sum 28. 1950
run GUARDlAN
uuAku7rrETOWN y . ,
iiievaiustlon consequences i
MONTREAL Jll1Y2'I-Rnvlh
ustion of the Canadian dollar to parity with its U. S. counterpsit might prove premature at this time. the Bank of Montreal sug- gests in its latest Business Review. issued today. Devotind the current commentary to an analysis of the cases for and against revalua- tion. the B of It also concludes that much could be said for a flexible rate. responsive to changing con- ditionl.
On June 5..the repo'rt begins, the Minister of Trade and Comma-cu told the House of Commons that, while the present discount on the Canadian dollar might continue
-for five years or ten, there was al-
ways a possibility it might not con- tinue for "very long." He added that certain factors made him doubt whether the period might not be shorter rather than longer. "It would not appear." the bank says. "that the foregoing comment, made rather casually. and indefin- ite as to timing. should be con- strued as anything more than the expredon of a personal. view. Governments do not obiigingly an- nounce the imminence of rate changes. The technique. for reasons readily apparent. must rather be that of the 'bolt from the blue.' "
,,Tradc Balances Shift
: To aid consideration of the in-
fluences underlying the dollar's exchange value. the review coin- pares Canadian merchandise trade for the first five months of 1940 and '50. It notes the "almost spect- acular" reduction f both Canada's adverse balance of merchandise trade with the United States and of its surplus in trade with the United Kingdom. The concurrent narrowing down of these contrary trade balances is in itself a cause for satisfaction. But it is less grat- ifying that progress toward equil- ibrium" in Canada's overseas trade was largely effected by reducing exports-to these traditionally im-
portant markets, a reduction not quite offset by buoyant shipments to the United States.
If Canadab dollar were moved back to par U.S. and if sterling and other important currencies re-
mained at p t 1. 1. gm”. of Anseilcantufttlhdl. vibe: of M
'""”u ""9 u. 10111 Is business '
activity in the United states con- "'"i9 Ii "-5 Weaent high level, the dearer dollar would probably have little or no effect on the volume or Canadian goods moving to that m”'k9i- .30W0Ver. I higher price for the Canadian dollar could be Flftectsd to-impede Canada's ex. ports overseas. But. in the opposite d1P90910lI. thelreturn to parity. if Unlccomvnnte by similar action on the part of other countries. would automatically cut the price of an other currencies to the Canadian importer. The additional incentive to Canadian purchases from over- seas countries might ultimately improve Canada's export prospect; in their markets. At the same time. the ” appearance of the present premium on U. s. funds would also facilitate Canadian purchases of goods from the United States.
Risks of Ievaluation '
"The immediate consequence. therefore. could be an increase in imports from both dollar and ster- ling areas, a deterioration in our already rather pvrecariously poised over-all balance of international payments and. conceivably, an in. creased reliance on import con- trols as contrasted with the pres- ent relaxation of these barriers to trade. Under conditions of less buoyant demand for Canadian ex- ports. the risks inherent in making our exports dearer and our imports cheaper would obviously be in- tenslfied."
Canada's reserves of gold and U. S. dol-lars. 3lv.255 millions at June 30, are well above the post. war low of S461 millions in Dec- ember, 1947. the bank continues. However, these reserves are only moderate in relation to the size of Canada's external trade and the possible swings in its balance of international payments. And they are well below the post-war high of over 81.600 millions in May. i948. Citing the 1940 report of the Foreign Exchange Control Board to show the source of the increased
preserves of gold and U. 8. dollars, the B of M points up the extent to which the improvement in the re- serve of hard currency depended on the receipt of gold and convert- ible exchange from countries re- ceiving Marshall. Aid.
This year. the review says. what with both Canada's trading deficit with the U. S. and the surplus with other countries likely to be reduc- ed substantially, with the possib- ility that the over-all trade bal- ance will be below 1940's 3180 mil- lions. and leaving out of consider-
ation the essentially variable country's growing ,economy. the and graded, the tails are wrapped of trial and error, with every one ward. movements of capital. the trends bank'.is appraisatll suggests.tth,,axt;igg: inhcellxaphgne, boxed 13:11:?! ogre; stgrying to usssemga much common ” hih h e recently favoured thistme.tsre rnopamy n cam ers or qu -een- nse aspo .
gonads? T-Eserves may not persist prove premature. The matter il- Less than a half-hour elapse: be- If, given a set of conditions, we. OUT OUR W AY BY J, R, VVILLIA to the some degree in the immed- lustrates the basic difficulty con- tween the time the tail is removed try to envisage what they will lead .
late future. fronting governments in fixing until it is frozen. Trucks then take to in two, three or five years. we r ,5-,:
Aussie Business Heads Discover Lobster Tails
ab Tk
LOBSTER FOB AMERICA starts its career in Australian waters. llcro a. caught lobster is taken from the trap on the first leg of an sll-refrlg- erated trip. N
By NBA Service
GERALDTON, Australia-(NEA) -'The lobsters are crawlin' ” is the cry along the rocky-coasts of southern and western iiAustralia. To the Australian fishermen. that cry is good news.
In the last two years. the big land Down Under has discovered that there's a lot of American dol- lars to be had in the lobster trade because of the demand for the rock lobster tails Australia has in ab-
ndance.
An American, Leo B. l-Iarford. formerly of Inwood, N. Y.. helped discover the new export bonanza. He saw the possibilities when he was in Australia with the U.S. Air Force. After the war, he re- turned to settle in Australia and now heads one of the fast growing lobster export companies.
First. however, Harford and
.other packers had to lick the one
big problem - how to transport the highly-perishable 1 star tails. They solved it with a unbroken chain of refrigeration stagings that begin at the fishing ports and fin- ish at the point of delivery to the consumer in A.me.ric.a.
'.l'he' lobster fishermen. who give
lsr has important elements of po- tential strength deriving from the
up their net fishing operations (during the six-month lobster run. work in a maze of reefs extend- ing over 50 miles off the Abrolho islands. They drop baited pots in the ocean in the early morning. Twenty-four hours later, they re- turn and bring their catch back to their depot. usually one of the is- lands. A two-man boat team can earn as much as 81380 in six days.
Luggers put out from Gerald- ton, in the western part, every week, stopping at the various is- lands to land supplies for the men and to pick up the weeks catch. The luggers rush back to Gerald- ton with the lobsters in bags.
Since the packers will not so- cept dead lobsters-they've learn- ed that it doesnt pay to process dead ones - speed is essential. After being taken from the water, a lobster will live at least 12 hours. The luggers have to get the catch to the factories within that time.
No matter what hour of what day they reach Geraldton. the call goes out for all hands to help in the processing. Cars are sent out to round up the fishermen's wives. sons and daughters to go to work. There's no rest until the whole boatload is processed.
The tslls,a:e .f'QlT10V'ed. the in- nards taken out and the flesh washed a dozen times. Drained
Business Spotlight
(3: mm undo. Canadian Press Business Editor)
one of the difficulties in talking about inflation is that we don't know what we mean when we use the word.
It used to mean what happened in Germsnyafter the First World War. when it might take a. wheel- barrow load of marks to buy a meal.
Gradually the meaning has come to be modified to the point where we use it to refer to any consid- erable rise in prices,
The concise oxford Dictionary gives the following meaning: "Abnormal increase of the cut- roncy, (for example) by the issue of inconvertible legal-tender notes." By-that definition. or by refer- ence bsck to what. happened in Germany-.' we do not seem to he in danger of "inflation".
Perhaps it would be better if we just used the term "higher prices" to refer to the condition which we have been experiencing and with which we are threatened.
We have since the First World Waribeen experiencing what pre- 1914 would have called "inflation" if it had envisaged it. Yet there can be little doubt that the aver- age person is much better off than he would have been in pre-1914. Even if he is "broke", he is "broke"psying for more things. He is no more "broke" and he has more to show for what he has spent or is spending. As a. matter of fact he is not so "broke" be- cause people at large have more money in the bank. What it seems to is this:
By 9. sort of tiug-of-war process, prices have gone up and people have been given more money. It would have been difficult and probably impossible in 1914 tohave suddenly established this condition of higher prices and more money, but that is the way it has devel- oped, and people are better off for it.
It all has a relation to the abil- ity of people to produce goods.but we don't know the principles well enough to any that if you increase production of goods by so much you can increase incomes 'by so much.
We don't know the principles and we are scared all the time that the whole thing will get out of hand and that we shall find ourselves in a mess.
Perhaps 'some day we shall ar- rive at a formula. Meantime we have to continue by the method
boil down to
FOOT SOLDIER - Somewhere in Korea. a lone South Korean Army soldier makes his way barefoot from the front line. Apparently he can make better time with his shoes off. Ills equipment, lnciudlna uniform, is American. NEA-Acme staff phowgrsphu Ed Hoffman.)
Polio Strikes U. S. Community
. Va... July 11 - (AP)-Polio has struck this south- west Virginia community with terrifying severity.
Fifty-nine cases-one per cent of the town's 5,500 population-is the count to data. Eleven have died in the town and surrounding county of Wythe (pop. 23,000) since July 1. The county has had 16 cases.
Another Passenger On Elevator
VANCOUVER. lily 2'! -(CP)- An elevator left the first floor of a. downtown hotel here with three passengers today and arrived at the ground floor with four.
The new arrival was a baby girl -born to a woman rushing to hos- pitai.
Later both were reported "doing
(Photo by -
Abbot paiiiu-ried, White, Grey. s1.oo qt; saoo gal. ' International Paint-all colours-any quantity-5 gal- lonvpails 34.25 per gallon
Clearance lots at Reduced Prices- PAINT OILS and TURPENTINE
Tarpaulins-any size. Blankets and Car Robes.
Large Assortment of Overalls, Dungsrees, Work Pants.
Dress, Sport and Work Shirts.
Sport Coats, Jackets and Pants. Men's and Youths' Suits .. .. 820.00
Boys' Suits 310.00 Work and Dress Boots and Shoes and Army type boots.
Airforce Blue Canvas Shoes.
Large Assortment Women's and Children's Shoes-
White, blue, grey Sandles.
Crepe Sole Loafers and Sneakers.
Baby Dolls Shoes-grey, blue.
NyionHose-51 Gauge ......A........... 31.00
Sundresses, Sportdresses and Housedresses. Silk Blouses and Gabardine Skirts.
Shortie and Rain Coats.
111 RICHMOND STREET CH.ARLO'I'I'El'OWN
PAGE. ELEVEN '
Fhrmers, Fishermen, Cottage Owners and ..
THE K&;R STORE SALE 0
WITH PRICES THAT CAN! BE IQUALLEI)
h .
fine" in the hospital's maternity '
'
ATTENTION SWINE BBEEDEB3
Mr. Frank Baker, Winnipeg, is coming to judge swine at the 1950 Charlottetown Fair. select two or more car loads of gilts and boars from spring litters. He is interested in stock from qualified sows and sows now on test. All breeders of register- ed Yorkshires should notify the undersigned at once- with information on what stock they have on hand to meet the above requirements. Only well-developed, healthy animals will interest Mr. Baker.
P. E. I. SWINE BREEDER8 ASSOCIATION, Box 489, Charlottetown.
He plans to
-TH' euv HA6 A MIRROR IN His TOOL Box, AN' LOOK AT TH' Boss --HE
AN' THOUGHT IT WAS ATELEVISIDN SET! I. DID. 100. BUT IT DIDN'T STAIZTLE ME THAT MUCH .'
WELL. A 30555 INDIGNATION
RISE -- HE HA5 BOTH SURPRISE. ANI7 INDIGNATION TO RECOVER.
FROM. AND YOU ONLY HAVE TH'
rain of exchange, the review adds. While rates may be fixed. the changing u rents of forces detamining relative values of cur- rencies sre not so tidily amenable to governmental control.
It may well be, the statement concludes. that thought should now be given to the international Mon-
the frozen tails to the ports for shipment to America. - - What's left of the lobster - the legs. claws and head, - is ground down into poultry food meal. some of the larger specimens found in southeastern Australia have excess meat in the legs and claws. which is packed and exported. Australia's Department of Com-
. may conclude that the answer is Devaluatlon asses PI-lea Ilsa disaster
Discussing the diverse effects of altering exchange rates. the B of M emphasizes that, with devalua- tion, Canada has been ”importing the U.S. price level plus 1055 per cent," with respect to the '10 per
If we do, we are underestimat- ing our proven ability to deal with things as they arise. For the con- dition of two, three or five years from now wont come on us over- night, and we have developed a remarkable capacity of adjusting ourselves to the extraordinary con-
2 K i E Z 3i
Borrow from Household Finance on ' No end orbank-
L':i'z'i'e' "sin-icy needed. We specialise in jompt cash loans for any good
cent of her imports which come from the United States. However,
etary Fund permitting any mem- ber a measure of day-to-day flex- ibility In exchange rates. to allow
merce exercises rigid control over the lobster catch. 75 per cent of
ditions of our times.
,pm1,.,.,3.m of4pnfa- Hgugehold ' import costs, while a major .factor ' Finance for fast. friendly service. in the meatic price level. are not corrective .forces to work sutar which is gxpfvlafd. Lo'i::tei:'uc;auit. Phonetrswpintodayi its soe determinant. Moreover. instically. From Cansdas srtan - be sent ou o e coun Y arms success while parity would immediately point. much could be said for a export permits. They have to be -j Anhunnt No.o! PINQOGINY cut them. they would again sd.- flexible rate which would reflect ps0CeSSed in registered plants. and I of Months vmem varies from the new base if exter; and oiffseththe ctl!-iiansing tconditlons gradfdu anclE5;(:kte;;le agcrcroggllraigng oonwmed h-om mg, 2 4 ed '4, 1, , 3' .1 11 coun 1- '4 re a- regua ons. ..-.U-..E-:----EE--- &: 1: n:gIgpc'xEll?);5 ::1I1ltll1l;Tl a long Trptulin Tleizixshilpg to age lNebl'1d'S tvzo great in which they are frozen and ship- school society in the world. Bishop 543-43 18 532.00 Tn external prices might even trading areas 1366 are fixed- Wm” Nam” 1” 5”” Wwden” - ' l min ' STUJI 24 836.!!! mean placing the Canadian dollar 1 ::ftem'n ”! "'”W3 den” ”"'
at a premium in terms of U.S. funds. advancing it as conditions required. since such a policy hard-
The New York Female Union Society was founded by a Mrs. Bethune, February 20. 1316. and a
.....,.....,. DAILY 7CROSSWORD sinuses
ly fits the reality of Canada's trad- I Acnosgl 3,1-ugh”: 19.Esch 1 I 1 th 1:gdpot:iItlon.yit would reef; wiinser? v .1. Ground l(nF4'):1!lIi;ETn go:'i:::;w :m;:;,yn?,o,:K1; 1:;,,.;?r:,?,n;::;rg:: i e urn o par - i - - '"" " ""90" "W" seorve. .3 in ei-nergencv mellun 3. T':T'sTan coin 4. Music note 23.lndian gdmztyinftgr ,f1fs1?;c:l nggamlazigg 301- 3: 'N"'P' '”l- "'0' "5 for use if external prices ' rise 9.NeS"K'"l". 5-B"”:”"”" 24 :""m::'uon Instruction of the Poor. which by CIIAILOIIITOVIN, P.l.l. acutely and if it can be done with- (Law) 3- W80 1W0"! -I Cgvem 1817' had Sunday schcok unde, us Nows9Ie5srby apps:-v-an out seriously damaging external to. Ant Dermn ';d wing. sou. nods to residents oh-orby my mag, 12- Capilll. -7- 106800" 0' 03:1 0 o s WVI"'IWl'""rI"" Thus. although the Canadian dol- (Non) . 3318 Si!" 25 iA in: 3y 130, 3.393 sum 5, schooh ”t'5i3”"” 3. -lumen”. dlrwi . M ' an... t ers Indn;e.:6fup9I:HplTipils efalfgtxll E , 1 Y a 'a . . . - "'9 . "?.f3,'.”"- 2' 5.” . ' value of publications distributed in 15 Tobein 11.Att,empt- Arizona 38.NourIahed. its history has been estimated at i 'dqbt ya. 3"", of ,1, 3o,Cutung 40.8hield well over 8,000,000. 1 in Watch 15. Metallic tool 41- ((?gl:1d0)"Y. The Btviigglifnelgil '1;;c:hfn0C:9tY 9 .' . t secretly rock 32.ll'ellne - was organ 3 a s on. t "' '”""'”””-” '”"'" ' ”"”””' '2' 73'...) 3'i.3"ui” m'iT3”io"”i'?3h3i”it3 ' l TH some: 7-23 t7”M'”A”5 tn '7' at 3:? 333:” as. Exclamatio igse nlfid the aundxiiynscifooiwunion '''' ” E VI I E5 ”"t "'"' "" """'" "'"- "L W "-"'-"'- ' 2; M..,.,,-. of the Methodist Episcopal church ,, -7-- I 4 formed in 1344 with headquar- i2?,' 5;";.'""P" 331 in New York City. , vou, caw-r WEAR BUT PLEAT6.' i mmuu. , I The A f Schools were' at first YOUR BEST TQ GOOD GOSH, :3. limit y '2 3 an; .m ntovft rC;l::gz;:ii;MIu&:ig:tty Piblgl IN AND IVE I'LL HAVE TO . exp 0! V0 ' 6 TO FIX VOUR LOOK THROUGH ao.”.....""”'.f..... .5 ?;?':.fi2.”f:.i.f..?"2i” Ei?3””.V..Si.3 OTHERS-' BUTAIF Mv PANTs To ' name church officials. , SQDU RE IN A HURRV SEE TH' 5iDE' '31. Mexican, . I I I scarcely more than one century To GO OUT" WELL, i agate go the lrdelggious boating for ahib 1-His '5 '1'! ea agar . en cou e counts on one's ng- ' ,. as. cram cf! era. The most noteworthy were i 31. From 75 1 Pilgrim's Progress and Hannah 39. Apimhond M'oci'e's Moral Tales. The first 41.? d f children's Dubllcltlona put out by . 48- Northern the Philadelphia Sunday School , constellation U 1 , mm 3 d 3;, 3 - co. mane-mn: ' V s3.?'.'..'5?il. moi. ”.?.i.”, '.'.3.u..i. J gamglon gr ohiildrenloover many sugjeots. f. era a no onger any nee for ., "T '”"”' , " to read trash because noth- l.' f now" - 1:3 also exists to satisfy their long- I g. - i ii-RM? All this .mprovemesit has come int”!-T ' about because Robert Raikes had a 2. Old measure brilliant brain wave back in MM. jitleagth - E i i DAILY cnvnoqumn-n:n:::w,,w work It: A X Y D I. I . Is I. 0.N 0 F I No L 0 W One letter simply stands for mother. in this example A h used . "for the three Us. X for the two 0's. etc. single letters. apos- g ., . trophies. the length and formation of the words are all hints. ; Bach day the code letters are different. 1 ' t . A cryptograns Quotation ,; vpn aiiniv sromcovu QSFJN sow 4?. uv an osnvnsr. crv an KNINLIP ; --2. . L . ,4, W. T E? recs-anon. i , ” A J "'3 O77-?.wii.uAM5 E Yesterday's Cryptoquotal. i WILL im.i. rims A BUNDRID t, Xe.-.".'i.".:'if&'."& -EBORN THIRTY YEAR5 1230 soon 7'17
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