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AE, Lom 0 or -- nn Wl Pr Rope Po PR a Cod oo oF . "THE ROYAL BANK OF CANADA ANNUAL MEETING Morris W. Wilson, President, says continued Canadian develop- ment depends on world-wide system of trading based on international monetary and exchange stability. Urges Canada be one of first to approve principles of Bretton Woods Conference. Sydney G. Dobson, Vice-President and General Manager, re- ports total assets at all-time peak with year's increase greatest in history of bank; southern branches in unique position to facilitate Latin-American trade. The vital importance 'to Can- ada's future welfare of a healthy foreign trade based on internation- al moretary and exchange stability was cmphasized by Morris "WN, Wil- son, President of The Royal Bank of Canada at the bank's Annual Meeting, Canada owed her economic de- velopment from earliest days, said Mr. Wilson, to foreign trade and the level of pre-war exports would not only have to be maintained after the war, but actually expanded, possibly to double their pre-war value, if Canada was to secure an adequate national income. FOREIGN TRADE PROBLEMS "Normally we export consider- ably more to Great Britain and other countries of the Empire than we import from them. On the other hand, our imports from the United States are usually in excess of our exports .to that country, Under normal exchange conditions it was relatively simple to adjust this situation. Our sterling "balances, accumulated tirough exports to the Empire, were readily exchangeable for U.S. dollars with which to pay for what we purchased in the Un- ited States. "War-time experience, however, has shown the difficulties which arise when this multilateral adjust- ment of trade balances breaks down. As a result of the control of sterling made necessary by the 'war, Canada has been_ forced to depend upon her sown - devices for liquidation of British "balances, through interest-free loaps, mutual aid, and the repatriation of Can- adian securities, We were also forced to restrict purchases and travel in .the United States, in order to reduce the demand for U.S, dollars, thereby making it easier for us to pay- for essential imports. If the world should be divided into exclusive trading arcas after the war, as is frequently suggested of which one might be based on sterl- ing and another on the U.S. dollar, Canada would be in a peculiarly - disadvantageous position since she properly belongs in neither group. Our membership in the British Commonwealth of Nations, and the - coincidence that our unit of cur- rency is named "dollar" as in the -Hnited States, create an anomalous sitiation, and obscure our true position in the eyes of many. Be- cause of these factors, and our own selfish interests, we are compelled to prefer a world-wide system of trading. There is no altruism about it. ) CANNOT STAND ALONE "If international trade on the broadest scale is not fully restored, what can Canada do independently to preserve her foreign markets? There are certain obvious meas- ures, notably maintenance and im- provement of the quality of our €xports, vigorous salesmanship, and the acceptance of imports from countries to which we export, up to the limit gither of their capacity to sell to us, or of our ability to absorb their products. These. are basic principles which Canada can and should adopt, whatever .the rest of the world may do. "What other alternatives will be normally avialable to us? In the first place, we might have to re- strict our exports to the ability of foreign markets to pay for our products. Since many of our ma- Jor export commodities are produc- ed on a scale out of all proportion to our own consumption, the sub- sequent unemployment of men and resources, the agricultural depres- sion, and the social problems which would arise, would build up a load. - that our economy and constitution could not support, Secondly, Can- ada might provide credits to coun- tries desiring to import goods on a basis similar to the credits which have been established during the war, but with the hope of ultimate repayment. Finally, we could sub- sidize exports. "Furthermore, as I stated a year ago, I believe it would be sound policy for Canada not only to ex- tend liberal long-term credits to countries who are actual or poten- tial buyers: of Canadian products, but in special cases to make out- tight gifts of foods, raw material, finished goods and machinery to assitt and hasten the rehabilitation of such conntties. "Thus far could we go, independ- ently of the policies of other pow- ers. But a moment of consideration will" show how 'slight our hopes of success. would be without inter- national co-operation." Mr. Wilson reviewed the function of gold as an international currency prior to and after the last war bul pointed out that 'the "gold stand- ard" was never. entirely automatic in its operation: "The system could never 'have been mantained," he said, "without the unrivalled su- premacy 'ofthe City of Eondon in "the foreign, exchange and inter- national investment markets, the degree of liquidity it maintained, the great foreign loans it floated, the willingness of Great Britain to accept imports of goods and services for payment on loans and last" but by 'no 'means least, the. knowledge and experiance of the reat London banks ahd finaficial ouses, NATIONS FORSAKE RULES In the second place, all countries observed the code of economic ethics set up by the gold standard. Fundamental changes in this sys- tem took place following the last war, said Mr. Wilson, and the in- ternational economic system, dis- rupted by the war, remained out of balance and the disequilibrium became intensified, Countries ceas-- ed to abide by the rules and no longer sought to adjust their do- mestic policies to the requirements of the gold standard system and with the breakdown apd abandon- ment of the standard in 1931, each country set out on its own course, "Instead of adjusting domestic prices and production to the needs of international exchange stability and balanced payments on inter- national account, countries b®gan to manipulate exchange rates, as a means of increasing 'domestic and foreign" trade in order to maintain employment at home. International trade became disrupted, with every country secking to forcé its exports on others, but to reduce imports to a minimum. Competitive ex- change depreciation, higher - and higher tariffs on imports, quanti- tative quotas and bulk purchases; and similar measures, "were ~utiliz- ed "by all countries in greater or less degree. Well over a third of total world trade was conducted on a basis of crude barter. With . the collapse of the gold standard, there disappeared the only oper- ative system for the co-ordination . of national economic policies; in its * absence, sovereign countries, acting independently and without regard for the external repercus- sions .of their policies, inevitably drifted toward international econ- omic chaos." Upon this chaos, said Mr. Wil- son, had now been superimposed the new disequilibrium of a second World War, The great importing countries including Great Britain and those of Europe had suffered devastation, destruction of their in- dustrial machinery and, particularly Great' Britain, loss of overseas markets, Other countries, notably those of North America, had found their industries and agriculture greatly expanded. "In order to maintain employment," said Mr. Wilson, "it will be necessary for these countries and particularly for Canada, to export to an extent treater than was necessary even efore 1939." BRETTON WOODS Mr. Wilson dealt at length with the Bretton Woods Conference last July when the experts of forty- four countries sought to evolve a system of international control of foreign exchange and investment with a view to providing exchange stability, He readily admitted that the Bretton Woods program was no panacea for post-war: problems but he pointed out that" practical businessmen were largely in agree- ment with the Bretton Wiods ex- perts. Meeting at Rye, N.Y. last ovember, businessmen front fifty- two 'countries, including Canada, recommended a Multilateral Trade Convention for all countries to pro- vido for the progressive lowering + of trade barriers; the elimination of quotas and import embargoes; the abandonment of discriminatory trade practices; the abandonment of national sales and production monopolies; "It appears to me," said Mr. Wilson, "that the next step in pre- paration for the general resump- tion of foreign trade after the war must be discussions and agreement between governments on commerc- ial policy. If some standard of commercial policy is not establish- ed prior to the resumption of gen- eral trading, we may see the con tinuance of the predatory practices of the pre-war era, "Canadian _ economic develop- ment, in the future as in the past, depends upon 'the maintenance and development of international trade. Monetary stability is one of the Picieuyilites of international trade. or Canada, therefore, monetary stability is of paramount import- ' ance. If we acknowledge these . premises, our course of actioh is clear, We must implement the nieasures necessary to secure them, I sincerely hope that Canada will be one of the first to approve the principles of the Bretton Woods agreements, leaving the Govern- ment free to deal with matters of detail in consultation and agree- -ment with the other countries con- cerned." : GENERAL MANAGER'S - ADDRESS ; In presenting the Annual Balance Sheet Sydney G., Dobson, Vice- President and General 'Marnager, pointed out total assets were now at the record level of $1,790,251,802, and that the increase in assets dur- ing 'the year was the 'greatést in the history of the bank, The liquid «position was exceedingly. strong, ¢ said, Total Liquid Asset repre- senting 81.62% of the pail' ja- bilities to the Public, Noteworthy was the increase in the number of Deposit Account Customers which now totaled 1,450,000. Profits for the year, after providing for Do- Cminion: Government Taxes; amounts ed to $3,821,183, an increase of $385,804, : 5 RAF. TEMPEST FIGHTERS IN BELGIUM After their great success against the flying bomb attacks on Southern England an R.C.F. 'Tempest Wing is now operating from a Belgian airfield. Pilots of this wing destroyed nearly 650 flying bombs and on the first day of their transfer to chasing enemy fighters they shot down four F W 1900's. Picture shows pilots of a New Zealand Tempest squadron on a Belgian airfield; the Squadron Leader is the only non New, Zealand member of the squadron, Tempest machines are in the background. "TAKE EM OFF!" The. "glamor gal" warbling with the "Rythm Rascals," impromtu swing band organized among 7th AAF Aviation Engineers aboard an LST in the Pacific, isn't a girl at all--"she's" T/b Clyde Bass, © of Cincinnati, Ohio. Bass rigged up the eye-catching effect from a rubber mask, a G. I. towel and some false bulges here and there, Mr. Dobson reported' steady de- velopment of the bank's foreign business in the Caribbean and South America. "The South Amer- - ican countries," he said, "are po- tential purchasers. of large quanti- ties of equipment of all kinds for modernizing and expanding already established manufacturing facilities, for developing new industries, and carrying out public works programs. A growing interest in 'Canada and Canadian products is evident, and it is hoped that our manufacturers, exporters, and importers will reci- procate this interest. Our - well- placed branches are in a unique position to offer assistance in the development of trade between La- tin America and Canada." TRIBUTE" TO STAFF The General :Manager reported that the staff, not including those in the armed services, now totalled 8,205. "In Canada 71% are young women, compared with only 21% in 1939. While the more experienc- ed officers have been under great personal pressure, because of the need to train and help inexper- ienced newcomers, these . new members of the staff have learned quickly, fitted in readily, and per- formed splendidly the duties' allot- ted to them. All of our officers serve with a sense of public re- sponsibility as well as of duty to the bank. "Leave of absence for military service has been granted to 2,255 of our officers since the war start- ed, of whom 2,154 enlisted from Canadian branches. This is equal to 74% of the Canadian male of- ficers who were under 45 at the war's outbreak." 4 Looking to the problems of the postiwar years, Mr. Dobson stated that one of the banks first con- siderations "would be the placing in satisfactory positions of 'the mem- bers of the staff who were serving «inthe various armed services, "This matter," he said, "is foremost in our minds and is being given_care- ful study, The affairs of customers in many cases will undergo great changes in the transition period from war production to peacetime needs, In this transition we shall se called upon to play an import- ant part in assisting. financially in helping to bring about this change. It may be necessary for us to revise to some extent the existing practice of making loans for short. terms only, and in certain circumstances to consider loans extending over a period of two, three, or. five years to meet changed conditions. "I am not implying that we should depart from our policy of . Prudent banking, but because of our arge holdings of readily negotiable Government securities, we may, without risk to our liquidity, assist leserving borrowers with longer 'term loans, "Your bank is strong financially and exceedingly well equipped to handle post-war financing, and we . shall consider it our patriotic duty to play our 'full' patt iin 'assisting business generally in becoming re- established," MAN IN' WHITE 4 Tired of beng easy marks for Ger- man pot shots on account of being silhouetted against winter's back- ground, Allies fighting in Luxem- bourg improvised anti-snow cam- oaflage: out of bed sheets. Above, sheeted soldier is pictured on a scouting mission. : ACTS IN GREECE truce be- tween Greek ELAS forces arid the 'British Army, Gen, Nicholas Plastiras, Kinsel; ipremisy, is faced Following signing of with task : of ging order out of the political chaos that spark- ed off 40 'days of bloody 'civil war, Besides premiarship, he holds portfolios of War, Navy, Air, Merchant Marine, ho is Everything expended on the War Fronts means just that much less 'for the Home Front; and the ; . : - promise of 1945 is that combat expenditures, some of which are pictured 'above, will reach hith- : erto unimagined totals, CASUALTIES: Running at the rate of 1,600,000 a year, are expected 'to increase as war's tempo speeds up, AMMUNITION: More than two tons of ammunition are fired every minute of every day at the Germans alone, with rate of fire increasing, TIRES: -Life-span of tires in combat is often measured in minutes, As supply lines lengthen, tire requirements will increase. GASOLINE: Combat reverses, resulting in loss of gas dumps, like that in photo; ever- increasing mechanized strength and growing air forces, including such gas eaters as.B-29s, the huge new -B-32s and other giants will use gas in unprecedented quantities, MECHANIZED EQUIPMENT: Tanks, trucks, jeeps, ducks, tank destroyers, motorized artillery and other equipment are highly expendable, as photo of Germans advancing past burning Allied half-track indicates, PLANES: As enemy's defenses tighten up, plane replacements will be increased. LST HEADS FOR SHORE AS LUZON IS INVADED Sk SRE "An LST, loaded with troops heads for a Lingayen beach as the Invasion of Luzon got under 'way. Floats for 'portable docks can be seen on the side of the landing ship. Other ships stand by; waiting to send their troops ashore, : Ix ; Te "deprived of the convenience and pleasure of auto driving is seen MANY THANKS go to. - wives and mothers .who serve Maxwell House! Yes, Canadian families love the delicious, satisfying flavor of this superb blend of Latin-American coffees, DISABLED VETERANS MAY DRIVE > - || HEAD COLDS "| - | ACHES--PAINS go FAST Promigé that servicetnen 'who' have lost their legs will not be in the fact that the two veterans in the photo above have just 'won driver's licenses in Georgia. They learned to drive with. artifical limbs at Lawson General Hospital, Atlanta, At left. is a sergeant of the 'Georgia State Patrol, who supervised, their: successful road le 4 bl Advanein scattionsly, his rifle held ready 3 ours tes NACE . 40 JUST IN CASE L CINNAMATED CAPSULES Theo cog : J the benefit of nat ENE SFO «Gis how proven Bain aalisvin , <o pelling in ents. Here's 1-R . ; v Relieves Pain andi Foverloha '2-@ives Longer Lasting Relief, ' 3--Qives the lift may need, just in case it's a trick, the Allied soldier at left approaches the body of a German in 8 snow-covered farm pasture neas Bastogne, Belgium,