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HomeMy WebLinkAboutThe Huron Expositor, 1963-08-01, Page 2Since 1860, Serving the Community First
SEAFORTH, ONTARIO, every Thursday morning by McLEAN
ANDREW Y. McLEAN, Editor
Member Canadian Weekly Newspapers Association
Ontario Weekly Newspapers Association
Audit Bureau of Circulation
Subscription Rates:
Canada (in advance) $2.50 a Year
Outside Canada (in advance) $4.00 a Year
SINGLR COPIES — 10 CENTS EACH
Authorized as Second Class Mail, Post Office Department,
BROS., Publishers
..""
1.0:64 01 104 Week
Ottawa.
SEAFORTH, ONTARIO, AUGUST 1, 1963
Carnival Deserves Support Of Area Public
There probably is no one facility in
Seaforth that. provides greater enjoy-
ment to a greater number of people
during the summer months than does
the Lions Park and Pool. Not only does
the Park serve Seaforth, ,but its plea-
sures are enjoyed by old and young
throughout a wide area.
This year even greater numbers of
children are enrolled for swimming in-
struction. It is impossible to estimate
the lives that may be saved in years to
come because of this training which is
being made available to district chil-
dren.
All this has become possible because
members of the Seaforth Lions Club,
for nearly forty years have never lost
sight of their long-range plan to pro-
vide the best in park facilities for Sea -
forth. They have never hesitated to de-
vote hour upon hour of their time with
no remuneration, other than the satis-
faction of knowing that something
worthwhile was being created in the
Seaforth community. Throughout the
year the public has co-operated in mak-
ing available necessary funds, and this
teamwork has created a Park arrange-
ment the • equal of any available in
towns of similar size in Ontario.
During recent years increasing costs
of everything that goes into the main-
tenance and operation of Seaforth Lions
Park have made more difficult the task
of the Lions Club.
Each year -the -public has an oppor-
tunity to co-operate with the Lions
Club, and that is on the occasion pf
the annual Summer Carnival. The pro-
ceeds from the carnival determine the
degree of maintenance that is possible
for the Park.
This year the Carnival takes place
on Wednesday, Thursday and Friday
evenings of'next week. Citizens should
require no urging to indicate their ap-
preciation of the park facilities by at-
tending the Carnival. Not only is a
full evening's entertainment guaran-
teed, but those attending will have the
satisfaction of having had a part in
making possible a continuation of the
Lions Park program. They will have
had a part in making it possible for
Seaforth district children to learn to
swim.
A special attraction this year are the
Carnival admission tickets which are -
now on sale and which include the op-
portunity to win a top award of $1,000.
Hydro Plays Important
Seaforth was one of the first munici-
palities to enter into the Ontario Hydro
scheme more than fifty years ago.
There will be particular interest then
in recollections of the St. Marys Jour-
nal -Argus concerning the problems of
bringing Hydro to the rural consumer.
"Just over fifty years ago in June,
1913, ' Ontario Hydro's first rural dis-
tribution line was completed in the Kit-
chener area," the Journal -Argus re-
calls. "It ran between Baden and
Petersburg, then north to "St. Agatha.
Power wa first supplied to three farms
near Pe eerrsbirg and an orphanage at
St. Agatha. One of the original farm
customers, Peter Seyler, who now lives
in Petersburg, recalls the event vivid-
ly. °
"Mr. Seyler, whose farm was' locat-
ed west of Petersburg on Highway 7
,.and 8, says about 100 persons turned
out to see the lights turn on at his farm.
Within a short time other Wilmot Town-
ship farms received power as its popu-
larity grew.
"Sir Adam Beck, Hydro's'first chair-
man, took a personal interest in the
farm hydro development. In 1912, he
launched a campaign to illustrate the
varied uses of electricity on the farm
through a series of on -the -spot demon-
strations. Two mobile units,' which be-
came known 'as the "Hydro Circus",
were built to travel rural roads and vis-
it farms where power could be tapped
Role On
Farm
from low -voltage Hydro transmission
lines. The units included a three -ton
truck, carrying equipmentranging
from a circular saw to a washing ma-
chine with horse-drawn transformer
and motor wagons.
"The `circus', often bogged down on
muddy country roads and had to, be
pulled out by teams of horses. But the
campaign to demonstrate electricity to
the farmer continued with evangelical
fervor. Demonstrations, given at farms
and country fairs, showed that elec-
tricity could be used effectively to light-
en and speed up many laborious tasks
on the farm and vastly improve living
conditions."
While interest in rural electrification
was difficult to arouse in those early
years, by the 20's Ontario farmers had
seen the benefits which Hydro could
bring them.
Following the Second War, demand
increased stili more, until today there
are few farms without electrical ser-
vice.
It would be interesting to imagine
the situation that would exist on On-
tario farms today had Hydro not been
available and had not been made use
of. There may be trouble keeping John-
nie on the farm, but the difficulty is
nothing compared to what would hap-
pen if Johnnie was required to pump
water and do all the other chores Hy-
dro does so reasonably.
TO THE EDITOR
F OF A PRESIDENT REPLIES
Wingham, Ont.,
July 15, 1963.
Dear Editor:
I would like the opportunity
to reply to a letter written by
Ronald MacGregor which ap-
peared in the July 11 issue of
your newspaper. -
He chose to criticize the
Federation of Agriculture gen-
erally in his letter and it would
also appear that he was en-
deavouring to make a strong
effort to have the 'work that
the Federation of Agriculture
is doing, appear to the readers
of your paper, as not being in
the best interests of the farmer.
The Federation of Agricul-
ture welcomes criticism and
advice from anyone, but when
unjust criticism and unfair
statements are made about our
organization, I feel it is my
duty to reply to such a letter.
We thank you, Mr. MacGre-
gor, for your opinion and ad-
vice regarding a grain testing
I station in Huron County. Our
resolution committee consisting
of five well-known Huron Coun-
ty farmers brought in a resolu-
tion requesting a grain testing
station. (I might say that the
resolution has not yet been
dealt: with by the Ontario Vet -
oration of Agriculture and may
bedefe ed.� 1 can e _ ori
t assure 6 )
NM
that the retention ;et '/tgrlcul-
turr'Witt not work fora grails
testing station for Huron un-
less the people want it.
You also make a comment
about the Federation of Agri-
culture supporting the -. hog
marketing plan. The Federation
of Agriculture are very happy
that they' had a small part in
forming the Huron County Hog
Producers Association. Nearly
all Huron County farmers are
hog producers and the hog
producers 'of Huron have en-
dorsed the hog marketing plan
three times during the past
three years.
Why would they not support
it? Ontario Hog Producers re-
ceive a higher price for their
hogs than producers do in any
other part of North America,
and opponents to the plan also
enjoy the higher price,
Your statement that our or-
ganization tries to "arouse sus-
picion and distrust between
farm producers and private en-
terprise" is absurd and ridicu-
lous.
Ydu also seem concerned
about the goal of the Federa-
tion of Agriculture. The Feder-
ation of Agriculture was form-
ed feqr the purpose of improv-
ing tlie•. farmer's position and
increasing, his income and much
has been done through our
faint marketing legislation td
8
L`cbm -lieve fish titin and eV
s , every
fart is being made tocontinue
td' intprovc"t(fe :�farrttery s itiCO O'
through our several depart-
ments at the Toronto office.
Our organization represents
the vast majority of farmers
and we are recognized by both
Dominion and Provincial Gov-
ernments as the voice of the
farm people, and we are fre-
quently commended by the gov-
ernment on our briefs that we
present to them.
Farmers need to be organiz-
ed today more than ever ,before
and I feel that unjust criticism
of our organization — that has
served the interests of the
farmer so well for the past 26
years — is uncalled for and
will accomplish nothing.
It is much easier to criticize
than ..to come forth with new
ideas and answers to our farm
problems.
It appears to me, Mr. Mac-
Gregor, that you are misin-
formed on the work the Fed-
eration of Agriculture is en-
deavouring to do. I would like
to extend an invitation to you
to come to our next monthly
meeting on September 17 and
I can assure you that the
members of the executive will
be glad to bring you up to
date on the work of the Federa-
tion of Agriculture.
Sincerely, ,
ELM>R IRELAND,
Presidetttr il'ttrof P of A,
1tlt 51 .VVlnthttrt
7J. MO(4AP 30i
No z1I
fI1
•
"He's been using my lemon for three days and won't
give me my royality!"
What a difference a genera-
tibn or so has wrought in the
once -joyous art of summer cot-
taging! About 30 years ago, it
was a gypsy sort of existence,
based on the idea that people
should enjoy life. Today it is
a combination of status seek-
ing, nerve wrecking and organ;
ized horror. like most of the
other facets of ,society in the
Sixties.
In those days, the cottage was
a cottage, not a palatial "sum-
mer home". Today,. the same
structure would be called a
shack, and they'd run you right
out of the sub -division (which
could be the best thing that
ever happened to you).
Can you imagine one of these
young married couples, the
kind who grin and wink fever-
ishly on the beer commercials,
going, with their children, to
a place away off nowhere, with
coal -oil lamps and ar'two-holer
out back and no supermarket
within 50 miles.
Can you imagine Mummy, go-
ing all summer without even
one single car? Can you im-
agine Dad with just one lousy
little rowboat? Can you im-
agine children who could pos-
sibly exist without water skis
and transistor radios? It's pret-
ty appalling, isn't it?
And, yet, summer cottaging
was, within memory, a simple,
almost pioneer existence, with
its own very special pleasures,
its deep delights, its subtle
joys. It was a wonderful, gol-
den two months each year in
the lives of many youngsters,
a time they still remember with
savage§ regret • for what they
have become. •
For one thing,' Father did not
have to thunder up a highway
with thousands of other zaniacs,
each and every one intent on
getting there in the shortest
possible time and taking nothin
off a nobody in the process.
Father was a summer bachelor,
and he loved every minute of
it.
When school ended, he load-
ed down the old car to the
groaning point, piled the kids
in the hack, took thewhole fam-
ily to the cottage, dumped them,
and went sensibly -back to town,
where all the other sensible
fathers spent the summer.
He got a rest from his wife
and children, and spent the
evening's quietly and .happily
at the bowling green, or pot-
tering among the raspberry
bushes, or running around with
the local grass widow.
And what was Mother doing?
Don't worry. She was kept
busy, and therefore happy, tak-
ing slivers out of feet, keeping
bowels open, taking ;the kids
swimming twice a day, and fill-
ing their greedy little guts with
unpasteurized milk, ungraded
eggs and uninspected meat.
Nowadays my heart aches for
cottage parents. The day they
arrive, Dad charges around like
a bull moose, hooking up the
pressure system, blowing fuses
in the hydro system, trying to
get his dirty great boat in the
Water, and running in all di-
rections lugging vast cans of
gas, brutally heavy outboards,
and balk -breaking cases or beer.
SUGAR
and
SPICE
By Bill Smiley
tle of olives and some mixer
for the gin. When he gets back,
he learns that he is to take
the kids for a swim, set up the
barbecuefor the party they're
giving that night, and go back
to the village for some cigar-
ettes for Mum.
What are the kids doing, on
that glorious first day at the
cottage? They're sitting around
whining because there's no TV
and "Nothing to do". And what
is •Mummy doing? She has
switched on her electric stove,
flopped some frozen dinners in
the oven, and is sitting with a
drink, looking at the lake with
bored, disdain. No slivers to
take out, no vegetables to pre-
pare, no drinking water to
fetch. She's unhappy.
Sunday night, or Monday
morning if he's a real nut, Dad
hits the highway again and ar-
rives back on the job creased,
cross and sorry for himself. But
the horrible part of it is, that
he has' to be at the cottage
every weekend, plus his threes
weeks -with -pay in August.
At least twice a week, back
in town, he gets a phone call
from Mum, and he'd better be
home tp take it, not out"roar-
ing around and having yourself
a big time." Her call reveals
that she is bored, that the kids
are giving her a bad time, that
the septic tank isn't working,
and that some people are go-
ing to "drop over" on Saturday
night and be sure to bring lotsa
likken
Sure, they have many things
the old-time cottagers didn't
have — lights, water, indoor
plumbing. But today's cottager,
in his frantic search for ease
and convenience, has created a
Frankenstein monster. He's a
slave to all that machinery, and
a captive of all that social life,
and he hakes his wife, who.'d be
much happier' taking out slivers
with a needle than wondering
if it is too early to have her
first gin and tonic.
A SMILE OR TWO
"I had to change my seat sev-
eral times at the movie."
"Gracious, did a man get
fresh?"
"Well, finally!"
A woman walked into a mil-
linery shop and pointed out a
hat in the window;
"That red one with the feath-
ers and berries," she said.'
"wAuld you please take it otit
of the window for me?"
"Certainly, madam," the clerk
replied. "We'd be glad to."
"Thank you very much," said
the, woman moving toward the
exit. "The horrible thing both-
ers me every time I pass."
'JEST A SECOND'
When everything is operating, „ whyk-we dress for
he,;. las to , -das)t off to the vil-
r,
V r At
ti h
e� �
lage'kb get: sgtme ;in�ispensables, , � � . , 04�
uchl as 9. bo>t of tigstles, a bot4, do !f it tjR ,, Pent iii! „ r
IN THE YEARS AGONE
July 22, 1938
Members of the Seaforth
Troop of Boy Scouts left Thurs-
day 'for Point Farm, north .of
Goderich, where they will
spend a week in camp. Th -
party, which numbers 20, is
in charge of Scoutmaster P. B.
Moffat.
Walton and Seaforth played
to a 'scoreless tie here Tuesday
evening in the first of the two -
game series to decide third
place in the southern section of
the Huron Football League. The
game was a typical playoff
game and each side put every
effort into their struggle to
gain the upper edge. Through-
out the whole game it was about
as even as the score would in-
dicate.
Climaxing 100 years residence
of the family in Tuckersmith
Township, Crichs from New
York to New Liskeard return-
ed home Wednesday and attend-
ed a centennial picnic in Bay-
field.
July 29, 1938
Walter O'Brien, Staffa, nar-
rowly escaped death Saturday
morning when the gasoline en-
gine in the chopping mill, own-
ed by his father, Frank O'Brien,
suddenly burst into flames. On-
ly the fact that he was on the
side of the engine nearest the
door permitted him to escape
with severe burns on his hands.
McKillop Township voters'
lists show the township to have
1,030 voters in part one, an in-
crease r of 70 over 1937. Part
two has decreased one, to 135;
while part three has increased
to 83. There"are328 jurors
available in the township.
The most popular groom -to -
be, in 'the opinion of Town
Clerk D. H. Wilson, who issues
marriages licenses hereabouts,
is the man who a few days ago
purchased his license from Mr.
Wilson and then a few minutes
later returned and handed him
10 cigars. Mr. Wilson is at a
loss to know what prompted the
kind deed, for, as he says, the
license was but the ordinary
garden variety, and he didn't
throw in any advice or warning
to the prospective husband.
July 25, 1913
v A good deal .of fall wheat in
this district has been cut. It
is a splendid crop both as to
quality and yield. A good crop
of oats is now also assured. In
fact, all the crops are good
with the exception of hay, and
that will be a full half crop.
Mr. Lucas Shade of town, who
is 73 years of age, has never
yet required to use spectacles
and he still can read ordinary
newspaper print without the
aid of glasses. This is an
achievement which few citizens
can boast of.
Principal Naylor and his as-
sistants in Seaforth Public
School are to be congratulated
on the highly creditable show-
ing their pupils made in ,the
recent Entrance examination,
the whole class of 22 who wrote
having passed, and many of
them with honors.
Mr. 'John McKenzie is having
the front of the Princess The-
atre improved in appearance
and made more easy of ingress
and egress in case of a crowd-
ed house. Mr. McKenzie has
made a success of the moving
picture business here. He al-
ways puts on a good clean show
and merits and receives the lib-
eral. patronage of the public.
August 1, 1913
One day recently a lady drop-
ped a sum of money in the
store of Mr. A. G. Ault. A few
days later another lady custom-
er from the country, having
seen the advertisement of the
lost money, returned it to Mr.
Ault, and it was given to the
pleased owner.
The fall wheat harvest is gen-
eral this week. The crop is a
good one and the sample of
the grain is the brightest and
best in many years.
Among the successful stu-
dents of Seaforth Collegiate we
notice that James Gillespie
passed the examination .of Part
I entrance to Faculty with hon-
ors.
At a meeting of the Colleg-
iate Institute Board held Tues-
day evening, Miss M. E. Car-
man of Iroquois was engaged as,
teacher of Modern Languages
and History. Miss Carman's
salary is $1,000.
July 27, 1888
The outward earnings of the
Seaforth office of the Canadian
Express Company shows an' in-
crease of $868.37 for the five
months ending With June over
the corresponding five months
of last year. This shows what
can be done by an efficient, ac-
tive and obliging agent.
Two women, driving from
Strathroy to London on Satur-
day, quarrelled, and one of
them, a Mrs. Shrimpton, beat
the other, a Mrs. Roy, ,about
the head and] shoulders With
the butt end of a whip in a
cruel manner. Mr. Peters, J.P.,
imposed a fine of $2.00.
11r. David Hay, the bearer of
His Majesty's mails between
Bayfield and Seaforth, has had
his carriage newly painted, and
it now looks so stylish that
every person will be wanting
to ride in it.
Most of the fall wheat arld
a greatmdeaI of the barley in
this section has been cut, and
the oats and peas are coming
on rapidly,
A good litany' waited tip On
Sunday night
ltst
to' ebb
t.
eeitrde;of the noon. Those *Ito
tvtt:0b d it say 4t 'tan. lt. bight
worth seeing.
August 3, 1888
The first new wheat of this
season's growth was brought to
the mill of Messrs. Ogilvie' in
this town on Thursday, August
2. It was grown by Mr. Peter
Cameron of Stanley. The sam-
ple is first class. Mr. Cameron
says his crop will give an aver-
age yield of at least 20 bushels
per acre.
Mr. C. E. Mason of Brucefield
has sold the best of the two-
year-old stallions he recently
imported from Scotland to an
American for the sum of $2,500.
This is one of the best sales
Interesting items gleaned from
The Expositor of 25, 50
and 75 years ago.
that has been made in this sec-
tion
eation for a long time.
Mr. M. Robertson, Seafurth's
popular undertaker, has recent-
ly got home a handsome new
hearse, which is a credit to
himself and the town.
Mr. John Mulholland, for sev-
eral years a salesman in the
grocery store of Messrs. Wilson
& Young in this town, was pay-
ing his'friends here a visit this
week. Mr. Mulholland is now a
minister of the Methodist
Church. For the past two years
he has had charge of a congre-
gation in a Dakota town, where
he will remain still another
year.
A MACDUFF OVAWA REPORT
TWO SIDES OF THE COYNE
OTTAWA—To many, if ever
there was a modern-day Cana-
dian prophet he is James Coyne,
Governor of the Bank of Can-
ada, until the unceremonious
efforts. of the former Conserva-
tive Government to dismiss him
in 1961. Like many another
would-be prophet, he is still
without honor among his coun-
trymen and many say for good
reason.
It was in late 1959 that Mr.
Coyne began mounting public
platforms across the country to
warn that Canada was living
well beyond its means, the
proof of which he claimed was
its large and chronic deficit
balance of trade in goods and
services with other nations—al-
though it is often overlooked
that it was Coyne's tight mon-
ey policy around the same time
which as a practical matter
drove many Canadian Provinc-
es and municipalities to the
American capital market to
borrow needed funds, and so
helped delay for three crucial
years the necessary downward
valuation of the Canadian dol-
lar.
Many feel that had his .mon-
ey policy been more appropri-
ate to Canadian conditions at
that time, our recent economic
history would have been much
different and happier. They say
a lower Canadian dollar value
would have meant a real im-
provement in the Canadian bal-
ance of payments by producing
greater exports and fewer im-
ports. This in turn would have
meant higher Canadian produc-
tion, lower unemployment and
lower Federal deficits.
The complaint of those who
do not honor Coyne as a pro-
phet is 'that they feel that the
,big balance of payments defi-
cits which worried him were
less the result of Canada' lut-
ing beyond its means than the
result of 'his wrong money pol-
icy which kept Canada from
making full use of its economic
means, i.e., the travesty of huge
imports and insufficient exports
produced by a high premium
on the Canadian dollar, while
Canadian manpower and physi-
cal resources were substantial-
ly under -employed.
The Conservative Govern-
ment that then held power at
.first rejected the warning out
of hand while denying responsi-
bility for Coyne's money poli-
cies but within a year was im-
pelled by the force of events to
take the first tentative steps to
dealwith a situation that was
increasingly grave.
In the year the.Central Bank-
er first sounded the alarm, Can-
ada's deficit balance of inter-
national payments climbed to a
record $1.5 billion. In the in-
tervening years the deficit has
slowly dropped, back, until in
1962 it had dropped to. $8.I8,-
000,000, and this year it should
drop even further, perhaps to
the level of $700,000,000.
But even at these reduced
levels the deficit still is rais-
ing serious problems for Can-
ada, as Mr. Coyne warned would
be the consequences of a fail-
ure to remedy the situation as
a matter of urgency.
The truth of Mr. Coyne's
words were first brought home
vigorously in mid -1962, when
a cumulative decline in confi-
dence in the management of
Canada's affairs led to a flight
of capital from Canada, in sharp
contrast to the heavy inflow
that has occurred in previous
years to help meet the trade
deficit. The inevitable outcome
was a heavy drain of the Gov-
ernment's reserves of gold' and
United States dollars, which led
in turn ,to the imposition of an
austerity program.
A healthy restoration of for-
eign exchange reserves and a
'continued reduction in the bal-
ance of payments deficit made
it appear that Canada was out
of the woods and well on the,
way to a solution of this criti-
cal problem. • It only took a
message to Congress by Presi-
dent 'John F. Kennedy on July
18 to demonstrate how vulner-
able Canada continues to be to
external forces, although it can
also be noted that !Kennedy's
unprecedented action demon-
strates . U.S. vulnerability to
external 'forces as well.
Mr. Kennedy asked Congress
for authority to impose a tax
ranging from 2.75 to 15 per
cent on purchases of the securi-
ties of 22 nations, Canada in -
eluded, by United States inter-
ests. The purpose of the move
•teaS to resolve the United
Sfa'tes' own serious defleit bal-
ance ofens
a
p: yth s. Estimated as
likely to Colne to aroitrt4 $3
billion
on ..
this
"
year
s
b
stni t
ii' anl
Acreage tight, the
dfc1taC�est to
the decline that had been hop-
ed for, it is the result of U.S.
loans and grants abroad exceed-
ing the Country's substantial
current account surplus from
trade in goods and services. The
problem, in other words, is
the very opposite of that fac-
ing Canada, but a problem none
the less because it results in a
serious loss of gold and dol-
lars.
The President's move, almost
totally unexpected in Ottawa,
came as a ghastly shock to the
Liberal Government, which was
still reeling under ' the attack
against ill • conceived budget
measures inappropriately aim-
ed at discouraging the inflow of
foreign capital.
The truth of the matter is
that each year Canada requires
to obtain a substantial volume
of capital abroad, much of it
from the United States, to cov-
er its trade deficit. Finance
Minister Walter Gordon put it
this way in his budget speech:
"We shall continue to need .sub-
>stantial net inflows of foreign
capital for quite a few years
to come if we are to avoid fur.
ther exchange rate difficulties
and if a reasonable increase in
our standard of living is to be
achieved. This is a fact of life
in Canada. It would be the
height of folly to ignore it "
The President proposed to
exempt U.S, capital flowing in='
to Canada for direct investment,'
that which has the greatest ef-
fect in extending U.S. owner-
ship and control of Canadian in-
dustry. Last year Canada ob-
tained $525,000,000, the bulk of
it from the United States.
Drastically affected by the
tax would be the sale of new
issues of securities south of the
border, which according to Can-
adian figures amounted to $674,-
000,000 in 1962. Also taxed
would be U.S. purchases of out-
standing Canadian securities,
which amounted to $1.14 bil-
lion in 1962. In all a total of
$1.8 billion worth of securities
were in jeopardy on the basis
of last year's figures.
The implications of a tax of
up to 15 per cent on security
sales in both these categories
were far-reaching and impos-
sible to measure accurately. A
sharp increase in all interest
rates would seem to be an im-
mediate result, but . even this
might not prove sufficient to
attract the capital Canada needs
to finance its trade deficit. A
new foreign exchange crisis
was in the realm of poss.ibil;
ity.
A high-level Canadian team
headed by Bank of Canada Gov:
ernor Louis Rasminsky was ur-
gently dispatched to Washing-
ton over the weekend, where it
argued that the United States
was cutting off its nose to spite
its face. Canada was not drain-
ing gold from U.S. reserves, it
contended, but borrowing capi-
tal only to pay for the goods
which it was buying from the
United States1 Furthermore,
Canada had contributed a net
of $5 billion to U.S. reserves
over the last decade.
The outcome was. an agree-
ment by the Administration to
provide an exemption from the
tax for new issues of Canadian
securities, which is of particu-
lar importance because it is
such a huge source of net capi-
tal inflows.
That leaves the tax remain-
ing . on trade in outstanding
Canadian securities. In 1962
this produced only a net capi-
tal inflow of . $71,000,000 from
the United States because Can-
adian re -purchases of their own
securities came within ' that
amount of matching ''sales to
thp United States.
It is just possible that the tax
which' President Kennedy still
proposes to impose on ,this trade
could result in a major reduc-
tion in U.S. purchases of out-
standing securities which was
not matched by a reduction in
Canadian purchases from' the
United. -States. The' net - result
would be a ,drain of capital
south. . -
,;Canadidn , authorities h o 1 d
some hope that this remaining
levy can also be removed be-
cause it does not contribute to
the, ALS. balance of payments
deficit. Even if they are suc-
cessful, the threatened action
by a country ie w
in the world t wardththCanadabest folill-
lowed by its qutc k -track-
ing once again underacacni' s the
modern economic inter -depend-
ence of Canada and the United
States.
It also raises for the second
mjust over a year the- :.
ltiong-termein Canadian balance of
payment prospects and the re -
Wed' question, of Caitad '$ c
nuon•
t i
,t,ndepetitiettfie q#l'idrelg�, •
fapita , ,