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.K %. <f I Annual Meeting of Shareholders The Royal Bank of Canada Sydney G. Dobson, President, declares private enterprise the very basis of Canada's progress and freedom â€" Right to take risks and reap rewards the major motivating force in country's development â€" '"Socialism and communism are not systems of freedom, but of rationed de- mocracy, in which liberty is doled out like social security benefits." James Muir, Vice-President and General Manager, reports new high records in field of Canadian Banking â€" Royal Bank assets exceed $2,222,000,000 â€" Deposits reach new Canadian record of $2.067,488,000â€" Profits moderately higherâ€" $4,000,000 added to Reserve Fund. The threat to personal freedom, inherent in the Socialist and Com- munist philosophies, and the high promise of Canada's future were stressed at the Annual Meeting of the Shareholders of The Royal Bank of Canada. "On the ';vidence before the world today, capit.'xUsin works" said Sydney G. Dobson President "It works so well that the lowest paid workers in these North American democracies are ^ better fed, better housed, and better supplied with the comforts of life than are the great mass of the population of collectivist countries And they enjoy freedom.' "Our successful development of natural resources confirms our be- lief in private enterprise as the best motivating force in an economic systeaj. All the natural resources imaginable are js less until they are brought out where they can be turned into serviceable goods, and the primary seeker, the most suc- cessful finder, and the greatest manufacturer nas been private enterprise. "Under this system people .hink hard and work hard because there are reasonable rewards. The need of incentives is recognized in every country where men are free to choose whether they shall work or not work, and how'hard they shall work. "In all collectivist economies â€" Communistic or Socialistic â€" the idea prevails that dictators or bur- eaucrats can arrange the lives of people better than people can do it for themselves. Capitalism, on the other hand, believes that individuals should be free to express their abil- ities and thereby bring about a bet- ter standard of living and a better social order. "Our system hinges on initiative, the courage to invest capital, the right to take a reasonable profit from such enterprises as are suc- cessful and the obligation to stand such losses as rnay be incurred in enterprises which fail THREAT TO FREEDOM "Socialism and Communism do not seek to make the best of people's minds and enterprise. On the contrary, their process is to level all people by dragging down those who might have superior at- tainments. They need a strong cen- tralized government with conti jl over all sections of the economy. They are not svstems of freedom, but of rationed democracy, in which liberty is doled out like social secur- ity benefits. Incentives are lost, and individual initiative is smothered. Standards of work and product e- main unimproved because jobs are assured without regard for effi- cfency or performance. The ambi- tion of men declines to doing just as muc' as has to be done and no more. _ Progress is sacrificed to a worship of averages â€" and they are averages somehcw arrived at so as to be well within the reach of the least progressive. Promotion on merit is abandoned in favour of pro- motion in turn. Skilled workers re- ceive very little more than unskilled workers. It is only natural that such a state of affairs should drive the best brains out of a country. "I believe in equality, so long as it is equality of opportunity in edu- cation, careers and public life. Socialism is a force .which holds back, while enterprise is a force \diich propels us forward, and gives men and women a chance to display tlieir talen* and their worth." FOREIGN TRADE While Canada's export figures had shown satisfactory gains during tlie past few months. Mr. Dobson warned that, "there is nothing in â-  our foreign trade picture '.oday about whicli wo can afford to be complacent. "Our present peak of business is being maintained to a large extent by artificial respiration in the form of credits from Canada and the United States. To realize our posi- tion we need only imagine what would be the state of our commerce â€" and therefore of our standard of living â€" if the Economic Recovery Programnie and our own loans to Mirope were suddenly cut off. "It is true that we can examine our rising export business oi the past few months with certain satis- faction. Last October saw us strike a new higli record in domestic ex- ports, both in total and in shipments ti the United States. Our total in the first 11 months of 1948 was $2S0 million higher than in the corres- ponding period of 1947." Turning to domestic affairs, Mr. Dobson noted that while the pres- sure of demand has tended to oush prices steadily higher, there has been a levelfing off in the rate of increase. PRICES "It is with regard to prices," he said, "that the manufacturer and the business man have their greatest worries. Ko matter how they bal- ance increased labour costs with technical advance, and other in- creased costs with prevention of waste, they are driven, in spite of all their ingenuity, to raise prices t' their customers. "It seems to me that those who work for wages are i't-advised when they rush into demands which are planned to give them an immediate a vantage through increased wages, while losing sight of the fact that there is an important long-term as- pect to be considered. How much money a worker makes is far less significant than how much he can buy, and if he is to buy .inything at all his employer must be able to stay in competition with manufac- turers in the rest of the world." ELECTRIC POWER The importance of Canada's liy- dro-elecric power development to the national economy was empha- sized by Mr. Dobson. Wide distri- bution of power and its healthy t'.velopment has been, he said, vital factors in promoting Canada's in- dustrial progress and maintaining a high standard of living. "Each in- stalled hydraulic horse-power. if operated continuously throughout tl e year, would be the equivalent of the power obtained from 4 tons of coal. On this basis, the present hsydraulic installation in Canada might be said to represent the an- nual use of about 44 million tons of coal. "There are still large reserves available for development. A gov- ernment tabulation shows 40 million horse-power available, and a httle less than eleven million developed by turbine installation." Discovery of additional oil in Al- berta and Saskatchewan was a farorable development to which Mr. Dobson made special reference. "It has become evident," said Mr. Dob- son, "that Western Canada, and particularly .\lberta. has become one of the brightest prospects for our future supply. It is forecast that by 1^50 the oil requirements of our Prairies will be satisfied out of home production and there may )e a surplus available for other mar- kets. This is important because every barrel of oil produced and consumed in Canada conserves from three to five dollars of United States dollar exchange." CONCLUSION "I believe that more attention needs to be paid to the education of our people in the responsibilities as well as the advantages of democra- tic citizenship. Too much stress is being placed, tliese days, on hum..n rights and not enough on human obligations. If it is reasonable for a man to expect to be taken care of when disaster threatens or strikes him, he should be educated to know- that he needs to contribute his share to the welfare of the nation. 1 deplore the increasing trend among a portion of the younger generation today to think too much of security and not enough about going out and really accomplishing something tor themselves. "We live in a world where we should not expect to receive some- thing for nothing. This is an old, old law recognized in economics, and no discovery by any political party or reform faction has ever found a permanent substitute. Queer creeds "jased on ease and leisure may rise a..d flourish for a time, but they always run into difficulty ' hich can he overcome only by work." ', "an expansion of connections and clients as well as the fulfilment of the additional needs of old custom- ers." Mr. Muir also noted a further substantial increase in the number of depositing clients and total de- posits of $2,067,488,000, an increase of $133,303,000 over the previous year, and a new high water mark ii the history of the bank. Earn- ings had been moderately higher, and in additioi. to providing for the customery deductions including taxes of $3,150,000 and increased dividends for Shareholders, lad en- abled the bank to transfer $4,000,- 000 to the Reserve Fund which now totalled $44,0000,000. This left a carry forward in Profit and Loss Ac- count of $1,532,000. AID TO TRADE Ihe important role 'ilayed by the Royal Bank's extensive system of foreign branches^in furthering Can- ada's trade was stressed by Mr. Muir. "We have had a half-cen- tury's experience in this regard," he said. "L-ur oldest branch outside of Canada and Newfoundland, and still in operation, is that in Havana, Cuba, opened fifty years ago this spring. Apart from those in New- foundland, we have at present o2 GENERAL MANAGER'S ADDRESS Mr. Tames -Muir, \'ice-Frcsident and General Maii.iger. reviewed the bank's 1948 .Annual Report and noted that new high water marks in the bank's progress had been es- tablished during 1948. Assets had topped $2,222,000,000, a point never before reached. The bank's liquid assets equalled 74% of all liabilities to the public. Commercial loans in Canatla had also increased denoting branches outside Canada, and, in addition to this direct representation which covers New York, London, Paris and most South .-Vmcrican countries as well as the Caribbean area, we have unusually extensive correspondent relations with banks throughout the world. Your bank is in a preferred, if not unique posi- tion to facilitate, as it has for many years facilitated, Canada's foreign trade activites. NEED FOR ENTERPRISE "Whatever the outkok for Cana- dian business iu the short run our long-run position siiould be secure. For our economic fortunes as a nation depend, not on disturbing short run ups and downs, but on our tremendous wealth iu natural resources. Of course, natural re- sources are of little use unless thev are developed. .-\nd I agr?e I eartily, therefore, with what the President has just said about the need for ambition and enterprise. "We Canadians might ai^praise ourselves and our possibilities a little higher than we are inclined to do. No country on earth has a future that promises to surpass or even to equal ours. Whenever we forget that fact, some Canadian voice must speak out. remindini j» both of the greatness of our resouc- ces and the responsibility that rests upon u to take a mature and an ardent view of Canada's capacity for economic development. Then, sur?Iy, a breed of courageous, clear- sighted and Canada-conscious men will arise who will become acutely seized of the fact that we are in duty bound to develop these .e- sources and endowments and deal with them in our day for thv.- great- er good of generation; of Canadians yet to conio. PRAISE FOR STAFF "It is no secret that public opinion of the bank is formed by and large through dealings with the staff, and so the Royal Bank's prestige is largely dependent on . personnel â€" for it is through them that the bank is known to the world for what it isâ€" good, bad, or indifferent In all modesty, I feel I can proper- ly say that the bank in held in the highest esteem, not only in Canada but in the many countries where we have btanches. "VVe have a large organization, 10,567 men and women, and if there is sometimes a tendency for mem- bers of the staff to fee'l that they are but verv; small cogs in a vast machine, I ask them to dismi.ss the fought, for o\er single job in the bank is important â€" every single job inust be we done, that our staff, both "men and women, are discharging these important duties with untiring efficiency and in good spirit is properly exemplified in the fact that the success, embodied in this year's Annual Report is in no small measure due to their efforts. The Executive are fully aware of this â€" and acknowledge it gratefully. "We have reason to be proud of our staff, and on their behalf I can tell the shareholders, the public, and our clients that they cm all rely on the knowledge that the members of the staff will endeavour to continue t serve them wellâ€" \wth efficiency â€" with accuracy -and with friend- liness." SALLY'S SALLIES Silly Solomon! Borrj". vision .'Ir. but t'- i.i tlio tl .. re's no t»le '.'mk vooni." The prim, bespectacled Sunday school teacher brought her young class to order. "Now, you have juit heard me tell you the itory of wise King So- lomon," she laid. ".\ad of the two woman who both claimed Ac baby, and how King 'Solomon ordereit' the baby cut in t,«o, and half fAr^{ to each supposed mother: wMr««? upon one of the women cried \9 thi' king to give the child to the •th^jf woman, thus proving that tke hei<« self was the real mother." The teacher paused and glanced aroimci her class. "Now, I am going to aik one of you in the eUii what /«« wouAf have done if you had been in King Solomon's place. Alright, Willie." But to her horror and constern- ation William, in all the bright in- nocence of seven years, spoke up thus: "I would have said: 'Why uiuit you ladies quarrel over a mere babjr?â€" there's plenty more where this one came from'." Which? .\ track supervisor received ti|f following memo from his foreman: "I'm sending in accident report about Casey's foot, which he strusk with spike maul. .Vow, under 'Re- marks,' do you want mine o- Cwey's?" Blinded In War, Now a Promising Sculptor Artliur Schneider was blinded by a bullet during the war. Une night, to while away the time, he picked up a piece of plastelliti, and by morning the blind veteran had fashioned a crude elephant â€"also a hobby that has since developed into a career. Now, at 2i5, he's recognized as one of the most promising of sculptors. Above he shows some of the remarkably lifelike animals he ha$ created, while below he works on a broiize bust of his httle son. ContGcts by Night By Art Taylor "Again tonight?" asked tCitty, trying to be light and casual and succeeding only in sounding strained and accusing. " 'Fraid I must," said Brace. He also tried to be casual but he sounded weary. And looked weary; too tigiitly drawn. Some burden of the spirit was beginning to break through his outer defenses, "t have to make contacts, vou know, h , andâ€" '• "I know." Indeed, she did know it. She had listened to it a. regular intervals for the past six weeks. It had sounded plausible at first, but contacts that had to be made every night for jc weeks seemed slightly incredible, race didn't argue. He just said, '"Sorry, hon. I'm hoping it wont last much longer. I know it's tough on you, sitting here by yourself night after niglit." "Think nothing "bf it," Kitty said brightly. "I adore being a business widow." Brace moved over to where she sat, trying to decide whether he should tell her now or let the thing drift He knew it cotrldn't go on like this much longer, but again he tem- porized and remained silent, merely squeezing her arm. But tonight. Kitty was definitely off the beam and there was no re- sponse to the private signal. Prob- ably Brace had expected none be- cause he picked up his hat and left without another word. Kitty knew Brace was deceiving her but she didn't know why or how. ^ From then on, life for Kitty be- ca.ne conjecture, trust, distrust and despair. Maybe it was the war. It did strange things to men, everyone said. But Brace was the same old Brace when he came back. The first six months were practically idyllic and Brace and Bill had been so enthusiastic about this new busi- ness they had hatched out in spare moments out in the Pacific. And then the flood of itrikes had inun- d«Hd the country and jwampe4 some businesses and washed othef* into stagnant backwaters. That was hen Brace became worried sind restless and began stepping out. Each night it was harder to take. This night, 8"h« knew, was going to be very bad. The piiorid rang. Tliaf booming voice on the other end could belong to only one person 'Uncle Edward!" she squeaicd in dc light, 'Wn>er» are youi' " "At the leading hostelry. I just had to come see if you were still in e:;iitence. I'll give you and the boy friend jus: fifteen minutes to don the glad rags and we'll paint this burg a nice Vermillion." Kitty said, 'The boy friend is out, bu give me ten minutes and I'll help you give it a double coat.' She took him to the Chateau in the Pines. It was new and swanky and thirty miles way. It was too ex- pensive for Brace and Bill so there was no danger of running into them. She was too proud to try to follow them, whatever they were up to. \ai then she saw Brace and BilL Very handsome and immaculate they were in their tails, too. The captain beckoned to Brace. Bill tried to step in front of him and take the call but Brace pulled him ba-^k, and with steady pace ap- proached the table. Kitty's heart turned over. Why the two crazy youngsters. Work- ir_ night and day to keep their pre- ' us business from going on the rocks and too proud to let her know how they were doing it. Without a sign of recognition, Brace spread the ornate menus in front of them. "The caviar is an- usually good to-night, sir," he said; "also the baked pheasant" "How about it Kitten?" boomed Cncle Edward. "It doesn't make a bit of differ- ence. Uncle Edward," caroled Kitty. "If this handsome young waiter should bring me fricassed sawdust, it would taste like am- rosia and nectar." And slipping her hand up under the napkin draped so properly ov«r the handsome young waiter's .trm, she squeezed the arm â€" hard. Act That Threaten* All Our Industry Decision of the Privy Council rul- ing the Saskatchewan Trade Union Act valid is of immense significance to independent labor and employers. This is not some local bill designed to get control of industry in a pro- vince where industry is of reiaiively minor importance. It is a pattern to be followed in all Canada if the CCF ever succeeds in gaining power of Ottawa. This particular legislation, like several other key bills put through Regina since l''-M, is actually the work of the CCF national higli com- mand. Saskatchewan, which has the only CCF government in the Do- minion, merely happens to be the laboratory for CCF key experi- ments. Because it is largjly rural it has proved a most convenient laboratory for CCF industrial ex- periments. By a little judicious handling, and by exempting agri- cultural employment, the Douglas government in that province has been able to put througli radical legislation with little opposition. The fact that this bill has been upheld by the Privy Council !ias nothing whatever to do with the quality of the legislation, of whether \i is good or bad. In declaring t'lis bill valid the Privy Council merely rules that it is constitutionaL that " labor m.atters of t.his kind come within the jurisdiction of the pro- vince. The blunt truth is that this bill is bad, a direct threat to the independence of labor and manage- ment throughout all Canada, says The Finacial Post Under this discriminatory ac: all control in labor matters is vested in a government-appointed Labor Board with unhmited dictatorial powers. Firms which disreg-ird or disobey the rulings of this board can and actually have been seized by the government Orders of the board are enforceable without the right of appeal. Labor unions are virtually placed beyond the reacii of the law and need have only 25% representation in any plant to reacli that privileged position. Employers can be fined up to $5,000 and im- prisoned for a year. They must re- instate any employee discharged for w-hat the politically appointed labor board may call union activir>-. Legislation of that kind, if allow- ed to spread, could deliver all Can- adian industry, absolutely and final- ly, into the hands of a gover:iment board appointed by the CCF party. It would be a death warraii: for private enterprise from the organ- grinder to the largest corporation. WILUE WEATHER Saysi COLD I wonder i£ more women act haughty in tha winter or in ih« summer. Probably in th« winter, which would only ba naturaL T.hera are so many mor« cold shoul- ders during th» winter. DOES YOUR BACKACHE? Sitting in a draft â€" working in a damp place â€" wet feet â€" there are dozens M things which may cause a backachsl But there's one way thousands of Canadians have found to help reliev» this condition â€" Dr. Chase's Kidney- Liver Pills. This effective remedy tone* up both the kidneys and the liver â€" and brings welcome relief from pains in the small of the back caused bv "cold" in the kidneys. So insist on thUi reliable remedy â€" proven by over half- a<entury-'s useâ€" Dr. Chase's Kidney- Liver Pills. At all drug counters. t> ^.Qoi COLD Check it with tCONOMICAL 5IZC 65c \7-H â-º Just Inhale the soocll. ing, healini fumst, far quick relief. 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