1939: Canada, Dominion Of

The year 1939 in Canada was dominated by two events characterized by diametrically opposite emotions — the enthusiasm occasioned by the visit of King George VI and Queen Elizabeth and the shadow cast by the outbreak of war in Europe.

NATIONAL AFFAIRS

The War.

Overshadowing all else in Canada in 1939 was the decision of the Dominion Government to stand with the United Kingdom in the war against Germany. This decision was reached on Sept. 10, and was made without opposition in Parliament. It was preceded by an appeal sent on Aug. 26, to Chancellor Hitler and President Moscicki of Poland asking for a peaceful settlement of the Polish dispute. The formal declaration of war was made by Parliament rather than by the Government, because of a desire to show that Canada's action was the decision of an independent nation associated with the British Commonwealth rather than a step dictated by London. It was the first declaration of war ever made by the Canadian Parliament.

For several years prior to the outbreak of war, there had been a growing movement to keep Canada out of a European war. The movement was naturally strongest in French Canada where there was also opposition to the war in 1914. But it was strong also in the Prairie provinces, where sentiment not unlike the isolationism of the American Middle West existed. Opposition to war was also to be found among the members of the Cooperative Commonwealth Federation, Canada's opposition party of the left. But when the decision was reached, opposition was confined almost entirely to the Duplessis Union Nationale party which controlled Quebec. Elsewhere the war, while far from popular, was accepted as a disagreeable task which had to be carried out. It brought greater political unity than the Dominion has known for many years.

Although the Dominion had not by the end of 1939 sent a large expeditionary force to France, as it did in 1914, its participation in the war has been, if anything, more thoroughgoing than twenty-five years ago. This is largely because of the fact that the country is much more industrialized than was the case in 1914. As a consequence, its chief contribution was in the economic field. Its industries were almost completely mobilized for war purposes. Practically all of its nonferrous metal production was contracted for by the British Government. The British Supply Board placed large orders for aircraft, subchasers, shells, and gun barrels. It is estimated that these orders may rise as high as $3,000,000,000 in a long war. Coal and coke production was licensed. Foreign exchange has been under drastic control since the early days of the war. German concerns were seized and liquidated.

At the end of the year some 60,000 men were in training and on Dec. 18 the vanguard of the Canadian army arrived in Great Britain to join the British forces. But Canada's chief military contribution has been the creation of facilities to serve as the advanced training center for military airmen from all parts of the Empire. Plans call for the training of as many as 25,000 airmen a year. It is planned to bring the Canadian air force alone to 1,375 officers and 13,000 men. Problems regarding the apportionment of the cost of such a vast enterprise, of which Canada's share may run as high as $700,000,000, kept it from materializing during 1939.

With the declaration of war the drastic War Measures Act of 1914 automatically came into effect. This measure is in some ways even more restrictive than Great Britain's emergency regulations. Under the law obstruction of war activities is a criminal offense. Citizens and suspected agents of Germany were rounded up and put in concentration camps. Peace propaganda of all types is illegal. Publications are subject to censorship, and certain American and foreign periodicals have been banned.

Since opposition to the war centered in Quebec, the Quebec provincial elections of October 25, which were fought on the conscription issue, took on national significance. Maurice Duplessis, the Quebec Premier, called the election a year in advance of schedule because he believed he had the backing of the electorate in opposing the war. His campaign was waged primarily on the manufactured issue of conscription in the hope of capitalizing to the utmost on the province's anti-Dominion sentiment. The Liberal party, led by Adelard Godbout, rivalled Duplessis's Union Nationale in opposing conscription. But its three representatives from Quebec in the Dominion Cabinet — Ernest Lapointe, P. J. A. Cardin, and C. G. Power — argued that if the issue of conscription came up the Liberals would have more weight in Ottawa than would Duplessis, because of the latter's refusal to cooperate with the Dominion in other matters. Since the three Quebec ministers staked their seats in the Dominion Cabinet on victory in the election, defeat might have precipitated a crisis at Ottawa. But somewhat to the surprise of observers, the Liberals won a decisive victory, capturing 68 out of 86 seats in the legislature. The results were almost universally interpreted as a proof of Quebec's loyalty and vindication of Parliament's declaration of war. The new Liberal ministry, headed by Adelard Godbout, assumed office on November 8, thus ending, temporarily at least, the constant friction between Quebec and Ottawa over constitutional issues. The Liberal victory in New Brunswick on November 21, returning Premier A. A. Dysart to office for another five years, was further evidence of the political unity of the country under Liberal rule.

Visit of the King and Queen.

Contrasting with the sobriety with which Canada entered the world conflict was the carnival spirit exhibited three months earlier as the Dominion greeted Their Majesties King George VI and Queen Elizabeth. It was the first time that a British monarch had set foot on Canadian soil during his reign. The King and Queen arrived at Quebec on the morning of May 17, on the S. S. Empress of Australia. Their ship had been delayed two days by fog and bad weather. The entire city and thousands of persons from the surrounding country turned out to greet them amidst scenes of unparalleled enthusiasm. In the evening a state dinner was held, attended by three hundred members of the Quebec Government, Legislative Council, and Legislative Assembly, and high officers of the Quebec garrison. On the following morning, May 18, the royal couple departed for Montreal and Ottawa, being welcomed at Montreal that afternoon.

At Ottawa on May 19, the King and Queen sat before a formal session of Parliament where the King gave royal assent to the bills passed at the 1939 session of Parliament. Before this ceremony, which was the high light of the royal visit, the King received the credentials of Daniel C. Roper, former Secretary of Commerce of the United States, the new minister to Canada. After an additional day at Ottawa, the royal visitors journeyed to Toronto where, on May 22, they received a tumultuous welcome. From Toronto the monarchs travelled westward, across Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia to Vancouver, where they arrived on May 30. Tremendous crowds turned out at each stop. As the royal couple moved westward the ceremonies became simpler and the atmosphere of the reception more democratic. From Vancouver, the King and Queen went to Victoria where they rested for a day before commencing their return journey.

The return was made by a more northerly route, visiting Edmonton, Banff, and several other towns on their way to Niagara Falls, Ontario, where they arrived on June 7. At Niagara Falls, the royal visitors crossed into the United States and went directly to Washington. At the American capital they were guests of President and Mrs. Roosevelt at the White House. After a brief trip to the New York World's Fair and a week-end at President Roosevelt's Hyde Park home, the King and Queen crossed back into Quebec province on June 12. Skirting Montreal and Quebec, they visited smaller towns in Quebec and journeyed on to New Brunswick, Prince Edward Island, and Nova Scotia. Before sailing from Halifax on June 15, the royal pair travelled a total of 8,700 miles by rail in Canada and the United States, and rode an additional 1,200 miles in automobiles. It is estimated that at least 12,500,000 people in the two countries saw the King and Queen at some point on their route.

The sovereigns were popular everywhere, and there can be no question but that the visit did much to dramatize Canada's position in the British Commonwealth of Nations. If the visit was planned, as has been widely hinted, as a means of assuring Canadian loyalty in the troubled days that lay ahead, it was undoubtedly successful. While in the light of subsequent events there seems no doubt that in any case the Dominion would have supported Britain in its war with Germany, the emotional impact of the visit of the King and Queen undoubtedly served to lessen hostility to that step. In French Canada particularly, the presence of the sovereigns did much to create a feeling of Empire solidarity in a situation where the ties were being subjected to severe strain. It is frequently suggested that victory of the Quebec Liberals in October on a platform of loyalty to the Dominion, and the rejection of the Duplessis brand of Fascism, was due, in part at least, to the deep impression left by Their Majesties.

Parliament.

The fourth session of the Eighteenth Parliament of Canada was an unusually active and fruitful one. Agricultural aid received the greatest attention. Among the three basic pieces of legislation enacted for assistance to the farmers was a bill providing compensation to growers unable to support themselves because of crop failure. Another law guaranteed a minimum price of 70 cents a bushel to wheat growers and provided a special subsidy where the yield is considered insufficient. In the eastern provinces, provision was made for a dollar-for-dollar grant for cheese makers to aid them in plant improvement. Industry was aided by granting a 10 per cent income tax exemption on capital expenditures for plant expansion. After a bitter struggle in committee, the Central Mortgage Bank bill was finally adopted, establishing machinery for a general writing down of mortgage debt. Other legislation included a bill to establish a Penitentiary Commission, provision for the creation of a Defense Purchasing Board, and the allotment of a fund for the training of unemployed young Canadians. A bill to establish social credit was rejected by the House by a vote of 127 to 13.

Parliament also adopted the greatest armament program ever undertaken by Canada in peace time. The defense budget called for the expenditure of more than $80,000,000 during the year. Provision was made for increasing the air force to 2,445 pilots, of which 2,070 were to be listed on the permanent staff of the Royal Canadian Air Force. The navy was increased by 384, bringing the total to 1,965 and an Atlantic fishermen's reserve was set up comprised of forty skippers and a hundred and sixty seamen — matching the unit set up on the Pacific coast the previous year.

The outbreak of war between Great Britain and Germany led to the summoning of a special session of Parliament which met on Oct, 7 and adjourned on Nov. 13. In addition to declaring war on Germany, the special session conferred special powers on the Cabinet and adopted a supplementary war budget carrying an extra $100,000,000 for defense. Drastic new taxes were also imposed, including an increase of 20 per cent in the income surtax, a cigarette tax of 2½ cents a package, a liquor levy, and taxes on a number of luxury items.

Government Changes.

In September, after the Government had reached its decision to support Britain, Prime Minister Mackenzie King rushed through a general reorganization of his Cabinet. Norman McLeod Rodgers was shifted from the Ministry of Labor to become Minister of Defense. Ian McKenzie, former Minister of Defense, became Minister of Pensions and Health. Norman McLarty, the Postmaster General, was named Minister of Labor, and C. G. Powers was moved from the Ministry of Pensions and Health to become Postmaster General. A few days earlier J. L. Ralston had been named Minister of Finance. Mr. T. A. Crerar, Minister of Mines and Resources, was designated to represent Canada at the November discussions of Empire Cabinet Ministers at London.

Canadian-United States Relations.

Immediately after Canada's entry into the war, President Roosevelt made it clear that the Dominion's action in no way altered his pledge that the United States would be quick to prevent any attempt at domination of its soil by a non-British foreign power. The original statement, made at Queens University, Kingston, Ontario, Aug. 18, 1938, had been very favorably received in both Canada and Great Britain, and the reiteration of the pledge was equally well received. It did much to offset the unfavorable impression made by Col. Charles A. Lindbergh's radio address on Oct. 13, 1939, in which Mr. Lindbergh argued that Canada was endangering the United States by its entrance into the European war. Early in 1940 James H. R. Cromwell was named U. S. minister to Canada.

Political Parties.

General belief in the early part of the year that an election would be called in the fall, probably in October, led to an exceptional amount of political activity. This activity was largely suspended after the declaration of war in the assurance that the election would not be called before the summer of 1940. There was some discussion of the possibility of the Government seeking special legislation in London permitting the election to be put off for another year, but such a move seemed unlikely.

The Conservative Party, under the leadership of Dr. Robert Manion, was exceptionally vigorous in its attack on government policies during the pre-war months. Its criticisms were directed chiefly against the Government's failure to deal with unemployment and its general 'stand-pat' attitude which is alleged to have contributed to sectionalism and general unrest. Dr. Manion urged in particular the establishment of a Minister of Youth Welfare with a comprehensive program for solving the problems of youth.

Manion's leadership was severely shaken, however, by the splitting away of a right-wing section of the party under the leadership of Mr. Meighen, and the launching of a left-wing New Democracy party sponsored by William D. Herridge, a former Conservative who was the first Minister to Washington. The program of the New Democracy party is closely modelled after that of the American New Deal, which Mr. Herridge had long admired. He carried on a vigorous campaign in several of the western provinces, and was successful in obtaining the support of part of the Social Credit party. He had less success with the Cooperative Commonwealth Federation, despite several efforts to obtain its support. Returning from a visit to England in November, Mr. Herridge provoked a fresh controversy by calling for an immediate conference of British Commonwealth nations to 'state our peace aims and take all measures to attain them.' Mr. Herridge was also first to declare for conscription.

Although the Liberal party was less active politically, the Liberal victory in Quebec is believed to augur an overwhelming victory for the King government if the elections are held in 1940. Except for Alberta, where the Social Credit government is still in power, the Liberals hold all of the provincial governments and have an overwhelming majority in Parliament.

The Right Hon. R. B. Bennett, Dominion Prime Minister between 1930 and 1935, surrendered his seat in Commons and retired to private life early in 1939. He sailed for England on January 28. Mr. Bennett had remained leader of the Opposition until Dr. Manion's election to the post in 1938.

The term of Chief Justice Sir Lyman P. Duff, who was seventy-five years of age at his last birthday, was extended by special legislation until Jan. 7, 1943. Special legislation was necessary because the Chief Justice had passed the age of compulsory retirement.

Disallowances.

On March 27, Ernest Lapointe, Minister of Justice, disallowed a financial act of the Alberta Legislature. It was the sixth Alberta act to be disallowed by Mr. Lapointe in less than two years, and made a total of 107 disallowances in Canada's history. Less than three years ago Mr. Lapointe himself had declared in the House of Commons that the disallowance was virtually obsolete. Although not disallowed by Mr. Lapointe, British Columbia's price-fixing legislation was ruled unconstitutional by the Supreme Court in January.

Fascism and Civil Liberties.

The defeat of the Duplessis Government in Quebec in October ended the semi-fascist rule which had been established in that province. Although the notorious Padlock Law remained on the statute books at the end of the year, it has not been invoked by the Liberal Cabinet. Defeat of Duplessis ended also the threat that the three provinces in which anti-democratic tendencies were the strongest — Quebec under Duplessis, Ontario under Hepburn, and Alberta under Aberhardt — might form a coalition in defiance of the Dominion Government. Rumors of possible secession were spread at the time of the Quebec elections. Although opposition to Ottawa remains strong in all three provinces, it has greatly diminished in the past year.

As might be expected, the war has brought a tightening of restrictions against minority groups. The Union Nationale complained that during the Quebec election it was barred from use of the radio for election purposes. This was doubtless because of the nature of the Duplessis campaign, involving as it did violent attacks on the Government's war policies. Restrictions, however, have not been confined to Quebec. Three men and a woman who distributed pamphlets urging an early peace were arrested in Toronto on Nov. 13 and charged with violating the National Defense Act. The weekly Toronto Communist paper, The Clarion, and the French Communist paper, La Clarte, were banned on Nov. 21 by the Minister of Justice. In early December there were reports to the effect that the Dominion would take even more drastic action against the Communist Party or its leaders.

The War Measures Act was invoked by Premier Pattullo of British Columbia in warning Mrs. Dorothy Steeves, Cooperative Commonwealth Federation member of the legislature, against repetition of an attack on British war policy which she delivered before the British Columbia legislature early in November. Although members of the Dominion House of Commons enjoy immunity from restrictions on the freedom of speech, this immunity does not extend to members of provincial legislatures.

ECONOMIC AND FINANCIAL

Taken as a whole 1939 was an extraordinarily prosperous year for Canada. Crops were the best for many years, a fact of much greater relative importance in Canada than in an industrial country like the United States. Mining enjoyed another good year. Industry was in the process of considerable expansion as a result of the war. Foreign trade was maintained at a high level. Although the war brought a sharp inflationary increase in prices, this rise was quickly brought under control and there was general confidence at the year-end that an unhealthy war boom had been successfully averted.

Manufacturing.

After a slow start, industrial production passed last year's levels in April. By September industrial activity was 15 per cent above the previous year and was back to the 1929 level. Improvement continued throughout the fall as large British war orders were placed with Canadian factories. Although the repeal of the American embargo on war supplies made it unnecessary for Canada to develop as huge an airplane industry as was first contemplated, considerable expansion has already occurred. Total dividend payments for the first five months of 1939 were $76,470,357 as compared with $77,808,425 in the same period of the previous year.

Mining.

Production of nearly all of the basic minerals was at a new peak in 1939 according to preliminary reports. The Dominion Bureau of Statistics estimated Canada's gold production for the first seven months of the year at 2,932,510 ounces, or an average monthly output of 418,930 ounces, as compared with 2,639,755 ounces, or an average of 377,108 ounces monthly, for the corresponding period of 1938. In August and again in September gold production in Ontario, the chief producing center, broke all records in value. The total for September was $9,199,820 and for August $9,090,395. September's high record was due almost entirely to the premium arising out of the decline in the Canadian dollar as the output in ounces — 240,106 — was exceeded every month except February during the year. Quebec production in September was also close to the all-time high in value although not in quantity. Production for the first nine months of the year was 720,285 ounces valued at $25,487,868 as compared with 641,365 ounces valued at $22,447,775 in the same months of 1938. Scattered returns for October show new records for companies in both provinces. Output began to fall off, however, in Yukon and the Northwest territories as miners left their posts to enlist in the military service.

Canada's mineral production in 1939 was the highest on record. The estimated value of the total product was $470,179,000, an increase of 6 per cent over the $441,823,237 output for 1938, and an increase of 3 per cent over the previous record of $457,359,092 set in 1937. These records were due largely to increased prices resulting from war demands. New records were also set in 1939 in the dollar value of production of coal, copper, zinc, crude petroleum, antimony, cadmium, natural gas, gypsum, sulphur, and lime. All zinc beyond domestic needs and about 80 per cent of the copper were contracted for by the British Government.

Official figures for copper production for the entire year 1938, released Aug. 4, 1939, show a total output of 585,521,538 pounds, a new high. The 1937 output was 530,028,616 pounds. But owing to lower prices the 1938 output was worth 16 per cent less than that of 1937. For the first eight months of 1939, copper production, according to the Dominion Bureau of Statistics, was 400,712,000 as against 380,091,000 in the same period of 1938. Nickel production in August was 2½ per cent larger than in the previous year.

Potential war demand has aroused new interest in Canada's deposits of tungsten, molybdenum, beryllium and other alloy minerals. There has been no production of tungsten in Canada since the close of the last year, but exploratory work is under way at several known deposits. About 13½ tons of molybdenum, valued at $7,674, were shipped in 1937. No figures are available for 1938 or 1939, but expanded activity is reported. Scattered deposits of beryl have been located in the Points de Bois District, Southeastern Manitoba. Iron ore was produced on a commercial scale during 1939 for the first time in sixteen years.

Agriculture.

Canadian agriculture, the backbone of the Dominion's economy, enjoyed an exceptional year. The 1939 wheat crop was estimated by the Dominion Bureau of Statistics on Nov. 10 at 478,965,000 bushels. The crop was the fourth largest on record, and the best since 1928. The carryover for 1938's 350,000,000 bushel crop was 95,000,000 bushels, and domestic requirements are estimated at 128,000,000 bushels. This left an export surplus of approximately 446,000,000 bushels. The September estimate showed winter wheat totalling 22,418,000 and spring wheat 456,547,000 bushels. The wheat was of good quality.

Owing to the large carryover and relatively small exports during the early months of crop year, the visible supply of Canadian wheat reached an all-time high of 351,000,000 bushels on Nov. 3. Elevators and transit facilities were taxed to the utmost by the bumper crop. Rail shipments had to be suspended for a time in November until the congestion at the lakehead was relieved. British shipments, which were all but stopped for a few weeks after the outbreak of the war, were resumed early in November and soon began to cut into the surplus. Despite the bumper crop and the exceptionally large carryover, the price of wheat was high owing to the war. The Canadian Wheat Board fixed the price for its purchases of the 1939 crop at 70 cents a bushel for No. 1 wheat at Fort William. Little was purchased at this figure, however, for the market price rather consistently ranged above this figure. Dry conditions in both the United States and western Canada in the fall of 1939 helped keep the price high.

Other crops were good, though not as remarkable as wheat. The principal feed crops were practically unchanged in output from 1938 while rye and flaxseed crops were larger owing to increased acreage. The failure of other crops to match the huge wheat harvest is due to the fact that the exceptional wheat crop was obtained almost exclusively because of abundant rainfall in Saskatchewan and Alberta. These provinces grow little but wheat.

Foreign Trade.

Canadian foreign trade in 1939 ran well ahead of 1938, according to preliminary figures covering the first ten months. The improvement was noticeable before the outbreak of the war, and continued in September and October despite losses arising from the war. For the first ten months of the year, exports were valued at $726,741,865 as contrasted with $682,716,799 in the first ten months of 1938. Both export and import trade with the United States were 50 per cent higher in October 1939, than in the previous October, while that with Great Britain showed what was believed to be only a temporary decline. Resumption of wheat exports to Britain in November probably brought the Canadian-British trade virtually to normal.

Wartime Regulations.

From the very beginning of the war the Canadian Government imposed drastic restrictions on various phases of economic life. A strict system of exchange control was set up on Sept. 16 to conserve Canada's foreign exchange balances. A Foreign Exchange Control Board was organized with full authority over all foreign transactions. At first the regulations issued by the Board were fairly lenient. Non-resident holders of Canadian or foreign securities in the Dominion prior to Sept. 15 were permitted to export such securities upon satisfying the Board as to ownership. Canadians owning foreign securities outside of Canada were given full freedom to sell the securities and reinvest the proceeds. Residents holding foreign securities in Canada were permitted to apply for a license to export them so that they might be sold as specified above. Non-residents holding foreign-currency deposits in Canada were allowed to withdraw them up to $5,000. New investments by foreigners which advance 'new capital development of economic value' were also expected. These restrictions were tightened, however, on Nov. 23 by new regulations including a general prohibition of the export of capital without the approval of the Foreign Exchange Control Board. As a result of restrictions, the Canadian dollar fell almost immediately to a substantial discount against the American dollar and remained at about 13 per cent under the United States dollar.

On Sept. 26, the Canadian Government assumed control over all export of metals from the country. Licenses were required for the export of nickel, bauxite, aluminum, copper, zinc, asbestos, cobalt, ferro-silicon, ferro-manganese, cadmium, or scrap metals. Special arrangements were made to permit the export of aluminum to the United States, but preference was granted to the Allied countries in all such exports. These restrictions were designed not only to assure adequate supplies of vital metals to Canadian and Allied manufacturers, but also to prevent such metals from reaching the enemy. They were extended on November 10 to cover all dealings in coal and coke.

A step further was taken in the creation of a Wartime Prices and Trade Board which regulates prices in the wood, hides, leather, sugar, and coal industries. A temporary wool shortage was met by the purchase of a million pounds of New Zealand wool from the British Government, the taking over of Australian production, and the fixing of prices at 45 cents a pound. David C. Dick was appointed Canadian Wool Administrator to work with the Wartime Prices and Trade Board in meeting the emergency.

Canada also has a Ship Licensing Board, set up on Sept. 5, which controls all shipping of Canadian registry. In November the Government authorized the appointment of a transport controller with powers to direct all land and sea transportation of troops, naval forces, and supplies to empire countries. Selection of the transport controller was vested in the hands of C. D. Howe, Minister of Transport.

Government Finance.

Total customs duties, excise taxes, excise duties, and sundry tax collections of the National Revenue Department for the seven months of the fiscal year ending on Oct. 31, 1939, amounted to $172,447,500 as compared with $173,971,747 in the same period of 1938. Income tax collections were responsible for the loss, dropping from $120,442,115 to $111,507,102. Despite the levying of new war taxes, a deficit of $150,000,000 is anticipated for the fiscal year ending March 31, 1940. The total cost of the war was estimated at $315,000,000 for the first year by J. L. Ralston, Finance Minister. This is twice as much as was spent in the first twenty months of the First World War. Among the chief items of expense incurred thus far in this war are: $100,000,000 in credits to Great Britain; $25,000,000 for supplies or defense equipment purchases in Canada; $9,000,000 for special equipment bought from Great Britain; $10,000,000 for airplanes bought in the United States; and $25,000,000 for railroad equipment.

The first war loan of the Canadian Government was announced on October 12. It consisted of a $200,000,000 issue of two-year 2 per cent notes which were sold to the Canadian chartered banks at par. Part of the money thus raised was used for refunding, but about $80,000,000 in new money was used for general purposes by the Government.

Despite the improvement in economic conditions, the unemployment relief rolls were only slightly lower than in 1938, according to statistics made available by Labor Minister McLarty. In September, 541,500 persons throughout Canada were receiving direct unemployment relief, a decline of 32 per cent from the preceding month but only 2.2 per cent less than the number in September 1938. The small decrease is attributable to the fact that in Quebec direct relief has largely replaced provincial public works during 1939. In other provinces the decline is substantial.

Home-building loans rose by 50 per cent in the twelve months ending April 30, 1939. Loans issued under the provisions of the National Housing Act totaled $16,176,869 in the year as contrasted with loans of only $8,790,607 in the preceding twelve-month period. Total housing loans to April 30, 1939, numbered 8,452 and amounted to $32,000,000. The plan is similar to that in the United States from which it was originally borrowed.

The Bank of Canada listed its gold, coin, and bullion on Sept. 7 — just prior to Canada's entry into the war — at $221,572,000. Total assets amounted to $451,621,000, and total deposits were $250,207,000. The note circulation was $188,610,000.

The financial statement of the Canadian Bank of Commerce for Oct. 31 shows deposits at the record high point of the bank's history — $662,708,000. A year previously they had been $564,327,106. Total assets were $745,650,745 as compared with $665,233,291. Net profit was $2,938,105 against $2,211,757 for the eleven months ending Oct. 31, 1938.