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PAGE 4 THURSDAY, OCTOBER, 8, 1959.

; Apparent Red Cleavage

In a despatch from Washington, U.S: State Secretary Herter is quot- ed as saying that he detects a foreign policy split between Russia and Red China—the first sign of a major ‘difference between the two powerful Communist .states—and that he was

—at-a-loss to explain this apparent

cleavage in view of Mao’s acknow- ledgment of Khruschev as head of

_ the Communist world.

Surely the difference, if it exists, is not hard to explain. The Soviet Premier, since his American tour, has been proclaiming President Eisen- hower’s-sineere-desire for peace and predicting a lessening of cold war tensions. It is American pressure, more than anything else, that has kept Red China out of the United Nations, and American. funds that have financed Chiang Kai-shek’s resistance movement in Formosa. Eisenhower, as the symbol of US. enmity, is the number one villian so far as the Chinese are concerned. Khruschev’s praise of him couldn’t help put stick in their throats.

On the Soviet side, there is the fear that China’s continued expan- sion might put Russian achieve- ments in the shade, and result in Moscow becoming subservient to Peking. The British philosopher, Bertrand Russel, evidently had this in mind when he stated, the other day, that fear of China might bring about an American-Russian _alli- ance—-“a possibility,” he hastened to add—‘“not a probability.”

It would be unwise for the free world to count on any serious Com-

’ munist division, however. Red China

and Red Russia have mutual inter- ests and ambitions that—for the present at least—-far transend their differences. We do not know what Khrushchev said in private to his Chinese hosts in Peking, but it is logical to assume that he didn’t go there to quarre! with them. What he said for propaganda purposes is another matter entirely. .

Farm Trade Increase

The United States Department of Agriculture has prepared a detailed report on Canada’s agricultural posi-

tion and problems which, while not

original, provides a convenient source -of reference. Noted, for instance, is

_the fact that our 1958 farm exports,

valued at more than a billion \dollars,

“were the highest in five years, and

11 per cent above 1957. Contributing to the expanded volume of exports were grains,, live cattle, beef and pork, fruits and vegetables. While Canadian ‘imports remained high, there were some declines particular-

_ ly in cotton, potatoes, lard and soy-

bean meal. The value of the two-way ‘trade in the United States and Can- ada in 1958 amounted to $655 mil- lion. This fikure was exceeded only in 1951.

s Canada’s exports of farm pro- ducts to the United States in 1958 were 29 per cent above 1957, while imports from the U.S. were four per cent lower. The exports in 1958 were $295 million compared with $246 million in 1957, and $245 million,

1952-56. The imports were $360 mill- '

fon in 1958 compared with $375 mill- fon in 1957, and an average of $304 million, 1952-56. The United States

’ was Canada’s largest agricultural ex-

port market.

The report states that prospects are good for a contintied high Cana- dian agricultural trade throughout 1959. A slight decline in Canadian eattle numbers ang improvement in

' the United States domestic supply

__ ‘is expected to be reflected in reduced eattle exports. Canadian exports of pork, on the other hand, are expect-

ed to rise. A rise in raw cojton im-- ports from the United States is prob- able. e

Four factors influenced the high

strong United States demand for feeder or replacement’cattle and for meats; a high income level in Can- ada, and a continued strong demand for fruits and vegetables, especially citrus fruits and winter vegetables.

The United States replaced Great Britain by a small margin as Can- ada’s best agricultural export mark- et. About 35 per cent of Canada’s 1958 farm exports went to the Unit- ed. States. Japan was the third larg- est market for Canada’s farm pro- ducts. -

Wheat and flour, amounting to

' $12 million bushels valued at $515

million, was the leading Canadian- agricultural export. Other major -ex- ports with their value in Canadian currency, were feeder and slaughter cattle and beef $104 million; barley and amtl $89 million; pork $30 mil-

lion; potatoes $10 million; and apples 1

$8 million.

Livestock and meat exports to the United States in 1958 were valu- ed at $150 million: Exports to the United States of cattle and beef con- verted to cattle totalled about 770,- 000 head in 1958, breaking all re- cords. Pork shipments last year were much larger than 1957 and amounted to 53 million pounds.

The Rand Commission

A one-man commission to invest- igate Canada’s ailing coal industry seems rather odd, but there is gen- eral approval of the appointment of the Hon. Ivan C. Rand, retired justice of the Supreme Court of Canada, to this responsible post. His qualifica- tions are many, not least .of which is the fact that he is a Maritimer, with, long experience in untangling legal and industria] problems.

We recall Mr. Rand’s appearance here many years ago, as counsel for the -C.N.R. before the Board of Transport Commissioners. His ability was outstanding then, and he has ripened with the years. If he can bring down as fine-a report on the coal industry as he produced in the famous Rand Formula which settled the big auto workers’ dispute in 1945, it will be the crowning achievement of his career. \

The welfare of the coal industry is of vital concern to Nova Scotia, and to the Maritimes generally. We have no doubt, from the concern Prime Minister Diefenbaker has ex- pressed on several occasions, that any constructive recommendations for its development will be promptly indorsed by the Federal Govern- ment. And in limiting the commis- sion to one highly competent indivi- dual, it has ensured that there will be a minimum of delay in completing the inquiry. .

EDITORAL NOTES — .

Canada’s 1959 polio cases rose by, 101 to 1,082 for the week end- ing Sept. 26, according to an Ottawa report. Deaths to that point totalled 58, including 51 in Quebec, 12 in Ontario and seven in Newfoundland. The overall total compared with only 156 cases, involving 15 deaths, at

the corresponding date last year. * 7 *

The vast sprawl of residential suburbs surrounding Montreal. City is causing concern. These 80 mun- icipalities are growing five times as fast as the city itself, and have now a population of 730,000. A high pro- portion of the suburbanites work in Montreal, and their coming and go- ing along the roads every day is

creating serious traffi¢ problems. eS 8:5

Today’s the big election battle day in Great Britain. Public opinion polls’ indicate that the Laborites led by Hugh Gaistkell have closed the gap with Prime Minister Macmillan’s Conservatives, and a neck-and-neck race is predicted. Press commenta- tors, however, are still expecting a government victory, though by a narrower margin than was predict- ed two weeks ago. :

* s *

' All the great industrial develop- ments are not taking place in Soviet Russia or the United States. For in- stance, Sweden (population 7,300,000) has just opened the largest water Power station in western Europe. It is Stornorrfors on the Ume River, 175 miles south of the Arctic Circle. Entirely underground, it boasts the most powerful hydro-electric genera- tors and turbines made anywhere. It has a tailrace tunnel_nearly. two and a half miles long, with a cross section of 4,200 square feet—the big-

of trade in 1958. They were: | gest water power tunnel in the world. {

‘Bank of Canada,

| the depositors | Smooth working of our banking

| Machinery, our Parliament stip- | ulated

LAUNCHES ANOTHER ICEBREAKER

* ee

Our Complex Money System

By Patrick Nicholson

Money is. “tight, or difficult and expensive to borrow:

To understand the reasons be- hind this shortage of money, which directly contradicts the intent of the federal government, | it is necessary to understand the complex operation of our benk- ing and monetary system. This detail is normally beyond the ken of most of us, and-is per- haps a matter of complete in- difference to you and me until— as now—it pinches.

When we read that we are suf- fering from a credit crisis, this means that -would-be_ borrowers

find it hard. if not impossible, to borrow through the normal channels. 5

The businessman who wants to |

finance expansion of his opera- tiens, the municipality which wants to build a needed exten- sion to a hospital, the tousc>-c!d- er-who wants to buy a washing machine calling for more cash than he has; all these may, und- er normal conditions, borrow the money from a bank.

SAVINGS MAKE. LOANS

The chief source of money a- vailable for borrowers in Canada is the chartered banks, namely the private - enterprise banks which operate branches in all our communities, such as the Royal the Bank of Montreal, and others.

These banks of course have assets representing the initial capital subscribed by their share-

holders, most of which is inves- |~

ted in the bank buildings and the furnishings in them. They also have reserves of undistributed profits. But this is all peanuts compared to their total opera- tion. The great pool of cash, which the banks have available to borrowers, comes from you and me, when we deposit money in our personal savings accounts.

A little more than half as big as this pool of. personal savings S the total of other monies de- posited with our banks by busi- nesses and by the wealthier cit- izens who maintain a balance in their current accounts.

It will be obvious that, when you and your neighbours each deposit money in your current accounts, or even in savings ac- counts, at your local bank, the manager carhot at once lend out all that money, because one of you might come in the next day and ask to exercise your right to withdraw your deposit. RESERVES OF CASH NEEDED

So the banks always keep a certain amount of cash immedta- tely available. This ‘is sound bank- ing practice. Further, to protect and to ensure

in the Bank Act that each chartered bank must main- tain a “cash reserve ratio”, m cash and on deposit with the Bank of Canada, totalling not less than 8 per cent of all the money deposited “with it.

In prudence a bank also in- vests some of that deposited mon- ey in very short-term securities, which can, if necessary, be con verted into cash very quickly. Such are day-to-day loans, and Treasury Bills (Government 90- day loans’, carrying a low rate of interest,

Banks like to hold substantial amounts of Government. Bonds, which have traditionally been re- garded as being “As good as gold’~and are sometimes called |}. ‘gilt-edged securities’. But re ‘cent unhappy experiences have shown the banks that hurried or ilitimed sales. even of Govern- ment Bonds can result in serious losses.

During the last five years, the banks have also invested appre- ciable sums in government-guar- anteed 20-year housing mortgag- es. Such are unattractive secur- ities for a chartered bank, and have been accepted only at ur- gent government request.

With what is left of the de posits of their clients, perhaps 40 per cent of the balance in per- sonal savings accounts and cur- rent accounts, the banks will make loans to their business clients and private individuals.

, Today, record tebosits have - been absorbed by record loans That ts the reason why money | ie “Light” - ’

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Justice delayed, is justice den- ied.

Let Child ic The Basic Facts

_|By Herman’ N. Bundesen, M. D.

MANY of you readers may have been sadly or uninformed, during

very je just didn’t talk about it, especially when children were present.

Today, attitudes are a little dif- ferent. :

While I don’t hold with some parents who discuss sex openly before their children and talk to. their youngsters as though they were adults, I do think it is the duty of a mother and fath- er to tell their youngsters a few basic facts.

WILL ASK QUESTIONS

A child’s natural curiosity about his own body will cause zim to ask various questions.

You should let him know what

. |@ myarvelous machine his body

really is, how his heart and lungs work, how his brain controls all his ‘actions, and how his food nourishes his body and-then is discarded as ynused elements. PARENTS SHOULD EXPLAIN He should »re told the names of the various parts of his body and he should be informed that there are glands inside the body as well as those opening outside. Let him know that at certain times these glands produce se- cretions inside the body which bring about changes in both his appearance and his feelings. Explanations should be given to girls even earlier than to boys, since__females mature at a younger age. | BASIC FACTS As they approach puberty, both boys and girls should be given a factual explanation of how th are going to change physically and emotionally, so they will be prepared for these changes. Tell your sons and daughters everything you think they should know. Whatever practical, I

day!

Lots of leg and

THE CAR THAT MAKES BEAUTIFUL SENSE

(Certain features Mustrated are standard tn some models, optional at extra cost on others.) _\

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Squeaks and rattles have nowhere to start in the Falcon’s single-unit construction. Critical areas on the underside are zinc-coated to prevent rusting. And front fenders are removable for easy replacement.

Don’t wish—walk in to your Ford Dealer’s. The car that makes beautiful sense is here!

the baseball club now comic in Los Angeles but once a prominent feature of the

community of Brooklyn. < was once called the Trolley Dodgers, and the present label is a con- traction. These things are- good to know.—Ottawa Citizen

Postmaster General Hamilton speaks of the Canadian postal service: “There are 50,000 of us, more or less. We are scattered from Vancouver Island to the ecast of Newfoundland and we operate from big, shiny stainless steel edifices and tiny corners in @ general store. We walk bleak letter-carrier routes in barren su- burbs, and we ride the bump ing, swaying mail cars through whistle stops, -grimy in the dawn.”’—The Postmark

suggest that a father discuss the matters with the sons and the

| mother with the daughters.

QUESTION AND ANSWER

Mrs. G.G.: Can you tell me the quickest an@-best way to have hair removed from the face? — Answer: Most _ authorities agree that electrolysis in expert jhands is the best way to per- 'manently remove unwanted ‘heir. The method is_ esseetially painless, permanent and causes |no scarring.

The Falcon comes in both a Tudor model and the Fordor you see above.

OUR YESTERDAYS

(From the Guardian Files)

TWENTY-FIVE YEARS AGO (Oct. 8, 1934) The Charlottetown Riding Club

vy estate of Col. ‘J.S. Upton. A hunt breakfast was held in the club roonts in the re sidence of- Major Duvar, after which twenty-eight hunters ad- vanced up the North River Road preceded by a pack of hounds.

A fire at Eldon Friday evening resulted in a barn and: two smal- ler out buildings being burned to the ground. The barn, owned «by J.J. Larrabee, contained only a small quantity of straw, and as there was no wind no other build- ings were endangered.

TEN YEARS AGO (Oct. 8, 1949) . °

The local Y.M.C.A. is sending a large delegation from the four local Hi-Y Clubs to the Mari- time Hi-Y conference being held at Sydney over the Thanksgiving week-end. A total of 25 delegatés, accompanied by Miss Lillian Gehrke, Girl’s Work secretary, are leaving by chartered, plane

early Saturday afternoon.

Miss Frances .Jchnston, Diree- tor of the 'P.E.I. Arts and Crafts Guild is flying to New Glasgow today to address the Nova Sco- tia provincial convention of the Federation of Business and Pro fessional Women’s Club, which is being held in New Glasgow this week.

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