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fOP GOES OUR EGO: City tolks Kii'I towiispfoiile have been k^pkiiiK tluwn tliclr iiusos too long ^'t the farmers of Canada. Snob- bUlily, iliey have been considering: tlemselves a little better, a little ttrlghter .... than Iho average tiller of the soil. Of course the farmers have been ttu'nibinfr their nose.s back at the Ui-baiiitog. biit to little avail. I'litll Bow .... when the bureau of re- i«arih nt McOIll Vnlvcvsily makes 4 public pronouncement that the tTtrage farmer Is superior In both rains and tirawn to the averaRO ^ity dweller. "His Intelligence is itich Ei'cater" .... ?pcakln5 at his farewell dinner \fi Toronto last week former Prime ^Minister It. H. ncnnelt produred fviilence to show that the majority '^nieii who are leaders in the pub- jnc life of Canada come from rural, Bot metropolitan, areas. ! So let's come down off our high horses, urbanitos! â€" oâ€" FRANCES DILEMMA: To help <w ;:ot to lielj> Loyalist Spain is the al'emma that has been facing the iovornment of France the past two years â€" more aciitply. the past two igMnths, since tlie Italian menace In the Mediterranean has become â- iMO clearly defined. It looks as If France will go un- <er III cither case. A catastrophic pkuirc. Should Kiaiico do the hon- <)»ablo thing, now, by iilunglng in triTh aims and men to aid her sis- ter government in Spain, there is almost sure to be war. It would be Ihc chance Italy and (iermany have .'^ecM waiting for, so long. Rut Jstiouid France do the honorable I thing, her former allies on the con- ilnent might come lo her assistance 'â€"Russia. Poland, Uuinania, etc. If. however, France continues to Ignori' tlie plight of the Harcelona gtiviinmcnt, she will see an insurg- : cm victory In Spain quickly tol- jleT\cd by Italian ami (iirnian occu- pation. Surrounded by Fascist I states, then, on three sides, she will be trapped, her lift-liiies to Africa (where millions of army reserves ar" stationed) cut off. Kvpii the most pro-Franco men in *he French (loveHimcnt are b(!glii- . B!ng to realize the gravity of (he eluiation. Hut which way lo turn? , The next few months, maybe . iJPfeeks. will decide the fate of WlDE-OPEN SECRET: .\o won- der it took so long to catch the thieves, thugs, roi)bei"5, murderers rrho have been subjecting the fair city of Toronto to an unprecedented crime wave during the month of January. Iteason Is that all radio inftructions sent out to police cars tn pursuit of the criminals can be Jislcned to, by an.vbody, everybody, including the hunted ones, them- •fives. Under sucli circumstances « filaway isn't so diltl<ii!t to make. â€" oâ€" THE WEEK'S QUESTION: How !l Clermany planning to make mou- j out of its persecution of the eWs? Answer: Orinany would isrge into one central fund the Proceeds of all German Jewlsli capi- fil and property (providing llie Jeich with plenty of ready cash). JVhen the amount of Ibis Is estab- flflied, an international loan should M raised In the United Slates, Great Uritain, Holland and other countries sympatliizing with the Blii;ht of the fierman Jews. Jews |l«vinB Germany would be granted ?eitificatPs enabling them tn draw p the International loan for the Muivalent of part of their capital. Sut â€" Germany's repayment of the Interpst and principal of the loan (all I) Would he deppudrnt tipoii an Incieaso in Germany's cxiwrts. Part of the money received from the iii- croase in exports would bo devoted 10 service of the loan. Part, and teihaps, the greater part, would be sed In purchasing Germany's nc'-ied iparmament r.iw materials. The Canadian Government has pfivcn one pair of buffalo and one pair of elk to the Wellington Zoolofflcal Park in .Vew Zealand, Tanks Add Point to French Premier Daladier's 'Hands Off!' VOICE OF THE PRESS CRISP COMMENT Most radio advertised food« d9 not taste so good to ua as th«y do to the announcer. â€" Brandon Sun. Neither Hitler nor Mussolini smokes. Yet they are known to have the occasional pipe dream. â€" Kitchener Record. Seventieth Annual Meeting Royal Bank of Canada Just as a hint to Signor Mussolini who has indicated thi.t he had ambitions in France's colonial empire. Premier Edouard Daladier paid a visit to Tunis in North Africa and took occasion to warn all and sundry that France was ready to defend her possessions. At TOP M. Daladier is delivering a "hands off" address during a banquet in a Tunis hotel. "Tunis is French. It will stay French," he declared. The parade of tanks shown BELOW wending its wav through the colorful city with turbanned and burnoused desert dwellers mingling w-ith the European sightscor.s was among the reasons that Daladier thinks he's right. PUCK CHASEiilS NEWS OF O.H.A. DOINGS I/eo llelse has resigned as coach of the Brantford Seniors. The de- parture of the likeable veteran Is regretted on all sides. Leo did his best but there just wasn't the ma- terial available to produce a winner In the Telephone City. The old say- ing, "A coach Is only as good as his players," has come to life again. In the meantime Manager Pennell, who handled the team last season, has taken over the bench duties. Port ('olborne Sailors have decid- ed to take the Eastern Hockey League tour after all. They leave this week. The game Niagara Falls at Goodyears for Jan. 27 listed last week as cancelled will be played as scheduled. Dave Neville, veteran ci>ntre and right-winger, made a comeback with Goodyears in Port Colborne last week. He played on the Canadian Olympic team of 1936. He has play- ed Senior hockey In Hamilton and Montreal. At present Neville is working for his bank in a Toronto branch. Qooney McGowau got Into his first ahurric for many seasons when high slicks with Robby I.,aiirent of Goodyears was the order over In Port Colborne. It was a harmless "brush", yet both were given major penalties. cows in 1937 produced 17,188,- fil7,70O pounds of milk, an all- timi; record; but in 1938 the pro- duction, based comparatively, will be substantially higher. The increase in consumption of raw milk, ice cream and condens- ed milks affect the butter and cheese production, but the butter production will be 20,000,000 lbs. over 1937, while the cheese pro- duction will be around 12,000,000 pounds less. It tak . approxima- tely twice as much milk to pro- duce a pound of butter as a pound of cheese. Reports from Banff National Park in Alberta indicate that wild life is plentiful with an increase in partridg-c and grouse. THEV CAN'T BE BEAT Following the best handicapper of horse races during the year with a $2 bet on each race would have left the player $C2 in the hole. No one has yet discovered who can beat the races. â€" St. Cath- arines Standard. JINGLE BELLS The best thing about the big blizzard this year has been its en- couragement for rural Ontario to bring out the cutter and ths sleigh again. When a Canadian generation grows up without hav- ing heard the music of sleigh bells it will be time to view something or other with alarm. â€" Kingston Whig-Standard. COMPULSORY VOTINGâ€" YES? It is a rather sad commentary on our democracy when an or- ganization like the Associated Hoards of Trade of Manitoba feels it necessary to endorse compulsory municipal voting as a means of combating the indifferent attitude of the voters at election time. â€" Winnipeg Tribune. NEGLECTING REFORESTATION The Ontario Government is giv- ing away millions of plantlcts ev- ery year to little economic pur- pose, and is leaving its own near- north â€" the natural home of the valuable pines and spruces â€" to be deforested without any ade- <iuatc effort to provid for a fu- ture supply of lumber and pulp- wood. Ministries come and go; Liberals follow and are followed by Conservatives; and both alike are incapable of undertaking any systematic and effective plan of preserving present forests and de- veloping new ones. â€" Guelph Mer- cury. The Seeds Act, the Fertilizers Act, the Agricultural Pests' Con- trol Act, the Inspection and Sale Act, and the Hay and Straw In- spection Act are six Acts of Par- liament which standardize the qua- lity and regulate the sale of seeds, feeds, fertilizers, agricultural poi- sons, binder twine, and hay and straw in Canada. These Acts are a few of the many which are ad- ministered by the Dominion De- partment of Agriculture. LIFE'S LIKE THAT By Fred Neher Niagara Falls are the team ot watch. Coach Mickey Koach has ths boys playing his renowned de- fensive style. Goalie Jolmny Mow- ors Is ratfd by critics as being a real find. Output Of Milk Hits New Record Ninetecn-thirty-cight was a re- cord for milk productiot.. It has been estimated that the 3,873,800 Canadian umI International Ecoaomic Situation Discussed bjr Morris W. Wilson, PresMent and ManaginK Director â€" Commends New Trade Agreements. â€" Points Out Failure of Economic Policies of Totalitariap States. "I'd u»e a hoe here if I were you!" Sydney G. Dobson, General Manaker, Reviews Balance Sheet â€" Continued ProgreM Shown. â€" Present Outlook Distinctly Encouraging. A comprehensive review of econ- omic conditions both In Canada and abroad with particular reference to the dangers of the economic po- licies now being pursued In Ger- many and Italy, featured ths address of Morris W. Wilson, Presi- dent and Managing Director at ths 70th Annual Meeting of The Royal Bank of Canada. Mr. Wilson referred with satis- faction to the fact that conditions In Canada had been relatively stable despite the setback In the United States. Recovery from tho recession which was general dur- ing the closing months of 1937 and the first half of 1938, had made notable progress and business In Canada had now resumed Its up- ward trend. MINING INDtiSTRY Since the Inception of the depres- sion In 19,10, mining had consistent- ly furnished the backlog and the most encouraging factor In Cana- dian Industrial life. Volume of pro- duction in many instances exceed- ed In in.-iS the hlKh fisures of 1937. The output of gold had again reach- ed a new record of approximately 4.CSO.no() fine ounces, valued at $lCl.."nn.noo. an increase of 14% over 10.'!7. The spectacular progress achipved in petroleum operations in the Turney Valley of Alberta was also noteworthy, stated Mr. Wilson. By the end of November, fiO crude oil wells were In produc- tion and drilling was under way at 20 others, with output during 1933 175 TJ, greater than In 1937. Unemployment and relief were still serious, although conflnuod improvement was reported. Tourist trade returns had been most encouraging, expenditures by tourists in Canada totalling ap- proxiniatelv $27.";.iion.flnn during 193S. NEW TRADE AGREEMENTS Mr. Wilson commended highly the new trade agreements between Canada and the United States and between the United States and Great Britain. "These," he said, "mark the greatest departure from the policies of trade restriction and national self-sufficiency since the war and cannot fail to further the common outlook and cordiality ex- isting between the British and Am- erican peoples. It Is striking that the agreements, covering an enor- mous volume ot trade and embody- ing hundreds of reductions of duties and lessened restrictions, include not a single Increase. At the pres- ent time no detailed analysis of the effect of the agreements on specific industries Is feasible but there can be no doubt that they will bring about an impn'-r^int ccnnnsion In trade." Referring to the sutiject of '"in- terest rates," Mr. Wilson remark- ed, "I belleT* it often true that If the relationship exists long enough, the debtor comes to hate his cred- itor. By the same token, I suppose he begins to question the morality of Interest once the payment seems a burden. If you believe In the principle of private property you must believe In the legitimacy ot interest. If It is proper for a per- son as a result of thrift to acqulfsf say a small property, there are few, it any. who would suggest that this property should be available for use l>y others without some cow- pensation. Therefore, it compensa- tion for the use of propert.v- be legitimate, why sliould compensa- tion for its equivalent, the cost ex- pressed In terms of money, be less so?" INTEREST RATES "You frequently hear It asserted that the burden of interest has be- come intolerable and that relief can only be brought about by dras- tic measures. A forced conversion ot public debt is sometimes urged, accompanied by reference lo the action ot Australia in 1931." Com- meMting on this point of view, Mr. Wilson said that the average rate on the outstanding .\iistralian debt had l)ceu cut by 1\'>% since that WONDERLAND OF OZ By L. Frank Baum Whi-n fliiph aliimliled over ths rncks In nppronrhlnK th* bride*. th« rrrnliir* opsneil Its •/•â- . from Which llnr flnmpa nhot In all dlraetlons, and after Innklnf at the Intrudtr Vfry wlrkrdly the iioarlst Alligator cinied It* eyelldi again and lay atlll. riuph »aw Ihara wai no room for him tn paai thx alllsatnr en ths nar- row hrlda*. lo h* said: "Uood mom- Ins, friond. I dnn't Ilka to hQrrjr rou but pira** tall m* If you ars eoming down or going upT" ".Vellher," mapped tha allleatnr, clicking Iti cruel Jaws tosather. Th* f antral hailtaled. "Are you llkriy liar thar* longT" h* aiked. "A fsw hundred yaars or ao." laid th* alligator. Ouph aoftly rubbed th* •nd flf his not* and tried tn thitik what to do. "Do you know whether tn* Flrat and Foremoat PhanfaKin of rhanfaitico l> at home or not?" h* presentlr Inquired. "I expect h* is, aealBS he !• alwajra at home," re- plied the aXVStttor. "Ahl Who Is that coniliiR down th mountain?" iiKkcd the Kiiome, Knilng upwaril. The nllli;iitor. niin- pi'i-tlng nolhinK. Iiirnrd iiiiil looked over Us nhoulihr and nt luice tiiiph run to the Itrtilue »nrl trrtpoil over the aenllnel> hm k hpfom It rould â- urn bark RK'iln. The .-jr.'*!' ' ii)oii<«ter made a an.ip nt the hi. iih-x left foot, hilt mi-i-ioil H hy fully iin 1 â-  'h. "Ah. Ha!" I'lnutifd the <trh*T!il. \,';io waa now n^ifely od the tnoiintnin p.ith. "I fool.d jroii ihnt lime." "So you did. and perhnp.a you fooled yoursoir." retorted the alllKa- tor. "(Jo tip the moimtnln. If you dar* and flml out what the First nnd Foremost will do to you." "1 will." declared Ciiph. boldly, nnd on h* went up the path. At flr.-it the scene waa wild eiiotiith. but crnclimlly It arew more nntl more n\yfiil In ap- pearance. .Ml the rork.^i li.ii) ahapea of frlKhtful beinKi. .'Suditenty Iber* appeared bofoie the Riiome a m.in with the head ot an owl. country's debt conversion In 193i. Ths average rate of Interest oa Canada's outstanding debt in ths •am* period had been cut 29%. •'The best way to keep the burdea ot debt as light as possible," con- tinned Mr. Wilson, ''Is to malntsia your credit at high standing and thereby obtain the benefit of low- est current rates. The rate at which the Dominion borrows com- pares most favourably with that of other flrst-class nations." FOREIGN AFFAIRS The situation abroad remained difflcult, stated Mr. Wilson, and expressed the opinion that "fata will overtake the totalitarian coun- tries In due course If, In their efforts to become strong, they con- centrate on the military point of â-¼lew and disregard the first prla- clples of sound economics as they are doing at present." The decline In German exports had become acute since the September crisis. "Data available Indicate." he said, "that in 1933 total exports were actually less than in 1932 and 1933, the nadir ot the world depres- sion and the last two years prior to the Nazi regime." "Internal business in Germany is exceedingly active and full employ- ment has been achieved, but only at the cost of colossal deficits in the Government budget. Indeed one German authority has stated that an amount eijlial in .50% of tin national income is .ibsorbed by Government and party aeencies." It was obvious, said Mr. Wilson, that no country could pursue such a po- licy without producing serious in- flation and. unless it were reversed, he could not see "anythinz but a continued lowering of the standard of living in Germany. These re- marks apply with f"ual force ts the Italian situatinn " The decline in business activity In Great Britain had been halted and business in the United States had. since May last, shown the most rapid recovery ever reported • In its statistical annals. Mr. Wilson also spoke w^ith satis- faction of the closer co-operation and mutual understanding achieved In relations between Great Britain. France and the United States and also the countries ot North and South America as evidenced at the recent Lima Conference. ''The outlook for Canadian busi- ness is a.gain favourable and the up- ward trend would seem to l>e defin- itely restored." concluded Mr. Wil- son. "'The international situation is still obscure and further com- plexities may develop in foreign af- fairs. Barring such an erentaality, I am sure we may look forward to 1939 with courage and confidence." GENERAL MANAGER'S ADDRESS Mr. Sydney G. Dobson, General Manager, in reviewing the Annual Balance Sheet remarked that the bank's total assets were now at ths highest point since 1929 and total deposits had reached a new record level. Current loans increased mo- derately during the year but a more active demand for commer- cial loans was desirable. Taxes had. however, become an sver Increasing burden for the bank, "For every dollar distributed to shareholders by way of divi- dends, 71c Is paid out in taxes in Canada." said Mr. Dobson. Answering the criticism some- times voiced, that banks are invest- ing too larso a portion of their funds in Government bonds anJ too little in assisting business en- terprises. Mr. Ito'jsun said, "we cannot compel unwilling borrowcrj to use our surplus funds If. for various reasons, they are not pro- pared to expand their t)usiness. It would be a strange type of banker who would prefer the small retcrn from Government bonds to the more remunerative commercial rate." Mr. Dobson also pointed out that control of "crodi;" Is not with- in the power of the Chartered Banks but Is a prerogative of the Bank of Canada, which alone de- cides whether a policy of "easy" or "tight" money Is to be pursued. The atti'iiiion ot the shareholders was also tirawn to the educational publicity conducted by the banks through the newspapers last year, "it Is hoped these articles will help to clarify In the public mind what banks can do and what they are not permitted to do. and at the sam? lime emphasize how necessary a sate and sane banking policy Is to the welfare of the country." BUSINESS OUTLOOK Canada had escaped the more serious effects of the recession In business which first appeared In the United States a!iout eighteen months ago, concluded .Mr. Dob.^on. Conditions In Canaila had remain?*! comparatively stable and results achieved In 193S cot'ld he regarded as reason, ibly satisfactory. "Ths present oullook Includes a number of factors wh'ch are distinctly en- ronrasiu;." he said, "and I look forward In the fiiluro with ron- fld'.'nce. a« 1 lipllevp few conntrfes have as tvoaiising a fnture as baa our own."