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Canada's future, what she offers after the war; a symposium of official opinion online

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assets in such a way as to insure their being held for the
benefit of a man's descendants as long as is legally possible.
While transfer agencies, registrarships, bond trusteeships,
escrow trusteeships, etc., are all legitimate and profitable
business, the main branch of a growing and successful Cana-
dian company will probably be its family and estate business.
When a company has business connections with a family,
it considers it its duty to place at the disposal of that family
all the advice and assistance in its power. Children are pro-
perly cared for, and their education supervised, if necessary;
marriage settlements arranged in due course ; assistance given
in the most intimate family affairs, as well as in business
dealings throughout a lifetime, at the end of which the com-
pany is sometimes called upon to take charge of the funeral

It is the policy of some companies, and I consider it a very
proper one, to continue to carry on the affairs of a deceased
person for whom the company is acting as executor, with
as little disturbance as possible to his personal relations with
agents, or professional men whom he, or she, had been in the
habit of employing. The lawyers, notaries, agents, etc., of
the deceased are continued to be employed, as far as possible,
in connection with his affairs.

There is infinite variety in the work of a trust company,
as it acts as executor and trustee for persons in all kinds of
trades and professions, whose various business affairs are
carried on or wound up, as the case may be.

One of the difficult features of the trust business is that
the company is continually defending the interests of the
dead against the living, and of persons unknown to the com-
pany against those who have appointed and are paying it. It
is essential from the company's point of view that the in-
tentions of a dead testator, who has entrusted his estate to
their hands, should be carefully and scrupulously carried out.
Sometimes such intentions are not very agreeable to the heirs,
but no company, which expected and hoped to continue to


receive the confidence of the public, could allow the intentions
of the deceased person to be set aside at the desire of the liv-
ing heirs, merely in order to obtain, or retain, their good-

Where a trust company is acting as trustee for a bond issue
under a trust deed, it is appointed and paid by the company
issuing the bonds, but represents the bondholders, who are in
many cases utterly unknown to it. The duty of the trustee in
such cases is to enforce strictly the conditions of the trust
deed against its known client, if necessary, on behalf and in
the interests of people with whom it may have had no com-
munication. Cases may arise where it may possibly be
unaware of the address of a single bondholder. Industrial
companies are very apt to execute trust deeds, securing bond
issues, without sufficient consideration of the covenants which
they undertake to fulfil. The deed is executed, the bonds are
issued, and shortly afterwards the industrial company finds
that under the deed it is expected to do something which it
finds extremely inconvenient. It promptly proposes to the
trustee to waive certain conditions of the deed, or otherwise
attempts to evade them, thus placing tlio trustee in a very
delicate position. In such circumstances the trust companies
consider themselves bound to enforce the conditions of the
deed without fear or favour; and it is very seldom, indeed,
that a large trust company is free from discussions, and even
disputes, arising either from the attempts of living bene-
ficiaries under a will to set aside the intentions of the testator,
or from the desires of companies, for whose bonds the trust
company is acting as trustee, to vary or evade some obliga-
tion which it has light-heartedly incurred in the deed of

While the branch office system is in effect to some extent,
its value, except in the larger centres of population, still
remains to be proved. Small towns and villages have little
business to offer to a trust company, and while the companies
require to have sufficient agents and connections to protect
the interests of their clients, there is no great advantage to
be derived from the establishment of branch offices outside
the Dominion. Up to the outbreak of the war, sufficient
money was offering from individuals and syndicates abroad,


direct to the home offices of the Canadian companies, for
investment purposes in Canada, as to render it unnecessary
for the companies to establish offices in foreign countries
with a view to obtaining business there. Most of the prom-
inent companies, however, have agents or connections abroad,
which enables them to stretch out a long arm for the pro-
tection of clients in other parts of the world.

Some of the Canadian trust companies, in addition to
fulfilling the duties of executors and trustees, act as invest-
ment agents for corporations, syndicates, and individuals,
and in this capacity have assisted considerably in the de-
velopment of western Canada by finding moneys for farm
loans. For many years these loans proved a most satisfac-
tory form of investment, being safe and yielding good re-
turns. It naturally follows that great care must be exercised
regarding the security and its value.

There is still a great deal of splendid land in the north-
western provinces awaiting cultivation. A much larger
population than we have at present could easily be self-
sustaining. "When the war is over, and the burden of taxes
in all the European countries, which have participated in it,
is pressing down upon their congested populations, there is
reasonable ground to expect a rush of immigrants to this
favoured land, where steady industry is assured of its reward.
This is no country for the tramp, the idler, or the lazy incom-
petent, and there are parts of the cultivated areas where the
present shiftless farmers must be replaced by steadier and
more intelligent men, who will be ambitious to do what is
right and proper to the ground, and who will in return be
entitled to expect ample compensation in its increasing yield.

I look forward to the time when the development of our
natural resources will afford sustenance to numberless indus-
tries operated by a people strong in numbers and power, of
high national and individual character and ideals, bound
up by ties of kinship, affection, and mutual advantage.



By H. S. Arkell, M.A., B.S.A.*

Few realize the industrial importance of land and rural
occupations in their relation to the social and commercial
development of a nation. An elaborate interpretation of this
relation is, of course, not in keeping with the purpose of this
article, but the economy of agricultural and live stock pro-
duction, in its bearing upon national progress, can. perhaps,
best be explained by reference to certain aggregates of values
which will serve as a basis of comparison between a few of
our most important industries. It is officially reported that,
in the fall of 1913, the farmers of the Province of Ontario
had deposits in the savings banks to the amount of $100,-
000,000. For 1914, the estimated value of farm crops in
Canada aggregated $638,580,300, and of live stock, $725,-
530,000. Apart altogether from the worth of the land, the
estimated value of farm crops and live stock aggregated the
immense total of $1,364,110,300.

Turning now to a consideration of other industries, we
find that according to census returns the total capital in-
vested, in 1910, in manufactures, amounted to $1,247,583,609,
and the total value of its products to $1,165,975,639. As com-
pared with the savings of Ontario farmers, we may note that
the total of salaries and wages paid to employees of manu-
facturers in all Canada, in 1910. amounted to $241,008,416.
Our financial insitutions, which may be considered as ade-
quately represented by the chartered banks, have a total
paid-up capital of $114,759,807. The total mineral produc-

•Herbert Samuel Arkell was born 1880; B.A.. 1902; M.A. and B.S.A..
1904; instr. animal husbandry, Ohio State Univ., 1904-05; lecturer,
Agricul. Coll., Guelph, 1905-07; prof. Macdonald Coll., 1907; Asst. Live
St«elc Commr. Dominion Govt., since 1910.



tion for 1914 was valued at $128,475,499. The total gross
earnings of the railways aggregated, in 1914, $243,083,539.

The statistics just quoted suggest the value of the asset,
real and potential, to Canada of her rural industries. It will
be recalled that, when at the outbreak of the war, the whole
credit system of the world was disorganized and disrupted,
the statesmen and financiers of the country turned with a
confident appeal to agriculture to re-adjust the adverse bal-
ance of trade which then existed against Canada. Sir Thomas
White (then the Hon. W. T. White), Minister of Finance,
called attention to the embarrassing position in which the
credit of the Dominion was involved, consequent upon the
fact that we have been obliged to borrow in order to finance
our productive activities. He quoted statistics to the effect
that the balance of trade against Canada, or, in other words,
the excess of imports over exports, amounted, in 1912. to
$225,000,000; in 1913, to $300,000,000, and in 1914, to $180,-
000,000. Hitherto we have corrected this adverse balance by
borrowing from Britain, or, in other words, we have paid our
debts by adding to our loans. We have bought more than we
have sold, but, as our capital resources have so increased as
to warrant it. we have paid by consolidating the debt. The
financial crisis resulting from the war faced the country with
the payment of this debt. Sir Thomas White appealed to
agriculture to save our national credit.

How agriculture played its part in answering that appeal
may be gathered from the statistics of imports and exports
for the first five months following the outbreak of the war.
During that period the exports aggregated $189,256,485. Of
this amount, $9,671,628 was furnished by fisheries; $20,276,-
595 by the forest: $22,339,018 by the mines; $31,507,433 by
manufactures; $41,153,615 by animal produce; $63,993,681
by agricultural produce; or a total for agriculture of $105,-
147,296, this being the equivalent of 55 per cent, of the
exports of all commodities for the period. Nor is this an
isolated instance where the record for agriculture, as com-
pared with its rival industries, evidences its pre-eminent posi-
tion in the commerce of the country. For the nine months
ending December 31st, 1914, the export of animal and agri-
cultural produce constituted 53 per cent, of our total export


trade for that period; for the fiscal year, 1913-14, it con-
stituted 58 per cent. ; for the fiscal year, 1912-13, 54 per cent.,
and for the fiscal year, 1911-12, 53 per cent. For the last
month of the calendar year 1914, total exports exceeded total
imports by $5,738,726. In that month the goal was achieved,
in that the balance of trade was placed on the right side of
the ledger.

The total exports from Canada, domestic products, not
including gold and bullion, for eight months to August
31st, 1915, amounted to ...$ 302,858,210

The total imports for home consumption, not including
gold and bullion, for eight months to August 31st, 1915,
amounted to 282,186,650

The balance of trade in favour of Canada, therefore, for

the period given amounted to $ 20,671,560

Perhaps at no time in the history of Canada has the atten-
tion of prominent public and business men been so appre-
ciatively directed to agriculture as is the case to-day. Finan-
cial depression has clogged the wheels of industry and re-
stricted commercial development. The war has disrupted
credit and created an unprecedented demand for foodstuffs.
The Empire's need has illustrated — and brought into remark-
able relief — the stability and fundamental importance of our
rural industries. Statesmen and financiers have recognized
that our agriculture is an asset which steadies and maintains
the country's credit. The transportation and carrying com-
panies have learned that they need the business which trade
in the produce of the farm develops. Middlemen admit that
theirs is a service, the success of which is dependent upon the
permanent well-being and business advancement of the man
on the land. Manufacturers are finding it to their advantage
to take counsel with the organized enterprises of farmers.
The Parliaments of Canada. Federal and Provincial, are be-
ginning to sense the smouldering power and influence of the
agrarian interests. In a word, the most important single
feature of our national economy, as significant of the future
of agriculture in this country, is the business and commercial
recognition which the industry has achieved almost within
the last few months. The Bill of Rights taught the people
of Britain that the sovereign power of the Kingdom lay


within their own hands. The European war is teaching the
farmers of Canada that the heritage of the Dominion is their
natural birthright. Who shall say to what end that truth
leads ?

The young men of rural Canada are fortunate in having
at their hand the advantages of one of the most complete and
practical systems of agricultural education in the world. It
is now freely recognized that when, in association with com-
mon sense, technical and experimental information is brought
to bear upon the problems incident to the management of a
farm, the owner soon finds himself in a position to become
master of his work. The Dominion is equipped with agri-
cultural institutions and experimental stations of which,
serving, as they do, the needs of every province, she has
reason to be proud. In the courses and experiments, science
and practice have been so combined as to equip the student
thoroughly and efficiently for his future work. Govern-
ments have been lavish, but not too lavish, in their expendi-
tures in this direction, and perhaps no more popular justi-
fication for any progressive measure is to be found than in
the endorsation given by the students themselves and by the
public generally, to the development of agricultural educa-
tion. Unquestionably, all forward movement is given sub-
stance and rendered possible through the operation of the
forces which are brought into being as science; and the teach-
ing of experimentation, and the principles of social and rural
economy, touch the personality of the farmer and the problems
of the farm.

There is one field in the exploitation of which agricul-
ture has had as yet but very limited experience. I refer to
the organization of the producer, and rural co-operation in
the sale of the products of the field and feed lot. A move-
ment in this direction represents a potential force, making
for progress and power in his interests, the value and magni-
tude of which the agriculturist, collectively, has only par-
tially recognized and indifferently achieved. A prominent
business man said to me recently, "What can the producer
expect? What can the consumer expect? Neither the one
nor the other is organized. Between them is the middleman.
His business represents the best brains the country can de-


velop, and the best organization that such brains can create.
The producer and consumer are individuals; they sell as
individuals; they buy as individuals. When there are ad-
vantages to be gained, who is to gain them? When there
are to be profits to be reaped, who is to reap them ? Certainly
the problems incident to supply and demand restrain and con-
trol our activities; the law and the government, and perhaps
competition, restrict our opportunities; but to-day the in-
dividual cannot expect to compete successfully with organ-,
ized business." That is the situation in a nutshell.

In Canada, at the present time, the farmer knows how, or
he can find out. Agricultural education surrounds him with
information and demonstration. Experimental stations ad-
vise him regarding methods and practice. His productive
activities are, or may be, intelligently directed. His selling
operations are uneconomic, wasteful, and out-of-date. In the
marketing of his goods is to be found the great leak in his
own and his neighbours' business. In the. creation of a mar-
keting system, commensurate with the commercial genius of
the age, lies the way of progress.

Let me give one illustration ! In 1912, the Live Stock
Branch of the Federal Department of Agriculture became
convinced that the only argument which would be indisput-
ably credited as to the utility of a movement in this direction
must consist in a thorough-going demonstration of the prac-
ticability of a co-operative system of marketing. For reasons
which need not here be detailed, it was decided that the egg
and poultry industry offered the most attractive and season-
able opportunity for the purpose contemplated. By arrange-
ment, the chief of the Poultry Division went to Prince Ed-
ward Island to investigate conditions in that province. He
found that the farmers had practically no market for their
eggs, other than that which they could secure in the way of
trade at the country store. Competitive traffic in the product
appeared to be unknown. Neither buyer nor seller realized
much profit from the business. There existed no incentive
to improvement. The poultry industry, in short, needed
systematic re-organization, were it to prove the commercial
asset to the province which was clearly warranted by the
natural adaptability of the Island for poultry-keeping.


At one of the meetings held a loop-hole for progressive
work was offered, and a recommendation was immediately
made that the movement be initiated on Prince Edward
Island. A capable man was secured to direct the campaign,
and he was instructed to foster the egg circle propaganda as
the basis of his work. The result of his efforts, and the
success of the movement, is apparent in the report of the
annual meeting of the Prince Edward Island Egg and Poultry
Association held in Charlottetown, in April, 1915. The busi-
ness statement follows : —

Business done by Prince Edward Island Egg Circles, January 1st,

1914, to March 31st, 1915

No. dozens collected by 42 circles 921,264.4

No. dozens estimated by 19 circles 289,645.

Total dozens collected by 61 circles 1,210,909.4

Gross value of all eggs collected $ 279,114.60

Net value of all eggs collected $ 266,400.06

Average cost per dozen of collecting l-l/20c

Average net price per dozen paid members 22c

The Hon. Murdock McKinnon, Commissioner of Agricul-
ture for the province, expressed the conviction that the meet-
ing of the association was the most enthusiastic farmers' con-
vention ever held in Charlottetown. He stated that the best
farmers of the Island attended, the circles having chosen
their best men as delegates. They had come for a purpose.
They knew their business. They accomplished what they
came to do.

*"The principle underlying the formation of the egg circles
is that the farmers of the Island shall have the opportunity
to reap the just returns of their labour. They are intended,
and will act as a stimulus to the keeping of better strains of
poultry, and increased production, due to proper care.

"Another very tangible result is the popularization of the
Island eggs in the Boston and Montreal markets, especially
since the establishment of candling stations, whereas previ-
ously they had a poor reputation on those markets. Trans-
portation companies are investigating the business very care-
fully, and are looking forward to the carrying of the eggs.
Bankers on the Island are also giving a great deal of atten-
tion to the financial side of the undertaking, and considering

• Press Reports of the Convention.


carefully how great are the prospects. Such interest augurs
well for the solidity of the business. The farmers of the
Island are required to make a further effort to gain full and
undisputed possession of the heritage opened to them, and
it is expected that they will be fully able to consolidate this
great undertaking, and set an example of successful co-opera-
tion, not only to those within, but also to those without, the
bounds of our fair Dominion.

"The Live Stock Branch, through its representative,
undertook the difficult task of organizing the farmers of this
province into egg circles, with a view to secure for them the
highest prices for eggs that the available markets could
afford. The work succeeded beyond their most sanguine
hopes. Some five thousand farmers were enrolled. The busi-
ness of marketing their eggs was established, and in conven-
tion this week, through their delegates, they publicly placed
the stamp of their appreciation of the work in a resolution,
which was supported by perhaps the strongest speeches ever
heard in any convention in the province."

One great fact the reporters have missed, and the con-
tention has failed to recognize. The people have done this
work themselves. It has been their own fight. They are
winning their own victory. Were it possible to tell the whole
story, this statement would be more fully vindicated. Assist-
ance and counsel and direction they have received, but in
the face of discouragement and unmerited opposition, they
are building firmly the foundation of a permanent business
institution, which has its significance for all Canada in the
development of the live stock industry.

In this direction, let me repeat, lies the way of progress.
It is becoming evident that in the production of live stock
consists the safeguard of Canadian agriculture, and the
steadying factor in the maintenance of Canadian business.
A prominent merchant said to me the other day, "Conserva-
tive bankers in the United States are beginning to realize
that cattle paper is the best collateral that they can get."
Banks in Canada cannot legally loan money on live stock.
Transportation companies admit that without live stock busi-
ness their profits disappear. They acknowledge that had they
fostered the rearing of cattle, hogs, and sheep years ago,


they would be reaping the benefits to-day. The leaders of
finance and commerce in the Dominion Parliament now know
that the permanent support of the country's credit lies in
the extension of live stock production, and in the immense
resource which the Dominion affords for such development.
Agricultural educators and practical agriculturists, no mat-
ter what their predilections or prejudices may be, deliber-
ately affirm that the soil is an asset only as it is itself fed, that
the product of the soil must be converted into live stock
before it leaves the farm, and that without diversified farm-
ing, Canadian agriculture cannot succeed. In the argument,
wheat vs. live stock, as an export commodity, let it be re-
membered that, in the year 1913-14. Russia produced 934,-
927,000 bushels, as against 231,721,000 bushels by Canada;
that — on account of cheaper labour — Russia can grow wheat
20 per cent, cheaper than can Canada ; that Russia's great
rivers flow south into navigable waters, while Canada's flow
north into a frozen ocean. As a direct result of this fact,
Russia can deliver her wheat on the British market at a 20
per cent, lower cost for carriage than can Canada. It is not
now intelligently contended that the policy of unduly extend-
ing the growing of grain for export purposes is economically
sound, or practically desirable.

What, then, are the resources of the Dominion with respect
to the rearing and maintenance of live stock? Canada's
actual status in this regard may be gleaned from the follow-
ing tables : —

Area Sq. Mis. Population Cattle Sheep Swine




t6, 036, 817


t3, 434, 261

Australia . . .

*3, 063, 041





New Zealand.






United States





t58, 933,000

Argentina . . .




t80, 401,486


Kingdom . .



Online LibraryE. A VictorCanada's future, what she offers after the war; a symposium of official opinion → online text (page 8 of 29)