Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 24, 1952, Winnipeg, Manitoba Freedom of Trade Liberty of religion Equality of civil rights or towers warning the theory1 that Canada or any other country can increase its Prosperity by restricting the natural flow of Trade is condemned As futile dangerous by or. Graham towers governor of the Bank of Canada. Since or. Towers has never been concerned with party politics has faithfully served successive Liberal conservative governments is generally regarded As one of the most eminent Bankers in the world his considered views on the present world situation As Given in a speech at St. Andrews by the sea new Brunswick Are of High significance Are being widely discussed in North America Britain. Clearly or. Towers feels that the time has come for him to Issue a non partisan expert s warning against a tendency toward the restriction distortion of International Commerce which could greatly damage not Only great trading nations like Canada but the world Economy at g printed pull shed the Winnipeg free press company limited 300 Carton Street Winnipeg Manitoba. Authorized second Clasi matter by the Post department Victor s1fton r. S. Malone president to publisher vice president Grant Dexter we. Lord editor general manager p after All the constructive efforts to re establish a sound world Economy after the last War after All the extraordinary Success of the War devastated countries in re building their productive apparatus Why is it or. Towers asks that the world Market is riddled by import restrictions that convertible currencies can be numbered on the fingers of one hand that most nations have suffered grave inflation while there Are Many other contributing factors the Basic trouble or. Towers says is that there has been a constant attempt to do More than the resources of most countries would permit countries whose desire outruns ability to pay first use up their reserves of foreign Exchange to buy More than they sell in the world Market. When these reserves have been exhausted the next step is to restrict imports thus to attack the symptoms rather than the cause of the trouble a Shor Tage of goods an excessive appetite for them produce inflation at Home while the import restrictions contribute to a most serious weakening of the economic Structure of the free %v01 wherever import restrictions exist or. Towers adds you May be sure that labor capital Are being diverted into uneconomic uses this at a time when the need has never been greater for the most efficient use of capital that is to say when a nation attempts to produce those kinds of goods which it cannot produce economically competitively protects artificial industries by restricting imports it is not securing a maximum return for its labor materials it is paying excessive costs for its goods of course it is dam aging the Trade Prosperity of other nations that Are us natural markets . Sources of Supply. Increased manufacturing facilities in Many under developed countries Are to be desired or. Towers agrees but where capital is lacking for this purpose the question of priorities assumes major importance. Import restrictions set up false priorities they make the worse appear the better alternative. By their effects on prices profits they encourage the development of secondary industries which Are dependent on continued import restrictions or prohibitions for their survival. In Many cases these industries produce non essential goods. Import restrictions produce a situation which draws people away from the country to the cities. They reduce the relative profit Wall to of the production of exportable foodstuffs raw material s which have to face world Competition they there fore operate to reduce the production of these essential things in a word the effect of the restrictions is to Channel resources in the wrong direction to perpetuate inflationary conditions to weaken the Basic economic structures of the countries applying the import restrictions were originally imposed to meet balance of payments difficulties but says or. Powers they have become props for Industry to lean on on which Industry ultimately becomes As the French put it Here is nothing so permanent As a this Case an arrangement which undermines the Prosperity of the towers urges must do its utmost to influence the course of world events in a direction away from Restuc monism but we must also be prepared to keep our Heads Well above water even if developments elsewhere Are in Favorale. Do so we shall continue to need flexibility in our economic system we shall have to maintain our productive efficiency at a nigh level to keep our costs on a basis where they can Facey Tat such policies Are More essential than Ever there is Strong pressure in Canada to follow by Means of both Export import restrictions the very courses of Trade restriction of High Cost uneconomic production which already sve greatly damaged other nations threatened the world with still larger damage in the future. What or. Towers is really asking in Layman s terms whether the world such pressure is foolish enough to return to the economic horses of the Nineteen twenties that produced the depression of the thirties of the flying school at Edmon ton in such esteem was he held by the student flyers that it became one of the most sought after postings in Canada. Wop May never left aviation he gave his life to it he died in it. And in the great opening chapter which has been written in our time his name holds a place of Honor. Winnipeg tuesday june 24, 1952 father Neptune Wop May of the War he had shot Down 13 enemy airmen had been promoted to the rank of Captain the photograph which a com had won the distinguished Fly Paniell the news item about Cap eng Cross. Tain w. R. May s death might was have been that of an unassuming by the end of t quite orthodox business or not he end of a Tion. Professional Man settling comfortably into Middle life. The neatly brushed Grey hair the rimless Eye glasses the suggestion of flesh Ness about the jowls these things give Little indication of the career which closed with his death a made him one of the great almost legendary figures in Canadian Avia on. Wilfred May was born in car Berry Manitoba in 1896, the same year in which Otto Lilienthal crashed to his death while experimenting with gliding aircraft. He was a Grade one Schoolboy by the time the Brothers got the Kitty Hawk off the ground. The whole tremendous history of aviation was encompassed within the Short Span of his lifetime. It was a history filled Vith Romance danger audacity solidly embedded in that history is the life Story of Wilfred Wop May. Fame sprang upon him in Over enemy lines on april 21, service to aviation Jed him Over the Allied lines past Hying age when these into the path of Captain Roy cond world War broke out Cap Brown s fatal Bullet. By the end Tain May became the manager or Drew s Chance there is one aspect of or. Drew s speeches on Trade that deserves special attention in West Ern Canada. His statements could have a direct bearing upon wheat marketing policy. Speaking in the House of com Mons on june or. Drew said the sooner we get Back to the Point when free men trading As free men in the markets of the agricultural products in Industrial products any other kind of products can create their own markets by their own initiative by their own skill the sooner we will get Back to the time when the free Economy will be working in the Way it later in the same speech he said if we believe in a free Economy if we believe in Freedom of Trade As free men women then surely it is the function of government to seek the methods the procedure by which we can return to free methods of trading to the seeking of markets to the building up of markets by individual initiative vigor vision. That is what we should be seeking at this time when we now find ourselves con fronted with the necessity of intergovernmental transactions of this nature. I submit or. Speaker the very fact that it was possible to enter into a of that kind does suggest the advisability of wider discussions which will seek some method by which we can open out these markets by which themselves the record of the conservative the Baltic cart my by dash for Freedom after All l Ondon Little Confidence has been created Here by the recent official announcement that millions had been lost from the British Exchange re serve in the two a half months from april to mid june. This indifference to the news is As an immediate reaction sur prising. In the Spring informed commentators financial sex prospects for Sterling e Confidence has by t. I k. Dollar earnings open out these markets by Wincn in the City were guessing governments can provide the be have to stand even though a Little of it is owed to the United states government which has seeded the Transfer of the millions of Mutual Security granted to Britain for 1951-52. About a third of this sum has been handed Over in the past few weeks. But the main reason Why Dol Lar losses have been smaller than Dollar earnings during the rest o the summer Are bound to be Lov Confidence May Well be los again. happen a Trad crisis involving disaster for Brit ish Industry could arise with the to Britain Lor government quite Power third of this save situation. This governments Pius inc h might have to stand the debilitating economic to hide for International Trade in Osing another was generally feared lies in the ices country has pursued Stead of becoming the vehicle or go Pererve elusive Confidence Factor be of past seven years. And a Jias ins eau Vcci a. J-cojjit.--. Party with respect to the mar Brush gov. Be tins of Grain is so twisted Al a. La pc aij.cl1j1 _ i r fans Miil i i Inri Ermenc Jonas Iuliu use contorted As to discourage any St Ghow a expectation of sincerity. Laek of Confidence in the economic prospects of Brit Ain. The truth is that the underly ing reasons for this Lack of Confidence Are not affected by the respite from heavy Dollar losses. If another millions had been lost the Exchange Reserve of the Sterling area would have fallen to millions catastrophe would be close at hand. Catastrophe held off in fact catastrophe has been held off during the first three months since or. Butler presented his budget tightened Cre Dit conditions. That is no reason for a complacent sense of secur Ity about the future. As or. Churchill himself said in the re cent speech that has deservedly impressed the Public s imagination Britain is standing on a trap conservative convention in 194s, a Strong Effort was made to have the party come Down for free Dom in marketing which is what or. Drew would now seem to be talking about. The prime movers in this Effort were or. Thorvardson or. Mcdowell of this City. Their hands were stayed by the intervention of or. Murdock Macpherson of Regina who told the convention that opposition to compulsory wheat Board marketing would be fatal to conservative candidates on the Prairies. The conservative convention promptly Stul tidied itself by passing a Resolution on Grain marketing which meant precisely nothing. In the general election which followed in 1949, or. Drew enshrouded the party s position still further in mystery. How Ever As he proceeded Westward across the Prairies it did seem that he favored the Sale of wheat Uidl Jjck Lyric am is Sun Mug Uji Licup Barley Oats by a compulsory door that May open at any to marketing Board or boards. Ment. If there has been any change j during the five before Xic a Runng me live Fri undid a Cuic Auu Milito to any. Sign that any gain in clarity of mind budget in March the Drain on area such As Wool rubber jute for is ending recent years if the speech just British Dollar reserves was tin Cocoa the like. If these to orc finn. Be chaos i Tho Nevi few another possible policy car Jcj Ctm Yea to ii British Dollar reserves was Liu Tuura Yajiu Luc quoted Means anything perhaps millions since March 1, it has prices Rise during the next few Tir of will he crowd enough for Sterlin Vir. Drew will be Good enough May it was just the beginning. Flying was. In his blood now. And what country could hold a greater Challenge for a Young airman than his native Canada with its vast distances almost inaccessible Northern outposts the science of aviation had made great strides during the War but for All that the planes Wop May piloted above the uncharted wilds of Northern can Ada left a great Deal to the discretion of the Pilot. There were hundreds of other Young fliers who sought adventure a livelihood in Bush flying but they had one serious weakness. They could get lost. Their Only instrument was the Compass when the lines of variation began to twist turn when they found that their Compass contradicted the Sun they soon the object of a search party. Wop May possessed that great gift a sense of direction he was never direction it was that to say so. Friendly lies it is pleasant to read in the test Issue of news the soviet English language journal that relations Between the american soviet people even under present conditions reveal a Mutual striving towards news explains that despite or. Acheson s assertions there is no hate propaganda against the United states in Russia. As for soviet pro Pagan it asserts one of its prime objects is to promote Friendly relations Between the soviet Peoples the Peoples of All countries the americans included to establish peaceful re lations Between the . And other states including the another soviet publication i tera Turnay gazeta is published in russian for russian consumption. It promotes Friendly relations by describing the president of the United states in the Fol lowing fashion As is Well known Truman has never been distinguished by any jets. Z s courage which made him an out be Sci jewish ascetic sect Wincn originality of his has de go Many Christian. Tenets always been a copycat. It was Hippo Virv seem t from Hitler that he borrowed his delirious idea of establishing a world wide fascist Empire. From Franco he Learned his sadistic brutality . From Churchill he took his idea of organizing counter revolution Ary expeditions. From the Japa Nese emperor he bought the a heavy speculation against Ster Ling. Dollar losses were heavy because the world was reducing its holdings of Sterling As much As possible. The b budget the stricter monetary policy did not go far enough to replace this by an Active Confidence in Britain s future. But they did halt speculative movements based on imminent fears of another devaluation. The key to the situation is that while Confidence in Sterling is not High now it was very Low before the change is what matters in stopping the Dollar Drain temporarily. But in this situation a revival of Specula Tion against Sterling is obviously possible at any moment this is the fact that or. Churchill s speech recognized. A permanent Stop to the Dollar Drain depends on creating conditions for continuing Confidence that has q Cre p s certainly not been achieved yet. Discussed in financial quarters immediately Confidence de the raising of Bank rate another pends on two things. Tej. Cent hence situation. This danger exemplifies the weakness to which Britain has been reduced by previous losses of reserves debilitating economic to for the past seven years. And Here is 1he second condition on which Confidence in Sterling de pends. High prices for Sterling products will not save the Situa Rion if inflation is allowed to create a Trade deficit All the same. Increasing doubts doubts about the Success of the conservatives first measures to Stop inflation Are increasing Here As Well As abroad. The signs of weakness confusion in gov eminent policy could if they continued destroy Confidence in Ster Ling even if Dollar earnings from commodity exports by the other countries of the Sterling area Are unexpectedly High. Or. Butler at least is aware of this. For the familiar political reasons no improvement in budget policy or Cut Ting of state expenditure can be expected this year. But the possibility of a further tightening credit policy is being actively pends on two things. , no. To five per cent Cand hence external to Britain itself is the Raisi of Al interest course of Dollar prices for com a the boost first modifies produced in the Sterling react Oil t6 any. Sign the a t the been Only minions. The months the respite for Sterling change is remarkable. The res is quite Likely to continue. But if Pite is of the utmost importance they fall again the Sterling area s the wilderness from the Manchester guardian to All that is of Venus without Money Only the society of Palm Trees. From Day to Day they maintain their numbers thanks to the multitude of new recruits for very Many Are there who tired of life Are led by the tide of Fortune to adopt them Way of life. It is thus that for thousands of Cen Turies this eternal people has existed where no one is _ _ born. Brew manuscripts the dead the second discovery is1 of frag sea scrolls was made Over ments of manuscripts in some which scholars Are still disputing j caves about ten Miles South from further exc tag discoveries the de in Ric of tint tips hidden Library. Wilderness of Judea a _ wild Barren stretch about twelve Miles wide Separ ates the Hilly country in which lie Bethlehem Hebron from the deep Cleft of the Dea d sea. It was Here that the Good Samaritan played his part through the Long cent uries it has been the haunt of bandits outlaws who have found Refuge in its caves in the rocks. In one of these caves five years ago the great find of he another possible policy cannot now be ruled entirely out of account. The Case for a dash for Freedom in British Exchange policy is at last being seriously considered. The govern ment s advisers Are increasingly prepared to admit that tight Exchange controls the i conver by damaging to the Economy in the Long run dangerous even on a Short sighted View. Position of Sterling there can be no real confide serves in uie Autlin Vij. Ence until h is freely nce Are keenly disappointed at convertible into dollars. On the nest Monement of their being made in this Region. First the. Excavation of Kirbet qum Bris of another hidden Library. These include some letters which substantial building probably pre roman a monastery of the essences that remarkable jewish ascetic sect which Antici the discovery would seem to strengthen r the theory for which there is much support that the dead sea scrolls Are part of the Library of an Esserie monastery hidden in a time of trouble per haps this a Kirbet Qumran. It fits in too with the famous description of Pliny the elder who Nese Kii Klul no us uni. Tent to use Blacic Plagie died in 79 of How to the after that string of lies Many West the dead sea there lived in. The is scenes. People will wonder what the so Viets would have. Left to say. If instead of cultivating Friendly relations they were really out to be insulting. The. Essences. They Are a people unique in than any. Others world without women renouncing of one of the greatest figures in jewish history bar Kachba the Leader of the last rising against the romans hitherto almost a mythical character. With bar Koch a s death. And the crushing of the rising by Julius Severus in . 135, the jewish nation was finally crushed it is a great pity that the unhappy Palestine puts so Many obstacles in the Way of a full co operative Effort by schol ars of. Jill nations to follow up these finds make the Wilder Ness yield secrets. Today s scripture we Esq Inan s blood by Man shall his blood be shed for in the image of god made Tibia it of Sterling Are both grave limiting Export in dam Crink to the Economy in-------------2------e----- other hand can there be convertibility without be fore there is Confidence at a fixed rate of Exchange As in is now being Given to this ques Serva Tive government is As yet anywhere near being ready to break sharply with All the restrictive protective policies that Britain has pursued since the War in some cases longer. But official opinion is certainly moving a Little closer to the View dash for free Dom offers in spite of All its risks the Only Hope of permanently restoring a Safe position for Sterling in the world. Yet even if this intellectual conviction is reached it would require More political courage than this government has yet shown or else even More desperate circumstances than it has yet had to in get the decision Tran slated into action. I monday night club by c. S. R. City Council is not a court could the future. Hold for of Law. We have this on the Man his family surely sus pension was punishment enough authority of Alderman Peter Taraska As an inexperienced observer we Are. Prepared to take him at his word. On monday evening however this is no doubt Why Alderman Taraska Felt impelled to make the state ment a solemn judicial atmosphere did pervade the lofty partially renovated chamber in which the City con duct their Public deliberations. A. Man s reputation was at stake. More than that it was Alder Man c. E. Simonite who perhaps Laid greatest emphasis on this a High principle of civic morality was involved. An employee of the City Engineer s department had been Dis missed of misconduct he had used for his own Pur poses equipment material be longing to the City. He had admitted doing this but claimed that there was nothing surreptitious about his action. He had quite openly borrowed the tools he had openly obtained a length of Copper pipe he had every in Tention of replacing the pipe returning the tools. For this first offence. Let the Council agree to that then set up a three Man committee to decide on a just period of sus pension. Alderman Jacob Penner agreed in principle. But Why bother with another committee the Man Al ready had been out of work for five weeks. Why not set july 1 As the Date of his reinstatement let it go at that into the Battle our Aire cuon. We. Ciu Rivat every Council member was a to near Art the patently agreed upon one thing Alderman Slaw Bebchuk threw himself into the Battle at Alderman Mckelvey s Side. Al Derman Bebchuk is a violent Man at least in his oratory not too easy to follow. We did gather though that he was interested Only in facts. He had no intention of Pinch hitting for any City employee but facts were facts. The Man had done nothing but what thousands of other people might do it might be me or Alderman Bebchuk s voice Rose As he spoke As his accusing Finger swung around in our direction we. Almost expected but the big guns were manned Janiki Ilijin Uijun Tjui the dig guns were Mainuu the employee was guilty of mis to los not Portia but by conduct. He had not obtained per Alderman Simonite those Mission from a person authorized who with him. Dismissal to give it. Hurst s action in May have Beell Tov severe a Mea j n Novi Toovi a i i. Dismissing this Man had been approved by the. Committee on Public utilities the commit tee on finance. And now the Council members were being asked by the committee on person Nel legislation to concur in the action of the City Engin Fine delivery Alderman h. V. Mckelvey thought this was going a bit too far. Alderman Mckelvey has a kindly distinguished appear Ance. He had a Fine delivery too there was just the right note of compassion in his voice As he like Portia pleaded for mercy. There had been no theft no intention to steal. Foolish perhaps the Man had been misguided but not criminal. His previous rec Ord was Good now dismissed by the. City under a Cloud what sure i Don t the City Engineer had exercised his authority sternly but he carried a great responsibility it would be a grave matter to undermine that authority. The whole great Structure of civic administration must like Caesar s wife be above suspicion. What the Man had done was wrong. The Issue in question was too important to permit personal considerations. Nothing could justify the Council in condoning the slightest lapse from absolute integrity in the administration of their High stewardship. We doubt if there was one Council member who found any pleasure in concurring with the action of the City Engineer but by a Strong majority they did concur. We came away feeling that Winnipeg is a pretty solemn but a very sound City. Huge Alberta reserves natural Gas controversy has been a Good waste of the Gas produced 1 of controversy in Al with Oil such As occurred in Berta Over the matter of mar Turner Valley would not now be citing its huge reserves of Nat ural Gas although it is now evid jra.1 a Cion it. Ent there will be a surplus far Essa Rily Rule out future further exceeding the needs of the prov concessions. It is generally be believed the Board s estimates of intensive search in 1951, reserves Are very conservative has brought that if proper incentives to again Many this new year discoveries ranging in ally a Iuva i a. From the . Border to the peace billion cubic feet per year River country. Early in april for the next decade would be Dis covered. Proving up of addition Al reserves will thus Likely bring an Extension of the limits permitted for Export. He conservation Board estimated reserves at billion cubic feet although it also stepped up to estimate of the needs of the province due to accelerating population growth .prospects of a substantial Industrial develop ment. It now considers the Only a s surplus to the 1952-s1 require ments of Alberta is 300 billion ubic feet in the peace River Irea has recommended that ill application s for pipe lines be refused excepting to draw Gas rom peace River across the Roc ies to Vancouver to Pacific Northwest states. The the Alberta legislature has endorsed the Board s recommendations limiting Export to 210 jillion cubic feet for the first Ive years. As a result companies holding Large undeveloped Gas re Erves in the South of the prov is postponement of their dances to secure a return on their Large investments. An outstanding Case is the Creek Field where a Civ to 1947 the answer is certainly sence of a Market for the dry no. But is it necessarily no if the Gas is Jei aying development of rate is allowed to fluctuate in the vary Pijie by products in the officially at least much thought wet Gas natural Gas line propane butane sul 10 w Olla la Youj Jellico Ciciva w Tiomi in London. It would be quite the Market for which is wrong to suggest that the con cons Jered to be greater than for by Gas itself. From Golden books from the i Ilithe errant by Arthur Stringer he Rode at dusk Down Wood lands strange where bathed in fire a greats-Darkf-t6wer whose Shadow groomed the Valley of desire. Alluring glowed that s u n-1 i t Tower but dark the Way Long where the Walls seemed Pearl Gold the Gates stood doubly Strong. Life Lay with All its wrongs to right All its deeds undone Earth held full Many a height to storm but he must take this one. Tolerated. The present limits do not Nee explore Are provided least a s to local needs for new industries already Throe Large projects Are underway in. The Edmonton area that will use the cheap Gas. A Mil lion chemical Plant will soon be completed a smaller polythene plastic Plant has been started Nickel refinery to process Ore from Manitoba s Lynn Lake mine. There is already a Large ammonia Plant in operation near Gas scrub oing plants at various Points an salvaging from wet Gas the by products mentioned. However despite pro specs that several More important industries will locate in a Luj e r t a use the cheap Gas Tho Small Ness of the Western Canadian Market the fact that adjacent . Markets Are restricted b y High tariffs on petrochemicals the Cost of transportation to Eastern Canadian markets Are serious hindrances to develop ment of a Large petrochemical Industry. Safe of chemicals experts estimate that Sale of Ower priced chemicals will be limited by growth of a local mar Ket since freight charges to East Ern Canada arc heavy. On the other hand higher priced chemicals such As the new synthetic fibres plastics gain great competitive advantage from reduction of manufacturing costs because of cheap assured fuel raw materials Supply development of markets is thus the key to the future of such in Alberta prospects of course would be greatly improved by the the High . Tariffs on petrochemicals. The fertilizer Industry in Western Canada has expanded greatly because these products enter the Large adjacent Market duty free. Seel ;