Montreal, Dee, 29.
ig customary at the annual moeting of the Bank of Montreal for the president to summarize main developments in the Canadian economic picture during the year, and to indicate what hope he sees for improvement in the year that lies ahead. The addresses of Sir Charles Gordon, who has been president since 1928, have been noted for their caution and, at. the same time, for their unbounded optimism in the ability of the country to win through.
This year Sir Charles had a brighter picture to paint than he has for some time, and he gave a clear Outline of the lines along which recovery has come. At the same time, Issued a warning against the dangers of the great rise that has taken place on the stock market, and sald that he hoped that the lessons Tearned. In 1929'and 1930 might be remembered before conditions. arise that would precipitate another crash.
One signifeant change since 1928 that has a distinct bearing on banking was revealed by Sir Charles when he pointed out that In that year commercial loans amounted to 45. per cent. of the bank's deposits and investiments to 15 per cent; now the commercial loans aggregate only 21 per cent. and the investments 64 per cent. This has necessitated a. great change in the internal organization of the bank, for ithas become somewhat the nature of an investment trust, And since nearly 70 per cent, of the bank's deposits are savings deposits upon which interest is paid, there has been.a.considerable "drop vin.the amount available for dividends, The forees of recovery have. been strongly in evidence during 1936, and there have been. five. fundamental tures in Canada—the recovery in agriculture, the extraordinary activity mining, the all-time Tecord. in newsprint production, the gratifying Increase in the tourist trade and the striking expansion in the export trade.
Marked Business Recovery It fs notable that the recovery has been marked in every section of the country, although for slightly diferent Feasons. Only on the prairies has there been any considerable lag, and even there the wide advance in the Price of wheat has resulted in the Value of this year's crop being greater than that of last year, despite its smaller bulk. Further, the carry-over has been sharply reduced and might bbe almost dissipated within another year i¢ the world wheat crop is again Small.
In one phase of industry recovery la Just beginning to manifest. Hself, while in another it has hardly shown true signs of advance os yet. The capital goods industry, that which Supplies the requirements for production, is now entering a phase of distinct expansion. Perhaps the most Significant feature of this because it {is basic fs the great stride taken in the steel Industry in the past month of s0. Orders have been pouring in fon the mills to such an extent that the annual shutdown for repairs is being greatly curtailed. Tu the construction industry there is still 9 lag which affects a great body of workers a number of allied trades.
Text read from the printed page and cleaned; old type leaves the occasional error.