Winnipeg Free Press

Winnipeg Free Press (Newspaper) - November 3, 1969, Winnipeg, Manitoba "m3 Winnipeg free press monday november 3, 1969 finance statistics Dampen Hopes of squeeze being eased _ j in non. Hon and a by Jack Lefler new. York a business statistics Are flying and in the face of economists and United states government officials who say that the Economy is slowing Down. Believers in the Efficacy of government monetary and. Fis Cal restraints have been jolted by the upward surge of the gov , of leading econ omy indicators . The generally accepted idea that the overheated inflation i fuelled Economy was beginning to Cool had been reinforced by a decline of 0.5 per cent in the leading indicator Index in a gust. But the com Merce department reported this week the. Index spurted 1.3 per cent. This to some extent Damp ened Hopes Federal re serve Board soon would ease the tight Money policy it imposed almost a year again an Effort to curb the inflationary spiral. The leading indicators Are highly regarded As eco nomic soothsayers. Five of the indicators advanced while three declined. The Index Rose to 153.6 per cent of the 1963 average from--150.6 per cent in August. Indicators which Rose were the average hourly work of manufacturing workers new durable goods orders orders for Plant ind equipment Industrial materials prices prices of 500 common stocks. On the decline were average weekly for state unemployment new building permits and the ratio of Price to unit labor Cost in manufacturing. Government economists said the robust action of the Indica. Tors the govern ment s p o s ref 6 i holding firmly to its anti inflation poli cies. They said the gust had proved to be a turning and that a pre mature easing of. Restrictive policies would Send inflation Surg ing. The labor department in ported this week Sale Price Index continued to pm Steps against by Ken Smith Canadian press business editor prime minister Trudeau has started to escalate his govern ment s War against inflation. He used a top level meeting last week of business and labor leaders to March out the latest threat the possibility of using tax and Tariff changes to Back the government position if the private sector of the. Economy restraint on costs acid prices. Or. Trudeau did t elaborate but the Warnig was enough to cause some obvious unease. No matter what practical re sults the statement has among business and labor executives it of toeing. Profits Seattle a the Boe ing co. Reports it lost nearly in the third Quarter ended sept. 30 land earnings for the first nine months dropped to from in the same period last year. This years Nohe i ninth profit was listed to 85 cents compared with s3 29 a in the first three quarters of 1968 totalled so gently less than for nine months in 1969 As against for the period 19t a president reported at a regular directors meeting the big drop in earn Ings by of factors nigh interest rates pressures lower profits on government work 74 and .737 program write offs and reduction in 707 anqv727. Jetliner in or said the fourth Quarter also was expected to show a loss because of the continuance of these Adverse factors but 1970 earnings should be up Over 1969. Uiv1ncston industries limited notice to holders of common shares Purchase warrants in accordance with the fails a Merit provisions contained n the Trust indenture dated july 1-i. 967 made Between the company and the guaranty Trust company of Canada As trustee each wan rant to Purchase common shares of the company now entitles we Holder thereof on or after october 23 1969 to Purchase three times the number of common shares shown on the warrant at one third the Price pen share As. Forth at any time prior to 4.00 . Toronto time on july 15, 1977 upon surrender of the War rant and payment of the Pur Chase Price for such shares in the manner set Forth in the warrant. W. T. Barrett a Secretary treasurer Tilsonburg. Ontario 30. Shows clearly How determined the government is to break the throttle hold inflation has on the Economy because if Ottawa does turn to tax and Tariff changes they will probably have to be drastic to be effective. The theory behind using tax changes to help lick inflation1, is simple. Increasing taxes takes Money out of the hands of the con Sumer so there Are fewer Dol Lars available to buy goods and services this is supposed to re Duce demand which in turn is supposed to result in a lowering of prices and costs. Unfortunately this theory has t always worked recently. Some economists now Are arguing that to be effective As an anti inflationary measure tax. Increases would have to be Large and probably punitive. They compare it with the Bank of Canada s efforts to counter inflation by raising in Terest rates. Inflationary pres sures unabated through a series of hikes in the rates until they reached their present record Levels. And this is enough is still being debated. They also argue that the government s income tax. Sur charge really was inflationary although it was introduced in the budget As an anti inflation Ary measure. T this is because. Least those i a position to fight such As bunion members and company y went after More Money to counter the higher taxes. A similar situation has devel oped in the United states. The Chase for bigger pay cheques simply has been passed on Down the line mean ing higher costs for the con Suthe Case for Tariff changes is different but dissenting economists say could cause just As much trouble for the Canadian Economy As ineffective tax in the theory of using tar Iff changes to fight inflation is simple. If they were reduced on. A wide Range of goods Canadian building Rise at a .3.6 per cent annual rate in october. The month s Advance of 0.3 per cent lifted the Index to 113.9 per cent of the 1957-59 average per cent above a year ear Lier. _ the increase was due. Mainly to higher prices for Industrial commodities and processed foods and feeds. The Federal Home. Loan Bank Board said mortgage interest rates Rose to an average of More than eight per cent for the first time. The average rate on conventional mortgages hit 8.08 per cent compared with eight per August and 7.21 per cent 1968. Preston1 chairman of the Bank said the Rise reflected continuing pressures on financial markets and the reduced Supply of m o r t g a be a number of Price increases were announced this week. They included boosts for aluminium Sheet and plate products by Olin corp. And Kaiser aluminium and chemical corp., for major appliances by Westinghouse elec tric corp., and for Vinyl resins used in making blown plastic bottles floor tile plastic pipe and plastic film and sheeting by stauffer chemical co. A strike by 13 unions shut Down most of the operations of the giant general electric co s 280 plants in 133 cities and 33 states. The unions represent be workers. Inc appointments producers would be faced with sharply increased Competition from this would Force them to hold Down their prices because other Wise Consumers would turn to goods offered by foreign Compa Nies. A again unfortunately this could unpleasant economic repercussions. Any reductions would be uni lateral so Canadian producers manufacturers would face increased Competition domestically without a Cnance to win compensating forr eign markets. This would mean a loss of sales which. Would mean a jump in unemployment. Just in Case this balancing act in t difficult enough it s Well to Bear in such eco nomic theorizing assumes near perfect Market conditions of Competition. And according to John Ken Neth Galbraith the. B Orn economist who. Shared the spotlight at the Ottawa Busi Ness labor government meeting with or. Tru Jeau near perfect Market conditions no longer exr ican a. Macdonald c. W. Regan Industrial acceptance corporation limited announces two a Point tents in its Western division involving management responsibilities for Saskatchewan Manitoba and the Lakehead. A Macdonald regional manager business development is for the development of sales financing business through a branches in the Region. Or. Macdonald was formerly manager of the company s Halifax Branch. C. W. Regan regional manager credit and open Alollis is for the credit and operating standards of the 17 to Anches in the Region. Previously or. Regan was an inc Bianca Man Ager in Calgary. flying save time save Steps use Airport Valet parking save Money too free pickup and delivery to the Airport door. Ellice Berry pm. 774-9823 Fhi weekly Bond letter by James All Loans in the banking system declined million last week and now stand but million higher than the two months ago figure of million. The rate of increase has slowed to 2.76 per cent on an annual basis Well below the 12.4 per cent rate of growth experienced during the same period . Money Market activities last week have been under the Strong que. Sask. Montreal up place Bonaventure a huge shopping hotel and convention Centre in downtown Montreal is up for Sale for failing to pay Back taxes of the building which houses a Merchan dising Mart shopping Centre a lot exhibition Hall restaurants and cinemas was constructed at a Cost of several years ago. The property appeared in a list of properties to be sold for Back taxes owing to the City of Montreal. The building goes on the auction Block dec. 1. Year end and almost every transaction completed has taken this into account. The Banks simultaneous year end balance sheets can be distorted by Large and unexpected transfers of funds that last week. A result their Are extremely care Ful in Money management mentioned last Attiat their sales of Qutob Evsi Bills was True reflection of liquid -ass.ets. In fact they have .sold.1 bin s in Bast years during october shown Cash at then re built Bill holdings during no vember. In 1967 they ran off 599 million in october and rebuilt this by million in november in 1968 they fan off m illion Bills i october and rebuilt this by s37 v million in november. In october 1969 they have run off million Bills and it is conceivable they Wil rebuild their holdings somewhat once year end has passed yeast year for example the system ended october with an average liquid asset ratio of per cent some 26 per cent above the Tun required 13.23 per cent i Anco still bought Bills in novem year the system is ending october with Only a 7.3 per cent excess Over its actual required liquidity of 14.22 per cent and should therefore be expected to add to their Bill holding s next month. The Dominion Bureau of 1116 statistics has just published Advance information on Provin Cial government finance fiscal year ending March-31, 1970. The official estimates Wilt be re leased towards the end. Of december. The information at hand pro Vides the Opportunity for an insight into Revenue expenditure patterns on current and capital account province by province and is condensed As follows on a per capita basis. Expenditures to acts Money Market Royal securities corporation 65, Man. Sly sask. .79, Alta. T Cut health nfld.-117 . 130 . Ill 159, Man. 176, . 149. Welfare fld 81 . V64, . 41, . 39, que. Ont. 34, Man. 36, sask Alta. 47 . 47. Education fld. 162, . 143, . 149, . 205, que. 172, ont., 176, Man 152, sask. 137, Alta. 210, . 156. 47, . 21, . 2, que. 23, ont. 24, Man. Sask. 28, Alta. 30.b-.c.34. Debt charges fld. 56 . 64 que. 21, ont. Man. 21, sask. 41, Alta. 4, . Others fld. 83, . 68, ?3, . 100, que. 87, ont. 50man sask. 10. Alta. 78 . 67. 631, 536, . 575, 555, out. 542, Man. 504, sask. 487, Aita. . 520. Revenue corp tax fid. 20, . 12 . 16, 15, que 29, ont. 55, Man. 30, sask. 23, Alta. 36, . 35. Ind. Tax fld. 35, . 30, . 48, 52, que. 137, ont. Too Man. 80, sask. 71, Alta. 80, . 92. Sales tax fld. . 128, .131, 156, ont. 151, Man. 119, sask. 132, Alta. 51, . 125. So. Cost fld. 122, . 197, . 70, . 97, que. 24, ont. 65, Man. 115, sask. 101, Alta. 88, . 89. Red. Transfer fld. 196, . 173, . 144, . 144, que. 95, ont. 19, Man. 63, sask. 33 aha 36, . 7. Fld. 190, . 55, . 58, . Man. 122, 141. Alta. 273. . 191. Fld. 563, 595, . 467, que. 519, ont. 540. Man. 501, altar 562, . 539. Surplus fld. -p.e. I. . , que. Ont. Man. 25, sask.-14, Alta. .19. Pension plan fld. 34, . "47, . 11, que. 37 a Etc. 68, Man. 55, sask. 48, . 64. Fld. 34v . 43, . .14, . 3 Oue i 80, sask. 62 Alta. Wages and nfld.-87, p Al. 80, . -112 . Cue1 Man 140, sask .-98, Alta. 145, . 168. Y Canada and. Dominion sugar common 42v2 dec. _ r hotel Vancouver has three of North americas finest chefs. Three exciting restaurants. A remarkable wine cellar. And 995 great Beds. Even if you re Here on business you can t work All the time. Hotel Vancouver is a in hotel operated by of Canada free garage parking for reservations your travel registered guests agent any Hilton hotel or Hilton reservation service. In Montreal the Queen Elizabeth fact hotel and the Montreal a6rbport Hilton to ;