PAGE FOUR Til 5 GLJ5B-Pl

lleporlniunl. Jttuwn. l'IIo lliuul uulmllan t'Il0lIllIllIl U0-

cII.UlJI.A rum foul City Zone ....- 8.18? Retail Trading lo ........... 3.15-' An other. . . ........................... we Ioioi Net Paid ................-.-...... ISM-

lcdlim an-I bluruglug Director. J. K durnoll Anuu.-late tklllor. I."ranIn Wllkor.

- "The Strongest Memory I5 Weaker Than the Weakest Ink"

onAin.or1'i-rroivn ruunsblfv: Twin-1i(:.ir-:3,:s51 Trlckiiig Tile Taxpayer

Provincial governments which entered into "tax rental" agreements with Ottawa are finding difficulty nowadays in balanc- ing their budgets. Consequence of this unhappy state of affairs is that politicians are looking around for new sources of revenue. Already the proposed "turnover tax" on retail sales has found favor in political circles in some provinces.

This is natural, for the "turnover tax" would be a hidden or indirect tax for which the politicians would escape the blame. For, as John Stuart Mill once re- marked, "indirect taxes are those demand- ed from one person in the expectation and intention that he shall indemnify himself at the expense of another." The politicians know that the small retail merchants can- not afford to absorb the tax and keep out of bankruptcy, that they will be compelled to pass it on to the housewives and bread- winners. They confidently expect that the merchants rather than the government will get the blame for the inevitable in- crease in the cost-of-living.

The small merchants are thus being made the scapegoats of the politicians. For the plain truth of the matter is that pro- vincial governments possess the power now, without any change in the B. N. A. Act, to impose direct, open taxes on sales. But they prefer, for obvious reasons, that new taxes should remain hidden and secret.

This is less than fair to the corner grocer. It: is less than frank and honest on the part: of the politicians.

Finance

It is a sound principle of both private and government economy to accumulate a reserve in times of buoyant prosperity in order to be able to spend in less prosperous times without having to immediately fleece the taxpayer.

The opposite policy has been pursued provincially even more than nationally. During the lean years Governments stern- ly refrained from what would now be con- sidered even necessary expenditures. Now, with the economy functioning at its high- est rate, Provincial Government financing is adjusted to push upward the public debt.

It is obvious that we are out of step. The problem, however, is how to make the necessary shift so that funds will be pain- lessly available when most needed.

More competition Needed

A strong argument for encouragement of the trucking industry in the Maritime Provinces is contained in the report of the Royal Commission on Transportation. The report finds that those regions of Canada where truck and water competition is lack- ing or insignificant have to bear the chief burden of railway freight rate increases. That is why Quebec and Ontario enjoy such low competitive freight rates. Note is taken of this fact in the main report of the Commission, and it is also fully dis- cussed in a memorandum attached to the report by one of the three commissioners, Dr. H. A. Innis of the University of Tor- onto. Speaking particularly of trucking, he remarks:

"The eloquent silence of Ontario and Quebec in rate cases and in the hearings of this Commission points to the effective- ness of truck and water competition in keeping down rates in the St. Lawrence region. More extensive and better high-

'ways'bring an increase in the density pf traffic, greater diversification of industry. lower interest rates on capital, and even greater extension and improvement of highways.

"Ability to escape from the full impact of increases in railway rates accentuates the burden of these increases on other regions, and compels these regions to con- centrate on highway construction as a means of escaping from the burden of high- er short haul rates and long haul rates. . .

"Inability to escape-- the increased bur- den of higher rates on long haul rail traf- fic limits the financial strength and re- stricts the diversification of industry in these regions. The effectiveness of truck competition in the. St. Lawrence region, by

, weakening the financial resources of other

limits thelf Of WW Rdontmbe burden-ofhizherrlilwlyflieliw

A N

I

of the University of British Columbia. He notes that. as in other countries, trucks have deprived the railways of much rev- enue they had got from carrying goods of relatively high value for relatively short distances. So the rail carriers had to make good the loss of revenue from non-com- petitive traffic.

"In Canada," Dr. Angus notes, "more perhaps than elsewhere, the result has been to impose a serious burden on the econ- omies of outlying regions."

As pointed out in the body of the re- port, the revenue loss arises from actual loss of business to the trucks, and from the granting of lower competitive rates. The Commission expects these losses to the railways to go up instead of down as time goes on. The obvious result will he to throw a still heavier rate burden on the non-competitive traffic.

l'DIlURIAl. NUIES

New Brunswick sportsmen are to im- port more partridge, because the previous importation proved an unbounded success.

I O I I

The teachers had the best Conference in their history this week, and are all looking forward optimistically to the big Canadian Convention to be held here this

summer.

Summerside is going to have increased taxation in order to continue the Town improvement scheme begun last year. And everybody seems to be happy about it. This, of course, is because the taxpayers see they are getting their money's worth in the building up of the town to be in the front line of Maritime municipalities.

, O O 0

Are we to have a visit from Mrs. F. E. Davies of the United Kingdom Federation of Women who is to tour Canada to see the everyday life of the rural people of the Dominion? Her programme, so far, includes visits to British Columbia and

New Brunswick.

Dr. J. A. Clark, so long and favourably known as Superintendent of the Ex- perimental Farm, has kindly undertaken to continue ”Newsy Notes" weekly in Satur- day's Guardian, a column so long con- tributed by Mr. Blythe Hurst Sr.

0 O O

Regrets are vain, of course, but all the same both Conservatives and” Liberals in the Legislature were extremely sorry they missed the golden opportunity of getting their pre-election speeches off their chests in the Budget debate. Somebody blunder- ed, but, of course, it was the Opposltion's business to see that the Government mem- bers did not steal a march upon them.

I O 0

Visiting Halifax after an absence of 30 years, Mr. Paul Emile Naggiar, French diplomat, claims he sees a great improve- ment in Canada since his first visit 30 years ago. "At that time," he said, "Can- ada was not a world power but she has achieved that status now." Mr. Naggiar is conducting a nation-wide lecture tour. He was at one time consul-general in Mont- real and served as French ambassador to China in 1936-38 and the U. S. S. R. in 1938-40.

I U 0

John Keble, English divine and poet, died this date 1866, at the age of 74. He became a fellow, tutor and professor of poetry at Oxford and published (anony- mously) ”The Christian Year" in 1825. In 1836 he accepted the living of Hursley, Hampshire and ten years later published "Lyra Innocentium”, manifesting his in- terest in children. It is regarded as the finest fruit of his genius. As a poet he is the spiritual successor of George Herbert and his works include a metrical version of the Psalms--"The Oxford Psalter." Al- together without worldly ambition, he is commemorated by Keble College, Oxford,

erected in his memory:

C O 0

Ottawa enjoys fat Government patron- age so far as printing is concerned. Last. year, the Federal Government spent S5,- 399,030 in publishing departmental reports and other publications. These last includ- ed "informational and educational bulletins and other publications respecting matters of a national interest"; as well as publica- tions on scientific and technical matters, on natural resources, statistics and other such material; and on l-lansard and parlia- mentary papers. In the new fiscal year, this expenditure is expected to reach S6,- 174,309.

C O I

Periodically (says The. Gazette), M. P.'s and senators are rapped over the knuckles for absenteeism. Party leaders will like- ly do a bit of lecturing on these lines after the Easter recess. By the time that Par- liament was ready to vote for or against the huge wheat subsidy, a majority of members had already packed their bags and lit out for home. In the Rouge of Commons only 40 per cent of the M. P.'s wereonhandtovote. Andinthe Senate

the voting fragment was only 33 per cent of the membership. '

rm: GUARDIAN. CHAR-i.u'I”rETOwN , This Vloalds Award For Acilovololt

IOi' Old Charlottetown mm c. r. I.)

Govr.nNos's conm..uN'r

Prcm a despatch by Lieutenant Governor Dundos to Rt. Hon. Ed- ward Cxu-dwell, secretary of State far the Colonies, 7th April, 1865:

"I regret that the Legislature should apparently have ihcught proper to have reduced. as low as it. well could, the comparatively small 'expendit.ure incurred in connection with the maintenance cf the cfflce of the Lieutenant Governor. Amcngst other retrench- menis, I may remark on the Leg- islature having ceased to make any provision fcr the salary of a private secretary . .

"On my arrival here. in 1859, I found the Government bound, by hustings pledge, to discontinue the very small amount of 5263 I35. -id. which had previously been ap- propriated for that service. In con- sequence, I believe, of the know- zdge that I had brought from England a private secretary. on the understanding that. the small salary I have mentioned was at- tached to the office, that sum was granted for the period he was with me; at the expiration of 9. yes: he resigned his office on receiving another appointment elsewhere, and since that time no provision has been made for the salary. For more than five years I have. in consequence, been dependent upon the chance circumstance of a re- lative of my own. -having given

me hi assistance as private secre- tary. "Another retr hment was

made about the time of my arrival, by the r.'lt.hdrawal of two or three men who had previously been al- lowed as gate-keepers or messen- gm-..

”Govcrn.menl House is only pur- tlally furnished at the expense of Hit. Colony; the rest by the neu- tenant. Governor for the time be- ing. The house itself has been of some expense to the Colony. ow- ing ln great measure to its hav- ing been constructed of wood. I am glad to be able to report that considerable improvements have been made in it since I came here, principally at the time of the visit of His Royal Highness, the Prince of,Wnles. But for keeping it and the farm buildings, etc.. in re- pair, 1:100 a year appears to be now considered adequate, 5 sum hardly sufficient to make the re- pairs which cannot by any possi- bility be avoided.

"In fact, the whole expenditure of the Colony towards the support of the Lieutenant Governor, ac- ccrdlng to the estimates for the present year, will be: Government House, E100; Guard at gate, 533 65. 8d. I may further add, that the Lieutenant Governor does not receive any fees or allowances of any kind.

"In my despatch of 026th oct.. 1863, I enclosed a Plan of a small farm of abcut 80 acres attached to Government House, which was granted in 1789 by Lieutenant Governor Fanning for the use and accommodation of the Lieutenant. Governor for ever. It was with aur- ptise that I observed from the Journals of Legislature during last. session, that a petition signed by citizens of Charlottetown had been presented, praying that the Legis- lature should procure a portion of that ground Ice 2: Public Park. I think ii. but Just to remark that many of the leading citizens did not sign that petition. ,

"As no action was taken on the subject by the Legislature. I trust that this attempt to deprive the Lieutenant Governor of a. portion of his land may not be renewed. Apart from other considerations, the form itself, although perhaps it. hardly pays its working expens- es, is cf very great convenience in many ways, and is more particul- srly valuable on account of tlie privacy which it affords." '

("This important despatoh," says The Islander of March 20. 1868. "came to the knowledge of the Gov- ernment in 1866. in which year it was laid before the Assembly, and although several members of the Government. expressed to the House their regret that His Ex- cellency should have written it. and dlsclaimed all knowledge of its having been written, no steps were taken by the Government or Legislature to reply to the very extraordinary statements made by His Excellency")

A Strange Argument

(Halifax Chronicle-Herald)

There have been many appeals to actions of the Senate in sav- in;:- money. for the taxpayers of Cnnndn. and in numerous eases the ground is sound. But one of these appeals to the post will strike the Canadian people as u curious one, indeed. It went like this: "How much did this chamber save the tnxpuyers of Canada in 1912 when it defeated the Naval Bill? This bill would have given the British Government 535 mil- lion to build warships, which would hnve beeh manned by Bri- llsh sailors and sent anywhere the British Government ordered. This bill was debated in the other House for months before it was given third reading: but it was rejected here. As I say, it meant. a saving of 535 million to the taxpayers of Canada, and I nm sure that if a similar bill were to come before us today the Senate would again protect. the Canadian iu.xpayei-I."

Now; that surely is a strange argument. The Naval Aid Bi was killed by the Senate. not in 1912, but in 1913--the year be- fore lhe outbreak of the First Great War. Briefly.-the proposal was that Canada should contri- bute to the British Navy three of "tho lnrgestJ.nil Itrongelt ship: of war which science can build or money supply" of. III altimet-

the vmn disaster."

P01 mowed. I IIIIKEK ill'f

visiting Pvincnotllihlos Qalle

mews ITEM! several me:-mo . of HxeIegisIvtuveAssonbIy. while

and 61oVocutn'oM.l.Tru'ning Nu money into the soft dv nk dupcnscroi onetime Cstlblislmicnts, which cine across with the bevcrnge only once.

cmmou: son. ssnmc. Moiw A , FROM THE GWfNMl'NT IN fro eouonnou.

REGARD

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Sdaidtrir

1

4'b'H'b'u'n'in'i-'u'ln'u'l-'-'-'u'o'b'u'&u'in'vn'u'I

The Age-Old Story

.5'b'.i':'ln'b'c'U'u'u'n'u'in"u5'u'iH-'-

And the Lord spake unto Moses. saying, Speak unto nil the congre- gation of the children of Israel, and say unto them, Ye shall be holy; for I the Lord your God am holy.

Incentives

For Investment

(From Business Week)

These are the main reasons why U. 5. business is stepping up its Canadian investment:

(1) The Canadian market for in- dustrial products is growing fast.

(2) Some overseas markets can be served to better profit from Canada than from the U. S.

(3) In some lines-wood pulp. nickel, other minerals-u Canadian plant is necessary as a source of supply.

ti) Canadian Government. polic- ies-tox laws, in particular-have encouraged expansion of U. S. branch plants.

Incentives-Canada's phenomenal industrial growth didn't just imp- pen, nor does Canada's location right next to the U. S. explain it entirely: In a sense, the Canad- ians planned it that way-by cre- ating a climate that encouraged private investment by both can- adian and American business.

True, the Dominion Government is in the railway business, controls wheat marketing. and manufact- ures synthetic rubber. Most. of the provincial governments generate and sell electric power, and some of them own telephone systems and other enterprises.

Yet, direct government activity in the field of industry and com- merce is minor. The attacks on business that are every-dsy events in U. S. politics are almost un- known, except. from Canada's 50- einlist. party-the CCF (Cooperat- ive Commonwealth Federaidon). For the most. part Canada's Gov- ernment hns confidence in busin- ess. and business has confidence in the Government.

Canadian economic policies de- liberately encourage investment and expansion. Judging from the re- sults. the policies have paid off.

Taxes-Take the Canadian tax system, compare it with the U. 5. system.

0 O

The total tax burden is heavier in Cunndn-taxes fake 32V, of the national income, as against 2'17” in the U. 8. But Canadian taxes donlt bear down so hard on the incent- ives to invest in new plants and equipment. Here's how the distri- bution of the tax load in Canada. compares with ours:

Percent of total tax receipts Canada U. S. Personal income i.axes..2'l 49 Corporate taxes . 22 28

o

Excise taxes . 20 other :1 Total I . . mo 13?) Thus Canada raises half its revenue from taxes ihnt affect

investment: the U. 5. gets three- quurters that way.

Business gets another lax break in the Dominion. The corporate tax is rigged. about as far as any such tax can be, to stimulate busi- ness investment. The corporate- profiis tax rate is 3854. in Canada, C0mlP3N3d With 45',Ev here. Whslis more. the Canadian law has I number of features especially de- signed t.o encourage investment in new plant and equipment:

(I) A company that has a fluct- uating income is treated better in

nssocinted with this country.” They would he maintained by the British in part of the Royal Nnvy. but It was understood flint "if at any time in the future it. should be the will of the Cann- dlnn people to establish a Can- adlnn unit of the British Navy." these ships could be "recalled by

the Canadian Government to form part. of that navy." In "which case. of course, they

would be maintained by Canada and not. by Great Britain."

The bill finally pulled the Commons, but It was rejected In the Senate, where the main argu- ment against it in was the use in the Commons) was "No om- ergency." That, no we say, kvu in 1913. And i before another year was out. the "emergency" was It roomy: war. as Sir Robert Bor- don ind predicted. bud "burst" upon the world "in fury and

141 "Ill! rut-rificel

Appogu liilllilcel. but no i mud n;

ed out of sas.ouo,ooo.. Al Prllno Minister of out day our Robert Bordon) oxolnin lib! time buttlnbipo would nun tbunuivu in the bottle-lino of- iho Implroywiill this o(,Orout Britain herself. (I and of Now

you - lo. -"boor.r&.iliiw"lut,;:'uIIil'I.'2., '

le E .?..w.....- -

FROM LAST POEMS

0 than that from ilhy mansion Through time and place to roam. Dost send slbroad thy children. And then doth call them home,

'Ilhat men and tribes and nations And all thy hand hath made May shelter them from sunshine In thine eternal shade:

We now to peace and darkness And earth and iihee restore

Thy creature lihat thou modest And will cast forth no more.

-A. E. Housman. Am

Canada than in the U. S. In Can- ada, it has greater freedom to av- erage good and bad years in com- puting taxes.

(2) Current spending for re- search can be written off against current income: capital spending for research can be written off over a three-year period.

(3 A special program of accele- rated depreciation helped Canad- ian industry make the postwar shift to peacetime production. This program was available up to March, 1949, for approved capital investment projects. A company could roughly dowble inhe depreci- ation allowed in the early years of an inveslmenifs life. thus write off the entire cost. in about half the normal time. Some 4,200 com- panics picked up his option on 8.000 projects valued at ubout 51.5-billion.

No Recess" i.-It wasn't entirely -by accident that Canada avoided the kind of inventory recession that hit U. S. industry in 1949. That marked the first time in re- cent history that ilho two econom- ies moved in different directions.

True, one reason was that the U. S. recession hardly touched two lines of great importance to Can- ada. Connruction and newsprint consumption in the U. S. didn't fall off. So Cnnadai exports to the U. 5. held fairly steady in 1949.

I I 0

But when business began to slide in the U. S.. the stops Can- adians took were probably of equal importance. The Canadian Government-no doubt influenced by election prospects-cut. person- al income taxes and excise taxes. Also. to encourage business in- vesiment, it continued certain measures that had been due to lapse. This. in turn. kept Canad- jgn hnei from - :-

2 Notes By

have one in shorter than oi-hut. but dcourt explain why. Possibly when someone "pulls their lot" it happens to the some leg every time - an incredible coincidence. but we can't figure it out any other way.-Ottawa Cit- inn.

Ottawa women are enthused with fuhicn's latest hot. complete with two been of natural straw clinging on a navy blue crown.