Moral; Dolly tfuunderl la llllfl) Lattsorlseit as Second Cliun llatl. Puss Office Department, Ottawa. Th! llllllul (tuurrllan Publintlln] (70. Edllur and blunuglrig Dtri-i-tiir, J If. tlurnell. Acorn-lute Ifidltnr, l-‘ranli Wallis-r. "The Strongest Memory is Weaker Than the Weakest lnk." CHAR LO'l"I‘E'l'O\VN . WEDN Many Excuses The Fcderal Government is being adversely criticized for not participating with R.C.A F. planes in the air lift at Berlin. The Montreal Gr:- zette has been looking to the matter with the following result: The range and variety of excuses, given both officially and by "informed sources," can best be appreciated if they are listed. Here is a partial list: 1. Canada has not been asked. 2. The need for the airlift will not be long. 3. Canada has no "status" in Berlin. lt is not one of the occupying powers. Canada could not explain its presence legally. 4. Canada's presence in the airlift might be provocative. The Soviet Union has a special grudge against Canada lptesumably because C-"i- nada uncovered its spies). Canadian planes might be singled out for retribution, with resulting em- barrassments. 5. Canada could not participate until the matter has been debated in the Security Coun- cii of the United Nations, 6. Canadian planes are of a different type (requiring different replacements) than those being used in the airlift. This might only com- plicate the operation of the airlift. 7. Canada would have to place its planes and its crews under the command of some other power. This is opposed to Canada's policy. 8. France, Belgium and the Netherlands are not taking pprt in the airlift. lt is relevant to point out that South Africa and Australia are both taking part in the air- lift. But all but one of these eight reasons would seem to apply to them with equal force. Yet somehow they are in there, all these difficul- tics notwithstanding. Perhaps, like Mr. Clax» ton, they know that "it is better to stand togeth- er than to fall separately. Newfoundland Finances Newfoundland enters Confederation with ci ‘cozy nest-egg: she will be allowed to retain her war-time surplus, estimated at between $25,000,- 000 and $30,000,000, provided no part of it is used to subsidize Ncwfoundlands provincial pro- ducts in competition with similar products from other Provinces. V/it-h one important exception, the terms rgcgntly gigncd weer substantially thOSE outlined to the Na~ulonndland delegates in October, 1947. The. exception is the amount of transitional grant ta be priid by Ottawa during a twelve-year ad- justment pariod, The original transitional grant totalled $26,250,000, payable at a rate of $3,500,- 000 during each of the first three years after union, and diminishing thereafter at a rote 0t $350,000 a year. The new agreement Ofldi $l6n 500,000 to the original $26,250,000. The first three payments will be $6,500,000, declining thereafter at a rate of $350,000 a year, until the ninth year, when the rute of decline Will dwP to $350,000 annually. The total transitional gicvt will now be $42,750,000. The other financial terms are esscntinllv thigsi: of last October. The Dominion will talc‘! over 563000.000 of the island's ‘linrllolhooo Pull lic debt, this amount representing an estimate ol the czst to Newfoundland of the assets which the Dominion will assume. These include the Newfoundland railway and steamship service, postal services, customs and excise, navigation and shipping aids, marine hospitals, the New- foundland broadcasting corporation, and avia- tion services, among them Gander airfield, upon which Canada has already spent $30.00°.000- Newfoundland will also receive the follow- lng statutory subsidies: ' (l) $180,000 and 80 cents per head of popu- lation annually; (2) $1,100,000 annually, payable under the same terms and for the some reasons as similar payments are made to the other Maritime Pro- vinces. The island will be entitled to enter thr" taxation agreement with the Dominion, provided action is taken within nine months after union, or by the end of 1949. An estimate of the pay- ments receivable under such an agreement plac- ed the figure at $6,000,000 annually. No estimate has been given of probable revenues accruing to the Dominion as a result of union, nor were figures made public covering probable federal expenditures. Such estimates were provided, however, in the 1947 terms of un- ion, assuming conditions similar to those pre- vailing at the time. Federal revenue was esti- mated at slightly more than $20,000,000, of which $7,500,000 would come from corporate lncome tax, and $4,000,000 from the general sales tax. Expenditures, grant, debt charg excluding the transitional es, capital expenditures of any costs in respect of the Newfoundland railway. were estimated at between $26,000,000 and $27,- 000,000, of which $8,350,000 would- be for fam- ily allowances. On unofficial estimate suggests that the future provincial legislature of Newfoundland will face an annual deficit of between $3.000.- 000 and $4,000,000, unless new taxation is im- posed. Since, the greater part of present New- foundland revenues are obtained through taxa- tion sourc-es which will be a Dominion responsi- bility after March 31, any estimate of the exact financial position of the island is difficult to make. tlJl I URIAI. NU HIS Pilgrims landed at Plymouth Rock, this date 1690. For the third time in succession the Federal Government has made no recommendation to the King for the bestowul of New Year honours en Canadians. e n e Pity the poor postmen and rural couriers these days, the heavilv laden bearers of good news to thousands of homes. R I I i McGill University has free medical service for students but it costs money to avoid taking advantage of it. Students who skip appointment; ore assessed $2 the first time, $5 the second, i i * Britain's four year plan for economic re- cavery depends heavily upon increased purchases by the Western hemisphere nations, not only of her own products but of those of her customels in the Eastern hemisphere. I n e e Forced by her extensive territory to go in for aerial surveying, Canada might well become surveyor to the world. An R.C.A.F. contract to map the United States, for instance, would practically solve the dollar problem. I I I i Keeping the roads open in spite of drifting snow is one of the biggest problems of our Pub- lic Works Department but success not only brings its rewa-rd in gasolene tax collections but in the real contribution to our general prosper- ity. ¥ ¥ 4 George Eliot (Mary Ann Evans) English nove- list and poetess died this date 1880. Her place is among the greatest writers of English fiction. She excelled as a painter of middle class life and character, and her work is marked by much pathos and humour: "To manage men one ought to have a sharp mind in a velvet sheath . . . one must be poor to enjoy the luxury of giving." y e a The forthcoming union with Newfoundland will give Canada a problem which she has been at pains to avoid in the past. The R. A. F., for instance, was obliged to leave the control of Canadian located units in Canadian hands. '\merican bases in the Old Colony, however, arc under U. S. command, and according to a recent American ruling their own laws will be in force. t e 1r The result of the Federal by-clections seems to have satisfied everybody. Mr. Drew is delight- cd with having been returned for o Tory seat without Liberal opposition. Mr. St. Laurent re- joices that Mr. Garson has been elected without Conservative opposition; while Mr. Caldwell i: satisfied both contests provided opportunities for the public in general to learn something ct C.C.F_ principles and policies. The Social Cred- itor and Republican defeated candidates made no comment, The true testing time will be, when Parliament is dissolved after next session. ye it The Rt. Hon. Herbert Morrison, Lord Presi- dent of the Council in the British Government is a whole-hearted believer in the necessity for a Public Press. "If there were no newspapers," he says, "the British constitution would be miss- ing a vital element and we could not function. Between public opinion, the Press and Parlia- ment, there is a mutual exchange, even with a clash of ideas, and it all goes to make up the cast of our democracy." With the recogni- ticn of its importance, added Mr. Morrison, went the responsibility of reporter, sub-editor and pro- prietor to be factual and impartial in the pres- entation of news. a e Lower prices and increased buying power for the Canadian wage carrier's dollar cannot be brought about by reviving rationing, pricc controls and subsidies, stated Mr. Joseph Lister Rutledge, Chairman of The Canadian Unity Council, in commenting on statements that have linen made in Federal lay-election campaigns. "A look at the record of wartime emergency controls on this continent and the long-term his- tory of the 'planned economy‘ countries shows that the only answer to the problem of inflation is increased production of goods," he declares. "ln the past ten years Canada's national in- come has climbed from five to fifteen billion dollars a year," Mr. Rutledge points out. "The average hourly wage in 1939 was 44.3 cents per hour and this year it is more than double that. The government's cast-of-living index shows that we have to spend $1.60 today for what we bought in 1939 for a dollar. From that it is obvious that there is inflation in Canada, but price controls Ind subsidies that make taxes pay part of the cost of consumer goods would be merely an attempt to hide this inflation, not to cure it. a w 1- The Christian way of life‘ is simply and beautifully set forth 1n a booklet entitled The Wells Our Fathers Digged: Being Extracts from Sermons of the late Canon E. A. Harris, D.'D., Mahone Bay, N.S. Printed for private circulation, the booklet carries an introductory note, stating that the material was selected from sermons dating from the early days of Canon Harris’ min- istry, found in an attic in the rectory of St. James’ Anglican Church, Mahone, after his death. Born in Charlottetown in 1861 the late Canon Harris, who leaves many relatives here, graduated from King's College, Windsor, in 1884 and was ordained deacon in the some year at Halifax and priest in 1885. From college he went to the parish of St. James, Mahone, as cur- ate to Rev. W. H. Snyder, whom he succeeded as rector in 1889; and there he labored until his death on Nov. 7, 1931. His body was laid to rest in the family plot in St. Peter's Cemetery, Char- lottetown. The extracts from his sermons will be read and appreciated by everyone who is fortun- ate enough to possess a copy, as they reflect not cnly the deep religious faith of the author, but his wide sympathies and capacity for interpret- ina nature and human impulses. ‘Look -~9:\ PUBLIC FORUM This column to opea to the dlscuseloa by swu spondents of questions of Interest. The - Guardian duel not necessar- .i lly endorse the oplnloa of correspondents. S A5 IF WE'RE NOT i? as»; O%OO%OO%OO%OOQ NEW ZEALAND PENFRIENDS Sir, - I have had many re- quests for penfriends from Prince Edward Island, and I was tloptng that you would help me tn ob- lutnlng a list of boys’ and girls’ names. who would like penfrlends in New Zealsnd. Ages ranging from about. nine to seventeen years. I um, Slr, etc, NORAH LOBIN Children's Editor g_.‘.1'IE_ GUARDIAN, CHARLDTTETOWNN DECEMBER- 21- _ He» roitconeu Arm: Au." (New Zealand Newspapers Ltd) Christchurch. New ZBfllEbfld. RURAL MAIL COURIER Sin-Through the medium of the Public Forum of The Guardian, I should like la mention a matter uhlch ls of much importance not only to Rural Mall Couriers llke myself. but. also to every patron along the short. or lengthier routes uihieh we serve. Thts reaches out to take ‘in the most Isolated farm- house on some lonely lay-road. And we must do our best to deliver, deily—except Sunday and on time. in sun and shower, ln heat and cold all matter that. makes up His Majesty's Mail. This, then, ts mlne and many mother's cause for dls- satisfaction and complaint tn the more rccent years: Why do Rural Mail Couriers not receive a decent living wage? Since all Postal em- ployees have benefltted by increases in pay at different Intervals, why did thls not include Rural Cour- iers? It ls certainly not because we would not well earn it! Every- one must easily recognize the hard- ships wllh which we must contend in our work, especially in the cold- er seasons. There is no need to mention the often trnckless and drifted roads we must follow ln our delivering. nor that now we are required to curry Parcel Past bun- rllcs up to ‘.353 pounds in weight, sliimpfi, money orders, postal notes. ‘. f). 11's, registered mail. ns well as llii- day's cards, letters, papers, etc. It ls no idle talk ta say that. it: with others, our cost. af living liars also increased-food anrl cloth- inp innit how wzlrnlly clad we must tn- in lllf‘ fncc of falling snow and bitter winds!) harness. wraps and rugs as well ns shoeing and feed for our horses. Nor can our con- veyances be airlifted from the llst. (lwing tn this advance in living n fnitllful Courier who has driven llir- mull for near to a quarter of a f'f'llllll‘_\‘, not loo long ago finding himself unable to do with the sal- ary received risked for an increase in pny. What happened? The Route “as put. up for tender, with- uul response. \\'hy? The pay is only a piltirilve. Ailother‘s hus been offcroil four limes in succession, ri lhcr than grunt trim a fair living Wllgt‘. 'l‘besc are but two instances, but all Rural Couriers find them- silvcs in like circumstances, facing Silllllftl‘ problems. l! is indeed n matter for Rural people to con- sider. since as in other occupations, a batter paid servant or helper nat- urally will try lo give his patrons bcttci‘ service, IV:- nre not. asking for the iivipossibli‘, but only salaries i-onlmcnsurzrte with the dignity and liihor of our positions. Surely the men who drive llls l\'talcsty's Mall arc worthy of a fitting hire! Hope- fully awaiting a change tn prevail- ing conditions, and thanking you, I am, Sir, eta, ONE-OF-TI-IEM (Patriot please copy) HEAVEN HAVEN I hlNO desired ta go Where springs not fall, To fields where flies no sharp and sided hail, Arid a few lllles blow. And I have asked to be Where no storms come, Where the green swell havens dumb And out of the swing of titre sea. —Gerurd Hopkins. ls in the Notes From Another Island By "Anson" LONDON. England: Two weeks ago, the last. time I was writing this column, the world was walling for the news of the announcement of Princess Eliza- beth's baby. A Prince arrived, and now the world waits again to kuow his names. Philip? Albert? Edward? George? We read that. betting in the Untied States was pretty keen. but we were not sur- prised to learn that some at the names they had in mind were rul- ed at, long odds like I00 to l. In fuel. some of lhem didn't seem like boys‘ names at all, and it needed an awful stretch of our un- eglnation, limited by lrndiliou in these matters, lo visualize u fu- litre King Elmer‘ or Zeke! However. perhaps we'll all know the answer before lltesc words are lll print. When the names of the Prince are nnniiuilecrl lhe interest. which has temporarily tlicrl doivu. ~ 1 l, and all the papers will be . 1g up a lot. of their scanty space on feature ur- llcles. 't‘iilklirg of uelvspripers- ours are still limited la four pages, Lbe ruaximtim the ration allows. Pup- er, of course is one of our inirsl scarce commodities, although some of the t-rttics of lhe Government become rather cynical about that. pointing la the large number of otficial forms that lmve to be fill- ed tn for one reason or another. At any rate, lt. was a welcome sign that things must be getting better when ll. vras. announced a few days ago that as from next January, newspapers would be al- lo\ved enough paper for iul extra page a day. Well. things are not quite as bad as they were during the war. when ll. was so essential to salvage waste paper that laws were made to en- force the idea, and it was actually an offence even to throw away a ‘bus ticket! Very few of mac's store purchases vet-e wrapped up to take away; iurtunately we are an adaptable race, and we soon teamed not to take any undue notice or suffer particular embarrassment. when we had to carry home some of the more intimate household necessi- ties, unwrapped and open to the public gaze. the butt for many n ‘bus conduetofs wit. (Some of our ‘bus men are only too glad, espec- tally ln London, to take advan- tage of any opportunity to exer- rtse their sense of llumnur at the expense of some unfortunate pass- anger.) No, things are not qulle as bad as that. now. though many of our ivartlme restrictions are sllll with us. I was thinking the other day, incidentally, about. some other as- pects of our every day life which were born out of the ivarllme need to exercise the strlclesl. care about everything we dld, ln order lo make the fullest use of everything we had. A good many of the habits we formed ln those days have ltn- gered and are still useful. One. for instance, ls the custom which began tn the war, wlt.h of- ficial backing, for keeping nll scraps of waste food tn separate receptacles so that lt could all be turned over to make ptg food. Sibelius At 83 iwiuuipeg Free Press) Slibcliiis ls 83 years of age and for l0 years he has not left. hls trome near Jarvenpua, deep tn the forest and lake country of Finland. His physicians would not allow tilm be accept. an invitation to attend the Edinburgh festival lust summer although his love of Britain, partlcularly of London, urged htm strongly to go. 0n December 8, the Manchester Guardian published an interview with the great Finnish composer tn which he remarked, tn answer to a question as to the meaning of llls Elgitilh symphony; that. the artist can never speak of his "ln- nermost. sruggles." Sibelius went on to say good humoredly that he had out him- self off from politics. "Among politicians." he sald, "I am j-usf. like an idiot." However, he added this comment upon the current scene: “There 1s a good deal of tragedy ln l-he world-and ln art. —-but I believe everything moves ln a spiral. It always goes up, our ‘uertod is Just a temporary state." There are references in the ln- tervlew to the bombing of Queen's Hall ("It was as lf I had been bombed myself when 1 heard lhe news") and to current muste. Shoslakovltchb lust. symphony he found "invIgar-aMng.” V n ‘vmlams. Sixth (nespeclanaywtg: instead of being destroyed with 135; movement") B nmpremvy. other garbage. The ldca. sttll seems senslble, so most of us stttl have cur “Pig swtll bln", and the plgs gel: their rations. It might be interesting to men- flan a few more of these old Eng- lsh customs, sometime . . l I O I and "powerful" whtch he thought. the more remarkable as “he £5 not is young man any more.“ Cor.- lemporary British muste he found "surprisingly vigorous for these troubled times"; lf. was, la feel, "coming back tn s. clrcle lo lphe golden era of Purcell and Byrd." Sibelius recalled that. he lied Qflmpfisesl hls Quartet. tn London, adding: "There are only two places where you can be at pence and compose. s. big ctty and l. forest-An both you are alone." For Blhellus, lf there l-s m m more muste, tt. wlll come from the forest: "l do not wont, to leave Jarvenpaa. I built thls house for- ty flve years ago. 1 have not been away for t-tie last ten, not even to Helsinki. My old friends have died one by one. Now I shall For the pest few days most of us have been groping about. tn thick fog which has covered near- ly all the country. It ta no more or less than we should expect at thls time of year- but ll la upset- tlng when ll lnterferes with our Saturday spas-la. Ptty the poor goal-keeper tn one football game yesterday — the fog came down, blotted out the scene. the game was called off and everybody left the fletd and forgot to lell hlm. It. we: some time before he grew suspicious of the sudden quiet, 11inch above the common view of 0€>00%00{>0 Old Charlottetown (And P. B. L) SBLKIRKWS OBSERVATIONS “Laird (James Laird, on Empire Loyalist, of Vernon River) argues that the inland lands of lhe Island cannot be settled with advantage la a ffll‘lll0f‘,\Vl’l(‘l‘0 they are beech lands, on such he says he may raise when! and potatoes and ruulnlriin himself but cannot keep stack for want of hay; lf he has no marsh or swampy or sappy land capable of being made lnto meadow-clover hr.- suys he cannot be depended upon, for‘ when the winter is open without snow (as for two years past) the young plant of clover is destroyed. Timothy requires sappy land, or else much manure, which cannot be procured where there is not already a supply of hay from marsh, Arc. This docs not seem very good reasoning, for even lf clover were impracticable there are other resources for raising mnnure—slruw particularly, peas, &(‘., &-c. Ilow- ever this shows the titans of the country. Laird is certainly very the setllefswwe cannot therefore wonder flint the ordinary ones are wedded, to the marshes. O O O "Mr. Cambridge ls one of the few proprietors in the Island who put a value in inland lands. I-le says he would not part with ll under 2/ per acre. The Stewart: seem all tn reckon ll. as nothing-they rlo not scrim to calculate much on any rise in llii~ value of land. ‘timothy grass ls here much tn eslnvnP-lhc- hay ls reckoned pur- liculiirly good for horses. Mr. Brec- lmn has found lhe timothy the second your produce a heavier crop than tho clover the first. Mr. B. liri.s_cultivnled a small farm near Charlotte Town lo great atlvrrnlagii ittltl has brought. lt lnlo fine huy lilfld illla’ different. sail) by means of the town manure which few ath- ir [maple have been shrirpsightetl i-ilnurcll to see the value of. ‘The timothy seed is not selected, but rill riinrlnnr tiny set-tls are sown ftlPlllJ with I'll ‘llsh (‘lover seed. “Angus Clll'l‘lf‘, a tenant. of Gov. " lllllll-"S l-"l 50. pays £5 a your. n brother's paying each as much have only u short term, ns the Gov. will neither sell nor let. for per- petuity: on that account he has but few tenants, iintl gives them n great share of marsh-he once used lo (le- mcnd half prorlirve of hay. Currie hovxevcr bus a goorl rlezrl into his bargain. "Cirrrle reckons 153/ per acre, current. price for ("hopping and jurrking rm !t(‘l‘C' of wood; lo chop is to out aver the tree-junk, cut into lengths. For piling and burn- ing, 25/ more. Some easy lnnds are done for 20/ and (‘urrlc reckons 6 or 8 ilnys for chopping and junklng an acre. He reckons that n man may (besides nll the other work on the farm) clear 3 or 4 acres annually. of which one-half could be burnt tn time for potatoes. The culling he would do in winter, burfi as if lies tn the beginning of Spring. pile lhe lags nnrl burn as niuch us possible tn Spring for ymtutoes and barley; lhe remainder tr. summer and saw with winter wheat; reckons the potatoes with- oul any other manure than the ashes to produce twenty for one. 'l‘\venly-five for one ls frequent, plantlnl! len bushel per acre. “Currie speaks of 3 or 4 acres per unnum as an exertion, and the work of an industrious mun. Few do lt in the Island, he himself be- ing only on an unr-ertalrl tenure wouldn't. attempt. ll; and even of those who have permanent. passes- sians, few are so anxious to ex- tend their improvements as to rln thls except for two or three of the first. years. "Carrie's lcleus may perhaps be token as a criterion for comparing the Highland settlers with the Am- ericnn. Laird tn 8 yours has clear- ed 50 8('l‘f‘S-——lllltl. is ribnve 6 acres it your nvcriifto. or double Carrie's estimate of good work; hut ll’ the American is hcsl. at working. the ltiglrlaridcr beats lilm at living hard. Laird with all llls industry W"! "WHY Years (6 or 7, I lhlnk) before he was out of debt; tie bo- gan bure. trad to get provisions 0Q crerlll-Jnvolvefl himself with the stores, and could not get free - could not deny himself luxuries. and being involved was obliged hi dlfiltose of llls produce at an under value, and thus was the longer tn clearing himself. A rligninnaii- blrftlnntnlf ‘l/llh a lttlte would be clear of the world ln two years. but at, the end of eight, he vipuld have 6 or 7 acres of clear land Instead of 50." —Lord Selkirk‘: Diary, October, 1804. 0 3 O l‘) 7 ‘tin Age-Old Story “ IIIIZIIIIITIIIZIZIXIIIX rrg-y-r-r-g- sure; A llltle that a rlghteoal man hath ll better than the riches of many wicked . . . The blemln of the Lord, It meketh rleh. and lie The High Cost of Living Its Cause and Remedy THE OTTAWA GOVERNMENT, TOO, HAS "FUNNY MONEY"! B! E. L. B. Williamson, M. B. E. Vl. It often, mistakenly, ls assumed that. the term "purchasing power" refers exclusively to cash tn the hands of the public ready for expend]. fure on the orxllnary items of life, collectively termed “consumer goods." Readers who have been following these articles will be aware that cap- ital tnvestment also ts a form of purctuslng power, and that lt can be far more inflationary than ordinary consumer purchasing power. 2. There ls an additional form of purchasing power, vlz.. money which literally ls created "out of thln utr." This may be done by | government tn the printing of money which ls related to no tangible asset; but more frequently it is done by the banks and other lending institutions through the extension of bunk loans and by the sale of sec- urities, such as stocks and bonds. When n bunk loan ls made or e stock or bond issue ls marketed, normally the transaction takes the form of a bookkeeping entry, tn a bank, against which cheques can be drawn; that ls, actual "legal tender" does not. change hands at all, only a chequlng account ls established. Because cheques are freely accepted by banks and businesses us lhe equivalent of money, the credit thus established becomes "money" just as much us lf the Government print- lng presses lrnd turned uul. "legal tender." g 3. When such “new” money is matched within a reasonable length of flme by an equivalent amount of physical goods and services. all te welt; the whole community ts benefited by nuletence to Industry or agriculture tn this manner. But. when such “new" money ls turned loose tn circumstances that preclude increased production, there can be but one result: inflation, higher prices, rising costs of living. 4. This article outlines the extent to which capital investment, and an expanding money supply, have stimulated inflation tn Canada. 5. In an barller article it was rleinonslratcd, through an analysis "real" wages, that the wage increases given over the pest two years could not, tn the circumstances which prevailed, have been the cause of price rises. It also was shown that capital investment. purchasing pow- ex‘ was a formidable inflationary for-cc. 6. Capital investment spending was abnormally stimulated by the Government's capital investment subsidy policy, which tn effect sub- sldized this highly inflationary form of spending lo the extent of $220 nlillloris. The resources and productive capacity of the nation were great enough lo provide for‘ consumer demand, for substantial assist- ance to European rehabilitation, and for a moderate amount of capital investment; but our resources were not great enough to meet the first two of these essentials, plus a very heavy capital investment programme, spurted on by Government subsidies. Fortified by the subsidies, bust- ness enterprises were able to blrl higher and higher for the materials and labor needed lo complete the commercial expansion which ltu Government. was, in effect, asking them to undertake. 7. In such circumstances a balance between supply and demons could be attained only when prices reached a point at. which Canadian consumers began to deny themselves even the essentials, and when Euro perm reconstruction was cut down to mere relief. Increased purchae ing power certainly rlld have its effect on prices in the nation, but tlu Prices Committee failed to stale that Government pallcy created the increased purchasing power and provided the stimulant to its use. 8. A second Government policy further increased inflationary prel- sures: the increase tn money supply. At the end of 1947, the money supply of Canada was computed to stand at 363.4’);- af the 1935-39 avers- age. This money lrrcrense was almost oxuelly double lhe Increase tn Industrial Physical Production, lhe index of which stood at 180.2, for the some period. The money increase was approximately two and ano- half times that of agricultural physical production, the index of whlcls stood at 153.0. 9. An indication of the manner ln which the expansion took pleas can be gained from the record of one year: 1947. The Increase tn prlnb- ed money was relatively small, $25 millions; but the expansion of other farms of money, proceeded almost unchecked. Bank loans and invest.- ments increased $777 millions, the net increase in capital stock lssuel was $263 mtlllons, and not corporate bonded debt increased by $81 mtl. llons. 10. The rapid Inert-use tn the money supply automatically led ll further price increases, because the nvnlt-ible amount of goods and new tees increased much loss ftlpltll)’, if at all. The only authority who could possibly have checked this increase tn the money supply was the Gav- ernment. 11. The degree of control which the Government exerciser over the commercial banks and credit. institutions, bath directly and through the Bank of Canada, is so great. that. the Government, and the Government alone, must accept full responslbililyfor this lieii is xpanslon ll the money supply. l-Ind the banks attempted to curb credit at e time when the Government was actually substdlsing investment, there can be no doubt that they would have felt the full weight of lhe Government's displeasure at an act of "sabotage." 12. Indeed, the Government deliberately created the condlttonl for u vast expansion of "new monr-y"---tlrut. ls, in the form of credlt. TWI! courses were followed: First, by borrowing from the commercial banks. The not increase in this form of borrowing was $889.3 mllllons tn the four years 1943 to 1946 inclusive. These commercial loans formed the basis for a credit pyramid several limes as large. The second course was that of "pegging" the price of Government. bonds nt premlum prices. lnvltlng thus the sale of the bonds by lhe public. A: these bonds passed lnto the bands of lhe banks, they formed lhe foundation for a second great credit pyramid. Together they nccaunt for the fact that the money supply Increased more than twice ns rapidly as industrial and agricultural production, as mentioned ubovc. 13. An analysts of the facts thus reveals that the Parliamentary Committee's "increase tn purchasing power" ls not consumer purchas- tng power at all, but ls a Government-stimulated capital purchasing power. The Government's stimulation being directly applied through subsidies to commercial investment. and indirectly through a vast tn- crease in the money supply» mutiny which was available, tn the main. only for further capitol investment. 14. It. wlll thus be seen llrul. rising prices ure due not so much t! Acts of God as to Acts of Government. In next i.veek's article we shall rleul with sltll other causes of rising prices. of - Notes By TheFTWay - 1i There wlll be sweet peace bo- und turn many acres of land into a tween nations, as between netgti- cauldron of oll and mud, that the bars, when none is more fortunate whole churning muss should catch than another. -— Vtclortn Times. fire unit in a few days the fire should be put out, that two "re- llcf" wells should he drilled down almost to the exact location of that leak tn the reservoir and plug lt—— those are feats that capture Ill! Atlantic No. 3 has been nfflelalls" declared "dead". Thus enderl the CPIGEI‘ of the wlld vlllntn of Lctluc. When Alberta's oll historians gel around to telling the full story, they wlll write down the kllllng of Atlantic N0. 3 as n triumph of technical skill, Government direc- tion and field co-operntlon. Thrit gnu and oll should spew out nf n reservoir a mlle below tlir- surface imagination of the whole Domin- ton. Atlantic No. 3 was a bother- some and costly distraction tn the development of Leduc. But fortun- utcly there seems to have been n0 ririmnga to the ftelfL-Cnlgury Alb- ertun Queen Street stay." and discovered tits eolttude! nilrleth no sorrow with It. consensus: INSURANCE SERVICE W. If. Rogers Agenoiefi units» Cliarlottetoil! _ ,,