‘WW9 and mm. chasm 2‘; us lnvuaum to 1-Mrvfi ' 0 ' ' Egmi. gioggsiomaivnihi Went‘! of interest nun « ‘’‘° W -."m‘l‘...‘.’3l ‘.‘l‘.‘lli ‘LIN’ mnootimh

MAY 2. I936__

C unning Improvement Slow But Consistent In

Financial Conditions

Dominion Governnientb “Over-All”

Expenditures Increased by Nearly Fifty Million Dollars in Past Year

OTTAWA. May 1.-'—(ClP.)—Presentlng a picture of slow but consistent economic improvement but warning that difficult economic problems remained to be solved, Finance Minister Dunning in his budget review in the House of Commons today disclosed in deficit of $102,191,000 in the over-all financial activities of the Dominion during ‘T5’. the fiscal year ended last March 31, compared with $116,-

‘ 134,000 a year ago. Making his second

$372,100,000 as the total revenue of

dilutes for all purposes of $534,291,000.

Total revenues were 010,220,000

total ordinary expenditures were $313,987,000, an increase of 514,237,000

ore: last year, but ll0.000.000 less siatute. Extraordinary expenditures tiohal Runways deficits brought the

A year ago a surplus was shown of ordinary revenue over ordinary expenditures of $2,700,000, but a dcflcit when sll expenditures were considered, of $116,134,000. according to Mr. Dunning‘s figures.

The Minister explained the pres- ent government was in power slightly over five months of the last fiscal year.

Unemployed Not Diminished

The Minister quoted figures to show I “real and‘ steady" improve- mnnt in the economic situation. but removal of unemployed from relief rolls was not keeping step with ex- pansion of industry. Wage rates ivci-c pizher and there was less part time employment.

While trade of 24 leading count-

budget speech since entering federal politics. the first having been delivered six years ago today, Mr. Dunning gave

rles had increased 4.1 per cent. Canada's trade had increased 11.8‘ per cent. the Minister said, and the Dominion had moved from eight’ to sixth place among the nations in world trade.

li1\|1ol‘Ls during the fiscal year, weixl valued at $502,803,000 as, alzsiinsi $522,416,000 the previous} ,\'t‘nr. whilc exports. excluding gold coin and bullion. were $'l65,6i5.000. compared with l05i).809.D00. A total surplus of exports over imports‘ wssshown amounting to $210,000,000 v apart from gold or invisi-b‘e ex- ports. To this the speech added $110,000,000 in gold exports and an estimated favorable balance of $110,000,000 in tourist trade. bring- ing the total surplus to $145,000,000 which would be a valuable item in mrctiug foreign commitments.

After detailing the steps already inllcn to cxpand trade, such as the Canada-Uliltcd States agreement allli the adjustment of differences with Japan, the Minister said it was proposed, in the near future. to open active negotiations with salami other countries for bilateral agreements "and the removal oi hindrances now hampering inter- Il£ll.lI‘.i'18l trade."

Aitciitloii was now being given trade relations with the United Kingdom, the Minister said, "and I am lumpy to be able to state that d:.<: ssious will shortly take place, hc. r-in repesentativcs of the two’ gc'.'ci'l1menis."

Relations with Provinces

Mi‘. Dunning made special refer- ence to financial relations’ with the Provinces and observed that the future was “clouded" by the "un- certain" financial position of some of the provinces. It was no secret. he said. that for some years the cindil. of the four western provinces had been maintained by aurlporl ‘mm the Flederal Treasury dupiifi heroic efforts by the Provincial Governments to curtail expendi- tures.

it was the intention of the Gov- crnment, the Minister continued. to llroceerl with the Loan Council scheme with some modifications. Ila mentioned with regret the rec- ent default by Alberta on a. bond mnlurnv and remflrksdlnai. both I:‘rltLsl1 Columbia and Saskatchew- in were finding it possible to meet bond maturities this month with- out help from the Dominion. the —latler through the Bani: of can- Idn. pending puns: of loin coun- cil lerialstlon.

Innis in provision under various "ii" tots had new rushed 0110.- MM. having been inmusn aur-

the Pmln ' omen»?-'1.‘ “"'“. ‘i.“."'.€l."i?.ii°".2

Eiiiiig ‘ § E i

the last fiscal year, against expen- better than the previous year but than was authorized by vote and

such as relief and Canadian Na- total up to $534.29l,000.

FREER iifllfi: WITH BEiii|ilM ANi|illlfATEll*

(C.P. by Guardian's Special Wire)

iiliiliam—w$ BIG GAINS IN lilPinl_ TRADE

Benefits of Bennett Empire Trade Pacts Shown Gonclusively

. by Liberal Minister

(C.P. by Guardian’: speclsl

Wire)

OTTAWA. May 1—(C.P.)— During the 11 months ending last Feb. 29 the British Empire purchased from'Csnada goods worth $362,110,462, Finance Minister Dunning informed the House of'Com1nons In his hud- get address today. For the suns period the preceding year the value was $313,005,022.

Imports from the British Em- pire totalled lltls.429.800. against s14a.9sa,s14 in the some 11 mcnhs of the 1934-til fiscal

year. (xnadlnn exports to the

OTTAWA. May i—(C.P.l—Can- ada expects in the very near future‘ to negotiate trade agreements with} several important countries. Fin-i nnco Minlsier Dunning anrloulicedl in his budget speech today. serlousl attention was now being given‘; Canada's trade relations with the- Unitcd Kingdom. he said. i

Canada has removed the 1935;‘ specific duties on Belgian rabbit skins. dressed and dyed. In return. Belgium has agreed to remove the iiimover tax imposed on Canadian goods cntcriiig that country. In ad- dition, Belgium will hl future clus- sify as “Chedda'r" the cheese im- ported from Canada.

“These concessions, the removal,‘ of the heavy turnover‘ tax in par-‘ ticular; should stimulate ‘our ex- ports to Belgium in many lines of goods," said the Minister.

was shown that taking an index figure of 100 for 1926 interest rates in Canada had dropped in 1036 00 09.9.

Three Billion Net Debt

Gross liabilities of the Dominion at the close oi the fiscal year riinoimted to 03.432.000.000. which. alter deducting cash and invest- ment assetts, left a not public debt oi $1-1,008,000,000 which Mr. Dunning said was an increase of $867,000.- 000 in the six years since he DI‘?- scnted the last. budget of the Dom- inion Government.

While cheered by evidences of recovcry. he saw in the 011555003 yet to go and the problems yet to be solved the most impressive and at the same true the most distress- ing features of Canada's economic record. Improvement. however. was real and steady.

The business cycle was currently establishing higher levels. In March this year the economic index of ihe Bureau of Statistics stood at 103.3. compared with 94.2 in M&l'°h- 1935. In Feb. 1933. the lowest point of the depres=lon, the index was 67.0.

For the first three months of the present ca‘endar year manufactur- ing of an kinds showed an average expansion of 8.5 PM‘ 09“? I-'“m‘b°' production on the Pacific Coast 110.5% ,9“ was 20 per cent greater t an in 1934. and had reached the hiflh‘ est point since 1929.

"The Dark 5134""

k 3 as sgricufllre .1335 ‘lillfirt ya: suvlfered climatic

United Kingdom jumped ap- proximately 510.500.1100, imports S5.500.000.

“Within the Empire." said Mr. Dunning. “the increased p"ur- chases from us were distributed as follow: The United Kingdom 15.6 per cent. Australia 35.! per

' cent, New zealand 130.1 per cent, South Africa. 7.1 per cent. Ex- ports to British India drop'ped 17.2 per cent."

An upward trend in Canadian imports from Empire countries was also indicated. This increase. the Minister said. was shared as follows:

From the United Kingdom 5.4 per cent. Australia is per cent. British India 13.4 prr cont. New zoaland 21.7 per cent, South Africa. 41.3 per cent.

prices. Total farm revenue in 1035 was $943,081,000. an increase of less than one per cent over the previous year; but most disappointing was an eight per cent drop in the value of the principal field crops. chiefly as a result, of the price factor. Wheat prices were generally higher. hilt grades had been lower due to rust and frost. The livestock in- dustry had shown considerable im-

provcnlent. Cost oi money had fallen in March to the lowest figure since

1919. probably ill: lowest on long- term funds in Canadian history. Unfrotunaiely these low rates were not available to all borrowers. par- ticularly the most needy who were not usually considered most credit- worthy.

In 1935 the total volume of new issues by all borrowers was about $57l.000.000. an ll‘lCl‘€llS€ of $83,000.- 000 over 1934. Of this total 3325.- 000,000 was for refunding, the bal- ance for new capital purposes.

Tourist traffic last year was worth $201,000,000 against an ouigo of $91,000,000. about $110,000,000 in favor of Canada.

Revenue Vs. Expenditure

In the statements of revenue and expenditure for the fiscal 1'08!‘ 1935-30 figures were subject 00 ad- justment as accounting was not completed. seven months of the year had elapsed before the govern- ment cainc into office and commit- ments of the former

in financial policy.

hazards, restricted markets and low

following table:

SUMMARY 0!‘ EIVENIJI AND EXPENDITUIIS

Ordinary lilrpenditums — -- - — Ordinary Revenues -— - — —- — Deficit on ordinary Account- - apecisl Expenditures —- - - -— Ilsssapoclsl Receipts — - —- — Balance-----—————----— Md capital Expenditures — — - gopell-nmont Owned Imerorluo — -

9. .._...__.._.._.__....

Add deficit on ordinary account -

'l\‘lMl «not or lacrosse of not 6006 —

TAX. IIVIIUE

oilstornsimportdutiu-—--— lnclnau

m....a.._..__..._

WAI TAX IIVIVIBI

1lonIs———-—-------

fmiirsncscompsniu——- --——-- msomvml

_.-...._-n-—._-—.n.-.—

g)g.1\u.......................-_.

'lmm’Mi.lOl'lIiIll|9.CflM-

cumin por&tlolstI:oI.oM.-—----—

|fgguggo|¢............_.___.

Total revenues from taxes — - —-'— — —

Non-tax revenues «- - - - -- - Totsl ordinary revenues - —- - —

smull-y marina and cream ---_.'.. .1 .. ..

'n'ltslrcvermoI--------

government prevented any important changes

Revenues for i.he two years im- mcdistely past are shown in the

THE__ CHARLOTTETOWN GUARDYAN

Reveals Total Deficiil

lunullglllcl

CVPTAWA. May i—(O.P.)—Ex-I cerpts from today's budget lddress. by Finance Minister Dunning.

"One cannot view the picture broadly without realizing that im- provement-—l1:1wcver gra.dual—is real E and steady, and that the general; undertone is one of definite; strength."

0 0 O

"The upward swing of the busin-i css cycle is currently establishing, higher levels of activity generally, throughout the industrial and com- mercial field."

0 0 0

“Every step which helps to pro- vide markets for agriculture brings nearer that day when the Canad- ian farmer, receiving more for his products than it costs to produce them. will once more provide, through the stimulus of his pur—1 chasing power. a sound basis for national prosperity."

one

“It has long been clear to every- one, I believe, that this process (of making unsecured loans to provin- ces) can not go on indefinitely."

0 0 C

“We are rapidly rca.chlng—if we have not aready reached——the ini- posslble position where the Domin- ion Government will be the largest single creditor of those provincial: governments." O

o 0 "Loan council legislation would‘ merely pmvide machinery which. any province might take advantagei of if it considered it to be in accord- ance with its own interests." 0 I 0 "since March 31 the govemment has not had any statutory authority to make loans or give guarantees to any province." 0 O C '‘It was a matter of great regret to us that the government of Al-‘. berta did not see its way clear to‘, accept the conditions under whiclil alone our assistance could have been made available." 0 0 O “The Government will proceed with the resolution designed to in- itiate the proposed constitutional amendment (to the British North America Act) and thereafter with the legislation providing for the establishment of loan councils and a national finance council." 0 C O “The record of Canadian secur- ities in the investment markets of the world has been a most enviable one. It would be unfortunate if that record were seriously marred atl this late stage when the outlook up-i pears to ‘be for continuing recov- ery.“ I t 0

‘‘As long as we ha.ve an economy based on private entcrprise—bssed on the willingness of thousands of‘ indi\'ldua‘s to make corminitmcnLs for the future in the licnpc that profits will acc1‘uc—-so 1011': Will‘ the factor of ccnfldcnce play an important part."

.

o a

“Foreign trade is the very life- blood of Canada." 0 I

"Tile conclusion of this iCanada- United states) trade agreement is probably the most siqnlflcalit step taken by two leading trading na- tions to reverse the trend of econ- cmic nationalism."

. . .

"It may be expected that steps will be taken in the near future to enter into active negotiations for, the conclusion of trade agrccments with several ll'i‘I|')Ol‘t8Ilt countries."

0 I 0

"I am pleased to be able to rc- port. for the fiscal year just ended, on important gain in our total trade with other countries. amount- ing in round figures to 51.52.000.000. This is an increase of 12.8 per cent over the previous year."

EXtEliPii£fRllM Seeks To Repair

lidvers-ye ‘Effect Of ll. 3. Treaty

Dunning Removes Duties O n British Textiles } To Offset Concessions ; Underweshington Pact

1C. P. By Guardian's Special Wire)

OTTAWA, May 1——Do\vnward re- vision of the customs l‘l"ill an- nounced in Finance Mil‘ 5 1- Dim- 1iing's budget speech rod. : ad be- coming effective at midlliglit. 111- clude the removal of specific duties on British yarns and fabrics of col- ton and artificial silk, reduction in the intermediate duties on clothing and articles manufactured from cottons or artificial silks, reduction in intermediate tariff rate on gaso- line from 2 1-4 cents a gallon to one cent, the $100 exemption to tourists returning from abroad. and the amendments to automobile rates.

“The reference to the tariff. board on yarns and fabrics of cot-i ton," Mr. Dunning cxplained,E “arose from a. request by His Maj-| csty‘s government in the United Kingdom, under the provisions of the agreements of 1932, for a re- vlew of the duties on those goods under the British preferential tar- iff. The board was obliged, there- fore, in its appraisal of the situ- atlon—domestic and Britisl1~io use the yardstick stipulated by those arzrzcnients, namely, the equation cf the relative costs of production in the two countries. The board has kept within the terms of its reference and within the letter and spirit of the agreement; and the government desires to do the same.

Specific Duty Removed

“It is proposed. therefore, to re- move entirely the specific duties on yarns and fabrics of cotton, un-v dcr the British preferential tariff.‘ It is proposed, further, as properly following the reduction of yarlts and fabrics, to revise the specific duties applying to cotton clothing. wearing apparel and manufactured articles of cotton, by reinoviiiq these duties entirely on imports; under thc British preferential tail‘-' iii and by reducing them by one- half on imports under the inter- mediate tariff.

“In accordance with the results of the board's inquiry into the tar- iff situation surroundlng nrtificial silk, it. is proposed, under the Brit- ish preferential tariff. to remove entirely the specific duties on both. yzlrlis and fabrics. to reduce also! the ad-valo1'L=m rate on acelaiei yarns and to adjust the ad-valorcm I rate on the fabrics.