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HomeMy WebLinkAboutTimes-Advocate, 1981-07-29, Page 4• Page 4 Times -Advocate, July 29, 1981 limes Established 1873 Advocate Established 1881 Imes -Advocate I••••r..,,I••••r••. rw- • ti. ,••.•11 ......r. r1 SERVING CANADA S BEST FARMLAND C W N A O W N A CLASS 'A' AND ABC MEMBER ONTARIO PRESS COUNCIL Published by 1 W Eedy Publications Limited LORNE EEDY PUBLISHER Editor -- Brll Batten A,.istont Editor -- Ross Haugh Advertising Manager -- Jim Beckett Composition Manager -- Harry DeVries Business Monoger — Dick Jongkind Phone 235-1331 eNA • Amalgamated 1924 Published Each Wednesday Morning at Exeter, Ontario Second Class Mail Regi stration Number 0386 SUBSCRIPTION RATES: Canada SI 7.00 Per Year; USA $35.00 Better than diet There's great news for most people this week and there are even a few who have won the battle of the bulge over- night. No. they didn't hit upon some new and sensational diet plan in their fight against weight. They didn't have to jog around the clock or even go without meals for a week. Many people managed to come within closer range of the ideal weight through less strenuous methods than any of the above. What happened is that the ideal weights were revised. They have been increased by over 10 pounds, no doubt a victim of today's inflation. Since 1959, a man who stands 5'11" to 6'2" was told he should weigh between 145 and 154 pounds. Under new guidelines he can now balloon to 165 to 174 pounds. There are similar increases for people of all heights. Unfortunately, there are many who will still find themselves over -weight, even with the new guidelines. But in- stead of being told they should lose 30 pounds. it is now only 20. Some may see that as a more realistic goal and strive to attain it. Others, of course, will just sit back and hope that in another few years the figures will be increased again, to come even closer to their physical figures. Help tenants too In endorsing a resolution from the Town of Leamington, members of Ex- eter council have joined the list of politicians in this country who share the misguided belief that high interest rates affect only home owners. They. along with opposition leader Joe Clark, would like to see plans in- stituted whereby homeowners would be saved from the burden of high mortgage and interest rates. The Leamington resolution notes that the pride in, and the responsibility of. home ownership should be within the grasp of all Canadian families. The fact is, many Canadians by choice, prefer to live in rented accommodation and are just as adversely affected by high mortgage rates as homeowners. In fact. tenants do not benefit from the tax-free imputed income and capital gains on their holdings as do homeowners and yet most renters are forced to pay higher rents as a result of the interest squeeze on their landlords. Programs that provide assistance on mortgage payments or property tax credits are unfair if they fail to provide similar assistance to tenants, many of whom find themselves in the same financial woes as homeowners when it comes time to make their monthly payments. Many Canadians are adversely affected in one way or another by high interest rates, and the remedy must be aimed at the most needy, whether they be tenants or owners. Politicians at all levels must be reminded that government spending continues to be one of the major factors in the rampant inflation that is foster- ing increased interest rates and cut- backs in government spending would go a long way towards leaving people with more money available to meet their ac- commodation costs, whether they be tenants or owners. A hungry world For the majority of the people in the world today the great dominating • problem is a cold. empty feeling in the pit of the stomach that is unlikely ever to become a warm, full feeling. Hunger is a primary stimulant of the revolutionary discontent that could lead to total war in our time. The exter- nal aid programs of our government may be . in the long run, far more im- portant for our national security than anything that can be done by our Department of National Defence. Democracy's greatest enemy is not communism or any other ideology -- it is the dehumanizing poverty and hunger of so many of the world's peo- ple. If you and your children were destined to go through life with that cold. empty feeling always in the pit of the stomach. would you see any really significant difference between the democratic style of life and the com- munist or other totalitarian style? By SYD FLETCHER With high interest rates, Inflation and a lot of people out of work it would seem that the country is going to the dogs, that times have never been worse. Not so. I've talked to a few people who lived through the "hungry thirties" and they've let me in on what it was like then. Prices were indeed low. 1 As Bertrand Russell once asked. "If one man offers you democracy and another offers you a bag of grain, at what stage of starvation will you prefer grain to the vote?" What kind of political decisions would you make if you and your family and most of the people in your community suffered chronic malnutrition? Here our calculating self-interest is not enough -- although political reali- ty and psychological insight demand that we do not casually dismiss such motivation. But compassion -- literally. "suffering with" -- must always be a dimension of our nation's foreign policy. There is. of course. at present a good deal of authentic compassion in Canada's foreign policy, but it must be extended and strengthened. And to do what we may have to sacrifice some of our national affluence. take a few raisins out of our fruitcake. Contributed Perspectives Bread was 5 cents a loaf, hamburger a dime a pound, a good dress shirt about one dollar, gond brick homes for about $4,000 and servants at about one or two dollars per day. But that was not all. Wheat was 19 cents a bushel; the hest pigs sold for S2 each (not 2 dollars a hundred weight ) Farmers shipped cattle to market and were billed back excess freight - the cattle didn't pay the cost of the freight' Ilundreds of peoiple were on relief and couldn't afford to even pay taxes much less interest on their mortgages. Practically every farmer was forced into debt (although today's farmer is no different) and was heavily mortgaged (again not very unusual) In the winter of 1933 things grew desperate. Eggs were 5 cents a dozen; cattle were bringing Sor 6cents a pound. Evictions for non-payment of debts began to take place. Salaries of people were dramatically cut ( none of this worry about inflation mind you).. People didn't complain too much, not if they valued their jobs. Teachers' salaries were dropped from $105o per year to $400 and often they could not collect their wages from a township because of so many people being behind in taxes. More about the good old days next week. "Well, what will it be — ►t'ulk or catch the bus and'not eat next week?" BATT'N ARO • Mail strike brings benefits to some A couple of weeks ago mention was made that the postal strike afforded many people an opportunity of escaping the daily barrage of bills. Of course, it creates financial headaches for those who rely on the mail for receiving money and once again the financial institutions are real- ly the big winners. Aren't they always? Individuals and firms who missed delivery of cheques were forced to hike to the bank or loan company to get some short-term assistance to boost their cash flow positions. Most of those loans were received with an_ accom- panying interest rate of somewhere over 21 percent; Meanwhile. those who are enjoying relief from the usual strain on their bank accounts and watching their savings grow. are doing so with in- terest rates being added of anywhere from 12 to 16 percent, with a few of the more fortunate getting up to 171 by putting their new-found wealth into short term deposits. However. there is still a spread of at least five percent, and when you con- sider the fact that millions of dollars are involved across the nation, it can be readily seen that the financial in- stitutions are among those who derive benefits from a postal strike. • Another group who get some respite from a postal service interruption are those who either can't afford to take extended holiday trips or merely choose to wait out the summer in the friendly confines of their backyards. Normally. these folk are inundated with a host of picture post cards from friends. neighbors and relatives who are enjoying the sights of this or other countries. While many of the holidayers return home before their mailings do, the notes about "having a great time.wish you were here" no longer arrive to make stay -at -homers envious. 1t also serves as a break for the holidayers as well. No longer do they have to cut short their relaxation beside the pool or in the bar to hustle back to the confining walls of a small hotel room to spend a couple of hours sending along postcards to those people back home. The only losers, it would appear, are the poor characters who attempt to make their livelihood producing post cards. • Actually. the credibility of most peo- ple is maintained when they can't send post cards. They tend to make liars out of most of us because of their limited space for written messages. There's nothing quite like a tiny two and a half inch blank square to inhibit people from telling the truth. They sit down to pen a message and by the time they get the "Dear Folks" salutation completed. they find they have room for only two or three more words. Generally speaking, this remaining space is filled in with some half truth about the good weather. or the good times. or the beautiful view, etc., etc. Given more space. people would react truthfully and detail the fact that it rained for the first five of their six days; that they had engine trouble with the family car and were forced to lay over in some remote, non-descript town where the only mechanic was an alcoholic who charged exorbitant rates to feed his habit:that the baby had colic or the old man was grounded with diarrhea for two days; that the mosquitoes were bigger than the fish and bit much more frequently; that they were stranded for three days in Tobermory while they fixed holes in the ferry. etc.. etc. Few of those tales are related until the vacationers get home and in an un- guarded moment relate some of the horror stories which ruin a holiday for many people. It's always strange that when the conversation .-gets around to holiday trips. most people have little trouble recalling the trials and tribulations but can't remember anything memorable about a previous sojourn. Why is it that bad times and ex- periences are always more vivid and stick in our minds more than the good times? • The old adage about being penny wise and pound foolish (that translates in- to dollars and cents if you're not familiar with the British coinage system ) appears to be the situation regarding the upkeep on Exeter's ten- nis courts. A discussion last week revealed that the courts were deteriorating due to a lack of general maintenance and the reported response from recreation of- ficials was that there was not enough staff hours available to keep the courts in good condition. Obviously. that is a situation that must be immediately corrected by the rec centre board. Some method should also be considered for charging tennis players an entrance fee that would pay for the normal upkeep on the courts. Surely they could be persuaded to con- tribute through some type of honor system that would alleviate the necessity for costly and complex ad- ministration. By the same token, those who are concerned about the fact the courts are never swept should be reminded that they could pool their resources to purchase a suitable broom and under- take the task periodically on their own in return for the availability of the facility for their pleasure. The accompanying exercise may serve as a suitable pre -game warmup. "A.s' an Alberta businessman, has the impasse on an oil agreement had any effect on you?" DOUAR SERSE Saving gas and money in hands of driver By Alan C. Gunn, CA How much money do you spend -- per week, per month and per year •- for gasoline? If you can't answer that question at least fairly accurately, chances are you're spending too much. And the chances are that you are among the vast majority of Canadians who actually waste gasoline. In fact, in a time when gas- oline prices have quad- rupled in the last 10 years, with no end of further price increases in sight, we have the worst conservation record in the industrialized world. Conserving gasoline simply makes good finan- cial sense, and the ways to Dollar Sense offers general financial advice by members of The Institute of Chartered Accountants of Ontario. do it are equally simple. Here are a few. First, keep your car in proper tune. The modern automobile is more fuel- efficient than that of 10 years ago, but that extra efficiency is wasted if you don't keep it in tune. A dirty air filter, for example, can waste up to 64 gallons per year, while fouled spark plugs or poorly adjusted timing means that unburnt gas is blown out with the exhaust. Next, keep tires properly inflated. The drag of soft tires can cost you an extra six'per cent in gas. Observe' the speed limit. It takes 22 per cent more gas to travel the same distance at 112 kilometres per hour than at 80. Let the engine warm gradually, instead of gun- ning it in the morning. And don't let it idle on high while you wait. One minute of idling uses more gas than starting the motor. Then, don't tear away in a jackrabbit start; doing this regularly can add another 6 per cent to your gas bill. You will note that none of this advice means you have to drive your car less. But it makes sense not to drive when you don't have to. By observing the above few simple rules, 12 regular commuters between Tor- onto and Barrie saved an average of 12.9 per cent on fuel. If all Canadian drivers did the same, we would conserve 700 million gallons of gasoline a year. There are other things you can do to improve fuel economy, but they involve trade-offs. Don't use your air -conditioner unless you really need to, nor drive with the windows open -- both add to gas consump- tion. And consider carefully which car to buy. Manual transmission automobiles, and especially those with an overdrive gear, get better mileage than those with automatic trans- missions. However, that's another trade-off of comfort and convenience for econ- omy. You will have to decide on those trade-offs for yourself. But the other, basic rules are simply common sense. Not to observe them is just to waste gasoline in a world .where oil -- a non-renew- able resource -- can only get more expensive. Alan Gunn is with Deloitte Haskins & Sells, - Chartered Accountants, Scarborough. Review farm costs to cut back debt load By Donald J. Shaughnessy, CA Talk to most farmers .these days and you'll find one problem uppermost in their minds -- rising interest rates. Some for- tunate individuals have debts that amount to no more than 5 per cent or so of assets but they are worried too. Interest pay- ments on that level of debt can still eat up 5 to 10 per cent of cash income. . For farmers with heavier debt loads, today's interest Dollar Sense offers general financial advlee by members of The Institute of Chartered Accountants of Ontario. rates can spell real trouble. The danger point is reached about the 20 per cent mark • that is, when debt charges consume 20 per cent of revenue. The individual who reaches that point may not be able to service his debt for very long. If you as a farmer see yourself moving into the danger zone, you should take a hard look at your over-all situation to see what can be done to im- interest-to- Here are prove your income ratio. some ideas: 1. Undertake no capital spending unless the sav- ings or extra earnings are going to be more than enough in the first year to pay the finance costs. 2. Get rid of any assets you don't need in your current operations. Do you have 40 acres sitting idle a couple of miles up the road? Two tractors when one would do? Dump them fast. If you have a larger herd than you need, sell off the surplus and lighten your debt load. 3. Don't operate a side- line business that depends for success on upward trends in the market just because you have surplus capacity. You'd be wrong, for instance, to try aug- menting dairy earnings by raising steers in hopes that beef prices will im- prove. It's always better to lose a little than lose a lot. 4. Keep careful tabs on your operations with a month -by -month cash flow budget. If trouble arises, you can spot it quickly and head it off at the pass. 5. Don't make any decision that anlipates lower inter tes in the next 12 nts. A down- turn just doesn't seem to be in the cards. 6. Consider incorporat- ing. That way you can take advantage of a once-in-a- lifetime Small Business Development Loan. Be- cause lenders don't have to pay tax on these loans they are attractively cheap. Right now the going rate is 1134 to 12 per cent -- and banks just love this kind of business. 7. Finally, speaking of banks, it's a good idea to keep in close touch with all your creditors, especially if you anticipate problems of any kind. Farmers gener- ally see their bankers once a year, but every 90 days is a better bet in these diffi- cult times. More than anything else, lenders dislike uncertainty. is with Ward Shaughnessy Monett., Chartered Chartered Aeeoaatants in IIIA' 1 1 1 1\ 11 1` ' i � FIGHT FOR LIFE.