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The Wingham Advance-Times, 1939-03-09, Page 24 PAGE TWO WINGHAM ADVANCE-TIMES RTF* Wingham Advance-Times Published at WINGHAM - ONTARIO Subscription Kate — One Year $2.00 Six months, $1.00 in advance To. U. S. A., $2,50 per year. Foreign rate, $3.00 per year. Advertising rates on application. WHITHER BOUND .An. Answer to the Coupons of Mr .George McCullagh of The Globe and Mail. By R, J, Deachman, M.P. Mr. George McCullagh of the Tor­ onto Globe and Mail has closed his radio addresses — finished his argu­ ments and. sent out his printed coup­ ons asking members of parliament to froget party advantage and co-oper­ ate for the common good. Personally'! am glad that he made these addresses, It is no easy task to make, five speeches — one a week, for five weeks! Grinding out a connect­ ed story, thirty minutes long, is a tough job — I know, I have done it myself. .Even if his speeches had been worthless he would have deserved a knighthood for the effort — and, in my humble' judgment, they were worth the price. Debt and Facts Let us now put down a few facts if for no other reason than merely to find an anchor to reality. It would be .scant honor to Mr. McCullagh if we .attempted to discuss these issues with­ out knowing the background. Our na­ tional debt in 1914 amounted to $335,- .9^6,000. It was mainly the result of .railway expenditures. In' that year we went to war. Here is the story of war costs to date. fORD ^HOTELS ------- iz." pOMMr FiKTOOOf ►hotels Chocs J PATES ROC HESTER-BUFFALO-ERIE couldn’t the debt. What are we to do with jthese debts? The total charge on debts to­ day including interest, cost of man- Total debt March 31, 1938 ...$ 3,101,000,000 . *'This causes”. item is It represents expanded ser­ vices —• tilings the nation wanted but afford. They were added to LOCATED »U*Y Bouas Direct War Expenditure .........$ 1,698,619,000 , Pensions. .............. Soldiers’ Civil Re-establishment ... War Graves ......... Soldiers’ Settlement (Administration) ... Interest ............... Estimated Loss Soldiers’ Settlement ........... 770)563,000 258,750,000 4,811,000 100,000,000 Total Costs of War to end of 1938 ...„..$ 5,014,263,000 We now have these two items—-Let us state them in round figures and put them together. Pre-War Debts ...$ 336,000,000 Cost of War ....... 5,000,000,000 Total ....................$ 5,336,000,000 Taxes and War We did, however, collect a consid­ erable amount under the War Tax Revenue Act. These taxes were ap­ plied to banks and trust .companies. They covered also excess profits, in­ comes and sales and stamp taxes. From 1915 to 1938 the total amount collected by this means was $3,268,- 000,000. Deduct this amount from the $5,000,000,000 of war costs and we have in our debt of today $1,732,000,-' 000 due to the war. ' There is another item in our debt pile -7 it amounts to $924,000,000. Where does it come from? It re­ presents the cost of the depression. Revenues fell off — costs went uj5. Money was spent on relief, railway deficits and other things. It had to be borrowed — it was added to the debt. Let us now sum up in one brief table the whole stopy of our debt in­ cluding one item still to explain which amounts to $109,000,000. • Cause 336,000,000 1,732,000,000 Debt and Its Old pre-war debt $ Debt due to war ... Debt due to depression ........... *Debt due to “other causes” ..... 924,000,000< marked as /'other t Jr w tct. % Please send me your free Booklet, “100 Tempt- jng Fish Recipes’ - ................................... ............. 424 (Please print letters plainly) fitparttirteint df iFisherics, Ottawa. *> H It’s ONLY ONE of the almost endless var­ iety of tempting, inexpensive recipes that are so easily prepared from Canadian Fish».. foods not only enjoyable, but packed ■with rich, nourishing goodness... with a. liberal supply of precious minerals, proteins- :and vitamins that give the quick food-energy required to keep the menfolks feeling fit and . strong for their work. > Over 60 kinds of Canadian Fish and Shell* fish are available to you all year ’round, Whether fresh, frozen, smoked, dried, can­ ned or pickled They provide a meal that’s really '’scrumptious” in any man’s language. Serve Canadian Fish and Shellfish several times a Week. DEPARTMENT OF FISHERIES, OTTAWA* FOR FREE BOOK of gov- intgrest told us Even as you read this, some Father somewhere is rushing this news to relatives, No matter where they are or what time it is—his first impulse is to let them know! agement, discount'and exchange am­ ounts to approximately, $137,000,000, Total expenses of government in pre­ war days (1914) was $186,000,000. Are yon surprised that costs ernment have gone im when charges take so much money Mr. McCullagh has not what we should do to cut down these debts -— neither has any other public man. I intend to discuss it at the close of this article. But I would like your opinion — the opinion of the man or woman now reading this ar* ticle, What should bp done to reduce the debts of the Dominion of Canada? CHAPTER 2 Costs and; Economy In the light of all the facts is there wild extravagance at Ottawa? The mpre existence of the debt does not- constitute proof. No one defends ex­ travagance. But there are many who attack expenditures without consider­ ing the cause. We reason only from intelligent comprehension of what has happened, We must examine facts — exlama- tion marks will not get us very far— hasty conclusions are dangerous. If we compare the’ figures of govern­ ment expenditures for 1914, the last pre-war, with 1938 they appear, as­ tounding.Here they are: Total Federal * Govt. Expenditure $186,000,000 $334,000,000 Year 1914 1938 Why so vast an increase in twenty- four years? The previous chapter giv­ es some idea. Here are the details of increase and new items of expense added since 1914. I. Interest and Management on Public Debt ..................$123,293,000 Pensions, Military ... 42,000,000 Treatment and After­ care of Returned Soldiers ............ I...'..... 4. Unemployment Relief including drought relief ............................. 5. P.O. Expense (offset by revenue increases) ... 6. Old Age Pensions ... Maritime Freight Rates .............................. Air Services ............. Militia and Defence ... 10. Government Annuit­ ies to maintain reserves II. R. C. |M. P................. 12. Special Grants -to Provinces ............ -... 13. Subsidies to Provinces .................. 2. 3. 7. 8. 9. 12,152,000 68,532,000 8,941,000 5,400,000 What items of this list would McCullagh eliminate? Until is more- definite information we no idea of his intentions. But Total of Increase and New Items since 1914 ......$345,944,000 Losses on Canadian National Rail­ ways not included in this list because the total expenditures on railways in 1914 were almost as great as in 1938. , ’Can these items be cut down? The interest on the debt must be met — our obligations to returned soldiers must be faced. Relief under present conditions is essential. .People cannot be allowed to starve. We are now face to face with the practical prob­ lem. Mr. there have the»qucry is not addressed to Mr. Mc­ Cullagh alone—let the business man speak—what has he to offer? < It has been suggested that provinc­ ial governments should be eliminated. It could not be done. It would save little if its were done. Historically they are a part of our system — it would take a revolution to move them. In practice it is impossible. It is so remote from the possible that it is hardly worthy of serious com­ ment. But suppose in some way we could, cut expenditures by $100,000,000 — something which could not be done by any government —- would it solve the problem of today? It would not. Such suggestions arc merely pills for Vesuvius —? they skim around the sur­ face of the problem. They do not ap­ proach even remotely the fundamental facts of the situation. What.Do We Need? The two things primarily needed in the Dominion.of Canada today are, ail* increase in the national income and a more equitable distribution of total ’ In pie <i 1933 $3,000,000,000. Last year, 1938, it was roughly $3,900,000,000. What wc need in the Dominion of Canada is the restoration of the na­ tional income to, qt least, the .1926 level. Under a sound economy, the application of which would' be oppos­ ed by two-thirds of trar businessmen, this would be possible. We^cannot do It by cutting expenses of the Federal government $100,000,000, If that can be done let’s do it — tell us how! What we need is an increase in the national income to $1,500,000,000 above the level of 1933, or an amount, above the 1988 level, equal to the en­ tire expenses of the Federal govern­ ment, I am not condemning economy of wealth produced, 1926 the total income of the j: f Canada was $4,330,000,000, it was less the .co­ in approximately And that is also true of Aunts (and Uncles) and all the in- laws. Before Baby is half an hour old his arrival is cele­ brated far and wide—and he is endowed with ... In every pound and half pound package of Lipton’s Tea there are valuable coupons. Save these carefully, they are exchangeable for beauti­ ful Wm. Rogers and Son Silverplate. Write - now for premium book­ let to Thos. J. Lipton Limited, Lipton Build­ ing, Toronto. FREE! Globe and Mail has dealt with it in recent years. I am not suggesting sook-the-rich policies which are far too often veiled attacks on the pock­ et-books of the poor, The income tax story, reveals the power of privilege, The figrues are a challenge to democ­ racy — a barrier to business progress. We cannot have a true democracy un­ less, at least, the opportunity to ac­ quire a competence is open to oil. • CHAPTER 3 THE REAL REMEDY Then beyond that there is the*great problem of go ordering our economy that we may no longer be faced with the problem of unemployment and all its concomitant destruction of life and hope, Is that possible? * The answer is “yes,“it can be dope. It cannot be done by governments — they may help but they cannot do it alone, It is a problern pf industry but industry tries to run the govern­ ment instead of facing its own tasks. Progress in the solution of unem­ ployment will come when industrial leaders who control the great- indus­ tries of the nation recognize' that on­ ly by a thorough reorganization of their own businesses confidence be restored, labour must aid capital er will continue, as he walk the streets in idleness, Industry has triumphed in the fields of production. We have the capacity to produce. Industry apd labour have succeeded in blocking the channels of exchange so that the purchasing pow­ er of the producer is restricted—the basis of industrial expansion is lost, i Man, with his machines has trium­ phed only to find that, by reason of his own selfishness, victory is, ashes in his hands. All the technical and mechanical advance of the ages have reduced the cost of production, low­ ered the selling price of goods, in­ creased the purchasing power of^the people. . . , Why is more machinery employed in factories? Because the application of improved machinery, though it throws men out of work, lowers the cost of production. But the manufac­ turer does not lower the selling price of his products. If he did there would be no decrease of employment. Some­ times he cannot. Labour in control may take for itself the full saving brought about by mechanical change, thus throwing, into the discard, work­ ers who have lost their jobs. In plain straight language, the problem of un­ employment is up to industry and la­ bour. They have created it — they alone can cure it.’ It is, and I say it quite frankly, beyond the power of government,. Oh, for a combination of the wealth of a McCullagh and a Wright and the pentrating power of mind necessary to drive home these ■ facts. Manufactured produced today are wholly out of line with the prices, of basic products. This condition is driv­ ing people off the land — it is forc­ ing farmers on relief. If reductions in costs, which are the natural fruit of improved methods, had been pass­ ed on to the consumer in a lower sell­ ing price of products instead of in higher wages and increased profits, there would be no unemployment, nb problem of government finance, no swelling tide of debt. Great leaders in some fields of in­ dustry have realized these facts. Some of them today are attempting, to their eternal honour, to carry it out. They arc the real leaders seek­ ing new and ever expanding frontiers of effort. There are others who con­ centrate their lives on attacks upon governments, failing to realize that they are- themselves responsible for the situation they condemn. The rem­ edy lies with .industry and labour. The men who have created the prob­ lem. are best able to provide the cure. If only the. leaders of industry and labour could realize these facts we might indeed achieve what we desire, we would not be on the road to re­ covery, recovery would be an accom­ plished fact. Will industry speak? Will it act? Has it the driving pow­ er? If so, the nation marches forward —nothing can stop—nothing except war. can national In this task or the work­ does now, to Yes, and so do thousands of other tea lovers throughout five continents. For Lipton’s small leaf tea has the exhilarating quality of never becoming insipid even though you brew it weak. Its rich, full-bodied flavour gives satisfaction with every cup. Enjoy the superb quality of the tea that has won the preference of the world. Buy Lipton’s today. Three dis­ tinctive grades: Red label, Orange label and Yellow label (Lipton’s Finest). LIPTON'S, the world’s largest selling tea, is blended especially for Canadian tastes. 392A a dozen names. It’s a Boy! To Grandparents another chapter of Family History begins. Their grandparents may ‘have waited for days before they had good news, like this, but that was before the telephone—and Long Distance—became part of our everyday existence. & Spread Good News by LONG DISTANCE! Look in your telephone direc­ tory and you’ll find., that by using Low Night Rates (also applying all day Sunday) and placing “Anyone” calls you can talk to nearby towns or Prov­ inces for much less than you expected. administratioon. Gladstoniah tradition has a firm hold upon me, but I do say that cheese paring is not enough. The great problem is to in­ crease the national, inco’mp. That car­ ries with it increase of purchasing power, elimination of unemployment and relief — the restoration of our railways to solvency and buoyancy in the national revenue. It means too, the return of conditions which will change the static' credit situation and start money moving into the channels of business, It settles the whole range of problems which darken the econ­ omic horizon —( all, save One — war — and only God can tell what will happen there. Poverty and Progress But coupled with this there is the problem of a more equitable distri­ bution of the wealth of lite nation, Only'21*?,000 people out of Canada’s 11,000,000 paid income tax in 1937, Only 921 farmers had income which brought them into the income tax class. One thousand, two hund­ red and fifty-nine people paid more than half of the entire personal in­ come tax, This mal-distribution of wealth, far more than the expenses of the Feder­ al government, constitutes a great task for the people of Canada, whe­ ther they be Grit, lory, C.C,F. or members of Mr, McCulIagh's Leader­ ship League. I wish I could appeal to George McCullagh upon this ques­ tion, Neither Mr, McCullagh nor the LETTERS TO THE EDITOR LEADERSHIP LEAGUE To the Editor Wingham Advance-Times. Sir: ' I have just finished reading an or- ticlc in your issue of 2nd fast over the name James G. Webster, in which he sets forth that with all his appar­ ent knowledge of things in general and his power of smell, he cannot get to the bottom of the meaning of the Leadership League. No, Sir, He can* hot just seem to even get a good laugh out of the thing. Well, being a member of the League, I will try in a simple way, to give him a little enlightenment. The League, when the next Federal election comes around, will have a Lis.ten to the “Lipton Melody Hour” Musical every Sunday after­ noon, 4.30’ to 5.00 p.m., over Radio Station CBL, Toronto. candidate ain every riding, a man of their own choqsig, not an import, and chosen by the .Tory machine or Grit machine, a man, honest of purpose and sound business principles, and who will use his energies for the good of the people of Canada, not the par­ ty and the Leadership League will see to it that these candidates get ov­ er the top.' It does seem a pity that Mr. Mc­ Cullagh didn’t talk on some topic that would have been of more interest to J.G.W. 'such as how necessary it is that Canada scrap, the Union Jack, and have a brand new flag that will end Unemployment, or,\ .how import­ ant it is that the government spare neither time nor energy in working out ways and means for the burial of another $12,000,000 in that hole in Montreal. J. G. Webster’s drivel will not, I i —Mary Baker Eddy. am Sure, have the least effect on Mr. "■McCullagh. He just gave expression to what was in the minds of thousands of people in Canada, quid there are peo­ ple of both the political parties that I know personally who don’t take him for a windbag or blowhard. / T wonder that anyone with a sniffer like J.G.W. don’t get a whiff of some­ thing fishy when he thinks of the sweeping promises made at the last elections, and the results to date. However, if Mr, Webster can man­ age a little patience, I feel certain he will get to know what the Leadership League stands for. Robt. Thompson, Blyth, R. R. 3. ( “Enjoying good things is not. evil, but becoming slaves to pleasure is.” HOW MANY DIED MAY NEVER BB KNOWN this woman ‘ttmlTy iniposslble to identify, have 25 been recovered from the ruins of th6 the $800,000 fire. Danger of falling walls vir- halted search for other victims, . Flames behind he waits rescue by Halifax firemen, others at least were trapped in Queen Hotel, Six charred bodies,