HomeMy WebLinkAboutThe Goderich Signal-Star, 1980-06-25, Page 4f
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PUBLISHED -BY: SIGNAL -STAR PUBLISHING LIMITED
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SHIRLEY J. KELLER - Editor
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IesspIasticfor Canada
Some Canadians will be heartened to know that
citizens in this great land are not "hooked on
plastic" like the folks who live in the country just
south of the border. But many more Canadians will
be distressed to learn that major credit card firms
are contemplating the sale of credit cards or some
kind of an annual enrolment fee to finance their
business.
The problem seems to be that too few customers
are letting their accounts run into arrears.,They are
paying up on a monthly basis, and the credit card
establishment is not getting the interest money 21
percent on overdue accounts - it expected to tally up
by loaning convenient cash to impetuous spend-
thrifts. In effect, the majority of credit card users
are benefitting from interest-free money for one
month or longer - and the credit card companies are
taking it on the chin.
But that's only the credit card company's side of
the story. There is the side on which the small
businessman resides.
Firms accepting credit cards pay a -percentage of
each transaction to the institution that issues the
card. In Canada, • for example, the bank -backed
Visa and Master Charge promoters charge
businesses two percent to six percent for the ser-
vice.
As always, it is the -smaller firms which pay the
highest percentages. They have the lower -volumes,
and cannot take advantage of the lower service -
rate.
Small Canadian businesses -forced to pay card
promoters $6 on a $100 purchase, are in a bind. They
feel obliged to offer the same convenience as larger
retailers do, even if they have to pay the money out
of their own pockets.
In the United States, where plastic money is like a
fever, many smaller businesses have already
stopped accepting credit cards. And what's more,
bigger retailers and hospitality related businesses,
are joining the trend. High interest rates in the USA
are doing them in.
According to some economists, it is only a matter
of time until Canadi"ans follow suit.
Little rioticed in all of this, is the fact that mer-
chandise prices must be generally higher to
maintain the level of profitability in businesses
where credit cards are accepted - or so the
argument goes. When a customer pays cash, there
is no kickback to the credit card company. But
when. a credit card is presented and accepted, the
business loses from two to six percent on the
transaction.
As one Canadian cash carrier put it, "We're
subsidizing the army of credit card users,"
Maybe Canadian businessmen will take a second
look at the so-called "cashless society", but you can
be sure credit card users won't be happy. This
handy system of doing business is much ap-
preciated by card-carrying customers who find it
much superior to toting bills and coinage
everywhere everyday.
And though it might be cheaper in the long run for
Canadians, there is every reason to believe that
much of the impulse shopping and some of the
"must" shopping would be drastically reduced
without this cashless convenience.
Surely business can come up with some sensible
solutions that will keep consumers cheerfully
spending -and' the economy merrily moving • for-
ward. -SJK
'taxpayers pay pretenders
The report is dated January 1980. It is from the
Ontario Status. of Women Council and is entitled
Work Incentives for Sole -Support Mothers. -
It points out, quite correctly, that Family
Benefits Assistance (FBA) recipients, most of
whom are sole -support mothers, often meet in-
surmountable barriers -,when they attempt to enter
the work force.
The great majority of FBA mothers qualify for
low paying insecure jobs and find that when work-
related expenses such as transportation and child
care are considered, they earn less in the work
force than on family benefits.
The Ministry of Community and Social Services,
says the report, rewards initiative and offers
assistance for a transition period of up to two years.
The program includes a graduated monthly cash
benefit of from $95 to $150 which is intended to help
defray the cost of work-related expenses, medical
and dental care and an increased security provision
for participants to re-establish their claims for full
benefits if they lose or leave their jobs.
The Status -of Women Council is concerned,
however, that the program doeswnot address the
critical issue of •childcare, nor does it include
provisions for job counselling and job training.
Says the council, "We believe that failure to deal
with FBA recipients' needs in these important
areas will mean that few will be able to benefit from
thew rk.+ncentives program-
It's a prickly problem to be sure, There is much
wisdom and compassion among those who concur
with, The •Status of Women Council that a sole
support mother with one pre-school child will, after
babysitting is paid, end up earning less money in
the ministry's incentive program than she will on
family benefits. What's more, without job coun-
selling and training, there's not much hope that she
will ever advance beyond her present tow paying,
dead end job.
Certainly if a person can "get off" the provincial
assistance roles and into the self-support column,
the.investment is well worth it to all taxpayers.
Unfortunately, taxpayers become quickly
disenchanted with swell•:lwtettded government'
assistance,•,progra.ms that are abused by un-
motivated individuals who are milking the system
dry. There is far too much insincerity by too many
moochers. It makes" the cost of assistance to the
genuine applicant astronomical. It causes tax-
payers to grow resentful and bitter.
The Ontario Status of Women Council should give
careful consideration to the fact that for every sole
su,pport mother who would seriously attempt to
upgrade herself and become financially in-
dependent ►n a year or two, there is another who,
for a variety of reasons, would just not ever make
the grade.
The Ontario Status of Women Council has made a
blanket proposal which has mere*- as far as it goes.
But surely, the -Council as all other crusaders' and
law makers must understand that while society
wants to be generous' with all needy assistance
recipients, it insists that the programs be ad -
Ministered to suech-a way that the pretenders are
identified earlier. There must be some assurances
that the total cost of the programs won't be
ridiculously high in relation to the individual
success rate. - SJK
Sparkling shoreline
Parade route
Dear Editor:
In response to a query
from a citizen as to why
all parades held in
Goderich travel onto The
Square from South Street
and off at West Street, .I
told her that this was the
traditional route.
Although-. some parades
have done this in the past
on occasion.
On Sunday, June 29th,
for the . Founder's Day
Parade at 2 p,in., we shall
break tradition. The
parade will • come up
South Street, circle the
entire Squabe once and
reave off West Street.
There will be no
barricading of the two
`blocks between West and_
South Street. We are
hoping for a large crowd
in Goderich that day so
the added couple of
hundred metres will.
enable more people to
view the parade without
crowding themselves.
We start off at 2 p.m.
from the Arena, to
Britannia, to South,
around the Square
completely, down West,
down Waterloo, Britannia
and MacDonald to
disperse at the arena.
" Yours truly
Pat King
Co-ordinator,
Founder's Day Parade
Blood
transfusions
Dear Editor,
C. F. Barrre� states that
doctors. ...._1aye— -changed
position i,n the use of
blood transfusions.
Jehovah's Witnesses
themselves are not
certain what Acts 15:
by Cath Wooden
DEAR EDITOR
means when it states to
obstain from blood as the
following quotations will
prove.
In the Golden Age
:magazine February 1931
p. 291-294 (a J.W.
magazine) they state
"Vaccination is a direct
violation of the
everlasting covenant that
God made with Noah
after the flood (p. 293).
Later Jehovah's
Witnesses changed -their
stand and . said that
vaccinations were per-
missable.
If Jehovah's Witnesses
take their stand on blood
so seriously why do they
eat unbled fish? In my
days as a Jehovah's
Witness before being
converted to Christ I saw
many Jehovah's Wit-
nesses eat wiencers and
other meat products
which are known . to
contain some blood.
Why do Jehovah's
Witnesses buy meat at a
butcher shop for they can
never be certain that it
has been properly bled?
To be absolutely certain,
Jehovah's Witnesses
should slaughter their
own animals.
Why do Jehovah's
Witnesses not abstain
from meat completely, as
that would be the safest
way of abstaining from
blood. No doubt Mr.
Barney has eaten much
blood in his lifetime.
It has been proven that
the* Jehovah's Witnesses
taught against vac-
cinations on the same
grounds thatthey argue
against blood tran-
sfusions.
Today they preach
against blood tran-
sfusions for the same
reasons. Can Jehovah's
Witnesses affort to trust
the Watchtower in this
life and death matter?
Ronald Gardiner
Staffa
Farm market pricey vary
{This is an installment prices.
in a series on farm Basically though,a
financing prepared by potential buyer will want
The Royal Bance of. -to—tailor his bid to the
Canada's agricultural future net income stream
services department). available from the land -
The market prices of
a figure which he thinks
his productivity and
farm land in many parts efficiency can achieve,.
of Canada have increased If, you are a buyer, how
rapidly and substantially do you estimate what
in recent years. And that land is worth to you?
brings up a problem for
the buyer of land: how to With some firm in -
relate the sale price to dications of future
longer run productive product prices. and
values. production levels ` and
As' with stocks, bonds costs, then you can
or any tradeable asset, determine value from a
farm land is worth productivity pointof view
whatever price a willing by using the
buyer . and seller can capitalization approach.
agree upon. The buyer, If you divide the expected
however, will want to interest rate on capital
make an offer that is into the expected net
closely tied to his ex- returns from the land,
pectations of future you will have the
earnings as determined estimated productive
by such factors as value of the land.
product prices, First, estimate gross
production costs, returns as determined by
borrowing charges, expected price and
'predi e-tivity increases, rotrluvf--prodtt-ctron:
marketing opportunities Then, by de'tiu•cting all
and desired labor return. costs of production ex-.
i .lso.to he considered is cept the interest costs on
the impact of general the money invested in the
inflation on future land land, you will have the
expected 1 net returns
figure you need to use in
the capitalization ^for:
mule `outlined above. To
complete the calculation,
you divide this return
figure by the interest rate
you must pay on
borrowed funds. (You
should• use an interest
rate figure, even if you --
are buying the land with
your own cash; because
your • money has an in-
terest-earning power of
its own.)
The final estimate of
value will tell you how
much you can afford to
pay 'or the land and still
realize the required
return on capital after
paying all other ,costs,
including a charge , for
your labour.
As an example: you
may estimate that a
parcel of land will yield
an average annual gross
return of $150 per acre. If
your projected costs,
including a charge for
your tabour, work out to
$114 per acre, then the
expected net return from
the. land. would be found
by subtraeting $114 from
$150 'for a return of $36.
( -
Assume your borrowing
costs are 12 percent; then
your indicated bid price
should be '$300per acre --
arrived at by dividing 12
(the borrowing cost) into
$36 the return figure.
This formula .assumes
a constant annualnet
income.• , Should this
figure change in the
future, due to changesin
productivity. 'and overall
efficiency, then the
formula will have yielded
an incorrect price that
could have been paid for
the land. Another
drawback: the formula
doesn't provide for any
changes in net •.income
due to contributing in-
flation on product prices
and 'costs...
The prospect of in-•
flation in land values may
seem to justify currently
high asking prices for
land, But future in-
creases in land values
will not necessarily help
you meet the annual debt
load during the loan
repayment period,
particularly•if net income
does not grow propor-
tionately with inflation.
DEAR
READERS
t.•
BY SHIRLEY J. KELLER
Canada Column crosses my desk
regularly. Written by John Fisher,
better known in some circles as "Mr.
Canada", it is a service publication of
the Council for Canadian Unity.
For trivia buffs, it is a goldmine of
Canadian information.
Just as an example, there's the story
of Jerome from Nova Scotia. Ever
heard of him?
Seems that in 1854 Arcadian fishermen
found a young man huddled on the
beach. They took him home. He stayed
with them for 64 years and never ut-
tered a.word.
When the fishermen picked him up,
the young man had both his legs am-
putated, apparently shortly before
being found. He was dressed in fine
clothes and had distinguished features.
His hands were soft. It seemed to the
fishermen he had come from a fine
background. The ship that had ap-
parently dumped him, was never open.
People on the French Shore of Nova
Scotia. tried everything to get him to
talk. Occasionally, he would grunt and
it sounded as through he was saying
"Jerome" so he Was called Jerome.
mystery. His tombstone has only one
word• Jerome, and the date•he died.
No one ever knew when or where he
was horn or why he was cast on a beach
with his legs cut off.
It is said that visitors speaking other
languages tried 'to get him to say
something, but he remained silent and
sullen He never read. He just sat and
stared out the window,
And wonders of wonders, it is said he
showed no gratitude whatever to the
families who cared for him over six
decades. •
Then there's the story about
Reginald Fessenden, horn at East
Bolton, Quebec. He is called the father
of ri:dio.
Fessenden's father was a minister,
so as a young man he moved about the
country. He atended school in Fergus
and in Niagara Falls in Ontario, and
graduated from Bishop's College in
I-enn„xville, Quebec. •
(Even then, young Canadians had to
leave the country to be recognized for
their special abilities. He moved to the
United States where he worked with
homes Edison and leading American
"R.A.Fessenden, inventor, pioneer in
radio communication conducted
wireless experiments in 1901-02.”
Note the dates, dear readers. Mar-
coni received the first wireless
message from overseas in Newfoun-
dland December 12, 1901. Marconi used
the Morse Code.
Fessenden was searching for some
way at that time to transmit the human
voice through the air. Oh Christmas
Eve 1906, he made the first radio
broadcast of music and voice. He
played the violin and spoke to ships at
sea. Radio was born. •
In fact, Fessenden had more than 500
inventions patented in his lifetime.
Now that's an important Canadian
figure!.
And speaking about important
Canadian figures, there was Wil-liam
Avery Bishop from Owen Sound,
Canada's most distinguished air ace.
He shot down 72 German planes in
World War 1.
In his most daring raid, Billy Bishop
flew alone at? am into enemy territory
to attack German aircraft sitting on
their own tarmac. Billy was gambling
nvcntors. his life to be sure, but although the
In North Carolina, not far from Germans threw everything they had at
where the Wright 'Brothers pioneered him, he landed his plane in shreds at
When he died, Jerome was still a That's simply in aviation, is a plaque which reads:home hasp. p Y not Canadian.
This was called "the greatest single
show of the war". For it and other
courageous acts, Billy was awarded
the Victoria Cross, the .Distinguished
Service Order and the Military Cross,,
Distinguished Flying -Cross and the
French Legioh of Honour. He was and
still is Canada's most decorated hero.
But did you know that Billy Bishop
will also find a place in Canadian
history as the man who indirectly gave
Canada its Maple Leaf flag?
Yes sir, Billy designed the red Maple
Leaf emblem for the Royal Canadian
Air Force and undoubtedly, it was this
which influenced the, politicians in
Ottawa -to maintain the Maple Leaf as a
symbol for all Canadians.
And you thought it was all govern-
ment bureaucracy and Liberal pop-
pycock!
As far as Dawson City's Robert
Service is concerned, I was dissatisfied
to note that when he finally left the
Yukon, he took up residence in the
south of France and never returned to
Dawson. The log cabin where he lived
and did much of his writing waste"'
preserved as a national historic site,
but Service himself was basking ih the
sunny climes of Europe.