Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 2, 1952, Winnipeg, Manitoba Freedom of Trade Liberty of religion Equality of civil rights press primed Ana published by Ilic Winnipeg free press company limited 300 Canton Street Manitoba. Authorized second class matter by the pest Felice department Ottawa. Victor Sifton r. S. Malone president publisher vice president Grant Dexter. We. Lord editor general tuesday september 2, 1952 vicious Circle the very fact that the problem of International Trade seems to be moving toward some kind of crisis not far hence is perhaps the Best Assurance that it will be met and solved by concerted International action. It has become Clear beyond doubt in the last year and particularly in the last six months that the measures taken since the last War to re create an abundant and freely trading world Market have fallen far Short Success and have lately been moving toward failure. The Marshall plan was formally concluded this summer after it had restored the Industrial production of Western Europe but failed in its other objective of restoring a balance in Europe s trading accounts. The spectacular improvement in Britain s Exchange position Between 1950 and 1951 has been replaced by a Large deficit which continues reductions in imports. Whereas Britain achieved a credit in its Trade of millions in 1950, last year it fell behind by millions and still is not paying its full Way out of Carrent earnings. The position of France is even worse a deficit of millions in or four times the figure Tor the previous the Trade of the Atlantic Community on which its economic and military strength Are based is gravely out of balance even though its members Are producing More goods than Ever. In a familiar vicious Circle this unbalance tends to Dimin ish All Trade when the deficit countries More and More restrict imports As Britain has been doing in its latest import cuts. A year ago a determined Effort to liberalize Trade was under Way in Europe. Nearly All the Western european countries freed about 70 per cent of their imports by joint agreement from the former licensing system which had directly restricted them to fixed quantities but today this proportion has fallen to 46 combines Law. Since Trade unionists As Consu mers have a great stake in the efficient administration of the combines investigation act it Rutay be Well to recall Here one paragraph from the concluding chapter of or. Macdonald s re port. He wrote if the present situation were held to be exempt from the provisions of the com Bines investigation act such exemption would have to be upon the principle that so Long As Ion members Are motivated Byj desire to protect their wages they May Combine to dictate the prices other conditions of Sale of their employers goods and to forbid such employers upon pain of a stoppage of work to enter into Price Competition with each other. The implications of admitting such a principle Are obvious. The situation created for suppliers acting in Good Faith would be intolerable and any who were disposed to seek Means to in combines investigation would have a new expedient at their disposal. All in All the effect would tend to be subversive of the anti combines Legisla Tion in Impi Tant in View of the unprecedented character of this Case few surely would have desired a prosecution the is Cut there is prosecution per cent in the Case of Britain while France has returned to a but or Macdonald s clearly Complete licensing in an Effort to reduce imports by 50 per cent. A worded stands and in the hopeful movement toward Freer and unlicensed Trade has Servos As a further buttress been reversed. Of the act. In Short the deficit countries Are desperately seeking a Trade balance mainly by the negative method of reducing in school Bell ports rather than by the positive method of increasing exports and the total volume of Trade must shrink As a result at the very moment when an increase is most needed. He who dines with the Devil Manv of the causes of this failure to make Good the full plan the Bretton Woods agreements and All the other Hope Ful projects of the postwar years Are Well known but experts combines investigation this month May seem just an other september that is if sep tember on the Prairies can Ever Drift into a passing pattern. Real objectives of the Geneva trading agreements of u the a nose. Date of All our year for now the schools open again. The greatest of the Council of the organization for european co operation adventure in life is underway have lately isolated a Factor not generally understood and yet there is a cheer in the heart vital to an understanding of this problem. Their significant for every Pupil that passes report finds that the Loose credit policy of leading european swinging the old school bag or eternal inflation have played a Large the strapped in books., Ondov in British Industry but most of All there is a smile i Moscow welcomes tax agreement1 with Ontario Federal policy vindicated by s. M. 0 Ottawa nothing in the past discordant decade of fiscal relations Between the Federal i government and the province of Ontario could have foreshadowed the unexpected agreement signed Here last Friday evening by Premier Frost and the minister of finance or. Abbott. From the Ito allow for a further five years 1957 a deduction from its up to five per cent of the Federal tax to first Federal provincial ence in 1941 Down to the last one personal income Choice of the one year option per mits More rapid reflection of up Ward and downward changes in National economic conditions. If the agreement is not renegotiated in 1957, Ontario and the other agreeing provinces May re enter the lax Fields on favourable terms. The Federal government agrees in these relations have been marred by personal animosities Mutual distrust and a Good Alk about provincial Deal of misleading centralization and rights. Premier Frost s restrained announcement of the agreement and the cordiality of the Brief negotiations preceding it Are in Sharp contrast to the of Premier Hepburn in 1941 and Premier Drew in 1946. The immediate gain for on Tario will be an increase in her continue to allow tax credits for provincial succession duties up to 50 per cent. And to allow a deductible provincial corporation income lax of up to seven per cent of taxable income on operations within the province. Remarkable Success in his announcement of the agreement Premier Frost states that it emphasizes Ontario s remarkable Success in collecting provincial revenues this year irom its own sources about s25 millions the most pal the past Nve he Pable reason for her finally de might Nave Sak that item. Riding to join in the he remarkable Success the contract is virtually Idenie or past agreements with eight Cal to those signed during signing provinces of past few months by the Western Ontario s own experience with the and maritime provinces ail of anime agreements. He refers to which have had agreements with a numb i of changes and con the Federal government Contin Cessions made by Ottawa since rally since 1942. Ontario first walked at the con fers exclusive control of the per tractor implying very strongly Sonal income and corporation these changes vindicated Fields in return for an adjusted Central province s refusal to sign annual payment for five years. The payment will be approximate the 1947-52 agreement and their objections to the formula pro y millions this year. Unlike posed for 3.950.57 last december risk of strikes states and the resulting int part in damaging their trading positions while such countries As Western Germany and Belgium which have pursued a British unions claims by t. W. K. J the other provinces however on. Tario retains the right to collect her own inheritance taxes with Ottawa permitting a tax credit of up to one half the Federal rate have cell Cal raced from the for duties paid in the province. Federal government not by the the stage is now set for a the Between Trade which trembles to a prayer for these funny Little Folk who Are anal of Etron tight credit policy against inflation have greatly improved set Tang out for the first time. It unions and employers in their Trade balances. This no doubt was inevitable. A country like Britain which of Weir is the first momentous turning of no wonder up and follows an inflationary policy puts excessive spending Power the land mothers stand into the hands of the people who therefore demand More goods Jiong time at the door watching for themselves and Are left with less to Export. And As the the Small Resolute figure even if it were possible any creases that would Cost ral squeezing of profits million a year Are at stake. The Sake of wages would be demanded As disastrous for the pro Bein e London economist remarks it is no answer to say that Britain ing has suffered not much More inflation so far As Price rises indicate it than the United states because a Given degree of inflation can Hurt a country in Britain s impoverished Posi Tion much More than a country in the Rich position of the United states. Of groups of miners shipbuilders and engineers most powerful carious British Economy As a. And along the country Road. The babies which set out for the first time this september to school will never return. The outside world has Laid its hand upon their shoulders. The claims for More pay have been prepared since the budget last March and in most cases the As the Reec report indicates a determined attack on the this is the Way of life. Nothing fiscal causes of inflation within Europe and its effect on Trade we could do can change the fact balances must be a starting Point in any attack on the larger although it might the form. That problem afflicting the Atlantic Community. The debtor nations Lis Why schools Are set up so that in International Trade must behave in the manner required of debtors by living within their Means. A but this will not solve the problem of course unless the creditor nations mainly the United states behave like credit ors import abundantly and thus allow their debtors to earn their Way and pay their debts. Instead the United states the world s great creditor is still exporting far More than it imports and its favourable balance is basically the measure of Europe s Dollar shortage. It has been covered up to now in sofar As it. Has been covered by generous United states gifts Loans and military expenditures in Europe. They have not prevented an Over All deficit and perhaps because it could rely on these subsidies Europe has not taken adequate Steps to bring its accounts into real balance. When the unbalance be comes dangerous Europe resorts to the Blunt axe of import cuts which impoverish All the trading partners. The vicious Circle has run a Long and impoverishing course but perhaps this experience was necessary to bring the Community on both sides of the Ocean to a realization of its True dilemma and the impossibility of meeting it by the negative methods of Trade restriction now being followed in so Many countries. The real question today is whether this lesson has late been fully Learned whether the nations Are ready at last to my Zimmerman retained through return to the positive methods accepted principle but so newspaper years a feeling for Sharp risk in prices. Because in Fla lion and h set taxation have Retreat that is Why the Tuc is now pointing realistically to the country s economic difficulties and the need to restrain costs and improve productivity. Except in the few unions where communist influence is Strong there is Little doubt that the official Lead ers would prefer to accept a Small Rise 5 per cent or even less so sharply reduced other than plunge the country of saving Large profits kept in the of being distributed As dividends Are essential to the finance of British vate turned it Down Flat. This is the usual Prei Imin i Ary. The real negotiations Are now beginning. J formalities Are Complete that is-55 to say the unions Nave put if they were paid out Case and the employers Nalion is wages the pressure of inflated industries As Well As by Sharpb increased. Political fact the employers will therefore on thins about these to put up a Strong re standing for the tasks ahead. Is contain the Mons to wage claims. This is is a heritage of race we Are seek not what they Are asking for. Truc Hoth for private Industry to hand on to them a Heri that Ralic the Wase for the nationalized Corpora of the industries concerned . But resistance is most in Over 20 per cent the to mean that any increase has warned the Trade unions wages is prevented. The Cost a jump in costs on this living in Britain has continued would make Many British goods Ito since the Prev uncompetitive in world Roand of wage increases tags which in spite of our weak Nesses and our mistakes has in it a grandeur and a Grace which we would Fain retain. These have in them a source strength for the future and a Promise of new Heights to be attained. All this however does not lift the Shadow or. The hearts those who watch the Small Folk take up the Long Trail. May the Way be pleasant to their Little feet. Zimmerman memorial there is a sense of the fitting behind the scholarship presented the principal Union last Winter. To take this As a the general Council of the trades Suimui client Eason for More Union is bad economics. But in this we Arning. They pass it on -1l is a season that the individual unions in their re Sal Isles arbitrators and Public port to the annual Congress which is taking place this this is Jun started in the recent to this extent the Union leaders Casc of the Wago councils. The Jarc counselling moderation asked that pay in widely violated in practice after the War. The meaning Back of the flow of observing the debate on Trade now under Way in the uni events which each Day Roll Ted states the obvious failure of restriction in Europe and through a newspaper office. He the greater crisis which the present downward course could produce in due time the economist thinks that there is prob ably a greater Chance now than at any time since the Confer ence at Bretton Woods that the baffling problems of International Trade payments investment within the free world will be considered and dealt with jointly by the whole Western a Chance greatly improved by the Assurance that an internationalist will be the next president of the United states however the autumn election turns out. Whether this Chance will be grasped while there is yet time to halt the Vici Ous Circle before it produces its final results the next year should show. May easily have forgotten his de Gree or worn its honors lightly but he was never deaf to Tho impulse of great thoughts which May have blossomed for him in his undergraduate Days. Then he found Delight in the drama and gave what he could of his strength and gifts and time to the tiny Plant which he found growing in his town. But he did More for it than cheer Amateur efforts. He brought to it no Brash doubted that commissioner Mac exhibitionism but a chastening Donald s investigation and report knowledge of that great Art s Long Clear warning stantly As in the it is probable that the decision history of the act. Quite Clear of the Federal government the government did not hold to prosecute in the Case of thefts hand because it had any Rea Canadian bakery workers Union local number 1, Winnipeg will give Rise to considerable Contro Versy. Or. Garson s statement on the matter is not too satisfying since it May appear to attach a dangerous importance to pleas such As inadvertence or Lack of realization that particular acts contravened the combines Law which have frequently been rejected in cases involving other inter ests. It May also be argued that in a Case involving new ground successful prosecution even though it involved no penalties would at the. Least have served the useful purpose of establish ing the meaning and scope of certain sections beyond All ques Tion. Nevertheless it can hardly be son to fear a court s verdict. The Case made out by or. Macdon Aid was Strong enough to carry conviction with reasonable men and due Nolice has now been served that a Union no less than a group of industrialists May run foul of the combines administration and invite unfortunate con sequences for itself by interfering with the Public right to free Price Competition. It is unlikely that any Union will again be misled into the mistaken View that the rights guaranteed by Section 4 of the act covering combinations of workmen or employees for their own reasonable Protection As such workmen or employees carry with them immunity in the execution policies which circumvent the purposes of the history. Witness the Hundred vol Umes Given from his shelves and by his wish to the University Library. The Zimmerman scholarship will be awarded to the fourth year arts student obtaining the High est standing in the drama course and a general average of at least 67 per cent. The scholarship car Ries a Money value. It carries also through its name the gentle Mem Jory of a. Person who loved Good writing. Restraint to their followers. Warning needed the employers needed warn ing. Faced with increasing Ger Man and japanese Competition for foreign Trade they Are Well aware that Many British prices will have to move Down not up if markets Are to be held. More Over even in the Domestic mar Ket Many firms Are far from All its weaknesses or. Butler s tighter credit policy has combined with the textile slump to put some restraint on con Sumer buying. Indiscriminate Price increases to pay higher wages Are therefore impossible. The unions often seek to just Ify their claims by asserting that higher wages can be paid out of profits without raising prices. For Many firms this is untrue. And although on paper the prof its of the More successful firms Are still very Are rarely More than is meeting heavy taxation to match the Cost of replacing and modernizing capital equip ment at inflated prices. Creases proposed for workers in into the disaster of a major strike. But the attitude of the Union officials is not decisive. They will feel bound to play the accepted game and try to Bluff the employers into granting More than 5 per cent. After years of inflation and labor Scarcity the unions Are used to having the whip hand. How will they react if at last this situation is changed if the employers stand firm and the unions Bluff is called most would prefer to climb Down but some May feel themselves compelled to Call strikes. For the next few months this May be the most critical Issue that not Only Britain but the whole free world must anxiously watch. By or. Abbott revised in Janu it s h o u 1 d be noted How Ever that most of these changes by withdrawing from the corpor ate income tax Field the province achieves a two per cent reduce intransigence of successive on Tario and Quebec administrations but through the patient of Tion in corporate taxes from 54 Worls of the Western and Mari to 52 per cent and eliminates governments. That no Spe special levies on capital and p Ace Cial concessions have been wrung of business. In addition to the Federal government for 5117 millions for these Fields Ontario is indicated by the fact Ontario will receive her annual that or. Abbott s revised offer statutory subsidy payable to Allnatt january would have paid the provinces since confederation of province. In 1952-53 on the one 54.2 millions. Premier Frost option millions. The mates succession duty receipts final including on this year at s1g millions Mak oxen a accession duties and ing a total sum of statutory subsidy involves under the agreement. Ontario s i minimum guaranteed annual pay ment will be s101.s millions. One year option approximately the same sum. It will not to possible to calculate accurately the net Cost of the agreement to the Federal Treasury after the end of like the other signing Provin the current fiscal year. Finance Ces Ontario has chosen the one Jdc Parment negotiators say it year option As a basis for com Jean hardly be less than 550 Mil putting the Federal payments Lions and probably not More than these payments Are calculated on 1575 millions this year which is a complicated equation of Chang the initiative after the Jan is in Gross National product per uary Federal offer came not from capita and provincial population Ottawa but from the Ontario from the base year 194s. Prov government. And which is As inces were offered the option of Good a reason As any for or. A measuring these changes either Bolt s trenchant comment Friday on the one year immediately pre-1 evening that " special Effort ceding each year of payment or would be made to persuade que on the preceding two to join in the agreements. Commonwealth parliamentary association Ottawa Here Are some an Swers to questions about the Commonwealth parliament the Ottawa conference by c. A. B. The retail trades should be association which May Eli considered in the Light of confusion when Butler s Appeal for restraint. On meetings open september 8 in reconsideration the Independent members of the councils have continued to recommend the in Tho answers were Given by the the parliament building Ottawa. Creases the government is there fore Likely to give Way and the employers vill have to pay up. A is already another in j. Portent precedent. The farm ers have agreed to give their workers a Rise of 5 per cent in the minimum wage. Something on this scale May Well become Secretary general of the association sir Howard d Enville . Who initiated the idea 41 years ago. Why for example Are the uni Ted states and the Republic of Ireland members of this Commonwealth association sending delegates because they were originally members of the Empire no resolutions general. It would mean a Rise of from which they derived their about a Dollar a week for background. Industrial worker. Though it will be damaging to the Economy this is the minimum increase that is Likely. The question is whether it will satisfy the Trade unions. In Many do the deliberations of the Commonwealth parliamentary association directly affect the policies of governments no be cases it would mean accepting cause the association does not from the employers Only resolutions merely Exchange one Quarter of what is being information among the Parlia Mandod. Such a Retreat would be a painful blow to the prestige of the Trade Union leaders in the eyes of their followers. But the ground is being prepared for the changing neighbors Hon. L. B. Pearson speaking at Houston Texas today s scripture they profess that they know god but. In works they deny him being abominable and disobedient and unto every Good work reprobate Titus birthdays Rev. Emanuel Hale Mcdaniels Winnipeg born Atlanta ga., september 2, 1882. The exciting growth and development of Canada in re cent years has made the people of this country the . More conscious of us than before or should i say conscious of us in a different Way. Previously can Ada was a land of fishing and Hunting Mouri ties and old Quebec where you got Loc. More for your Dollar. Now it is the St. Lawrence waterway Iron Ore and industries budgetary surpluses and soldiers in Korea and Europe and a place this is hardly to be believed where Gen Erous shopkeepers put cards in the windows saying ". Money accepted Here without these changes in our Stalus and our stature have added to the importance and complexity of our relationships with you but have not interfered with their Good neighbourly character. Ment Arians. That s because both members of governments and their oppositions attend. But in directly the reports made to their various National branches assist All parliamentarians in assessing Domestic and foreign policies. Is the Commonwealth parliamentary association growing yes vigorously. Since the last conference in new zealand Many new segments of the common wealth have become members. It now numbers fifty branches some 110 officers members of the Central Council and delegates will attend the Canadian conference the sessions will be closed in order to permit All members to speak their minds freely without the temptation to address Galler ies. But full reports of the ses Council for 1s51 is Hon. Harold e. Holt . A minister of the australian government Sions will be Given out after a vice chairman is Hon. Sir John wards. The official Agenda in Iko Delawala minister of the gov clues such topics As and Leader of the Ceylon and financial relations migration International affairs and defence. Will the question of the welfare state be discussed Well it has been impossible to keep it out of past discussions. What about Russia s accusations of germ warfare it is pos sible especially with . Dele ates present. Will South Africa s racial prob Lem be discussed anyone can bring up any Domestic or Exter Nal affairs problem. Is there any Central directing body yes the general Council established in 1949 As a kind of Board of directors with matters affecting All the commonwealths. Senator Arthur Roe Buck of Canada was the first chairman. Chairman of 1he general House of representatives. Canada s Federal member of the Council is or. L. Rene Beaudoin qc., , Deputy speaker of the Canadian House of commons and for the provinces Daniel Johnson ., m.l.a., Quebec. Australia new zealand Union of South Africa India Pakistan Ceylon Southern Rhodesia Northern Rhodesia and Kenya the Gold coast Nigeria and Bia Bermuda the Bahamas and Mauritius West indies British. Guiana and British Honduras Singapore and the federation of Malaya Are All represented this year on the general Council. The United states and the Republic of Ireland Are not Council members. Tremendous growth from the Goiden books from the of Man by Charles childhood alone is glad. With it time flees in constant mimes and Bright festivities. It like the Ever restless Butterfly or seeks or settles on some Flower Joy. Youth chases pleasure but Oft Start eth pain and love youth s Birthright Oft is love in vain while manhood follows wealth or woos ambition Liat Are but courted cares and with transition insensible he enters upon age thence gliding like a. Spectre from life s stage. E in through the door of do Lage. There has been a tremendous growth of democracy among the commonwealths of late years. Examples Are India Ceylon West Africa the Gold coast and Nigeria some fully self governing others advancing rapidly toward that goal. The general Council maintains a permanent staff. It sends out reports of the conference and an extremely informative quarterly report on Progress in All the various nations. Its objective is the diffusion of information throughout the Commonwealth especially on such vital subjects As economic and International relations and the advances of parliamentary govern ment presenting views of both the governments and their of positions ;