race _

I :5. m: ==.

i authorises ao tlocand Claaa Mall, rm our».

\ Department, Ottawa.

i Editor and Managing Director, J. If. Burnett;

l Aelaelaia Editor, Frank Walker

the Weakest lnk." CHARLOTTETOWN, WEDNESDAY, MAY l9, 1948

An obvious interpretation to place upon the Abbott Budget is that the King Government has tion this year. Despite an estimated surplus of $670,000,000, no major relief is offered to the sales tax reduction, there is to be a reduction only in the tax on some foods. The income tax of $500 to persons of '65 or over. But the refund- able portions of the i943 and i944 taxes will 3i. Interest will be paid on overpaid taxes, but at the same time, penalties for unpaid taxes from the amusement and pari-mutuel betting fields, but it remains to be seen whether _the tax- these taxes (including the Federal 20 per cent tax on theatres and Z5 percent on other amuse- Governments.

Taxpayers should, perhaps, be thankful for ver-plated cutlery, cheap alarm clocks and braille watches, for the increased exemption on Domin- concessions.

Reasons for the failure to provide any sub- ter, though it is doubtful how far they will prove acceptable to the general public. First and forc- icy of debt reduction and fighting inflation. Mr. Abbott is afraid of "a sudden surge of tax-freed curtail as much as possible "the intense demand of the people for more goods and more services." goods are not available. "The people would try to buy more, but there would be no more to buy. profit, but others would lose out to the higher cost of living." Thus the apparent benefits of cept to those strong or fortunate groups which can profit more than they suffer by higher

Another approach to the problem, of course, would be to stimulate increased production and Under our system of private enterprise it is dif- ficult to see how this can be accomplished by in excess of government requirements, and which act as a deterrent rather than a spur to

The Budget comes as a distinct disappoint- ment to the average hard-pressed taxpayer, who and now will have to wait for anoth-er twelve months at least.

The recommendation of the Charlottetown Planning Board to have the proposed new Do- between Grafton and Richmond Streets is one which is likely to meet with very general ap- report appearing in yesterday's issue, are logical, and are evidently the result of careful study of mcndation has the full approval of Premier Jones and of the Ciy Council is also a strong our provincial and civic authorities have not al- ways seen eye to eye, and the result has been

lt is, of course, for the Dominion Govern- m-ent to make the final decision in this case; but gestion will be given very careful consideration. The need for a large modern building to accom- tered throughout the city has been felt for some time. Such a building would not only be a great but it would be a first class acquisition to the city. if built on the site suggested, there is no values in this area.

Socialism weakening

Two developments in the British Labour Gov- ernment (says The Letter Review) show that ex- Leftist idas.

"Mr. J. F. Plotts-Mills, M.P., hos been elect- other M.P.‘s wprned for sending a telegram of encouragement to the Leftist Socialists in Italy

' election,

"The Attloe Government evidently intends rnunists—vrhether they admit that they are Communists, or not. about Russian Communism; increasingly firm in his attitude to the crypto-Communists in. his

Iarnlng mu; (Founded rerun ‘Ilsa Inland Guardian Publlahlng c». ' "The Strongest Memory is Weaker Than An “Austerity Budget” no intention of calling a general Dominion elec- overburdened taxpayers. Instead of a general is unaffected except for an additional exemption be lumped together and paid before next March will be increased. The Dominion is withdrawing payers will benefit by this gesture; more likely merit places) will be reimposed by the Provincial the removal of the 25 percent sales tax on sil- ion succession duties and for a few other miner stantial relief were given by the Finance Minis- most is the need for maintaining a general poi- clollars on the cost of living," and he wishes t0 The point in this statement is that the extra Prices would be sure to rise. Some people would tax reduction "would prove to be a mirage ex- ./ prices." thus provide the goods for the people to buy. ccntltiuing tax burdens which are admittedly for private initiative. was looking forward to some considerable relief l Dominion Building Site iminion public building located on Pownal Street proval. The reasons giveii by the Board, in its the whole situation. The fact that the recoin- factor in its favor. Unfortunately in the past a deadlock so far as ioint action is concerned. there is no doubt that the Planning Board's sug- niodate Dominion Government offices now scat- convenience, both to the officials and the public, doubinthat it would greatly increase property a

perience is causing a very definite weakening of ed from the Labour Party in Britain, and 2i who supported the Communists in the recant |~o treat these who accept Communism as Cam-

"Mr. Attlee becomes increasingly outspoken Pa

"Mr. E. Shinwoll, at one time one of the ex- treme Leftists in the British Labour Party, says ' frankly that thb Labour Government plunged Into nationalization of industries without sirl- flcient study. , " "Mr. A. Wsedliurn, Secretory of State for

- _.-’1‘HE ove-liQiélj.

point out that the first step would be on increase in electricity rates.

"Lord Hyndley, Chairman, National Cool Board, assuring the British Government that there will be no increase in the price of coal, warns that this decision will have to be alter- ed if there should be any increase in miners’ wages.

"Thp Reform of British Socialist policy indi- cated in these ways is not likely to strengthen it with the public. A Socialist Government which admits having made a failure of Socialism, and which has to enter into alliances against Rus- sia has not any of the talking points which car- ried the election in i945."

_ EDITORIAL NOTES ~-

The Planning Board under the Chairman- ship of Mr. F. Walter Hyndman has made good and deserves congratulations.

I "k i i

Prime Minister Stalin attempts to throw a monkey-wrench into U. S. Presidential election by recommending the acceptance of Third Party Wallace's pro-Soviet policv.

i fi i ‘I

Did the Budget delivered last evening come up to the expectations of the man-in-the-street, or any other man except members of the Gov-

ernment? \ l‘

o a a-

The C. C. F. Party inNew Brunswick evident- ly prepared its platform before Prime Minister Mackenzie King announced his p. , " legisla- tion as most of the points are already covered by the Liberals.

I

The beaver found in Ottawa's Rideau Canal was promptly hustled away to parts unknown. There is no telling what effect the creature's example might have had on the capital had it been permitted to remain.

I W

o I

O I

Canadian shipping will be helped towards a sound basis by the revision of original terms restricting re-sale of former Crown vessels so that they may be replaced by more modern

types.

The world has become more or less apath- etic to one failure of international co-operation after another but the announcement that the Atomic Energy Commission is giving up the ghost is apt to send a chill up the back of the most optimistic.

I

After all the abortive efforts of the Alberta administration to punish the publishers of ex- tracts from the Whitton Report, evidence be- fore a Royal Commission indicates that in des- cribing the childrens‘ homes, the report was

"accurate and not exaggerated." I i Q fl

The most noteworthy fact about the meet- ing of the Temperance Alliance on Monday was that leading Island Temperance advocates were conspicuous by their absence. What a change from the days when the Conservatives were in power when the Alliance was used as a sounding board for Liberal propaganda. The chief plank in the-present temperance platform is one of sympathy for the doctors who will lose revenue if the new Temperance Act is approv- ed.

Good, progress has been made in preparing the way for Britain's big new National insur- ance Scheme which comes into operation in July. The Ministry of National Insurance has already opened 760 local offices from which sickness, maternity and other benefits will be paid. It is estima ed that some three million men and women wil _enter insurance for the first time this July. Every ad-ult will be entitled to receive the benefits provided under the Scheme as will those coming from abroad to take up em- ployment in Britain. -

it Q it i

Continuing high taxes might be an admir- able theory, if high_ taxes did not discourage the taxpayer as a human being, says the Telegraph Journal. Last year Mr. Abbott recognized this human reality. "l am sure," he said, "that were our present levels of personal income tax to be continued, they would constitute a serious im- pediment to a full working effort and a brake upon tlie drive and initiative of men and women in all groups and classes." The second reason was also a recognition that Canadians cannot be taxed too highly in relation to the levels of taxes in the United States. To keep Canadian tax levels disproportionately high, is like offer- ing a premium on emigration to tho United States. As Mr. Abbott said in last year's bud- get speech: "|t would appear that if Can- adians are asked to carry tax burdens which . . are significantly-heavier than those im- posed by the United States, there is a risk df o serious drain of Canadian personnel to the south

for this reason alone." fi

I I O

William Ewart Gladstone, British statesman, died this date I898. He entered parliament as o Tory and held several portfolios in the Peel Government, Macaulay describing him as ”the rising hope of the stern, unbending Tories" but later he joined Lord Aberdeen's coalition od- ministrotion, and later became leader of the House of Commons under Earl Russell. In i868, he was returned as Liberal. member for Green- wich, and became Prime Minister. He subso- quently retired into private life, but in I880 he re-entered politics gs member for Mid-Lothian, again becoming Prime Minister. He had a stormy time thereafter, with both foreign policy and Irish affairs, but was re-elocted in i092, his fourth and last term as Premier. l-le was a bril- lrant department head, a magnificent party leader and orator, and the greatest Parliamen- tarian since Pitt, but he too often allowed his emotion; to outweigh hie reasoning powers, and thereby committed blunders which it was diffi-

Scotland, pretidlhg at a meeting to celebrate ‘" nationalization of electric services, undertook to

3r

c°ult to eradicate: "Decision by moiority is as much an expedient as Iightino h! ans."

. us...“ ..

Jletee By ‘Ills Hey-

Mil" "W"! ll opens chewing Bum than on religlorifghen that may be because gum l; uggd w,” dav. — Brendon sun. ,

All 00lII|ols ll an Idea that. you hold: s conviction is an idea that. holds you. - Quebec Chronicle- Telegraph.

The "once uemiv I thing our is said to mount while: esoo a your. What. does that make most. of unit-Guelph Mercury.

Immediately after paying his taxes. a mun in Los Angeles drop- ped dead. We doubt if the incident will soften the heart of a tax col- lecifll‘ anywhere. -K1ngsi.ori Whig- Standard.

There are some men who rave in the orifice because things have gone badly st. home. and there are others who rave at. home because things have Bone badly ln the office. — Niagara Falls Review.

Drake University calls a half. to co-eds lrlsslng their boy friends in public and in the doyllght. A kiss in the dark may be much more pleasant than one in the daylight. iespecially ll’ the girl lsn’t pretty.) But it is a queer moral code which rules lt is more proper to kiss in the dark than in the daylight, or in prlvale than in public. —Wlnd- sor Star. '

Juritllylng the view that “man ls an animal," Toronto Star says, "l-le can wolf his food, ram a car, act sheepish, be n loan shark or a pocc‘ shark, rat on the gong. monkey with a buzz saw. and go completely cuc- koo. Doesrfl. that make him a Whole zoo full of animals?" Not. quite, but. he can also growl like e bear, roar like a llgon, bellow like ii bull, bray like an. ass, kick like n s-"e-ir, eat. like o. horse. run like s deer, act like a skunk, make n hog of himself, be as stubborn as a mule —-end on top of it all is as cute as a fox. We didn't start. this; let someone else finish it! -— T. D. F. in the Ottawa Citizen.

A note of metropolitan modem- lty has been introduced to the growing city of Fredericton by its new hotel. the Lord Beaver-brook. The gleaming seven-storey struc- ture Ls situated, happily. on one of the most. attractive urban hotel sites in Canada ~Wlth elm-shad- ed Queen Street in front. and the St. John River provldlng a scenic moving background. Landscaping which the city ls doing along the bank of the big stream, including the eventual building of a river- vlew highway. will add much to the charm of the location. The new hotel bears an illustrious name- the name of a New Brunswlcken- Saint. John Telegraph-Journal.

With Ontario forms becoming more and more mechanized, and the spring seeding season in full swing, there are reports of a somewhat new form of accident. on the farms. One man has been killed by is tractor backing into o. drainage ditch, and n few others have, been injured by tractors over- turning. Progress brings speed and efficiency, but. it. also brings some dangers. When the field work was done by horses, there was always the possibility of u fractious team running away and causing some hurt. Fagmers are learning, through mishaps, that. tractors also can result in death or injury unless handled carefully. — Windsor Star.

With contempt for marriage vows seemingly at. a new high in this country lt, came like e breath of fresh ulr to read of the reverent. celebration of their 25th. wedding anniversary by the King and Queen of England. On their knees or. the altar a. couple expressed thanks for "the opportunity to know the blessings of home and children." Whirl; an uplifting compared tn some others 1n the some newspap- er lssuesl "All married llves are in B. sense communities." sold the Queen. "There must be many who feel as we do that. the sanctlllee of married llfe are in some way the highest fonn of human fellowship." No divorce attorneys, no list. of former mates and no nightclub festivltrs. Talk about. novelty! — New York Sun.

Morn and woman are needed ta- day, and the demand will be equal- 1y great 10 years from today, who are prepared to do n good lob; but. that preparedness does not. just. grow. _ Business executives know only foo wall how often they have had good Jobs go begging for Lrsln- ed men and women, simply because there ere so giany who are unwill- ing to qualify on their awn initia- tive. Oppertunihl will come in ,splie of everylh g one can do, but if one in not. ready for them they will pose on to someone also. There is on old saying to the effect that e smell men wutce his i-lml looking for big opportunities. while the greet ‘man uaes his time taking advantage of the little once as they come. - Beult Ste. Marla 50hr.

For some add reason antlsadaete of civic planning are much given to the use of high flown Jordon Lo explain their ideas. An article on the borough oytem of civic gav- Qtnmdfll» appearing in the April il- sue oif the Municipal Review of Ce.- riirda, provides e rich Ind 1H1!!! examples. We uote "The boroulh system ls e ctvlc-cnflllliifil-l" movement." "We era furl-hermit" bound to lacd use newer ides o! civic liaaonlem r . ." "All these things corna about when a alt! bresiu through. no to lank- i" wells. or lie ooaastnl or legislative boundaries." "Borne of the men. taeke end labor! now are to procure concentrated. ao-ltflflil". r 00-"- dlnated. consolidated elvlc action

..."lir tiieintereeteolwsll-flm newer irnd water Mlllll- W. M!" win-i ._ wlnnineo Ptfl PHI.

Cartels

(Altudy of the Pros end 00m b! J. W. Hansen)

One of the chief difficulties in gettlnl on impartial study at ou- tels is due to the fectttiat e mean- ing of something sinister has been given to them. The)’ have very often been vlewedAi-ocn the emo- tional point of view la if they were some secret. contact’ of a na- tion with foreigners. The term cartel" has too often been cou- riected. with an aroma suggesting some new and dreaded social die- euse, and referring co eny indus- trial agreement as e "cymbal" has been to immediately present it in en unfavourable light. When it is realized‘ that the word "competi- tion" was not always looked upon with favour, it may be possible w get a more realistic examination of cartels. Frederic Bisstlut in his book. “Harmonies Ekonomiques", published in Paris, 1851, mentioned that. the word "competition" rous- ed more fury among modern re- formers than any other word in the vocabulary of political economy Yet, Bostiat. was ln favour of com- petition. his slogan was “Look at everything from the standpoint of the consumer, for the interests of the consumer are the interests of the human race.” '

The orlgln of the word “oartel" is French. meaning n panel or frame. The modern definition. which hasbeen given to the word ls is combination of industrial es- tablishments combining to regulate production and prices. .

Professor Redvers Ople. the emi- rieni. British scholar and economic adviser lo the British Embassy in Washington, gives the definition that n. cartel is "an lrliercompiiny agreement which may or may not contain on element of monopoly."

Professor Corwln D. Edwards says that n cartel “ls a group of Business enterprises formed for the purpose of avoiding some kind of competition among themselves. Its members continue to do busi- ness separately for their own profit, but. they act together in deciding such matters as the prices they are to charge, the amount they are fo produce or "sell, and the share of the markets which ls to be regarded as the exclusive right. of each of them.”

Since the meaning of the word

"corfel” ls any agreement to con- trol production. share markets. or lo stabilize prices. it ls obvious that. this term could be applied to any commercial agreement, wheth- er between private entrepreneurs or governments. The purpose of cartels is to re- late production. to consumption or supply and demand and thereby stabilize prloes. In order to ac- complish thls objective, it has been found necessary ui: times of depressions caused by the defla- tion of money, the means of dis- tribution of real wealth. to re- strict production and share mar- kets. 'I‘l1ls ls applicable to cartels. whether they are agreements be- tween private industries or na- tional governments. There in no distinction between entrepreneur cq-operation in international mer- kets and inter-governmental corn- modlty agreements, which have for their purpose the regulation of production, distribution and prices in basic commodities.

It seems paradoxical that. the Canadian Government. should in ifs international trade policy sup- port the principle of cerbelism and‘ yet. condemn the some principle when practiced by private indus- try. The fact. that. cartel agree- ments are between governments in no way distinguishes their elm and purpose from those entered into between private industry. The only distinguishing feature is that in many instances private agree- ments are more desirable than irr- tor-government ones. Private o- greeirnenis will be divorced from national and political ambitions. They are entered into for purely business reasons to safeguard the interests of the business- its con- sumers, producers, employers and investors —ln general, the (youn- ry. Irl the case of certain rew rm.- terlals such u wheat, sugar, ten, rrvbber. etc, it. may be necessary to have government notion in view of the many small and unorganiz- ed producers. But. it. seems o. oer- lfllfll-Y that there will be more freedom and incentive for econom-

hmsd’;

on wonur nice curls

‘the peace ie signed, bun. more is n-virrdor in the elr.

Not hhe more smell of rotting bodleg over lend and see.

“we ls a modun matter of emerge to you and‘ me.

Imeanttrernutder ofthet. being, who. thrown mist; at dawn,

Once slid. slam-eyed, green-gleam- ing, beckoning us to be