The Only a few words can be said here as to the policy of the party led by Sir Wilfrid Laurier during the year. It was not aggressive, the War issue remained too fundamental in nature to permit of much political action, the time for re-organization after the defeat of 1917 was not yet. The Opposition leader visited Montreal on Jan. 7-8 and conferred with Sir Lomer Gouin and other leaders; the press was full of rumours that he was about to resign and the Hon. W. L. Mackenzie King succeed to the position. The desire however, that Sir Wilfrid should remain leader was stated to be unanimous in the party. On May 13 the Liberal chief and Lady Laurier celebrated their golden wedding anniversary which was marked by a shower of flowers, by letters and telegrams of congratulation from all parts of Canada, and by the presentation on behalf of Sir Wilfrid's followers in the Commons and Senate of a beautiful golden salver, suitably engraved. From H. M. the King came this message: "The Queen joins with me in offering you and Lady Laurier our warmest congratulations on the occasion of your golden wedding, and we trust you may enjoy a continuance of your happy married life together." During the discussions in Parliament Sir Wilfrid spoke frequently but not as a rule upon party issues; his policy in the main was based upon avoidance of controversies or any enhancement of ill-feeling between Laurier and Unionist Liberals; Mr. Murphy's attack upon Mr. Rowell being the chief exception. In June Sir Wilfrid was stated to be in poor health with malnutrition as the chief element; in July he left Ottawa for an extended rest at Senator Casgrain's summer home at Val Morin, Quebec. On Aug. 15 he spoke at Three Rivers in a welcome home to Hon. H. S. Béland M.P., and urged the people to obey the Conscription Act which had become law: "Resistance can only lead to anarchy." A Liberal Conference was held at Ottawa on Sept. 17 but no important announcement was made. Speaking at Montreal on Sept. 29 he declared for the inclusion of Germany in the League of Nations and advocated Old Age pensions and Workers' insurance against unemployment and sickness: "Capital and Labour have to work hand in hand, for they are indispensable one to the other. Capital without labour is worthless, and labour without capital is hopeless. These are my last words to you, my fellow-countrymen-we are a nation divided in many ways; we must all unite to work together to bring a just and fair peace amongst ourselves and with all the nations of the earth.' At London on Nov. 19 Sir Wilfrid Laurier was tendered a banquet by his Western Ontario followers in honour of his birthday and 30 years of leadership; 300 men and women were present and a Western Ontario Liberal Association was formed with G. S. Gibbons of London as President; condemnation of the War-time Elections Act and "abhorrence at Government by Orders-in-Council" were expressed by Resolution. In his speech Sir Wilfrid declared it to "the eternal honour of Britain that War found her unprepared" and denounced the rumours of Britain returning to Protection; as a whole the address was general in terms and not specific in policy except on the one point of promising to call a National Convention of the Liberal party "to examine the problems to be laid before us when we know fully the conditions and results of the War," and "to endeavour to settle them on the line of Liberal principles." The close of the year showed a revival of Liberal vitality. During the Provincial Conference of November, Hon. W. E. Foster and some other Provincial leaders discussed matters with Sir Wilfrid; on Nov. 25 Hon. Walter Scott, ex-Premier of Saskatchewan, in the Moose Jaw Times, came out against the Union Government, while the Regina Leader of Nov. 27 declared that the Government had "outlived its mandate and its usefulness;" to a correspondent in Winnipeg Sir Wilfrid on Dec. 4 wrote a long letter defending his belief that a time would come when Germans could again resume in their hearts the spirit of Goethe and Schiller. The resignation of Hon. W. R. Motherwell from the Saskatchewan Government on Dec. 10 involved a vigourous attack by him upon Union Government, its conditions, policy and shortcomings; at Winnipeg on Dec. 19, A. McLeod, President of the Manitoba Liberal Association, expressed delight that the party was purged of certain professed leaders in Liberalism and of newspapers that were alleged to favour class privilege to uphold the rule of the rich few and overlook human interests. He emphasized his belief in the dawn of day for a new Liberalism. Other Liberal incidents of the year included the retirement of Lindsay Crawford from The Globe and establishment by him of an organ devoted equally to Laurier-Liberalism and support of Canadian Independence; the deaths in action of Capt. W. N. Graham, son of Hon. G. P. Graham and Lieut. Lemieux, son of the Quebec party leader. CANADIAN CONDITIONS AND INTERESTS OF 1918 Canadian Banks and the War. No interest at this time affected so many people, individually, as did the Banks and no combination of interests or individuals was more concerned in War conditions and results, or as it turned out, more patriotic in policy than the Banks. To say that they were well managed is a trite expression; the mere fact that no wave of suspicion or unrest ever reached the doors of a Canadian Bank in 41⁄2 years of war is sufficient proof; the popular confidence was shown in the increase of public deposits from a total of $1,012,739,990 on Dec. 31, 1914, to $1,565,419,884 on Dec. 31, 1918. With restrictions on borrowing abroad and large advances to Great Britain totalling $350,000,000 for the purchase of munitions in Canada; with staffs greatly cut down by the calls of war and a record of voluntary enlistment hardly equalled by any other class in the country-a total of 7,741 up to Jan. 15, 1918, out of a staff of 19,383 in August, 1914 and 2,000 more drafted in 1918; with demands of all sorts for developing war industries and aiding essential industries and helping agricultural production and contributing to patriotic causes; the Banks had a most responsible place in the conduct of the War and the holding of popular action along lines of national well-being. The figures of the business done by them in these years will indicate the results of their policy-a policy guided largely by the Canadian Bankers' Association, of which Edson L. Pease, Vice-President of the Royal Bank of Canada, was President in 1918: Particulars Gold and Coin.. Capital Paid-Up Reserve Fund Dec. 31, 1914 Dec. 31, 1915 Dec. 31, 1916 Dec. 31, 1917 Dec. 31, 1918 105,660,507 122,495,227 854,546,031 859,746,102 902,948,540 930,312,318 1,315,008,748 128,426,724 195,637,608 250,274,854 246,064,580 119,153,924 1,555,556,815 1,737,992,244 1,948,044,256 2,323,163,783 2,689,835,181 113,916,913 113,987,577 113,346,341 111,673,776 109,492,397 113,070,859 112,457,333 113,383,343 114,673,776 116,015,825 105,969,755 122,199,582 148,785,287 192,923,824 1,012,739,990 1,144,680,651 1,303,215,134 1,565,419,884 1,669,507,617 Deposits Elsewhere 98,901,413 134,650,183 162,860,614 174,779,104 206,845,143 Total Liabilities 1,314,646,254 1,499,283,690 1,706,948,568 2,081,733,392 2,448,251,632 Public Deposits 224,501,117 The responsibility of managing 2,000 millions of money in days of world warfare was fully realized and in July 1918 Mr. Pease as President of the Bankers' Association, issued circulars to the General-Managers of all Canadian Banks in which he declared that manufacturers should carry as small inventories as possible, and avoid payment of large dividends, and that loans to increase production on the farm should be given right-of-way. During this year a distinct change occurred in the relations of farmers and the banks. There was a broadening of the basis of credit, a freer hand in lending to producers, greater satisfaction amongst farmers in general-as expressed by R. C. Henders, M.P., President of the Manitoba Grain Growers and others. The policy as to Victory Loans was a generous one and money was lent upon these bonds, or to help in purchasing them, as freely as the exigencies of banking would permit. The calls upon Savings Banks and other deposits for national loans were heavy in 1917-18 but they did not check the steady increase in such deposits. Meanwhile, Canada was concerned, also, in the heavy gold shipments to the United States although it was largely as the representative of Great Britain upon this continent that she figured in the huge total of $1,390,771,619 worth of gold exported to the United States in the years 1914-1918 (9 months of 1918) out of a total American import of $1,804,290,003. The general increase in the country's business was shown in the enlarged clearings of Canadian Banks which grew from $10,557,060,950 in 1916 to $12,469,426,435 in 1917 and $13,763,803,755 in 1918. As to the War, the following table, supplied by courtesy of the Canadian Bankers' Association, shows the total enlistments of Canadian Banks to Oct. 14, 1918: It may be added that the Royal Bank had 171 killed in action, the Bank of Hamilton 35, the Merchants' 73, the Dominion 52, the Toronto 59, the Commerce 250, with 302 wounded, the Union 108, the Nova Scotia 82. Of other war incidents is the fact that the Dominion Bank staff won 14 decorations, that of the Merchants' 11, that of the Commerce 54 and of Hamilton 9; the total contribution to Patriotic funds of $122,150 by the Merchants' Bank may be mentioned to illustrate the figures in all the Banks of which exact details are not available; the splendid memorial publication of the Commerce in its 11 pamphlets called Letters from the Front which described the services and indicated the heroism of its 1,600 enlisted men. During the year 160 Bank branches were opened and 33 closed; towards the end of 1918 a movement began which promised wide development in this respect. Two important amalgamations took place in 1918-the Bank of Montreal absorbed the Bank of British North America with its total Assets of $75,418, 448 and 92 branches and the Royal Bank of Canada took over the Northern Crown with its Assets of $27,251,090 and 113 branches. This left the total Assets of the three greater Banks at the close of 1918 as follows: Montreal, $536,900,339; Royal, $422,809,182; Commerce, $422,229,276; a great deal of discussion followed as to the advisabilty of such amalgamations with, however, a very conspicuous current example in Great Britain where Lloyd's Bank absorbed the Capital and Counties, the National Bank of Scotland and the London and River Plate with total deposits, finally, of $1,525,000,000, a total capital of $45,000,000 and total Assets of $1,675,000,000. The vital reason given was the need of strength in view of current and future world conditions. Banking incidents of the year included the formation in London of a British Overseas Bank Association with Canadian, African, Egyptian, Australian, New Zealand and Indian institutions as members, T. H. Whitehead as Chairman and Charles Cambie as the Canadian member of the Executive; the declaration of E. L. Pease, Royal Bank (Jan. 10) that "If we had a Bank of Re-Discount patterned somewhat after the Federal Reserve Bank in the United States it would render legitimately available millions of assets in the form of high grade commercial paper now lying dormant in the portfolios of the Banks' and approval by E. F. Hebden of the Merchants and some others; the establishment of new Banking hours-9.30 to 2.30—which began on June 1st; the celebration by the Canadian Bank of Commerce on July 24 of the 50th Anniversary of the services of its President, Sir Edmund Walker, C.v.o., LL.D., D.C.L., by the issue of a new and beautifully designed series of bank notes and the holding of a Dinner in honour of the occasion at which Z. A. Lash, K.C., Vice-President, presided and delivered a notable address with a reply of fitting reminiscent character from Sir Edmund. The House of Lords, sitting in Appeal, decided on June 25 that the Bank of Montreal could not be held responsible in a case where Capt. C. E. Banbury charged one of its managers with advising him wrongfully as to an investment; the death of Brig. Gen. The Hon. James Mason, 1st President, General Manager and founder of the Home Bank of Canada on July 16 caused much regret in financial, military and public circles; it was announced on Dec. 27 that the Union Bank of Canada had formed a close alliance with the National Park Bank of New York and had organized a subsidiary joint Banking corporation to promote trade with the Orient; the net profits of 11 Canadian Banks reporting up to the close of 1918 showed a total of $15,040,435 compared with $13,756,994 in 1917 but the highest dividends were from 8 to 12 per cent. and one at 16 per cent., compared with dividends in New York which ran from 16 as high as 30 per cent. in several cases. The chief Banking appointments of the year were as follows: Union....... Assistant General Manager-London Name Union. . Assistant General Manager-Winnipeg F. W. S. Crispo Union.. ....Director Union...... Director Union.. . Director S. E. Elkin W. H. Malkin A. Hitchcock Wellington Francis, K.C. A. G. C. Du Boulay D. R. Clarke A. McTavish Campbell The Problem of Prices in Canada. The increase in prices which the people had to face in these war years was, upon the whole, unavoidable. There was profiteering of course, but it was largely a result, not a basic cause, of the general condition. As the official Report of the Canada Food Board put it late in 1918: The main cause of the tremendous rise in prices was the increasing scarcity of supplies available to the Allied nations, and the wild bidding that occurred for these when each country was competing separately for supplies. The Food Controller (Mr. Hanna) was greatly criticized at an earlier stage for not regulating and controlling prices, but this was difficult or impossible until the Allied Government should unify and regulate their prices and methods of purchase. If, for instance, the French Government inade a purchase above the ruling Canadian price, the local price had to advance; otherwise the whole of the product, or a large part of it, would have been diverted into foreign channels and the local scarcity have raised the price to meet local demands. |