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n SmOB RCPOBT: 1^ Tig SimU Mnn TIm Royal CemmlMion on Oo> minion • Provincial Relatlona Haa Praaantod a Plan for Or o a tar AaalaUnca to Municlpalltlea by the Provlncaa (No. ») Rlcbt boma aa tba Rowell-Sirola KaimrC cornea to ovmy CaBadlao, M la of partlcttUr Importauro to vwral Ontario. Not only U it im- portant to rural Ontario becauia tta Implenantation will mean a kottar Canada, mora able to ii>ok Attar ita full abara of carrylns on tko war In ita moat offectlTo and offtclent manner, but It will mean, â€" and tbla la an outgiowth of tba aam* tblng, â€" a a&viog in money •â- d effort onHbo part of the coun- try aa a wbole. Here, aa wa bare it now, there la trem«ndous overlapping In tba aonfUct between the i)rorInces and the Dominion aa to taxation, social â- ervlcee, and other aeiTtcee. Any- thinj; that will make this country et oura a better run country la to the Kood tor every one of us. Problema for the Province But there are particular prob- lema which will be dealt with much more effectively affe-ctiug the small eommunitics, the municipalitlei, tte locf^Vinstltutions, If the Re- port ia accepted by the Dominion and the provlncea at their con- ference which starts January 14tb. Tbeire are many local needa which now have to be looked after •nt of the taxation of the small communitlee which really are prob- Cia for the proTinces as a wbole. When a gi'eat part of the burden, â€"particularly that of the unem- Vloyed employables, and the pro- vincial debts and provincially (uaranteed debts, â€" ia taken from tbe ahoulders of the province (aa they will be if the Report la im- plemented), there will be greater •asistance to the local centres and Bunicipalltiee, by the prorince. Lovwer Taxea on Real Eatate Take the case of real estate taz- ae. The tax on property is high, far too high. Property has borne far aiore than it should for education. Tbat has fallen on the small pro- perty holder in greater proportion than It haa on the big property •wner. With the case and burden tt the province made lig'hter the province will be able to do aoma- thing towards the assistance of the •mall property owner, much more than Is being done now. The Report finds many cases of glaring in equalities, and also that real estate taxes are far too high. This ia because the municipalitlei •re badly In need of money and leal estate taxation la one way of getting that money. But implement the Report In its general recom- aaettdatlons and there can't help fcut be an easing of *he burden of tbe real estate owner. The Report dealing with inuni- atpal revenue for the country aa a whole finds that some SO per cent •( municipal revenue is obtained from real estate taxation. Burden From Small Man The Report goes on to say "We And many instances in which this tax (which for the bulk of the popu- lation Is the heaviest paid in the •owse of the year) is twice aa â- nch in relation to property in- «ome for residents of some areas •a for those in other areas in the â- ame province." implement th? JlowellSIrols He- port *nd the first step towards lower property taxation is taken. And It Is on the small man in the lural communities that that bur 4en falls. And remember the heart tt the Report Is this: place the harden of taiatlon on the source %cst able to pay It. Canad;i will be a happier place, • better run country if the Report it implementiMl. 'And there Is no me in the whole country who â- bould realize that b^ttpr than the Ontario farmer. Ontario May Curb Yule Tree Harvest Next Year Cutting of Trcea For Chrlatmaa Purpoaea May Be Prohibited Premiw M. R H«Dburn is critical •( the annual waate of Cbrlstmaa tfcea and it la quite possible that ^een'a Park may take reatrictive Mtlon to check the annual cutting It trees, or at least limit it to pre- twt cutting beyond the ability of tte market to conauma. "The treea are propagated and Mitributfrd at tbe expense of the tepay»ra of Ontario," aald Premier M, K. Hepburn. "We have built up Me of the largest and beat aya- ItBia of tree ourseriea In the world. I do not think that we should per- Prit ths trees which have bi>en aup- gUed from our nuraeriee to be cut §tmn for Cbrlstmaa tree purpoaea after they have attained a helgbt of â- ta or ^Ight feel, and I am defin- Italy against the destruction that haa been going on for years." Flour slocks in Canada in Oc- tolxr thia year toUlled i, 183,661 fcarrela compared with 940,606 barrcia in October, 1939. German Troop MovemenU iti Balkaiu Watched by Diplomats .GERMANY RUSSIA MltE5 With the vanguard of a new German expedition .estimated at be- tween 300,000 Mid 600,000 tioopa moving across Hungary to Rumania (black arrows â€" 1), diplomatic sources last week suggested at Budapest that pehaps Nazi Germany was planning action against Turkey and Greece (shaded arrow â€" 2) through Bulgaria, or preparing for a showdown with Soviet Russia (shaded area â€" 3), or simply strengthen- ing military forces in Rumania to assure civil order, or sparring for iwaitlon against Russia. THE WAR-WEE K â€" Commentary on Current Events ROOSEVELT CASTS DIE AGAINST AXIS POWERS In a dramatic broadcast, the first since hia re-election. Presi- dent Roosevelt last week atin-ed the democratic world with the de- claration â€" "based on the latest and best information" â€" that the Axia powers were "not going to win thia war". At the same time, stating that a British defeat meant that the U.S. would live at "point of gun", he .called upon kia nation to become the "great araenal of democracy", to do all it could to aupport the nationa defending themselves against at- tack by the Axis. The Convoy Question The President's call for "more akips, more guns, more planes, â€" more of everything" for Great Britain focussed immediate at- tention on proposals to send 60 more destroyers and some army airplanes to the British. But more Tltal than these was the .question of employing vessels of the American na^•y to convoy ship- ments of material to the Old Country. Tbe problem waa cer- tain to become urgent very shortly and upon its decision hinged the entry or non-entry of the United States into the war. (Before any further steps could be taken, however, Congress would have to approve of the President'* pro- gi-am). "Next Ninety Day*" The belief held by most obeer- vers last week was that Hitler would try for a knock-out blow at England soon, even before spring, timing hia "all-out" at- tack to come before the new American aid could be made af- fective. "The next ninety days will be crucial ones for England," declared Arthur Purvis, Canadian head of the British Purchasing Mission, in Wafhington, Christ- mas week. Hitler'* Counter-Blockade As well aa having to stand for- ever on guard against German invasion aftcmpts, Britain was having to fight harder and hard- UFE'S UKE THAT By Fred Neher How do you !ike it parted on the aide?" er Hitlei-'a counter - blockade which he carries out by means of submarines and dive-bombera and reconnaissance planes flying con- tinuously over the shipping lanes. Htiler knew, and the British knew, that North American pro- duction of planes and munitions upon which Britain was relying, would mean nothing unless deliv- eries could be made. "The problem for the Briti.sh," wrote c<jrrespondent John A. Ste- venson, "is to keep dov n the weekly losses of shipping to a level which will not iuterfera seriously with the flo^ of vital armaments and war materials from North America and the iteady influx of foodstuffs re- quired to maintain the present scale of rationed austenance for their population . . . Obviously what ia needed, ia a larger num- ber of effective escort ships." Battle of Eire The question of whether Eire, the only part of the British Commonwealth of Nations not warring with Germany, could maintain her neutrality was com- ing further to the forefront last i, week among the issues which may decide the war's outcome. The Battle of Eire was on. Stra- getically situated, the ports of Eire are a prize coveted by both belligerents. They conmiand the western approaches to the be- seiged iales of Great Britain; and possession of them would en- able Britain to protect the bulk of her seaborne traffic. On the contrary, seizure of the ports by the Nazis would make it possible for Germany to sever vital ar- teries of British commerce. « • • Rusio-German Tension A heightening of tension in Russo-German relations high- lighted the week's war news. The Balkan situation appeared to be rapidly coming to a head follow- ing reports of hundreds of thous- ands of Nazi troops moving into Bulgaria; of a German division arriving in Albania; of hundreds of thousands of Soviet troops massed along the Bessbai-abian frontier of Rumania. A dramatic move by Russia to seize the mouths of the Danube or the Dar- danelles was believed quite pos- sible. Turkey, Yugoslavia, and Bulgaria â€" chiefly Bulgaria whose Xing continued to stand firm against the Axis â€" had bad cases of the jitters. But the main German effort was still thougnt to be concentrating in the west, with an attack on Britain top- most on the agenda. • • • Diplomatic Defeat In the Far East, Japan suffer- ed an important diplomatic de- feat in its attempt to effect more friendly relations with Russia when Moscow refused to make premanent the temporai-y agree- ment over Jap fishing concessions •ff the Siberian coast. Further, the Soviet's refusal to accept the new order in China implied not only continuance of military as- sistance to Chiang Kai-Shek and ao-operation with the United States in Far East policy, but it meant that Japan would be un- able to relax vigilance on the Manchoukuan frontier or to pusli southward too aggressively. Changes Coming in Pacific Meanwhile China rushed plans for what appeared to be an early offensive against Japanese forces stationed in the Yangtze Valley, which would make impossible the transference of any large number of Japanese troops for a south- em drive. The New York Times' correspondent in Manilla last week foresaw definite extension of European warfare to the Pa- cific following intensification of German activities (surface raid- era, etc.) against British and other anti-Axis shippin;? there. He predicted immense changes in the Far East by February at the lat- est. • • • The Week at Home Prime Minister King will open the Dominion-Provincial confer- ence January 14 at Ottawa with a general statement of the Do- minion's attitude to the recom- mendations of the Rowell-Sii'ois Commission, dealing in public aeaaion with the relation of these recommendations to wartime and post-war conditions in Canada. The provincial premiers will then be called upon to give their viewst a'so in public, following which all aittings of tbe conference will b.) held in camera . . . News came last week of the formation of a Canadian Corps in England under the command of Lieutenant - General A. G. L. Mc.Vaughten, almost .simultane- ously with word that the eighth contingent of Canadian troops had arrived safely overseas . . . Butter Price Peg Action of the Wartime Pricos and Trade Beard in fixing a ma.ximum price for butte. during the winter months of low produi'- tion met with a great deal of comment and verbal opposition in the Dominion last week chiefly among the farmers who demanded that a minimum price also be set, for the summer months of heavy production. The Ontario Cabinet, through its farmer members, asked for a "showdown" with Ot- tawa on the butter price-peg i.--- isue and on the fixing of farm prices out of line with the risinj: costs of consumer goods and of production. The Minister of Ag- riculture, Mr. Dewan, said: "I consider the whole move (butter- price-fi.xing) stupid and dam- nable. As matters stand, farm- ers are asked to shoulder an un- fair share of the war burden . . . I strongly advise farmers not to accept the situation without vig- orous pi-otest." t^nd tbe Red Cross all share. Ur. .S«! adt eiplalued. "The work now bel:.g done," he added, "ia in the nature of tMiing thu machiue. lis present rapacity of 100 quarts a week can lje <: iib- led by addinii another c.i.i-.uei. Dr. C. 11. Best is in chaioo of tha work." Win, CONTINUE AFTKU WAR Tbe present output of tbe laa- chine, a piiwder which Is mi^eJ v.ith waiti' ;ind then used as a blood trausfnsion. Is being directly rf-riulsltioned by the department of national defence and e<'nt to de- stroyers, flying fields i.nd other liolnts where casualties m:iy t*© ex- pected, he said. The production of powdered blood win be continued in >'OlunJ» lifter the war . because it allows even the backwoods hospital to have its own supply for transfu- sions always ready for any emerg- tr'ncy, say authorities. Powder 100 Quarts Blood Every Week One hundred quarts of blood are being turned into powder for treat- ing war cases every week at the University of Toronto. This was announced by Dr. D. Y. Solandt of the physiological hygiene depart- ment In a paper read at the Christ- mas meeting of the laboratory sec- tion of the Canadian Public Health association. COMBS FROM 800 DONORS - The blood, which comes from 800 donors supplied by the Canadian Red Cross, la evaporated into powder form in a |6,000 vacuum machine in which the university, the department of national defence Synqi Yout jno$t VaJu£bi» Energy Food, t ROYAL BANK HAS SATISFACTORY YEAR Total AsseU $955,000,000 â-  â€" Current Loana m Canada In- creaaed $17,000,000 â€" Profits Moderately Lower After Largely Increased Taxes. The Annual Balance Sheet and Profit and Lobs Account of The Royal Bank of Canada for the year ending November 30, 1940, was issued to its shareholders. In line with the experience of Canadian banks, assets show a moderate decrease as compared with the previous year. Canadian Depoalta Up Total deposits amount to $852,- 000,000, as compared with $911,- 000,000 In the previous year. The difference is accounted for mainly by a reduction of $20,000,000 of balances due to the Dominion Gov- ernment and a decrease of $48,000,- 000 In deposits outside Canada. Canadian public deposits actually Increased $20,000,000. Currents Loana Increased The greatly increased volume of business now being transacted throughout Canada Is reflected In an Increase in commercial loans of $17,000,000. Loans outside Canada have been reduced $10,000,000. Strong Liquid Poaitlon Cash balances show practically no change as compared with the previous year. Bank balances and investments show moderate reduc- tions but total immediately realiz- able assets amount to $Dt>6,000,000 which represents 66.5% of tbe to- tal liabilities to tbe public. Profit and Loss Account A feature of tbe Profit and Loss Account ia an increase In taxes aa compared with the previous year of approximately $620,000 after providing for which and making appropriations to Contingency Re- serve,- out of which provision for all bad and doubtful debts has been made, net prollts amount to $3,526,894. This Is a moderate de- crease aa compared with the pre- vious year. $2,800,000 was distri- buted in dividends. Contributions to the Pension Fimd Society were increased to $325,000, nnd an amount of $300,000 was wiitten off Bank Premises Account, ns com- pared with $250,000 in tho preced- ing year. The balance of i'roflt and Loss Account carried forward amounted to $3,198,146, an iu- creaae of $101,894. The Annual General Meeting of tbe shareholders will be Ueld at the Head Office of the bank at eleven a.m. on January 9, 1941. Profit and Loss Account flgtirea compare with the previous year as follows: YKAR ENDEU XOlKMHKIt :tO«h l»Vt IMS * * ProfiUs •3.526,R94 '3.784,842 Divi(lend:s 2,80«,0ff0 2.800,000 Pension Fund .. 32e,0$0 SOO.OOO Bank Fremisea 300,000 2SO.000 Prev. Balance -.101,894 ST4.84I S,096,2B2 2,721,410 Carried forward . 3,198,146 3,P95,25J • After providing: for Doratnlon and Provincial Government tax- es and after making apprc^rla- tlons to Contingency Reserves out of which Reserves provision for all Bad and Doubtful Debts has been made. Balance She«t figures for the year ending November 30th com- pare as follows: LIABILITIES 1S40 ~ « Capital Stock 36.000.000 Iteserve Fund 20,000.090 r. & L. Balaiive S,138.14« Dividends . . . 729,000 Dom. Gov. Dep. 20.'4«2,767 rrov. Gov. Dep. 16.0fi5.a7B Deposits-Can. 609.203,083 ])epo8lts-For'n 195.403,466 Due to banks 13.2«3.{07 Notes In Clrc. 25.103.361 l>>!tters of Cred. 18,003.678 Other Uabs. 1.137,954 USD 35.000.000 20.000.000 3.0^8,362 716.674 40.167,411 8,693.004 689.048.357 248.348.966 30.263.472 26,028,238 17,642.135 706.834 965.570,326 1,014,708.348 ASSETS 1M4 S Notes and dep. Bank of Can. 82,086,683 Ottipr cash and Hank Bal. 124,5li4,70t DoRi. & Prov. <;ovt Sees. 311,833,109 Municipal and Other Sees. 48.891,737 Call I.,oan3 ,.. 17.638,183 Loan.s Canada 231.234,467 LoHiia to Prov. r.ovt 999,795 t.«iH!i.s to cities, rowns. mun. & school dis- tlot.i 18.374,597 l*>iinH Foreign 79.377,396 Hxnk Preni, & Real Estate 17,373.131 Irfttbrs of Cred. 18.008.878 Othuva Assets 5,453,835 lB.<t9 • 77.503,203 166.980,347 315.435,430 72.232.408 25.161,148 215.321.154 1,573.775 20.393.898 89.275,905 17.652.4.15 17.64^.t35 5,0U.485 953,670,326 1.014. T0S.S4S REG'LAR FELLERS â€" Sweet and Low By GENE BYRNES /^ DlON\9TUI}r AN'T arrcMA -rn WILL CALL Ol^ ME / TODAY/ VMA MA'AM/ XDONNO'} IDAHO (9 COfWECT?> BUT YDU SHOULD ' ftPEAK LOUDER, PINMEAD. r COULD HARDLY HjgAR yoof ^ ^v 'Mi^-^'it^. • « K' »t*m (O