Winnipeg Free Press

Winnipeg Free Press (Newspaper) - August 10, 1963, Winnipeg, Manitoba Freedom of Trade Liberty of Relief in Equality of civil rights press published except sunday by Winnipeg free press company limited 300 Carton Street Winnipeg Manitoba authorized class matter by the Post office department Ottana and for payment of postage in Cash John Shane Mackay r i Awn executive Piibe her and vice president a 5 Western Peter Mclintock Winnipeg saturday August the Road to Wall Street or. Pearson s argument that canadians Are suppliers of Exchange to the United states not removers of Exchange from the United was the starting Point of his successful Case against the application of a proposed american capital Export tax to Canada. But have or. Pearson and his government fully realized that the same facts must be the starting Point of Canadian policy also when or. Pearson says Canada does not Drain but fat tens the Exchange reserves of the United states he Means that our annual Trade deficit in the american Market is larger than our borrowings there. Since the borrowings do not fully cover the deficit we finance the remaining bal Ance out of our Trade surpluses overseas. The dollars thus earned All end up in our neighbor s till. Suddenly aware that the Canadian Goose though Small lays Golden eggs the United states decided not to starve it. In Canada however understanding of the facts has been much slower and they do not seem to have fully penetrated the mind of the government even yet. It is disturbing for instance to Rea d in the news Dis patches that or. Gordon smiled with satisfaction As he announced that canadians would be allowed to borrow in the United states without serious hindrance and that interest rates would not have to be raised Here. Both statements Are dubious. Clearly the United states intends to limit its capital outflow by one Means or an other even to Canada if that proves necessary. And a cur rent Rise in Short term american interest rates if maintained for Long can hardly fail to push Canadian rates upward though the Bank of Canada is trying to push them Down by buying government Bonds. Whether or. Gordon s predictions prove to be right or wrong his attitude of satisfaction about the ease of borrow ing in the United states requires further explanation. As or. Pearson says our Trade deficit in the United states is annually increasing our american debt and the Cost of interest on that debt of itself increases the deficit. Understandably or. Gordon is relieved because the borrow Ings needed to cover the deficit will remain available but this is Only a Short run makeshift which if misused must Only Worsen the Basic problem. Will the Canadian govern ment misuse the makeshift or attempt within its constitutional Powers to grapple with the problem while oceans of confusing Printer s Ink have been spilled to explain in technical terms what happened to Canada when president Kennedy exempted it from his proposed tax our True position can be put accurately in Sim ple Layman s language. Canada lacks sufficient capital to develop its resources. Therefore it must borrow capital from other nations. The vital question is How the foreign capital is spent. Up to now much of it has been spent for the wrong not to build productive self supporting industries but to finance social investment or merely to pay for imported consumer goods. Foreign debt thus contracted provides no Means of paying the interest on it or of repaying the capital sum later on. In an economic sense it represents nothing but dead horses. Recent events should have persuaded All sensible canadians that this kind of borrowing cannot continue much longer without inviting the gravest consequences. Either our whole financial and economic Structure will be endangered if the United states feels compelled to reduce its lending even marginally or if the lending for non productive Pur poses is maintained on anything like the present scale its costs will become too heavy for Canada to carry. In any Case As happened in the Exchange crisis of 1962 we shall be utterly dependent on the policy or perhaps it would be More accurate to say the Charity of our neighbor. The first step away from this ultimate mend Cancy and. Foreign domination is quite Plain but is not mentioned by or. Gordon. It is to curb All our american borrowings for non productive while continuing them for productive Pur poses. This Means that All our governments Federal Provin Cial and municipal must borrow for non productive Pur poses in Canada and Only under extreme necessity in the United states. Since the capital in Canada is limited All governments must restrain their total borrowings. To do that they must balance their budgets instead of paying their current Bills out of debt As the Federal government has been doing for seven years. Though the Federal government has no Power to control the borrowings of Junior governments at least or. Gordon should be encouraging their restraint and setting an example for them in his own policies. As a result the Junior governments apparently imag Ine that they can botox As they please in Canada and if Money is lacking Here can get it in Wall Street some of them also imagine that they can raid the depleted Federal Treasury even if they push the National government deeper into debt. Such irresponsibility at All Levels of government cannot on much longer without inviting disaster. The Road to Wall Street no doubt is paved with Good intentions but or. Gordon As he follows it has nothing to smile about. Third Section pages 29 46 Highway 17 25 Miles East of Kenora Fred d. Kuzyna a quiet time of reckoning at Ottawa after bursts of creative Energy nations and Cul Tures says professor Toynbee must pause to rebuild their strength for the next Advance so it is with governments Anc individual men though their period of withdrawal and meditation is usually too Short. But with parliament in recess or. Pearson and his ministers have at least a few weeks a sort of Busman s Holiday to think Over their successes and failures before they face the hard decisions of autumn. The successes of the Pear son government Are substantial and would be clearer to the Public if they had not been obscured by certain failures. In the first place it is remarkable that a minority government not Only has sur Vived at All but seems sure of the Busman s Holiday by Bruce Hutchison Many things went wrong but one was outstanding. In the construction of the budget the Able experts of the civil service were ignored the wrong experts were consulted and the Cabinet was Given Only a few hours to consider their advice before accepting it. Even another Day s consideration would have avoided the worst tax blunders and or. Gordon s humiliating Retreat. This is no Way to make a budget As or. Pearson has tacitly admitted in Public Al ready. Some respects stronger in others weaker. The next test of or. Pear son s leadership will be his capacity to reorganize the Cabinet in the Light of this practical Ana at times painful experience. A Cabinet shuffle however is Only part of the greater test now facing him. Can he establish full Public Confidence in the government As he has not done yet nothing else is half Asim portent to him his. Party and nation. For without Public Confidence no policy can succeed no great question can be settled and no Progress made in the gravest situation of modern times. The Canadian people As a Wishful thinking or. Douglas Harkness ii still talking in terms of a con leadership convention. He made reference to it again the other Day in Calgary. Such a convention he May be called for Early in 1964. Or. Harkness is not the Only disgruntled conservative who would like to see such a convention next year. It May be taken for granted that other rebels in the party would agree with him. At the moment however these would appear to be a distinct minority mostly in Ontario with or. Harkness himself the Lone Western rebel of note. Under such circumstances talk of an Early leadership convention must come under the category of Wishful think ing. Or. Diefenbaker May not be or. Big within the party As he was a year or two ago but he still commands a sufficient following to thwart any move to unseat him. His stated ambition is to become again prime minister. If he retains his health he is unlikely to step Down or to be forced Down until after he has made this attempt. Whether he succeeds in this ambition of course is another question. Remembered words from so Well go no More a roving by George Gordon lord Byron so Well go no More a roving so late into the night though the. Heart be still As Loving and the Moon be still As Bright. For the sword outwear its Sheath and the soul wears out the breast and the heart must pause to breathe and love itself have rest. Today s scripture ask and it shall be Given you seek and be shall find Knock and it shall be opened unto you Matt 7 7. Survival for some time he will obviously wish the gov come. In the second it method As Well As the to succeed. They a restored Normal relations of the budget next foolish enough to suppose our friends abroad and More than that is they can escape its Fai years of Barren quarrel. In a football Captain following six years o third some hopeful has tried an oratory and sys have been launched and line up in the inaction when the unsuspected Talent of the game has resounded with impress above All the Public sees that the government wants to Strong and weak Points and must switch his footsteps but no one came Down from the attic the people things done and this in perhaps with at last that they no is a refreshing of some new the politicians Are in what would have been the second Quarter trouble and cannot cure Side red a splendid Start in without serious i Conven Mal times has been marred by the government s excessive expectations especially that frail election gimmick the sixty Days of decision and by the unnecessary disaster of the budget. What or. Pearson must be asking himself in these Days of relative Leisure is what went much has happened in ii last two or three month that we tend to forget that the Jame is very Young yet hardly More than a preliminary warm up but it has Given the Captain a True gauge o his resources. The team o last Spring s training Camp looks quite different today to everybody. They know also that none o the vital decisions has been made that the Economy is no growing As promised that unemployment is not shrinking that their National budget the Core and Index of All these problems is still in wild Dis order and that As or. Gordor says this erratic navigation finally land them on the National Indian breaking Down in a City of Winnipeg s slogan the Council people Are eager to fee conventions Are for its convention in the government place. But one convention to be held at the is equal lacking it they can not feel Confidence in them residential school on but its working again that Lack of self Day thursday and Friday is not concerned with not the confusion next week will differ and ideals alone. It politics or the clash of per y from the usual sort of with such hard is the real measure Nual get together. It is How to earn a living in of the nation s crisis an Inird annual convention of society How Pearson happens to be the National Indian Council maximum use out of Man now in a position to topics listed on the How to make with the crisis. Agenda Are of intense use of available is a crushing respond Ern to Canada s almost Indian people. The National Indian is no casual club opportunities and so on. The Council which admits no Rion Viridian to its membership will open All its but he has Large assets too larger than he May suppose. The Public Well aware of his mistakes be Ives in his motives and Char f people of similar the Public. It is issuing has no doubts about his grounds. It is a a general invitation and realizes instinct group with a clearly interested to that among All our purpose. Its objective to panel discussions on ministers his Complete Rove the position and and the pow wow of personal ambition f in of traditional unique. And to preserve their to be performed by this represents so to my but that is skilled group of a Rich estate in escrow diplomatic Way of putting will Likely form part treasure of Goodwill which. He Council s objective Indian dance corps now Pearson can unlock if he Lainer language is to assembled for the the to learn from or the Indian people celebrations in 1967. Mistakes and the courage Ower and rightful place next week repair them. Be Canadian Community. It is no easy goal to an Opportunity to watch these talented dancers. Worst possible mistake would be to overestimate his be Council has pledged itself. Tie Walls of resentment and misunderstanding that important the Indian Council is offering Manitoban both Indian but of private Friendship to underestimate the Public s Good sense or to the White from Indian an rigid and High they get to know each Een Long in building. Indian Council can Rith the leadership the real that k. Pattle Carman in boasts its head is the establishment l of born England enable Calgary lawyer Friendly relations 10, 1876. Mrs. Of m. It ill i a in indians and Whites St. James born achievements cannot help enough White people co. Ire e Large. To its August 11, 1880. Imagine that any Basic prob j Lem can be solved by the poll i cies introduced so far. Indeed the Only permanent usefulness of the recent parliamentary session was to strip off the drops Cal flesh of electoral politics and reveal the Skeleton of the nation s actual Anatomy. All the work of reshaping it has yet to be started. Summer Reading it happens every year by Tom Siu Deri summer writes David Boroff in a recent Issue of the new York times Book review Section tend to split off into two Camps those who View the summer As a time to vacate serious con Cerns Rand the grave mined ones who look upon that sea son As the occasion for repair ing intellectual omissions those who come under the second of these categories he suggests plan then summer Reading purposefully. Now is the they say to finish Proust s remembrance of things past or grapple with Camus or Dostoevsky or Mel his division of summer read ers into these two Camps May be More arbitrary than a but it does make a Point. For most people sum Mer Reading is escape Reading but there Are always a Doughty few who want to make it something More than that. Sometimes they even succeed. But in my experience those who do so Are not typical. More typical is a Friend of mine who starts out each sum Mer As a purposeful Reader but never quite manages to keep it up. Each june As a matter of personal discipline and a sort of act of literary piety he maps out a summer Reading schedule for himself of books he feels he should have read but has t. He assembles these books and takes them with him to his cottage at the Ake and he starts Reading them with great firmness of purpose. But somewhere Between the end of june and the Middle of july his firmness of purpose wavers. By the end of july it has All but collapsed. And by Early August he is quite will ing to give up Isak Dinesen for Erie Stanley Gardner and Soren Kierkegaard for Mickey spillars the trouble with these foreign writers he concludes is that they never read Well in translation by now a great Load is off his mind. Lie has paid his Hom age to purposeful Reading and All its demands Are behind he enjoys the rest of his Holiday immensely. And is not bothered by books he feels he should have read and has t for another ten months. Then he has the same routine to go through All Over again As an other summer approaches and he gives himself to thoughts of purposeful Reading once More. Since his periods of purposeful Reading Are Well spaced in this Way and of Short duration he obviously has no difficulty in finding a suitable list of books for his planned summer Reading each year. My Friend i suspect is typical of most purposeful sum Mer readers. But he is not typical of summer readers As a whole. These fall in the first of or. Boroff s two categories. Summer Reading for them is escape Reading Reading that will not too strongly tax the mind or the imagination. It May mean thumbing through old issues of popular Maga Zines browsing through Moth eaten copies of novels whose authors have Long since been forgotten or sifting through cheap paperbacks whose sub stance is As inconsequential As their appearance. But the Ideal Type of sum Mer Reading is neither Alles Capist nor All serious. It is at its most pleasant when we let it be haphazard. It May Range All the Way from Tolstoy to Grace Metalios from William Faulkner to Harold Robbins with the inevitable quo i of murder mysteries and Detec Tive stories thrown in. As Long As in the process we realize How great the Gap is Between Metalios and Tolstoy be tween Robbins and Faulkner the experience can do us no harm and May do us much Good., As third anniversary approaches cypriots count their blessings Nicosia Cyprus the third anniversary of the Independence of the Republic of Cyprus the mile Mediterranean Square Island which is at present the Small est component of the British Commonwealth Falls on August 15, in circumstances of steadily expanding Prosperity and falling unemployment. But it will not be observed on the due Date by cypriots. A few Days ago president Makarios s greek dominated Council of ministers decreed that Independence Day shall be deserved in future on oct Ober 1. No official reason has been Given for this decision but it is generally accepted that it is because August 15 is the Peak of the Long hot summer and a time when the Holiday season is in full swing with a general Drift away. From the torrid heat of the Plains to the Hills and the sea. In August 1960, when the last governor sir Hugh foot proclaimed the Republic the temperature was 115 degrees the highest recorded in the past five years. In such heat it is difficult to maintain a festive spirit even if cypriots were disposed to make much of their Independence anniversaries. Independence came to Cyprus at the end of the Oka rebellion As something of an anti Climax and after a generation of ceaseless agitation by the majority four to one for end Sis greek Union with Greece and by the Turk ish minority for Maksim parti it May take another generation for a cypriot National Pride to emerge. The More sober minded by Herman Cault cypriots however Are inclined to count their Blessing As the Republic nears its third birthday. Those Are not in considerable. They have balanced budget a steady re turn flow of expatriate capital a modest expansion of Trade a growing tourist Industry s wealth of foreign Good Wil expressed in technical assist Ance and financial Aid for development and a steady de Cline in unemployment. Over the past three years the government has been Able to achieve budget surplus totalling almost million and even to skim from budget revenues a total of Over million to boost development funds. The financial position would be even More satisfactory but for difficulties Over the col Lection of income tax because of a turkish refusal to vote new tax Laws in 1960. Tax evasion As a consequence has been assessed at about 40 per cent. Emigration which was run Ning at about per month in 1960, is now about 200 monthly of no mean significance among a people traditionally emigration minded with Over cypriots scattered All Over Europe Africa America and Australia. Trade expansion is not easy for an Island which lives largely on agricultural exports in direct Competition with most of the surrounding countries but there has been a 10 per cent increase in exports. Improved production techniques stimulated by Over seas research and technical advice Are expected to boost output substantially in the next few years. Because Cyprus is deficient in raw materials Industrial expansion prospects except for the Home Market Are limited. The government has sought to stimulate tourism with promising results. This year s re turns show 100 per cent in crease in tourists Over 1960 and exceed the Peak pre emergency years. Improve ments and extensions to hotels and the projected construction of a Nicosia Hilton and a Chain of hotels financed by Europa hotels of West Germany will help this along. Offers of technical assist Ance have been freely Forth coming to help towards the realization of the ambitious million five year develop ment plan which is now get Ting under Way. French and German experts Are assisting in the search for water a vital matter for an Island with a sparse and unpredictable rainfall. A team of Fao specialists is working on agr cub Tural research and develop ment and american Money and expertise have helped in the establishment of a Central issuing Bank and a develop ment corporation which will provide the investment outlet for surplus private Money. A British consortium is financing a series of dams which will improve the water situation in the Island s Prin Cipal wine producing areas by harnessing watershed part of of the the vast Tro odos mountains. An american com Pany is prospecting for Oil and foreign geological experts Are conducting a search for new Mineral resources. The Copper worked deposits at principally present by the fallout from toting Doe in t bother it but if to vote against Terban treaty tha political fallout next year could kill american owned Cyprus mines corporation Are Good for Only about another five years. Above All the world Bank Las loaned the Republic million to which Britain has added million to finance an electric Power scheme which will meet All foreseeable future demand. Already Britain has Given several million pounds in free Grants in and the . . Organization has just granted a million loan Tor development of water and Timber and building of roads. Progress though it May not have been spectacular has steadily gained momentum and the future Outlook is recanted As encouraging and fully justifying the Confidence which the majority of cypriots have in the leadership of president Confidence which is expected to be reaffirmed when the second presidential election is held next july observer Farej Ca service copyright ;