~ *‘"a 412:1:

A-1-_.AH>.4...-.4».1.1.;-..._.,

R.

1C1~n'i".ii¢~1'l from Pace l)

__i___-

Itivc criticism rather

US. Trade Pact

0d 1 zre-t 1"." ~» mic 11, "1 1i 0.; 11.1151‘ 1o lhc h, H, _, HUM‘ Opypm‘ fie". that we have a ciifficult task ta; 1 i .;.s vov..-:.‘..1e:1ts 1 mm“ o‘. us‘ p 5 -1 i

“ , One of the thing: .\fr. hfackenzie r undertook to endeavour to _ durzug the election cam- was 11» enlarge oiir volume

1 the tlnitcd states. It l; to wi . .. we dc- as a Government. back. ladies and 1.11 day in i911 when fighting for it. and ,1; 11:0 fact that. l had 111i» in 193G Alli‘! mak- 1l..i'. 11o wcre all sorry .11. _\fy miiid wen‘. j: 1:1 the 20's when.

: 1. we inrc askccr .1'1,1u1"“1' h-Jrc who will :11 fazour of Re-

ts

’l'l:ai is on record

"e did I think.

.111 a. short a jiublic opinion in 1 1n the United 1 ". c mere be strong I

'1 iblc zhe GOlTTlllIlCﬂb , 1' e couixtrirs to p111 l! 1 l

i

n: e trade

go into the. .. 1.011s. I shall a moment. that the " 100 per cent. , or satisfactory ctory to the I\1.k1ng a deal cf .1'.':e11 representatives llﬁillia 01111 people on the one l and Ill 0110 000 on the other, 1s- " - rafter. You are not v But the

601' ll

.. I am not to 11aim that Canada of the barcain, that : Uncle Sam 1:1 a trade. : 11> s‘ - azzytiing of llic that sort of talk ' iblc and ddiiculty '1 i: is said in 11:» continue to lrtuic wtwcen both i1ti1i 11c hipe lliai both I s 11 ..l retain zilffIﬂCflL Cf/Ill- to try ‘to l!ll,‘)l’O\C upon ' cad of doing: away he cud ef the tcrni

bar-been working now itlciidiu" year. .t the volume ~ growl: lwih ways across .. 'l“iie fact that. during d (Jmaca s exports to the

. as ncccssarily oi‘ permanency. I Peculza-z conditions obtaining dur- a particular period may in- -ncc those exports either up or clown. Durng this last year the ic-ndcncy" has been for the particular . ' 1 modities which Canada ex- ‘ to the United States to be rc- i ‘ci by the United States in tamer violumc, in some re», than has been their normal .1 Whatever may be i - l with regard to that matter. ":1...=. m ach demonstrated even in Mme‘ , that short time. that. the treuty- has ‘ King GU“ iprovldctl more business for both l J) Omen icountries. that it, has provided eas- 1 1r sale 111 svtvrui very vital coin- .. r of (fanadiau production. 1 111i har. at flu‘ sﬂlilf‘ time had an llmci of perm/ting our consumers f l1 buy (“liflill classes of United co11i1i-.111l.1i1»s at cheaper c.1111 (‘!‘l‘i>i‘(|il(‘llii_V in larger" tllvn Ti‘1"\' were fining be- firm!‘ 111m“ into eficct.

‘s1 w.

ioic tire

Pow-era nf Parliament

Anolii-Tr important declaration 0f l ‘ire jirrwcizt Prime Minister when! lrarlr r o! the Ojuwosiiion was that

. _ .\l.ci1 1 l.;l).1-.1l Govcinmcnt came. illllillfiliu _ _ r . ‘,1 w I‘. 11 poxzr, 1211- Danni; 1111111110 sys- , . . .1 - 1 i111! ,- q 1 ~11 oi c111. riuncut would be abol- l _ H ,,_ i .‘\li'l zinncdiatcly on meeting l H, H (m w, nililiillllfHli, szrps ivorc uilzcii to get ., v H w‘ r m . 1.rl of 1'1 lliore mca=urcs which liatl . __ ‘ 1- '~.'1-1r1§ n» lhc cxcciii-ivc authority I 11 (JPN iii- ,

pw\v1:: w 1111i should only be ex-

271.. i:~ ,. ,1.. n» 110 _ l

comp M“, W, . _ ere: .:i h,» and through Parliament , 11".“, Jmﬂvd, W) I _,_ U“ H y mph’. ‘W. jiave cnclfavpiircd, kiln j

pm“ L H - m,’ “My”, ‘ Pﬂlllllflllltl? with the alitudc ofnt c I

- . , ., , of the p1 op .. . 111.1 1.:.1t lizeir ‘ 1mm“ Dirty “h” in Opposl on’ 1 ﬁrxu-‘nly\oll .,,.,,, m, 11> icsiorc to the Parliament of

‘Luuada all of the powers which um on“, NW1, constitutionally it 1111211“ i° bosom pm. qmcm mm m,“ _. 1 over the expenditure of money.

~Fhoie people and (iuulit therefore n wdﬁgwl.‘ as Mmmm or Finance’ O0 receive fair and 1ie1-rnt hiljllﬂﬁfb w?“ m author!” a“ expenditure‘ ill niciu: the liiic. And that fair l Wm” I “m d‘) 5° I mu‘? pom‘ to and deicnt support has been r cn H" i“'ﬂl“m‘°nh"y “mhorltymn “m: ﬁom the C1 11:1 bi-opi-r. 'I':11r1' i m‘ P“m“m°m' ‘which gives m0 me has been criti bill, which \'.'(‘ must nm""'v"i"3' m Spend money on m“ ' expect in 111111111; life. Indeed. 11 hero - immi-"mar “bimﬂv” Anny‘ “M” i the press is fk,!ﬂ__‘t_ ,, I,” h {may y has bc"n provision in the statutes ciary: nurl I 1l1111'l think liv- (‘au- ‘or (‘WW-V Br

hp against a p11 1'

i" A ‘ _ Irv, .11" Ur - ptlldlillff} by Governor Generals m“! 7mm“ “m. m." \\'.'ll'l'lUlL<. And in order to secure ma,‘ "."“‘- Bi-l .111,=:11l n kl? ‘ ;_1|~l1 (KDFIKHQIIFO what, is iii-ces-

A sayii/rllqthlurl‘ ,__,__,_1,: Vrarisf‘ A rlriificn-‘ion by the (‘inv-

l I 1 1 " “ ‘

miiiircu Vlltmscivm to construc- tlmmotlt overt-he sisnature 01 Hm

4.‘

1) UNNING

than party " ' y . . llwiitics during the past year, and 973m“ exists 5nd ma‘ P~"‘1“““°nt

‘ have shown 1m appreciation of the I15 n” i“ 5955b“- ‘md m“ "0 Pm‘

l I answered that l

control of the currency of the coun-

‘ pie of Canada. The Bank of Cari-

= of the

- very pleased to have the honour of 1 business man of Prince Edward Is- ‘ land as one of the governors of the i Parliament that a directorship in

‘ regardcd as a means of making a .l0t of 11101103‘; 1h."- remuiict-atiori is

1 and ability in the business and in- . dustrlal world of Canada.

1 outstanding at any time, from day

Ievils of inflation and tieflation. All ithrough our

ito level off the top of the booms

‘is an imporniiii

iopciatcs as an issuer of currency 1 to all the banks under the condi-

couutry for ex- i l order that every such borrower may

RE VI

S F

i

srsrlrﬁlMﬁir-iazc .1131

DERAL PR BLEITE

Minister of Finance that an em- I es costs 1n the way o! interest | that it is possible to arrange? Be- i lievitig that, the policy of the Gov- ‘vision has been made by Parlia- ‘erxtment of Canada is steadily di- merit for this emergency expendi- {reeled toward that end. ture. When that is certified to“ l I i t t. then a, Governor-Generals warrant i or itljgggtgageflaclli lznglesgnzlgnws. may issue for the special expcndi- ions pubuc debts that so” an‘: ture for the special emergency who are cred“ W0 m haum which was not foisccii, 'l'ho.t has ' . r y s N‘ 1 _ l ceive credit at the lowest possible ialways been a feature of British . _ _ lratcs. And when we point to the land Canadian law and is, in our I ; _ , l fact that the Government of Can- opinion, acicciuaic 1o take care of [Mm is today bonowm shot t any circumstauctxs which may arise l nwnev treasur bmg r arm i 0f an unusual character during the ‘ " y s a‘ three i months, at five-eighth of one per , cent. per aunum interest; when it

1 )‘CCII‘. ,‘ The blank cheque gave a blanket v1 is borrowing five year money at 140

‘ authority 1o the Government. to ex- l c I pend all 12in money it wanted for iper_ce_l.l' per annum interest’: and 1 anything it ivanted to do and many ’ b°"°“."“" 30-year money at 3'" per other 11111115 as “TIL under the f‘ cent. interest-when the Govern- ‘ name of pence. ordcraiid good gov- i mam of Canada 15 able to do that

l . , 'I'ha: has been all clone 1 toda)’ I mink you “m “we that'-

Of course. it may be a

eminent. some results have flown from our bit aivkivarci at times; but experi-

rvtay with. , _

l general policy in the direction of erce has sh "an that the c211,? W0. ' i “oping m? cost o’ money and on’ m which m? people m“ km“ hold i dit. at this time when we require of the purse-strings of the coun- m °_“"‘b out or the Slough" a5 low try is through their elected re- i ‘S It can reasonablybe made‘ prcsentativcs. So it is that we have ‘ I can go further and say restored parliamentary authority as a result’ of the operation of the with regard to expenditure. Bank o: Canada’ banking cred“ from the chartered banks of Can- ada to any credit-worthy borrower. be he farmer, industrialist. mer- chant, municipality or industry, 1s today available at lower rates of interest than ever before in the history of this country.

A man of course 1s better off if he does not have to borrow from anybody; particularly a farmer, be- cause my experience is that a. farm won't pay me my interest if it; has to pay somebody else's.

Control of Currency

Another matter which you will remember was part of our plat- rm was that we would icstore

try, through the Bank 0i‘ Canada. to the Ii‘[)l'(‘5£‘llfklIl\'95 of the peo-

ada had been established as an entirely private owned and con- trolled institution. It. bad control issue of currency, an act which has always been associated with the highest prerogative of the hfonnrchy. It was conveyed by the original Bank of Canada Act to a priiraic corporation. The amend- ments passed at the last session, in conformity with the pledge of the Liberal party, places the control of the Bani-z of Canada in the hands of a majority of ciurectors appoint- ed by the Government of the day. Once again control of currency and credit rests, through the people's representatives, with the Govern- nicnt of the flay. '

Only tho other day it was my privilege 1o recommend appoint- ineilts l0 1111; Board, and I was

The Railway Problem

Another problem which had to be dealt with was the Canadian National Railways. That is a. real problem; a problem of $50.0D0.000 a year. The Minister of Finance on behalf of the people of' Canada. has to find $50,000,600 every year to take cane of the deficit of the Canadian National Railways. As you know, the ‘former Government. decided to abolish the board of di- rectors altogether, and to place control of the Railways nominally in the hands of three men, but in fact in the hands of one man —- ihc chairman. The reason I say one man is because the way the law read, no action by the three or a. majority of the three was valid un- less the chairman was one of the majority. If you do a little addi- tion and subtraction you will find that they had a. far worse time ar- riving at a decision than our no» miiiating committee had just now. In reality the trusteeship of the not great. especially having regard g Canadian National Railways “s a to the large responsibilities‘ involv- i onwmm commL and that one mm‘ ed; but that I looked forward to the , not‘ directly responsible w the gov" day when being elected to the Bank i crlunent m" to Parliament‘ of Canada would be regarded as the We Liberals didnt think that was blue ribbon for integrity honesty anod- Wc brlicilvdthﬂt whqn the W0- ple owned the stock of the Railways and were responsible for the pay- ment of interest on the bonds, and ivere putting up $50,000,000 each year to meet the deficit on the road. their representatives in Par- t0 day, bin in operation it is able Qliameni. ought to have something to expand or restrict the volume of , i0 say about a property of thatysorb. credit of the country. It is an im- , So a, change was made to provide portant weapon to cope with the i for a board of directors responsible

to the Minister and Parliament. ‘ That. law is now in effect and the have had boom and depression, ‘change-over has taken place. boom and fiC]71‘(‘.5S0ll,.bOOnl and clc- . I don't expect that the new di- prcssion: and the problem of the ’ iectorate is going to produce a bal- political economist is to find a way anced budget on the Catiadlan Na- ‘tional Railways over-night. That is a pretty stiff job; if there is one job in Canada that is tougher than mine, that is it. Hut I do say that we have inthatyiarticular. iiisiriimcui, when I as well as iu the case of blank che- cont-ioileci iii the iiitercsis of the i que legislation and Central Bank people as 11 whole, to miiigzilo the l control, restored to Parliament-to worst evils both of inflation and the people's representatives-their deflation. The policy of the Gov- constitutional powers.

eminent. of the day with regard to the Bank of Canada is to continue to have it function with that ob- jective in view.

The Bank of Canada docs loau money to any individual.

recommending a. very prominent.

Batik of Canada-Mr. Lenny Hol- man. of Stimmcrside. I said in

the Bank of Canada should not be

The functions of the Canada are complex. controls the volume

Bank ofi It not only of currency

economic history we

and fill 1n the valleys of the dc- .- prrssion. I do not say that 11 Cen- iral Bank ran accomplish all of liiat, but. I mu and do say that it

Radio Commission

Mr. Sinclair made reference to radio. I speak of that “with some little trepidation, because every- body is an expert on radio. I only wish they could agree a little bet- ter than they do, these experts. They are something like what, is said about economists. One fam- ous economist recently said that if four economists were gathered to- gether you would have five dif- ferent opinions, and two of them i would be those of John Maynard Keynes. I think if four radio ex- perts micro gathered together you would have sixteen different op- inlons.

The Minister of Transport, Mr. Howe. whom I , rounded - and willingly-to visit you in the sum- ,‘ incr, is responsible now for the ad- iministratlon of ftadio. He has 15111111111 it and submitted it to a ‘ parliamentary committee. The new lsct-up was arranr-‘d 1°!‘ “W” BE- fpnmting entirely the question or {policy direction from that of me- busiitcss. -to sirik" 1-111. along new r chanlcal and scientific direction. 1.11m of dcvclopincr.‘ with hope of The ‘BUEFH HKYYIOW ‘been ED179915

not It

lions laid down in the law. The chartered banks must place their reserves with the Bank of Canada. So by the exercise of the powers flowing from these two great con- siderations it ls functioning in the interests of the people o! Canada at. the present time, having regard to the economic interests prevail- lng.

Currency and Cmllt

What is our great need Wllh re- gard to currency and credit. at the present. time, when we nri- just climbing out of a depression? Isrrt it our gteat and vital nerd that ciedlt, should be as easy as possible to every credit-worthy borrower, ln

be encouraged to adventure inhls

gasped when I budgeted for the mm] yea: and announced that I expected to be $100,000,000 behind this year. But think of the pro- gress in one year-a country $162,- 000,000 behind last year. If we can manage to have for this Y?" Only $100,000,000 of a. deficit; well, at least that is 862000.000 better. These figures are enormous, and I know that when anybody gets beyond five thousand dollars it has no more personal meaning to me. But. I have to think about these large amounts in rglation to the country's finances. Will we be able sufficiently to economize to lm- prove by $63,000,000 as compared with the year before? That is the question. ' Well, you know, things were com- ing along not too badly. Every index that I look at as Minister

commendation from any quarter with regard to the personnel of the board. Again, the remuneration is very small indeed. People are serv- ing much more for the honour 1n- volved than for remuneration. ‘they will decide the broad questions of radio policy, and they have re- commended to the Government the appointment of a general manager for the technical and scientific side. I received word today that Major Gladstone Murray, a Can- adian who has occupied a distin- guished position with the British Broadcasting Corporation, has ac- cepted the position of manager.

I do not think Radio will be free of criticism in the four years to come. Like other thinks it must evolve through trial and technical development. But I think —and Parliament unanimously thought-—-

thai . _ ‘serious things-Aim financial con-

‘ individual can.

benefit for himself and u. tho III- on and we hovo hm notiiina but I ' 1 - -

of Flnimce—business, carloadings, bank credits, production along var- ious Lina, all show an upward trend. The number of persons em- ployed, in the industrial reports submitted to the Department of Labour, is up; farm prices are up; governmental revenues up.

that we are on the right road with regard to the set-up of the Radio management.

National Finances

Now I come to one of the most.

dition of the country. I need not tell any Canadian of any political party how grave that situation ivas. and how difficult it still is, a1- though less grave than it was. I found this condition on coming back to the treasury" after five years‘ absence: I found an increase in the public debt of approximate- ly 5900900000. ‘When the fiscal year 1935-36 was closed-dhe year in which the Conservatives were in power for the majority of the time. while we were in power for the balance-I found that during that year the people of Canada through their Government had spent $162,- 000,000 more than they had taken in. Think of it! I am not ap- portioning blame either to condi- tions or to political parties. I am simply stating incontrovertible facts. I go further along that line and say that. during each 0t the last five years the deficits of Canada have averaged $l38.000.000. In other words, we spent. that. much more than we got. I use that. phrase be- cause it is a phrase that is fam- iliar to us in connection with our personal affairs. You know a gov- ernment is just like the rest of us. If it expends more than it gets, the result is the same as it t5 in the case of an individual; except that in the case of a govemment it can borrow a bit more readily and for a bit longer time than the But by the same token a people which goes on spending more than it gets to the tune of $13B.000,000 a year is soon going to find 1t mighty difficult. to borrow from anybody the amount that. it has overspent. And you know governments spending on be- half ot the PPJHIB of Canada, bor- row on behalf of the people of Canada-who from? Very largely from the people of Canada. Once let thelpeople of Canada become afraid that the promise to pay their gov- ernment is not good-and there will be no more borrowing at one- half of 1 per cent, on short term, at 1.40 on a. medium term, or at 3 per cent. on a long term.

The Drought Situation

Then, along in the month of July, came again that awful visitation of drought; over the major, part of the American West and the south- ern part of our own West. Arid because of that I am not so sure. Look at the difference it makes“ The area. is dried up; it is a5 dry as this floor, and there is no more growth on it than there is on this floor. ‘Phat area produces in normal years about 21.00.000.000 bushels of wheat. - Do you realize the effce of the loss of the hauling of 200,- 000,000 bushels of wheat on thefin- ances of this country; of the loss to the purchasing of the 200,000 people who are in that area? They have not got any purchasing pow- er now. Consequently right back across the country flowed a damp- ening influence. '.‘Dampen1ng" is hardly a good word, I suppose, to use in connection with a drought: but that 2011000000 bushels which will not be hauled means so many less men employed at the terminals at. Fort William and Port Arthur: so many less at the Great Lakes: so many loss in the harbour of Montreal, loading the ships; so much less in the way of goods, go- ing back to Western Canada. 1t. is a terrible handicap not. only to those people but to the country. And on top of it, all Canadians would be the first to say that those 200.000, people who, through no fault of their own have food for neither man nor beast, must be fed. That responsibility strikes first on the finances of the municipality, secondly on the province, and third- ly-in the case of a national dis- aster of that magnitude-on the nation itself. "

So any prediction which I might be able to make with regard to the financial situation at the end of the current year is qualified by what I know and expect may be the effect of the drought.

The Mining Industry

Cimlldﬂwe I "M55"? There are other nwwi-s which are

51-111 110W"! up, and which may to some extent offset the difficulty thus created. I am glad to say that our precious and base metal-mining inﬁll-WY is marching ahead at o. tremendous pace. I am glad to say them" 1s" one commodity about the price of which we do not have to ivorry: that. is, gold. We are find- ing it and producing it across that. great frozen North of Canada in Kreuter volume and to a greater ex- icnt than ever before in our history. Seeing the value of that tremend- ous production of precious metal in creating employment and 1n add- ing to the voliune of Canada's ex- ports andpurchasing power. the Government decided to give en- couragement to the mining indus- try. It. was given in this way, that. any new mine coming into com- mercial production for the first. time after the date of the Budget , -which was May lat-and prior to ‘the 1st of May 1940, would have- “ three years‘ freedom from Federal g income taxation, The intent of - that was to encourage men to go out and find mines; and having i found them, to encourage them to l bring them into production as quickly as possible, employing tﬁﬂ maximum of labour; because in so doing they would save ‘themselves taxation on the first three years‘ operation of the mine. And you k110i". ladies and gentlemen, that has had n moat remarkable effect on the industry. Men are taking their chances today in looking for and finding precious metals. Better than that, when a man has found something that locks good. he has a far better chance of interesting capital today, because capital knows that it has this free- domfrom uxctlonlfltgouhand

One of the most important things to maintain in any country is the confidence of the people of that country ‘in the eountrys promise to pay. Once that faith is lost 1t is virtually impossible _tc____cyon_tg“tnucy_ to conduct the ordinary amenities of civilization as administered by a government. So one of the first objectives of a man taking a job such as the one I assumed 1n Octo- ber last, was to endeavour in every possible way not only to so shape things as to produce within a roa- sonablc time a balanced budgei;— which merely means that you don‘t. spend any more than you get; that is what. a balanced budget means in simple terms-not. only to achieve that, but at the same time, as far as possible, to allow nothing to be done which would impair the con- fidence of the Canadian people in the promise to pay of their own government. And in that regard 1 am proud to be able to say that on every occasion on which it has been my duty during the past eleven months to ask the people of Can- ada. to lend their government money on its promise to pay-on ev- ery succeeding occasion they have loaned the money at a lower rate of interest. than the previous one. That is not a. very great. achieve- ment, but at least we have turned in the right. direction. I didn't ex- pect, having-regard to the stag- gering figures which I have laid before you tonight, to be able to revolutionize things all at once.

Tbe iisumma Deficit’

I think Mr. Sinclair will say 1 made no special promises in Par- llifiieiit. I told themdt would be In uphill road; and Parliament

develops. We believe the policy tobe a, sound one and it is giving evi- dence of producing the kind of re- sults that we expecwd from it.

Tariff Reduction:

The Liberal party was pledged to reduce the Conservative tariffs. Very considerable reductions were effected‘ by the enactment of the American treaty and in the Bud- get itself, further reductions were made, particularly in_ the British preference as applied to many

icommodlties. It is not generally wecognlzed by Liberals, but 1t is ‘true and can be verified, that the reductions in tariff effected at the last session of Parliament. in the United States agreement plus the Budget, constituted a greater reduction in the Canadian tariff than had ever previously been effected in the whole life of a. Parliament. There was more done by way of tariff reduction in one session that had been done in all the sessions of the old Parliament. Interested students can check that up for themselves.

With reference to agricultural implements, 1n which you are in- terested, the Bennett tariff, as you know, was 25 per cent. The Ameri- can treaty brought the rate down to 12 1-2 per cent. The Budget brought it down ms per cent; and it stands today at the lowest paint in Can- adian history.

Trade Policies

We believe that tariffs should be made to serve thq interests of the people of Canada. We believe they should be the instruments with which trade agreements are made with other countries, and we will pursue that line. We pursued it with regard to the United States treaty; we pursued it since in ne- gotlations with several other coun- t-rlx with very promising results. We intend to continue that. policy in the belief that Canada can be prosperous only by trading. We believe that all history demon- strates that as we trade more with other countries, so we trade more with each other at home. It. ni- ways has been so. The tremendous development in our trade which has followed the application of Lib- eral policies this year is the best evidence I can offer of it. And al- so, ladies and gentlemen, the tre- mendous development. in our trade which eveiy one knows is present and is reflected in the increased price of agricultural and other com- moditis which we are enjoying. And- it is not the end. It is not per- fect. But we undertook to turn this country 1n the right direction and that is what we have done.

Sales ‘Tax Increase

My colleague Mr. Sinclair refer- red to the Sales Tax. You know it is a pretty difficult thing to fit, to- gether all those various problems and make them all march along the same road. I have driven many kinds of motive pouicr: I have driv- en oxen; I never tried mules, but I have driven horses single, double. four horses, eight horses; I have driven a model "T" Ford. But trying to drive together each of the econ- omic problems I have been talking about tonight, and making sure that no one of them will get his feet tied up with the other fellows, is the toughest Job that. I have ever tackled. I can't claim to have it solved, either. I can only claim to be doing the best, I can from day to day; trying to find any mis- takes I have made yesterday and putting them right if I can; trying to learn from the experience of the past; trying to base action in the future on that experience. Some- how or other, if this country is going to be put in the right direc- tion to achieve a. balanced budget. something had to be done in the way of endeavoring to achieve a. balanced budget. Bome- thing had to be done to re- duce the deficits. We stiifﬁatl w find $50,000,000 for the Canadian National Railways, and $50,000,000 for relief: and I couldn't see any way around that, Mr. OhnlrmI-n- Whatever people may any. there 1s only one way to do it when you can't reduce expenditure any furth- er, and that is increase income. And there is only 0M WBY l0 in- crease income when V011 are a Government; that is take it out of you. You may M We" 1m 1t. “d!” and gentlemen. Every d01- lu 1n every public treasury comes out of the pockets of the people.

The fellow who comes around try- ing to get some "government" money to which he is not entitled is not settln! Bovcrnment money at all; he 15 Bvtlim; your money. S0 I had the unpleasant jcb of saying to the IIEJIIIB cf Canada; "Even though we keel! expenditure to the ,minimum, tlic 1:111 that we‘ ‘nave

for relief work and for Caliadm National Railways means that 1 must increase taxation." I increas- ed tho Income Tax and the Sales Tax.

I suppose you will condemn me 'I‘hat is your privilege. I 31,5; m you merely to withhold your con- demnation until the job gm 1 t,“ further along, remembering the H, fort which we are Illukillg to may“ these various economic pfnbieyyjs n1 march along one path, And ym know it is like having a mule 11m all 0X 811d a. horse hitched together and at the same time remember- ing that we have to satisfy m, Canadian people with what we .10,

The Sales Tax had to b1» l1.1(j1‘('as_ ed. Of course, it docs not apply m», most of the immediate ll0CP$iliie5 of life. I am not making .1113,» m cuse about it. I don't like 11 ,1 1m It. is not there because I want it It is there because I. as Flllfljjcm Minister~the Financial .\fi11i~tcr i; always the goat. of the GﬂVCflljnpnf ——could see no better way than m obtain the revenue l‘(‘('|llll'(‘(l,

The Income Tax has been m. creased particularly 011 ‘corpora. tions. It was raised from 13 per cent. to 15 1-2 per cent. on cor- porations. '

As Finance Minister in the pro. ceding Liberal Government I had the privilege of reducing the sales‘ Tax and of abolishing the 11111;. ance taxes, and coming out still with $45,000,000 of a surplus instead . of a. deficit. I am not forcastlng that it is possible again. But l think I would die happy if I could just get. back to that place again, because I would know then that this Canadian people not merely were on the right. road but were really marching along to prosper- ity and a. better day, That is why it would please me to be able p; introduce a budget similar to the one I had the honour of bringing clown in 1930.

Trade With Russia

I have spoken at greater lciictli than I intended, but I do no; 111s}. to conclude without making ~ ~ reference to some other mat‘. have opened the gates 11: to Russia, The trade between it and Canada has been 11111-111: 1 lutely for a number of yc.1r.~. 111 . one of the very few nniiuii. 11.1.1. docs not trade with that 1' Great Britain, United

France, Germany-mil but 11

n“. few minor countries. So the. visit 111 our Minister of Trade and Coin- meice was made "to 'Russia last siunmer, and the gates of trade an

one of ____ , -~~:¢-;_1

(Continued o; Fage 13>,

again opened. I am not

Purchase Graft For Merchant Service

(c. r. n; Guardian's SPNM] Wt"!

HALIIMX, sept. 25--The battle- scartiecl motor-vessel Jmwiihill" K‘ once known along the Atlantic MW board as "the pride of 1h" Y“! fleet" will soon ply between NOV! Scotla and Prince Edward Island in merchant service.

The vessel ls being 501d by C“? tain E. G. Skinner and J. M" Leod of Halifax m captain W"“““ White and Roy P. Crooks. ll" _Prince Edward Island men “iii- wlll use it- on result" Till“ 1mm“, Charlottetown and Hnlifﬂx-

The craft is well rememberfflyi“ Lunenburg as the one on will"?! Captain William Cluctt woo‘ F“ by ii United States coasiRH-"Wi "mm in a Christmas eve chase six 1P1"

than 011011110111 provisions in man

ago, off Staten 151111111. fh‘ Josephine K. still bears 0W1’ "l" h hm. p”; holes, the mars of that thrill chase.

The Geiitral Guardian

, m- _

This column In Itnvrrml for “"3 of loul lnlcrent but lilvotllnini‘ l a nanny nature mo! Y" ""°"“‘ ' h; cont: n word llrletly nnrlh" ldvlncr.

CARTIER, TO ASSIST IN SUR- VEY-The C. Ci. S. ‘_‘Cartlcr", CW9- RDBCh, of the nydrosrﬂphic 511"“ arrived ‘Thursday niBm {mm Chew camp, Ne. The ship will assist M. A- McKinnmL 0f the Marine Dorm" mont with survcll W°Pk in and “mm Charlottetown harbor.

wnanr conmrsan -bo-i<i¢'° with so tons of coal dlocharﬂd b1‘ f‘ steamship. a section of 001111011!" wharf on Charlottetown watch front collovled one nlzht- fPfTml-v The coal shipment consiiﬂm "‘ H. R. Large and Co was 105V

if} .

Mr. and Mrs. E. L. Week-K ‘m; for their home 1n Maine, ""3 having spent a very Plow“ "" with friends and xvi-MW“ °" m‘ Illﬂd-