,P~‘-,,GP_F_QUB _- -~ _ THE GUARDIA - -_ American market, to the distress of many housewives. But when a rise in price is accom- panied by a definite lowering in quality the situa- rue _ guaiznrasr.__cllannorrizrowl~r l IF ONLY THAT CHAQM COULD DECEMBER 21, 194.8 The High Cost ofLiving ‘lllisorlislefdllnuacgtftlszrinl‘(Elialéfitlfiaflfl Office tion indicates the necessity for some study. k5! DIIDGIO/ ‘ t-iwq‘ Th. lflnndllaruzinb rmvlmun‘ c“ . Dry pastures in some areas; extensive cui|- k).J--1£ T‘ f,‘ . "s Cause and Remedy i?"“"'A':::u,fa""§£z”“‘$23; {<“‘fh':_"""“- ing of herds while prices were good, and the if ‘b. , _( ' inroads of the American market have all con- blscullflsm I ' '\ \ /. , “Th. strongest Memo” ,3 weak" fhan tributed to the situation. ‘But certainly a worth- —— w . n I ‘h’ weak,“ ynky while demand for beef in Canada cannot be H“ piggfa: ca, Th!“ ulmli" \ \ I vll' Tllitsilggo¥aiFgliliglgguniglLAagwNTkol-' CHARLOTTETOWN, MONDAY, DEC. 27, 1948. built on such small percentages of choice, good and medium beef on Canadian meat counters. In that bare temple of the dying sun, Brave guardian of the sshee of the year, Des: patron of the huelese and the w’ I B! IL L. B. Williamson, M. B. E- We now come to the fourth, end final, phase of the Parliamentary ~ ’ ssa ~ "is Majesty s Me so ED‘ IORIAL NUIES ° - Prices Committee's "findings" concerning why prices have risen: Th. Sad mourner at the last autumnal Committee says “certain supplementary factors"—a sort of catch-all in K‘ it ‘n th- w rds of His Mt! es "'5 ' hi"! which inventory profits received the principal attention. As indicated . ‘n95 lp’ l a o - n - w Boxmg Day‘ 15 ma“ m9 Yell-l’ illldmib- in the third article of this series, the evidence does not suggest ti," cllrlslmcs Day broadcast’ ls no lsolulfed’ lmpe" S E Th9 Y“? l-hii-i- 1°“ m’) 5l-T1Kl1i8 195i what was done under this heading had anything to do with the Seneral 5900i luilcilii", u" ulfilrucl” 5Ymb°l °f Eonslllu" Feast of St. JOlln Evangelist. and stream“ and sustained rise in prices; although in a few instances it seems clear tionul theory "——not the thing, in fact, which o n .. Because from thy cold lolns there is that the public was victimised. ' nu birth? 2. We are hr-re concerned with the fundamentals of the Iitugtjgn so many academic writers have made of it — but rather "a very real human relationship, dc- pending on ties that are invisible, and unaf- The action of the Provincial Exhibition As- sociation in making provision for the display of handicraft work is to be highly commended. Nay, for tomorrow's roses are the dream Of these chilled, barren acres of the earth. rather than individual misconduct, attention of the Prices Committee. and will, therefore, pass on to an examination of some factors which appear not to have engaged tho 3. The process of de-control had a marked effect upon the creation fflied bY Cllflllqei i" '"i="l°l l°""-" The" The initiative conle originally from the Women's of inflation. This was under the complete control of the Government words are worth rioting at this time, when “Sm-Mes b," u" intcresped in the devejopmém 1 see time on the leader's 10mg; The Auestion here is not the fact of dc-control, but the procedure fol. lowed ln carrying out de-controi. changes, both in internal and external form are so noticeable throughout the world. According to totalitarian philosophy, kingships are dead and buried; the British Commonwealth itself is in the final stages of decline. His Majesty takcs e different view. "Our Commonwealth," he says, of handicraft skills will benefit. ‘ ‘k "k The pre-war Japanese scheme of naming a manufacturing town USA and labeling its pro- ducts accordingly has a new twist. According to a Canadian Press report Communist propa- rung, Thou uncomplaining stoic of brave me, Watching the last seeds through the hour-glass flow, Or leading wild bravwlas that are sung By the white chorus of thy lyric 4. Tile first period of de-control was the period characterized by removal of the subsidies paid for the production of essential goods. The first subsidies were withdrawn on 30th April, 1943, and the withdrawal of subsidies was continued until 31st January. 1946, by which time pr". tlcaliy all of the subsidies were withdrawn. ed from 1st February, 194G to 13th January, 1947', of the removal of price controls on luxury articles and capital goods, The third period covered from 13th January, 194T to 27th November, The second period cover- tiils was the period ,,. , v . . . . . _ is stron er, not weaker, as it fulfills its ancient . . . , silovi. _ mission 3f widcni“ the bounds of freedom ew ganda eXpltlInS tlifli’ UNRRA i5 U RIISSIOII City what, mugickef can mime 1947; this was the period of removal of the price ceilings on consumer 9 Mu,- M°5c°w_ 'l\hc tempo of thine etudes? Too. goods. By this time the inflation was already out of hand and 27th November, 1947 ushered in the period of partial re-control of 50mg erywhere our people live." ,, , ,, mo“ u, f d H ' 'H'M' ‘ rt t‘ - .. ,_ Arhilst fth it r “We co nlzoilrlleff a‘: ‘it tsgiWtfie ‘Biiteisfllcmrmgl The new Qrgunuuhon and Methods my“, c vughno e mmllsup s o I a. Wéoyg” ' ‘ ‘ B l, 5. The procedure on removing subsidies. _whlle price controls re- g ' ' ' f h ion of the Civil Service Commission is reported And bridal n-l-eaths are ever on thy y WQAMQQQ , U16 1W9 91' m5 mflined i" f°"*‘- had the effect "f 10ml"! the ‘marginal’ producer out wealth and Empire l5 u cross-section 0, l’ e races brow . of business, or of compelling him to concentrate upon the most ex. pensive types of goods. Caught between the upper mill-stone of price to be expanding rapidly and paying compara- Inmrmauon tively high salaries to get the men it wants. If the efficiency of Government departments is increased to a marked extent the project is well worth while. _ I (United Kingdom Office) It is obvious enough that the Berlin election is a heavy (191995 for German Communists. But it is also a heavy defeat for one side of Throughout thy wedding journey a)’ PUBIJC FORUM h h with i e mg L This column is open i0 the discussion by unsQSPiJIldBDlS l of questions oi’ interest. The l ll and creeds of the world. Such diversity gives rise to grave and for-reaching problems, but it also offers unique opportunities of welding together for joint constructive effort men and women of ceilings and the nether mill-stone of costs risi g through lack of guh. sidy assistance, many a producer had no alterna ive to getting out o! 1h. production of staple consumer goods. There is no better example than the dairy industry: confronted with the cancellation of the subsidiu on coarse grains, yet faced with ceilings on butter and milk, many dairy farmers no longer could make ends meet; and the production of June hath her deep regret that she must pass, And rich September, in her opul- q‘, Gunilla" d0" "f" "New" different stock, different faiths and different .. o me mourns llr endorse the "Pilllim "f th So 'iet policy in Germany cultures, . . . c . ' , _ ,_| ,_ e l u, R,‘m_ nlilk was allowed to decline in a period of increasing demand. Thus, The membelhpeoples of ‘he commonweum, _ _P"bl|c Welff-"DT °ll|5l9l5 ‘fmm federal, P79‘ F" mlsgtrgilgfrgess “hlch she can lull-esp“! en l s\a€1°;rég£ga{1egsmgfl¥;,e his bee“ through the elimination of cheaper lines, the consumer found the “can- Ond Empire me held together by no coercive vincial (Ifld municipal public welfare seport- Bu, {ham no team mo,,,,,g u, my gI<Q>GQQMQ®QQ<Q>¢QGQM ‘vorkmg ha“, m persuade m, Ge,“ trolled" prices rising; and through the elimination of the production of men“: will gel’ l'°9el'l‘9|' l9 “"950 9|" P795‘ grass. mm people m," ‘he Soviet Union 3113;513:21-‘frglldtlgggiiéllzuidailiggét began to find essential goods scercer bonds, but are freely associated in a partnership. "Free institutions are its life blood, free co-op- eration its instrument, peace, security and pro- gress its objects." No previous empire has been based upon the principle of liberty, and no other empire has ever included in its membership at the same time great nations and communities of European, Asiatic and African blood. it was for all these that His Majesty was speaking on Christmas Day, and all of them - Britoin's co-opcrution with the Dominions, with lndian and Burma, with the Colonies in Africa and elsewhere-depend for their cohesion on mutual goodwill. Goodwill grows out of under- standing; and understanding can be deepened only by better knowledge of each other. There lies our duty and our opportunity. His Majes- ty's broadcast was o public acknowledgment of these. responsibilities with regard to himself, pri- marily, as sovereign; upon cach of us, individual- ly-not as cogs in a soulless machine, but as potent factors in spreading wider the bounds of British principles of freedom and democracy. Canada's Field ilrops The gross value of Canada's field crops in i948 is placed by the Dominion Bureau of Statistics at $l,595,000,000,—-tlle highest on record in a period of 4i years. The values by Provinces are given below: Prince Edward island S 22,812,000 Nova Scotia 23,345,000 iNew Brunswick 36,894,000 Quebec - . - - . - . . . . . 188,490,000 Ontario ,._.,. . . . . . 370,000,000 Manitoba ,. . . . . .. . . . 213,306,000 Saskatchewan . . . . . . . . . . . . . . . 396,817,000 Alberta 302,232,000 British Columbia . . . . . . . . . . . . . . 33,737,000 The Prairies show the largest per capito _,production, with Prince Edward island lead- ing all the other Provinces. Forming remains Canada's greatest industry, and it still has vast room for expansion. Gattie And Beef Cattle exports and domestic beef quality are discussed in the current Letter on Canadian Livestock Products issued by the industrial and Development Council of Canadian Meat Pack- ers. Noting that in the first eleven weeks since the lifting of the embargo approximately 250,- 000 Canadian cattle were exported to the United States, the letter also quotes the June i948 estimate of cattle on Canadian farms as indicating a reduction of 2.6 percent from lost year. The cotilo kill has been much heavier since Jun: l of this year than lost year. Sub- tracting from the inspected kill the number of cattle represented by beef exports, a heavy in- crease for Canadian use this fall is shown and the total kill represents o considerable drain on Canadian cattle population. in fact it has been frequently rumored since the lifting of the embargo, that in order to take advantage of high cattle" prices herds have been sold down to the lowest figures in years. Marketing a surplus at today's prices seems good business; selling off the tools of production may not be so wise in view of the favorable outlook for the beef cattle industry. The American markets have shown an interest in our highest quality cattle and beef, and in the low or manufacturing grades. This has resulted in our domestic market being well stripped of the top grades of beef and has left on Canadian counters largely that middle quality between the good and the manufacturing grades. it has become axiomatic that ‘the home market is the best market,’ for year in and yea- out it absorbs the great bulk of production. Much thought has been given by those interested in the industry as to how that market might be stimulated in its demand for more and better beef. The experience since August 16th. cer- tainly will not further such plans. Abnormally high prices for cattle and feed in the United States have raised Canadian cattle prices to a paint relative to similar qualities on tire iems and plans on January 7, B and 9. The oc- casion will be the mid-winter meeting of the Public Welfare Division of the Canadian Wel- fare Council to be held at the Fort Garry Hotel, Winnipeg. i I i No less a person than Britain's Attorney General, Sir Hartley Shawcroft, warns of the grim spectre of starvation which confronts the world. As he put it, the claims of nationalism arid selfish disputes over state sovereignty were of small importance compared with the grim danger which we all share. ii >1 n This is o characteristic good deed of a curling enthusiast. Owing to a succession of mild seasons, and for other reasons, it's over 30 years since Dirleton curling pond, East Lothias, has remained in being, thanks to a farmer, Mr. William Simpson, of Highfield, who has paid out of his own pocket the club's annual fees to the Royal Caledonion Curling Club. e w n Charles Lamb, English man of letters, es- sayist and poet, died this date i834. He was a civil servant but spent a great deal of time essay writing and corresponding with congenial friends on all sorts of subjects and is ranked with R. L. Stevenson, Martin Tupper, Sir Richard Steele, Andrew Lang, etc., as an ideal writer on a variety of subjects: "The human species, oc- cording to the best theory I can form of it, is composed of two distinct races, the men who borrow, and the men who lend. l mean your bor- rowers of books-those niutilators of collections, spoilers of the symmetry of shelves, and creators of odd volumes." I i i I For readers who are newspapermen The Printed Word publishes this favorite Christmas story. lt deals with the editor who found him- self working Christmas Day on the edition for the following morning. Summoning one of his reporters he said: "Evans get me a good story on how people spend Christmas. A real senti- mental story on what the less fortunate are having for Christmas dinner. Go down to the mission and see what the poor old men are get- ting to eat. Then drop around to the orphanage and ask if the little tykes are getting any tru- key. After that try the YMCA hostel. l'il bet they don't get turkey and cranberry sauce. Yeah, you might look in at the Old People's Home and do a bit on their dinner too. That's all, but make it good. Make our readers glad they are fortunate enough to have Christmas turkey at hbme. And Evans, on your way back drop ‘in at Mike's and get me a ham sandwich and a pot of black coffee." r v Four years ego, on Christmas lee, IQ“, Co- nadion soldiers serving in Italy drove the enemy back across the flooded Senio River to win for themselves something priceless in war — a quiet almost peaceful Christmas. Describing that Christmas along the nine miles of river front held by. the Canadians, Col. C. l‘. Stacey, in his historical summory'cntitled ”The Canadian Army, l939-45" writes: "On Christmas Day, in striking contrast to the bloody Ortono fight- ing of the previous year, the line was very quiet. Let a Corps diarist describe it: "The l Cdn. Corps sector was the only port of the Italian front where there was not a white Christmas. A _wory truce was observed on both banks of thfSenio, except on the 2 Canadian infantry Brigade front. The Germans serenaded Seaforth of Canada with carols on Christmas Eve and one Jerry put his head over the river dyke long en- ough to wish the Canadians a guttural ‘Merry Christmas’. Our troops replied with their ver- sion of ‘Frohliche Weinacht’. Encouraged, the Germans tried o little propaganda, calling on our troops to surrender. Our counter-propaganda was on artillery 'stonk' on the German posi- tions . . . "At the lst. Division's headquarters an officer wrote rather wistfully of the Christ- mas lull: "Tomorrow we return to the cold reality of war and all its ugliness, but we won't forget Christmas i944 because for 24 hours men became human again and war seemed very for away, almost forgotten." 6 Nor thieving fingers, eager for thy S ~ 3 And thy tlfii, frosied horns Surpass tile lfllLYlDtIiS uf ihc iruitezl hours. Muted by vines and muffled by the leaves— Bronze barricades in labyrinthine bowers Through whose deep maze of color autumn grieves. Thou art the first of all the months to begin That arduous upward climbing back tu June, Back to the blossoms richly scent- ed fires. Back to the scarlet rose and yellow whin, Warming the world with rune. Though not one leaf of green is in thy hands Thou are the true beginning of the year. And from thy lengthened nights and frozen lands Came Ceres‘ haiwest and Apollo's spear. Carver of stalactiics, mother of that skill which llmncd by night upon my xvinriow-pane The silver-crayoned etching of the frost. And rcbcJ the pines upon this choric hlil With cunning which the ages ‘have not lost! is sorrow ihcn in vain? Mourn not for these dark days; the heavens are bold. And flerv pageants march the ev- ening sky; And when the last pale ember swoons in cold The iceberg of a winter's night floats by. —Wilson MacDonald in the Canad- ian Geographical Journal. ‘$0M? Old Charlottetown (And P. B. l.) UNIQUE IN OUTLINE It would puzzle a Philadelphia lawyer to name any geometric fig- ure that would be recognized as like the outline of Prince Edward Island; in one place it has the waist of a wasp, and in another the body of a beetle. It is neither one thing nor another, but something of everything that is remarkable for irregularity. It is rather ragged than rugged, covered over with great water arteries, which are supplied from many rlvulets and streams. as if the two great Saints. John and Lawrence, llad entered into partnership to establish a huge filtrsitlng machine for the supply of delicious fresh water for all time. out of the briny gulf, and so con- trived the overflow that every settler could be near a head of water power, and be enabled to labour and bring its fruits to the W°F1d'-* market. cut up or ground. as required. ---From "The Progress and Pros. pects of Prince Edward Isiand," elf"- 1351. by C. Birch Bagster. H-itlefis Yacht For Sale (St. Thomu Times-Journal) Adolf f-lilter's luxurious yacht which was presented to him by adorning Nazis in 193'! may soon join his seven-ton armored car in the United States. The vessel was taken over by the l-‘toyal Navy as part of the war reparations, but the Admiralty had no use for her and sold her to an unknown Briton. who may be unable to maintain the cost oi upkeep, and she lies in an unnamed British port. The "ask- ing" price is £400,000, or Ilblflpw in dollars. Named the Grille which means Whim, the craft sQved the Puehrer es e combination of pleasure craft. and floating conference room in the years before the war. fta luxur- ious interior included three private suites. one of which was set aside for the sole use of Eve Breun. (Oflitllltbd "W! FIB eviiy candiaaics up to date-nil 90 or ovcr—we now have: 4. Mrs. Elizabeth ilviacKeslzie, Back to a host cf hymeneal choirs , 11. Mrs. lviciilizu hizlcDolliild, l2. Arlgus Milrliliiiluli, l3. Miss Sllfllll Nclsoll, (lily 94 l4, Dr. R. J. Nirlrbulruld, St. Peter . 90 15. hfi"s.l>lal'rici- ‘Taylor, flcrill (frrallvlllc . . . ilii l6. Mrs, Duncan hicuilrcry, Churchill . . . . 95 l7. Mrs. Wzllllicc LAJWlllH‘, North Czlrlcioil .. 91 l8. Mr. Robcri. Furncss, Vcr- non £18 l9. Mr. George Turner, Win- 20. Angus Cameron, Clyde River .. .. .. .. 90 21. Robert MacDonald, Crap- aud . . . .. . ..... .. 22. Miss Catherine McCon- Monirase 24. . slie .. .. ...-. .. .. 91 25. Miss Elizabeth McGinnls, S. H. Home ..'104 26. Mrs. John McAulay, Sourls 95 27. Mr. George Younker, Brackley . .. ..... ..93 28. Mr. Joseph Younker, Win- sloe Road .. .................... .. 93 29 IVLrs Charlotte Hoggflrra- vellers’ Rest 30. Mrs. John Kllbrlde. Rich- mond .. 9'! 3i. Marcus Ferguson, Hamp- ton .. . .. -‘94 32. Edmund Welsh, Summer- vLlio .. . 1-2 33. James Benedict Macmi- lan, Summerslde .... 03 34. Mrs. Robert wares, Who-alley River . .. .. .96 35 Mrs. William Weddell, Mount Tryon . 93 36. Mrs. Edward Licard, Norilf Tryon .................... .. M! 37. Mr. .las. Lcard, Borden ....... .. . ...... .. 91 38 Polycaepe Arsellault, Chrysostome . 9i 39 Miss Margaret Montgom- ery, Port Hill . .......103 40. Ellen Harkness, ‘l6 Kins $1., Summerslde i! 41. William Heffcll, haven't-i?" o5 Rios?- .. .. ..... .. 4-2. Mrs. Jilin-y Kennedy Mur- ray Harbor North, but now living at Montague"... 9i . Mrs. Strong. Cape Wolfe... 01 44. Mrs. Annie Weeks, Elma- daie, . . . . . . . . . . . . . . . . . . . . .. LONGEVITY CANDIDATES sll',—fil'lliglllg the list of long- 1. Mrs. William Smith, Newton (floss .. 96 2. Donald MacKinnon, North River . 90 3. Mrs. Sarah Tumiyn, Sum- lnersicie , 95 Charlottetown .. . .. 104 Miss Teresa Reid, Chili'- lottetowil . . .. .. £7 ti. Thomas Henderson, Long Creek .. .. .. .. .. 92 '7. Mr. George Auld, Win-aloe. 93 8. Mrs. George Auld, WlllS- 9 u loo .. _ . 9 Frank Sanderson, North River . ' . .. 92 Mrs. Gaspard Arsellilult, ll0\\'lt\il St. Point's , sloe Road . 93 nack, S. H. Home _ 101 Charles Priclham. . 90 45. Mrs. Alcxander- Cameron, Elmsdaie who will be 87 on Christmas day. I arm, Sir, etc., UNCLE JOB. Sir. — I wish‘ to add several names to your liat. of persona ninety yearaand over. livinginTlg- nish and surrounding districts. they are as follower- Mr. Arcade Doucette, Road, (North) 93. Mrs. Ameline Perry. Peter Road, iim. James Kinch, mnuh vil- la e, 94 Pond. 98. Mr. Peter U. Village, 9i. M5,. Arcade Pefly, St. Felix. 00. Palmer 8 93. Mr. Edward Clohoasey, Skinner's Gaudet, rigilish is their only true friend, that the Western Powers are their enemies and their opprcssorrs. The elector- ate of Western Berlin has made it excessively clear that this pro- paganda has failed entirely-de- feated by the actions of the Soviet Military Government itself. Nor is there any doubt that free elections in the Soviet sector of Berlin and indeed in the Soviet Zone of Germany would have sim- ilar results. The Russians them- selves know'it. That is why they lllivc banned the municipal election in their own sector of Berlin. and "postponed" all local Government elections in their own zone. Even with all the apparatus of intimid- ation at their disposal. they know that resentment of their methods ls so strong that there would be (since opposition voting would be impossible) a formidable absten- lion. e e e So, lll all Soviet-controlled areas, democratic institutions are now destroyed. Tin-re is no freedom of spcccir. no freedom of the press, no ircdoni of organisation. and no elections. The Four Powers nre pledged by the Potsdam Agreement to the "reconstruction of German political life on a democratic basis." That plegde is being loyally fulfilled in the Western Zones and lll Western Berlin. In the Eastern Zone,und in the Soviet sector of Berlin it is being, in practice, re- pudiated. The Soviet authorities are establishing not a. democracy but a dictatorship of a small min- ority party, which, dictatorial to its own fellow citizens, is humbly sub- servient to Moscow. The pattern is a new "municip- ality" set up in the Soviet sector of Berlin, arrogantiy claiming to be the lawful Government of the whole city. 0n November 30th a small min- ority of members of the old city Assembly~elected October 194G - rnet together. There were only some 30 out of the 130 members: ‘Z8 of them belonging to the “Socialist Unity Party", which is in ilact Communist. With them were a number of "delegates" from Communist - controlled organisa- tions. 'l‘hi.s self-appointed meeting has declared itself the city As- scmbly of all Berlin. It. has ap- pointed an executive magistrate: it has nominated a chief Burgo- master. And it has been promptly recognised and promised all sup- port by the acting Soviet Coni- malldant. So the partition of Berlin for which the Russians have been working ever since last spring- when they brought the work of the Four-Power Kommandatura to an end. is now completed. O O O There is no Four-Power control of the whole city, there is no German administration of the whole city. There are two inun- iclpal Assemblies-a freely elected. one in the sit-appointed one in the s... There are two chief Btu two sets of municipal departments, clea. There are. in fact. two Ber- llns: on; democratic, the dum from Powers to the Security puts it: "although this illegal body (the Soviet sponsored municipality) will be excluded from usurping any ‘functions of the legal city Gov- e- t. so far as the Western sec- tors of Berlin are concerned, its existencg in the Bovlet sector will end ellepossibility of a legal, un- ifled administration functioning on a city-wide basis. This is the deve- lopment the Western Powers have consistently striven to avoid. It is obvious that the de facto political division of the city makes the es- tablishment of a single currency extremely difficult." That. as beseems sn official dip- lomatic document, la im under- statement. Soviet action has, in Western sectors, a. trial, two police forces and two curren- other totalitsrian. As a joint memoran- the Three Western ~ Council non-essential jiroduciiori. wage controls as well. Summary: (b) essential consumer goods. A n (d) ( ) quire dollars in payment, e physical production. history. one is a Four-Power machinery of supervision and control. The other is a responsible German all- Berlbl machinery of administrat- ion. The Russian section has made both these essentials impossible. I O O The Soviet Government first of all denied the right of the Security Council to deal with the question at all. It then vetoed a carefully considered resolution put forward by six neutral council members ac- ccpted by the Western Powers. NOW. by its action in Berlin it pre- vents ille Council from itself de- vising and proposing any work- able currency plan. Just as Marshal Sokolovsky- of course under ordcrs-sabtoaged and made impossible of execution the agreement reached in Moscow August 30th, so he now sabotages in advance and makes impossible of execution any Council sehqsse for a. new currency arrangement; and for a concurrent lifting of the blockade. That is the real significance of G. When the tie-control of prices was initiated. the first item; d‘. controlled were luxury goods and capital goods. large segment of our productive capacity out of essential production into Further, as the luxury and capital goods in- dustrles could afford to pay higher wages (because there was no ceiling on their selling price), those industries were able to attract labour out of tile essential industries where price controls, in effect, operated u This diverted a further 7. Thus by the t that the de-control of essential consumer goods was reached. produ n substantially reduced in relation to money supply, whlls demand on domestic production had been sharply increased by the cutting off of external sources of supply. In addition, the costLof raw materials llad been mounting, for the reasons detailed elsewhere in these articles, and there was an accumulated d mand, by labour in the consumer goods industries, for their wages to ' into line with wages in other industries. vloldnt rise in the cost of living which in n single year has carried i: far above the levels reached by tire acute 1920 inflation. r e brought The result was inevitable: a 8. In conclusion, let me briefly summarise the analysis of the funde- nlcnial causes of Canada's cost of living crisis: ' (a) First, the marginal producers nf csseriiiiii consumer goods were squeezed out by removal of subsidies while price controls were maintained, iirus reducing production of these goods. Second, through removal of price controls on luxuries while they were retained upon cssentlni goods, it was made more profitable for business and industry to produce non-essential luxury goods and capital goods, than to continue to produce Third, the movement initiated in the second step of Government tie-control, was accelerated by the introduction of l capital in- vestment subsidy which effected a maximum diversion of labour and materials away from the production of consumer goods. FQUFU‘. the SUPPlY 0f Eoods was furilier restricted by a seriel of Government embargoes, quotas, and resiricil. ..s against 1m. ports, even those from Sterling Arca countries who did not re- Fifth, the Indirect Taxation policy of the Dominion Govern- ment has everywhere increased costs, restrlctr ’ production, hsm. pered inltlativenand raised prices. system of indirect taxation, as well as to the special excise taxes and customs duties imposed during the past several mpnthg, (f) Sixth, the expansion of the money supply and credit was allow- cd to proceed. unchecked, at twice the rote of increase in the This npplles to the general 9. In the circumstances in which Canada found herself at the end of the war, the policies and procedures followed by the Government ggulfl not fall to produce inflation, and it ls the destruction of consumer pur- chaégég power through inflation which has reduced the Canadian dollar to and raised the cost of living to the highest level ln Canadian 10. In previous articles I have exami d th In fflllvwini; articles I shall deal with tlilee alteinhitliliii: libarthlldtlilepltileailn. the inflationary situation in which we find ourselves. the Berlin happenings of the past fortnight. They make itciear that the oblivctive ofth, soviet Gqvgfn- ment is not to reach a settlement or restore a unified democratic ad- ministration of Berlin under an in- ier-Allied governing authority. as laid down in the Iibur-Power de- claration of June 5th, 1945. It is to divide the city, to dlgiocgte it; "(Jimmy and to continue the blockade ln the hope of thereby foiclns tile Vlicstern Allies w withdraw nnci hand over the oori- iroi of tire \\'l'l0lC city to the Soviet authorities and their Communist vassals. It. is a.n objective which will not be attained. . n. iige-illii Story l- l! .1 T u shalt keep ll a that it may go well with thee and with thy children after thee. Arrnsicuurrou 4 We wish to thank our many Policy-holders for their liberal patronage during tire post year, assuring them that our efforts to provide a complete insurance service will not The Management, Staff and Agency organization join in extending to all, the Season's Greetings. yllYlllillllll bl 00. Limited insurance Since i872. Offices: 'cllflflflflfflflllf-silfltlfiifildk-MOIIIIQUO 0 Agents throughout the Province. _ fsct, and; it impossible for the cg; g,“ and.“ s: “nah patient efforts of Dr. Brsmuglls Mn phjuo, Nlenmm, puma. and his colleagues/to have any Rout n practical result. A suggested ex- I m, 5h.’ “c, pert committee can work out plans READER for currency settlement. but any “m,” _ conceivable plan would requirg two r ersentisls for its operation. The