chants generally are in a position to stand a period of slack trade. The financial position of the Government is exceptionally strong. The following were elected as directors of the Bank: SIR HERBERT S. HOLT, K.B. E. F. B. JOHNSTON, K.C. G. R. CROWE. D. K. ELLIOTT. HON. W. H. THORNE. HUGH PATON. C. S. WILCOX. SIR MORTIMER B. DAVIS, K.B. G. H. DUGGAN. R. MACD. PATERSON. At a subsequent meeting of the Board Sir Herbert Holt was re-elected President, Mr. E. L. Pease, Vice-President and Managing Director, and Mr. E. F. B. Johnston, K.c., 2nd Vice-President. GENERAL STATEMENT THE ROYAL BANK OF CANADA TO THE PUBLIC: 30TH NOVEMBER, 1917 LIABILITIES Total Deposits... Deposits not bearing interest. 70,498,667.26 Deposits bearing interest, including interest accrued to date of Statement 182,488,715.55 Notes of the Bank in Circulation. Balance due to Dominion Government. Balances due to other Banks in Canada.. Balances due to Banks and Banking Correspondents in the United Dividend No. 121 (at 12% per annum) payable Dec. 1st, 1917. Deposit with the Minister for the purposes of the Circulation Fund.. Cheques on other Banks. 15,283,364.45 Balances due by other Banks in Canada. 229,868.41 Balances due by Banks and Banking Correspondents elsewhere than in 10,704,338.84 Dominion and Provincial Government Securities, not exceeding market value. 22,322,197.31 Canadian Municipal Securities and British, Foreign and Colonial Public 21,586,545.77 12,777,503.85 Call Loans in Canada, on Bonds, Debentures and Stocks. 12,040,687.27 Call and Short (not exceeding thirty days) Loans elsewhere than in 14,574,136.32 $165,836,706.79 Other Current Loans and Discounts in Canada (less rebate of interest). 102.358,027.10 Other Current Loans and Discounts elsewhere than in Canada (less rebate of interest)... Overdue Debts (estimated loss provided for) Real Estate other than Bank Premises.. Bank Premises at not more than cost, less amounts written off.. FINANCIAL CONDITIONS IN CANADA, 1917 ANNUAL REPORTS AND ADDRESSES* OF THE MERCHANTS BANK OF CANADA The fifty-fifth Annual Meeting of the Shareholders of the Merchants Bank of Canada was held on June 5, 1918, in the Bank at Montreal. The meeting was called to order at twelve o'clock noon. On motion of Mr. John Patterson, the Vice-President, Mr. K. W. Blackwell, in the absence of the President (Sir H. Montagu Allan), was asked to take the chair. Mr. J. M. Kilbourn was appointed Secretary of the meeting. Mr. K. W. Blackwell presented the Annual Report as on the 30th April, 1918, the last day of the Bank's fiscal year, accompanied by a statement of the Profits covering the same period. Address by You will observe, with satisfaction, I doubt not, that the profits as a result of the year's operations amount to $1,236,680.96, being an increase over last year of $116,372.12. Subscriptions by the Bank clientele throughout the country to that important piece of national financing, known as the Victory Loan, amounted to no less a sum than $25,000,000, distributed amongst fifty-three thousand depositors. Notwithstanding the heavy consequent withdrawals, our deposits have grown about $20,000,000, or roughly, 21%. Our commercial advances have correspondingly increased, thus enabling us, while maintaining a proper measure of liquid strength, to materially improve our earning power. The whole position as reflected by the Balance Sheet will be viewed, I am sure, with feelings of entire satisfaction. There has been no activity during the course of the year in branch extensions, owing to the exigencies of the staff situation. Indeed, we are, in all the circumstances, doing well to keep pace with the development of our business under the difficulties by which we are surrounded in this respect. The figures in the statement you will observe indicate a satisfactory increase in the profits. You will notice the deposits on the Liability side of the account show a gratifying increase and concurrently loans and other items on the Asset side a very substantial and proportionate growth. We are pleased to say that all the legitimate requirements of our clients-naturally upon a larger scale owing to the high cost of labour and all commodities-have been given the fullest measure of consideration, and on the whole well taken care of and we have reason to believe to the satisfaction *For History of the Bank, see The Canadian Annual Review Supplement in 1910; for a further Historical record, see the 1915 Supplement; and for preceding Annual Report and Addresses, the 1916 Supplement. of all concerned. Having regard to the abnormal period through which we are passing, and the uncertainties which the future undeniably holds, you will observe that an amount of $400,000 has been set aside and placed to the credit of "Contingent Account" -a step which I venture to think you will agree, is prudent and proper under the circumstances. With regard to the future, we have all read articles in the papers and magazines by many eminent financiers, and profound thinkers, giving their forecasts of the conditions that will prevail after the war. I will not venture to make any forecast, but I feel sure that we shall be able to continue to use the funds of your Institution in safe and useful channels, not only while the war lasts, but also after it is over, provided the Chartered Banks continue to receive that measure of fair treatment which will enable them to maintain their present status of strength and efficiency. This country is under a great strain as we all know. Men, money, crops and ammunition are demanded of us to the utmost limit of our capacity, and let us hope the strain will not go beyond the point of safety, as disorganization would follow, and defeat our aim to keep Canada well organized, productive and solvent, and in good shape to help to win the war. There is another matter I wish to speak of very briefly. It is a question I know you all take a deep interest in. I refer to the subject of Vested Interests. Some strange doctrines have recently taken possession of the minds of many people on this subject. It is a phase of the war excitement. I am enthusiastic on the subject of fair play towards Vested Interests. You and I, gentlemen, as bankers, and Bank shareholders, are the natural guardians of Vested Interests. We must argue against and oppose the mischievous propaganda of unthinking and illogical people. They will tell you that this is a socialistic age and complain that banks and large capitalists are banded together to keep on amassing wealth to the detriment of the conditions of the general community. We may answer this in saying most truthfully that Banks themselves are absolutely socialistic in their methods. They accept money from those who have it, and lend it to those who need it and can use it safely. The great resources of any large bank belong mainly to its depositors, its own capital being, comparatively speaking, quite insignificant, nor do its depositors belong to any one particular class. It is a careful trustee of millions of dollars belonging to all classes. In our case, for example, the large total of our deposits and current accounts belong to so many thousands of individuals that the average holding is only about $500. Surely such depositors are not capitalists! Therefore, it would be most unfair to accuse us of being prejudiced in favor of great capitalists. The cost of the war is being paid for out of the savings of past years, and is now in some countries nearly approaching the limit of exhaustion, and the question of how interest charges are to be met engages the deepest attention of all classes. Here again the treatment of Vested Interests must be carefully guarded against unwise and wanton action; when we hear people talk about the conscription of wealth |