The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

BANK OF MONTREAL: NINETY - WIGHTH ANNUAL RE- PORT SHOWS BANK IN VERY STRONG POSITION. Exceptional interest attaches this fear to the Annual Report of Canada's leading' Bank, and the addresses deli vered at the Annual Meeting by the President and General Manager. They afford an insight "into the financial consequences of a year of war on the country generally, and into the out- look for the future, as interpreted by | men, ~yho haye every opportunity to judge it. Mr. H.'V. Meredith, the President, pointed out that the effect of the war on Canadian trade had been less in- jurious than had been expected, and FREPREE Mr. H. V. Meredith that this year's bountiful harvest may not only be expected to stimulate cur- rent trade, but to; attract renewed emigration to Canada. 'The Annual Report shows the Bank of Montreal in a position of unprece- dented strength. With assets of $302,980,5564--an increase "for the year of $38,800,138--it takes rank with the most powerful banking insti- tutions in the world. Of this enor- mous sum, no less than $170,007,668 is in cash and liquid assets. This is over 64 per cent. of the Bank's total public liabilities--a ratio whose sig- nificance will be better understood when it is compared -with 55.4 per cent. last year, and a little less than 50 per cent. (considered a high pro- portion in normal times) in 1913. While holding so large a proportion of the Bank's assets in liquid form does not tend to large profits, it is a source of great strength not only to the Bank, but to the whole of Canada, in these trying and difficult times. The profits for the year, however, were most gratifying. Amounting to $2,108,631, they provided for the usual ' quarterly 'dividend 'and two 1% bonuses on the Capital of $16,- 000,000; the War Tax on Bank Note Circulation," $127,347; and left over $60,000 to be added to the Profit and Loss Account, bringing the balance of the latter up to $1,293,952. This, of course, is in "addition to the Rest Account of $16,000,000---equal to Re Capital. Owing to the reduced Volume: of commercial business in the country, the current loans dropped from $108,- 345,332 in 1914 to $99,078,506. Loans '0 municipalities, on the other hand, show an. increase of over two mil- ions, reaching the figure of $11,203,- 172. : One of the most striking and im- rortant features of the Report is, 'the emarkable increase in Deposits. Those bearing no interest have in- reased during the year from: $42;- 89,031 to $75,745,729, while -interest- earing deposits have grown to.$160,- 77,083--a total increase of $39,800,- 38. Though this is partly accounted or by special transactions, it must e regarded as highly satisfactory nd an especial mark of public confi- ance. In reviewing the year, the President id special stress on the record har- ist in the West, where a greatly creased area under cultivation has ven the highest awerage. yield in e history of the country. The esti- ated value ofthe grain crop - of anitoba, Alberta and Saskatchewan placed at four hundred million dol- 's--a sum which 'could be depended| on to liquidate. much. indebtedness d stimulate current trade. 'duction of exportable articles than last year, and the great" crop surplus has-still to go forward, "Comparing - the: foreign trade. ot Canada for the seven-meonths' period ending with October, - imports have declined from $390,544,000 in 1913 to $253,107,000 in 1915, while exports: of domestic products, as I have said, have risen from $245,550,000 to $326,- 430,000; and adverse balance of $145,- 000,000 being converted into a favor- able balance of $73,323,000, or a bet- terment in respect of foreign trade of no less than $218,000, 000 within the short space of two years." . Taking a prudently optimistic view of the future, Mr. Meredith said: ' "The position of Canada is a highly favored one, with an assured future of growth, development and general prosperity. At present, however, we live in the shadow of the great war, to which all else must be subservient. What its duration will be, and the position in which its termination will find us, can be matter of the merest conjecture. The vast armies now en- gaged in the struggle cannot be kept in the field indefinitely. The financial factor is daily assuming increased importance, and in this respect the | advantage is unquestionably with Great Britain and her Allies.' "After the war, a readjustment of trade conditions is to be expected. The flood of wealth which has attend- ed the export of munitions and war supplies must -of necessity be largely curtailed, -and a new set of problems will have to be faced. As I have said oh former occasions when I have had the pleasure of addressing you, if economy be exercised to meet the in- creased burden of taxation, of which we must bear our share, and the pro- in- creased to the atmost extent, ta.pro- tect our gold supply and minimize oar borrowings, and if we keep strong in working capital, then no matter what difficulties the future may have in store for us, we can look forward to them with a degree of complacency. Our agricultural resources and unde- veloped wealth will enable us to bear the strain which may be imposed upon us, and we shall in the end come safe- ly through the period of economic upheaval and world-wide ~conflict-- with a larger debt, it is' true, but with our ability to meet it: unques- tioned and our economic position not seriously impaired." of GERMANS FACE HARD WINTER. Predictions that the approaching winter will be very severe have in- spired comparisons between the--Ger- man campaign in Russia and Napo- leon's Russian campaign of 1812, Abb: Moreaux, of the Bourges (France) Observatory, points out that a curve indicating the European lo- calities where the average tempera- ture in January is zero centigrade, or 32 above zero Fahrenheit would pass along the coast of Norway, protected by the gulf stream from greater cold, ascend abruptly along the west coast of Denmark, and follow a line consid- erably westward from Berlin, turning eastward in the region of Trieste to the Black and Caspian Seas. Another curve marking a zone where the aver- age temperature is 14.degrees above zero Fahrenheit would comprise Ber- lin, Vilna, Riga, Dvinsk, Moscow and Petrograd. 'To make up this average, however, zones of greater. cold are comprised, the maximum at Petrograd being 38 below zero, and at Moscow AT below zero Fahrenheit. Examining the situation from a meteorological point of view, Abbe Moreaux finds confirmation of the pre- diction of naturalists in reviewing, in his opinion, a period of cold winters, and he thinks that the German sol- diers may experience the same vicis- situdes as those that cost Napoleon 450,000 men from the "Grand Army." Larrey, who wore a thermometer during Napoleon's Russian: campaign, has left records showing that as early as November 14 the "Grand Army" 'had to endure a_ temperature of 12 below zero Fahrenheit on the line from Vilna to Moscow--the retreat having been begun October 18. From November 17 the thermometer went down rapidly to 22 below zero; De- cember 3 to reach 34 below zero when the retreating army reached Malode- cyn. Equally low temperatures, ac- cording to Abbe Moreaux, are almost certain to prevail over considerable parts of the German front if it is maintained on the present line and are almost certain to overtake the German forces in retreat unless they abandon their positions immediately. NORM Quite a Feat. There is in the employ of a Ver- Referring to the remarkable change | mont man an Irishman who recently Canada's position. from a debtor-¢o [met with a domestic affliction. Yréditor 'nation, Mr. Meredith said: As soon as the employer was advised, 'In the seven months™efding Octo- | ihe sought out the Celt and offered © 81st, 1913, the value of exports Canadian products was $245, 550, | » and fin the same period .of 1914- 3 $226,757,000; while this. year Rl se seven' months. we have exported replied the Irishman. "his condolences. "I am sorry to hear, Daniel," said he, "that your good wife is dead. " "Sure, 'tis a sad day for me, sir," "The hand that 1adian products of the value of rocked the cradle has kicked the 6,43C,520, L TONNE or $100,000 1000 'more bucket." 4 | statement reveals the preponderance -| four at the outbreak of war, +and France would have been, to all BRITISH "oman Or §4 (HE SEA DOOMS GERMANY TO: CERTAIN DEFEAT. How Great Britain Upset Emperor William's Hopes of Con- aquest. "An article, entitled "The Vac -* Sea Power; If the British Fleet Had Not Moved," was written at the re- quest of Sir Gilbert Parker by Mr. Archibald Hurd, the famous British naval expert, for the New York Her- ald. In it he says: The Germans had so completely outdistanced all the other continental powers of Europe in ships of war that on the outbreak of hostilities they with the co-operation of Austria- Hungary were absolutely assured of the command of the sea if the British fleet did not move. The following possessed by the central powers: Battle cruisers .. Pre-dreadnoughts-- . Battleships ....... 19 '8 27 Armored cruisers . 19 6 25 Cruisers «..e...en 13 9 22 Destroyers ....... 84 95° 179 Torpedo boats .;..150 25 175 Submarines ...... 53 26 78 Barred German Landing. Sea command is still exercised by. armored ships and cruisers. In the first line of battle, the dreadnought class, the odds were twenty-four to In the second, thirty-two to twenty-seven, but of the Russian ships several were shut up in the Baltic. In armored cruisers the strength of France and Russia--the ships being mainly obso- lescent--was more apparent on paper than real, and in scouting ships the central powers had no mean advan. tage. Even if .tely Lad joined the powers of the dual alliance, Germany and Austria-Hungary, with stratege- tical advantages of no mean value, would have possessed a sufficient mar- gin against their opponents. 1 There would have been no blockade of the North Sea. What of that? it may be said. Well, it would have meant that the Germans could, with slight risk, have transported troops to any, point on the French coast. The value of superior sea power in amphi- bious warfare is the element of stra- tegic surprise which it confers on its 'possessor. The French fleet would have been tied in the Mediterranean by the menace of Austria-Hungary, and the German navy would have had no difficulty, owing not to superior seamanship, but to superior numbers, in seizing the command of the North Sea and English 'Channel. Destroy French Commerce. But that is ndt all. The Germans would not only 'have obtained this overwhelming military advantage, but. would have been able to shut off all French oversea commerce. Nor again is that all. Russia had no men of war of great fighting weight in the outer seas; the Germans were 1epresented by some of their most poverful and swift crui- sers. What would have been the fate of the mercantile marine of France? These merchant vessels represented in value many king's ransoms. About sixteen thousand sailing ships and two thousand steamships would have been in danger, together with their cargoes. Russiid's' merchant ships would have shared the same misfor- tune. Cause of German Hate. long would it have lasted? - Russia intents and purpsses, besieged. Nei- ther country would have been able to use the sea for any purpose. That condition would have reacted on their military and economic power. They would have been in a position to bring in no food, raw materials, nor muni- tions. The Gernans, and not coun- tries of the Dual Alliance, would have had the run of the neutral markets of the world for munitions, men, and money. On the American continent alone there were--and are--about twenty million | Germans and Aus- trians, who could have supplied not only men to reinforce the armies of - Ger. Aus. Total. Dreadnoughts-- . Battleships ....... 16 3 19. Battle cruisers b -- & Pre-dreadnoughts-- Battleships ....... 20 12 32 Armored 'cruisers . 9 3 12 Cruisers ..... 'ves 48 10 58 Destroyers ....... 130 15 145 Torpedo boats . 80 58 138 Submarines ...... 80 6 36 i ' France. Rus. Total. Dreadnoughts--= - oh Battleships ...... . 4 ~-- 4 '| pile themselves up France and. . For the .periad' of the war--how |. "* " ERT CT oe forien to-make munitions and other men '|of great financial and industrial ex- periénce=--some of them millionaires-- to assist Germany in getting gold, raw materials for all "purposes, and. even luxuries. Life behind the: lines of the German armies would have con- tinued much as under peace condi- tions. The population of the German Rusdia and' 'France, they could count .|on using all} ithe seas to their advan~|" tage, drawirg 'fron' them. ever ything they real Were their: 'calculations ill-founded 2. : Tn one partieular they: were. They assumea Witt fdence that the Bri- tish fleet would take. NO Party ia wie War.: They were wrong. That one error of judgment made all the differ- ence: it is more than probable that it cost the Germans the victory they be- lieved, in the last days of July, 1914, to be within their grasp. Why? When the war broke out the relative | strength of the British navy was al-! most in the proportion of two to one in comparison with that of Germany. Som Empire weré eager for 'war, bécause | they believed that even if Italy joined i ms SARIN An EE Bm eu 2 Chapped Hands Quickly Healed Chapped hands and lips always come with cold weather, but ~Vaseline- CAMPHOR ICE Made in Canada Think what that meant. All the con- ditions at sea 'were instantly reversed. | German hopes were doomed when the ! German anticipations as to the use, which would "be made of the British navy proved unfounded. w Why do'the. 'Germans hate the Bri- | tish people more than French or Rus- | sian? "It is not because of the wealth of England, or her trade or her col- onies or her shipping or her armies of 3,000,000 men---it is because the Bri- tish fleet so decisively turned the scale that from the date of the British ultimatum *the £300,000,000 which the jesty of the greatest sea power, she! could not obtain the rich dividends en* '| which she had counted with complete | | confidence. . Navies Win Land Battles. The predominant influence on the | history of the world has been not the! soldier, but the sailor. - A "Frenchman once said that it was the ships of Nel | son which won the battle of Waterloo. i England has never possessed a great' army, nor has the United States When the German Emperor read the books of the American seaman, Ad- miral Mahan, he determined that he must have a great fleet, because from the days of Xerxes and Themistocles navies have decided the fate of enmi- pires. It might be said that all the decisive battles of the world have been fought on the seas. That would seem a bold statement, but itis a clear approximation of the truth, Without soa power, land power--that- is; sol- diers--must ve unprisoned, anu ia 'modern economics conditions may well be reduced' to' starvation--starvation for want of shells as well as food. | He TOBACCO-TELLS WEATHER. Sailor's Weather Tips Gathered From Favorite Leaf. Soldiers and sailors have several ingeniqus ways of forecasting wea- ther. Clouds provide commanders with valuable clues as to the condi- tion of the weather likely to take place in the near future. A flat, widely-extended cloud, streaked like the markings on a mackerel, is a sure sign of approaching rain or snow. Small, well-defined, rounded masses of clouds, in close horizontal arrange- ment, are sure forerunners of storms. Fair-weather clouds are those which in picturesque heaps high in the sky, although when enemy had spent on aval expansion . became profitless.. Germany realized - as in a flash that, owing to the ma | : brings sure and speedy relief. Children especially nced Vase line Camphor Ice for their rough and smarting hands. Our new illustrated booklet de- scribes all the "Vaseline" pre- parations. A postcard brings it. AVOID SUBSTITUTES. In- sist on "Vaseline" in original, packages bearing the name, CHESEBROUGH MANU- | FACTURING CO. Consoli- : dated. For sale at all Chemists: and General Stores. ! CHESEBROUGH MF'G CO. A : {Censolidated) HH 1880 CHABOT AVE. MONTREAL dragged at the top they foreshadow mild thunderstorms. Soldiers are largely guided by the dawn in their opinions as to future | weather conditions. A high dawn which is first light behind a bank of clouds foretells wind, whilst an un- usual clearness near the horizon in the early hours is a very sure sign of { rain. A grey dawn is a reliable fore- | cast of fine weather, but the red dawn i means bad weather or rain. Red sunsets tell soldiers that fair weather may be expected on the mor- row, and bright yellow at sunset fore- tells wind and a pale yellow sunset rain. Sailors regard' 'tobacco as a valu- able barometer. It only requires a mere running of the fingers through the small pieces of shag to tell an experienced Jack Tar what kind of weather to expect. Tf +oharna ie civ uncovered whe a the outside atmosphere can reack it, it will indicatg very accurately the probable condition of weather for several hours ahead. When the tobacco becomes very dry, it is a sure sign that rain will not come for several hours. Should the tdbacco seem tough or not dry and not very crisp to the touch; »ain is near at hand. According to the different changes in the appearance and feel of his favorite weed a sailor can foretell rain or damp, cloudy wea- ther; or clear, fair weather devoid of rain. ¥ ; Do They Sleep Less? Women evidently sleep less men. Why so? Well, we seldom hear of a woman * talking in her sleep. than Cider gets sour with age--just like some of us. a aaa Why those Pains? T. A : corner. Here is a testimonial unsolicited "If I had my will it would be advertised on every street that has rheumatism and fails HEE ERAEE to keep and use Sloan's Lini- : 3 ment is like a drownin, man % refusing a rope."--4. J. Van } I Dye, Lakewood, N. J. - 1 : _Sloan's TS - B < | | i H he man: or woman pLLLLLLLLEE LEE S| a , the ! Central Powers in Europe, but ! £. $33 Cs {he