>
BANK GOVERNOR GIVES REPORI Business Must Exploit Dollar Cut Advantages
ALAN DONNELLY
kinds of financial management
OTTAWA (CP) — The decline | could not compensate for their
fn the Canadian has given the country a special | opportunity to tackle the job of economic adjustment, says Louis Rasminsky.
In his first annual report governor of the Bank of Canad: fe said that to seize the chance, Canada must avoid a fresh upthrust of prices and costs and “vigorously exploit the | opportunities | for new business now available.” The report was tabled in the Commons by Fi- nance Minister Fleming.
Mr, Rasminsky, who suc- ceeded James Coyne as gover- nor last July 24, sald the de- cline in the exchange value of the Canadian dollar—now worth just over 95 cents in U.S. funds has improved “the _interna- tional competitive position of Canadian industry.
This, he said, economy with a special: oppor- tunity to attack the major prob- lems of adjustment that have confronted us since the intense resource development boom ame to an end several years
at full advantage is to be taken of the present opportunity to achieve =. increase | in output ployment in the | exporting industries and in. im. port - competing industries, it is clearly essential that a fresh upward thrust of domestic prices and costs should be avoided and that all sectors of the economy should actively seek out and vig- crously exploit the opportunities for new ae now available.”
The today “highly pig lactogsiagy com- petitive.” IST BE COMPETITIVE —|
We in Canada cannot escape this world trend, and the real determinant of our ee and welfare will be o1 it to compete tan world of rapidly | rising stam Is \ economic | broductvity and efflctency. |
jisted the basic require-
mente: PALME C Heaiaai aaae? getic and adaptable working | Population, ‘dynamic business leadership, the imaginative ap- plication of modern technology, good marketing practices, and perhaps above all the determi- | nation to be competitive,”
dollar's value | absence, ial
rt had one hopeful sign for Canada’s congeitive | status. European wage increases
it year, under Pressure of | acute labor shortages, “tended ‘oductivity’ gains by |i
in
This call to action highlighted | a report by the 53-year-old gov- ernor which dealt mainly with & straightforward accounting of economic developments last year and of the, central bank’ operations.
It outlined the reasons for last year’s major increase in money Supply — up nine per cent, or
31,250 0. Jevel of $15, 163,000,000 at year's end.
Mr. Rasminsky said that when he took office economic activity was rising but there was deal
FREER MONEY HELPED |
“In these circumstances it was appropriate that monetary pol- icy should be directed towards Promoting conditions favorable to the use of credit as one method of stimulating the growth of spending on goods and services."
Despite an increase in- busl- ness and individual borrowing and a sharp rise in federal and
provincial government borrow- ing, “credit conditions did not tighten,”
Interest costs declined. The banks and other lenders fol- | lowed active lending policies Mortgage money was "in com- paratively ample supply.” | e gross national product— total value of goods and services | Produced—rose seven per cent | between the first “and fourth | quarters of 1961, the report said. It gave no actual figures, but such an increase indicates .na- tional output hit an annual rate of around $38,165,000,000 in the fourth quarter compared with $35,668,000,000 in the first quar- ter. This would put the gross national product for the year at ,000,000—nearly three per cent above the $35,959,000,000 in
It said the 1961 recovery was stronger than the 1958 business | upswing and about as strong as the first nine months of the
ment rate, adjusted to discount seasonal factors, declined f:
A growing economy needs & nuns ‘money supply, Mr. Ras-
e rise in money supply in st half of 1961 was ap- in the circumstances
and “of material assis
maintaining credit condition
Canada which encouraged and
sustained this phase of economic
expansion.” The report made these other ints:
= the
1, Mr. Rasminsky expects to
from |be a witness before the royal
just under eight per cent of the | commission on banking and fi- labor force at the start of 1961 | nance.
to just under six per cent in January this year. Price increases were moder-
2. He is keeping an open mind on the question of how the bank rate of the central bank should
ate. The January consumer price | be set
index showed a year-to-year rise |
3. The margin of interest rates
{ four-tenths of one per cent. | in Canada over those in the U.S.
The tone of the report was in|
narrowed during the year to less
| contrast with previous reports | than one percentage point.
by Mr. Coyne, who resigned fol
4. The mid-year decline in the
lowing the Senate's rejection of | dollar's exchange rate had in-
a government bill to fire him.
creased Canadian prices of some
Mr. Coyne’s vigorous reports | major export and import com- went into detalls on the coun-| modities directly affected, but | | there had been little evidence Rasminsky’s report does little | of the increases spreading to re-
try's economic problems. Mr.
more than say they exist
The former governor's reports also argued strongly for meas- | al
ures to achieve full produotion | and employment and to enal
Canada to live within its ete without foreign borrowing. Last year’s report called for reduc-|
tion of the big balance-of-pay-| Justed basis,
tail prices generally. 5, Personal income increased ut 5% per cent between the fee and Tourth quarters of 1961 personal expenditures rose i just under five per cent. 6. Corporation profits rose 30 per cent, on a seasonally ad- during the same
ments deficit and for increases | Period.
in spending aimed at domestic production. Monday's repo!
pointed to a | $185,000,000
7. Consumer credit increased |six per cent in the year, up to $3,379,000,000.
reduction in the (pn of pay-| Chartered banks provided all
ments deficit to $909000,000 from $1,217,000,000 in
‘Consumer pate had
ed, it said, encouraged by
fie expansion ty’ case ayo
|
in- | ite"
but $12,000,000 of the increase . The Bank of Canada’s prof- paid to the federal treas. ury, increased to $107,693,000 from $90,176,000.
Highlights Of Report
OTTAWA (CP) —
High-
lights of the 1961 Bank of Can-
la report by Governor Louis Reerieniy tabled in the Com-
ons:
The decline in the Canadian dollar's exchange value has given Canada portunity to attack major problems of economic adjust- ment,
The country must new round of price ‘and cost increases and vigorously ex- ploit present opportunities for new business.
The money supply rose nine per cent last year,
Without the monetary ex- pansion, interest cost would have been higher and a
in ‘spending would
growth It those basic factors were | business cycle recovery that be-| fave been retarded.
missing, variations in the for- eign exchange rate or other!
a
most effective filter tip yet developed , © choicest, extra mild Virginia tobaccos
gan in mid-1954, The report said the unemploy-
Gross national product rose
]
special op- |
|
avold a |
seven per cent between the first and fourth quarters of 1961 — indicating an annual rate of some $38,165,000,000 in the fourth quarter.
Despite a major increase in business and government bor- rowing, credit conditions did not tighten and interest rates declined.
The central bank is keeping
an open mind on how it should set its bank rate, now geared to changing interest
rates in the short-term money market.
Between the first and fourth
quarters of last year, total personal income rose 5'2 per cent, personal spending nearly five per cent and cor- Poration profits 30 per cent.
There's Something Special about
du MAURIER
# rich flavour, exceptional smoothness ® firmly packed for longer-lasting smoking pleasure
f.du MAURIER
A Reolly Milder High Grade Virginia Cigarette with the EXCLUSIVE M/:MeccL> SUPER FILTER
Peter Jee
8 Tobacco Limited — makers of fine cigarettes |
Gov't Queried OnN.S. Mine
OTTAWA cP) - Miss we | | ister Flynn said
goers will conser “in : ‘BECOND SEC" Jit 2 | SECOND SECTION
most
ways of trying to keep open No.
16 colliery at New Waterford, NS.
He was replying to a Com- mons question by H. J. Robi- chaud (L—Gloucester) who re- ferred to a meeting here Wed- nesday between cabinet minis- ters and a Nova Scotia dele- gation including Premier Stan-
The Dominion Coal Company pit is scheduled to close Aug. 1. It employs 700 to 900 men.
Tobacco |Has Record Sales
MONTREAL (CP) — Impe- rial Tobacco Company of Léd. announced in its an- oa report that earnings increa- sed lightly in 1961 and that salts reached a record high. nits first public’ disclosure of consolidated sales, the com- pany said sales rose to $3 105,000 from $343,775,000 in 1960,
‘Net earnings in 1961, on the
sis of a new accounting sys- tem, increased to $13,857,000, or $1.38 a share, from $13,620,000, or $1.36 a share, in the previous year,
In last year's report, net earnings were shown as $10,- 733,000, or $1.06 a share, A total of $2,883,000 charged to opera- tions in 1960 was eliminated for in this
year's report In the revised balance sheet, good will, trade marks and pat- ents, *formerly shown at $31, 097,000, are shown as $1,000. Dividends on common shares in 1961 were 72% cents a share compared with 67% cents a share in the previous year.
VATICAN PLANS TRAFFIC LIGHTS
VATICAN CITY (Reuters) | Traffic lights will soon invade the sacred precincts of the | world’s smallest independent tate.
Vatican City authorities, faced with traffic jams that have no respect for boundar- jes, have decided to install traffic lights just inside St. Ann's Gate, which, like the Arch of Bells, the other main point of access to this 109 acre papal state, has become a bottleneck where only one- way traffic can move.
And in another attempt to cope with 20th century traffic problems, the authorities p to cut a new, wide opening for ears into the medieval walls that mark the city limits on the northern side and are studying methods of stream- lining traffic on the roads in- side.
Che Guardiaw
“Covers Prince Edward Island Like The Dew”
Ch Wed., Mar. 14, 1962.
Nelson Chase, who has suc- ceeded J. Leslie Doyle as Can- adian National Telecommunica- tions manager at Charlottetown was given a farewell party by
NEW CHARLOTTETOWN MANAGER HONORED
colleagues in Halifax. Here Mr. Chase (right) is congra- | tulated on his promotion by C.A, Beckett (left) Halifax CNT manager and G.A. Pierce,
sales representative. Mr. Chase had been assistant manager of the depart- ment of CNT at Halifax.
communications
Preservation Of French Taught By Laval Experts
Jangu: mmon to many
By L
French Canada is no ex
nn
's sharpened here because rench are relatively iso-
TORN YORSTON
P)—The problem of making the young use their properly and fully regions and
lated in a predominantly lish-speaking continent Preservation of the language is an issue that has occupied Quebec educationists for many years, Now it has received spe-
Eng
new course in spoken ing taught to Grade VIII s\ dents in 118 classical colleg around the province that are “af filiated with Laval
Their work has resulted in a rench be-
atories and some new ideas out imparting a language te a student who probably would prefer to be outside the school doing something else.
TRES OF INTEREST
“We attack him on his own
nd,” says Lucien Gagne, one of the three who de- signed the course. The others are Prof. Jean-Denis Gendron and Rev. Gilles Boulet.
“A student does not talk about everything,” says Father Gagne. ‘He has about 60 subjects in which he is interested — the house, clothing, sport, television, the church.’
These are what the designers call “centres of interest’ and each week the course is built around a different centre,
There are four basic steps to- ward better French—phonetics,
Fe a ed
cial attention from three experts The course makes use of reading, vocabulary and gram at Laval University. tape recorders, language labor- mar. “It is the feeling of the au- thors that not one of these par hs Precedence over ai
MAKE SURE YOU GET YOUR ATLAS
ALL-PURPOSE
SAFETY LANTERN
ITS A LANTERN, spreading a bright light evenly over a large area.
IT'S A SEARCHLIGHT with a powerful, long range
eam,
IT’S A SAFETY BEACON with a red flashing fight for emergencies.
Whether you're at home or in the field, on the road, on the trail or in a boat, you'll find the Atlas all- purpose safety lantern the handiest, most useful lantern you've ever seen. This offer is for a limited time only so make sure you get your Atlas all-
purpose safety lantern soon!
Yours $s Now ° (including the Atlas.
FOR ONLY Heavy Duty battery)
MUCH BELOW ITS ACTUAL RETAIL VALUE
(plus sales tax where applicable)
AVAILABLE ONLY FROM THE IMPERIAL ESSO AGENT WHOSE NAME APPEARS BELOW
i. ©. Mellish .
Vincent J. Shea .......... Charlottetown West
A A, Fraser occeceesseees
W. T. Coffin .....6 s+ «
+++» Montague Morell
ssseseceee Charlottetown Centre Charles W. Aitken ........ Charlottetown East L. «+s. Murray Harbour B. L. Stewart .
U. Stewart eeeee
++» Souris
ALWAYS LOOK TO IMPERIAL FOR THE BEST
cts to concentrate another would completely warp the proportions and defi- nitely risk the remaimin
chances of teaching our students their language.
The course | 3961
was designed in as part of Laval’s program 0 bring courses in and Hadery tara wgitordate
‘FAVORABLE MOMENT’
“It falls at a favorable mo- ment in the context of the Que- bec situat
ion," says Father
more contident the survival French Canada
The authors say students are equipped to read and under-
stand any French writer But when they move to the
| level of personal use of the lane | guage, of linguistic activity, we are in the presence of truly dis turbing ignorance. The language | used by our students in their | $ poor. Their spoken e simply cannot be de-
“The error up to now has been a belief that this weakness | in the French language among our students comes only from [ignorance of phonetics or die tion. The language itself has been ignored.
Father Gagne, whose own French flows and bubbles like quality champagne, says the
se is aimed ‘at ridding French of f n vocabulary, r , outdated pronun-
| The authors
decided proach the problem of correct-
to ap-
ing faults from “the negative
by showing through tape recordings in the language labs French sounds like,
The voice of a student-aged CBC actor saying simple sentences is used. Then the same sentences
are repeated in precise French by older CBC actors.
udents learn what their are by repeating the sent- themselves on tape - re Prepared by les Presses de L'Universite Laval, |the tapes have blank spaces | e student to follow the ae |tors. Then he can compate his French with that of the actors
The problem of cota language laboratories, howev
fs the cont-—about $560 for cack booth with tape-tecorder, ear- phones and a telephone system between student and teacher Only a few of the colleges us- ing
are able to use the course with the
of a single tape-recorder al- joesn't give as much { tndividual attention or practice,