\» Authorlzed 48. second class: mall, en “Number 1201, Postage p Id in cash, return postage. . _avarenteed me . .! Terrace, 8.C, by. Sterling ‘Publishers, ‘ktd. “ ‘alee Herald, Friday, A May 20, 1963 jaliyt heseld : Published every’ weekday: at 3010. Kalum Street, : ~ Chralyn Gibson . “ Maria Toy . NOTICE OF COPYRIGHT. . : The Herald ‘retalrs full, complete and sole copyright’: ; “an any advertisement produced and-or any. editorial: ‘or photographic ‘content published Jn the Herald, : .. Reproduction is-not permified without. the written oo “. permisston-of the Publisher... a Ottawa funded “TORONTO (CP) — Canada’s chartered banks, hard pressed to find private-sector borrowers for their idle cash _ balances, have quietly begun lending billions of dollars:to ~ the federal government to help fund the: country's huge deficit, : The rise in bank holdings of federal debt has been swift -. and dramatie, | ‘with treasury bill. investments at $10.92. -billion in early May, up 45 per cent from a year ago. Bonds: over three years in term were at $1.4 billion, up 90 per. cent. . ‘ Intotal, banks have covered 17 ber centof the government's deficit over the last year, -. Although it.may. surprise Canadian savers that thelr’ ‘money is ending up underwriting the cash shortfall in. Ottawa, analysts say both the banks and the government ’ find-their needs.are being met in the new arrangement. “It's a case of a co-incidence of interests,” said Roy Palmer of Alfred Bunting and Co. Ltd. of Toronto. ‘He says banks are in a tight bind, with weak corporate loan demand occurring at the same time @8 SAVETS 3 contlnire . to make large deposits. - Banks would hurt their long-term interests by turning away money from clients, and they have sought lending . opportunities with the federal government.” ; “The banks’ problem ts that it is very difficult to turn off - ~ the inflow of deposits;"* said John Grant, economist at Wood: Gundy Ltd., a Toronte investment dealer. “With corporate . cash flow recovering, everybody is trying to pay off debts so the banks have No - ‘eption but to. buy. government | securities.’ ! oe rats ito 4 rete Tey rere ee Asa group, banks have been offering massive amounts of ; - Money: to the. government, but the . figiites Vary for in- | dividual institutions, ‘The Bank of Montreal'seams to :be most out of line with the rest of the industry — its holdings . have actually fallen slightly. Other majors have had growth rates between 13 and 20 per cent. . Although lending institutions are always significant _ buyers. of. government securities (mostly for. reserve purposes), the recent surge seems to be having a wide: ef- fect on operations -in. the financial system. The banking industry, for example, has encouraged the government to issue new two-year federal bonds through an auction system. The decision to go aliead with the auctions ia viewed in the investment community as a government response to bank needs to match the. term of # loans and deposits In the two-year area. ; me _ On the. purchases, bank officials aay they need the: government securities to enhance thelr liquidity position, the funds that can be used for lending should the need arise. John Vail, vice-prealdent at the Toronto-Dominion Bank, - _ called the large holdings a ‘Memporary haven for monies _ hot used in lending.” ' Moreover, ‘the loans also make good business sense because they. earn‘a profit. The securities are an “adequate” substitute “in today’s marketplace for lending," Vail said. The T- Dhad a 20.8-per- cent increase in holdings of Government of Canada ° securities between last October and February, the largest crise among the major banks. (Although the spread between what banks pay for funds and recelve in interest on.loans to the government ia smaller than on corporate debt, financial institutions have also made huge capital gains on thelr bond purchases as the cost of money fell and security prices surged over the last eight months.) ‘Within the financial community, these lending activities are being. watched closely, if only because the love affair with government debe could sour if interest rates begin to rise again. coverage ‘ot this’ Skeens. zone Drama: Festiv val: event? “I. don’t call A few: columns of te cutcome ample, coverage... Second + Where were:the public supporters? «> - Aboucuet tall thoee who vere a part of the Sksseoa Zovie. Drania Feetiva ‘attended all three ‘nights.’ They were’ Ta nights bf exhileration, Inighter ‘and particularly on Friday | - For those who have cried sere ia nothing t9 dol” where ewspapérs were certainly supplied: with ample first-an twaterlal fet inte interviews ...acceas to ‘photos.,.the wotks!. : The Skeend Zone Drama Festival in ove beam —_ nights mini academy award, nal biting, edge’ of your seat: Registration: “+. experiences, wehaine - were you?’: It’s this lack of supporters that’s. makes me, . wonder what ‘would have happened if this. drama’ festival © had been better publicized by-the media. Radio and TV and OS given, * Bilor: i No > attennt wos made by ongonlzers of this event t oR : vs cover any of the performances. No tickets were offered toa’ “ee “We ‘discussed covering . the Saturday. night: 7 ~”. cperformanees “atte” the. election (which ‘conflicted “wwith, “Dear Mr: ° --openitig night), but again, nothing was arranged with thie! Last: year I wrote, letters support of your declaration to. -“ offlee.* If you want your event covered we. suggest you: meeting in, 1943, ‘when the land for a ‘new. ‘cemetery, Was: ~ acqhired that the new. cemetery. be a lawn: cemotery. The . “guffocate”’ the arras raceNow I am called a hypocritefor ‘ contact tis next time before it cocurs;. We were certainly opposing the escalation: of the arms racb in the form of: given no first-hand material, elther. . ' Cruise missile testing’on Canadian soll, Has our leader Se yt 4. . . vai it become so weak-in avery way that he-can only ride in SF ‘Reagan’s pocket? Mr. Trudeau, who is the hypocrite? Pam Whitaker's ra “Skeena Sketches’ Terrace welcomes you! But you must: phone Anne. Middleton at 635-7748 or Nancy Gourllte, 835-7877, to have the Welcome Wagon call on you. y Anyone who has arrived in town during the last three months ie encouraged to. call either of these numbers. itis ‘ certainly in’ your best interest to do . ‘There won't be a large wagon- like ¥ hicla similar to an” - old fashioned ice-cream truck with bells on, it pull up’ to: your door, The aroma of fresh coffee and doughnuts will not” assall your nostrils, but the warnith and sincere welcome: will be there - and a voucher for tree coffee and doughnuts — at the Co-op. oot ; The wagon will be any vehicle that Middleton: ‘or - Gourlle happens to be driving, perhaps even a bleyels on’a nice day: you desire, and on her arm she will have a basket, of goodies for you. - : Goodies, gift certificates for. dry cleaning, fabrics, a. house plant, a pound of coffee, a photo album, coloring: books for your children, a ‘novel, and-other gifts, ; _ Safety program and neighborhood watch program from the RCMP, arena and pool schedules (a free pass), Information. . on places to. worship, information . on. ‘community: organizations -with names to phone, visitors guides and- ‘maps of town and the area, a northwest and B.C. travel and “recreation guide including an aerial drawing of Tertace, ’ Rupert and Masset, a Lakelse Park -brochure, change ‘of, - address forma, library information and more. Wish I could _Move into ‘town again.