By DON PEACOCK Canadian Press Staff Writer OTTAWA (CP) —— Like ocean

tides, money in its various forms is constantly ebbing and flowing through Canada’s economy.

It surged upward recently when the federal government borrowed $400,000,000 for five months at 2% per cent annual interest from the chartered banks and the Bank of Canada.

To the uninitiated it sound-s paradoxical to say the govern- ment, by borrowing this amount from the banking system, crea- ted $400,000,000 in new money. But that is the effect, and there is an explanation.

To understand how borrowing money from the banking system can create money, it is neces- sary also to remember that money has more forms than cur-

ebbed ’ by that amount.

ing, or bartering, them. [CONFIDENCE IN MONEY

might become worthless.

eryone accepts it.

When the government redeems these bonds five months from now, its bank account will be down by $400,000,000. Thus the over-all supply of money in the term of bank deposits will have

It’s a kind of magic carried on with paper and bookkeeping en- tries. Yet it works because using money in its various forms is a more convenient way of exchang- ing goods and services than trad-

People also have learned that they can accept Canadian money —ln bills or bank deposits rep- resented by cheques —— without fear that suddenly at any time it

Everyone has faith in it. Ev-

The money created by the gov-

rency—«dollars and cents. While money exists in the for

ernment's $400,000,000 loan may m be turned into dollars and cents when the government uses it to

Money Surges Upward As Huge Sum Borrowed

hands but no one has touched any dollar bills. Money in the form of an entry in the government’s bank book has been transformed into money in the form of .an en— try in the family bani: book.

Decide Drowning Was Accidental

CAMPBELLTON —(CP)— An inquest held with the Restigouche County coroner, Dr. J H. M. Rice of Campbellton, presiding, (fwnd the death of Rollie Smith June 21 was an accidental drowning. No blamewas attached to anyone.

The 24-year_old Campbellton resident was drowned in Wilson’s Lake eight miles from here,- when his rented fishing boat overturn ed. Smith’s companion, Maurice Parker of Campbellton. failed in rescue attempts.

GRAVEL TRUCK IS DAMAGED

The photo above shows the

damage received by a gravel- 1aden 3-ton 1955 Dodge truck, /

William Earrell Dies In Ch’town

death of Willem M. Far- rell of Milltown Cross in his 83rd year occurred suddenly at Beach Grove Charlottetown on Friday July 18. The late Mr. Farrell was born at Sturgeon in 1875 and was married to the former Mary Gallant who predeceased him a umber of years ago. Although without the use of-hi-s sight

birth, Mr. Farrell was througbwt the Maritimes as an ardent musician, having compos- ed many songs which native and former Islanders delighted in ob-

He also spent much of his time in tuning and repairing wind in- struments in his many travels. He was for many years the or- .- ganist in-St. Paul’s Church, Stur-

geon. ., qll. He is survived by one daugh- ta‘ Lauretta (Mrs. Philip Steele Pictou, NS.) and two sons Igna- tius in Trenton N.S. Basil at Milltown Cross. , A daughter Erner Mae (Mrs? Joseph Gotell) Georgetown) and two sisters Annie (Mrs. Jos‘eph Dunn) and Sarah Predeceased him several month ago. The funeral will be held this morning Monday July 21, from. the home of hisson to St. Paul’s Church, Sturgeon at 9 a.m. ‘ Interment will be in Church cemetery. ‘

EASTERN GUARDIAN

'ro HAVE YqUR lawns pro- ll perly cut, phone 150 or ‘con- tact Earl Clair” Montague.

DANCE, PEMBROKE School, Thursday, July 24th. Music by Archie Stewart and Stanley Bruce. Canteen service. '

NOTICE: We are still open to buy good strawberries. Montague Cold Storage. '

i“ PERSONALS "

The sad news was received by Mrs. Dan M. MacDonald, Mon- tague, of the death of her mother ‘ Mrs. Levi R. lugs Downey, Calif, formerly of Ch lottetown, P.E.I., on «July 11th. Burial. was ‘ in Downey, Calif. J

Captain A. A. Mosher and Mrs. , Masher, have returned to their home in Montague, after spend- 1 ing their holidays at the home of their sons, Robert in Dartmouth and Cecil in

Hen Lannigan, his sister Vivianryand her husband Bill B_e- - dell, ldt for Hamilton, Ontario, after vacationing at the home .of their parents Mr. and Mrs. Nic- _ holes Lannigan, St. Mary’s Road.

Miss Margaret Lowery, Mrs. Ellsworth Ross, and Master Gar- net Ross, spent some tune re- cently in Halifax, Windsor. and ‘ Ke‘ntville, N. S. In Halifax they

were the guests of. Mr. and Mrs. Archie Blackburn and Mr. and Mrs. Reg. Roberts. They were accompanied back to the Island

by Bill Lowery, Halifax-

Mrs. John Clair, Montague, ac- companied by her son bruce, and granddaughter, Miss Gail Mc- Keema-n, left yesterday on a, visit to, Milltown, N,13., where they will visit Mrs. Clair’s daugh- ters. Harriet and Helen. They expect to return on Sunday.

Miss Florence MacDonald, Montague, left last Week by plane to visit her sister, Miss Marcia ' MacDonald and her brother, ' David, in Toronto.

Mr. and —Ray Llewellyn and _ Children, Cathie and Wendy, and Mr. Lorne Llewellyn, left on Thursday on return to Hamilton, 7 Ontario, after spending the past two weeks at their home in Montague. They were, called home because of the illness and death of their mother, Mrs. Ells- Worth Llewellyn.

SHOULD WITHDRAW

' NEW DELHI (AP)-—-The Indian government said today the United States and Britain should with- draw lheir troops from Lebanon and Jordan. In a prepared state- ment released after a cabinet meeting. the government said it was “against intervention by for: Elgn forces in any country and thinks lll(‘_\‘ should be withdrawn." A fore 2n ministry snokesman said ll’llS refcr’cd dl“ct"ly to Jor- dan as well as Lebanon.

driven by Raymond MacKinnon of Murray River, when it 'went out of control and rolled over in

Hoying Is ‘ Easier With‘ New Equipment

_OTTAWA, —. A recent innova- tion known as the Hay Bale Stooker is a useful ‘piece of hay- ing equipment for smaller farms. This machines consists of a platform pulled behind the hay baler and it leaves stocks of six bales. A tractor equipped with a steak loader can lift all six bales and load them on a wagon. There are also several types of field bale loaders that. will pick up individual bales. . - Although two men are. needed to bale and steak the crop, A. I. Magee of the Ceatr Experl. mental Farm points out that the same,two men say later pick uprthe bales andstore them. This, he says, reduces the size of the crew needed. for the over- all haying operation.

One inexpensive type of loader is an attachment for a bayler_ This comists of a‘chute at the rear of the machine that directs the bales into a trailer wagon where a man arranges the bales on the platform.

THROWER '

Another recent development uses a bale thrower on the baier that tosses the bales into a wagon box. One man can operate the baler and load the wagon.

Both of these methods however. need a crew of men to unload the wagons and several wagons are needed if the baler is to oper- ate continuously. Normally this can be done economically only on larger farms where a large quantity of hay is handled each yeah I . . ,

Liberals" LaUnch

DRUMMONDVEUE, Que. €-CP)—‘Hon. Jean Lesage, leader of the Quebecliberal party, said Sunday Liberals throughout the province have launched an all- out offensive against Pre- mier Duplessis' Union Nationals. government and stand ,ready;for a provincial election.

Mr. Lesage‘ told "'more than 1,000 persons in the Canadian Le- gion hall of this industrial centre 63 miles sbutheast of Montreal that the provincial Liberal organ- izationis being manhood at the local and regional as well as the provincial levels. ‘ Conventions to nominate candi- dates for the next election were to be held'during the next few The Liberal chief spoke tollow- ing the first nomination conven- tion organized by the party Since he asked the premier to either establish a royal commission in quiry into a provincialgas trans- action or call an election. A Mr. Lesage made that request to the premier following a series of articles by the Montreal news- paper Le Devoir about the sale of Quebec Natural Gas Corporation. The paper said a $20,000,000 stock market coup marked' the transaction, but the corporation stated there was nothing irreg- ular in the deal.

Songwriter Quits Job Is Too Tough

r012on (CPL-(Eddie Foley, a Toronto songwriter for 50 years, has retired with a parting note of advice to aspiring young Cana- dian tunesmitlls: “Don’t do it. Author of more than 100 songs, Mr. Foley said Saturday he ‘15 quitting the field because: _‘It takes too much etfort; too much expense.” I He said there is no market for a songwriter in Canada because the country’s top entertaian prefer United States hit songs. F-oly admits, however, that his career was not unsuccess- ful financially. Although he kept on his job as a meat jobber he says songwriting gave him a fairly good income. CITED BY IKE

His best number was When the Boys Come M a r c h i n g Home which he turned out during the Second World War. It brought him a citation from General ‘El- senhower and sold 23,000 copies.

Mr. Foley wrote his first song, Candy Boy, in 1909 and won first prize when his brother Howard, then seven, sang it at an amateur contest in the old Gale-Ly theatre.

His first hit was Dreaming of You in 1910. His last tune, Little Miss Playtoy, was published last

monthv

the ditch near Hermitage. The dr1ver escaped with minor in- Jur1es. The truck is owned by William Millar of Murray River.

Guardian Stuff Gets New Spuds

On. Friday afternoon the first “fruits” from the garden of Os- wald Collins, Montague, in the form of a basket of Irish Cob- bler potatoes, was presented to the staff of the Montague Guard- ian office. Being an avid gard- ener, Mr. Collins planted the potatoes on May 20th, when most people were still appreciating the warmth of winter apuparel. r

Even earlier were the potatoes from the garden of George Preece, Montague, when his fam- ily enjoyed eating the first new potatoes on July 5th. Besides his vegetable garden, Mr. Preece has a vivid flower garden bloom« ing from early spring to late

[has turned over its five - month

of currency, it also exists in the form of bank deposits, which are literally nothing more than en- tries in bank books. But they are daily transferred from one per‘ son’s blink account to another’s through the simple means of writing out cheques. CREATED $400,000,000

In the case of the govern- ment’s loan, what the banking system did, in effect, was create $400,000,000 in bank- deposlts out of the air, in exchange for the government’s promise to pay back this amount in five months. Every fime a bank makes a loan to anyone, new money is created in the same way., The money supply swells by the amount of the loan. The money supply drops by that much when the loan is repaid. In other words, the government

bonds to the chartered banks and the Bank of Canada, or central bank. These institutions, in re- turn, put an entry in their books crediting the government’s ac- count with the dollar - and - cents value of the bonds.

Britain Orders

que must be cashed. lit a mother merely

pay its bills;- when it sends out your family allowance or old age pension or seine other'cheque. For this conversion from bank deposits into currency to occur, of course, thegovernment’s che-

deposits her allowance in her own bank

Want Better 0 Tax. Deal For

families.

day convention here. ‘

account, money has changed

Working Women =

EDMONTON (CPl—A working women’s organization Fri- day urged the fedepal government to provide a maximum $1,000 in- come tax exemption for women who need housekeeper services while they work to maintain their

The Canadian Federation of Business and Professional Women’s Clubs unanimously sup- ported the resolution at business 56" sessions on the last day of a four-

The resolution said many

fall.

/

Commons Will

Sultan Exiled

women in the labor force are wholly or partially responsible for maintenance of members of their families and frequently ne. ' to

Air Hostess Is Indicted

TOKYO (CP) — A Canadian Pacific Airlines hostess has been indicted on a charge of smuggling $41,666 worth of jewels in a false suitcase bottom into Japan.

The Tokyo district procurator Tuesday indicted Miss Patricia Won-g of Hong Kong for violating Japan’s customs regulations. She was suspended from her airline job pending completion of the in- vestigation. "

Police arrested Miss Wong June 18 after she arrived from Hong Kong ,at Tokyo international air- port. They claimed they found 800 diamonds and other gems in her suitcase. ' ,

Violation of the customs law carries a penalty of a three~year jail sentence or a 300,000 yen ($833.33) fine or both.

Date for the trial hasnot been

CREDIT BALANCE UP OTTAWA (CP) -— Consumer credit outstanding on the books of sales finance companies in- creased in May for the second consecutive month after monthly declines since last August. The

AII‘OUT Offensive -

Speed Up Work

OTTAWA (00?) -—;‘The govern ment, seeking to speed up Com- mons work, plans to extend Com- mons sittings starting next week by meeting on Friday evenings and on (Saturdays, it was learned authoritatively Friday.

The Commons, which now meets a: total of 25% hours a week, would add 7% hours for a'total of 33 hours. Notice of the govern- ment’s intention is to be given to day. ' ,

Th e additional sittings are

work with the aim of finishing sometime in August. Virtually all of the estimates, some of which now' are before committees, and the, bulk ofthe govenmnent’s leg- islative program still remain to be passed.

n

The session started May 12.

Lebanese Gov't Takes Village

By WILLIAM L. RYAN

‘ BEIIRJUT, Lebanon (Am—Pro- .government forces counter - at- tacked'in the hills above Beirut Thursday and recaptured Ainab village. '

The anti - rebel move was by 150 national police

and vigilantes in the presence of

four neutral Irishmen serving as United _ lions observers.

The Rush officer-s happened on :the battle staging area just be- fore the counter-attack and were pinned dowr until-it was over. They watched firom behind walls.

The rebels were dislodged from the southeast positions over- looking the capital.

Fire from rocketrfirring planes, armored car guns, mortars and machinenguus preceded the two:

aimed at speeding up .sessional ~

wNDON (Reuters) ,—, Britain Thursday exiled and withdrew recognition of the 36 - year - old sultan of Lahej, ruler of the big- gest state in the West Aden pro- tectorate.

Colonial Secretary Alan Len- Dex-Boyd told the House of Com- mons that the sultan, Sir Ali Ab- dul‘ Karim, had advance know. ledge and “conniv ” in the de- fection last month of some of his troops to Yemen. The Arab king- dom oh the southern tip of the Arabian peninsula borders on Lahej and claims the protectorate territory. - Lennox-Boyd said, “It has been necessary to inform him that he cannot be permitted—at'any rate

for the present — to return to: Lahej or to Aden colony or to any

part of the Aden protectorate."

The 36 - year - old sultan suc- ceeded his brother in June, 1952, as ruler of one of the 19 sultan- a-tes in the-western Aden protec- torate.

The sultan was elected ‘by the traditional electoral body of the state. .;

manner EXPERT DIES

MONTREAL (CH—(Forgery ex- ‘

pert Herbert J. Walter oiChicago and formerly of Winnipeg died while visiting here» Wednesday. He was 78. His skill at detecting forgeries and identifying hand- writing had made him an import- ant'witness in his day at such famous trials as that of gangster Al Capone on income tax evasion and the kidnapper of Charles Lindbergh’s child, Bruno Haupt- mann.

mile drive down the valley from Chemlan to regain Ainab after it was taken earlier in the day by the rebels. Shells set off florest

fires in the hills.

Through Small (masses

, , NETHERwooD THE ROTHESAY SCHOOL FOR GIRLS

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Courses from Grade VI to Senior Matriculation Highest Academic Standards Achieved

Emphasis on Development of Character and Individual Talents Bursaries and Scholarships Available ‘

School Opens Sept. 17, 1958.

For bother information and illustrated prospectus write to the

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L

rowu

Buying live fowl Tuegday and Thursday

each week. Top market prices!

PRODUCERS CO-OP

Charlottetown

hirehousekeeper services.

home, to

The exemption would apply to single as well as married Women who havifitao work outside the

p the home going,

bureau of, statistics Wednesday reported the end-ofJMay total as $772,400,000 compared to $700,200,~ 000 a month earlier and $701,100,. 000 a year earlier.

Theatre

MONTAEUE

MON-TUE.

JULY 21-22

' ADM. 30—46

- snows AT 8:30 PM. ..

* "SHI'RALEE" ‘ Pump FINCH EIJZA'BETH'SSELLERS

He wasa man with a big burden, his shiralee. A little girl, his burden, makes him wander, and! his exploits with her make a wonderful movie.

COMING WED.-THUR. “TEACHERS PET”.

Patriot.

/ . NOTICE To - PATRIOT SUBSCRIBER‘S‘

‘Pofrior subscriptionnccounfs ' may be paid at the Montague. Souris or Summer- side offices ofxThe Gilardiun and. The

The Guardian —The Patriot

Engineers Wln Scholarships

OTTAWA (OP) ~— Two Eastern Canadian engineers were among those who won scholarships of $2,000 each for postgraduate stud- ies in the highways and transpor- tation fields.

Announcement of the names was made Thursday by the Cana- aidn Good Roads Association which administers the scholarship program.

They are:

A. M. Stevens, Marysville, N,B., associate professor of civrl engi- neering at University of New Brunswick, tor study at the Uni- versity of California.

W. J. Ross, Fredericton, N.B.,

berta.

Conadoir’s Top Engineer Dies

MONTREAL (CP) —- Everett B. Sch-aefer, 51, New York-born chief engineer of the aircraft divi- sion at Canadair Limited, died in hospital Wednesday nighh of a brain tumor.

He came to Canada in 1949 af- ter serving with aircraft ‘com- panies in England and the United States. .

Mr. Schaeier was an associate fellow of the Institute of Aero- nautical Sciences, a fellow of the Canadian Aeronautical Institute and a member of the American Rocket Society.

FATAL JET CRASH

OTTAWA (CPL-E0 John Barry 'l‘albott, 26, of Lethbridge, Alta. died Thursday when his RCAF Sabrh Jet crashed near Heidel- berg, Germany, air force head- quarters here said Friday. /

for study at the University of Al- \

WANTED "

50,000 ft. logs, 8 ft. 2 in. ,‘ long, ’5 inches small end and

KING'S LUMBER MILL '

“Come one Come all

to the United Church

TEA PARTY

on Wednesday, July 23rd,

hiring' — Sports, Refresh - merits, Supper, Concert at night. ‘

DANCING ' 9:30. 12:30

‘ MONTAGUE, , July 21st.

Sponsored by Ladies Cur- ling Club. Music by Down- towners Quartet

Pu per Refuses v "

To Refract '

MONTREAL

(CP)~Le Devoir. ., says in a statement that it has been asked by Lieutenant - Gov- ernor Onesime Gagnon of Quebec to r e t r a c t declarations made about him in a series of articles on a provincial gas transaction. But the newspaper says “we re- fuse to retract anything whatso- ever and we are ready to defend ourselves before the courts."

The statement, signed by pub=

Monday; July 21, 1958 The Guardian Page 5

lisher Gerald Filion, says Mr. Gagnon asks that the Montreal daily “retract completely entirely and Without reservation all the in- , sinuations, assertions, accusations formulated against him" since June 13 when it launched the series.

OTTAWA (CP) —- Leather foot- wear production in Canada de- clined 1.1 per cent in the. first quarter of 1958 to 14,744,637 pairs from 14,911,532 in the correspond- ing period last year. The bureau of statistics said Thursday that April output was down by 1.5 per cent to 3,784,572 pairs

exchange€"E

victo ry bonds

PROFITABIY:

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Extra! Sports -— Cartoon Shows 2:30-7.‘9 v

TO-DAY-TUE.— CARIToL ' -

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Box Office Opens 7:30 Show at Dusk

, Final To-night—Bacing Thrills in Kentucky

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