Mora FOUR TllE i BIIARLOTTETOWII (lllhlilllllll

Morning Ts-duhdirid"lnfilll8lll_ Authorized as Second Class Mall. Poss Oftlco Department. Ottawa.

Prelldoas, Ian A. Burnett; Vlco-Frelldonf, Wm. l, Bllmflhi Serb/Ilium» G. M. Bartlett; Editor and Managing Director. J. 1t. Burnett; Associate Editor.

Frank Walker.

“The Strongest Memory is Weaker Than the Weakest Ink." uunxusrm uisniuurv l9, 1241

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Railway Car Shortalgb-

As noted in a despatch in Monday's issue, the Transport Controller has ordered the rail- "Yi 1° SUPPIY U76 empty boxcars daily to move wheat and grain from Western Canada r0 the ports and to take care of domestic feed re- quirements during the’next six weeks.

The scarcity of cars became so acute last month that the Canadian National Railways found It necessary to cbmargo all Shipments at 9111111 to and from terminal elevators at Port Arthur and Vancouver. That was to get more cars into Alberta for west-bound movement of wheat. Before that time farmers at many points in Alberta had been inconvenienced, because ele- vators, unable to get cars, had become plugged with grain, and further deliveries had to be re- fused. lt is also due to that fact that the Can- adian Wheat Board hcd continued to limit sav- ercly country deliveries of oats and barley, in order that wheat might have priority. The long continuance of quota restrictions on coarse grain deliveries has been a matter of regret for several reasons. lt has been especially incon- venient to those farmers who rely on such grains for their main cash crap. lt has tended to weaken the success of government propaganda to the effect that farmers should plan to grow more of such grains in 1947. lt has been re- sented in eastern Canada, where many livestock feeders have been claiming that unless move- ment of western feed grains could be speeded up, they would be unable to continue their feeding operations. And it has also resulted in very severe liinitations on export of oats and barley to the United States, with a consequent limitation on the income ultimately to be de- rived by western farmers from such grains.

Throughout the period of car scarcity pri- ority has been given to shipment of wheat to mills, whether in Eastern or in Western Canada. Milling capacity in this country, whether east or west, has been driven to capacity in order to keep pace with orders for exports. Not only is o considerable part of the wheat allotment for Great Britain being token III the form of flour, but non contract countries have also been de- manding flour instead of unmilled wlat. This is in contrast with pre-war conditions, when mills had a struggle to keep up their export business. Most importing countries, including Great Brit- ain, wanted to get Canadian wheat unmilled, both to keep their own mills running, and to mix with their domestic wheats, in order to bring the latter up to an acceptable milling quality. Now, much of the milling capacity of both Great Britain and of continental countries has be:n destroyed during the war, while re- maining mills find it difficult to get enough fuel to keep them operating.

As our potato shippers are aware, the car shortage is not peculiar to the grain business in Western Canada. lt is felt all over this country, and in many different lines of business. The railways simply cannot supply cars as rap- idly as they are demand-ed for loading by their customers. A corresponding situation exists in the United States.

tlirhlternatlve

The Times (London), reviewing the question of Palestine, comes to the conclusion that there is now no more possibility of a settlement based upon agrccmcnt bct-ncen Jcw and Arab and therefor: that partition is the only practical solution open. Th: Times says:

"Since Britain can not admit exclusive right of cirlicr Jaws cr Arabs to control Poles- tine without betraying its obligation of honor to one or the other, partition constitutes the only solution."

Compromise must be imposed from without because th: Jaws and the Arabs are manifestly incapable o.‘ comprcmis: botwc-en themselves. Th: Jews want Palestine for the Jews and the Arabs want Palcstine for the Arabs.

And they want what they want so bit- terly and pa:s'cna'~ly that the peaceful alterna- tivz, whctt Th: Ti. calls "tlic British plan to create an indzpzndcnt bi-national state by pro- cess at gradual evolution," i: no Ionqer possible. I 5Q be partition if it is not to be vrlr.

t u

BlIflIEsTF-‘nlflfl Taxes

Some telling r-rg. .;';.s in favor of lowering the present high lav-cl of income taxes in Can- ada ore givsn in apamphlet entitled "Thrift, Industry and Enterprise", written by Professor John L. McDougall, of Queen's University, and published by the Income Tax Payers’ Associa- tion. Only after a glance back to the pre-war position does one realize how great has been the increase in the Canadian income tax, and how heavily it presses upon ordinary people. Perhaps $51K” pcr year may be token as o reasonable breaking point, below which figure the great bulk of tho population lies. At 1939 a single man without dependents and with on income of $5,- 810 psr year would pay on his 1938 income a total tn of $180. The rate on any small ox- cons om $5,000 was 7 por cent.

That is tho tax which will be paid in 1947 upon on income of $1,500. ‘The first $750_of incoms is oxcmpt. Tho rate upon tho nut 250 dollars is 21 por cent, on tho next 750 dollars, 2S por cont, on the next 1,500 dollars, 28 per cont and on tho nut 1M0 dollars, 31 pcr cent. The tstol to: on $5,001 of income is $1,205 or .24 pcs pent of his total income. This is ' 6.7 times or much as the some man was paying in 19”.‘

All slum cf workers oro odvmcly affect-

tox, but in Professor Mc- worst case of all is that of tho farmer. E one of his operations is spread out over time. Land ploughed in tho fall of I946 will give him a crop in I947. If it is fed to hogs they will reach the market not earlier than the spring of 1948. In tho coso of cattle the timespread is even longer. The calf conceived in the spring of 1946 will mature as beef in the fall of 1949. Throughout that whole period the farmer is exposed to risk. If prices decline he must bear the brunt of it; and always there is the certainty that raising meat animals will add a great deal to his labour. Feed must be handled. Barns must be cleaned. Man- ure must be carried away. Someone must be on duty to feed at close and regular intervals. If in the end a profit is mode, the government ap- propriates a very large part of it; if there is a loss it is the farmer's wholly. ‘

od by this crushi Dougall’: opinion

r- EDITORIAL NUIhS ._

H Ash Wednesday, first day in Lent. ,. r

k i ‘Ir Farmers Week—we are all farmers or fish- ermen here. I I I I Everything comes to him who perseveres doggedly and detsrminodIy-hence the floor on fox pelts. I Q D i It is no news to report that the C. N. R. had a deficit last year. Had it been a surplus— well then that would have been something to go to market on. I i I fl The Government has taken a round-about way of letting it be known that it is increasing the subsidy to western grain growers by 30 per cent to be paid out of taxation in order that the retail price of bread remain as at present.

swoon

Milk production in Canada has been falling steadily since I942, in which year it was I432 pounds per capita. lt fell to I417 in 1943, to 1405 in I944, to 1392 in 1945, and to 1321 in 1946. These figures cover all milk produced in Canada except that fed to livestock.

I i i i

Direct airline services between Australia and the United States will start on February 23rd. This decision follows a series of talks between United States Civil Aviation and airline repre- sentatives, now in Melbourne for the Interna- tional Air Conference, ond Australian author- ities.

I I I I

The Maritime Premiers are unanimous in protesting against the jurisdiction of the Trans- port Commission in hearing the Railway's appeal for increased freight rates. The trouble is, how- ever, that the Board considers itself by law part and parcel of the railway system, there merely for the purpose of consid ing such matters, ir- respective of the opinions or wishes of John Pub- lic, who must foot the bill anyhow.

nwwn

Grace before meals is still requisite, and should be cultivated early. As children learn rhymes more easily than prose here is a simple grace for four-year-olds: "Dear Father in Hea- ven our thanks now we bring; For food and for clothing and every good thing." There are two more lines but these will be enough for a be- ginning.

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Mr. E. Beniamin Rogers, First Secretory of the Canadian Embassy at Rio Joneiro, Brazil, will be acting Ambassador when Am" ssodor Jean Desy goes on leave shortly. Mr. Rog- ers is the son of Mr. and Mrs. R. H. Rogers of this city, and has made a distinct success of his career in the diplomatic service. He is a graduate of Prince of Wales and Dalhousioy and previously served in Washington, U. S. A., and Canberra, Australia.

i W

Nicolaus Copernicus, Polish astronomer, born this date I473; and Galileo Galilei, astron- omer and physicist, born this date I564; both demonstrated in published works that the earth and other planets revolve round the sun, o revolutionary truism which so upset the bureau- crats of their day that they were landed into endless trouble. Nevertheless they were right, and the latter's Dialogue of the New Science, first published in I638, was officially issued by the Italian Government only in I890, with an English translation in*I9l4. fi

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Addressing the University Club of New York at a dinner in his honor, His Excellency, Lord Alexander, said the great link betwcen our two countries was that their outlook on life was fundamentally the some. "You cannot by any stretch of the imagination soy that Canadians and Americans oro the same," h: continued. "They are quite different and l think it is very important that they are, because by being dif- ferent they con be complementary to one an- other, ond can contribute something to each other. We must work not only to maintain these happy conditions but makethem even firm- or and stronger so that Canadians and Ameri- cans will increasingly gain in security and pros- perity as thc ycars‘go by."

The Opposition Leader was right to stress the fact that our export trade ot present con- sists too largely of giving goods away, or selling thcm on credits which will never be ropaid. This is a necessary port of any plan for reconstruct- ing world commerce, but it is vital that the Can- adian people should understand what it is all about, and should know that exports for which no mum can be obtained are on investment in tho future, and not a rcal contribution to our economic life ot present. During the war, The Letter-Review repeatedly protested against in- cluding materials shippcd for war purposes in our figures of exports, and again suggosts that export figures issued by DIS should indicate tho proportion of exports actually sold abroad, and thosrwhich on shipped abroad as contributions to the rc-cstabllshmsnt of the economics of other

countries, oithor as gifts, or on credits which wc know will not bc repaid. .

THE CMWETOWN CUAxlnAn

llctss lly Tho lfsy

It 1| difficult to lrollevo that my- one needs more than 20 minutes to express his vlews on my Issue before Parliament. Exception; must be made, of course. Ministers some- times have to pul great volumes of factual ‘Lrformation before the House, as for instance. in lhe bud- get. But ln the matter of opinion- ntlve debating, lt should be a mot- ler of pride with a speaker to achieve terseness and brevity. Windsor Daily Star.

Britain's sclentlsls are studying the possibilities of developing whale meat as a staple human food in addition‘ to the spcrm oil which is already providing ouch valuable 1111111 in overcoming the world shOrl- age of fats. Pre-war figures ln- dicate that, it‘ the present. tests are satisfactory, the whales place on the menu may well be an import- ant one, Medli-nl science maintains that the whale meat proteins sur- pass in health value for children those obtained from land animals. and research workers are devoting partlcular attention to testing the most palatable methods at pre- paring whale meat for the table. —UK Information Office,

The famous Glacier Meteor IV, “EE. 549", recently flew from Paris London at an average speed in ex- ('05s of the existing world's speed record. The total recorded time for the official 208 miles was 20 mlns. 11 secs. and the average speed 618 mph; the first cross- country flight ln the world ever to have been officially recorded at an average speed of over 600 mph. This aircraft lust September established the world's speed re- cord of 616 mph. —Brllish Aircraft Society.

When black pepper praollcally disappeared and white pepper be- came hard to get. many cafes served shakers with smaller holes. One restaurant operator plugged the holes entirely. Diners would shake the white pepper container. Nine out of fen he said. thought they had peppered their meat and were c'1tcnl. -Patl\f1rider.

The station of the national nel- work at Watrorus, for instant-ca, undoubtedly ls staffed "with the saddest. most discouraged an- nounrcrc to br- hcarrl anywhere Thom is suffering in each word they utter. Mways they sound on the verge of tears, anguished sobs. As for several of the local stations scattered throughout the province, their mangling of the language is almost beycncl belief. Same of the ncwsoastors mlspro- rac-unce the simplest words and. in their sing-song delivery. reveal cam- plctc unfamiliarity with their sub- jcct nrallcr. ~Pr1nce Albcrl Herald.

Wliut may prove lo he Britain's "gill" to United Sllilts tnoiorists has arrived iu the Docket of Can- adian-bomr W,W Baldwin. once cf Wnll Street. He is marketing the Baldwin-Auger automatic car pnrk. By moans cf ilic mechanism. a cur parkul on plaffoxms atop slccl rails i; dialed clcclricalhv to a storage spare-and back when the owner returns Average dc- livery time is three minutes. Whlle cost at the mechanism ls figured at around $500 per car space. 013E1- ating costs are low; utilization of '79 percent. of floor space ls claim- ed. The company hopes to park England's cars for l0 cents an hour. -Business lvoek.

Soon after war trolre out ln 1939, an Australian missionary and his wifc. Mr and Mrs. Albert Wyld, decided that something had to be done for the llttla black waits of the descrl~thc aboriginal children who had been deserted by their tribes, Among the sandhills cut from Part Augusta in South Aust- ralia, they built a rough. iron- roofcd wooden house. To this ram- shackle “home? they brought a ha-ardful of piramlinies, and taught them the rildimcnl; of Christian- ily. the czmforl of soap and water. clcnn clothes and lllp mystrrlcs of reading and writing. The first handful a! childron- has new grown in number to thirty, whose ages range from ll months ta l7 years, The rough. QTIQIXIGI home recently

gave way lo v modern building with right dormitories. two bath- rooms. a-tld all the modern con- veniences. Two teacher mission-

nrles of long experience now con- trol the establishment. They accept no wages for their work. uslrg the money allovred them by the South Australian l-Jdixcatlon Department to buy clothes for their charges. The Slate Government and gener- ous citlzans have provided the now home. This new type of missionary work should eventually become a great. force In the preservation of the native race In Australia.

Blll Oliver. postmaster at the Coober Pody opal fleld ln Qtentml Australia, ls not sure who was sill- inr-lhe opal buyer who offered hlm 100 gulneas for hls tom cat. Tiger, or himself for refusing it. Tlgor ls huge- bigger than moat fox terriers. Sold Bill: "Th1; buyer took a great fancy to Tiger. When I told hlm that. money would not buy him, he nut £100 in my hand. I refused. and he sold he would make 1t gulncas. Tiger and 1 have been together for alx years, and we would be loot without each other. l-fow could I let. a on that knew only the back collnlry be taken to the city, whore he would probably get. lost or run overt" Bob Trow. who lives hcroos tho way from Bill, sald: "The buyer affer- ed rne f5 lf I could pmuade Bill to let Tlgcr go. but I k-mrar lt would 1k n waste of time.“ -h~om Aust- tallan New-slates‘.

Irvin 8. Cobb once told of a nloo old lsdy. enjoying her first rtde tn a tqrloob. Clalng through honvy 1111116, the old ildy IPQV more and more axcrvotis as the driver kept. remcvlng his hand from the nicer- inc wheel. pulling 1t outside tho our. finally. the old lady could

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: ‘\r'i\'. l" fifl :§ vuouc FORUM.

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DOMINATING INFLUENCE 0F THE NATIONAL DEBT

Slim-In the total volume of promises to pay ln suspension the National Debt has bocoine

since the war the largest, and as a mortgage ls secured upon a building or a debenture upon a business, the National Debt ls secured upon tho potential of goods-food, clothing, shelter. heating, 01.6.. and services of all the people of the nation.

The incidence of the National Debt; in relation to the total vol- ume of promises lo pay ln being, coming into bclng and being dls- charged ls communicated in some degree Lo every transaclion for money that takes place.

'I‘he Notional Debt 1s an invest- mcnt that cannot be defaulted on as long as interest on ll can be taken out. of the taxpayers by the Government. Bu’. an unhealthy proportion of the stream of new promises to pay which ls diverted as taxation by the Government leaves less and less for the dis- charge of trthar non-Government yrrcrmiscs to pay and thus loads to n rvdlltlloll of the stream.

Of the three factors. National Debt, annual taxable capacity and annual turnover (which I prefer to cnll the annual stream ot new promises to pay) the National Debt can be consldarod as fixed. if it can be prevented from rls- ing. uhlle the other two are vari- able and now anaemic and en- feobled.

T110 National Debt cannot be reduced as long as the other two factors, annual taxable capacity and annual money turnover" (new promises to pay) are reduced. Tlils last factor. the stream of now promises lo pay, depends upon thn pnlvnblrll ln all material possessions and svrvlcns to bring new promises to pay info being.

In short what this means ls that. what ls required ls a rlsc ln all pFICOS, wages and salaries and charges for all kinds of services .15 war in the sum of annual money turnover (or stream 01 new promises ta pay) rcsullln! therefrom. measure up to the tax- able capacity required by the lr- reducible value of the National Debt.

The only way to encourage the production of true wealth-food. clothing, housing. heating, etc.- is to vncourugc consumption. es- pccially among the lower income pcoplc.

T110 National Debt of Cnnadn has risen to such n $110 101‘ 11 population of l2 million proplc that ll completely dominates our money system,

The Central Bank of Canada today ls nothing if not an 1n- strumcnt of policy and a Gov- ornmclll which. like Cannda's.ha5 n huge national debt. to manage must do so through tho Cvlllrfll Bank. The Central Bank l5 111! agent. of the Government and therefore the 51106151 l-YDQ 9! promises to pay ln ivhrch the Central Bank deals, and i110 WHY In which it manaSPS 11- B" °l peculiar‘ importance to the mun- agc-ment of the National Debt.

The question naturally ls, 110W can the Central Bank dcul Wlllfl this important. matter? That. clever and huncsl: economist. Slr Norman Angel, has outlined the sound and efficient means by which the CentralBank can carry fr. out successfully. He states that temporary mancy, of a meal llck- ct. variety, can be issued by the Central Bank to the lower 1n- come people and thus increase the demand for goods-food, 010' thing. shelter, healing, etc. and so encourage the lncrease of the production of such goods. But. he adds that such temporary ‘money must. be taken out of circulation after it has functioned by ll: re- demption by the Central Bunk Issue of a credit. ln the Commer- cial Bank to ulsose persons who accepted tho lomporarqualoney ln pxchaflgc for lficir goods, and create a debt In the Ocnl-rll B11111! to be closed when potential pro- duction of goods-food, Nothing. housing, heating, etc-bl’ 1h" method of Increasing supply by increasing demand has so 1n- crcascd that the turnover in pro- flt. will enable‘ the Government t.o lax the makers of the M618"!!! pruflls to wipe out the dcblt of -the temporary money ln Central Bank when lt was withdrawn from clrculatlon after ft had functioned and thus avoided Inflation.