The Brussels Post, 1939-3-1, Page 6'l�11 BRUSSELS POST
'WEDNESDAY, I13M OR 1st; 1939
Whither Bound
Wn *newer to the coupons
of Mr, George McCullagh
of The Globe and Mali
By R, J. DeschMMan, M.P.
Mr, George etecOultegh of the
Toronto Globe and Mail has olosed
radio teddeesses-�iiuts'1?ea his
arguments and Seat oat his printed
coupons asking wembens of parlia-
ment to forget pasty advantage and
eoope ate for the common good.
Personalty I am glad that he
made these addresses, It is no
easy task to make five sceeehes—
one a week, far five weeks! Grind-
ing out a connected 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 knight-
hood for the effort --and, to 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. Mc-
'Cullagh if we attempted to discuss
these issues without knowing the
background. Our national debt in
1914 amounted to $8.31.995,000. It
was mainly the result of railway
expenditures.
In that year we went to war.
Here is the story of waf costs to
date.
Direct War
Expenditure
Pensions
Soldier's Civil
Be-establiehmenl
War Graves
Soldiers'
Settlement
(administration)
Interest
Estimated Loss
Soldiers'
Settlement
Total Costa 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
•Cont of War 5,000,000,000
$1,698,619,000
770,563,000
25%750,000
4,811,000
23.,055,000
2,153,4655,000
100,000,000
Total $5,336,000,000
Taxes and War
Debt due to
e'Other Rau&es"
Total debt MarCh 31,
1938 $3,101,000,000
This item, is marked as "other
oarless," It represents expanded
5ervdces-things the )ration Wanted
but couldn't afford, They were
added to Che debt.
What are we to do With these
debts? The total change on deflate
today Including interest, cost of
inanagement, discount anti ex-
change amounts to approximately
$137,000,000, 'total expenses of
government in ereawar daye (1914)
was $186,000,000, Are you sur-
prised Shat oasts of government
have gone up when interest chai'ge8
take so much money,
Mr. McCullagh has not told us
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 enticle, But I
would like your opiniou—the
opinion of the man or woman now
reading this article. What should
be done to reduce the debts of the
Dominion of Canada?
(Watch for article next week)
We did, however, collect a consid-
erable amount under the War Tax
Revenue Act. These taxes were
applied to banks and trust oompan-
les. They covered also excess
profits, income 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 $5,000.600,000 of war costs
and we have in our debt of todey
$1,732,000,000 due to the war.
There is another item in our debt
pile --4t amounts to $924,000,000.
Where doss it cootie from? It
represents the cost of the depres-
sion. Revenues dell off—t:osts
went up. Money was spent on
relief, railway deficits and other
things. It had: tobe borrowed—it
was added to the debt,
Let us now sum up in one brief
able the whole story' of our debt
including one item still to explain
which amounts to $109,000,000.
Debt and its Cause
old. pre-war bait $ 336,000,000
Eebt due to war 1,732,000,000
Debt due
to depression
924,000,000
19,400,000
Capital Turnover
Slows On Farms
Fanning is similar to any other
business in th1.t the same necessary
principles may be applied. Farmers
as well as other btu'iness men, are
dependent on the margin betwea
costs and returns, An importer t
factor affecting that margin is the
rate of capital turnover. Farms re-
quire a relatively high capital In-
vestment, hence it is important to
secure a large annual turnover if
capital charges are to he met. The
first year report 031 the Ontario
Dairy Farm study, as reported by
the Economics Division, Marketing
Service, Dominion Department of
The Milk Market group have the
most favourable ratio between re-
ceipts and investment would require
an overage of three years dor re-
ceipts to equal investment, The
group with the least favourable
ratio would requi'•e an average of
6.2 year. The Dominion Bureau of
Statistics reported for the year,
that the annual sales in fruit and
vegetable stores were 21,0 times,
grocery stores 8,4 times, meat mar-
kets 27.4 and gas filling stations
17.0 times their closing inventory
i values.
This difference between the farm
' and city .business is due to the
faxen and city business is due to the
farmer's dependence on biological
processes. 'Some farmers produce
milk, eggs and other products which
are sold frequently throughout the
year. Where this type of produc-
tion
roducttion is passible, it aids in financing
andmay offset borrowing for part
of the year, Many producers, show -
ever, depend for part of their in-
come on sales of crops and live
stock, some of which require up to
three or four years to reach matur-
ity. The annual turnover with
such c eteiprises is slow and creates
a heavy demand for capital.
The Ontario Dairy Farm study re-
veals that the total investment per
farm in the Milk Market group hav-
ing lowest capital is over $3,000
whereas the average for all retail
food stones in Canada was 35,343,
The long time nature and high capi-
tal requirements of farming tend to
hide the necessity for the efficient
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use of farm capital. Nevertheless
it is important, To illustrate the
necessity for careful use of capital
by creating large business volume,
two farms of One milk market are
compared. One farm returned the
highest and the other the lowest net
income for the group, The former
has an investment of over $13,000
but, in 2.3 years, receipts would
equal capital. The latter is capit•
alized at just over $9,000 but, 7.9
yeans would be required ,for re-
ceipts to equal investment.
The best use of capital may be
secured on a farm by building up
enterprises to capacity and thus use
capital fully. In a study of the farm
business the comparative slow rate ,
of business turnover should be
kept in mind and efforts directed
toward increasing tbe annual bust- I
nese turnover,
The fine ar't of public speaking is
being well developed in Canada.
Today's illustration comes from a
report o3 the city commit meeting in
Toronto, Mayor Day speaking:
"Any fool should know that a rug
in the mayor's office has nothing to
do with a retiring allowance."
Frozen Fruits
Increase
The means of processing frozen
fruity to Canada is now well estab-
lished, with several factories In
active operation. The peek of
frozen fruit for remanufacturing
Purposes . ,in 1935 was 9,900;000
pounds. Blueberries were, frozen
In considerable quantttes and
shipped in carloads, principally to
the United 'States, Total shipments
in the six months, April to Septem-
ber, 1933, amounted to 601,000
pounds With the establishment of
suitable equipment for handling
frozen fruit in retail Stores during
the coming year, it is expected that
Isales will be considerably increased.
i Apples To Britain
During the •current season ule to
February 1, the amount et Caned-
' tan apples exported to the British
=tricot was 1,495,487 barrels, and,
2,247,422 'boxes. This represents an,
increase of 30 per cent in barrels.
and a decrease of 1 per cent in box.
es compared with the corresponding
period of the •former season.
"Trying Them Out"
Will be held in the
BLUEVALE HALL
Friday, March 3rd
In Aid of Ebenezer Church, Brownstown
Anis sic al Entertainment
by ' Orchestra
assisted by theKansasFarrner
Elmer D. Bell, Chairman
Ili
Admission adults 25c, Cbitdreo 1 Oc