
was as to the mode of assessing which should be adopted. The 
Ontario Assessment Act, section 40. provides that the income 
from a mine or mineral work shall be assessed by and the tax 
leviable thereon shall be paid to the municipality in which 
such mine or mineral work is situate, provided that the assess- 
ment on income from each oil or gas well operated at any 
time during the year shall be at least $20. Then comes sub- 
section 6, which provides for the assessment of mines or min- 
eral work that are being operated. In his Lordship's opinion 
"each gas or oil well — being a mine or mineral work — is to 
be treated as a separate entity and the income from it is to be 
separately assessed." "The assessment in respect of a mine 
or mineral work is a very difl'erent thing from the assessment 
of a merchant, a manufacturer or mine operator in respect of 
the business carried on by him. If, as counsel for the appel- 
lant contended, the appellant was to be assessed in i-espect of 
its business generally, language very different from that which 
is used in subsection 6 would have been used. Wliat the legis- 
lature was there dealing with was land, and it was providing 
that in the case of a mine or mineral work the land should 
not be assessed at its actual value or at less than the value of 
other land in the neighborhood used exclusively for agricul- 
tural purposes, but that its value for assessment purposes 
was to be determined by and be the amount of the income de- 
rived from it. It is to be noticed also that it is not the in- 
come from the business carried on by the appellant but the 
income from the mine or mineral work that is to be assessed."' 

Another case dealing with matters of public finance was 
that of Barthe vs. Alleyn-Sharples. in which the Supreme Court 



of Canada held that the Quebec Succession Duty Act was ultra 
vires the provincial legislature under section 92 (2) of the 
B.N.A. Act. 

The Hon. John Sharpies died domiciled in the province of 
Quebec, and amongst other assets his estate comprised shares 
in various foreign corporations, whose head offices were not 
situated in Quebec. The aggregate value of these shares was 
$213,039, and the defendant, Margaret Alleyn-Sharples, is the 
universal legatee in ownership. Barthe as collector of provin- 
cial revenue sued to recover succession duties in respect of this 
property. 

The article of the Quebec Succession Duty Act in question 
reads: "All transmissions within the province owing to the 
death of a person domiciled therein, of movable property lo- 
cally situate outside the province at the time of such death, 
shall be liable to the following taxes calculated upon the value 
of the property so transmitted after deducting debts and 
charges as hereinafter mentioned." 

The Hon. Chief Justice Davies says in his judgment: "I 
may say that owing to the grave and great importance of the 
question, I have deemed it right in this appeal again to re-read 
all these authorities, with the result that I am more firmly 
convanced than ever that in construing the powers of 'direct 
taxation' within the province granted to provincial legislatures 
by our constitutional act, so far as the levying of succession 
and legacy duties are concerned, the true rule is that which ex- 
isted alike in Great Britain as in the province of Quebec at 
the time such act was passed, namely, that the domicile of the 
deceased owner of the property, and not its actual location at 
his death, determined which province could impose succession 
and legacy duties upon it. The whole question was thorough- 
ly thrashed out and determined in the House of Lords in the 
appeal case of Winans vs. Attorney General, where the rules 
respecting succession and legacy duties and estate and probate 
duties are clearly laid down and the reasons for the application 
of the mobilia sequentur personam rule to the two classes of 
duties, succession and legacy, are given. They (the noble 
lords who decided that case) were unanimous in their reasons 
for the judgment they delivered in determining that so far as 
succession and legacy duties were concerned the domicile of 
the deceased owner and not the local situation of the property 
must be taken as the controlling factor." 

City of Medicine Hat Case 

In another case, which dealt with municipal taxation, the 
city of Medicine Hat referred a stated case to the Supreme 
Court as to whether it could recover taxes due the city by per- 
sonal action. The provisions of the statute in question are 
contairted in sections 6 and 7, title 32 of the city's charter, 
which are: — 

"6. The taxes due upon any land may be recovered from 
any owner or tenant originally assessed therefor and from any 
subsequent owner of the whole or any part thereof, sa\nng his 
recourse against any other person, and such taxes shall be a 
special lien upon the land and shall be collectible by action 
or distraint in priority to every claim, privilege, lien or encum- 
brance to every person except the King; and the lien in its 
priority shall not be lost or impaired by any neglect, omission 
or error of any officer of the city. 

"7. The production of a copy of so much of the roll as 
relates to the taxes payable by any person in the city certified 
as a true copy by the secretary-treasurer, shall be conclusive 
evidence of the debt." 

The words of the Hon. Chief Justice Stuart in deciding the 
case are : "It is apparently well-settled law that a tax is not a 
debt unless expressly declared to be so by the statute imposing 



January 7, 1921 



THE MONETARY TIMES 



The British Columbia Land 
and Investment Agency 

Limited 
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Jistablis/ied in British Columbia, 1S63 

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Volume 66 



it. The simple question is whether by the words used in the 
above sections the court should hold that the statute has de- 
clared the taxes to be a debt. The words are practically the 
same as those of section 305 of the Town Act, and in the case 
of Castor vs. Fenton, the Chief Justice held that under the 
latter section taxes, could be recovered in a personal action 
as a debt. I cannot but conclude that the real meaning and 
effect of the statute is to make the taxes a debt, recoverable 
by personal judgment." 



DIVIDEND-PAYERS IN ALBERTA OIL FIELDS 



The Old and the New Oil Boom — Record of the Southern 
Alberta Oil Company 



By Angus Lyell 



A GOOD deal of interest is being taken at present in the pos- 
sibility of oil being found in Alberta in commercial quan- 
tities. Accurate data on what has been accomplished by con- 
cerns operating in the province is, therefore, valuable. A few 
of the companies promoted in the days of the 1914 boom are 
still in existence, although, largely because of lack of adequate 
capital, they have not accomplished much. The Imperial Oil 
Company, Ltd., howevei-, has been prospecting in several dis- 
tricts, and recent reports of what may be an important dis- 
covery have created fresh interest in the possibility of valua- 
ble oil fields in the province. 

Until an official report is issued by the Imperial Oil Com- 
pany, Ltd., statements regarding the strike at Fort Norman, 
up north in the Arctic circle on the Mackenzie River, should 
be materially discounted. The wild rumors of the last "boom" 
are still fresh in the memory and outsiders should be warned 
not to credit all stories now in circulation. In due course th - 
Imperial Oil Company, Ltd., will undoubtedly issue an official 
report. 

New Field Is Far Away 

Fort Norman is at the junction of the Mackenzie and 
Great Bear rivers, some 1,400 miles north of Edmonton. 
Ajfter leaving the railway at Lac la Biche and travelling somft 
twenty miles to Fort McMurray there is a journey of over 
one thousand miles by water, up the Chippewyan river as far 
as Fitzgerald, where the navigation is impeded by ugly rapids, 
and then through Athabasca lake, the Slave river. Great Slave 
lake and the Mackenzie river. Even if a rich oil field exists 
at Fort Norman it will be years before it can be developed 
It will be necessary first to build a long stretch of railway so 
as to provide adequate means of transportation 

Wihile several hundreds of companies were incorporated 
to prospect in the southern part of the province in the boor' 
days of 1914, the real test of the oil resources of Alberta ha'- 
yet to be made. Scientific and efficient prospecting can b;; 
accomplished only if supported by adequate capital, under 
competent control. This is what nearly all, if not all, the 
local companies lacked. It is undei-stood that certain British 
concerns will enter the field next year, and, if so, some real 
results may be achieved. The Imperial Oil Company evi- 
dently considers indications to be worth while. 

One Good Dividend-Payer 

In view of the developments which may take place it is 
interesting to consider the operations of the Southern Alberta 
Oil Company, Ltd., which for the past three years has paid 
cash dividends. For the sixteen months ending. June 30th, 
1918, it paid a dividend of 12 per cent. Since then it has paid 
two annual dividends of 15 per cent. But yet the company 
shows comparatively little progress. 

For the sixteen months ending June 30th. 1918, its sales 
of crude oil amounted to $76,730, the net profit being $60,188. 
During the next twelve months there was an increased output, 
the sales totalling $90,090, with a net profit of $72,635. For 
the year ending June 30th last there was a decrease in produc- 
tion, the sales being but $53,000. This is accounted for partly 
by damage to the tubing in the producing well, which restnct- 



ed the output for the greater part of three months. The net 
profit for the year was only $31,228. 

The company met with some measure of success in its 
initia} effort. It is its first well which is producing the crude 
oil. Two others have been commenced but not completed, and 
the management appears to have decided to continue develop- 
ment of the producing well rather than sink the available cap- 
ital in further prospecting, which may be a wise policy. The 
oil, however, has a strong odor which reduces its commercial 
lvalue. All of the output is sold to a refining company — the 
Southern Alberta Refineries, Ltd. — which is under the control 
'A the same financial interests. The refining company has 
been paying cash dividends of 10 per cent. 

Southern Alberta's Balance Sheet 

The outlay for development work and the financial stand- 
ing of the Southern Alberta Oil Company, Ltd., may be readuy 
seen from the following comparative balance sheet for the 
past three years: — 

ASSETS 

As at As at As at 
June 30,'18 June 30,'19 June 30,'20 

Cash in hand and at bank __ $23,020 $25,883 $19,40S 

Accounts receivable 75 49,123 72,473 

Equipment, less depreciation 15,476 21,154 20,063 
Development account — 

Well No. 1— Cost, less de- 
pletion reserve 42,565 33,424 27,724 

Well No. 2— Cost 54,539 59,671 63,868 

Well No. 3— Cost 2,688 2,688 2,688 

Leases of natural gas and 

petroleum rights 35,000 35.000 35,000 

Real estate 8,437 21,273 21,273 



$181,802 

LIABILITIES 
Accounts and wages payable $1,785 
Real Estate — Unpaid 

amounts Hot yet due 

Capital — Issued and paid 103,203 

Surplus 76,814 



$248,218 $262,503 



$1,614 

6,336 
103.203 
137,065 



$1,03? 

5,443 
103,203 
152,81g 



$181,802 $248,218 $262,501 

Some Doubtful Assets 

It will be observed that the oil rights and leases are val- 
ued at $35,000, being about one-third of the issued capital. 
This, however, is very modest compared with the value of 
$659,130 which Calgary Petroleum Products, Ltd., places ou 
its oil lands and leases, the issued capital of which company i& 
$930,063. The surplus of $152,813 is at present largely t; 
paper balance, offset by charges to development account ana 
the value placed on the natural gas and petroleum rights; but 
if the company is successful in its operations this item may 
some day have a real value. The cost of well No. 1 is nov. 
being charged annually to its earnings. In the year ending 
June 30th, 1919, it was reduced by $24,307; in 1920, by $30 - 
007. This is the proper practice. In a few years' time the 
initial cost should be eliminated. 

The dividend of 15 per cent, now^ being paid should not 
be regarded wholly as a return on the capital investment. 
The business of the company is highly speculative. Its well, 
the worth of which has been more or less proven, is, as are 
all oil wells, a wasting asset. Each dividend paid represents, 
in the first place, a return of part of the capital employed 
and, only in the second place, pajTuent for the use of that 
capital. Perhaps none too conservative a basis might be to 
treat 10 per cent, of the dividend as a return of capital and 5 
per cent, of it as the earnings of capital. 

But while one or two local concerns may achieve some 
measure of success in prospecting for oil, the real develop- 
ment will be accomplished by the big financial interests, if oil 
of commercial quality and quantity does exist in the pro\'ince. 
This because of the extent of the initial outlay and the neces- 
sity of expert management at all stages of the work. 



January 7, 1921 



THE MONETARY TIMES 



C. R. Clapp & Company 



Government and Municipal 

BONDS 



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VICTORY 
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STOCK EXCHANGE 



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TORONTO 



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OFFER THEIR SHORT TERM 



FIRST MORTGAGE FARM LOANS BONDS 

in denominations of $25.00 and upwards to investors interested 
in a security of absolute safety and which can be easily 
liquidated if required. These Bonds bear interest at 5^ and 
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under Seal, by the province of Manitoba. They are held in 
several provinces. 

FOR FURTHER PARTICULARS WRITE FOR BOOKLET 

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THE MONETARY TIMES 



Volume 66 



JOINT DEVELOPMENT OF FARM AND CITY 



Growth of Industrial Centres Raises Farm Values, Says Can- 
adian Reconstriittion Association — Rural Depop- 
ulation Has Other Causes 



By Sir John Willison 
President, Canadian Reconstruction Association 

WITH a circulation of nearly 7,500,000 copies of pamphlets, 
leaflets, and other written material, and the conduct of 
special advertising, poster, and moving-picture campaigns since 
its inception, the Canadian Reconstruction Association begins 
another year with numerous special educational activities al- 
ready in hand. It recently gave wide circulation to a new 
pamphlet on Agriculture and Industry, dealing with rural de. 
■yopulation, illustrating the general prosperity of agricultural 
communities throughout the Dominion, and emphasizing the 
national danger of free trade or of any radical revision of the 
tariff downward. 

It is a common practice of the Grain Growers to attribute 
the decline in rural population in the Dominion to the tariff. 
The facts are that the experience of free trade England has 
not been different from that of protectionist America, 
nor the history of New South Wales under low tariff different 
from that of the protectionist states of Australia. The move- 
ment of population from farming communities to cities and 
towns is due to social and economic causes not connected di- 
rectly or indirectly with fiscal policies, such as revolutionary 
changes in rural conditions and the multiplication of farm 
machinery which has displaced a great deal of the farm labor 
which was necessary in more primitive conditions, rural free 
mail deliveries, and mail orders systems, which have closed 
village stores and forced merchants and business interests to 
seek larger centres. The truth is that industrial development 
encourages rather than discourages rural prosperity. The evi- 
dence seems conclusive that "where industries flourish and 
expand farm lands rise in value, and that in all those states 
and provinces of North America in which manufacturing :a 
general, active and prosperous, farmers too are most prosper- 
ous and farms of greatest value. 

Manufactures Absorbed Growth of Population 

It is significant that in Quebec where manufacturing 
steadily expands rural population is increasing. Five years 
ago the total area of land under cultivation in the province 
was 10,500,000 acres. This year 15,000,000 acres are under 
cultivation. In a speech at Quebec a few months ago Sir 
Lomer Gouin rejoiced that through industrial development the 
movement of population out of the province had been substan- 
tially overcome." So the history of the southern states shows 
that there was no general recovery from the ruin of the civil 
war "until cotton factories became common and the iron and 
steel industry had its great development. It was found that 
milk rose in value, that the market for dairy products in- 
creased, that canning factories created a demand for products 
previously ungrowTi or unsalable, and that millions of dollars 
spent in the purchase and transportation of. imported food 
preparations were transferred directly to the pockets of south- 
em farmers. In a single year before the revival of agricul- 
ture, Alabama imported canned goods and other food supplies 
from California and elsewhere to the value of $110,000,000. 
In less than a quarter of a century the total assessment of 
North Carolina has increased from $1,000,000,000 to $4,000,- 
000,000. In other states of the south there have been material 
accretions of wealth and prosperity." 

General Interest Comes First 

Dealing with industry, the Reconstruction Association 
contends that: "There are only two sureties of individual suc- 
cess or collective prosperity. These are industry and effi- 
ciency. . . . The man who creates a great industry, turns 
raw material into finished products and employs labor at good 
wages is a public benefactor even though he amasses wealth 
in the process. In these days the labor leader who organizes 
workmen to demand higher wages, but neglects to emphasize 
the need of efficiency and greater production, puts a class in- 



terest before the general interest. So does the farmer who 
reduces production in order to increase prices, or the manufac- 
turer who uses a tariff to secure an unreasonable margin of 
profit. There is a statement by Mr. W. A. Appleton, secre- 
tary of the English Federation of Trade Unions and President 
of the International Federation of Trade Unions, which one 
would like to have posted in every shop, factory and post office 
in Canada; read from every pulpit, and printed on the first 
page of every newspaper. 'Everything depends,' h^e says, 
'upon production. Standards of living cannot be raised, nor 
can existence be maintained unless mankind accepts this con- 
tention. Eloquence, rhetoric or legislative action, whether 
acting separately or collectively, cannot make the corn grow 
or build houses, or feed children, or clothe humanity. Only 
working and thinking can provide the things essential to life 
and comfort.' " 

North Dakota's Experience 

The investigation department of the Reconstruction Asso- 
ciation has recently made a field survey of the situation in 
North Dakota with particular reference to the operations of 
the Non-Partisan League. Its findings are to be published in 
pamphlet form and will be given wide circulation. North Da. 
kota presented a situation essentially similar to that in west- 
em Canada. Like the prairie pro\'inces. North Dakota was 
largely a one-crop territory, and the farmers there, like the 
farmers of the Canadian west, were confronted with problems 
and difficulties directly traceable to pioneer conditions and 
lack of organization for marketing. Misunderstandings were 
largely responsible for the agriculturists blaming these diffi- 
culties upon the financial and commercial interests. The 
North Dakota situation provided an opportunity for persons 
with socialistic connections and ideas to exploit the growing 
class-consciousness of the farmers and to gain the moral and 
financial support of the agriculturists of the state for a social- 
istic programme. 

The farmers have derived no noticeable benefit from the 
experiments ctf the Non-Partisan League, but the socialistic 
legislation has not been without its effect. North Dakota has 
not been able to sell any of its state bonds for the last four 
years. The $2,000,000 of North Dakota bonds which consti- 
tute the capital of the Bank of North Dakota have up to the 
present proved unsalable. Many insurance companies and 
loan and mortgage companies have refused to make new loans 
in North Dakota, although increasing their investments "n 
other states. It cannot be questioned that the withdrawal of 
such companies as a soui-ce of capital for the farmers has re- 
sulted in an increase in interest rates. The report analyzes 
in particular the state banking experiment represented in the 
Bank of North Dakota and shows the chaotic state into which 
the Non-Partisan League policies have brought the govern- 
ment and the banking and industrial schemes of the league. 

Literature Distributed 

The chief activities of the association this year have con- 
sisted of the publication of its "Ten Commandments for Can- 
adian Trade," urging public support of the home market. 
These were given wide circulation, no less than 38,000 being 
distributed throughout the country. As a further step in the con- 
duct of its Made-in-Canada campaign, it issued a special pam- 
phlet on "Ways to National Prosperity" last June. The national 
situation was the subject of a special speech by the president 
before the Canadian Club of Halifax, entitled "The Outlook for 
Canada." This was sent to newspapers throughout the coun- 
try, to members of Parliament, manufacturers, university pro- 
fessors, school teachers, bank officials, clergymen, secretaries 
of labor organizations, and municipal libraries. On July 1 
the boot and shoe industry in Canada was the subject of a 
special survey made by our investigation department and pre- 
sented to the Boot and Shoe Manufactui'ers' Association of 
Canada. "Western Factories and Lower Prices" was the sub- 
ject of another particular leaflet giving extracts from a 
speech delivered before the Progressive Club of Montreal by 
Mr. W. D. Cowan, M. P. for Regina, printed by the association 
and circulated in thousands in the west. 

During the year the association has conducted its poster 
advertising campaign urging home-market development and 
support, and its industrial films dealing with the iron and 



January 7, 1921 



THE >IONETARY TIMES 



145 



Cable Address, "Nanton, Winnipeg" 



OSLER, HAMMOND & NANTON 

Investment Brokers, Financial 
and General Insurance Agents 

WINNIPEG, CANADA 



Represent: 



LOANING 



Law. Union and Rock Insurance Co. (Investment 

Dept.) 
North of Scotland Canadian Mortgage Co.. 'Ltd. 
Dominion of Canada Investment and Debenture 

Co.. Ltd. 
Osier & Nanton Trust Company 

LANDS 
Calgary & Edmonton Land Co.. Ltd. 
Canada Saskatchewan Land Co.. Ltd. 
Winnipeg Western Land Corporation. Ltd. 



Represent: 

INSURANCE 
Law. Union and Rock Insurance Company 
New York Underwriters Agency 
Western Assurance Company 
Queen Insurance Company 
Northern Assurance Co.. Ltd. 
Guarantee Company of North America 

STOCKS AND BONDS 
Stocks and Bonds bought and sold 
on Toronto, Montreal. New York 
and London (Eng.) Exchanges. 



REAL ESTATE DEPARTMENT 
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Members 
Toronto Stock Exchange 
Montreal Stock Exchange 



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NEW YORK, MONTREAL AND TORONTO EXCHANGES 



DEALERS IN DEBENTURES 



SIR EDMUND B. OSLER F. G. OSLER G. T. CHISHOLM 

H. F. MARRIOTT H. FRANKS 



THE ]\I N E T A R Y TIMES 



Volume 66 



steel, grain and milling, woollen, agricultuial implement, elec- 
tric lamp, pulp and paper, sugar, and cocoa and chocolate in- 
dustries, have been shown in 75 per cent, of the cities, towns 
and villages throughout the Dominion having moving picture 



theatres. Copies of these films have also been shown in Great 
Britain and will form part of the illustrated industrial ma- . 
terial which will be a feature of the Made-in-Canada train 
which is to tour France. 



Buying Movement Ended in Past Year 

1920 Started With Activity, and Early Months Were Busy, But Trade 
Soon Slackened— Business Depression Experienced By Wholesale and Jobbing 
Houses— Close of Year Finds Numerous Failures and Much Unemployment 



I'^HE year 1920 will be marked out in the annals of Cana- 
dian trade as the one in which the price index number for 
commodities attained the high-water mark of a generation 
and then began an extended period of decline. The cycle of 
advancing prices lasted about five years, beginning early in 
1915, when Canadian industi-ies discovered that instead of col- 
lapse due to the war they could make big profits from war 
business and at the same time carry the entire country 
through a period of prosperity. 

Judge Gary, chairman of the board of directors of the 
United States Steel Corporation, described the readjustment 
of prices to low-er levels as "healthful." And that is a truth 
that should be driven home at the present time. The indus- 
tries and the wholesale, jobbing and retail trades had been 
set a rapid pace by the public, both at home and abroad, who 
were buying everything, no matter what the price, because 
they had ready money. The majority of people are spend- 
thrifts. Money easily made is easily spent, but this human 
weakness has one good result in that it makes money circulate 
rapidly through the channels of trade. Credit was easily ob- 
tained. Manufacturers, wholesalers and retail merchants par- 
ticipated in this. Business firms, \Some of them without much 
behind them hy way of capital, were carried along on the tide. 

Banks Call a Halt 

Then an abrupt halt was called by the banks. Credits 
were sharply curtailed and all departments of trade were in- 
structed to get on a cash basis. The banks could have allowed 
business to work out its own salvation, but it was judged bet- 
ter to control the process of readjustment, tJiereby making 
the change easier for all concerned. All would have suffered 
by a severe slump in prices, whereas the trade can adapt it- 
self without serious trouble to a decline that comes by slow 
degrees. 

Business firms which are soundly financed will not suffer 
serious embarrassment. In most branches of trade buying 
has been carried on cautiously for some months. The mills 
will go slowly for a time, as retailers are refusing to buy until 
their shelves are cleared. Sacrifice sales have been prevalent 
all over the country. 

Moderate recessions in the prices of commodities have 
been widespread. Among the raw materials, grains, wool, 
hides, cotton, wool and steel have been reduced in price, and 
this movement has been followed by recessions in clothing, 
motor cars, sugar, shoes, hardware, live stock, some drugs and 
many other lines. 

Production Slows Down 

In the case of many of the commodities mentioned above 
the output of factories has been curtailed. Some industries 
have closed down, but , as yet the latter are not numerous. 
Well-informed students of the markets agree that the partial 
depression in business experienced at present is only tem- 
porary. The hope entertained is that w-orkers will hereafter 
atte»d more strictly to business; that when buying of raw- 
materials is resumed by manufacturers it will be at prices suf- 
ficiently reduced to permit the retail trade to buy commodities 
cheaper. 

The number of unemployed has increased in recent months 
but this is largely due to the fact that workers have acquired 
the habit of picking and choosing employment. The mines 



and the lumber camps are calling for men and conditions will 
force marly unemployed to leave the cities. 

While it is not expected that the volume of business will 
shrink to a point where genei'al distress will be felt, at least' 
for a year, the scale of production and consumption will not 
for many years be as large as it has been during the past three 
years. It was inevitable that when Europe caught up in the 
purchase of actual needs, following the devastation and depri- 
vations of war, strict economy would ensue. Retrenchment in 
buying has already set in. The Canadian government, which 
had bought heavily in the domestic market, is purchasing much 
less now. 

Business Casualties on Increase 

Business failures diminished in number steadily during the 
closing years of the war and the ebb tide w-as reached in July, 
1919. Since then the increase, while slow, has been fairly 
steady. Weak members among all the trades are being elim- 
inated. Houses that have given credit are strict. Little time 
is given for debtors to pay up. During the nine months of 
1919 ending September 30th failures in Canada were 608, as 
against 433 during the corresponding period in 1919. The 
assets of firms which assigned were less, being $723,000, as 
against $2,622,000, whereas liabilities increased heavily from 
$5,942,000 to $13,966,000. Conditions in the United States aie 
about the same in proportion. Failures numbered 4,885, as 
against 4,124 a year ago; assets were $44,630,000, compared 
with $138,394,000, and liabilities $218,003,000, against $90.- 
690,000. The trade may expect to witness further increases 
in failures. 

Money for loaning purposes is hard to get. The loan com- 
panies found it easy some years ago to secure funds in Great 
Britain for investment in Canada, but very little is available 
now. In face if this, the demand for money is keen. Neither 
farmers nor retailers want to dispose of the com.modities they 
hold at current reduced prices, but in older to hold on they 
need money. Loan companies are asking 7'>2, and in some 
cases 8 per cent., as compared with 7 per cent, previously. 

Earlier in the year travellers found business in Canada, 
both east and west, very active. Largo orderj were booked. 
Later in the year", however, the trade grew nervous and can- 
cellations were numerous. It is expected that most of these 
orders will be renew'ed and new orders placed when the trade 
receives announcements of moderate Dit general redactions 
in price lists. 

A Redeeming Factor 

One important factor that wi'l help to forestall business 
depression in Canada are the excclier.t crops in most sections 
of Canada. It is estimated that total field crops will amount 
to 1,250,000,000 bushels, which represents close to a billion 
dollars to the farmers. While accumulated debts on the part 
of many farmers in western Canada will swallow up profits, 
the purchasing power of the country ss a v.-hole will be fairly 
substantial. 

During the fall the volume of sales among manufacturers, 
jobbers and retailers was unusually small. In the raw com- 
modity markets the turnover in some lines showed new low 
records in volume. The turn of the New Year, howerer, 
should witness a revival of trade, because by that time returns 
for crops will be in hand and the readjustment to a lovrer 
standard of prices will have been established. 



January 7, 1921 



THE MONETARY TIMES 



ESTABLISHED I S S 1 



OLDFIELD, KIRBY & GARDNER 

WINNIPEG and CALGARY 



Insurance in all its branches. 

Money loaned on mortgage in Manitoba, Sask- 
atchewan and Alberta. 

Rents Collected. 

Real Estate bought and sold. 



WE HAVE SPECIAL FACILITIES FOR SECURING WARE- 
HOUSE SPACE FOR MANUFACTURERS 
OR JOBBERS 



JOHN STARK & CO. 



Members Toronto Stock Exchange 



Established 1 870 



ROYAL BANK BUILDING 

Corner King and Yonge Streets 

TORONTO 



STOCKS MORTGAGES 
BONDS REAL ESTATE 



We specialize on all kinds of Investment Securities such as 

Standard Railway, Public Utility and 
Bank Shares 

Government, Municipal and Industrial Bonds 

Morgages on first class Toronto City Property 

TELEPHONE ADELAIDE 6250 
WE INVITE CORRESPONDENCE 



The Western 
Agencies and Development 

Company Limited 
CALGARY - - ALBERTA 



FARM LANDS AND INVESTMENTS 



This Company is prepared to assist in the 
development of Western Canada by 
financing new industries of sound char- 
acter. 

BOARD OF DIRECTORS: 

Col. J. S. Dennis, President, C. P. Taprell, Vice- 
President. R. Randolph Bruce, A. E. Cross 
James W. Davidson, George Lane 
J. E. A. Macleod, William Pearce 
H. H. Farman - Manager 



REFERENCES— Bank of Montreal or any 
Mercantile Agency 



THE MONETARY TIMES 



Volume 66 



Legal Decisions Affecting Loan Companies 

Sections (i and 7 of Interest Act, Referring to Descriptions of Interest Payable in 
Mortgages, Give Rise to Three Important Cases — Rights of First and Third Mortgagees 
— Bond Given to Guarantee a Loan — Provincial and Dominion Permanent Loan Case 



rilHE Interest Act of Canada continues to require interpreta- 
J- tion by the courts. A number of cases of this kind have 
during the past year reached the higher courts of this country, 
and a number of other decisions have related to mortgage 
loans and other affairs of loan companies. 

In the case of Canadian Moi-tgage Investment Company 
vs. Cameron, the mortgagor entered into the following cove- 
nants in a mortgage: 

"First: That he will pay to them, the said mortgagees, the 
above sum of one thousand four hundred dollars and interest 
thereon at the rate hereinafter specified in gold or its equiva- 
lent, at the office of the said mortgagees at the City of Tor- 
onto, in the Province of Ontario, as follows: That is to say, in 
instalments of one hundred and seventy-nine 90/100 dollars 
half-yearly on the 24th days of June and December in each 
year until the whole of said principal sum and interest thereon 
is fully paid and satisfied, making in all ten half-yearly instal- 
ments. The first of said instalments to become due and be 
payable on the 24th day of December, 1907. All arrears of 
both principal and interest to bear interest at 10 per centum 
per annum as hereinafter provided. 

"Secondly: That he will pay interest on the said sum or so 
much thereof as remains unpaid at the rate of 10 per centum 
per annum by half-yearly payments on the 24th days of De- 
cember and June in each and every year until the whole of the 
principal money and interest is paid and satisfied, and that 
after maturity interest shall accrue at the rate aforesaid from 
day to day, and that interest in arrear, whether on principal 
or interest, and all sums of money paid by the mortgagees un- 
der any provision herein contained or implied or otherwise, 
shall be added to the principal money and shall bear interest 
at the rate aforesaid, and shall be compounded half-yearly, a 
rest being made on the twenty-fourth days of the months of 
December and June in each year until all such arrears of prin- 
cipal and interest are paid; and that he will pay the same and 
every part thereof on demand." 

Provisions of Interest Act 

The sections of the Interest Act applicable in this and the 
followang two cases are: 

Section 6. Wlienever any principal money or interest 
secured by mortgage on real estate is, by the same, made on 
the sinking fund plan, or any plan under which the payments 
of principal money and interest are blended, or on any plan 
which involves an allowance of interest on stipulated repay- 
ments, no interest whatever shall be chargeable, payable or 
recoverable, on any part of the principal money advanced, un- 
less the mortgage contains a statement showing the amount 
of such principal money and the rate of interest chargeable 
thereon calculated year or half-yearly, not in advance. 

Section 7. Whenever the rate of interest shown in such 
statement is less than the rate of interest which would be 
chargeable by virtue of any other provision, calculation or stip- 
ulation in the mortgage, no greater rate of interest shall be 
chargeable, payable or recoverable, on the principal money ad- 
vanced, than the rate shown in such statement. 

Special Statement Not Required 

In this case the Supreme Court of Canada held that as the 
mortgagor had covenanted to pay the principal and interest in 
ten half-yearly payments and to pay interest on the principal 
or so much thereof as remains due at the rate of 10 per centum 
per annum and the same rate on any sum in arrear, the mort- 
gagee may collect the interest, as section 6 has been complied 
with, and that if the mortgage shows the amount of principal 
and the rate of interest calculated as required a special state- 
ment, complete in itself, showing the amount of the principal 
and the rate of interest is not necessary. 



Standard Reliance Mortgage vs. Stubbs 

In another case along the same line, the Standard Reliance 
Mortgage Corporation vs. Stubbs, argued before and decided 
by the Supreme Court of Canada at the same time as the Cam- 
eron case, the mortgagor covenanted to pay the sum of $700, 
"together with interest thereon as hereinbefore provided, said 
principal and interest being payable as follows: The sum of 
$8.75 on the first Monday of each month for the period of 135 
months, and it is further agreed that the principal is $700 
and the rate of interest chargeable thereon is 10 per centum 
per annum as well before as after default." 

"The purpose and effect of the concluding clause of sec- 
tion 6 of the 'Interest Act' are certainly not as clear as couid 
be desired," said the Court. "Consideration of its terms, how- 
ever, has led me to the conclusion that it does not prescribe 
that the mortgage shall set forth the calculation by which the 
several blended payments or instalments of principal and in- 
terest are computed, or that it shall be shown w'hat amount of 
principal and what amount of interest is comprised in each 
such payment or instalment. What the prescribed statement 
is to show is (a) 'the amount of such principal money ad- 
vanced'- — namely, the amount of the principal money secured 
which has been advanced and is to be repaid in the blended 
payments; (b) 'the rate of interest chargeable thereon' — name- 
ly, the rate at which the interest to be paid is to be com- 
puted; (c) The section further prescribes that such interest 
shall be 'calculated yearly or half-yearly not in advance,' and 
the 'statement' shall show that it is intended to be so com- 
puted. The adjective 'chargeable' clearly relates to and quali- 
fies the word 'rate.' The participle 'calculated' equally clearly 
relates to and qualifies the word 'interest.' It cannot apply to 
the word 'rate'; a 'rate of interest' is not 'calculated.' but the 
'rate' is distinctly affected by the frequency with which it is 
calculated or computed and interest in advance is appreciably 
more advantageous to the lender than interest not in advance. 
Ten per cent, per annum computed monthly is a rate ma- 
terially higher than 10 per cent, per annum computed yearly. 

"There is nothing in the statute which precludes requir- 
ing payment by quarterly, monthly or even weekly instalments 
of blended principal and interest. But however frequently the 
payments are to be made, not only must the rate of interest 
chargeable be stated, but it must also appear that such inter- 
est is to be 'calculated yearly or half-yearly and not in ad- 
vance.' If the rate be stated to be say 10 per cent, per annum, 
although this is not an explicit statement that the interest is 
to be computed yearly, such a computation is implied, and I 
should regard it as a sufficient statement to that effect and as 
precluding the computation of interest on any other than a 
yearly basis. So, too, with the provision 'not in advance.' 
Unless the contrary is expressly stipulated, I would read a res- 
ervation of interest at 10 per cent, per annum as precluding 
computation of interest in advance. That the interest in such 
a case is to be computed 'not in advance' is, I think, the rea- 
sonable implication from the stipulation. The statement in 
the mortgage before us that the rate of interest chargeable 
thereon is 10 per cent, per annum as well before as after de- 
fault is, in my opinion, a sufficient statement of the rate of 
interest and that it is to be calculated yearly and not in ad- 
vance." 

Biggs vs. Freehold Loan and Savings Co. 

In the case of Biggs vs. Freehold Loan and Savings Co., 
also decided by the Supreme Court of Canada, the mortgage 
was given to secure the payment of the sum of $20,000 with 
interest at 9 per cent., payable half-yearly, and contained the 
following provisos: — 

"The amount of principal money secured by this mortgage 
is $20,000 and the rate of interest chargeable thereon is 9 per 



January 7, 1921 



THE MONETARY TIMES 



W. L. McKINNON 



DEAN H. PETTES 



VICTORY 
BONDS 



FOR SALE 

Secured by all Canada's Resources 

Interest Return High 

Safest and most convenient form 
of investment. 

W. L. McKinnon & Co. 

Dealers in 

GOVERNMENT & MUNICIPAL BONDS 
McKinnon Bldg., Toronto 

19 Melinda Street. 

Telephone Ade. 3870. 



Government 
Bonds 

MUNICIPAL AND 
SCHOOL DEBENTURES 

ot the 

Province of Quebec 

Denominations of 
$100, $500 and $1,000 

St. Cyr, Gonthier & Frigon 

BOND DEALERS 

103 St. Francois Xavier Street 
MONTREAL, P.Q., CANADA 



Mackenzie & Kingman 

Financial Agents 



Investment Brokers 



BONDS 



AND STOCKS BOUGHT AND 
SOLD ON ALL EXCHANGES 



Full Particulars on Application 

Correspondence Solicited 

INSURANCE AGENTS 



Lake of the Woods Building 

MONTREAL 



Cable Address : MACKING 



Canadian 
Government, Municipal 



AND 



Corporation Bonds 



BOUGHT AND SOLD 



Correspondence Invited. 



Eastern Securities Company, Ltd. 

James MacMurray, Managing Director 
92 Prince Wm. St., 193 Holiis Street, 

ST. JOHN, N.B. HALIFAX, N.S. 



150 



THK MONETARY TIMES 



cent, per annum payable half-yearly, not in advance. The 
said sum of $20,000 is to be due and payable in two years after 
date. Provided (1) that on default of payment for two 
months of any portion of any money hereby secured the whole 
of the instalments hereby secured shall become payable, and 
(2) that on default of payment of any of the instalments 
hereby secured the interest at the rate above mentioned shall 
be paid on all sums in arrear and also on the interest by this 
proviso secured at the end of every half-year that the sum 
shall be unpaid." 

The mortgage wa.s in default for over two months, where- 
by the whole amount became due and payable, whereupon the 
savings company claimed that it was entitled to interest at 
the rate of 9 per cent, on the amount in default, according to 
the second proviso quoted above, while the mortgagor con 
tended that the company could not collect more than the then 
legal rate of interest — namely, 6 per cent., and in this case 
the decision of the court was in favor of the mortgagor, on 
the ground that the principal sum of $20,000 coming due 
under the first proviso quoted above was not an "instalment 
in arrear." 

"The language of these provisos," said the court, "has 
very intelligible application to the case of the loan where the 
principal sum advanced and interest thereon at a rate agreed 
upon are blended together and the sum of the amounts sc 
blended is made payable by instalments until the whole 
blended sum is repaid, and the effect of the first of these 
provisos in such mortgage plainly is, that upon any one of 
those instalments becoming in arrear and continuing so for 
two months after the day prescribed in the mortgage for pay- 
ment thereof, then the whole of the subsequent instalments 
shall become immediately payable in advance, whereupon the 
mortgagee may exercise all the powers contained in the mort- 
gage for the recovery of the whole amount remaining on the 
security of the mortgage in anticipation of the day specified 
in the mortgage for payment of the last instalment." 

Isman vs. Sinnott , 

In the case of Isman vs. Sinnott the question arose as to 
whether a mortgagee holding a first and third mortgage and 
who foreclosed under the first mortgage could then recovei 
the amount of the third mortgage under the covenant for 
payment. Isman purchased from Sinnott the Kamsack Ho- 
tel. As part payment he transferred to him two mortgages 
on the King's Hotel, these mortgages being a first and third 
mortgage made by one John D. Yandt to Isman. Collateral 
to these tvi-o mortgages, Isman gave Sinnott a second mort- 
gage on the Kamsack Hotel, this mortgage containing the 
following provision: — 

"Provided and it is hereby agreed and understood that 
this mortgage is collateral to two other certain indentures of 
mortgage dated May 29, 1913, and made between John D. 
Yandt of Winnipeg in Manitoba, gentleman, as mortgagor, 
and the said Charles Isman as mortgagee, and that payment 
in full or in part by the said John D. Yandt under the said 
t\vo mortgages shall constitute payment in full or in part of 
this mortgage, and that upon payment of the said mortgages 
either by the mortgagor therein or by any other person the 
mortgagor herein shall be entitled to a discharge of this mort- 
gage, and upon default in payment by the said John D. Yandt 
under the said mortgages and in the event of the mortgagor 
herein making the payment in full imder the said mortgage 
to the said Jacob Sinnott as provided therein, he shall be en- 
titled to a reassignment of the said mortgages and to a dis- 
charge of this mortgage." 

Neither Mortgage Paid 

Yandt did not pay either of these mortgages, assigned 
to Sinnott, and Sinnott then took proceedings in the Land 
Titles Office for a sale of the said Kjng's Hotel under the 
first mortgage, but not being able to find a purchaser, he 
foreclosed under the act. After the issue of a certificate of 
title to him, he first mortgaged and afterwards sold the 
premises and a certificate of title was issued to his pur- 
chaser. 

The Saskatchewan Court of Appeal on these facts decided 
as follows: "It is well settled that the foreclosure by a first 



mortgagee does not affect the right of a subsequent mortga- 
gee to recover on the personal covenant in his mortgage, even 
though the first mortgagee has disposed of the property to a 
third person after foreclosure. 

"The defendant could not have foreclosed under the third 
mortgage except subject to the second mortgage. In order 
to get his rights under his first mortgage he had to foreclose 
under it, and thereby free the title he would obtain under the 
proceedings, from the second mortgage, and this, necessarily, 
freed it from the third mortgage also, because there is no 
such thing as tacking under the Land Titles Act. It is true 
he would be a consenting party to the wiping off the title of 
both the second and third mortgages, and he would take title 
imder the foreclosure proceedings 'free from all right and 
equity of redemption on the part of the owner, mortgagor or 
encumbrancer, or any person claiming through or under him 
subsequent to the mortgagee, the mortgagee being in this 
case the first mortgagee.' " 

Dime Savings Bank vs. Mills 

In the case of Dime Savings Bank vs. Mills the court 
interpreted a bond given to guarantee a loan of $6,000, and 
decided upon the liability of the guarantors according to the 
terms of the bond. The bond was conditioned as follows: 

"Now therefore for value received we, the undersigned, 
L. G. Howell of Gait, Ontario, and Thomas Mills of Kingston, 
Ontario, hereby jointly and severally guarantee the payment 
of any and all sums of money which may at any time here- 
after be owing and payable by Stearns-Knight Detroit Co. 
when organized, to said bank, not exceeding $6,000 at any 
one time, upon notes, acceptances, endorsements, overdrafts 
to be made by said corporation when organized, or upon any 
account whatsoever. Acceptances of this guarantee, notice of 
default, renewal or extension of time of payment of any part 
of said indebtedness, any releases thereof, addition thereto or 
change or other foi'm of security are hereby waived and 
agreed to. This guarantee is a continuing guarantee cover- 
ing all indebtedness of said Stearns-Knight Detroit Co., when 
organized, to said bank, not exceeding $6,000 at any one 
time, upon any account whatsoever, until revoked by notice 
given to said bank." 

"The real meaning of the guarantee," said the coutt, 
"seems to be expressed in the last paragraph of the bond, 
where it is said that the guarantee is to be a 'continuing 
guarantee covering all indebtedness (of the company) to said 
bank not exceeding $6,000 at any one time upon any account 
whatsoever.' 

"I read this as meaning that the sureties were, notwith- 
standing renewals, extensions, additions or changes, to be 
liable 'on any account whatsoever' only to the extent of 
$6,000 at any time, and that when they chose to revoke by 
notice they could do so, their liability being then fixed by the 
limited account. The limitation of $6,000 is intended as a 
protection to the bank, not a prohibition against advancing 
more than that amount." 

Decision Regarding Dominion Permanent 

The following case deals with the reincorporation of a 
provincial loan company into a Dominion loan company, in 
which an agreement was drawn up by which the shareholders 
of the .Provincial Permanent Loan Company accepted stock 
in the Dominion company of the same name, paid up by the 
transfer of assets. One clause of the agreement provided 
"in case the amount of stock to which any shareholder is en- 
titled is a fraction of a share, or a number of shares and a 
fraction, then in either of such cases the stock to be issued 
for such fraction shall be one share with the amount of such 
fraction paid up, and the shareholder to whom such stock is 
allotted shall have the privilege of paying up the balance of 
such shares of stock so issued." 

Justice Middleton says: "Under the statute then in force, 
the Loan Cororations Act, 'No shareholder shall be liable for 
or chargeable in respect of permanent shares with the pay- 
ment of any debt or demand due by the corporation save 
only to the extent of the amount unpaid on his shaves in the 
capital stock of the corporation.' 



January 7, 1921 



THE MONETARY TIMES 



The Canadian Appraisal Company, 



LIMITED 



The Pioneer Appraisal Organization of Canada 

ESTABLISHED 1905. 

I 'HE Canadian Appraisal Company, Limited, has now completed fifteen years of service 
•*■ and enjoys to-day an unrivalled position as an Appraisal organization amongst 
manufacturers as well as Insurance and financial houses within the Dominion. 

Several thousand properties have been appraised by us to date. Amongst these are the 
most representative industrial concerns and those which are "a household word" in 
practically every line of manufacture, including also all the properties comprising the 
recently formed "British Empire Steel Corporation, Limited." 

ADVANTAGES OF AN APPRAISAL 

Its Appraisal is an expert detailed analysis which establishes beyond question both 
quantities and values. To be authoritative, such analysis must be made entirely iniie- 
pendent of original cost records. It is so planned as to show separately the insurable 
portions of a property as distinguished from the portions that it is not necessary to 
insure. It is an authoritative exhibit of values existing before a fire loss, and therefore a 
tangible, satisfactory and instantly available basis of adjustment should a loss occur. It 
establishes a sound, authoritative basis of costs and values for operating, accounting, cost 
finding, taxation, insurance and financial purposes. 



CLASSIFICATION BY INDUSTRIES 



Appraisals made by The Canadian Appraisal Company, Limited, in Canada 



No. of 
Properties 

Agricultural Implements 26 

Automobiles, Aeroplanes and parts ... 15 
Bakers, Grocers. Provisions, Biscuits, Pre- 
serves and Candies 63 

Bank Premises (including Head Offices) 745 

Beds. Mattresses 13 

Brewers, Maltsters. Distillers, Wines and 

Mineral Waters 57 

Can Manufacturers 18 

Cars (Railroad and Steel) and Materials 9 
Caskets and Undertakers" Supplies .... 9 
Chemicals, Medical and Surgical, and 

Toilet Goods 23 

Clay Products, Cement, Lime, Sand. etc. 29 

Dairies, Creameries, Farms, etc 16 

Flour Mills. Elevators, Hay and Grain 

Properties 397 

Glass, China and Mirror Manufacturers 15 
Iron and Steel Products, Electrical and 

Other Machinery 260 

Jewellers . 9 

Laundries 27 

Leather Goods, Shoe Factories and 

Tanneries 65 

Lumber and Planing Mills M5 



No. of 
Propertict 

Mines and Colileries 32 

Municipal and Government Buildingsend 42 

Plants 42 

Oilcloth, Linoleum and Shade Cloth .... 5 
Packers. Canners, Cold Storage, Abattoirs 

and Stockyards 187 

Paint, Oil. Varnish. Glue, Ink and Soap 

Manufacturers 33 

Pianos. Organs and Musical Instruments 25 

Plumbers. Steam, Gas and Water Fittings 15 
Printers, Lithographers, Publishers. 

Stationers and Office Supplies .... 60 

Pulp and Paper Plants and Products. ... 51 

Residences, Stores and Other Buildings 126 
Rope. Twine, Cordage, Wire and Cable 

Manufacturers' 9 

Rubber. Rubber Goods 32 

Shipbuilders Docks, Steamships and 

Ca noes ' 215 

Sugar, Glucose and Starch Plants 14 

Textile Plants (Cotton. Silk. Wool, Felt) 125 

Tobacco. Cigars, Cigarettes 9 

Wagons. Carriages and Parts 36 

Woodworking, Furniture, etc 96 

Miscellaneous 75 



TORONTO 

Royal Bank Building 



HEAD OFFICE, 364 University Street 

MONTREAL 



NEW YORK 
Equitable Buildii 



THI<: MONETARY TIMES 



Volume 66 



"What was done in this case was to issue 100 shares upon 
which a certain sum was paid up. These shares were ac- 
cepted; and even if the unpaid balance could not have hpen 
called in by the company by reason of the wording of the 



agreement, which gave the privilege of payment to the 
shareholders, the shareholders would remain liable to the 
creditors by virtue of the statute until the full amount should 
be paid." 



Power Developments in Canada in 1920 

Both Public and Private Enterprise is Active -Ontario Hydro-Electric Power 
Commission is Completing Huge Work at Chippawa— Quebec Streams Commission 
Assists Development in Quebec— Keen Interest in Power from Atlantic to Pacific 

By LEO DENIS, 

Hydro-Electric Engineer, Commission of Conservation 



AFTER the slight "surge" naturally to be expected in the 
transition from war to peace conditions, the supply and 
demand of hydro-electric power in Canada have become 
stabilized and are now taking a more even but surprisingly 
active gait. In many portions of the Dominion further instal- 
lations and new power developments have not yet caught up 
with the ever-increasing demand for hydro-electric energy. 
This deficiency of power has been accentuated during certain 
periods of the past year by the extremely low water conditions 
in some of our rivers. This low water may be attributed 
mainly to insufficient and uneven distribution of rainfall which, 
however, was relieved in certain cases by the use of water 
from conservation storage. This emphasizes the advantages 
to be derived by extending this beneficial practice to its fullest 
extent. The importance of our hydraulic resources has re- 
cently been demonstrated by Sir Adam Beck in connection 
with their utilization in Ontario where he states that the 
water-power development now made saves over 6,000,000 tons 
of bituminous coal per year, and it may be added that a pro- 
portional saving is effected in a number of other provinces. 

Leading Industries Require Power 

The increase in power development results naturally from 
expansion in a number of industries. In this connection the 
pulp and paper industry has probably attracted the greatest 
attention during the past year. Existing mills are adding to 
their capacity while new ones are under construction or con- 
templated, particular attraction being shown for the more 
northerly portions of the Dominion where timber berths are 
still available and water powers abundant. A large amount 
of energy is also required for electro-metallurgical purposes 
for which a total of nearly 1,500,000 horse-power is used in 
Canada and the United States, and in this connection it is in- 
teresting to note that of the total of 160,000 horse-power which 
we export to the United States a large amount is used for 
this very purpose. Among other additions to industries re- 
quiring a fairly large amount of power may be mentioned 
textiles, iron and steel manufacture, including special lines 
of machinery; rolling mills, automobiles and parts, woodwork- 
ing and furniture, while the resumption of operation in 
cement mills and other building material plants also accounts 
for additional power demand. 

The St. Lawrence Project 

One of the questions which has attracted the greatest 
amount of attention during the past year in connection with 
the combined interests of power development and navigation 
is the momentous St. Lavsrence river project. The two fea- 
tures of navigation and power production have been closely 
combined in connection ^\^th the scheme and, while the for- 
mer aspect is of much interest in transportation problems to 
many portions of Canada and the United States, the devel- 
opment of power particularly affects the provinces of Quebec 
and Ontario. 

The St. Lawrence as a primary source of hydro-electric 
energy has long been considered one of the most valuable 
assets of the world, but the magnitude of the undertaking has 
thus far retarded definite action or policy with regard to' its 



exploitation. The power portion of the river between Lake 
Ontario and Montreal, involving some 2,000,000 to 4,000,000 
horse-power, has to be considered as a whole. Consequently 
although the United States' share of the total available power 
is less than that of Canada, yet the project is an international 
one and has, therefore, to be referred to the International 
Joint Commission. This body has been conducting, at various 
centres in Canada and the United States, an extensive series 
of hearings in connection with the proposed scheme, covering 
both countries practically from the Rockies to the Atlantic. 
The physical or engineering problems have been referred by 
the commission to an international board of engineers who 
are shortly to report on this phase of the undertaking. But 
even greater difficulties present themselves from an economic ' 
aspect. Now that the Niagara plants are using all the water 
permitted by treaty the value to eastern Ontario and western 
Quebec of the St. Lawrence power is greatly enhanced, and 
it must not be forgotten that errors of judgment and ill-ad- 
vised concessions would have disastrous consequences to this 
portion of the Dominion. 

Ontario 

The outstanding feature of power development in Ontario 
is the rapidly approaching completion of the enormous Chip- 
pawa development of the Hydro-Electric Power Commission. 
This plant is to use the maximum available head in the Niag- 
ara river and will utilize 305 feet as compared with an aver- 
age of about 165 feet in the other Niagara plants. The im- 
posing size of the undertaking is evidenced by the five 50,000 
horse-power units which are now under contract, while the 
proposed ultimate installation is to comprise ten of these, or 
a total of 500,000 horse-power. The permanent works of the 
development are designed for the latter capacity, which 
would unquestionably make it the largest water-power plant 
in the world. 

A certain amount of uneasiness has been created by the 
temporary shortage of power at Niagara, but this should not 
be taken as a continuing difficulty. In fact it was due, to a 
large extent, to more or less superficial causes and not to 
fundamental physical limitations. Instead of extending the 
present developments, which are relatively inefficient, it was 
judged that the time was ripe for a more efficient utilization 
of the possibilities afforded by undertaking the project now 
nearing completion. Actual construction began in 1917 and 
was then intended primarily as a war measure to produce 
munitions. On account of its size this development has taken 
a longer time to bring into service than might have been pos- 
sible by quicker but less efficient step-by-step extensions; 
hence the temporary shortage of supply. 

Among the other activities of the Hydro-Electric Power 
Commission may be mentioned the placing in operation of the 
3,600 horse-power plant at High Falls, near Perth; and the 
steadily progressing work on the construction of the Nipigon 
plant, located east of Port Arthur, for which the initial in- 
stallation is 25,000 horse-power, while its ultimate capacity 
will be 75,000 horse-power. The commission has also com- 
menced work on the power development at Ranney Fall, on 
the Trent river, near Campbellf ord ; the dam was already 



January 7, 1921 



THE MONETARY' TIMES 



LOUGHEED & TAYLOR, LIMITED 



CALGARY 



Cables — Attorney, Calgary 



CANADA 

Codes— Western Union, Bentleys 



LANDS 



BONDS 



„ Government 

Municipal 
Ranches School 

Calgary City Property Corporation 



INSURANCE 

General Agents for Alberta— 
British Traders Insurance Co., Limited 
Guardian Insurance Co., of Canada 
Scottish Metropolitan Assurance Co., Limited 



LOUGHEED & TAYLOR, LIMITED 

210 Eighth Avenue West Calgary, Canada 



THE HAMILTON PROVIDENT 
AND LOAN CORPORATION 



INCORPORATED 1871 



Hamilton 



.anada 



Paid up Capital, - $1,200,000.00 

Reserve and Surplus Profits, 1,280,570.59 



DIRECTORS : 

George Hope, President 
Joseph J. Greene, Vice-President 
Colonel Henry L. Roberts William A. Wood 

Stanley Mills Lt.-Col. William Hendrie 



DEBENTURES ISSUED 
DEPOSITS RECEIVED 

Executors and Trustees are authorized by law to in- 
vest Trust Funds in the Debentures and 
Savings Department of this 
Corporation. 



Office - King and Hughson Streets 

D. M. CAMERON. General Manager 



Cable Address : TOPECO 
Codes: West. Union and A.B.C. 5th Edn. 

WILLIAM TOOLE CEO. L. PEET K. F. A. GRABURN 
H. S. JONES A. J. TOOLE 

TOOLE, PEET & CO. 

LIMITED 
Financial Agents 

Appraisers and Valuators Private Funds Invested 
Estates Managed 

Calgary Townsite Agents 

Canadian Pacific Railway Co. 

Investment Managers for Alberta 

Imperial Life Assurance Co. of Canada 
Commercial Union Assurance Co., Limited 
Edinburgh Life Assurance Co. 

Agents for 

Alliance Assurance Co., Limited 

British America Assurance Co 

Commercial Union .Assurance Co., Limited 

Home Insurance Co. of N.Y. 

Insurance Co. of North America 

Ocean Accident and Guarantee Corporation 

Royal Insurance Co., Limited 

Scottish Union and National Insurance Co. 

Canadian Surety Co. 

Lloyds Agents (London). 

CALGARY, ALBERTA, CANADA 



THE MONETARY TIMES 



Volume 66 



built in connection with the Trent Canal system, and the 
power plant, which is to be ready in 1922, will have a capacity 
of 10,000 horse-power and be an addition to the seven power 
plants already supplying the Central Ontario system. A 
number of conservation storage reservoirs have also been 
completed by the commission in connection with their Nipis- 
sing hydro-electric plant. 

Much progress by private interests is also noted in this 
province. A new 14,000 horse-power plant, with 28,000 horse- 
power ultimate capacity, has been placed in operation at 
Chaudiere Falls, Ottawa. This plant forms part of the sys- 
tem supplying electric energy to Ottawa and Hull and to the 
nickel and copper refinery at Deschenes, Que., while a 4,000 
horse-power hydro-electric plant is contemplated at Cornwall 
in connection with the textile industry. Northern Ontario 
has been particularly active during the past year. A 2,000 
horse-power hydro-electric plant has been completed near Elk 
Lake, Ont., the power being used mainly for mining. Other 
plants under construction include 2,000 horse-power on the 
Blanche river near Phiglehart; 25,000 horse-power for the 
Abitibi Pulp and Paper Company; 9,000 horse-power for a 
pulp and paper mill at Kapukasing, west of Cochrane; while 
contemplated developments for mining include 5,000 horse- 
power at Indian Chute on the Montreal river, and another on 
the Kamiskotia river west of Timmins. 

Quebec 

While the province of Quebec has no public undertaking 
corresponding to the Hydro-Electric Power Commission of 
Ontario, much incentive and assistance is given to water- 
power undertakings through the acti\-ities of the Quebec 
Streams Commission. The aim of this commission is mainly 
to improve water-power conditions through water conserva- 
tion, storage or otherwise, thus greatly increasing the possible 
water-power available at various sites, thereby rendering 
them more attractive. The activities of the commission in- 
clude water conservation storage reservoirs already con- 
structed and in operation on the St. Maurice, St. Francis and 
Ste. Anne de Beaupre rivers, and surveys for future work on 
the Chaudiere river, on Lake St. John to increase the flow 
of the Saguenay river, and on Lake Kenogami. The work 
includes the study of possible power sites in the settled dis- 
tricts and also in the northern regions, including the rivers 
of the Abitibi and the north shore of the St. Lawrence. 

■\\niile the great bulk of power development in this prov- 
ince is under private enterprise, there are also a few devel- 
opments operated under municipal ownership, and a move- 
ment is reported to have recently been initiated by the Union 
of Municipalities in the province to consider the question of 
water-power development directly by the government, it being 
felt that such further development is of material importance 
to the progress of the province. 

Important additions are reported to be in pi-ogress at a 
number of large hydro-electric plants, such as Cedars on the St. 
LawTence, and Shawinigan and Grand'mere on the St. Maurice. 
These extensions aggregate an additional capacity of 130,000 
horse-power, while a development of 150,000 horse-power is 
under consideration at Les Ores falls on the St. Maurice river. 
The city of Montreal has recently contracted for a large block 
of power to operate its new electric waterworks pumps, the 
maximum being 15,000 horse-power. The first part of the 
work in electrifying the harbor railway has been completed; 
the total trackage is 58 miles, involving an ultimate capacity 
of some 4,000 horse-power. A new 800 horse-power devel- 
opment to operate rubber works has been completed on the 
North river at St. Jerome, while new developments or expan- 
sions now under construction comprise an addition of 2,600 
horse-power at Deschambault; 2,000 horse-power at St. Ra- 
phael: 4,000 horse-power at Magog in connection with textile 
works; and 600 horse-power at Lachute. Among the devel- 
opments which are contemplated for the near future may be 
noted an additional hydro-electric plant of 11,000 horse-power 
capacity to be constructed at Westbury for the city of Sher- 
bi'ooke; a 500 horse-power plant on the Chaudiere river for 
the municipality of Megan tic; .3,000 horse-power for a pulp 
and paper mill at Portneuf ; a 20,000 horse-power installation 
is also under consideration for the latter industry in the Lake 



St. John region, and one, also of large size, at Chelsea on the 
Gatineau river; while a number of other projects of the same 
character have also been under study on some of the other 
northerly rivers. 

Maritime Provinces 

Unusual activity is to be noted in power development 'n 
the maritime provinces, where hydro-electric installation and 
operation under provincial government control seem to have 
made a firm beginning. The Nova Scotia Power Commission 
has a 15,000 horse-power hydro-electric development under 
construction on the Northeast and Indian rivers to supply 
Halifax, and it is expected that a portion of the energy will 
soon be available. The newly-created New Brunswick Hydro- 
Electric Power Commission has also sho%vn much activity and 
its initial operations have taken a concrete form. This com- 
mission, which was created with a similar object to the one 
rn Nova Scotia, promises to be most useful to power and in- 
dustrial development, its work comprising the actual construc- 
tion of hydro-electric projects for the supply of electric en- 
ergy. Two important developments are being undertaken in 
connection with which, it may be noted, comprehensive stor- 
age possibilities will also be utilized; one project comprises 
an installation of some 9,000 horse-power on the Musquash 
I'iver to supply St. John, and the other an installation of some 
8,000 horse-power on the Shogomoc river to supply Frederic- 
ton. It is expected that these plants will be in operation by 
the end of 1921. Other possibilities which the New Bruns- 
wick Hydro-Electric Power Commission has in \-iew for future 
requirements include installations ranging from 8,000 to 15,- 
000 horse-power on the Lepreau, Maguadavic, Pokiok and 
Tetagouche rivers. 

Further progress in power development in New Bruns- 
wick includes the addition of some 2,400 horse-power to the 
hydi'O-electric plant at Aroostook Fall; while the Bathurst 
Lumber Company are completing a 13,500 horse-power hydro- 
electric plant on the Nipisiquit river to operate their pulp 
mill and saw mill. A 6,000 horse-power development is pro- 
posed at 'Uliite Rapid on the Miramichi river, and attention 
has again been called to the desirability of utilizing the Grand 
Fall on the St. John river. In connection with the last named 
the provincial government is reported to have threatened to 
expropriate it from the present owners and to transfer it to 
others who would develop the power immediately. 

In Nova Scotia a number of smaller hydro-electric plants 
have been placed in operation, among which may be mentioned 
one of 600 horse-power for Wolfville, 200 horse-power for 
Berwick, and another to supply Barrington. 

Prairie Provinces 

Provincial hydro-electric transmission lines for Winnipeg 
river power are being steadily extended in Manitoba. The 
line to Portage la Prairie has been completed and further ad- 
ditions are planned, an expenditure of over $500,000 having 
been authorized. Two hundred reeves are reported to have 
petitioned the provincial government to extend these hydro- 
electric transmission lines to the southern portion of the prov- 
ince. The Winnipeg municipal plant is adding three units 
aggregating some 20,000 horse-power. An oil-engine electric 
plant of 240 horse-power capacity is under construction for 
Virden, and the development of water-power at Curry Land- 
ing on the Assiniboine river to supply Brandon has again been 
under consideration. 

Among the installations in progress in Saskatchewan 
may be noted a 7,000 horse-power steam turbine addition to 
the Saskatoon municipal electric plant, and a small oil-engine 
electric plant for the municipality of Nokomis. 

The production of cheap power is exciting much interest 
in Alberta. The Associated Boards of Trade of the province 
have made representations to the Alberta government and 
have urged its extreme importance. 

British Columbia 

The resumption of greater activity in power development 
is noted in British Columbia. A 300 horse-power hydro-elec- 
tric plant has been placed in operation at Squamish north of 



January 7, 1921 



THE MONETARY TIMES 



WE HAVE 



CANADIAN GOVERNMENT 

Municipal, Railway & Industrial 

BONDS 

AT PRICES TO GIVE EXTRAORDINARY RETURNS 



Money is now so high in price that bonds of the very 
highest class can be bought at bargain prices giving abnor- 
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ALLAN, KILLAM & McKAY, l 



364 Main Street 



BOND DEALERS 



IMITED 



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THE 



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E. E. HALL. Pres. 

VV. P. RILEY, Vicc-Pres. 



J. S. LOUDON. >Vicc-Pres. 
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Correspondents 

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THE MONETARY TIMES 



Volume 66 



Vancouver, while in the interior an important power line ex- 
tension has just been completed to supply the Copper Moun- 
tain mines with energy from Bennington Falls. A 500 horse- 
power hydro-electric plant which will have an ultimate capa- 
city of 1,500 horse-power is under construction for mining 
operations near Alice Arm, and a 125,000 horse-power plant 
is contemplated on the Bridge river near Lillooet. 

Future Expansions 

Considering the power situation over the entire Dominion, 
while there has been a temporary shortage in certain locali- 



ties, this may be interpreted to a certain extent as a healthy 
sign of growth and not with alarm, since the primary re- 
sources which may be made available in order to satisfy the 
demand have by no means yet been exhausted. This condi- 
tion, however, should serve as a warning note for the future. 
Hydro-electric expansion has been remarkable in Canada, the 
present installation being over ten times what it was in 1900, 
and future prospects point to correspondingly rapid progress. 
But this progress can only last until all our hydraulic re- 
sources have been developed, and their exploitation should, 
therefore, be most carefully and efficiently guided. 



Railways Have Passed Worst Difficulties 

Substantial Increase in Rates Was Feature of 1920— Fall in Commodity Prices 

Make Rates Seem Higher— How Soon Can Operating Expenses be Brought 

Down ?— The Amalgamation of the Grand Trunk With the Canadian National 

By GEORGE W. AUSTEN 



fTTHE year 1920 will be classified in Canadian railway history 
A as one in which the steam railways reached the peak of 
their economic difficulties. It will also be notable for the 
operating consolidation of the Grand Trunk Railway with the 
National Railways following the acceptance in March by the 
Grand Trunk shareholders of the government's proposals 
for the purchase of the road. Thus the national railway 
system came, during the year, to embrace an operating mile- 
age of about 22,000, and the consolidation left Canada with 
only two great transportation systems, thereby simplifying, if 
not lessening, the acute problems yet to be solved. 

Large Rate Increases Granted 

The granting of the large increases in freight, passenger, 
sleeping car and excess baggage rates by the Railway Com- 
mission in August alone saved both the Canadian Pacific and 
the National Railways from an alarming financial showing 
for the year. In the previous year the National Railways — 
then consisting of the Canadian Northern, Transcontinental, 
Intercolonial and Grand Trunk Pacific — showed a deficit cf 
$47,000,000. Had it not been for the increases in rates th's 
■would have been enlarged in 1920 to at least $75,000,000. 
The wages increase that had to be granted in 1920, follow- 
ing similar increases in the United States, would have brought 
the operating expense ratio of the old Canadian North orn 
system up to 134 per cent. But the Railway Commission 
saw fit to grant 40 per cent, additions to eastern freight 
rates, 35 per cent, to western freight rates, 20 per cent, to 
eastern and western passenger rates up to 4 cents a mile, 50 
per cent, on sleeping and parlor car rates, 20 per cent, on ex- 
cess baggage, with exceptions made in the case of coal, gravel 
and milk. This rate of increase applied to the end of the 
year, and beginning with 1921 a reduction of 5 per cent, is 
made in freight rates, and 10 per cent, in passenger fares. 
On July 1 next passenger fares go back to the old basis, and 
the freight rates question will then come up for revision in 
the light of conditions as they then exist. 

Public Opposition Was Strong 

The reasons for granting increase involving an extra 
burden of more than a hundred millions on the people of Can- 
ada had to be very strong. The unpopularity of the award 
led to a forceful appeal to the government, and the decision 
was referred back to the commission. As this was late in 
November, and the peak rate of increase ended at the New 
Year, no change was to have been expected. Indeed, Chair- 
man Carvell had made out a case on which he could rest and 
let time work out his vindication. 

The finances of the C. P. R. were, by common consent, 
taken as a standard by which Canadian railw-ays were to be 
judged as regards their rate needs. They had, during the 
war, received increases totaling 35 per cent, but costs had 



gone up at least 100 per cent. The operating ratio of the 
C. P. R. in 1916 had been 63.87 per cent.; in 1917, 70.01 per 
cent.; in 1918, 81.19 per cent., and in the six months to June 
30, 1920, 87.58 per cent. In July it was 91.43 per cent. This 
rapid rate of increase had been duplicated in the case of the 
Grand Trunk. In the year to December 31, 1919, the ratio 
was 87.43, and in the six months ending June 30, 1920, it was 
99.97 per cent. In the case of the old Canadian Northern 
system the ratio for the first six months of 1920 was 117.61 
per cent. These figures show how fast expenses were out- 
stripping revenue and leaving the railways unable to pay 
fixed charges except out of reserves or capital. 

Reserves Should Not Be Drained 

In the case of the C. P. R. counsel for the western pro- 
vincial governments argued that the system had reserves of 
$317,000,000, but they did not allow for the fact that $160,- 
000,000 of this was land which had not been sold, and could 
be sold only piece by piece. Money had been borrowed 
against this land and $52,000,000 is due in 1925. The prin- 
ciple that the C. P. R. should not be called upon to cripple 
itself financially by exhausting reserves to pay current deficits 
was asserted by Chairman Carvell, who emphasized the im- 
portance to Canadian credit of sustaining the position of this 
premier Canadian security. The financial statement of the 
C. P. R. showed a surplus after usual dividends of $844,249 for 
the year ending December 31, 1919. The wages increase for 
1920 was estimated at $14,822,000 — a rate of $22,000,000 a 
year — which would have wiped out dividends and left a large 
deficit. It was estimated that the original 30 per cent, in- 
crease asked for by the railways would have left a deficit of 
$10,000,000 after the wages increase, and therefore the extra 
10 per cent, on freight, the 20 per cent, on passenger rates, 
etc., was authorized. Seeing that the increases would be in 
effect only four months for the year, while the wage increase 
was retroactive to May, even then a small deficit was looked 
for, but a surplus would result in 1921 that would offset the 
loss. 

Will Still Be Deficits 

What will be the result of the rates increase on the 
finances of the Grand Trunk and the National Railways ? No 
statistics on this subject were taken into consideration by the 
Railway Commission in making the judgment, because if the 
C. P. R. got only enough increase to enable it to maintain a 
rate of earnings sufficient to cover dividend requirements, 
plus usual upkeep, the other railways could not be expected 
to get on with less. If rates had been made on a basis to 
make them self-sustaining they might have been doubled at 
one stroke. Premier Meighen did not hesitate to tell west- 
em audiences that the freight rate increases would not en- 
able the National Railways to pay their way, and that annual 
grants by Parliament to make up the difference would prob- 



January 7, 1921 



THE MONETARY TIMES 



157 



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PROVINCE 




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ALBERTA 



ALBERTA 

ASSETS. 

Public Buildings (includins: Stock Advance). $ 8 

Bridges 2 

Trunk Roads and Bridges thereon 3 

Roads, District and Local 

Demonstration Farms 

Telephone Plant, Stock, Tools, etc 11 

Ferries 

Provincial Police — Buildinirs and Equipment 

Loans to Creameries 

Loans to United (Jrain Growers, Ltd 1,1 

Advances to School Districts 

Advance to Central Canada Railway — amount 
due 

Advance to Liquor Vendors 

Lacombe & North Western Railway — Loan, 
etc 

University of Alberta — Loan 

Kinff's Printer's Advance 

Advances — School Libraries. School Sup- 
plies, etc 

Advances — Miscellaneous < including Drousrht 
Relief) 

Advances to Normal School Students 

Loans to Alberta Returned Soldiers' Aid 

Lacombe and North Western Railway Shares 

Taxes on Forfeited Lands 

Surveys 

Deferred Revenue 

Miscellftneous 



5 FINANCIAL POSITION 

Deposit (in lieu of debt) in hands of Do- 

465 6^169 minion Government $ 8.107.500.00 

i825;412;28 Deposit (School Lands Fund) 4.888.000.00 

sia'«;n\i Deferred and overdue payments of Principal 

3205409 "" School Lands 6,716.720.37 

ta^'aniKr. Unsold School Lands, 6,928,869 acres at 

IVdllf* $12.00 per acre 83.146.428.00 

*54;i29!04 Total $138,340,082.45 

OuTsull LIABILITIES. 

53.207.83 Total Bonded Debt » 34,635.200.00 

Less Sinking Fund 980,623.28 

000.000.00 

17.000.00 Net Bonded Debt as at December 31st, 1919. { 33,664,576.72 

(Includini; $16,000,000 self-sastainins: invest- 
523.151.16 ments.) 

2.500.00 ContinKent Liability on Railway Guarantees 

41.762.42 (Total Provincial Liability) • $60,748,500.00 

Less C.N.R. and C.N.W. Railways (Purchased 

25,810.14 and operated by (Jovernment of Canada 

under Canadian National Railway Sys- 

249,923.57 tem) 36.066.000.00 

28,971.00 

$ 24.682.500.00 
15.000.00 Less G.T.P. (under aKreement of purchase 

1,975.35 and operation by Government of Canada 

23.274.09 under Canadian National Railways Sys- 

961.762.72 tem) 4.182.500.00 

528,780.06 

133,037.50 S 20,500.000.00 



Ajrriculture. 

Embraced in the Province arc 161.872.000 acres of which it 
is estimated 1,510.400 acres are covered by rivers and lakes. 
leavinK 160.361.600 acres »t land. Allowiner approximately 60.- 
000.000 acres for the rouKh land of the eastern slope of the 
Rocky Mountains, other mountains and hills, together with 
certain waste acreage in some small sections of the Province 
not suitable for cultivation, leaves at least 100.000.000 acres 
available for cultivation. Durinir the year 1919 more than 
8,000.000 acres were actually in crop and the estimated value 
of farm products for that year was $119,583,321.89, details of 
which are included in the foUowinjr statement; — 









Yield 








Acres 


Bushels 


Per Acre 


Price 


Revenue 


Spring Wheat. 


4,241,903 


33.936,224 


8.00 bus. 


$1.88 


$62,101,459.92 


Winter Wheat 


40,600 


639.450 


16.76 •• 


1.95 


1,246.927.60 


Oats 


2.767.372 


55.725.085 


23.76 " 


0.64 


42.064.054.40 


Barley 


414.212 


10,662.406 


25.50 " 


1.86 


19,646.075.16 


Flax 


80.690 


221.897 


2.75 " 


4.15 


920.872.55 


Rye 


83.804 


1,173.266 


14.00 •■ 


1.42 


1.666.023.52 


Mixed Grains. 


26.000 


942.500 
Tons 


36.26 " 


0.88 


782.275.00 


Hay and Clover 


483.296 


476.626 


1.10 tons 20.89 


9,956,717.14 


Fodder Corn . 


900 


5.022 


6.58 " 


10.60 


52.731.00 


Alfalfa 


21.553 


43.106 
Bushels 


2.00 " 


29.16 


1.256,970.96 


Potatoes 


45.848 


8,241.178 


179.75 bus. 


0.83 


6,840.177.74 


Turnips, etc. . . 


12.500 


2.768,750 


221.60 •■ 


1.06 


2.934.875.00 


Peas 


1.603 


28.854 


18.00 " . 


3.00 


86.662.00 


Beans 


690 


6.900 


10.00 " 


4.00 
$ 


27,600.00 




149,583.321.89 



Animals slaughtered and sold $50,000,000.00 

Dairv Products 31.625.000.00 

Wool Clip (2.114,819 lbs.) 1.268.591.40 

Came and Furs 2.250.000.00 

Horticulture 200,000.00 

Poultry and Products 5.000.000.00 

Total $239,926,913.29 

Total acres (Grain). 1919. 7.654,681. 



Coal Industry. 

For the first time in the historj- of Canada, Alberta's coal 
production in the year 1918 led all the other Provinces. 

The following statement shows the production in 1919 :— 

Domestic 2.611.009 tons $ 9,791,283.75 

Bituminous 2.325,787 " 8,721,701.25 

Anthracite 85,616 " 385,272.00 

Briquettes 70,033 " 456,214.50 

Coke 

Total Value ; , $19,353,471.50 



Wool Production. 

The Province of Alberta is now rapidly approachiner a 
premier position in the production of wool. There has been an 
enormous increase in the number of sheep during the last 
decade. 

The following statement shows the results for the last four 
years : — 

1916 1917 1918 1919 

No. of pounds 

handled . . . 2,048,340 2,086.633 2.600,000 2,333,819 

Price realized, 

cents .30% .57 .60 .60 

No. of pro- 
ducers 950 1,150 1.088 1.132 

Value $624,748.70 $1,189,380.81 $1,500,000.00 $1,400,291.40 

Dairying. 

"In creamery butter production Alberta has now third place 
among all the provinces of Canada, first and second place being 
held by Quebec and Ontario respectively. Of the four western 
provinces. Alberta w!is in 1919 the leading dairy province, 
although in third place in 1915. The butter output in 1919 was 
$10,500,000 and the total value of Alberta dairy products in the 
same year amounted to well over $31,000,000. As the result of 
the standardization of our creamery butter, wider and more 
appreciative markets have been secured for it. During the past 
year, substantial quantities were shipped to the large markets 
in both eastern and western Canada, and to the United States 
and Europe." (Extract from Budget Speech of Hon. C. R- 
Mitchell, delivered March 19th, 1920.) 



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158 



THE MONETARY TIMES 



Volume 66 



ably still be required for many years, until growth of traffic 
on the system would increase the earnings relatively to the 
amount of fixed charges. In 1919 the net operating deficit of 
the National Railways, not including the Grand Trunk, but 
including the Grand Trunk Pacific, was $14,117,000. On the 
same basis of traffic, but with coal and other supplies and 
wages up by 30 per cent., the operating deficit for 1920 would 
have been $35,000,000 at least. 

Economic Movements Aflfecting Traffic 

This review of the financial position of the Canadian lead- 
ing railways is necessary to an appreciation of the critical 
position in which they were placed during the year. What 
the future holds may be rather doubtful, because there are 
many influences at work darkening their future. The growth 
of the farmer movement, for instance, with its threat of a 
north-and-south trade instead of a trans-Canadian haul, be- 
gan to hang over the railways. The business slow-up that 
began to show itself in the last half of the year reduced ton- 
nage handled, and unless business picks up in 1921 earnings 
may show a decrease. Like everything else in the inflated war 
period, the dollar volume of gross earnings grew much larger, 
and a contra^'tion is inevitable with the lower price of commo- 
dities. The drop of grain prices in the crop season made 
freight rates seem relatively excessive. The farmer who 
could get only $1.75 or $1.60 for his wheat, and had to pay 
40 cents to get it marketed would rightly deem his cost far 
too heavy. 

Can Operating Costs Be Reduced? 

The great problem of the Canadian railways, as well as 
the United States railways, wjll be, in 1921, as farther ahead, 
the reduction of costs in accordance with commodity values 
and the trend of coirunercial wages. As the minister of rail- 
ways said in his annual report last winter for the National 
Railways, the average wage on the system had risen from 
ahout $700 to nearly $1,500. The new increases of the year, 
forced by American unions, will bring the average up to 
about $1,800. The average wage of the Canadian manufac- 
turing industry is not more than $1,000. Granting 
that the railways employ a much larger percentage of skilled 
men, and that the average ought to be much higher, it can 
be easily shown that railway rates of pay have been hoisted 
out of proportion. If they are reduced as other values come 
do\^-n and permit of rate readjustments downward the rail- 
way service will be a help to Canadian development, other- 
wise it may be a drag on our expansion. 

Rates in Other Countries 

In one of his arguments on the subject of rate increases 
President Hanna quoted the ton-mile costs and increases in 
many other countries. This showing was: — 

"England — Passenger fares increased 50 per cent.; 
freight rates increased 25 per cent, to 100 per cent.; average 
freight increase, 71 per cent. 

"France — Passenger rates increased 70 to 80 per cent., 
freight rates about 140 per cent. 

"Belgium — Freight and passenger rates increased about 
100 per cent. 

"Italy — Passenger rates increased 60 to 120 per cent., 
freight rates 40 to 100 per cent. 

"Holland — Passenger rates increased 75 per cent., freight 
rates from 70 to 140 per cent. 

"Sweden — Passenger rates increased 100 per cent., 
freight rates 200 per cent. 

"Norway — Passenger rates increased 60 to 180 per cent., 
freight rates 150 per cent." 

Wage Increases Were Large 

These comparisons from Europe are not, however, fairly 
applicable to the case of the Canadian railways. If the 
McAdoo award in 1918 had not started the railway unions on 
the warpath after continuous large increases costs here might 
have been better controlled in view of the remarkable expan- 
sion of tonnage handled during the war. Canadian railways 
handle only a small fraction of freight tonnage per mile com- 
pared with the United States railways, and as a whole cannot 



be made to pay until traffic is thickened by a larger settle- 
ment. Though the average ton-mile rate in Canada com- 
pares favorably, even at the height of the new charges, with 
that in almost any other country, the long distances goods have 
to travel in Canada puts an enormous burden on the people. 
In 1919 the gross earnings of the Canadian railways were 
$382,000,000 — that is, $50 per head for every man, woman 
and child, or perhaps $200 per family. The cost of what the 
farmer has to buy is enhanced too much by large freight bills, 
and his receipts lessened too much through the same method. 
If, as seems likely, the new Republican congress puts back on 
the dutiable list the food products made free by the Wilson 
influence the exporters of Canadian grains, animals and other 
natural products will have a severe set-back, or must rely 
more and more on overseas exportation. This means that 
prices will be put on an international competitive basis in 
which the products of countries where costs and standards of 
living are much lower will meet ours in competition. Under 
circumstances such as these to maintain our agriculture and 
make it grow railway costs may have to be revised, because 
the export production of the country will not be able to ab- 
sorb the excessive charges. 

Grand Trunk Management 

Problems like these belong to the future, but they take 
their rise in conditions thoroughly exemplified in 1920. Such 
developments as the taking over of the Grand Trunk Railway 
will permit of future economies in operating. The govern- 
ment agreement provided for the appointment of a board of 
management on acceptance of the offer by the shareholders. 
This board was to consist of two Grand Trunk representatives, 
two government representatives, ' and a fifth chosen by the 
four. This provision was no sooner carried out than changes 
in schedules of freight and passenger trains, ticket selling 
and other services were made, to eliminate overlapping. 
President Hanna admitted that the real benefits of the amal- 
gamation would be derived only after the Grand Trunk was 
fully incorporated in the National system. 

At present the board of arbitrators to fix the value of the 
guaranteed and preference stocks of the Grand Trunk is work- 
ing out a valuation for the system, and until that is done and 
the government makes the exchange of new stock and calls 
in the old, the formal incorporation is delayed. But early in 
the year the Grand Trunk Pacific was taken over, the minis- 
ter of railways being receiver. Early in 1921 the 9,000 miles 
of the Grand Trunk system should become part of the National 
system in fact, and Canada then will have completed its gigan- 
tic venture in public ovniership and operation of railways. 

National System Has Bad Start 

Beginning with such a handicap as is inherent in operat- 
ing a group of semi-bankrupt railways the National Railways 
board must necessarily meet many advei'se conditions. Chair- 
man Hanna issued an order during the year that no employee 
of the National Railways should accept political nominations, 
and several candidates for pro\'incial seats were let out be- 
cause they violated the rule of no active participation in poli- 
tics. This endeavor to keep the system, with its thousands of 
employees, out of politics, is only one of many the manage- 
ment must make to preserve the cohesion of its working force. 
Appeals by the management for the same efficiency as is re- 
quired by a private corporation such as the C. P. R. have not 
been infrequent, but the lines have not been operated long 
enough for the supcess or non-success of the experiment to be 
established. 

Promise of Development 

The splendid thing about our present situation is that 
we have a railway plant capable of serving 20,000,000 people, 
with small extensions. We are paying heavily for this now, 
but we should get dividends from it annually in extra busi- 
ness through the large settlement and expansion this accom- 
modation makes possible. Canada is blessed with a high- 
class railVay service at rates that still are comparatively 
low, and if future conditions are handled with skill and fore- 
sight there seems no reason why the grave defects revealed 
during 1920 cannot be remedied under happier circumstances 
in the vears to come. 



January 7, 1921 



THE MONETARY TIMES 



159 



The British Columbia Permanent Loan Co. 

Paid-up Capital, $925,000,00 Reserve, $600,000.00 

Total Assets, $2,908,445.00 



DIRECTORS AND OFFICERS 

DAVID H. WILSON, M.D., President W H MALKIN, Vice-President 

Chris. Spencer A. H. Douglas 

Robert Gelletlv George Martin 

R. J. Robertson 

Albert Whittakkk, Inspector James Low. Secretary-Treasurer 

T. D. MACDONALD, General Manager 



6 per cent, on Debentures 3 or 5 Year Periods 

A General Agency Business, including Real Estate, Property Management, 
Bonds, Investments, Insurance, etc., conducted by 

The British Columbia Permanent Agencies Limited 

(Owned and controlled by The British Columbia Permanent Loan Co.) 

Correspondence invited. 

Head Office : : : 330 Pender Street West, VANCOUVER, B. C. 



Invest for Safety ! 

CANADIAN OOVERNMENT 
MUNICIPAL & SCHOOL BONDS 

Yielding 51% to 7^% 

Canadian Government and properly selected Municipal and School 
" E 1 Bonds are exceptionally sound investments. Constantly in touch with 

WOULD the market, as we are, we can acquire most favorable issues for our 

APPRECIATE clients. 

YOUR Write for our list of offerings, the returns on which — at present 

INQUIRIES prices — are exceptionally high. 

PRIVATE LEASED WIRES FROM EDMONTON TO ALL THE IMPORTANT 
STOCK AND GRAIN EXCHANGES. SO THAT WE CAN GIVE QUICK 
SERVICE ON ALL MARGINAL BUSINESS. 

W. Ross Alger & Company 



INVESTMENT 
BANKERS 



Bank of Toronto Building 
Royal Bank Building 



Edmonton 
Calgary 



160 



THE MONETARY TIMES 



Volume 66 



CANADA'S COMMERCIAL BALANCE SHEET— Imports 

<'OI\ AM> KILLIOX KXI'LlltKI* 

{Compiled Jor THE MONETARY TIMES by the Dominion Bureau of Statistics.) 





COUNTRIES 

(Fiscal years ended 

March 31st) 

IMPOKTS 

British Ehhibe 

Jnitcd Kingdom 


1917 1 


1918 1 


1919 


1920 1 






Dutiable 

$ 

75,604,932 

9,102 

68 

18,604 


Free 

S 
31.591.652 


TOTAIiS 


Dutiable 


Free 


rOTAiS 


Dutiable 


Free 


rOTALS 


Dutiable 


Free 


TOTALS 

126,362,631 

8,262 

735,948 

174,928 

55,604 

7,785,254 

3.168.132 

5.269.180 

13.846 

7,412,931 

302,043 

12,114,790 

10,271 

3,208,836 

1,547 

2,146,414 

1,371,775 

3,494,600 

714,306 

139 

282 




w 


107,096,584 

9,102 

68 

221,476 


58.047,170 
1,318 


23,277,113 


81,324,283 
1,318 


50,008,008 


$ 
23,0'27,110 


s 

73,035,118 


$ 

93,244,969 


33,117.662 


1 














8,202 

10,412 

49.700 

38.481 

5,831,932 

2,279,294 

410,849 

9,166 

7,047,053 

' 7,350,219 

4,926 

1,468,145 

1,547 

23,460 

311,242 

565,659 

714,146 




3 


9; 
10 

isi 


- British South 


202,872 


7,639 

1,298 

13,891 

4,090,199 


545,723 

14,182 

71,049 

5.265,394 


553,362 

15,480 

84,940 

9,355.593 


10,789 


1,289.470 

7.757 

36.048 

972.977 

1,279,188 

4.613.884 

10.677 

16.827 

298.906 

4.552.024 

9,315 

l,007,ri2 


1 ,300,259 

7,757 

39,056 

8,395,290 

1.734.894 

5,081,663 

11,587 

6,747.072 

298,906 

8,437.825 

16,073 

2,121,909 

611 

3,098,834 

4,963,446 

7,855,436 

■525,804 


725.536 

125.228 

17,123 

1,953.322 

888.838 

4,858.331 

4,680 

365,878 

302,043 

4,764,571 

5,345 

1,740,691 


4 
5 


Bermuda 

J. Indies— Brit. Ind... 


202 
3.789,916 


12,103 
1,135,966 


12,305 
4.925,882 


3,008 

7,422,313 

455,706 

467,779 

910 

6.730,'245 


6 
7 
S 


Straits Settle 

Other East Indies 

ritisn oil 


282,732 

101.066 

7,188.015 


558,463 

1,031.640 

4,878 

1,065,953 

2.541,896 

617 

831,017 

20 

1,140,278 

596,101 

2,135,362 


841,19.' 

1,132,706 

7,192,893 

1.065,953 

14,239,005 

11,341 

l,3a8,984 

988 

2,146.958 

762,113 

2,242,515 

831,890 

961 


338,364 

147,628 

6,708,201 


2.782,632 

3,830,009 

8,446 

352,028 

2,954,523 

2 

1,002,585 

19 

1,996,240 

2,029,959 

3,503,420 

405 


3.120,996 

3.977,637 

6.716.647 

352,028 

10,550,550 

4.927 

1,805,515 

774 

2,947.527 

2,356,66,. 

3,735,559 

1,151.369 

831 


9 
10 
11 




12 


b) British West Indies 

c) Egypt and Sudan.. . . 


11,697,109 

10,724 

567,967 

968 

1,006.680 

166.012 

107.153 

831 ,890 

961 


7.596.027 

4,295 

802,930 

755 

951,287 

326,706 

232,139 

1,150,964 

831 


3,885,801 

6,758 

1,114,787 

611 

908,678 

358,729 

1,4'24,801 

525,804 


13 
14 

15 


Malta 

Newfoundland 

Jceania— Australia 

New Zealand.... 


16 


lb 
17 
18 
19 


2,190,156 
4,604,717 
6,430,635 


2,122,9.54 

l,060,.53:i 

2,928,941 

160 

139 

■282 


17 

18 
19 
20 




Oth'rOceania 




21 


•^1 














•?.?, 




Totals, Brit. Empire.... 
Foreign Countries 


101,294,825 

6.054 
4,599 
1,390 
8.152 


42.849,435 
'2,697,472 


144,144,260 




















80,421,642 


47,633,729 


128.055,371 


73,324,7'27 


50,346,813 


123,671,540 


119,369 402 


54,982,257 


174,351,659 






6,054 

2.702,071 

1,390 

14.896 

75 






23 


24 


Argentine Republic 

Austria-Hungary 

Belgium 

Belgian Congo 


64,010 

75 

1,521 


920,945 


984,955 

75 

12,973 

16,795 


31,298 


1,107,969 


1,139,267 


180,138 
49,723 
698,435 


3,222,416 


3,402.554 
49.723 
911,407 
27,536 
20,060 

1,973.768 


24 

25 


26 


6,744 
75 


11.452 
16,795 


707 


5,563 
17,517 


6.270 
17.517 


■212,972 
'27,536 
20,060 
72,279 


•26 

•/7 










28 


29 




1,061,008 


1,477 


1,062,485 


964,556 


26,221 


990,777 


1,035,453 


120,879 


1,156,332 


1,901,489 


29 




30 




CentralAmer.States 


55,066 
189.977 


500 


55.566 
189,977 


91,304 
172,883 




91,304 
172,883 


56,810 
156,661 




.56,810 
216,101 


119,989 
183.800 


'2,009 


119.989 
185,809 


31 




Costa »<ica 




59.440 


,32 




ij 3i 




33 






93.343 

12,464 

12 

374.608 

183,778 

263,022 

5,409 

107 

4,532 

5.792,428 
140 




93,343 

12,464 

198,357 

1,128,342 

184,957 

610,807 

30,460 

107 

564 

4,532 

6,480,476 

140 


101,287 
32,900 




101.287 

32,900 

478,378 

1 ,336.89U 

187,306 

1,085,547 

14,388 


66,602 
53,964 




66,602 

53,964 

1,059,557 

1.954,466 

158.202 

3,040,953 

41,252 


12,457 

24,945 

170 

715,727 

492.437 

16,764,341 

9,208 




12,457 

24,945 

240 

1,205,229 

502,656 

17,585„528 

105,310 


34 














35 




r-u"? * 


198,345 
753,734 
1.179 
347.785 
25,051 


478.378 
848,301 
650 
505,926 
12,986 


1,059.557 
1,349,066 


70 
489,502 

10,219 
821,187 

96,102 


36 


37 


China 


488,589 

186,656 

579,621 

1,402 


605,400 

158,202 

2,430,664 

14,216 


37 
38 


39 
40 




610,289 
27,036 


39 




40 


id) Danih W. Indies..-. 

Greenl'd.IcePd.&c 

Ecuador 


41 




564 


2,835 

4,838,465 


3.433 


3,433 

2,835 

5.274.0S4 

997 

1,598 

187 

3,809 

27,181 




988 
"25i',677 


988 

284 

3,632,900 


13 

3,407 

8,351,894 


6,323 


6,336 

3,407 

10,630,865 


42 




284 
3,381,823 


43 


44 


688.048 


435.599 

997 

1,598 


2,278,971 


44 


French Africa 


45 










4,186 


4,i86 








46 




French \V. Indies 

S.Pi're&Miq'elun.... 


3',273 

11.212 


2,089 

2,920 


5,362 

14,132 


187 
1.409 
21,506 


^ 








47 


48 


2,400 
5,675 


1,812 
75 


S,'280 


7,092 
75 


3,150 
42,560 


37.147 
1,695 


40,297 
44,'255 


48 
49 




Oermany ■■■■■. 




.50 












20,294 


















51 


S2 




159,963 


509 


160,472 


2 


20,296 


33 

90,766 

349,747 

11,649,870 




33 

90.766 

555.112 

13.618,122 


722,642 

174,472 

699,034 

12,780,300 


• 7,188 


729,830 

174,472 

999,040 

13,637,287 

25 


52 






.S3 


54 
55 




871,228 
6.094,235 


355,779 
2,028.500 


1,2?7,007 
8,122,735 


527,536 
9,779,.526 


243,651 
2,475,793 


771,187 
12,255,319 


205,365 
1,968,252 


300,006 

856,987 

25 


54 


Japan 


55 
.56 




■K^''"^^ 






















57 


58 




61,179 


616,372 


677.S51 


70,650 


594,140 


664,790 


42,238 


541,809 


584,047 


705,443 


1.943,472 


2.648,915 


58 








Morocco 

Netherlands 

Dutch East Indies. . . 

Dutch Guiana 


2,647 

1,030,349 

567,987 

4.54S 




2.647 

1.234,993 

620.188 

4.54S 


548 
820,000 
69.710 
201.763 




548 

1,054,176 

2,831,642 

203,473 








2,171 

756.914 

3.210.169 

87.943 


10,286 

1,509,255 

499,231 


12,457 
2,266,169 
3,709,400 

87,943 


60 


61 
62 


204,644 
52,201 


234,176 

2,761,932 

1,710 


383,134 

2,5.57,111 

117,732 


112.275 
777.635 


495.409 

3,334,746 

117,732 


61 

62 
63 










64 


65 




238,232 
33,61- 
1,553.086 
229,84( 
20,452 


87,007 


325,238 

33,617 

1,653,290 

260,094 
20,452 


92.5.-0 
36,841 
2.343,354 
196,928 
10,628 


48,.508 

122 

18,88S 

41,492 


141,058 
36,963 
2,362,243 
238,420 
10,628 


5,970 

8,949 

2,570,392 

110,222 

7.828 


19.815 


25,785 

8,949 

2,580,813 

111,688 

7,828 


412,861 
22,306 
4,146,570 
251,286 
21,737 


48,987 


461,848 

22,306 

5.072,408 

312.912 
21,807 


65 




66 


67 
68 




100,204 
30,246 


10.421 
1.467 


925.838 

61,626 

7( 


67 


Portugal 

Azores& Madeira I 


68 
69 










70 




























"1 4,496 
10,675,287 


71 


72 




42 
3,888,80 


23,71 



24,14C 
3,888,80' 


44 
6,615,961 


8,433 


8,477 
6,615,961 


1.657 
4.728.732 


82.231 


83,886 
4,728.735 


232 
10,675,28- 


14,'264 


72 


San Domingo 












74 






14,05 
830,27 


3,70. 
79.27( 


17,764 
909,54e 


49,526 
719,498 


15,06f 
89,30b 


64,594 
808,807 


51.076 
600.035 


1.417 
97,608 


52.49; 
697,64C 





1,660 
1 98,954 

i 


1.660 

1.528,298 

568 


75 


7e 




1,429,344 
.56' 


76 




























78 


7< 
8( 


Sweden 

Switzerland 

Turkey . . .' 


58,72 

4,436,32 

24 

332,039.32 

10.09 


) 41, U 
) 63.00 

i 

1 332.180,32 
9,47 


99,83 

4.499,32 

24 

664,219,65 

19,57 


100,144 
3.000.56 


10,02( 
145,92 


110,172 
3,146,482 


77.338 
1,623,61S 


101,516 
157,193 


178.8,5. 
1,780,81' 


336,186 

7,490,79. 

230.776 

499.716.62. 

106.26. 


24,173 

267,256 

2,708 

301,380,693 

309,326 


360,35! 

7,758,05 

233,476 

801,097,316 

415.58. 


79 
80 
81 


8 


429,298,75! 
10,294 


362,607,36 
8 


791.906,12S 
10,374 


416,457,384 
52,787 


330,463,'27C 


746,920,65 

52,78- 


82 




83 








84 


8 
8 
8 
8 


Hawaii. 


54.58. 

39.89 

49 


; 1,11 

3 42 

i 4,89 

146,61 

5 18,77 


55,69 

40,32 

i 5,38 

) 146,61 

) 157,08 


30,491 

23,28. 

S IC 

) 50,48 

301,29' 


34 
* 
12 


30,84C 
23,32£ 
136 
50,48 
301,292 


3,467,326 
26. 

103,85' 
104,83 


528 

169,63 

2.46. 

'2'24,83.' 

44,324 


3,467,856 

169,89 

2,48 

328,68 

149.15 


399.92 

97 

18 

56,76 

291,87 

2,23 


3,76J 
46,03- 
1,73( 
265,31- 
7.36 
6,004 


403.68- 
47,014 
1,91( 
322.086 
•i99,24f 
8,24' 


85 
86 












Venezuela 

Other For.Countries. . . 


138,30 




89 






90 




Totals. For. Coun... 
Grand Totals 


36i).438,78 
461.733.60 


4 340.773,26 
3 383,622.69 


! 701,212.04 
7 845,356,30 


-, 461,919,88( 


372,568,49 


834,488,37. 


453,156.89r 


339,600,902 


792.7.57.79 


574,'285,76 


315,890,70 


890,176,46 






J 542,341,52' 


420,202,22 


962,543,746 


526,481,626 


389,947,71. 


916,429,33 


693,655,16 


■ 370,872,956 


1064,528,12 





(a) Ceylon included with " Other British Indies " prior to 1919. 
and Sudan shown as Foreign Countries prior to 1916. ((i) shown a 



(6) Divided into four, viz : Barbados, Jamaica, Trinidad and Tobago, and other B, W. I, (c) Egypt 
" American Virgin Islands " subsequent to 1918. 



January 7, 1921 



THE MONETARY TIMES 



THE GREAT WEST PERMANENT 
LOAN COMPANY 



HEAD OFFICE 



WINNIPEG, CANADA 



OUR RECORD GROWTH 



In 1903 

In 1919 



Capital. 
$110,295.92 

$2,413,018.81 



$27,767.21 

$1,050,000.00 



Assets 

$160,574.29 

$7,423,973.29 



BOARD OF DIRECTORS 



President 

\V. T. ALEX.^NDER 

MAJOR I). E. SPRAGUE, O.B.E. K. L.TAYLOR, K.C. S. D. LAZIER 

J. H C, RTTSSKLL W. J. BOYD DR. A. D. CARSCALLEN 

COL. The HON. A. C. RUTHERFORD, K.C. 

K. H. ALEXANDER, Secretary 



BRANCHES AT 

TORONTO, CALGARY, EDMONTON, REGINA, VANCOUVER, VICTORIA 

LONDON, ENC, EDINBURGH, SCOT. 

SHORT TERM DEBENTURES ISSUED TO YIELD 5ii 



WM. MARTIN 



S. P. CLARK 



Clark & Martin 

STOCK & BOND BROKERS 

Direct Private Wire New York, Chicago, 
Montreal, Toronto 



Members 
Winnipeg Grain Exchange 
Chicago Board of Trade 
Winnipeg Stock Exchange 



Correspondents — 
LOGAN & BRYAN, GREENSHIELDS & CO., 

New York. Montreal. 



Huron and Erie Building 

232 Portage Avenue - WINNIPEG, MAN. 



BROOK & ALLISON 



Established 1907 



Real Estate, Loans and Insurance 
REGINA, SASK. 

ESTATES MANAGED. 

VALUATIONS 
RENTS COLLECTED 



REFERENCES: 
Sterling Bank of Canada 
R. G. Dun & Co. 
Bradstreets. 



Money Invested on First Mortgage 



THE MONETARY TIMES 



Volume 66 



CANADA^S COMIMKRCIAL BALANCE SH EET— Exports 

«'«»l\ A>'l> KIILMON E\€LI ItKIt 

(Compiled for THE MONETARY TIMES by the Dominion Bureau of Statistics). 





C(.)UNTU1ES 

ll-iscal years ended 

MarchSlst) 

KX POUTS 


Canadian 
Produce 


1917 




1918 




1919 




1920 






Foreign 
Produce 


TOTALS 


Canadian 
Produce 


Foreign 
Produce 


TOTALS 


Canadian 
Produce 


Foreign 
Produce 


TOTALS 


Canadian 
Produce 


Foreign 
Produce 


TOTALS 




1 

2 
3 
4 

5 
6 
7 
8 
9 
10 


British Empire 
United Kingdom 


$ 

742.147,537 

6,769 

25,799 

4,447,802 

268,728 

584,577 

1.094,046 


s 

13,923,522 


«■ 

7.%.071.059 

6.769 

25,799 

4,452,939 

268,728 

601,446 

1,098,356 


% 

845,480,069 

2.285 

54.232 

5.065.658 

69.226 

814.550 

2,995.630 


$ 
15,593,330 


861.073.399 

2.285 

51.232 

5.101.614 

69.226 

837.178 

3,009,458 


% 

540.750.977 

11.612 

76.758 

11,992,135 

173,515 

1,179,025 

2,905,426 

65,445 

844,244 

16,626 

2,646,169 

51,808 

10,200,582 

924,932 


$ 
20,088,139 


% 

560,839,116 

11,612 

79,142 

11,997,211 

173,515 

1,228,281 

2,936,511 

65,793 

863,017 

16,626 

2,675,4i9 

52.362 

10.283,393 

924,932 


% 

489.152,637 

23,550 

108,131 

8,649.756 

1.067.639 

1,249,020 

4,818,053 

201,616 

1 .742,554 

36 

3,109,381 

21,350 

10,869.276 

227,652 

28 

4,380,054 

1,343,867 

65,346 

16,175,443 

11,415,623 

6.987 008 

124 005 

47.978 


$ 

. 6.807,481 

4',626 
1,878 
918 
29.410 
1,732 


S 

495,960,118 

23,550 

112.757 

8.651.634 

1,068,557 

1,278,430 

4,819,785 

201,616 

1,743,738 

36 

3.122.009 

30.531 

10,%4.267 

227.652 

28 

4,380,054 

1.363.795 

65.346 

16.940.596 

11. ,538,966 

7,009,626 

128,254 

47,978 


1 


Africa— British East... 

Britisli South 

British West 






2.384 
5,076 


3 


5,137 


35,956 


4 


16,869 
4.310 


22,628 
13,828 


49,256 

31,085 

348 

18.773 

' i29.260 

554 

82.811 


6 


E. Indies— Brit. Ind 


7 

S 


Straits Settle 

Other East Indies 


333,390 

27,827 

1,631,395 

2,562 

5,163,278 

160,295 

110 

2,808,554 

494,462 

6,190 

6,517,529 

6,549,546 

3,302,240 

155,653 

12.157 




333,390 

27.827 

1.639.470 

2.773 

5.179.083 

160.295 

110 

2.808.554 

495,072 

12,280 

6,768,740 

6.576.725 

3.333.910 

156.194 

12,157 


761,607 
17,238 
1,978,323 
13,468 
6,838,563 
579,702 


2,500 


764,107 

17.238 

1,987.283 

14,167 

6,899,513 

579,702 


1,184 

12,628 
1.181 
94.991 


9 




10 


8.075 

211 

15,805 


8,960 

699 

60,950 


11 


12 
13 
14 


British Honduras 

(b) British West Indies 

(c) Egypt and Sudan.... 

Falkland Islands 

Gibraltar 


12 
13 
















193 

1.003,900 

7.303 

10.191,564 

8.653.635 

4.089,823 

169.040 

5.367 




1,007,037 

7,303 

10,489,321 

8,676,257 

4,158,028 

170,123 

5,367 


607,637 

995,116 

13,423 

11,325.235 

14.019.629 

6.227.892 

117.962 

13,641 




607,637 

1,051,290 

13,423 

11.913.696 

14.172,817 

6,353,397 

I22,.S9(I 

14,328 




n 

18 
19 
20 
21 
22 


610 

6,090 

251,211 

27,179 

31.670 

541 


3,137 

297.757 
22.622 
68.205 
1.083 


56.174 


19,928 


17 




18 


W f ' rflnn 1 


588,461 

153,188 

125,505 

4,628 

687 


765.153 

123,343 

22.618 

4,249 


19 


Oceania— Australia 


20 

21 




22 


Other Oceania 












24 




Totals, Brit. Empire 

Foreign Countries — 


775.900,741 










904.920.031 
















14,291,230 


790,191,971 


888,788.376 


16,131,655 


605,159,789 


21,236,329 


626.396.118 


561.788,003 


7,891.320 


569,679,323 


























25 


26 


Argentine Republic 


1,673,575 


1,085 


1,674,660 


1.203.142 


17,175 


1.220,317 


4,603,130 


389,729 


4.992.859 


6,126.457 
, 33,168 
28.463.8.55 
2.070 
77,027 
2,703,488 

33,547 

46,400 

43.660 

30,093 

27.651 

890.960 

6,665.805 

101.578 

6,329,783 

2,938,026 


6,946 

.568 

135,249 

60S 
9,277 

2,664 


6,133,403 

33,736 

28.599.104 

2.070 

77.632 

2.712.765 

36,2)1 

46.400 

43.660 

30.093 

27.651 

891,842 

6,711,760 

105,788 

6,858,661 

2,939,001 


26 

97 


28 




664,722 

54 

19,367 

1,028,163 

30,192 

22,980 

15,544 

4.699 

6,214 

508,177 

408,002 

66,836 

2,967.053 

111,044 

24,810 




664,722 

54 

19,367 

1.062,545 

30,192 

22,980 

15,544 

4,699 

6.214 

508.177 

418.399 

66.836 

3.014.322 

112.265 

24.910 


4.909,453 

1.763 

113,549 

974,368 

13,620 

20,392 

6,733 

5,192 

10,365 

314,384 

1.954 .055 

12.463 

4.01.5.940 

39.230 

11.010 

18,337 

13.672 

201,053,676 

795 




4,909,453 

1,763 

113,549 

976,305 

13,622 

20.393 

6.737 

12,947 

10,426 

379,462 

2,060,203 

12.465 

4.041.990 

39.230 

11.010 

19.887 

13.719 

206,585,063 

795 


950,318 

5,543 

59,622 

4,088,534 

14.078 

93.951 

27.699 

16.817 

23,154 

2.321,329 

2,856,933 

44,540 

5,035.975 

42,039 

(c) 

12.808 

53.102 

%.I03,142 

72.815 

13,631 

12,512 

2,299 

160.788 

3,060 

523.488 

16.902 

2.158 

13,181,514 

12,245,439 

228,805 




950.318 

5.643 

59.622 

4.091,835 

14,078 

93,951 

27.699 

16.817 

23,154 

2.324.-,91 

3.009.570 

53.296 

5,137,300 

42,039 

(c) 

13,404 

53.102 

102.360.853 

72,815 

13.631 

12,512 

2.299 

161,535 

3,060 

574,315 

16,902 

2,158 

14,030.724 

12.395.296 

273.133 


?S 


Belgian Congo 








30 
31 








30 




34,382 


1,937 
8 


3,301 


31 


Central Amer.States.... 


3? 




L^osta K 






33 




H H 




" " 7,755 

62 

65,082 

106,147 








Monaur . 




'. 


.35 


36 
37 
38 
39 
40 


„ ' 1 *.^ 






36 


Chile 




3,462 
152,637 

8,756 
101,325 

■■■•(,-)■■■■ 
596 


882 

45,955 

4,210 

528.878 

975 


37 


10,397 

" " 47.269 
1,221 


38 




39 




20,055 


40 


Denmark 

id) Danish W. Indies... 


41 








43 
44 
45 

46 


1,550 

47 

5,531,387 


8.629 

40 250 

61,108 693 

362,637 

11,177 

14,686 

8,822 

470,934 

2,283 

748,573 

29,588,984 

174,543 

16.959,557 

7,732,514 

1,469 


263 

718,660 
937 


8.629 

40,513 

61,827.353 

363,574 

11,177 

14,686 

8,822 

472,864 

2,283 

786.078 

29,591 ,004 

174,543 

16,967,221 

7,889,820 

1,469 


43 




12,241 

64,039,192 

8.744 




12.241 

66.652.100 

8.744 


44 


France 


2,612,908 


6,257,711 


45 
46 










47 




French Guiana. 

French Oceania 

French W. Indies. ... 


231 

815 

187,093 




231 

815 

187.093 


1,033 

7.438 

163.117 




1,033 

7,438 

163,203 






48 






86 






49 


SO 




747 


1,930 


,50 




51 


52 
53 


S, Fi're&Miq'elon... 
Greece 


187,661 

19.309 

6,365 

11,226,051 

1,205,067 

106,850 

310 

70,330 


22,123 


209.784 

19.309 

6.365 

11.468.599 

1.282.115 

• 106.850 

310 

80,390 


345.303 

4.262 

1.741 

3,336,059 

4,861,244 

366 


36,, 982 


382,285 

4,262 

1,741 

3,338.305 

5,273,041 

366 


50,827 


37,505 
2.020 

7.664 

157,306 


52 
53 


242,548 
77.048 


2,246 
411,797 




54 


55 
56 


Italy 


849,210 
149.857 
44,.328 


55 

56 


Korea 


57 


58 
59 
60 
61 
62 
63 
64 








.58 


Mexico . 


10,060 


482,428 


12,667 


495,095 


568,943 


4,531 


573,474 


410.825 


3,926 


414.751 


59 




60 


Monten go 


4,634 

1,561.480 

332.785 

71.411 

20,373 

964,552 

271,022 

■ 88 

475 

246.791 

209,689 

33,441 

15.593 




4,634 

1,569.314 

332,785 

71.612 

20,373 

966.153 

271,022 

S8 

475 

246,863 

209,689 

33,441 

15,593 








26,096 

198,985 

996„575 

65,671 

10.145 

1.149.123 

165.700 

655 

22,802 

283,022 

367,446 

77 

9,448 




26,096 

198,985 

996,575 

66,318 

10,145 

1,149,123 

168,335 

655 

22.802 

284,251 

367.446 

77 

9,448 


17,258 

5,653.218 

1 .492.775 

131.905 

42,569 

4.798,299 

409,291 

4.958 

35 

273.967 

197.385 

59,001 

49,189 

12.953.605 

1,492,041 

169.186 

11.632 

39.727 

1.096.053 

1 17.076 

4.449. i05 

1,484,416 

2.336,717 

464,028,183 

432,744 

2,256 


128.695 

82 

40 
11,218 
1.151 


17,258 

5,781.913 

1,492,775 

131,987 

42,609 

4,809,517 

410,442 

4,958 

35 

274,185 

197,497 

59,001 

49,189 

12,953,642 

1,498,535 

269,186 

11,632 

39,727 

1,108.904 

1I7.,568 

4,450,289 

1,490,482 

2,336.985 

501.130,117 

453,858 

2,271 


61 




7.834 


2,462,574 
344,196 
105,453 
7,131 
173,491 
70,631 


825 

863 

1,416 


2,463,399 
345.059 
10;i,869 
7,131 
173,491 
70,648 




o-* 


Dutch East Indies 




63 


201 


647 


64 


Dutch West Indies-... 


65 


66 
67 
68 


1,601 


'"Vl 




66 




2.635 


67 






68 


paragu* i 


72 










69 


70 
71 




99,377 
14,878 
16,096 
4,423 


48,510 


147,887 

14,878 

16,096 

• 4,423 


I.?29 


218 
112 


70 


Portugal 

AzoresAMadeira I 

Portugese Africa 


71 








72 










37 

6.494 
100,000 




74 
75 
76 
77 
78 
79 
80 
81 
82 
83 
84 
85 






74 


Russia 


3,755,569 
39,827 


130,253 


4,185,822 
39,827 


4,008,475 
45,087 


1,524 


4,009,999 
45,087 


6,164,658 
39,663 
47.013 
66.886 
231.095 
9.280 

19.220 

7.665 

621.023 

454,873.170 

300,112 

324 


224.964 
2.091 

505 


6.389.622 
41.754 
47.013 
67.391 
231.095 
9.280 

19.226 

7.870 

621.023 

477.695,659 

312.880 

324 


75 
76 


(, , . ** 






77 


aerDia. 


22,154 
326,179 
79,966 

' 18,2i5 
672,508 

280,616,330 
462,511 




22,154 
331.179 
79.966 

18.2is 
673.390 

290.578,773 
532.343 


54,780 
98,256 
22,577 

15,596 
2,921 

417,812.867 
505.066 


30,810 


85,590 
98,256 
22,577 

15,596 

8.082 

441,390,926 
627,252 




78 


^, 


5,000 


12,85i 
492 

r,i84 

6,066 

268 

37,101,934 

21,114 

15 


79 


Canary Islands 

Spanish Africa 






80 






205 

22.822.489 
12,768 


81 
82 


<5 't prIanH 


882 

9,962,443 
69.832 


4,161 

23,578,ii3 
122,186 


83 


Turkey 

United States 


84 
85 
86 


87 
88 
89 
90 
91 
92 
93 


fe) Amer. Virgin Islands 


87 














8R 


Hawaii ...'.'.'.'.'.'!'.!!!! 


247,752 
12,808 

719,918 
68.549 

238.911 

375.475,027 


6.313 


254.065 
12,808 

720,494 
68,549 

238,965 


493.027 
33.153 

751,436 
97,916 

103,935 


742 
199 


493,769 
33,352 

751.436 
97,916 

103,935 


709,246 

68,551 

1,071.805 

332.952 
40.441 


60O 


709.846 

68.551 

1.071.805 

332.952 
40.441 


163,970 
292,547 
1,489,667 
689,538 
404.007 
763,631 


200 
270 
401 
1,085 
141 
214,803 


164,170 
292,817 
1,490,068 
690.623 
404.148 
978.434 

716.979.386 


89 
90 


P f R' 


576 




91 


Urugua-y- 




92 


54 




93 


Other For.Countries 

Totals, For.Coun 

Grand Totals 




94 
























13.544.102 
27.835,332 


389,019,129 


651,239,412 


30,010.349 


681,249,761 


611.284.017 


31,085,150 


642.369,167 


677.704,095 


39,275,291 






1151375.768 


1.179,211.100 


1540,027,788 


46.142.004 


1586,169,792 


1216.443.806 


52,321,479 


1268.765,285 


1239,492.098 


47,166,611 


1286.658.709 





(a) Ceylon included with "Other British Indies" prior to 1919. (6) Divided into four, 
lr» Egypt and Sudan shown as Foreign Countries prior to 1916. (d) Danish West Indies shown a 
Islands shown as "Danish West Indies" prior to 1919. 



z\ Barbados. Jamaica, Trinidad and Tobago, and other B, W, I, 
'American Virgin Islands" subsequent to 1918. Oe) American Virgin 



INSURANCE 




Jiiiliiiiry 7, KjJI 



THE MONETARY TIMES 



Page i6s 



164 THEMONETARYTIMES Volume ^6 

GROUP INSURANCE 

AN INVESTMENT 

That Benefits Both Employer and Employees 



ly/IANY employees want life insurance protection but are not insurable 
^^* and cannot get a policy themselves. Many are not insured because 
they spend all they earn and think they cannot afford a policy. Many 
who are husbands and fathers do not fully realize their responsibilities 
towards their families, and fail to insure. 

Our Group Plan puts all employees into the insurable and insured class. U gives 
each of them a Policy without medical examination and without expense. Every 
employee is thereby covered by life insurance — as every worker and producer 
ought to be. 

It hnks the home and the dependents of the employee more closely to his work 
and his employer. The good will and appreciation of the home and family is a 
most important factor in developing loyalty and co-operation. 

it tends to retain the better class of men and women in office and plant who are 
of greatest worth to the success of the business and who appreciate most the pro- 
tection provided for them and their dependents. Their appreciation grows as 
time goes on, when they see the cash benefits that are derived from the insurance. 

Group Insurance thereby becomes an investment that gives an increasing return 
to the employer by way of a more interested class of employees, better team work, 
greater efficiency and reducing costs through labor turn-over. 

It puts on a business basis the relieving of the distress that follows the death or 
total and permanent disability of employees, free from discrimination and free 
from the stigma of charity. 

The cost is very low for the many benefits that are guaranteed, the premium 
usually amounting to less than 1% of the payroll. 

Canada Life Group premium rates are on the lowest scale obtainable. The Policy 
contains every liberal feature of real value to employer and employees. Moreover, 
Canada's oldest Life Insurance Company is in a position to give the best possible 
service. 

Let us send vou our proposition. It mill interest ijou 



CANADA LIFE ASSURANCE CO. 

HEAD OFFICE - TORONTO 



January 7, 1921 



THE MONETARY TIMES 



Life Insurance in Canada in 1920 

New Business Exceeded 1919 Record — Mortality Experience Slightly Better, 
Indicating that Pre-War Improvement is Being Resumed— High Rates on Bond 
Investments Attracted Large Part of Companies' Funds— Increase in Policy 
Loans — Life Insurance Without Medical Examination Being Considered 

T. A. DARK, F.A.S. 

Assistant Manager and Actuary, Excelsior Life Insurance Company 



UNQUESTIONABLY the outstanding feature of the life in- 
surance business for the year 1919 was the phenomenally 
large volume of insurance written, the increase over the pro- 
duction of 1918 being approximately 70 per cent. This deluge 
of business first became clearly evident during the influenza 
epidemic of 1918, although the epidemic itself was only one of 
several powerful factors contributing to the general result. 
That these influences, or others as effective, continued to oper- 
ate during 1920 is evident from a glance at the following fig- 
ures. The results for 1920 are, naturally, only approximate: 

Insurance Written and Paid for in Canada 

Year Amount Year Amount 

1915 $221,119,558 1918..— _.$313,251,556 

1916 231,101,625 1919 524,543,629 

1917 282,120,430 1920 625,000,000 

Uncertainty at Beginning of Year 

It will be seen that the business put on the books of the 
Companies during the last two years was nearly one hundred 
millions in excess of that acquired during the four previous 
years. One need not seek far for an explanation, although 
the result for 1920 is better than many would have predicted 
at the beginning of the year. At that time there existed a 
very general feeling that the period of high wages, high prices 
and apparent general prosperity would not continue much 
longer, and when the end did come it would bring about a 
decided slump in the volume of life insurance transacted. 
Recent events indicate that the crest of high prices and hign 
wages has been passed, but the downward trend, so far aS 
Canada . was concei-ned, commenced too late in the year io 
have any serious effect on production. Similarly the value of 
money continued much depreciated, necessitating the buying 
of larger amounts of insurance in order to maintain the same 
standard of protection for one's dependents as in former years. 
Here also the reaction has been too recent to have had any 
appreciable effect. 

Then, too, in January, 1920, just as life insurance officials 
and the public generally were beginning to breathe easily, 
hoping that the predicted recurrence of the influenza epi- 
demic of 1918-1919 would fail to materialize, claims from this 
cause began to be reported to the Head Offices. It is true that 
the disease passed over the country with an incomparably 
lighter touch than before, but it reached from Atlantic to 
Pacific and brought back vividly the need of protection so 
strongly emphasized during the previous outbreak. 

Previous Records Exceeded 

These forces with another to which too high tribute can- 
not be paid — the increased efficiency of the life insurance 
salesman — made 1920 a banner year in production. 

Business in Force in Canada (in thousands) 

Gain as 
Gain over % of business 
End of Year Amount prev. year written 

1914 $1,242,160 $73,570 34% 

1915 — __ 1,311,616 69.456 32% 

1916 1,422,179 110,563 48% 

1917 1,585,042 162,863 57% 

1918 1,785,061 200,019 64% 

1919 2,187,837 402,776 77% 

1920 probable 2,637,837 450,000 75% 



Little .comment on these figures is necessary. The ap- 
proximation for 1920 has been obtained by using as a basis tbc 
results of a number of Canadian companies whose experience 
would probably be fairly representative of all companies doing 
business in Canada. It is natural that the same influences 
which have made for larger production should have acted as a 
decided check on lapses and surrenders. The result has been 
that unnatural terminations (lapses and surrenders) were in 
1919 only four times the natural terminations (death claims 
and matured endowments), while in 1914 the former were .s;x 
times the latter. 

Conservation of Business 

While 1920 repeated the favorable experience of 1919, the 
watchword now is "Conservation of Business." How import- 
ant this problem appears at this time may be judged by the 
fact that at the meeting of the Association of Life Agency 
Officers held in Chicago on November 10th and 11th the gen- 
eral subject for discussion was "The Relation of the Agent to 
the Conservation of Business." The subject was approached 
from many angles, among them being: — 

1. Qualities which general and local agents should pos- 
sess to be effective in this w'ork. 

2. Cost of lapses. 

3. Value of institutional advertising in a conservation 
campaign. 

4. The manager's function in the training of agents. 

5. The method of compensation most useful in keeping 
business on the books. 

Conservation begins when the prospect is approached. 
The advice given as to the proper plan of insurance and the 
proper explanation of the plan does much to determine 
whether the policy will be persistent and the holder a staunch 
friend of the company. Lapses and surrenders can be pre- 
vented also by a careful selection of new applicants. The 
risk which is poor from either the physical or financial stand- 
point should be avoided because each such case submitted to 
the company costs the present policy-holders money. Further 
the old policy-holder is entitled to and should receive the 
same service as the more recent member — a service which 
should not end until his policy terminates in a natural way. 

Mortality Experience 
Each year in the report of the Superintendent of Insur- 
ance there is published a table giving as accurate a represen- 
tation of the mortality per 1,000 among insured lives as can 
be gathered from the returns of the companies reporting. 
They include active companies doing ordinary business, active 
industrial companies, assessment and fraternal societies, and 
non-active and retired companies. WTaile the results at the 
best are only approximate, they are interesting as indicating 
the trend of mortality during the last decade. 

Death Rate per 1,000 Among Insured Lives in Canada 
Year Rate per 1,000 Year Rate per 1,000 



1911 


9.7 


1916-—— 


10.6 


1912 


9.3 


1917 


11.1 


1913 


8.7 


1918 


14.1 


1914. 


8.6 


1919 


8.3 


1915 


8.8 


1920 


8.2 (est.) 



It is clear that the gradual but quite appreciable improve- 
ment in mortality extending from 1911 to 1914, interrupted in 
1915, was resumed in 1919. The figures for the years 1915 
to 1917 inclusive show the excess mortality due to war losses, 



THE MONETARY TIMES 



increased during the last quarter of 1918 by the abnormal in- 
fluenza claims. It may be interesting to add just here that 
the first influenza epidemic was responsible, in the six months 
from October, 1918, to March, 1919, inclusive, for claims on 
the lives of Canadian policy-holders amounting to over twelve 
and a half million dollars. Most of those claims were in 
curred in 1918. 

A brief reference has already been made to what may be 
called a minor outbreak of influenza in the early months of 
1920. No figures are as yet available to measure, even ap- 
proximat(-ly. the losses incurred in 1920 from this cause, but 
though considerable, they were not sufficient to adversely 
affect the mortality of the year as compared with 1919. 

The following table shows, for several Canadian com- 
panies, the mortality experienced in 1919, calculated as a per- 
centage of the expected, and the probable figures for the same 
companies for 1920: — 

Actual mortality as percentage of 
Company expected ■ 

1919 1920 

A 55% 60% 

B 60% 55% 

C 60% 55% 

D 55%. 45% 

E — 50%. 50% 

F 60% 55% 

G 55% 55% 

The Investment Situation 

Principal Investments of Canadian Companies 
(Amounts are given in thousands) 
Loans on real estate. Loans on policies. Bonds and debentures. 
% of total % of total '^'c of total 

Year. Amount. assets. Amount. assets. Amount. assets. 

1913 .niG.571 34 $41,990 12 $133,087 39 

1914 122,358 33 48.773 13 143,486 39 

1917 119,275 26 56.318 12 209,132 46 

1918 115.515 24 57..588 12 246,518 51 

1919 114,387 22 58.376 11 285.786 54 

The above table shows that, v*'hile at the end of 1914 
mortgages on real estate formed 33 per cent, of the assets of 
Canadian life insurance companies, and bonds and debentures 
39 per cent., the corresponding figures at the end of 1919 we -e 
22 per cent, and 54 per cent. In these six years the amount 
invested in mortgage loans actually decreased, although in the 
same time the total assets of the companies increased 55 per 
cent., or .$188,000,000. Of this increase in assets $153,000,- 
000, or 81 per cent., have been invested in the bonds and de- 
bentures. 

Bonds and Debentures 

All Canadian life insurance companies subscribed very 
liberally to the various war loans and this fact is largely re- 
sponsible for this very decided change in the character of their 
investments. In addition, the slackening in building activity, 
■«ith the consequent lessened demand for loans, has had its 
effect as have also the good crops and high prices which have 
been obtained for them throughout the Dominion. Nor must 
it be forgotten that the yield on securities of the highest class 
has been gradually rising until during the last quarter of 1920 
rates undreamed of only a few years ago have been realized. 
One result of the diminishing difference between the rates 
realizable on mortgage loans and on bonds has been to divert 
a considerable amount of funds to bond investments which 
would otherwise have gone into mortgages. About 310 mil- 
lion dollars represented the investments in bonds and deben- 
tures at the end of 1920. 

Mortgage Loans 

It is quite certain, however, that the present fairly gen- 
eral depression in trade will set free a large supply of money 
and have a direct tendency to bring about a more active de- 
mand for high-grade bonds. This in turn wnll automatically 
raise the price of bonds (unless the supply keeps pace wi^h 
the demand) and reduce the yield, thereby swinging the in- 
vestment pendulum once more toward mortgage loans. Not 
until the autumn of 1920 did there seem to be any very marked 
upturn in the demand on the part of borrowers for mortgage 
loans. During the last few months of the year applications 



for loans seem to have come in quite freely and, judging by 
reports received, the amount invested in this class of security 
at the end of 1920 approached $120,000,000, 

I'olicy Loans 

The loan privilege of a life insurance policy is exceedintjiy 
valuable when properly used, but quite mischievous when 
abused. Among the advantages of loans on insurance policies 
over those obtained from other sources are — 

1. No collateral, other than the policy, is needed. 

2. Money can be obtained quickly and without publicity. 

3. No time for repayment is stipulated. 

4. The rate of interest charged is often lower than the 
current rate, especially on old policies where the rale 
is stated in the contract. 

Life companies in general have been experiencing an in- 
creased demand for policy loans during the last few montl:s, 
the causes of which are fairly evident. In the first place, to 
assist in the process of deflation banks have been reducing 
their lines of credit and have made it more difficult for clients 
to borrow from them by raising the rate of interest charged. 
As a result many persons have been obliged to borrow on 
their policies for legitimate business purposes. Others, wish- 
ing to take advantage of the very attractive prices at which 
the very best Dominion, provincial and municipal securities 
have been obtainable of late, have borrowed on insurance poli- 
cies, intending to repay the loans out of future savings, or, 
perhaps, in the hope of making a profit from an early sale. 
In the prairie provinces the increased demand for policy loans 
is probably largely due to the desire of many farmers to hold 
their wheat for higher prices or to their inability to obtain 
cars for shipments. Some of these factors also entered into 
the recent increase in applications for mortgage loans already 
mentioned. 

Some policy-holders, however, have been guilty of mo'.-t- 
gaging the protection for their families — or, as it has been 
aptly put, of borrowing from their wddows and orphans — for 
luxuries such as motor cars, and in amounts in excess of actuil 
needs. To make matters worse, the majority of borrowers do 
not repay these loans and the policies ultimately lapse. 
Agents do a real service to policy-holders by discouraging 
loans and by keeping them down to the minimum wherever 
possible. Moreover, they should urge that they be repaid in 
full at the earliest possible moment. 

It is estimated that loans on policies increased during 1920 
to at least $60,000,000. 

Dividends 

It was inevitable that life insurance companies during tha 
past few years should have had to bear their share of the pre- 
vailing high cost of conducting business. Skilful administra- 
tion did much to lighten this burden, but in addition the com- 
panies had to face a very large e.xtra mortality due to war 
and epidemic. As a result many companies found it advisable 
to make some reductions in their dividends for 1920 (and In 
some cases for earlier years), though in no case was the re- 
duction serious. No definite information is yet available con- 
cerning the action of the companies in connection with divi- 
dends for 1921, but it is unlikely that there will be much 
change. 

Prospects are bright, hoviever, for a comparatively early 
improvement in dividends or refunds of premium payments, 
as they might more properly be called. Mortality, as we have 
seen, has dropped to its pre-war level, the rate of interest now 
being realized is very satisfactory while the expense rate is 
not excessive. Even though the large volume of business 
\vritten in 1919 and 1920 continues, as is hoped, the strain 
thereby placed on the surplus of companies will be temporary 
and will ultimately be more than made good, t 

Life Insurance Without Medical Examination 

It will doubtless come as a surprise to many to learn th.at 
some companies are very carefully and seriously considering 
the possibility of entertaining applications for life insurance 
for amounts not in excess of $1,000 without medical examina- 
tion. This idea is not, as might be supposed, the direct result 
of the practice of granting group life insurance without medi- 



January 7, 1921 



THE MONETARY TIMES 



cal examination. Nor is it altogether new. Although so far 
as the companies writing ordinary life insurance in Canada are 
concerned it would be an experiment, industrial companies for 
some years have been writing small risks (maximum aboi't 
$250) in this way and have experienced a favorable mortality 
in this class. In Great Britain three or four companies doing 
ordinary business have been issuing policies up to £250 with- 
out medical examination with good results. One at least of 
these companies has been issuing policies up to £1,000, with 
the proviso that if death occurred in the first three months 
only one-third of the sum assured would be paid, if death oc- 
curred in the next three months two-thirds would be paid, and 
thereafter the full amount of the policy. This scheme al.so 
has shown satisfactory results. 

This idea, while it will require careful working out, has 
many features to recommend it. For e.xample, large stretches 
of our Dominion are very sparsely settled, and other parts, 
better settled, are poorly supplied with medical men. Under 
such circumstances it is often exceedingly difficult to have a 
medical examination made. Even where medical examiners 
are readily available the agent often finds it hard to arrange 
a time for examination convenient alike to the applicant and 
the examiner. This takes up a great deal of the agent's time 
and it is a question whether this time could not be used by the 
agent with more profit to himself and the company in seeking 
new business. Then, too, agents occasionally meet persons 
who do not want to take the time or trouble to go to a medical 
man for an examination, even though the company is paying 
the fee. It is not that they have any fear of not being able 
to pass the medical test. They are just temperamentally in- 
diff'erent. 

Under this plan the applicant would be required to com- 
plete an application in the usual way. He would have to 
give a complete family and personal history and answer a 
series of questions designed to bring out all facts within his 
knowledge which would have a bearing on the company's deci- 
sion as to acceptance or rejection of the risk. Should the 
information brought out in this way be unfavorable in any 
particular a medical examination might be required. It is 
probable that certain plans of insurance, such as term insur- 
ance, would not be granted under this scheme, also that cer- 
tain classes of applicants would have to undergo oxaniinaiion 
in all cases. 

Canadian life insurance companies have ah -ays had the 
well-deserved reputation of being aggressive and desirous of 
living up to the full measure of their opportunities. VVhetiier 
this scheme offers a safe means of extending the benefits of 
life insurance more widely remains to be seen, but it is fairly 
certain that it will be given an early trial. 

The -Agency Field 

A brief reference has already been made to the efficient 
work of life insurance salesmen. It is being more than ev^r 
recognized by company executives that in the past too much 
time and money have been wasted on unproductive agents. It 
seems only fair to the real producers, who are giving service 
alike to their clients and their companies, that thty .vhoukl be 
protected against the interference of the part-time man, the 
spotter and others with no regular company affiliation. Dur- 
ing the past year it has been shown conclusively by one large 
.-Vnierican company that a carefully educated and trained 
agency organization of proven worth can do more elfective 
work in the field than a larger organization cf unqualified and 
untrained men. And the results are more beneficial all around 
— to the company, to the agency force and to the policy- 
holders alike. The company in question, by a gradual house- 
cleaning, reduced its agency establishment to one-third the 
original number and from this smaller force received double 
the former volume of business. 

There is, indeed, much food for thought here. In no line 
of effort can incompetents and misfits do so much harm as in 
the business of life insurance. The time is approaching when 
many companies will not engage agents who have not followed 
a prescribed course of study and training, in fact, several 
Canadian companies already have regular agency instructors 



to whom is entrusted the training of the prospective agent. 
Other companie.s have encouraged their representatives to at- 
tend the School of Life Insurance Salesmanship at the Car- 
negie Institute of Technology, Pittsburg. Here not only aj'e 
they taught the theory and principles of life insurance but 
they are also carefully instructed in the theory of psychology 
and given practical experience in its application to salesman- 
ship, particularly the sale of life insurance. As these better- 
equipped men go about their daily work they cannot fail to 
bring about a more enlightened and favorable public opinion 
and to raise the business of selling life insurance to a much 
higher plane. Not only is life insurance being more intelli- 
gently sold but it has become an important factor in the ques- 
tion of credit. Bankers are advocating it to their clients con- 
stantly and lend much more readily when they find that the 
prospective borrower is carrying a proper amount of life in- 
surance. This attitude is due not only to the increased secu- 
rity afforded by the insurance, but also to the fact that a man 
who is provident enough to protect his dependents is more 
likely to make a satisfactory borrower. 

Huge Savings Are Represented 

A writer in "The New England Pilot," published by an 
American life insurance company, says: — 

"Speaking of thrift as expressed in premiums, the New York 
Sun said last May of the new business of 1919: 'Every dollar 
of this insurance represents saving, investment, foresight, pro- 
vision for the future. If there have been fools for spending 
in these flush times, there have been wise men for saving, and 
the benefits of their prudence will endure." As someone has 
pointed out, buying life insurance during the recent past may 
have been a craze, but it certainly was not an extravagance 
nor a dissipation. If this was true of last year, it is true in 
much greater degree of 1920. 

"The fact is that our people are not buying enough, in- 
stead •f too much; or, rather, they have just begun to bay 
enough. One of the most important contributing causes of 
the wonderful growth in the popularity of life insurance has 
been this— its increased adaptability to human needs. This is 
seen markedly in monthly income insurance, business insur- 
ance, and insurance to cover inheritance taxes. To a large 
extent the explanation and the justification of the activity is 
found in this great extension of service. The general liberali- 
zation of policy contracts and the diversity in their forms of 
applied usefulness explain much of the increased demand for 
the all-embracing protection of modern life insurance." 

These are permanent factors and warrant the hope thai, 
although the spectacular strides of 1919 and 1920 may not 
soon be repeated, life insurance is entering on an era of strong, 
steady growth and prosperity. This development is expected, 
although experience has shown that life insurance production 
follows more or less closely the rise and fall of commodity 
prices, and with declining prices one would logically expect .i 
lessened production. To offset this natural tendency is at 
once the task and the opportunity of life insurance salesmen. 



FEWER SHIPS IN .MONTREAL HARBOR 

Statistics compiled by the harbor commission for the 
navigation of the past .season show that the total number of 
trans-Atlantic ships entering the port was 638, a drop of 64 
as compared with the previous season. The tonnage, how- 
ever, totalled 2,020,519, against 2,041,6.38 in 1919, showing 
that the average tonnage per ship was higher. The actual 
importance of the port's tonnage was greater than in 1919, 
since the total number of ships arriving there last year in- 
cluded 229 ships built for the United States Shipping Board, 
against 120 of the same ships arriving this year. 

The main part of the tonnage this year was British, com- 
prising a total of 460 ships, with a tonnage of 1,581,499. Next 
came the United States with 120 ships and a total of 225,855 
tons. Inland navigation showed considerable slackness, the 
number of ships being 4,403, with tonnage of 4,287,714, against 
7,444 ships with 4,357,734 tonnage in 1919. 



168 



THE MONETARY TIMES 



Volume 66 



Fire Loss Second Largest on Record 

1920 Total is $27,371,574, Compared With S23,207,(J47 for 1919, and 
$31,815,844 in 1918— April and December Were Heaviest Months— 
301 Fires With Loss of $10,000 and Over— Fatalities Numbered 224 

CANADA'S fire loss in 1920, as estimated by The Monetary Feb. 13, $100,000, Hayden-Gibson theatre block, Woodstock, 

Times, was $27,371,574, which is $4,000,000 higher than N.B. 

in 19iy, and is exceeded only by 1918, when the exceptionally Feb. 27, $160,000, Bank of Nova Scotia block, Sydney, N.S. 

high figure of $31,815,844 was reached. There were 301 fires, Mar. 4, $100,000, McKinnon Building, Toronto, 

causing a loss of $10,000 and over, compared with 288 in 1919. Mar. 6, $125,000, G.T.R. freight sheds, London. 

A slight change was made in compiling the figures for Mar. 8, $100,000, warehouse Dominion Steel Corp., Sydney, 

1920, a more liberal estimate for unreported fires being made. N.g. 

This accounts, in part, for the increase in the estimated total jyjgj. 9^ $100,000, Port Arthur Electric St. Ry., Port Arthur, 

loss, but there is no doubt that the actual monetary damage jj„,j. ^^4^ $150,000, St. Joseph's Catholic Church, Buckingham, 

was greater than in 1919. Que. 

The results may be summarized as follows: — Mar. 16, $100,000, five buildings, Annapolis Royal, N.S. 

1917. 1918. 1919. 1920. Apr. 1, $150,000, Jewish synagogue, Montreal. 

Average monthly ' ^P*"- '^' $400,000, car barns of Winnipeg St. Ry., Winnipeg. 

loss $1,673,840 $2,651,320 $1,933,970 $2,280,964 Apr. 11, $150,000, several stores, Notre Dame du Lois, Que- 

Loss per capita.. $2.60 $4.11 $2.90 $3.42 Apr. 11, $150,000, cannery plant, Inverness, B.C. 

Fires with damage ^P*'- ^^' $440,000, London Collegiate Institute, London, 

of SIO 000 or -^P""- ^^' $200,000, factory of St. Henri Shoe Co., Montreal. 

fyy^^' ' 238 256 288 301 Apr. 27, $100,000, Dearborn and Co., Ltd., St. J9hn, N.B. 

Apr. 28, $100,000, Pioneer elevator, Killam, Alta-. 

The Monetary Times' record for the past four years shows Apr. 29, $200,000, Essex County Sanitorium, Windsor, Ont. 

the following monthly losses: — May 15, $100,000, garage and 38 cars, Digby, N.S. 

Month 1917 1918 1919. 1920. '^^V ^^' $100,000, Eureka Pure Bred Stock and residence, 

January . $ 1,918,660 ? 2,688,556 $ 3,915,290 $ 2,637,850 Duncan, B.C. 

February 2,009,953 2,243,762 1,091,834 1,895,575 May 19, $150,000, Wallace Cannery freighter. Prince Rupert, 

March 2,050,650 1,682,286 2,154,095 1,793,200 B.C. 

April . . . 1,317,714 3,240,187 1,080,070 3,229,.500 May 20, $100,000, bakery, Milford, N.B. 

May 1,163,110 3,570,014 1,785,130 2,001,819 May 21, $105,000, building, Toronto. 

June 1,184,627 3,080,982 3,337,530 1,424,319 May 27, $200,000, Cote Mills, St. Joachim, Que. 

July l',101,734 3,369,684 1,118,377 1,426,850 May 30, $100,000, lumber yards, Ottawa.. 

August 1,230,183 3,110,445 1,374,495 1,857,800 June 13, $150,000, Moyneur, Ltd., Ottawa. 

September 1,301,700 917,286 1,940,272 2,480,485 June 13, $200,000, Bishop Lumber Co., Sault Ste. Marie, Ont. 

October . ' . '704,605 5,119,145 1,023,288 2,467,901 June 16, $200,000, John Watson Co., Ayr, Ont. 

November 959,049 1,059,580 2,339,870 2,769,800 June 20, $100,000, Balmoral Apts., Vancouver. 

December 5 144 100 1,733,917 2,047,496 3,386,475 July 5, $100,000, Western Printing & Litho Co., Calgary. 

' July 10, $100,000, Mann axe factory, St. Stephen, N.B. 

Totals $20 086 085 $31,815,844 $23,207,647 $27,371,574 July 20, $100,000, R. D. Patterson's chemical fertilizer plant, 

■ ' r <^ A AAA J St. John, N.B. 

The following table gives a list of fires of $10,000 and j^j^ ,5, if 100,000, Currle-Williams Cannery, Ladner, B.C. 

over, month by month, compared with five previous years:— j^^j^ 39^ $100,000, two-story biiilding, St. Thomas, Ont. 

Month. 1915. 1916. 1917. 1918. 1919. 1920. Aug. 4, $100,000 business block. Carp, Ont. 

January 35 28 28 43 25 31 Aug. 7, $100,000, business section, Morinville, Alta. 

February 25 30 31 21 18 33 Aug. 19, $200,000, factory, St. Tite, Que. 

March " 24 30 26 16 28 23 Aug. 24, $400,000, Brunswick Hotel, Moncton, N.B. 

April .22 13 13 24 26 32 Sept. 5, $150,000, rink and d&iry, Ottawa. 

May 23 23 11 27 20 19 Sept. 9, $200,000, plant, Montreal. 

June 18 9 17 19 31 8 Sept. 9, $115,000, sawmill, Powell River, B.C. 

July 11 13 16 24 22 16 Sept. 18, $100,000, military huts, Barriefield, Ont. 

August 10 14 14 23 16 21 Sept. 21, $200,000, business section, Brockville. 

September .20 12 10 14 17 30 Sept. 24, $500,000, lumber mill, Charlo Station, N.B. 

October 17 14 15 12 19 27 Oct. 11, $150,000, lumber mill, Stewiacke, N.S. 

November 13 14 26 14 25 29 Oct. 14, $500,000, plant, Tillsonburg, Ont. 

December 19 18 31 19 41 32 Oct. 15, $200,000, business section, Ste. Stanislas de Kostka, 

_ . Que. 

Totals 237 218 238 256 288 -301 Oct. 17, $100,000, mill. Port Arthur, Ont. 

Oct. 19, $300,000, business section, Wadena, Sask. 

Fires causing damage of $100,000 and over were as Oct. 29, $200,000, police buildings, Brandon, Man, 

follows: Nov. 10, $400,000, warehouse, Winnipeg. 

„ ^„„ r. . T. J ^ HT ^ I Nov. 12, $100,000, department store, Sydney, N.S. 

Jan. 8, $500,000, East End Garage, Montrea . ^^^ ^, ' ^ ^J Vancouver. 

Jan. 9, $120 000 Creighton's garage Toronto^ ^^^ $150,000, parish ha.ll, Ottawa. 

J&n. 11, $175,000, Richmond Paper Co., warehouse, Halifax. ' J,.. ' . \. •, ■ ■ ,- r> 1, 

Jan. 18 $300,000, Empire Hotel, Grand Hotel and three stores, ^ov. 21 $500 000, retail business section, Quebec. 

p J Nov. 22, $100,000, building, Montreal. 

Jan 21^''$140,000, J. Bambrick and Ottawa Printing Co., Nov. 30, $100,000, hospital, Gravenhurst, Ont. 

' Ottawa. Dec. 1, $125,000, building, Wilfville, N.S. 

Jan. 30, $125,000, Westminster Presbyterian Church, Toronto. Dec. 1, $250,000, business section, Jasper, Alta. 

Feb. 8, $100,000, building in Halifax. Dec. 7, $100,000, bakery, St. John's, Nflld. 



January 7, 1921 



THE MONETARY TIMES 



169 



Dec. 15, $500,000, college, Quebec. 

Dec. 22, $100,000, factory, Oxford, N.S. 

Dec. 23, $.300,000, plant, Berthierville, Que. 

Dec. 24, $500,000, banking district, Halifax, N.S. 

Dec. 24, $200,000, building, Toronto. 

Dec. 27, $105,000, building, Montreal. 

Deaths due to fires in 1920 were as follows: — 

Month. 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920. 

January 14 26 3 10 21 28 13 22 

February 21 18 11 23 19 87 26 30 

March 22 27 23 23 20 34 9 35 



Month. 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920. 

April 11 22 14 6 15 7 27 8 

May 33 8 5 14 12 10 15 13 

June 18 12 2 6 9 9 28 15 

July 9 8 13 268 19 6 11 15 

August 29 3 14 30 12 7 24 14 

September .27 9 27 6 21 13 23 13 

October 15 9 7 39 23 11 16 13 

November .. 24 14 12 12 21 3 14 31 

December 13 19 11 94 15 26 19 15 



Totals 



236 175 142 531 207 241 225 224 



Hail Insurance Results Were Satisfactory 

Premiums Greatly Exceeded Those of Previous Years — Loss Ratios Lower Than 
Usual — Reduction in Rates is Possible — Municipal Insurance in Alberta Has Been 
Fortunate, But in Saskatchewan Extra Assessment Was Necessary in 1919 

By W. A. SMART, Calgary, Alberta 
Manager, Hail Department, British Crown .Vssurance Corporation, Ltd. 

PREMIUMS paid to companies by farmers in western Can- tion to be content with a moderate profit, and in view of the 
ada for hail insurance in 1920 far exceed the total of any more recent experience in this province they are now consider- 
previous season. Following is a synopsis of premium received ing a reduction of premium I'ates. Some of the older operators 
and losses sustained for the season. Similar figures for a who have vivid memories of former experiences view withi 
period of years in Saskatchewan and Alberta are also given:-- some trepidation the proposal to reduce rates. They argue 
1920 Premium Losses Ratio % *^^^* ^^^ subnormal conditions of the past three years can 

Saskatchewan $4,346,605 $1,860,644 43 ^^^^'^ ^^ ^^Pe^^^d to continue and that a disastrous season is 

Alberta 2171954 745 567 30 alreacjy overdue. Nevertheless a large reduction of rates is 

Manitoba '39l',781 113',000 28.80 probable. 

Municipal Insurance in Alberta 

Totals $6,910,340 $2,719,211 39.3 

The municipal scheme of hail insurance in this province 

Besides the above premium municipal taxes amounting to ,,33 ^een fortunate in having three successive seasons of small 

a large sum were levied for hail insurance in Saskatchewan jogges, and its popularity has increased from year to year be- 

and Alberta. cause of the favor of the elements. Keen observers of the 

SASKATCHEWAN history of hail insurance, and particularly of the municipal 

Year Premium Losses Ratio % schemes in the various provinces, are inclined to think that one 

1909 $281,035 $180,213 64 season's experience such as that of 1916, or even a less disas- 

1910 547 995 287,537 43 trous season, is all that is required to shatter the confidence of 

1911 787 253 532 840 67 ^he farmer, temporarily at least, in the municipal scheme. 

1912 1 051 125 757,640 72 ^*"" example, if hail had cause as much destruction this year 

1913 7g3 194 485-305 61 *^ '* '^^^ '^ 'he season referred to the municipal commission 

1914 747 g3g 173,443 23 would have required to assess a premium of probably 18 per 

1915 1 3g3 001 438 619 32 cent, instead of 6 per cent. In the event of such an assess- 

1916 1 417 853 1 872,408 132 ment being made the present supporters of the scheme might 

1917 2 409 746 687,085 28 ^^ expected promptly to exercise their right to withdraw their 

1913 2 116 330 772 767 36 '^"'^ from taxation under the municipal hail act for the next 

1919 "III"" 2!277!819 1,784396 78 ensuing year. 

1920 4,346.605 1,860,644 43 Something like this happened in Saskatchewan in 1919 

when the municipal commission exercised a new provision of 

Totals $18,129,794 $9,783,397 53.9 the act for the first time by levying an extra assessment to 

meet the indemnities which had been awarded. It is esti- 

ALBERTA mated that nearly 50 per cent, of the lands then liable to taxa- 

•Year Premium Losses Ratio % tion for hail insurance were so withdra\vn. The weakness of 

1913 $302,929 $214,079 70 any co-operative insurance scheme of this kind seems to lie in 

1914 381^496 211,724 55 the fickleness of its supporters. They are loyal only so long 

1915 1,119,816 855,643 76 *s the sailing is smooth and times are prosperous, but when 

191g 1,237,349 1,029,981 83 the winds of adversity blow many are unable to bear the strain 

1917 1^788,705 1,183,537 66 '^^^ ^re apt to forget the benefits enjoyed in the past. 

1918 '991I085 'l89.225 19 

1919 861,704 354,358 41 Company Insurance in Saskatchewan 

1920 2,171,954 745,567 30 „ ^ .. ,1 , ^. u j j ■ c , . u 

Company rates are not likely to be reduced in Saskatche- 

™ . , eooccAoo ffjr:oiii^ ca wan for uext seasou, cxcept perhaps in 3 few Small aroas Where 

LotalS So.oOO.Uoo S4,/o4,li4 04 , , . , . j t^ • ^ . , , 

extra charges were previously imposed. It is not considered 
Rate Reduction Being Considered that the general experience in this province warrants a reduc- 
For the last three years losses in Alberta have been un- tion. 
accountably far below normal, or what insurers had grown to In Manitoba there will probably be a substantial re- 
regard as normal. The companies operating show a disposi- duction based on the more recent experience there. Mani- 



170 



THE MONETARY TIMES 



toba is to try out a plan of municipal insurance, too, I hear. 
Preliminary steps for inauguration of it have already been 
taken. 

During the season lately closed farmers insured more 
heavily than ever before, as the figures quoted show. Twenty 
and twenty-five doUai's per acre were quite common insur- 
ances, a considerable number going as high as $40.00. The 
anticipated high prices of grain were responsible for the high 
insurance no doubt, and the recent sharp decline of the same 



has been a severe disappointment to many farmers. Com- 
panies which operated on the premium note plan share sharply 
in that disappointment. Whereas farmers may have placed 
insurance last season in excess of the amount warranted, it is 
probable that the experience after the close of the season with 
regard to prices of grain will have a tendency to swing senti- 
ment in the opposite direction, and it will not be surprising if 
next season the amount of hail insurance written is less than 
conditions and circumstances really warrant. 



Soldiers' Insurance Act Produces Business 

$3,282,000 Applied For Up to December 1— This was Only Piece of Insurance 
Legislation at 1920 Session of Parliament— An Outline of the Terms of the 
Act— Many Non-Pensioners Apply— All Branches of Service Are Eligible 



A RETURNED Soldiers' Insurance Act was the only act 
-^*- passed dealing with insurance at the 1920 session of the 
Canadian Parliament. It was the result of frequent com- 
plaints that disabled veterans were unable to secure protec- 
tion in the ordinary way. The act is administered by the 
Board of Pension Commissioners for Canada. 

Up to December 1 there were 1,01.5 applications for insur- 
ance under the act. The total value of the insurance repre- 
sented in these applications is $3,282,000, and the premiuiTis 
received up to November 27 totalled $26,711. In compliance 
with the act. all the applications have been received since 
September 1. During September only 160 applications were 
received, all the others coming in October and November. 

Majority Are Physically Fit 

Among the applicants are included every rank from pri- 
vate to major-general, although privates form the majority of 
the policy-holders to date. With so many tuberculous soldiers 
in sanitariums and others throughout Canada suffering from 
one disability or another, it is a remarkable fact that so far 
the majority of applicants have been men suffering from no 
disability whatever. It is estimated that 60 per cent, of those 
taking policies to date are first-class risks. This statement is 
made on the ground that three-fifths of those taking insurance 
have not suffered any illness since their discharge. Of the 
1,175 in sanitariums suffering from tuberculosis very few have 
taken advantage of this insurance. 

Of the 87.5 policies issued up to November 15th, 393 were 
to pensioners for $1,158,000 and 482 to non-pensioners for $1,- 
722,000. The liability to pensioners is somewhat restricted 
although they are fully protected. If a pensioner were to die 
of any other cause than his disability resulting from the wa • 
Tiis heirs would not get his pension, and in that case the full 
amount of the insurance would go to them. If, however, a 
pensioner does die of his disability, and the pension going to 
his heirs is greater in capital value than the insurance, ths 
heirs will receive under the act the total value of the premiums 
paid with compound interest at 4 per cent. If there is a pen- 
sion the total capital value of which, is less than that of the 
insurance in force, the amount in excess will be paid. 

Average Policy Is High 

Policies are issued for a minimum of $500 and for multi- 
ples thereof, not exceeding $5,000. That a large number are 
taking full advantage of the insurance offered is evident when 
it is stated that an average unit of the policies held would bo 
$3,600. Practically all the officers and many privates take full 
advantage of the opportunities offered by the act. The scale 
of premiums is below that offered by the insurance companies 
and slightly higher than that offered to civil servants. The 
most popular forms of policies are the "all life" and the "twen- 
ty-year pay life" policies. 

Premiums are payable monthly, quarterly, half-yearly or 
voarlv. As no advantage is given for the longer period pay- 



ments, the great majority of the policy-holders have chosen 
the monthly payment plan. No woman has yet taken advan- 
tage of the plan, although the widow of a soldier who died 
after his discharge or a widowed mother are entitled to avail 
themselves of it. So far few soldiers who only served in 
Canada have taken insurance under the act, the name of the 
act, "The Returned Soldiers' Insurance Act," having probably 
made them think mistakenly that they could not qualify. No 
applications have been received from any Frenchman, Italirn 
or American who was resident in Canada before the war and 
who served in one of the allied armies, although such veter- 
ans, too, are eligible. Nurses are eligible, and W.A.A.C.'s, 
but V.A.D.'s, not having been subject to military discipline, 
would not be eligible. Insurance men have co-operated in the 
work, advising many men who could not qualify for their com- 
panies of the federal plan. 

Business by Provinces 

Ontario has furnished the largest proportion of the policy- 
holders. Up to two weeks ago the policy-holders were distrio- 
uted among the provinces as follows: Prince Edward Island, 
0; Nova Scotia, 20 risks for $61,000 insurance; New Bruns- 
wick, 16 risks for $63,000; Quebec, 103 risks for $361,500; On- 
tario, 429 risks for $1,375,500; Manitoba, 84 risks for $254,- 
000; Alberta, 60 risks for $196,000; Saskatchewan, 68 risks for 
$242,500; British Columbia, 94 I'isks for $321,500; and the 
Yukon, one risk for $5,000. No claims have been paid as yer,. 

Before the opening of parliament this year the govern- 
ment will consider the adding of unemployment insurance to 
the business it has already established in returned soldieis' 
insurance, and in civil service insurance. As considerable un 
employment is expected through the winter, the minister o" 
labor may urge that unemployment insurance, operated as 
complementary to the federal system of labor bureaus, would 
be practical politics. 

In Force for Two Years 

A statement issued by the board outlines some of the fea- 
tures of the act as follows: 

"All returned soldiers and their families will be interested 
in the Returned Soldiers' Insurance Act, under which they are 
provided with an opportunity of obtaining life insurance at 
most favorable rates. The act became effective on Septem- 
ber 1st, 1920, and will remain in force for two years. 

"Under the provisions of the act any honorably discharged 
soldier, sailor, or nurse, of the Canadian forces, domiciled and 
resident in Canada, may insure with the government to an 
amount of from $500 to $5,000. Under certain conditions the 
widow of a returned soldier who died subsequent to discharije 
may also obtain insurance. 

"In addition to former members of the C.E.F., the privi- 
leges of the act ai-e available to anyone, male or female, wh:) 
served during the late war in the Imperial Army or with the 
forces of any of the allied or associated powers, providing they 



January 7, 1921 



THE MONETARY TIMES 



171 



were domiciled and resident in Canada before the war and 
hold an honorable discharge. 

"Many of those who served overseas, while not sufferi.ia: 
from a severe disability, find that their physical condition is 
such that they are unable to obtain life insurance at all or only 
at much higher rates than are normally demanded. They, 
therefore, find themselves severely handicapped in providing 
protection for their dependents. Under the Returned Soldiers' 
Insurance Act all returned men are placed on an equal basis 
as no medical examination is requii-ed. 

Premium Rates 

"The premium rates are low. They vary with the age of 
of the insured and the plan of insurance chosen. At the age 
of 25 a straight life policy for $1,000 costs $1.24 per montn. 
At the age of 35 the rate is $1.70 per month. Beneficiaries 
are limited in the case of a married man to his wife and chil- 
dren. An unmarried man or a widower without children is 
required to name his future wife and childi-en as beneficiaries. 
Should the insured die unmarried the insurance money may be 
paid to one or more of his immediate relatives according to his 
will. 

"An exceptional advantage of this insurance is the provi- 
sion made for a disability benefit. Under this section, should 
the policy-holder become totally and permanently disabled, he 
is relieved from paying further premiums and the insurance 
money is paid to him direct in annual instalments equal to 
one-twentieth of the total amount of the policy. 

"Booklets explaining the act and application forms may be 
obtained from all branches of the Great War Veterans' Asso- 
ciation, the Soldiers' Aid Commission, Imperial Veterans of 
Canada, Grand Army of United Veterans, Army and Navj- 
Veterans, Department of Soldiers' Civil Ro-establishmen:, 
military district headquartei-s and district oflices of the Board 
of Pension Commissioners, or direct from the Commissioners, 
Returned Soldiers' Insurance, Transportation Building, Ot- 
tawa." 

Text of the Act 

Some of the provisions of the act are as follows: — 

"3. (1) The minister may enter into an insurance con- 
tract with any returned soldier domiciled and resident in Can- 
ada or with any widow so dimiciled and resident, providing for 
the payment of five hundred dollars or any multiple thereof, 
not, however, exceeding five thousand dollars in the event of 
the death of the insured. 

"(2) The said payment shall, as to an amount not exceed- 
ing one-fifth thereof, be made on the death of the insured and 
the remainder, or the portion thereof to which any beneficiary 
is entitled, shall at the option of the insured be payable as a 
life annuity or as an annuity certain for five, ten, fifteen or 
twenty years, or as an annuity guaranteed for five, ten, fif- 
teen or twenty years, and payable thereafter as long as the 
beneficiary may live. 

"(3) Any option as to the mode of payment, cho.sen by the 
insured in his application for insurance, may be subsequently 
varied by declaration of the insured endorsed upon or attached 
to the policy. 

"(4) The said option as to made of payment chosen by 
the insured may after the death of the insured be varied by the 
beneficiary, with the consent of the minister. 

"(5) The contract may also provide that if the insured 
becomes totally and permanently disabled and rendered incapa- 
ble of pursuing continuously any substantial gainful occupa- 
tion, and if such disability is not deemed to be attributable to 
his service so as to bring him under the provisions of The 
Pension Act, the premiums thereafter falling due under the 
contract shall be waived and the insured shall be entitled to 
receive as a disability benefit an annual payment not exceed- 
ing one-twentieth of the sum insured, the said benefit to con- 
tinue during the lifetime of the insured but not to exceed 
twenty such payments in all; and that if the insured dies be- 
fore the twentieth such payment has been made the balance of 
the sum assured shall be payable as a death benefit, in ac- 
cordance with the provisions of this section. 
(Continued on page 172) 



THE MERCHANTS BANK OF CANADA 
QUARTERLY DIVIDEND 

A Dividend of Three Per Cent, for the Current Quarter, 
being at the rate of Twelve Per Cent, per annum, upon the 
Paid Up Capital Stock of the Bank, was declared payable on 
1st February next to Shareholders of record on the evening 
of 15th January, stock not fully paid up on 1st November to 
participate from that date on the amounts then paid up and 
on subsequent payments from the dates thereof. 
By Order of the Board. 

D. C. MACAROW, 

General Manager. 
Montreal, 28th December, 1920. ' 346 

DOMINION TEXTILE COMPANY, LIMITED 
NOTICE OF DIVIDEND 

A dividend of one and three-quarter per cent. (1%%) 
on the Preferred Stock of the Dominion Textile Company, 
Limited, has been declared for the quarter ending 31st De- 
cember, 1920, payable January 15th, 1921, to shareholders of 
record December 31st, 1920. 

By Order of the Board. 

JAS. H. WEBB, 

Secretary-Treasurer. 
Montreal, 6th December, 1920. 342 



NOVA SCOTIA STEEL AND COAL COMPANY, LTD. 

DIVIDEND NOTICE 

A dividend of two per cent. (2%) on the Preferred Stock 
and one and one-quarter per cent. (l'/4%) on the Ordinary 
Stock of the Company has been declared, payable on the 
15th January, 1921, to shareholders of record at the close of 
business on December 31st, 1920. 

By Order of the Board. 

THOMAS GREEN, 

Cashier. 
New Glasgow, Nova Scotia, December 20, 1920. 345 



THE BANK OF TORONTO 

ANNUAL MEETING 

The Annual General Meeting of Shareholders of this 

Bank will be held at the Banking House of the Institution, 

corner of King and Bay Streets, Toronto, on Wednesday, the 

twelfth day of January next, the chair to be taken at noon. 

THOS. F. HOW, 

General Manager. 
The Bank of Toronto, 

Toronto, November 20th, 1920. 323 

MARCUS LOEWS THEATRES, LIMITED 

The Directors have declared a Dividend of one and three- 
quarter per cent, on the prefei'ence stock for the quarter 
ending the 31st December, 1920, payable on the 15th day of 
January, 1921, to shareholders of record on the 31st day of 
December, 1920. 

Bv Order of the Board. 

SAMUEL D. FOWLER, 

Secretarj-. 
Toronto, 31st December, 1920. 



THE MONETARY TIMES 



Volume 66 



SOLDIERS' INSURANCE ACT PRODUCES BUSINESS 

(Continued from page 171) 

"A. The said payments shall be made to the wife, hus- 
band, child, grandchild, parent, brother or sister of the insurod 
or such other person as may by regulation as hereinafter pro- 
vided be declared to be entitled to become a beneficiary under 
the contract. 

"5. If the insured is a married man, or a widower with a 
child or children, the contract shall be for the benefit of his 
wife, or of his children, or of some one or more of his chil- 
dren, or of his wife and some one or more of his children; and 
when the contract is effected for the benefit of more than one, 
the insured may apportion the insurance money among them 
as he deems fit. 

"6. If the insured is an unmarried man or a widower 
without children, the insurance contract shall be for the bene- 
fit of his future wife, or of his future wife and children, and 
the insured may apportion the insurance money among them, 
as he deems fit; but if at his death he is still unmarried or is 
a widower without children the insurance money shall, subject 
to sections four and eleven of this act, fall into and become 
part of the estate of the insured. 

"7. (1) If the insured is a female and the contract is ef- 
fected for the benefit of more than one beneficiary the insured 
may apportion the insurance money among them as she deems 
fit. 

"(2) If the insured is a widow the contract shall be for 
the benefit of such person or persons within the classes men- 
tioned in section four hereof as may be shown to the satis- 
faction of the minister to be to a substantial extent dependent 
upon the widow for support. 

"8. Any apportionment under the next three preceding 
sections may be made in the insurance contract, or by a dec- 
laration endorsed thereon or annexed thereto and signed by tbe 
insured. 

If Beneficiary Dies 

"9. (1) Where an apportionment has been made as pro- 
vided in sections five and six of this act, and one or more of 
the persons in whose favor the apportionment has been made 
die in the life-time of the insured, the insured may, by an 
instrument in WTiting endorsed on or attached to the insurance 
contract, declare that the shares formerly apportioned to the 
persons so dying shall be for the benefit of the wife and chil- 
dren of the insured, or for one or more of them as he sees fit. 

"(2) In default of such declaration the shares of the per- 
sons so dying shall be for the benefit of the sui-vivor or sur- 
vivors of the persons in whose favor the apportionment was ,:o 
made, in equal shares if more than one. 

"(3) If all the persons so entitled die in the life-time of 
the insured, the insured may by an instrument in ^VTiting en- 
dorsed on or attached to the insurance contract declare that 
the insurance money shall be for the benefit of his wife, if 
living, or of his surviving children, if any, or some one or 
more of them, or of his wife and children, or of his wife and 
some one or more of his children, in such proportions as he 
sees fit, and in default of such declaration, the insurance shall 
be for the benefit of his wife, if living, and of his children, if 
any, in equal shares. 

"(4) If the insured survives his wife and all his cliildi'en 
the insurance money shall, subject to section four of this act, 
fall into and become part of the estate of the insured. 

"(5) A duplicate of every declaration made in pursuance 
of this and the next preceding section shall be filed with the 
minister at the time such declaration is made. 

Relation to Pensions 

"10. If on the death of the insured a pension becomes 
payable under The Pension Act to any person or persons 
within the classes mentioned in section four of this act, there 
shall be deducted from the benefit payable under this act the 
aggregate present value of the pension or pensions so payable 
computed on such bases as may be prescribed by regulation 
made under the provisions of section seventeen of this act, 



and in such case there shall be returned to the beneficiary or 
beneficiaries in proportion to their respective interests under 
the contract the proportion of the premiums paid (with inter- 
est at four per cent, per annum, compounded annually), which 
the amount of the said deduction is of the total amount as- 
sured under the contract. 

"11. (1) If the insured survives all the persons to whom 
the death benefit may be paid under the provisions of section 
four of this act, or if all the said persons die before the pay- 
ment of the instalments of the death benefit have been com- 
pleted, the estate of the insured shall be entitled to receive 
.only the amount by which the reserve under the contract at 
the time of the death of the insured, exceeds the sum of the 
payments so made. 

"(2) In this section the word 'reserve' means the net pre- 
mium value of the contract on the basis of the British Offices 
Life Tables, 1893, Om (5), vnth interest at the rate of four per 
cent, per annum. 

"12. When no apportionment is made of the insurance 
money as hereinbefore provided, all persons interested as bene- 
ficiaries under this Act shall be held to and shall share equally 
therein. 

"13. The minister may refuse to enter into an insurance 
contract in any case w>iere there are in his opinion sufficient 
grounds for his refusing. 

Premiums 

"14. (1) The insurance contract may provide for the pay- 
ment of a single premium, or of premiums uniform throughout 
the life-time of the insured, or during the life-time of the en- 
sured for a period of ten, fifteen or twenty years, or until he 
attains the age of sixty-five years; 

"(2) The premiums payable under the various plans of 
contract shall be those shown in the schedule to this act. 

"15. No medical examination or other evidence of insur- 
ability shall be required in respect of any contract issued un- 
der this act: Provided, however, that the minister may, for 
the purpose of determining whether he shall refuse to enter 
into a contract of insurance in any case under the provisions 
of section thirteen of this act, require such medical examina- 
tion or other evidence of insurability of the insured as he may 
deem necessary. 

"16. The insurance money payable under the contract 
shall be unassignable and shall not be subject to the claims of 
creditors of the insured or of the beneficiary. 

"18. The moneys received under the provisions of this 
act shall form part of the consolidated revenue fuVid, and the 
moneys payable under the said provisions shall be payable out 
of the said consolidated revenue fund. 

Administration 

"19. (1) The provisions of this act may be administered 
in such department or departments of the Government as the 
Governor-in-Council may from time to time determine. 

"(2) The superintendent of insurance or such other officer 
as may be appointed for that purpose by the Govemor-Jn- 
Council shall, within three months after the close of each fis- 
cal year, prepare for the minister a statement showing the 
amount received for premiums during the last fiscal year for 
all insurance contract entered into previous to the said date, 
the amount' of all sums paid in connection therewith during 
the said period, also the number of new contracts entered 
into) since the previous statement and the gross amount 
thereof, with such further details and particulars as the 
minister deems advisable. 

"(3) The minister shall lay the said statement before 
parliament within fifteen days after the statement has been 
submitted to him if parliament is then sitting, and. if not, then 
within fifteen days of the opening of the session of parlia- 
ment held next thereafter. 

"20. No application for insurance shall be received under 
this act after the first day of September, nineteen hundred 
and twenty-two. 

"21. This act shall come into force on the first day of 
September, one thousand nine hundred and twenty." 



January 7, 1921 



THE MONETARY TIMES 



Growth and Possibilities of Aviation Insurance 

A Development of the Past Two Years— Flying for Commercial Purposes 
May be Expected Soon— Three Companies Now Prepared to Write Business 
in Canada— Coverages, Terms and Rates— Some Results in the United States 

By HEDLEY C. WRIGHT 

Assistant Manager for Canada, London Guarantee and Accident Co., Ltd. 



THE business of Aviation Insurance did not take definite 
form until the spring of 1919, and our study of it will 
be interesting, not so much because of what it has been or 
of what it is, but rather because of what it is likely to be- 
come. 

It was only in 1909 that Bleriot made the first flight 
across the English Channel and only a few months back the 
first trans-Atlantic flight was made. 

Between the time of the first channel flight and the out- 
break of war, flying scarcely went beyond the experimental 
stages. Then on the outbreak of war it received an un- 
paralleled impetus. Neither men gr money were spared in 
its development; but it was all for war purposes. Since the 
armistice much attention has been given to the question of 
civil flying, which to-day is still but an infant in swaddling 
clothes. In the few moments at our disposal we will attempt 
to take a look into the future and see what justification there 
is for hoping that in the fullness of time the infant will 
grow into sturdy manhood. 

Good Field in Canada 

The commercial growth and prosperity of a country 
necessarily depend upon the means of transportation at that 
country's disposal. It is stated by those closely in touch with 
aeronautics that aviation can be wisely developed so that it 
becomes an eflScient means of transportation. And the pos- 
sibilities of commercial aviation seem to be more bright in 
Can&da than in many other countries, such as for example 
in the British Isles, where up to the present more has been 
done than here to develop the business. There the short 
distances, the completeness of railway transportation and 
prevalence of fog tend to limit air transport; but in Canada 
conditions are diflFerent. The big distances between our com- 
merical centres, the vast areas still to be surveyed and de- 
veloped, the clear atmosphere and the broad inland water- 
ways, lending themselves admirably to the use of flying 
boats, all invite the peaceful conquest of the air. 

Up to the present, commercial aviation has not taken 
really profitable or tangible shape anywhere, and possibly it 
is less developed in Canada than in most of the other coun- 
tries where it has been receiving attention. Amongst the 
aerial activities on this continent to date may be mentioned: 

1. The carrying of passengers for joy rides. It is rea- 
sonable to assume that the next development will be the 
carr>nng of business men as a time saver, as is being done 
by regular aerial passenger lines in Europe. 

2. Photographic and survey work. 

3. Mail carrying. 

4. Carrying small cargoes of goods. 

Conclusions of Air Conference 

Governments are recognizing the need for encouraging 
flying, and only the other week Mr. Winston Churchill, the 
Imperial Secretary for War. announced at the Air Confer- 
ence in London that the Imperial Government intended to 
help civil aviation by every means in their power. It is 
interesting to know in passing that the Air Conference in 
question came to two important conclusions. The first was 
that the state which first makes aviation pay commercially 



*An address before the Insurance Institute of Toronto. 



will win in the next war. And here it may be noted that 
Marshall Foch is reported to have stated that the next war 
will begin with a great battle in the air, and the side which 
wins that battle and gains control of the air will have a 
lasting advantage over the other side. It is further believed 
that in war time what the mercantile marine is to the navy, 
civil air fleets will be to the Royal Air Force. 

The second conclusion of the Air Conference was that 
commercial aviation in Great Britain, where the matter has 
been receiving considerable attention, is at present far from 
being a paying business. This being the case, we in Canada 
must not expect too great results too soon. 

The convention dealing with international air navigation 
matters will shortly come into being among all the allied 
states. The text of this convention was adopted by the 
Supreme Council of the Peace Conference in September, 1919, 
and defines the law on nationality marks, certificates of 
navigation, licenses for air pilots, aerial signalling, etc. The 
problem of custom duties has been based on the principle 
of the sovereign rights of all states to the atmosphere over 
their respective territories. 

Air Board in Canada 

The Canadian government is alive to the situation and 
has created an Air Board, whose functions are to super- 
vise all matters connected with aeronautics. The Air Regula- 
tions, 1920, issued by the board provide amongst other things 
for: — 

1. The examination and licensing of all pilots. 

2. The inspection, licensing and regulating of all air- 
craft, aerodromes and air stations. 

;i. The prescribing of aerial routes. 

4. The undertaking of such tt^-hnical research as may 
be required to develop aeronautics. 

5. The control and management of all aircraft and 
equipment necessary for the conduct of any of His Majesty's 
services. 

Insurance Will be Required 

Now as regards the insurance of aircraft. I need not 
remind this gathering that the credit system of a country 
depends upon insurance. And insurance on aircraft is na- 
turally essential to the success of commercial aviation; for, 
without insurance facilities, men will not risk their capital, 
pilots will not risk their limbs, passengers will not risk their 
lives, and merchants will not risk their goods in schemes 
of air transportation. 

As far as I know there are at the present time two 
American companies and one British company prepared to 
write fire casualty aviation insurance in Canada-, and we will 
now briefly examine the coverings obtainable and the ap- 
proximate premiums charged. 

1. Public Liability. — Taking care of all claims in excess 
of the first $50 against owners of aircraft for accidental 
bodily injury caused by the aircraft to any person other than 
an employee of the assured or passengers. Limits of 5 and 
10. Premium $100. 

2. Property Damage. — Providing for all claims in ex- 
cess of the first $50 for destruction of or damage to property 
not owned or controlled by the assured or conveyed by the 
aircraft of the assured. Rate 5 per cent. 

3. Collision Insurance. — Covering damages to the air- 
craft and necessary accessories whilst in or on the same, as 



174 



THE MONETARY TIMES 



Volume 66 



the direct result of accidental collision or impact with any 
object while the aircraft is in the air or on land or water 
under its own power. The first 20 per cent, of any loss or 
damage to the aircraft and also loss or damage to propeller 
and under-carriage are excluded. Rate 12 '/2 per cent. 

4. Fire Insui-ance. — Covering- loss or damage in excess 
of the first 10 per cent, caused (1) by fire, explosion, self 
ignition or lightning to the aircraft of the assured or to 
accessories whilst in or on the aircraft; (2) while being 
transported in any conveyance by land or water. Rate 4 
per cent. 

It may be of interest, while on the subject of fire hazard, 
to mention that following a crash a number of fires have 
been caused through heated parts of the engine coming into 
contact with gasoline vapour. At the present time an aero- 
plane on the ground is a much more hazaixlous fire risk than 
an automobile, because in the ca-se of an aeroplane there is 
very little chance of putting a fire out when it really has a 
start, particularly if the tanks are full. This means that 
the salvage is negligible. 

5. Theft Insurance. — Covering the assured against 
loss or damage in excess of the first 10 per cent, to the air- 
craft by burglary, theft, robbery or pilferage by any person 
or persons other than employees of the assured. Rate 1 per 
cent. 

The purpose of the various deductions is, of course, to 
impress upon the assured the fact that he is a co-insurer 
and to encourage him to exercise care. 

For Six-Months' Term 

The term of the policy is for six months covering the 
principal flying period in Canada up to the present. It is 
considered wise in any event to limit the term of the policy 
to six months. Aeroplanes are subject to considerable and 
rapid deterioration, and it is wise to have an opportunity of 
inspecting them before renewing the insurance. 

Cai-go insurance may also be obtained at an average 
rate of one quarter of one per cent. 

Personal accident insurance on pilots and passengers is 
also purchasable either by means of a coupon policy cover- 
ing from sunrise i.o sunset or by a policy for a longer term. 
The coupon rates for $5,000 for accidental death and $25 
per week for 26 weeks for total disability and $12.50 per 
week for partial disability for 26 weeks are $10 for a pilot 
and $5 for a passenger. A policy on a pilot on an annual 
basis is purchasable at the rate of approximately 10 per 
cent, on the amount of the principal sum insured. 

The commission payable on all classes of aviation in- 
surance is 10 per cent. 

Attitude of Life Companies 

As regards life insurance, the life companies in Canada 
have, I understand, discussed the situation from time to 
time, but they find difficulty, owing to the experimental na- 
ture of the business and the lack of adequate statistics, in 
arriving at a premium charge for life policies for aviators, 
and up to the present time the business is not being sought 
by the life companies. 

The rule of one of the large life companies is: — 

"No amateurs or aviators engaged in fancy or exhibi- 
tion performances will be accepted. Experienced aviators 
engaged in commercial or patrol work as pilots, or persons 
engaged in similar work as pa-ssengers, will be accepted for 
a maximum amount of $2,000 on any plan, except term in- 
surance, subject to a minimum extra premium of $50 per 
$1,000. The extra will vary, according to the degree of 
hazard involved." 

It would be helpful to the development of commercial 
aviation if the life companies could see their way clear to 
institute a class for aviators and pending the experimental 
stages of the business arrange a pool or in some other way 
work out a scheme which will enable them to encourage the 
development of aviation at not too great a cost to themselves. 



In underwriting aviation business, it is already re- 
cognized that many things must be taken into consideration, 
and undoubtedly there are many more which will be learned 
only by experience as the business develops. Here are some 
of the things to be taken into consideration: — 

1. Record of the firm who owns the machines — from 
knowledge of the company's record and personnel can be 
judged the spirit of its organization and whether the ground 
engineers are capable and careful at their work. Careless- 
ness with aeroplanes spells disaster. 

2. Types of machine and engine. — The reliability of 
the machine or engine can be judged from it past records, 
or in the case of a new type from the previous work of the 
designer. 

3. Record and standing of pilots. — A great percentage 
of the risk depends upon the pilot. He has control of the 
aeroplane, and no matter how good the machine may be, it 
can come to grief easily under the guidance of a bad pilot. 

4. Nature of flying being carried out. — This needs no 
explanation. Obviously a higher rate must be charged for a 
machine flying from Toronto to Calgary than for one flying 
from Toronto to Hamilton. Again, a machine engaged in 
photographic or survey work and flying away from a re- 
cognized air route is a far more serious hazard than that of 
a machine travelling on a regular air route and simply 
carrying passengers. 

It is customary to exclude covering an aircraft while it 
is flying between one hour after sunset and one hour before 
sunrise of any day. 

The rating of cargo is aff'eeted by methods used in pack- 
ing, whether it is easily damageable, the effect upon it 
through exposure to atmospheric conditions, and so on. 

Past Experience 

As already stated, it is difficult to secure statistics at 
this time. It may, however, be of interest to give a few 
figures which have been published on American and British 
civil aviation experience. The American experience for the 
year ending May, 1919, and derived from reports of the 
Washington, Philadelphia and New York postal service, sup- 
plies the following particulars: — 

Number of flights projected 1,263 

Number of flights accomplished 1,208 

Total mileage flown 128,255 

Number of parcels carried 193,021 

Total expenses in dollars 137,900 

Forced descents, due to Miiotor 37 

Forced descents, due to weather 53 

Deaths 2 

Accidents to persons • 6 

Total loss of machine 2 

Other losses 3 

It is of interest to compare the experience of British 
civil aviation, as given out by the British Air Ministi-y, cov- 
ering a period of six months: October, 1919, to March, 1920: — 

Number of flights 21,000 

Hours of flight 4,000 

Passengers carried 52,000 

Total mileage flown 303,000 

Accidents 13 

Deaths 2 

Pilots killed 2 

Pilots njured 6 

Passengers injured 10 

Passengers killed 1 in 10,000 

The results of the "Paris-London" express route over a 
period of fourteen weeks were as follows: — 

Flights projected 213 

Flights accomplished 177 

Flights abandoned 19 

Flights internapted 12 

Total miles flown 48,090 

Average speed per hour 104 



January 7, 1921 



THE MONETARY TIMES 



175 



The Prudential 

is an 

American Company 

Doing Business 

with Canadians 

Through 

Canadians 



Branch 

Offices 

in all 

Leading 

Canadian 

Cities 



l^RENGTHOF ?f V 
f; (GIBRALTAR Ufr 



^^^0^^. 



THE PRUDENTIAL 

Opened its First Canadian Office in 1909. 

Payments to Canadian policyholders to date, plus commissions 
and salaries to Canadian representatives, rentals and miscellaneous 
expenses of Canadian offices and investments in Canadian" bonds, 

EXCEED MATERIALLY 
the total premiums received from Canadian policyholders. 

This is sound evidence that this Company has done 
and is doing much to benefit Canada and its citizens 

The Prudential Insurance Company 



FORREST F. DRYDEN, President 



of America 



HOME OFFICE: NEWARK, N.J. 



INCORPORATED UNDER THE L.AWS OF THE ST.ATE OF NEW JERSEY 
Founded by John F. Dryden, Pioneer of Industrial Insurance in America 



THE MONETARY TIMES 



The Handley-Pajre Sei-vice, operating between London 
and Paris and London and Brussels, in November, 1919, car- 
ried 154 passengers and 19,900 pounds weight of parcels. 

It is probable that more authentic and extensive statis- 
tics will in due course be obtainable from the Canadian Air 
Board. 

Air Tossibilities Deserve Attention 

On the whole, I am persuaded that the aviation situation 
in Canada gives us cause for sane optimism rather than 
pessimism. Given reasonable support from the government, 
the public and the insurance companies, it should be a means 
of assisting materially in the development of the Dominion 
during the next twenty-five years. In some respects, perhaps, 
other countries are giving the matter more energetic atten- 



tion than ourselves. It may not be out of place here to call 
attention to the size of the Zeppelin, L. 71, which was re- 
cently surrendered by Germany to Great Britain. It is 745 
feet long and has a maximum speed of 75 miles per hour, 
and is equipped with engines of 2,100 horse-power. When 
flying at 45 miles per hour it is capable of remaining aloft 
for as long as a week and of traversing a distance of 8,000 
miles. In the light of this, who can tell where the next pro- 
gressive step will lead, or measure the magnitude of the 
future of aviation? 

Finally, I am confident that no Canadian will neglect any 
opportunity to make Canada greater, commerically, by means 
of aviation, and that no Britisher will fail to do his share 
in making the Empire invincible in the air, as on the sea, 
in all righteous causes. 



Uniform Conditions in Fire Insurance 

Some Comments on the Bill Drafted by Bar Association— All Canada Insurance Federa- 
tion Proposed Entire Policy Should Be Uniform — Conditions Primarily Affect Insured 

By T. L. MORRISEY 

President, All Canada Fire Insurance Federation, Manager for Canada, Union Assurance Society, Montreal 



1'^HIS act, as you know, has been under consideration by 
A the Canadian Bar Association for the past three or four 
years and the provisionally approved act now before you is 
the result of the combined wisdom of that body. Is it a^ny 
wonder, therefore, that I approach the subject, or offer any- 
thing in the way of criticism with fear and trepidation. 
I intend to hedge, however, and claim "the whole without 
prejudice." 

Before discussing the merits — it is hard to get away 
from the legal terminology — I would like to acknowledge on 
behalf of those engaged in the fire insurance trade — vide privy 
council decisions — the debt of gr&titude they are under to 
the Bar Association for the good work it has done in ad- 
vancing the movement for uniform policy conditions through- 
out Canada to its present stage. 

Concern of Premium Payers 

I should also like to take adva^ntage of this opportunity 
of directing attention to a popular delusion that this is a 
question between the insuring public and insurance com- 
panies. Nothing could be further from the truth. It is ad- 
mitted it would be a convenience to insurance companies to 
have uniform conditions, but what these conditions may be 
interests insurance companies lea-st of all. They can adapt 
themselves to any conditions. Those really interested are 
the people who pay premiums to insui-ance companies and 
the question resolves itself into one between the premium 
payers who have fires and the still greater number of pre- 
mium payers who don't, and as between the two the latter 
are far more entitled to consideration either M, the hands 
of our legislators or before the courts. 

The insurance company is simply the medium through 
which the two classes of premium payers carry on their 
operations; and that fact once admitted, it must be recog- 
nized that anything unduly favoring the class who have fires 
can only be at the expense of the class who do not have fires. 
Much has been said and written of late regarding the fearful 
fire waste of the country. Is it not time that a practical step 
be taken towards curbing that fire waste? Discourage the fire 
waster and encourage the property conserver and you have 
taken such a step. 

Policies Might be Uniform 

Let us now get down to the consideration of the question 
before the meeting. The All Canada Fire Insurance Federa- 



tion, which body I speak for, was extended the courtesy of 
reviewing the draft act and given the opportunity of offering 
criticism and suggestion. Our first suggestion was that it 
would be adva^ntageous to have not merely the conditions but 
the whole policy form standardized as they have in the State 
of New York; the advantage of this is that every insurer 
would define in identical language the risk assumed. What 
the objection is has not been disclosed, but the suggestion has 
not been adopted. 

Criticism is offered most respectfully on the following 
items :— 

Section 2, Subsection 4, Interpretation. — We suggest 
amplification and that the subsection read: "Property in- 
cludes use and occupancy, rents, charges and profits, where 
these form the subject matter of insurance." 

Section 4, Contents of Policy. — The policy is a con- 
tract between the parties — the assured and the insurer — and 
it must of necessity contain the names of the parties. The 
section also provides that the name of the person to whom 
payable shall appear. If, as in the majority of cases, the 
money is payable to the assured, as already stated his name 
cannot help but appear; if to a third party, it is hardly con- 
ceivable how the loss could be made payable to any such 
party without expressing his name. 

As to the additional requirements of the section, the sub- 
ject matter of the insurance, the indemnity for which the 
company may become liable, the event on the happening of 
which such liability accrues, — 

What better argument could be adduced in favor of a 
standard form ? 

Exception Suggested 

Another suggestion of ours which evidently did not find 
favor with the commissioners was that the exceptions in- 
clude: — 

Loss by theft. 

Where assured has not used every effort to save 



Where a building or material part thereof has 



, *An address before the provincial insurance superinten- 
dents' conference, Winnipeg. 



(1) 

(2) 
property. 

(3) 
fallen. 

The argument is: — 

(1) Loss by theft is not loss by fire. Where such loss 
is not excepted it leaves the door open to fraud. 

(2) Where the property is under the control of one 
party to the contract it should be incumbent on that party 
to do his best to prevent its destruction. 



January 7, 1921 



T H E M O N E T A R Y T I M E S 1'?'^ 

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I 
I 



i 




The Ever Progressive Mutual 





To meet changing conditions, life insurance 
experts have continued to evolve more liberal 
policies until to-day it would seem as if every 
possible benefit had been included. 

The development of life insurance has been 
rapid, not only in the number of policies issued 
but also in the more liberal conditions incorpo- 
rated in the contracts, and the Mutual Life of 
Canada has either initiated or adopted every 
improvement consistent with safety that has 
been made in the modern life insurance 
policy. 



Mutual policies 'are payable immcJiatcly 
upon receipt of proofs^of death. 

Mutual policies'are indisputable after two 
years from date of issue. 

Mutual policies impose no restriction on 
account of residence, travel or occupation 
(excepting military or aeronautic service). 

Mutual policies give the assured one 
month in which to make payment of the 
premium. 



Mutual policies provide for liberal cash 
surrender values, or in place of cash the 
company will issue paid-up insurance or 
term insurance equivalent in value to the 
cash surrender value. 

Mutual policies can be secured payable 
by monthly instalments throughout the 
life-time of the beneficiary, and if the 
policy is on the endowment plan the pay- 
ments continue until the death of the 
survivor, whether assured or beneficiary. 



Mutual policies can be secured which provide that the 
premiums shall be waived in the event of total and per- 
manent disability overtaking the assured before reaching 
the age of sixty. Not only so but the company will begin 
to pay to the assured a monthly income, which will not be 
deducted from the value of these contracts at maturity. 

Write for particulars of Mutual Life contracts. 

THE MUTUAL LIFE ASSURANCE CO. 

OF CANADA 

Waterloo - - - Ontario 




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178 



THE MONETARY TIMES 



Volume 66 



(3) Where a building or material part has fallen the 
character of the risk has changed and its value may have 
disappeared. 

Section 7, Coinsurance 

This condition provides that where a policy contains a 
coinsurance clause, it shall have stamped on its face, "This 
policy contains a coinsurance clause," but it goes on to say 
the clause shall be deemed an addition and as such subject 
to the provisions of section 6 — i.e., left to the Courts to say 
whether it is just and reasonable. The reason is not ap- 
parent. Coinsurance is simple in its application. If it is ever 
just and reasonable, it is always just and reasonable. My 
own personal view is that the practice of insuring property 
without the clause is unjust and unreasonable. There is no 
more reason for expecting a company to sell indemnity with- 
out providing for coinsurance than there would be to expect 
the drygoods man to use a 36-in. yard stick when selling to 
one customer and a 40-in. yard stick when selling to another, 
or the grocer to sell to one customer at 16 oz. to the pound 
and 20 oz. to another. 

Another telling illustration that has been used is: The 
issue of policies free from coinsurance is equivalent to fixing 
the rate of taxation and allowing the property owner to do 
his own assessing. To preserve the equities between the 
parties all policies should be subject to coinsurance and the 
rate graded according to the percentage of insurance to 
value agreed upon. 

Our suggestion is that the objectionable words be struck 
out, making the wording to conform to the present Ontario 
statute and that the section be transposed to follow section 4. 

Statutory Conditions Property Not Insured 

The original draft specified what was not insured under 
the final draft the words "unless otherwise stated in the 
policy" appear. This is very objectionable. Under the 
blanket form of policy now so commonly used, where the 
risk is described in such general terms, it might become 
necessary to specially except "money books of account, etc.," 
and even then it might necessitate the exception being intro- 
duced as a "variation." It would give rise to a lot of trouble 
and the words had better be struck out. If this provision be 
deemed necessary then we would suggest that the words 
"unless otherwise specifically stated in the policy" be sub- 
stituted. 

Four Risks Not Covered 

Our recommendation was to interpolate the words "di- 
rectly or indirectly," and add the word "Earthquake." The 
intention evidently is to except losses from the specified 
causes and it would certainly seem desirable to place the 
meaning beyond doubt. Riot and civil commotion insurance 
is becoming very common and whatever would tend to make 
clear where the liability under one form begins and the other 
ends would be welcomed. 

Earthquake is a catastrophe not contemplated in the 
ordinary fire hazard. Cover can very readily be obtained for 
all the excepted hazards at very low rates of premium. 

We would again urge that this section read: "Loss or 
damage caused directly or indirectly by invasion, insurrec- 
tion, riot, civil war or commotion, or military or usurped 
power, or by order of any civil authority; or by theft; or by 
earthquake; or by neglect of the assured to use all reason- 
able means to save and presei^ve the property at and after a 
fire or when the property is endangered by fire in neighbor- 
ing premises." Subsection (C), strike out the words "and 
consent." 

(4) 8 Use of Red Ink. — Amend by interpolating 
after the word "printing" the words "on the face of" and 
the word "except" the words "the number." 

(5) 1 Misrepresentatio'ns. — This is limited to misre- 
presentations made when "applying for insurance." It is 
equally important that misrepresentations made during the 
currency of the policy should void the policy. The present 
Ontario condition meets this objection and it should be 
adopted in its entirety. 



(6) 5 (b) The words "heating or cooking" might fairly 
be added after the words "refined oil for lighting." 

5 (c) Change of Title. — The original draft included "or 
in the case of chattels is mortgaged," but these words are 
omitted in final draft — a i-etrograde step. Such a fact is 
essentially "a fact material to the risk" and as such should 
be communicated to the insurer. 

(7) 5 (D) Add the words "or being a manufacturing 
establishment ceases to be operated for a period of thirty 
days." 

7. Material Change. — Substitute the conjunction "or" 
for "and," making it obligatory upon the assured to com- 
municate any change material to the risk within his "control 
or knowledge." 

9. Mortgagees and other Creditors. — The original draft 
required notice of assignment and consent of insurer, other- 
wise policy void; the final draft omits this formality and 
implies the right of an assured to assign his interest in the 
policy. This is a very radical departure from a settled prac- 
tice which has always been looked upon as vital to the con- 
tract of insurance. We cannot too strongly urge the rein- 
statement of the original condition. 

9. (b) It would seem sufficient to provide that the 
policy cannot be cancelled or altered without notice to mort- 
gagee. It is difficult to foresee how far-reaching the words 
"or otherwise dealt with" might be, and it is therefore sug- 
gested they be struck out. 

10. Termination of Insurance. — The words "at any time 
before loss" should be struck out. This limits the rights of 
insurer to cancel before loss. It frequently happens that the 
occurrence of a loss is the warning signal and the right of the 
insurer to cancel at any time before or after a loss should 
not be abridged in any way. 

11. Salvage. — The original draft required assured to 
make an inventory, omitted from final draft. Surely that is 
not an unreasonable requirement. How can the assured 
prove his loss without going through some such process. The 
obligation to prove the loss is on the assured, not the insurer. 
The duty of preparing an inventory ■ should be specifically 
laid upon the assured. 

15. Requirements After Loss. — This condition is more 
remarkable for what it does not conta-in than for what it 
contains. The assured is not even required to state his in- 
terest in the property destroyed. When the property is 
destroyed the insurer practically occupies the position of a 
purchaser and is entitled to full information as to the title 
of the property for which he is called upon to pay. 

17. Appraisement — Subsection (E) — This subsection 
which is entirely new seems to invite complications. The 
general practice is for the companies to act together in the 
adjustment of the loss, usually as » matter of self-interest, 
but just how this can be enforced is not quite apparent. 
Suppose one company stands out, should the appraisement 
be held up? How is an unlicensed company to be reached? 
Then for the lawyers to impose upon a poor unfortunate 
carpenter and builder the determination of the amounts to 
be paid under non-concurrent policies is surely going the 
limit. Why, some of the questions arising in such instances 
would puzzle their brethren from Philadelphia. The appor- 
tionment of costs as between the companies might safely be 
left to the companies to fight out amongst themselves. This 
subsection serves no useful purpose and might safely be 
omitted. 

MUTUAL LIFE'S PROGRESS 

The Mutual Life of Canada reports the following assur- 
ance secured during the first six months of the year: — 

Month. 1919. 1920. 

February $2,914,500 $4,511,609 

March 3,060,787 6,023.815 

April 3,664,387 4,271,172 

May 3,501,134 3,646,622 

June 3,727,720 3,984,547 

July 3,170,175 3,393,397 



January 7, 1921 



THE MONETARY TIMES 



179 



The Candle of 
Life is Burning 



Hour bj- hour the flame burns the caudle 
shorter until suddenly — a gust of wind — a 
flicker — and the flame expires. 

So with your life. You do not know 
when the gust may come that will extinguish 
the flame of your life, but you know that it 
will come. Perhaps soon. 

Familiarity with this fact often breeds in- 
difi"erence — indifference that results in suff"er- 
ing and privation to the family that might 
easily be prevented. 

Confederation Life Policies are designed 
to prevent this. Do you really know the ex- 
tent to which you and yours can be relie\ed of 
all chance of such misfortune t 

The Confederation Life Association is a 
Canadian Company of established reputation. 

It has for forty-nine years furnished the 
Canadian public with insurance service and 
has built up a large volume of business on the 
basis of absolute care for the interests of its 
policyholders, prompt and liberal settlement of 
all just claims and absolutely fair treatment of 
its agents. 

Interesting literature as to any or all plans 
of insurance will be gladly sent on application 
to the Head Office, Toronto, or to any agent 
of the company. 




CONFEDERATION LIFE ASSOCIATION 



J. K. MACDONALD 
President 



C. S. MACDONALD 
General Manager 



J. TOWER BOYD 
Gen. Manager of Agents 



HEAD OFFICE 



TORONTO 



180 



THE MONETARY TIMES 



Volume 66 



Conference on Uniformity of Legislation in Canada 

Model Fire Insurance Policy Act was One of Main Subjects Discussed this Year — 
Revised Draft will be Prepared— Consolidation of Statutes, Sales of Goods, Part- 
nerships, Labour Laws, and Devolution of Estates were other Subjects Discussed 



UNIFORM conditions in fire insurance policies was one of 
the subjects again taken up at this year's meeting of 
the Commissioners on Uniformity of Legislation in Canada, 
held in Ottawa, August 30 to September 3. The officers of 
the conference 1920-21 were as follows: — 

President, Sir James Aikcns, K.C., Winnipeg, Man.; vice- 
president. Mariner G. Teed, K.C., St. John, N.B.; treasurer, 
Frank Ford, K.C., Edmonton, Alta.; corresponding secretary, 
J. C. Elliot, London, Ont.; recording secretary, John D. 
Falconbridge, Toronto. 

Local Secretaries (for the purpose of communication 
between the commissioners of the different provinces) : — 
Alberta, Frank Ford, K.C., Edmonton; British Columbia, 
Avard V. Pineo, Parliament Buildings, Victoria; Manitoba, 
Herbert J. Symington, K.C., Merchants' Bank Building, Win- 
nipeg; New Brunswick, J. D. Pollard, Lewin, St. John; Nova 
Scotia, Stuart Jenks, K.C., Halifax; Ontario, John D. Falcon- 
bridge, 22 Chestnut Park, Toronto; Prince Edward Island, 
W. E. Bentley, K.C., Charlottetown; Quebec, E. Fabre Sur- 
veyer, K.C., 160 St. James St., Montreal; Saskatchewan, Robt. 
W. Shannon, K.C., Regina. 

It was ordered that the following resolution, adopted 
in 1918, "That the members of the Committee on Uniform 
Legislation of the Canadian Bar Association may attend this 
conference and participate in the discussion, but without the 
right to vote," should be communicated to the Canadian Bar 
Association, together with an invitation to all members of 
the association to attend any meetings of the conference. 

The Legitimation Act 

The report of the recording secretary on the Legitima- 
tion Act was presented. After discussion it was resolved 
that the conference receive the report of the secretary and 
the commissioners reporting on the adoption of the Legitima- 
tion Act by the provinces of Manitoba, Prince Edward Island, 
New Brunswick and Saskatchewan, and, while recognizing 
that the acts as adopted by those provinces are not identical 
in form but contain similar enactments, recommend to the 
provinces which shall enact this law that the shorter form of 
statute as found at page 53 of the Proceedings of the Con- 
ference, 1919, be adopted. 

The commissioners considered the question of the re- 
vision or consolidation of statutes and the indexing of 
statutes submitted by the committee on legislative drafting, 
and drew attention to the cumulative index now printed by 
the province of British Columbia as an excellent example. 
It was resolved that the commissioners go on record as ap- 
proving the publishing each year by the authorities of each 
province of cumulative index of the statutes from the date 
of^the last revision. 

The commissioners from British Columbia were requested 
to forward to the attorney-general of each of the provinces 
several copies of the sample index and a copy of the memor- 
andum. 

Sales of Goods and Partnership 

The committee on sales of goods and partnership re- 
ported that the Sales of Goods Act, 1893. was now in force 
in all the provinces of Canada, except Quebec, havino; been 
adopted in New Bi-unswick and Prince Edward Island at the 
instance of the commissioners from that province in 1919, and 
in Ontario upon similar recommendation in 1920; that the 
Factors Act, 1889, was in force in Alberta, British Columbia, 
New Brunswick, Nova Scotia, Ontario, Prince Edward Island 
and Saskatchewan, having been adopted in Prince Edward 
Island in 1920, and that it would probably be adopted in 
Manitoba in 1921, and that as a result of adoption on recom- 



mendation of commissioners in New Brunswick, Ontario and 
Prince Edward Island in 1920, the Partnership Act, 1890, was 
now in force in all the provinces of Canada except Quebec. 
A report as to the state of the law on these subjects in vari- 
ous British Dominions and with reference to limited partner- 
ships and registration of partnerships was also submitted to 
the conference. 

A draft of a proposed act respecting warehousemen's 
lienS" was presented by the commissioners from British 
Columbia, and was considered clause by clause and certain 
amendments adopted, and the act was subsequently referred 
to the commissioners of New Brunswick to draft a model bill 
and report at the next conference. 

Labor Laws 

Senator Robertson, Minister of Labor, addressed the 
commissioners on the subject of "Uniformity of Labor Laws 
in Canada," and referred to the advantage of uniformity in 
the laws relating to the welfare of those engaged in in- 
dustrial work in the several provinces of the Dominion of 
Canada; at the conclusion of his address the subjects dis- 
cussed by him were referred to by the president, the vice- 
president and some of the other members of the conference. 

The report of the committee on a uniform Bulk Sales 
.4ct was presented by the commissioners of British Colum- 
bia, and was considered clause by clause, and after certain 
amendments were approved the act was referred to the Mani- 
toba commissioners to revise and forward copies to the com- 
missioners for submission to their respective legislatures. 

Fire Insurance Conditions 

The report of the committee upon a model statute on 
fire insurance conditions, together with a draft bill, was pre- 
sented by R. W. Shannon. The conference thereupon re- 
solved itself into committee of the whole and considered the 
bill section by section. Mr. Jenkins, representing the Can- 
adian Underwriters' Association, was present, and took part 
in the discussion of the act. After discussion of the remain- 
ing sections of the proposed act and deciding upon some 
changes therein, the act was referred to the Manitoba com- 
missioners and Mr. Shannon, to be redrafted in accordance 
with the amendment decided upon, and reprinted and for- 
warded to the various commissioners to be by them brought 
before their legislatures. 

W. B. Wallace presented the report of the committee to 
which had been referi-ed the Conditional Sales Act, and the 
Draft Act submitted was discussed at some length. 

Devolution of Estates 

Francis King presented the report of the committee on 
the devolution of estates. On motion of Mr. Ellis, seconded 
by Mr. Pitblado, it was resolved that the conference affirm 
the principle of the desirability of uniformity of laws with 
respect to the devolution of estates, .both real and personal. 

On motion of Mr. Pitblado, seconded by Mr. Symington, 
it was resolved that in endeavoring to bring about uniformity 
of legislation in regard to the devolution of estates, real and 
personal property of intestates should be treated in the 
same manner. After discussing the various principles of the 
proposed act it was resolved that the matter of devolution of 
estates of intestates be referred back to the commissioners 
for Ontario, with instructions to draft a model act in the 
light of the discussion which had taken place, and to have 
copies of the act printed and sent to the commissioners for 



January 7, 1921 THEMONETARYTIMES 181 

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EXCELSIOR 



INSURANCE 



LI 



COMPANY 



A STRONG CANADIAN COMPANY 
ESTABLISHED 18S9 



Magnificent Results of the Operations of 1920 

NEW INSURANCE WRITTEN 
OVER $11,500,000.00 

INSURANCE IN FORCE 
OVER $40,500,000.00 



A continuous favorable mortality experience from only Canadian 
policyholders, high interest earnings combined with unsurpassed 
security are features which should influence you to place your 
insurance with the Excelsior. 



Particulars of our new Special Investment Policy will be sent on request. s 

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The Continental 

Fire Insurance Company 



Head Office : 

Trustee Building, 322 Main Street, 
WINNIPEG, MAN. 

General Agents for Alberta : 

H. B. Macdonald & Company, Limited, 

Calgary, Alberia 



General Fire Insurance 
Business Transacted 



Applications for Agencies invited. 

Insure in a Canadian Company whose funds 
are invested in Western Canada. 



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Reinsurances Placed with British and 
Foreign Companies 



Excess Covers 




li 



1CE3 LIMITED ^^Pll 



_ A. F. PEARSON & COY. m 

I /nsuronce Managers and Reinsurance Brokers g 

■ 25 Birchin Lane - London, E.C.3 I 

B Manager-R. M. MACLAREN Underwriter— Wm. J. FOX g 

I Secretary -ROBERT W. REID Mgr. Treaty Dept.-W. R. BEA VIS | 

^ Directors : ^ 

1 A. RENDTORFF ' FREDK. SMITH M 

1 OFFICES: 1 

H LONDON- (Htid Of fiet) - - 25. Birchin Une. E.C.3. m 

m LIVERPOOL - - - - 28, Exchange Slrwl E»«l. J 

m NEW YORK . . - - 3. South William Street. m 

■ Cable Aadrei.-"0»terlinga. LondoD" p 

I Toronto Office - 67, Yonge Street. | 

1 Telephone: MAIN 5037 J 

1 Telegrams: • OSTERLINCA. TORONTO'- M 

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THE MONETARY TIMES 



Volume 66 



the several provinces three months before the next session 
of the conference. 

The act respecting conditional sales of goods was dis- 
cussed clause by clause and certain amendments decided 
upon. 

The conference later resumed consideration in committee 
of the whole of the model bill respecting conditional sales 
of goods. It was resolved that this bill be referred to the 
Saskatchewan commissioners to redraft in the light of the 
discussion and having in mind the act adopted by the United 
States, and to report with a model act at the next session of 
the conference. 

Mr. H. J. Symington presented the report of the com- 
mittee on company law. After considerable discussion as to 
the abolition of the doctrine of tiltra vires and also as to 
whether incorporation should be by memorandum of associa- 
tion or letters patent the conference adjourned. 

The subject of wills, including any acts effecting the 
Wills Act, such as dower, courtesy, etc., was referred to the 
Alberta commissioners to bring in a report at next year's 
conference upon the whole subject with a view to having a 
model act based thereon. 

The question of reciprocal enforcements of judgments 
was referred to the Prince Edward Island commissioners to 
draft a model act and report at the next session of the con- 
ference. 

Property Rights 

The matter of the laws relating to the protection and 
property rights of married women was referred to the British 
Columbia commissioners with a request that they investigate 
and report on the laws of the different provinces relating to 
the above-named subject, such report to be the basis of 
future action. 

It was resolved that the president of the conference. Sir 
James Aikens, be requested to urge upon the governments 
of Quebec, Nova Scotia and Prince Edward Island the de- 
sirability of their appointing commissioners or representa- 
tives to this conference. 

It was resolved that the subject of succession duties, in- 
cluding probate, legacy and estate duties be referred to the 
commissioners from Nova Scotia to investigate and report 
thereon to the conference with such suggestions as they 
deem advisable. 

Reverting again to company • law, on motion of Mr. 
Pitblado, it was resolved that any model act drawn make 
provision for doing away entirely with the doctrines of 
ultra vires in so far as it relates to corporate contracts along 
the line of the resolution passed by the Canadian Bar Asso- 
ciation in 1919, but that at the same time the model act 
attempt to give some protection to the shareholders or 
creditor if the company is engaged or attempting to engage 
in business outside the scope of the objects of incorporation. 

On motion of Mr. Symington it was resolved that the 
Manitoba commissioners be instructed to draft the proposed 
act in accordance with the principle of incorporation by 
memorandum of association. 

It was resolved after some further discussion that the 
matter of the company law be referred back to the Manitoba 
commissioners for the purpose of drafting a model uniform 
act upon the subject in the light of the discussion, and recom- 
mendations that have been made at this meeting, and to re- 
port at the next meeting of the conference. 

Officers of the conference were elected for the ensuing 
year as follows: President, Sir James Aikens, K.C. ; vice- 
president, Mariner G. Teed, K.C; treasurer, Frank Ford, 
K.C; corresponding secretary, J. C Elliott; recording secre- 
tary, John D. Falconbridge. 

It was resolved that in 1921 the conference meet four 
days before the opening of the Bar Association Convention. 

It was resolved that the corresponding secretary be re- 
quested to notify the different commissioners at least one 
month in advance of the time and place of meeting of the 
conference, and that at the earliest moment copies of the 
minutes and verbatim report of the discussion be sent to the 
local secretaries of the commission. 



PLATE GLASS INSUR.ANCE UNDER HIGHER RATES 

Result of Rapid Rise in Value of Glass — Supply Now More 
Plentiful, However 

By a. Wy^urn Eastmuee 
Managing Director, Casualty Company of Canada 

CONDITIONS arising out of the war have been a logical ex- 
cuse and explanation for the enormous increase in the 
price of practically all staple goods, and plate glass is no ex- 
ception. Plate glass is imported into this country, a fact 
which, coupled with the high freight rates and transportation 
risk, is an adequate reason for the prevailing price and 
high premiums now charged for the insurance of plate glass. 

Although realizing that war conditions were not always 
to exist, companies insuring glass were, until July last, loathe 
to put into force such increases in the premium rates as the 
glass market warranted, yet the experiences of the past four 
years rendered it absolutely necessary that an increase of ap- 
proximately 100 per cent, should be made throughout the 
whole Dominion. It is impossible to forecast an immediate 
reduction in insurance rates, but ovnng to the fact that Bel- 
gium and Southern France, Canada's chief source of supply, 
are again manufacturing and exporting, the trade outlook is 
somewhat improved; this, combined with the decline in the 
automobile industry, which used many thousand square feet 
of plate glass annually in the manufacture of windshields, and 
the enforcement of the present building restrictions, once more 
enables dealers to stock up and meet the ever-increasing de- 
mand. 

With glass premiums assuming such large proportions — 
in many cases more than double what they were last year — 
the question is constantly asked whether the landlord or the 
tenant should bear the expense, and a curious fact not gener- 
ally known is that unless dealt with by specific agreement 
neither one nor the other is legally responsible for broken 
plate glass. 

Tenant Sometimes Bears Loss 

Experience has proved that it is a wise tenant who car- 
ries insurance, taking care that the expenditure is accounted 
for under the terms of his lease. True, the landlord is re- 
sponsible for glass broken by lightning, tempest or the settle- 
ment of a building owing to structural defects, but breakages 
may be due to many other causes such as defective setting, 
window dressing, slamming of doors, stones thrown by pass- 
ing vehicles, or the pranks of small boys, not to mention the 
ninety and nine cases reported to the companies daily as due 
to "unknown causes." 

A plate glass policy is self-protection to the holder, in 
that he can effect immediate replacement through his insur- 
ing company, instead of being put to the inconvenience of first 
getting in touch with his landlord (who, like the policeman, is 
never there when wanted), and with whom, when found, an 
argument as to who should assume the liability usually ensues, 
resulting often in considerable delay. 

Insurance Companies Replace Glass More Cheaply 

The yearly cost to owners and tenants for replacing 
breakages of uninsured glass is sufficient to pay the premiums 
on all lights not covered by policies, and investigation dis- 
closes the fact that individual customers pay more for such 
work than is paid for similar leplacements made through an 
insurance company. The reason for this is that insurance 
companies are large users and can purchase plate glass at 
better prices than the individual; they also possess every 
facility for handling same and for making replacements. 

Plate glass was never a more legitimate subject for insur- 
ance than it is to-day, and the protection provided is now re- 
garded as a real necessity to the property owner and tenant. 

In 1919 plate glass insurance in Canada was transacted 
by twenty-five companies, viz.: Twelve Canadian, seven Brit- 
ish and six foreign companies. The premiums received dur- 
ing the year were $375,473.00 and total losses paid $226,- 
206.00, showing a loss percentage as applied to premium in- 
come of 60.5 per cent. Data is not yet available for the present 
year, but it is hoped that it will show a more favorable ratio. 



January 7, 1921 THE MONETARY TIMES 



■Your 



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M. P. LANGSTAFF, A.I.A., F.A.S. S. C. TWEED 

Assistant Manager and Actuary President and Managing Director 



184 



THE MONETAKY TIMES 



Volume 66 



Canadian Hail Underwriters' Association Results 

Good Results Reviewed at Annual Meeting in Toronto in November- 
Loss Ratios, Manitoba 24.2 Per Cent., Saskatchewan, 41.8 Per Cent., 
Alberta, 34.4 Per Cent.— Competition With Municipal Insurance Scheme 



MOST of the companies writing hail insurance in western 
Canada are members of the Canadian Hail Underwriters' 
Association. This organization held its annual meeting iu 
Toronto on November 19 last, when the results for 1920 were 
reviewed. The secretai-y, H. H. Campkin, of Regina, had sum- 
marized the figures for the companies. He said in part:— 

"The season of 1920 has proven a satisfactory one to the 
majority of the members. A glance at the map of the 1920 
experience will show that the severe storm centres have been 
small but that there has been a considerable amount of scat- 
tered hail throughout all the provinces. The high prices of all 
cereal commodities have caused the farmers to seek more pro- 
tection and this factor should not be lost sight of in consider- 
ing the season's operations. And, further, owing to the fail- 
ure of the 1919 crop in the western part of Saskatchewan, 
and parts of' Alberta, farmers were compelled to take insur- 
ance to satisfy their creditors. With the exception of the 
province of Manitoba and a number of the townships in east- 
em Saskatchewan the majority of the townships show a lai-ge 
increase over the business of previous years. 

"In preparing the various statements submitted to you 
throughout the year the fact was not lost sight of that many 
of the head offices were far removed from the scene of actual 
operations, and the information was therefore compiled with 
the view of allowing the figures to speak for themselves. If, 
however, this method fails, to furnish the information that is 
required suggestions would be appreciated as to the best 
means of conveying same. The companies having their head 
offices in western Canada naturally base their operations on 
their own, and observed, experience. 

Province of Alberta 

"The premiums received by members of the association 
this year amount to $2,172,189 with losses of $746,583 _as com- 
pared with $691,096 premiums and $328,827 losses last year, 
or a loss ratio of 34.4 per cent, as compared with 47.58 per 
cent, in 1919. The premium income of the association has 
been affected by the successful operations of the municipal 
scheme in force in that province. They have, I understand, 
promulgated a rate of 6 per cent., which will cover their 
losses and expenses and provide a reserve. 

"In reference to the reduced area (which is the four 
ranges west of the western boundary of Saskatchewan to 
township 46, etc.) the premiums collected in this area this 
year were $124,446 with losses of $28,896 as compared with 
$4,685 premiums and $5,055 losses of last year. 

"In surcharge areas (in toN\Tiships 41, 42, 43 and 44, in 
ranges 11, etc.) the premium income this year is $63,384 with 
losses of $14497. Evidently the rate is detrimental to the 
receipt of business, for in 1918, which was the first year of 
the surcharge, the pi'emiums received in the same area were 
$138,799 with losses of $8,403. In surcharge district No. 2 
(being townships 51, 52 and 53, in ranges 27, etc.) the pre- 
miums received this year were $3,376 with losses of $1,658, 
.rhile in 1918 the premiums received from the same area were 
$11,180 with losses of $.337. 

"The business for 1920 was written in 1336 townships. Of 
these 929 reported no losses; 202 had losses under 25 per cent.; 
66 had losses under 50 per cent., and 139 had losses of 70 per 
cent, and over. The largest amount of premium received in 
any one township was $16,294 and the smallest $5.00. The 
largest amount of loss in any one township was ^27,509 and 
the smallest $10.00. 

"During the summer letters have been received from locul 
agents complaining of the rates charged and pointing to the 
favorable experience their particular district enjoyed, and 
while no reports have reached me of non-association com- 
panies writing at a much reduced rate there appears to be a 



strong feeling with the field force that the rates in certain 
areas do prevent the obtaining of business. 

Province of Saskatchewan 

"With the exception of the southeastern part of the prov- 
ince crop conditions have been fairly good and the business 
was more distributed thi'oughout the province this year than 
in any previous one. The business written by the members n 
1920 amounts to $3,607,951 with losses of $1,509,004 as com- 
pared with $2,122,485 premiums and $1,659,652 losses of last 
year. The loss ratio this year was 41.8 per cent, as com- 
pared with 78.20 per cent, last year. 

"The northern part of the province escaped any severe 
storm although there was scattered hail at many points. 
Nevill, Herbert, Cabri and Yellow Grass were the principal 
storm centres, as the map of 1920 experience will show. 
Taking again township 50 as the northern boundary at which 
business is written, there are about 3,000 townships in the 
province. Business was received from 2,521 of these; 1,791 
report no losses, 302 had a loss under 25 per cent., 110 the 
loss" was under 50 per cent., and in 318 the loss was 70 per 
cent, and over. The largest amount of premium received in 
any one township was $14,508 and the smallest was $2.00. 
The largest amount of loss in any one township was $54,207 
and the smallest amount $2.00. 

"The records of the reduced areas in the northeastern pare 
of the province this year show premiums received of $66,289 
with losses of $10,765 as compared with premiums of $40,673 
and losses of $20,177 last year. In the reduced area in the 
northwestern part of the province the premiums received were 
$8,985 and no losses as compared with $2,107 premiums last 
year and no losses. 

"In regard to surcharge area No. 1 (being townships 32 
to 37 inclusive, in ranges 20 W2nd to 13 W3rd) the premiums 
received this year were $124,101 with losses of $17,063. When 
combined with the experience of previous years this surcharge 
area stands at: Premiums $528,686, losses $539,645. 

"In reference to surcharge district No. 2 (Radville dis- 
trict) the premiums received this year were $31,568 with losses 
of $33,226. When combined with the experience of previous 
years this stands at: Premiums $182,166, losses $156,829. 

"In surcharge district No. 3 (Hirsch district) the pre- 
miums received this year were $11,671 with losses of $9,606. 
When added to the combined expei'ience of pre\'ious years 
this stands at: Premiums $32,616, losses $33,121. Those of 
you who are writing in this district know from experience 
that many of the farmers residing in this area are "hail 
farmers." 

"Non-association competition was quite keenly felt at 
some points and, from the records, it would appear that in the 
eastern part of the province the members lost business as in 
many of the towTiships the premiums received this year were 
less than they were in 1919, while its generally conceded that 
more insurance was carried. The municipal hail scheme again 
had to raise a special levy on the seeded area and with the 
legislation passed last spring enabling a farmer to withdraw 
his land from the operations of the hail act it is reported that 
the acreage under the scheme was reduced by nearly 50 per 
cent. At the present time reliable information is difficult .o 
obtain as to the operations of the past season. 

Province of Manitoba 

"Premiums received in this province by members of tl.e 
association in 1920 amount to $295,565 and losses of $71,535 
as compared with $304,777 premiums and $84,936 losses last 
year. Business this year was written in 495 townships as 
compared with 492 last year. Of these 399 report no loss; in 
33 the loss