I LB : ! i ¢ Ad 4' A REVIEW OF THE TH BANKI NG YEAR E DAILY BRIT Sir John Aird, General Manager of The Canadian Bank of Commerce, Addresses the Shareholders HE contraction in business, to which I referred when address- ing you a year 'ago, has con- tinued unabated down to the present time; indeed it increds- ed in severity throughout the greater part of the'yeas just closed. It has been a time of testing for the finan cial policies of all business, and pa: ticularly of banks, searching out the weak spots and revealing the true outcome of plans adopted under much brighter auspices. It has_ been a source of much gratification to us to find that policies adopted by this Bank after full consideration, with a view to warding off the evil effects of just such a period' as the present, have proved as efficacious as we had hoped, enabling us to view the pro- sent with equanimity and to look fore ward to the future with confidence. A Satisfactory Showing i° The net profits of the Bank during the year amounted to $3,116,136, or mbout $190,000 less than a year ago Considering the difficulties with which the situation has been beset, and the steady shrinkage in the vol- ume of all business, resulting in onr case in a smaller amount of loans on which to earn a profit, we venture to think that you will regard this ag a satisfactory showing. We have heew able to provide out of It the regula dividend of twelve per cent,, and a bonus of one per cent. paid last De- cember. We have set aside $325. 000 for the very heavy burden of taxation levied by the various govern- ments under whose rule we transact business, $500,000 for Bank Prem- ises Account, $178,370 for the Offi- cers' Pension Fund, and finally carry forward into. next year's accounts at the credit of Profit and Loss, a bal- RHce of $1,946,745, or $162,766 more than a year ago. The writing off of $600,000 from Bank Premises Ace count is in pursuance of our express- ed policy of carrying our premises on our books at dpproximately 50 per cent of their cost. We referred last Year to having been able to acquire premises for several of our branches im the West Indies and South Amer- ica on favourable terms, and the pur- chase price of these is yeflected in ithig' year's statement, acéounting for the rrincipal part of the increase in the item of Bank Premises in our bal- ance sheet, Influence of Lower Prices The decrease of somewhat over Seven million dollars in notes of the Bank in circulation, which now amount to $23,477,574, is, of course, @ direct result of lower prices for commodities and of the contraction the. volume: of general business. ing to dows prices a much small- money is required ro' a given quantity of goods than year ago. he same . influences thelr effect on deposits, hich now stand at $353,155,200, of hich ahout 254 millions bear inter- the balance of 99 milijon being n-interest-bearing. I have already entioned the decrease in the Bank's 8, which is a natural accompani- dent of the decrease in deposits and cirenlation. The item of Bills pay- shows an increase, standing now at $2,768,126, or somewhat more 'than double the figures of a year ago. ects the return of more nor- mal conditiéng in the principal money A At ssa co. ---- at the Annual centres abroad, and is also in a mea- fure a tribute to the standing of this Bank in the 'foreign exchange mar- kets. Acceptances under Letters of Credit 'show a large decrease, owing to the inactivity of foreign trade at the present time Strong Reserves Cash on hand and in the Central Gold Reserves, that is, the Bank's holdings of gold and silver coin and i'ominfon notes, stands at $65,162,- S71, and represents an increase ia proportion to our present Mabilities by way of deposits and note issue, from 16.9 per cent. to 17.3 per cent. There has been a similar increase in the proportion between "quick as- sets" and these liabilities, from 48 per cent. a year ago to 49 per cenr. at the close of November last. We Fave thought ft well to maintain emple reserves at all times under present unsettled conditions. There are several important changes in the items comprised in the term "quick assets." Thus, the amount of cheques on other banks held at the end of November shows a large de- crease as compared with the figures of the previous year. The reasons for this are, of course, the genera! inactivity of business and lower prices. Government Securities There have been some considerable changes in the government securities we hold. During the year the British Government continued to reduce its indebtedness to the Canadian banks by payment of the short term securi- ties which the latter hold, and we took the opportunity of investing a corresponding sum, at the favourable rates whichs prevailed in the bond market, in the securities issued by our various provincial governments. During the year we paid off all our borrowings from the Dominion Govy- e€trment under the Finance Aect. Loans and Discounts in Canada, other than call and short loans, amounted to $206,588,328, and those elsewhere to $23,334,479. We ®still hold an outstanding position in the first of these two items, which represents roughly the measure of service ren- dered to the commercial and indus- trial business of Canada and to its agricultural interests. Adhere has been an increase in Overdue Debts, when the conditions that prevail a taken into consideration. We ha e provided amply for all possible loss, and believe the figures at which thie asset stands in our books to be un- doubtedly conservative, Sound Commercial Loan Our total ghsets show a decrease of botween 10 and 11 per ¢ent, as com- paréd with the figures of a year ago, which is more than accounted for by the decrease in commodity prices. At the end of November, 1920, the to- tal assets of the Bank stood at $480,- 760,000, and at the end of August lest, seven months later, they had .been reduced to $378,814,000, that is by about $102,000,000 or over 21 per cent. This was not caused by any set policy of contraction or en- forced Hquidation but simply by the natural, orderly and voluntary pay- ment of debts by our customers in the face of the depressed business situa- tion. Naturally, it affected our earn- men By SINCLA | MAIN STREET The Story of Carol Kennicott IR LEWIS - Daily she determined, "But I must 8 otated amount--be business- : System. I must do something about a e it." And daily she didn't do anything about it. % + Im . Mrs. Bogart had, by the simpering » of her comments on the : furniture, stirred Carol to econ- . She spoke judiciously to Bea but left-overs. She read the cook- 0k again and, ke a child with a ture-book, she studied the dia- of the beef which gallantly con- to browse through it is divid- cute. ' 'But she was a deliberate and joy- spendthrift in her preparations i her first party, the house warm- ® _ She made lists on every emvo- © and lsundry-flip in her desk. sefit orders to . Minneapolis By grocers." Sho pinned pat- and sewed. She was irritated Kennicott was jocular about REAL REMEDY re's good news for all men and whose hair is falling out, who bald and have scalps cov-. dandruff that fteh like mad. vy be "these frighttul big doings that are going on." She regarded the affair 4s an attack on Gopher Prairfe's timidity in pleasure, "I'l make "em lively, if nothing elwe. I'M make 'em Stop regarding panties as committee meetings." Kennicott usually considered him- self the master of the house. At his desire, she went hunting, which was his symbol of happiness, and she ordered morality. the after Loon before the housewarming he found himself a slave, an intruder, a blunderer. Carol wailed, "Fix the furnace 80 you won't have to touch It after supper. And for heaven's Meeting of the Bank. ing power for the time being, and has resulted in lower profits for tho Year, but we look upon it as most striking evidence as to the soundness of our commercial loans and as to the liquid position of our other assets. Jt shows, too, that the business of the Bank is well diversified and mot bound up with the fortnnes of any one industry. You will have noticed however, from the balance sheet ip your hands that the total assets of the Bank as at November 30th last amounted to over $428,000,000. This increase is owing largely to our activities in connection with [the movement of the crop of last an- tamn. Careful Administration I should like to lay frankly before the shareholders the precautions with which we have surrounded the ad- ministration of the trust committed to our care, of which that part which bears the ultimate risk is the money which you as shareholders have in- vested in the business. I wish to say emphatically that the\safety of your investment does not depend up- on my pwn unaided judgment, nor upen that of any other single officer of this institution. We have depart- ments at Toronto, Winnipeg, Calgary, Vancouver, Sherbrooke and Halifax, for 'the purpose of "Supervising the loans of the Bank. These depart- ments are headed by senior officers of proved judgment and experience in lending money, and they are assisted in their work by some of the best and brightest of the younger men on our staff, specially selected for the pur- pose. The training these men re- ceive in these departments in the handling of credits is looked upon as offering .the best opportunity this Bank can give for future promotion and usefulness. Under the personal guidance and oversight of the head of the department they check and fcrutinize the judgment exercised by the various local managers in making loans. In addition, all loans or credits over a certain sum have to be passed upon by the Credit Depart- meut al Head Office and by your Board of Directors. Every year a statement signed by three of the sen- for officers of the Head Office in charge of credits is submitted to the Board, certifying that every credit which should come before the Board, has been submitted to it. Ample Provision The procedure I have described is that which is applied to all the cur- rent ahd active business of the Bank. The comparatively small number of accourts ia connection with which there are slow or dragging advances are subject to the additional test of an annual review by the Superinten- dents and the Chief Inspector. Thig takes place in the autumn of each year, and whenever in the jutgment of these officers there is doubt as to the syjtimate collection of the face amount: of any debt, full prevision for the estimated loss is made, either by writing dowh the debt in the books or by setting aside ample pro- vision for it in a contingent account. The same procedure {is applied to all the miscellaneous assets of the Bank, such as bonds and stocks held as in- vestments, or other items which have come into its possession as security for debts incarred to it. The pro- vision which is thus made for bad debts Is go ample that every year a son flatered in, at a quarter to eight. Then a shy avalanche arrived the entire aristocracy of Gopher Prairie: all persons engaged in a profession, or earning more than twenty-five hundred dollars a year, or possessed of grandparents born in America. Even while they were removing their overshoes they were peeping at the new decorations. Carol saw Dave Dyer secretively turn over the gold pillows to find a prive-tag, and heard Mr. Julius Flickerbaugh, the attor- ney, gasp, " Well, I'l be switched," as he viewed the vermillion print hanging egaimet the Japanese obi. She was amused. Bat her high spirits slackened as she beheld them form In dress parade, in a long, sfl- ent, uneasy circle clear round the living-room. She felt that she had been magically whisked back to her first party, at Sam Clark's. - "Have I got to Mat them, like so many pigs of fron? I don't know ----a REDUCE YOUR sake take that horrible old doormat Off the porch. And put on your nice brown and white shirt. Way did you cons home so/late? Would you mind hurrying? Here it is' almost suppertime, and those flends are just as likely as not to come at seven instead of éight. Please hurry!" Hii! 5 i} {had carried across ihe riom. Nat certain amount is recovered from debts previously written off our books, and we have a special organi- zation in the Head Office to look after these written-off debts and to see that nothing is left undone which is neces- Sary to protect the Bank's interest in them. I should like to repeat what I drew attention to at the beginning of my address to-day, that the polic- ies deliberately adopted by this Bank to govern its methods of lending money, with a view tb protecting it from bad debts, especially under such adverse circumstances as we have passed through during the past year, have proved most effectual, so that the ratio of bad debts to total loans Over a series of years shows a mark- €d decreage. A Thorough Audit As to the auditor's certificate, the auditors whom you elect each year are chartered accountants belonging to well known firms of established reputation. They are voted each vedr at these annual meetings a consider- able sum for their services, namely, $20,000, and undoubtedly they put forth their best endéavours in the discharge of their duties. They visit & number of the principal offices of the Rank, and in addition to verify- ing the accuracy of the records, and the physical existence of the cash and securities held as investments or as collateral for loans, examine the annual review of all slow or dragging loans and invest- ments of which I have spoken, and for their own' satisfaction are placed in possession of the evidence upon which our estimate of the value of such assets is based. If this does, not satisfy them, they are at 'liberty to make such independent investiga- tions as their, judgment may dictate. In our opinion their work is well and thoroughly done. A Difficult Year, In conclusion, I may say that the year through which we have Just passed was undoubtedly a difficult one. Irregulari- ties here and there in the progress of sdeflation show that the process is not Yet fully completed. The burden of taxation {s a heavy one, made unduly so by inequitable distribution. It would be well If our Governments would di- rect taxation /more at what PeQple are spending and less at what they are sav- ing. municipal taxes Be oné of the influ- ences that keep up rents and retatl prices, just as taxes on profits kéep up the prices of manufactured goods. The lick of capital accumulations and the high level of wages also function in the manner of taxes on employment, tending to increase the unemployment which has been so prevalent. In these and other ways the return of prosper- ity is being held back. Improving Prospect. Yet the position has undoubtedly im- proved in many pe cts. The doubt as to the future Fs widespread a year ago has largely disappeared. The stocks of goods produced at a high cost have been steadily reduced by consump- tion, even If often disposed of at a loss. | The problem of production at lower costs, which for a time seemed so baf- fling, appears now in a fair Way to be solved. The soll and other natural re- Sources of Canada are as ready as ever to respond to the efforts of her people. If business seems at present to mora or less in a condition of suspended ani- mation, any change which takes placa must surely be for the better, and at/ any moment it may awake to new Ha | and prosperity. Granted a favorable | harvest in the coming year, confidently look for a steady return mere normal conditions. a to ---- that I can make them happy, but I'll make them hectic." A silver flame fa the darkling cir- cle, she whirled around, drew them with her smile, and sang, "I want my party to be noisy and undignified! This is the christening of my house, and I went you to help me have a bad influence on it, so that it will be a giddy house. For me, won't you all join in an olMdfashioned equare dance? And Mr. Dyer wil call." She had a record on the phono- graph' Dave Dyer was capering in the centre of the floor, loose-jointed, lean, small, rusty-headed, pointed of pose, clapping his hands and shout- ing, "Swing y pardners--aldmun def!" Even the millionaire Dawsons and Ezra Stowbody and "Professor" George Edwin Mo't danced, looking only slightly fooMsh; and by rushiag about the room and being coy and coaxing to all persons over forty-five, Carol got them into a waltz and a Virginia Reel. But when she left them to deenjoy themselves in their own way Harry Haydock put a one- step record on the phonograph, the younger people took the floor, and «ll the elders sneaked back to their chaire, with erystalized smiles which sumed the discussion of that efter- noon in the store. Esra Stowbody hunted for something to say, hid a yawn, and offered to Lymen Cass, the owner of the flour-mill, "How a' you folks like the new furnace, Lym? Huh? So." i "Oh, let them alone' Don't paster them. They must like it, or they wouldn't do it." Carol warned her- self. But they gazed at her so ex- pectantly when she flickered = past that she was recomvinced that in their debauches of respettability they bad lost the power of play as the power of impersonal, thought. Even ihe dancers were gradually crushed by the invisible force of fifty perfect- iy pure and w ved and nega- tive minds; and they sat down, two by two. In twenty minutes the party was again elevated to the decorum of 3 prayer-meeting. = "We're going to do something ex- cithg," Ca claimed to her mew jronfidgate, Vidi Sherwin. She saw that in the growing quiet her veice It must be remembered that high | Y | wolves. ISH WHIG. were abstracted, firgers and lips slightly moving, She knew with a cold certainty that Dave was rehears. ing his "Gtunt" about. the Norwegian catching the hen, Fla running over the first Ines of "An Oil Sweetheart of Mine," and Nat thinking of his popular . parody on Mark Antony's oration, "But I will not have anybody use the, ward 'stunt' in my house," she whigpered to Miss Sherwin. "Ybat's good. I tell you: why not have Raymond Wutherspoon sing?" | "Raymie? Why, my dear, he's the most sentimental yearner in town!' "See here, child® your opinions on house-decorating are sound, but your opinions of people are rotten! Raymie does wag his tail. But 'he {poor dear-- Longing for what he | calls 'self-expression' and no train- {ing in anything except selling shoes. [But he can sing. And some day when | he gets away from Harry Haydock's {patronage and ridicule, he'll doBome- thing fine." Carol apologized for her supercil- jousness. She urged Raymie, end warned "We all want you to sing, Mr. Wuth- jerspoon. You're the only famous {actor I'm going to let appear op the | stage tonight." { While Raymie blushed and admit- {ted, "Oh, they don't want to hear {me," he was clearing his throat, pull- {ing his clean handkerchief farther out of his breast pocket, and thrust- ing his fingers between the buttons dt | his vest. fender, in her desire artistic talent," Carol prepared to be delighted by the recital Raymie sang "Fly as a Bird," fe {all in a reasonably bad offertory | | tenor. | Carol wag shuddering with the vi- | carious shame which sensitive people | féel when they listen to an "elocu- | tonist" being humorous, or to a | precocious child -publicly doing badly | What no child should do at all. She | wanted to laugh at the gratified im- | portance in Raymie's half-shut eyes; she wanted to weep over the meek ambitiousness which clouded like an aura his pale face, flap ears, and {sandy pompadour. She tried to look admiring, for the benefit of Miss | Sherwin, that trusting admirer of all | that was or conceivably could be the good, the true, and the beautiful. At the end of the third ornitho- | logical Iyric Miss Sherwin roused from her attitude of inspired vision and breathed to Carol, "My! That | was sweet! Of course Raymond hasn't an unusually: good voice, but don't you think he puts such a lot of feeling into it?" Carol lied 'blackly and magnifi- cently, but without originality: "Oh , I do think he has so much feel- ing!" She saw that after the strain of listening in a cultured manner the audience had coHapsed; had given up their last hope of being amased. She cried, "Now we're going' to play an idiotic game which 'I learn- ed in Chicago. You will have to {take off your shoes for a starter! After that you will probably break your knees and shoulder-blades." Much aitention and incredulity, A few eyebrows indicating a verdict that Doc Kenvicott's bride was noisy and improper. "I shall choose the most vicious, like Juanita Haydock and myself, us the shepherds. The rest of you are Your shoes are the sheep. The wolves go out in' the hall. The shepherds scatter the sheep througn this room, then turn off all the lights, wy Nk These gorgeously Ca v | Hicks, Elia St>wbody, and Dave Dyer the planners - of "stunts," 83 PRINC 74 PrixcEss STREET Students' Study Lamps, extra good value. English Hot Plates, price $7.50. "Call and see our large assortment of Portable Lamps, Agents for Apex Vaccum Cleaner. Burke Electric Company THURSDAY, JANUARY 12 1922, ------------ ee 7 We Serve Good Meals For good meals prepared right come and try us you will be delighted with our service. Everything you could want served as'you like is Dainty Restaurant wb STREET -- NEW ELECTRIC GOODS JUST ARRIVED Price $3.50 each. PHONE 423. Valuable Residence. In her affection for Raymie's de- | to "discover | 'Thou Are My Dove," and "When the i | Little Swallow Leaves Its Tiny Nest," ! they carefully | WITH TH painted and de held at Baroda in honor of the nada's Favorite Pipe Tobacco | J. 0. HUTTON. Phone 703 the curative virtues of COD Colds, when neglected or SAA rie. and the wolves craw in from the hail and in the darkness they try to get the ghoes away from the shepherds-- who are permitted to do anything ex- cept bite and use blackjacks. The wolves chuck the captured shoes out into the hall. No one excused! Come on! Shoes off!" i Every one looked at every one elsa and waited for every one else to be- gin. ' (To be continued.) hos 9 Prince of Wales. consequences of siichagrave character not risk using inferior preparations. MALTUEU'S SYRUP is the only genuine remedy whose sox Sah ihe sry gearing ents Sass se ON | BALE EVERYWHERE : Excellent Location. For price and terms apply: KINGSTON AGENCIES, Limited B. G. ROBERTSON 67 Clarence Street. Coughs, Colds, Grippe, Bronchitis, Whooping Cough, Asthma, Ete, MATHIYU'S SYRUP isa soverei rties of TAR po the strengthening IVER OIL. - tonic combi badly treated give rise to that you should + Rector Robbed During Sermon. = | Sydney, N.8., Jan. 12.--Word reached the police yesterday that while Rev. John Hackney w preaching his first sermon Sunday evening as rector of the Anglican Church in North Sydney, to which he was recently appointed, burgial broke into his home and stole $180, +A number of Victory bonds in th clergyman's desk were not touched: E PRINCE OF WALES IN INDIA. corated elephants were a feature of the.garden fa vis