v2-3a FOUR IHE GUARDIAN

Morning Dally (Pounded Iu 1M1) Aulhurlu-II II fia-viunl Chub Jllll. Pull OITIID wpqrlrnenl, UIIIWI.

Th! lulrnlJ huaarlllkll lubllnhllll CO. ldllur and snagging llinvtor. J u. fluruoll». Anni-Int: Ellllnf. Fruuli Wulnu.

‘The Strongest Memory is_ Weaker Than

the Weakest Ink.“ CHARLOTTETOWN, FRIDAY, JULY 1s, 1949 l

Maritime Boarifs Proposal

The proposal for an independent railway rystem within the Maritimes for the making of ‘rClQllI rates, as recommended by the Maritime 3oard c.‘ Trade bcfore the Royal Commission an lronsportation, is one which it is hhped will be given very careful and unbiased consideration. It would be of grcat advantage to these Provinces, without involving any physical change in railway property cr services in this region.

lt is an established principle in rate regula- tion in Canada and the United States that the rate on one railway is not necessarily the meas- ure of the rate to be charged on another. lf the lntercolcnial and the other railways constituting the "Eastern lines" had running rights over the Canadian National to Toronto, and were deemed to be a separate entity, the rates could be ad- iusted without incurring any charge of discrim- ination against other C. N. R. areas.

The proposal contemplates that the manage- ment of the system for rate-making purposes would be located at Moncton, with complete ad- rninistrative powers. lt is fundamental also that any statutory advantages of the Maritime Freight Rates Act, in its present or amended form,should not be affected.

For justification of the Maritime Board's proposal one must go back to the fact that the freight rate structure in the Maritimes had as its basis the rates of the lntercolonial Railway, which in turn were predicated on national policy and competition. This condition prevailed until about l9l2, when the Maritime rate structure became subjected to a "levelling-up" process so that by I924 it had become equalized, to a con- siderable extent, with the Central Quebec-On- tario structure. The impact of the changed pol- icy of the lntercolonial, coupled with the uni- form percentage increases, was drastic in the case of rates on specific commodities. These rates became more and more burdensome on Maritime economy with the recession from boom conditions following the first world war. The Maritime Freight Rates Act of i927 re-estaib- iished partly the policy inherent in the construc- tion and operation of the lntercolonial, and at its inception had a salutory effect in arresting the adverse trend in Maritime economy and im- proving the competitive position of small-scale industries. As the years passed, however, the benefits obtained under the Act were whittled away and, in some cases, the relative position of Maritime industries rate-wise was worse than be- fore. Then came the 2'l percent increase in freight rates in i948, resulting not only in a worsening of the competitive position of Mari- time industries in some of the markets of the Central Provinces, but in the fact that these in- creases, coupled with subsequent boosts in com- petitive rates, have largely been passed on to the consumers in the Maritimes.

It will be interesting to get the reaction of other Provinces to the Maritime Board's proposal, which is in harmony with a fact repeatedly con- firmed in historical studies and findings before previous Royal Commissions—namely, that the lntercolonial Railway was a "condition preced- ent" of Confederation, without which there would have been no union of the Provinces in i867, and that it was built primarily as an inducement to the Maritime colonies to enter the political union,and not for the purpose of exploiting them for the benefit of the bigger industrialists in Central Canada.

Pleservlng Ilhsolescent Skills

The Royal Mint in London has been engag- ed recently in striking l00,000 gold sovereigns, but there is no intention of issuing the coins to the public. According to a note in The Times, they are bzing struck simply "to preserve the inherited knowledge and craftsmanship of gold coining." This is an affirmation of the principle that inherited Skills, even though temporarily out of use, should be preserved for posterity in case they should be needed. Generally, people demand that only the material things of the post h: kept intact, and many of them are, in museums and art galleries. lt is a tribute to the British rrlnd 01d character that the less tan- gible achievements of the earlier days are deem- ed equally worthy of being saved from oblivion.

Ilewfounillanifs Industrial Fair

Newfoundland is planning to hold an im- pressive industriol exhibition and trade fair at St. John's in September. This is an excellent way in which to acquaint the remainder of Ca- nada with Newfoundland's industrial skill and the extent of its natural resources. Too many people in the rest of Canada have been dispos-ed to view the new Province as a rather bleak ter- ritory whose virile people depend largely for their livelihood ofl fishing and seal hunting. We in Prince Edward Island, of course, should know better.

Fishing does play an important part in New- loundland's economy and has done so for gen- erations. But as Premier Smallwood pointed out on his recent visit here, there are other forms of industry which attest to the diverse talents of Newfoundlanders and go to swell the yearly output of their production to a substantial val- ume.

In co-mmon with many other countries, New- laundland’s trade suffered during World War II when markets were cut off. Its total exports used to be of considerable value, however, and pra- duch were sold in no fewer than thirty-seven countries. This trade is now recovering steadily as a result of energetic production and tho of- fort pat forth to rc-ntablish contact with pre- Ilr rnarklhr- .

In addition to fisheries, nawsprlg] stands

high among Newfoundland's exports. Lumber is another important product. Miscellaneous goods are also manufactured and include boots and shoes on a limited scale, beverages, biscuits carriages and waggons, furniture and wood pro- ducts, barrels, paints, oils and cordage. The mineral products, among them copper and lead, are by no means secondary. All of these com- modities represent a respectable output and amount to millions of dollars when exported. As for Newfoundland's ii"*orts, in addition to the foodstuffs from Prince Edward Island and other agricultural Provinces, Iitese consist chiefly of coal, gasolene, electrical goods, machinerv. tex- tlie fabrics and clothing.

IEDITORIAL NOTES!

St, Swithin's Day. Inquisition abolished in Spain this date i834.

General Pershing, S? A. Army, died this date i948.

u u u _ Surely the St. Laurent Government is not going to penalize the Island because of the Prime Minister's unfortunate flare-up here dur- ing the election! i i The people of Montague and vicinity are wondering when the Government is going to complete the hardsurfaced road to there, now so well begun. At present it is not a good recom- mendation for tourist traffic.

Not a Scot but ‘an ‘Amllerican has discovered that it is cheaper to buy gasolene in the morn- ing than in the afternoon. The gas expands with heat, of course, so that a gallon of cool gas is heavier than a gallon a few degrees warmer.

a a I:

British Government now has on hand en- ough rum to fill 82 million bottles; cannot ‘sell any, because the price is too high in comparison with Scotch whiskey. A Socialist Government will have difficulty choosing between voters in Scotland, and lfldlgcflfl: cglonials in Jamaica.

The British Labor Party is attracting aristo- cratic support. Lord Lucan, who recently suc- ceeded to the title on the death of his father, has announced that he will take his seat in the Upper House as a Labour peer. He is a brother of Her Excellency, Lady Alexander, wife of the Governor-General.

I I I lt must come as a shock to the pedantic Canadian nationalists who object to even the forms of Imperial control to have the Canadian Seaman's Union appeal to Prime Minister Att- lee to intervene in their strike. The move shows the hand of someone who is not only not Can- adian but doesn't even know Canadians. i i I Canadian provinces in their financial straight-jacket sometimes look enviously at American states with‘ their considerably wider taxing powers. Even the States, however, are unable to get along without Federal financial aid. This year five per-cent of the Federal bud- get, a post war record of 9,458,202,000 is se aside for them. . I O I A new aluminum foil butter wrap is now on the market, and as will be noted in our ad- vertisement columns, advantage has been taken of this development by Central Crea-meries Ltd. to effect an improvement both from the mer- chant’: and consumer's standpoint. lt should help materially in extending the sale of quality ls- lond butter abroad. i i I A new and fashionable "strip-tease." O-ne of the most amusing outfits in the wholesale collections shown recently in London was what seamed to be a top coat in fine tweed with a fairly full skirt and bloused top. The manne- quin blandly removed the top — which was act- ually made like the top of o battle dress — then undid the skirt down the front and at the waist and took that off, revealing a dress of fine black wool. This seems to be the perfect answer to the travelller who wants to take with her three garments instead of two.

Scrambles among nations for war memen- tos fr:m Britain's historic Parliament is at pres- cnt the rage. Woodwork and masonry from the House of Commons destroyed by Nazi bombers is to be sent overseas in response to appeals. The University of Pittsburgh has asked for me- me-nitos to be embodied in the English Room. Oak panelling and woodwork is now being in- spected for shipment. Oslo University has also sent u request. It is hoped to incorporate mas- onary from the former Commons in the new English faculty building at Oslo. Photographs of masonry have been sent to the University for them to make a selection.

Who says Canadian farming is not pros- perous? According to the Bureau of Statistics our farmers across the continent sold $405,386,- 000 worth of goods during the first three months of this year, an increase of seven per cent over the some period last year. The in- crease was attributed to a larger scale of farm produce manketings and higher prices. Cash income from the sale of field crops totalled $135,878,000, on increase of 2O per cent, while livestock and livestock products sold for $264,- 776,000. In the case of livestock where market- ings were down from the same period a year ago, the price index indicated an over-all increase of more than 20 per cent, mostly due to higher prices obtained for Canadian cattle on the United States market. Cash income by provin- ces with I948 figures in brackets: Prince Ed- ward Island, $4,538,000 ($5,298,000); Nova Scotia, $7,795,000 ($7,I70,000); New lrunsrwick, $9,635,000 ($10,295,000); Quebec, $66,023,000 (S6i,688,000); Ontario, $52,440,000 ($143,243,- 000); Manitoba, $26,509,000 ($24,328,0M); Sas- katchewan, $45,30l,000 ($40,477,M0); Alberta,

$76,544,000 ($10,906,000),- British cdlllllllild, 517.599.0110 (SIWIM).

~tles.

THE GUARDIAN.

Sir Stafford Cri ps On Britain's Go d And Dollar Reserves‘

(Continued from yesterday's Guardian)

"Unless the sterling area auc- ceeds In restoring the volume of its sales to the dollar area. these re- strictions upon dollar expenditure will have to be continued. As soon an the distribution of E. R. P. aid for the coming year has taken place and the new Intro-European Pay- ments Scheme has come Into op- eration, we shall get out. a new Im- port programme In the light of the circumstances which then exist. We hope to have such a programme completed by September next. Be- fore ‘the discussions to which I wlll refer. we do not intend to make any immediate adjustments In the amount of dollar goods released for consumption; but as soon as they are over we shall have to recon- sider the situation In the light of any decisions reached and it may then become necessary to reduce consumption of certain selected foodstuffs which are primarily drawn from the dollar area and of certain raw materials.

"Just as It took some time for the position which I have outlined to declare Itself. so this standstill will have little Immediate effect In reducing the drain on our reserves. Unless the contracts already enter- ed into were to be broken and tho flow of Imports for which flrm ar- rangements have already been made was to be stopped, there could be no large degree of relief from the present measures until towards the end of the third quarter.

"But n standstill on dollar ex- penditure, though absolutely essen- tial, Is no solution for our dlfflcul- The effect upon our trade rc-latlons with the dollar area of a change from an expanding Io a con- tracting volume of world trade demonstrates the need for positive long-term policies. In the mean- whlle, I-Ils Majesty's Government will press on with every practicable method of Increasing our export trade, above all, the sale of goods and services for dollars. And for this it Is fundamental that Industry itself must quickly achieve a reduc- tiox In costs and prices by Improv- ed productlvlty and glve preference wherever possible to exports to the dollar markets. Any Inability to holfl our own in world markets must deprive us of essential sup- plies and our standards of life wlll suffer. This creates an Imperative necessity for new directives to be given to all those In industry, who are concerned with costing and se- curing contracts, that they must In- crease dollar exports, We must get our export prices down to a point which enables us to improve our position In these markets and the rather easy methods resulting from the unlimited demand of the last ten years must go.

I I I

“The Government and the nation are pledged to a policy of maintain- ing full employment and protect- ing our present standard nf living. To that end our efforts will be di- rooted, but no democratic govern- ment can do this alone. If the na- tion is to achieve these generally accepted nlms. there must be cam- pleti- co-operritlon. While we have no desire to sc-e wages cut, we must and can cut down costs and this we can do if we increase our efficiency o‘ production. There should there- fore he, throughout the Govern- ment services and every other pub- lic service rini-I throughout all In- dustry, a resolute alm to achieve the utmost efficiency. In addition we must avoid waste In materials rind In every other way so as to get the best possible results from what We Import. ‘

"Above rill. It Is quite certain that our existing policy on personal In- comes. costs and prices wlll have to be vigorously pursued. I must warn the House and the country that any attempt at this stage to force up personal Incomes can only have the most adverse effect upon our situation since It will rnlse prices and thereby make It even more difficult for us to earn dol- lars or other hard currencies with our exports. This, in its turn. must lead to n diminution of our gen- eral standard of living. If our money ls to buy us less In goods an Increase ‘In money earnings Is of no vnluo. lt is of crucial Import- nncr- that In meeting the present situation we should not aggravate it either by demands for Increases of personal incomes or by delays nnrl stoppage In our Industry which IHFPPIISP casts and reduce bur dol- lar warnings.

"This continuation and Intensifi- ratlan of the policies we have been f-IIFSIIIIIZ, ll1OIl,'Yl‘| vitally important. will not In ltsolf be enough to rem- rely our sltuntion. The problem of the relotbrisltin between the ster- ling and the dollar worlds Is not oni- to which the United Kingdom alone can find a remedy. It Is ri problem In which our friends and partners In the U. S. A. and the Commonwealth are especlally In- volved. Just as we have In this host-war period concerted together the short-term economic solutions In our rllfflcullles and together Iald the basis for our long-term remedy for the stubborn problems of a bal- nnce of trade between the Western Hemisphere and the rest. nf the world, of which the sterling aren forms so Important n part.

o a a

"As soon, therefore. as the facts of this greater stringency of dol- lnrs became evident, and Its effect upon the whole af the sterling area, we Invited the Commonwealth ‘Financi- Ministers to attend a meet- Ing In London. Thlg meeting wlll begin on the 13th day of July and Its purpose Is to discuss the sltus- lion as It now exists and to devlse mutual cooperative measures Io deal with It.

"We are taking the opportunity of the vlslt of Mr. Snyder. the Secretary of the U, S. A. Treasury. who wlll be vlalllrig London this week. to Initiate discussions with the U. S. Government on the whole matter; Mr. Abbott, the Canadian Minister of Finance. wlll take part In there talk: u well as In those of the Commonwealth Finance Min- later-l.

"Arrangements have thus bun made for prompt dllcuulon of the whole palltlori at a hlgti level and trio T-Touao wlll reullze that untll these talks, which wlll undoubted-

lv t-ike some weeks, have been con- uufui u wlll not. u palm mi

CHARLOTTETOWN

Too lad There's a Fly Iii

A the

Illntinentl

,;»;\i1",i~r~§eii{='li

"'~

‘n? f~

the Government to formulate and lay before them the full policy which we intend to pursue In as- sociation, We hope, with our Am- erican friends and with the other members of the Commonwealth. In the meantime, we shall In the ccurse of these consultations and In concert with others, take whet- ever further steps may be neces- sax-y to deal with the Immedlete situation of the sterling area. I would warn the House and the country that a thorough-going solu- tlon of this sterling-dollar problem wlll lake some time and just as In dealing with every other great national problem following the up- heaval caused by two world wars. we shall need, while exercising patience, to be prepared to take resolute action’.

"The United Kingdom carrles a great burden of responsibility In this matter not only as the cen- tral country of the sterling area but also because It Is so large n contributor In world trade. We have Indeed fully recognized this responsibility In the assistance which We have provided slnce the war to stimulate world trade and to help forward world recovery. We have devoted over £900 million to this cause.

"We are convinced that the pre- sent circumstances offer a real op- portunity for a long-term solution of the difficulties between the dol- lar area and the rest of the world. Our recovery and that of Europe has with American and Canadian governmental help, which cannot be expected to continue Indefinite- ly, gone far enough to enable us now to look for a way out of these difficulties. If we are to have In the future the convertibility of cur- rencles and the multilateral form or’ trade which we have sought ever since the end of the war, and are now seeking, we and the others must begin to bulld permanent poll- cles that wlll make these desirable objectives possible of attainment.

"It Is, therefore. In the Spirit OI constructive determination that we approach the solution of our pre- sent difficulties and If we must pass through a further period 0f restraint and restriction In order to bring about a more permanent solution of our problems, I am con- fident that In so nriinr: we can rely upon Ille help and support of all our people, thus safeguarding that basic policy of full omplflymPflI I" \l'llll‘ll we, In common with all the other countries of the world. nre S0 deeply pledQPd Rflfl "I Iht‘ 53m" iimr- nreser-xrlng the prlnrlrile of ignir ghrgrot‘ to which our notion is rommlttcd."

STONEHENGE‘

What Is Stonehenge? It. Ia the roof- less past,

Mans ruinous myth; hls unlnterred adoring

Of the unknown In eunrlse oold and red;

His quest of stars that arch hls doomed exploring.

And whet ls Tlme but. shadows that. were cast y these storm-sculptured stones while centuries fled? The stones remaln: tbelr stillness can outlast The skies of history hurrying over- bead.

-siegfrled Sassoon.

‘A circular group of huge stones cf prehistoric 07mm on Salisbury Plain, Wlltshlre, England, were g familiar sight. to Canadlans of the first contingent of World we;- 1, who were encamped on the Plain during the winter of 1914-15.

IE‘. l

SUBSIDIES FROM BRITAIN

Charlottetown (And P. l. I.)

"As for back as the year 1776, a gram of £3,000 was made to- “ftlfdfi deffflylng the expenses of the civil government of the Island: and a similar amount appears to have been ever since annually granted. Ir. the Infancy of the settlement, therefore, and through the long course of years which has since elapsed. the steady and sustained assistance of this country has not been wanting to the Colony, Hut IEIIHIY Its resources have been gradually developed: and on refer. tint»! lo the accounts contained In the Blue Books, l observe with much satisfaction that, so far as can be judged from these statements, the local revenue has been prngrggglvg. ly Improvlng, untll last year l: be. crmo more than equal to the local expenditure.

“Under these circumstances, It Wlll he obvious that Her Majesty's Government could not with pro-

IPYIEIY continue to apply to Parlia- - ment for the vote which has hither-

aoooisiwrooorscoouvmo-rcscmioorrczlto been granted for this Colony-

0. I? L. 1::

' The Age-Old Story

imoceooaoooooooooooooaooc

As for our transgressions. Thou shall purge them away. rnisir REPAIR non