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The Seaforth News, 1933-07-20, Page 7TH'UtR]SDAX,JtJLY 20 1933: THH SEAPORT II%Ni't7IS., ■ s lea, ont tateni We•,can save you money on Bill and Charge Forms, standard sizes to fit ledgers, white or colors. It will \pay you o see our 'samples. Also .best quality Metal Hinged' Sec- tional ,Post Binders and Index. 1 .I. i ■ 1 The Seaforth News Phone 84 0 1• u�ut�r � a.�sn�au�au�or�nn�nu�an�uu+r O O. H. McInnes (hiropraCtor Electro Therapist — Massage Office — Commercial Hotel Hours --Mon. and 'Thurs. after- noons and by appointment` FOOT CORR'ECTIO'N by ,manipulation—Sun-ray treat- ment Phone 227. 'Founded in 1900 ASPARAGUS ROOTS Many of the large asparagus Plantations in the country have been planted. with IMleOonnell's (Asparagus 'Roo'ts. Why not let us supply your needs. 52 Page Nursery 'Catalogue Free. The McCOINNELL NURSERY Co. Port Burwell, Ont. • A Canadian Review of Reviews This 'weekly magazine offers a re- marka'ble selection of 'articles and car- toons gathered from the latest issues ? of the leading 'British and American journals and reviews. It reflects 'the current thought of both hemispheres "and features covering literature and the arts, the progress of science, edu- cation, the house beautiful, andwo- men's 'interests. on all 'world problems. Beside this 'it has a department of. finance , investment and insurance, I'ts every page is a window to some fresh vision Its every column is a live -wire contact with life! WOR'I:D WIDE is a FORUM I'ts editors are chairmen, not com- batants. Dts articles are selected for their outstanding merit, illumination and, entertainment. 'To sit down in your own home for a' quiet tete a tete with some 'of the world's beat in'form'ed,' and clearest thinkers on subjects of vital interest is the great'advatttage, week by week, of those who give welcome to this entertaining magazine. "A magazine of wtiich Canadians may well' be proud." "Literally, 'a feast of reason and a flow of soul ." "Almost every article' is worth fil- ing or sharing with a friend." Every, one of the pages of World, Wide is ll00%0 iteterestin'g to Canadians Issued Weekly 15 ets'copy; $3.50 yearly On Trial to •NEW subscribers 8 ,weeks only 35 as net One Year $2.00 t trial in Montreal and 'sulburbs, On also in 'U.S. add '1'c for every week of service. For, other foreign! countries add d 2 cts.) : • • . . duction •i'n general springs from a state of mind like ,'this young ,man's. IBeFore the ,crisis nobody 'complained of the excessive growth df m'a'chine industry, Mechanical energy was ev- erywhere regarded as a source of wealth and power whidh permitted the 'masses to share in the comforts of life; it was the essen'ti'al factor .of progress and the very b'asi's of our oiwiliaat on. Ba'ckward 'pe o rp.1 e s thought only of how they, tdo, might 'benefit from it, and the more .ad- vanced nations were proud to allow them to do so. But in the last three years ind'us- tri'al Europe has seen its unemploy- ment rise to 12,500,000 and that' in the United 'States "to some 112,,00:0;000. Now ej�ononsists and business 'men have •stidden0y discovered that mach- ine production eliminates manual la- bor and thus is an essential factor in causing ruin and social regression. This strange as'serti'on recalls the un- enlightened ,,clays 'When silk workers in Lyons s'ainashed the ' +J!acquard looms; it reveals an amazing concep- tion n tiic'h is contradicted by a cent- ury of experience. IIt is hardily more than 100 years since machine production be'gan to spread ,over the world, 'and always it, was the country with the most mach- ines that employed' t'he ,most work- ers. England, t'he first amide to be indus'tria'lized, has seen its population increase in a century loom '114,000,000, Germany, 'Which .in 11870 could feed a population of only 40,000,000,' manag ed by 119114 to sup'p'ort 65,000;000 in- habitants, thanes ,,to its industries, and even imported womleinen. As fac-,. tories multiplied teethe United States the stream of immigration, .grew, -ung til the World War., Under fhe slim: nous of hhis new means of. produc- tion, Europe's pop'ul'ation rose fro'tn 107,000,100.0 in 11800 to 430,000,000 in 11930, while 120,000;000 of its people emigrated to other parts, oaf .the Woirl'd., , Iqt four 'generations the white race :imrereased more .than it had -lone ;be tween the age, of the mamngaths and' the 'time of N'apol'eon. And if its'. cumbers tripled, tihe'standard of com fort of the, masses was raised ° no fess. It is true, that. for three' years in al'1', the industrial countries the number of; jells has diminished'- in a •disquieting. Matinee while wages' have fallen" or, even disappieared.'.B'u't can a crisis o'f', three yams wipe out :^the experience cif 'a century? 'Ps the ,present situa tion more than an accident,: a mis- take in, .mlanagemen!t ? People de- nounce the'engi,neers and talk l'gf boy- po'tting i'ti've'ntors and restr'ainin'g the imagination of. scienrttsts—wasi'' though• ,they, had full • change of the ' nteeh'an ism they have created or manipu- Tatel Blefore indicting ap'pliiedl sci- A, WORLD FIVE YEAR PLAN •Il ::krisw a young • man wlho used ,to he very proud alt Iris ,pieteerfu] motor "car 'and .Iboas'ted' olf 'r' its accom'piish=, agents. Boit ° ie day, ,when he had• perhaps drunk a bit, too. Tweh, the took a ,corner at high speed and roll ed into a- iliiteti: The car •was damaged and he suffered a 'broken ]leg. Since, theit''he 'conbiizally cu•gses, ,not h'is awn, Unskillful ,driving, but, the mlakers of motor' cars;,; He goes'; shout ,On' crate chats, insisting that 'the manvflaetiire of exces'sivel'y pawerifwl motors should , he foiibidden�, (Sit seems to that ithe indictment now bretight ,against .machine'. pro-, Ir 6, wee and: technique 'should We noti +But'fronn the beginning of :the criticize abase who employ and dir 'twentieth 'century the system of ect them? eral economy" began' to`:decline. The (Let us'' first recal some primary •'brake df competition wee •relaxed. trttths tido often tieglected, (• Tariff ',protection; of first': temporary (The .'cost of pro'du,cing a! given ar- afid limited to a few,.in'dus'tries, g'radu- tiele is th'e total cost. of production ally became permanent and oniverstaa divided b'y the nu'm'ber,,of,, of Tariffs'shiel'ded". `weak industries in that article" that are produced. In ,the every country{ from the selective ac 'time',of 'animal energy the fixed' tion of foreign competition. Then charges Were insign'ilficant,, produc- cartels and trusts suppressed internal tion being in ,prop'orti'on .to the num compe'ti'tion in alt 'the important in ber of niers or animals employed. dustries—tdihile carefully leaving (Hence the increase of outpput dlid n'ok operation the badly equipped enter- evaterialtyreduce t'he cost per ugti't of prises lit order to justify tariff protec- tion and the high domestic prices by Which ', the lietter-equipped prod'u'cers grdfited gull more than the less: eflf- cient Thtts the weak plants, instead of being ,absorbed, continued to produce at the aid rate, while the stronger ones, stianulated by 'assured' profits, expanded their oubpn't. On this basis there would l have been more need than ever to apply the accelerator— that is, to enlarge •the foreign. ,market. But, unfo'rtunate'ly, each govern- ment, in protecting its weak indus- tries, limited the exports coming from neighboring coun't'ries —w'h'ich inevit- ably retaliated. in kind, Obstructed by so many barriers, foreign trade among civilized nations would have d'isap- peare'd had it .not 'been for the costly practice, of "dumping." What was there left to do but to dispose of 'the s'urp'lus production of all these countries by selling it in e'conomical!ly 'bac'kwa'rd lands ? But it became clear in the first decade of this century that all t'he continents had gradually :been- 'brough't within the scope of world 'commerce. There were no more "unknown land's" to discover,, • ir'he great powers began to clash over colonies, protectorates and other spheres df special ;privileges. Then 'came the .'World War. Under pressure of military need and the stimulus of 'high, prices, countries like Canada, India and Australia became partly in- dustrialized and bought less from Eu- rope; others, like the United States, became exporter's; the former clients of Europe 'became its competitors. 'European expansion began to slow down. "L'ere du monde fini com- mence" Q°'11h'e era olf the completed world begins"), warned the great poet Paul Vadery. 'This was the moment to aptfely the brakes to the ma,ch:ine production. But exactly the contrary was done. The war and the industrial ,develolp- ment that re'sul'ted made the Unit- ed .States the greatest lemming coun- try of the world. From 1.921 to 1929 Wall. Street made investments amoun'ting to seventeen billion dollars +—eight billion in th'e United States and nine b'iifion 'scattered among the. other countries with machine ci'vil'iza- tions. This enormous stream of' credit over-.s'timulateid produotion every- where. Thanks to liberal loans on mortgages, American, Canadian and Argentinian farmers began applying m'ach'inery to' the production of wheat; sugar refineries and mines per- fected and extended their equipment; the factories of Europe and Japan went in for "ratiostalization." 'Conse- quently by 119210 •we were faced with huge stocks of wheat, coffee, sugar, gasoline, copper, steel, chemical pro- ducts, textiles and manufactured art- icles of all 'sorts, Instead of cutting off credits, bank- ers then financed pools and cartels to prevent a fall in prices, and this caus- ed everybody to go on overproducing is a blind 'frenzy of prosperity, Then suddenly, in 1929, came the crisis. 'The rapid fall of 'prices of foods and. raw materials destroyed the perches ing power of The farming countries and so reduced the .market' for the .t roducts of the industrial c'oun'tries,. which were already overstocked with unsaleable merchandise. Exporting indus't'ries had 'to distress many work-. er,s• As men lost their jobs, they con- sumed less, and this cut down the itvarket for the industries producing; dor domestic consumption. 'Naturally the meet highly mechanized industries (those with the greatest ,fixed charges eo bear) ware hardest' hit. There are today some 12,'500,000 unemployed in industrial Europe .and same 12,.000,000 in the United 'Spate's, while misery reigns over all the farms', from Hun- gary to the 'Argentine and from Aus- tra'lia to Po'l'and, • , Alt branches of economic activity suffer agriculture, industry, cam-, merce, lban'kinvg, currencies, budgets— in every ,coun:try; 'The crisis is univer• sal and complete, But is it the fault ,of the machine a 'Uniti'l recently 'the machine praduc ed peaslperilty to everybody's satisfy: - pion; now it is held responsible for gteneral ruin, W'ho has; caused the dis- end'er? .Is it the engineer or the scien- tist? Not at all., How" shalt we es'ca'pe from �fhis crisis ? +Thhis,crisis, which we like to .char; acted 'e as "world-wide-" really af- •fecbs onlythe Whit White popwla'tfan's whiclh ,have developed a, mechanized ci'viliz'ation and a few tm'illion non- wh'ite people m'ov'ing econoriticallly in, But under the ,.system of ,mechan-•. ical energy the fixed, charges (costs golf equipment and interest andsfn'k; ing fund 'for capital) are' consider 'able, While the vaaiable 'dusts, (spar ticularly wages) are rela'tivel'y less lin- portant. The result is that the greater the number of units ;produced the smatter the unit cost of production. Ala the price of the a'rt'icle falls more' people can buy it and the problem, 'of marketing it becomes easy. Still better, when sales are , 'fi'eien't to coverall fixed charges a point is reached where additional unts produced cdst hardly more than 'the variable charges necessary to .make them "('the cost of raw mater- ial and wages)., The price ''.may then be lowered to stimulate sales, This'. 'leads to the ins'tallabion of new mach- fines, which further cheapen the cost of production; this produces more sates and causes, mew 'factoriesto be 'britt=and so on ad infinitum. This is the principle called mass 'production. Unfortunately it has an other aspect that is oiften overlooked: 'Any enterprise 'begins to earn pro- 'fits only when the number of units sold is great enough to pay all the (fixed charges, ,A shoemaker working by hand, whose fixed charges (rent, Lazes and living expenses) are very small, may earn' a livelihood by mak- '500 pairs oif shoes a year. But a Ifacto'ry having an egiu'ipment costing $2;000,000 'mus't produce at least 10,- 000 0;000 pairs to keep going, and a great company 'capitalized • at '$10,000,000 'would lose money it it sod.no more than 50,000 pairs. (Whence it follows that, when the. market contracts, the enterprise which is the best equipp'ed is the most vulnerable. The 'Imre important the tnecltlatsloal equfplment is the higher the minimum df turnover that must be attained. 'The price o'f. machine pro- duction' is (the necessity .of .expan'sion. IHere appears wh'at'I shall call the illusion of the technician, Engineers usually im'a'gine that if they manage by some mechanical ;trick' to turn out a better or a cheaper prodac :t it is always sure' olf finding. a , market. This is true "only under one or two conditions: either the: best equipped plant will enitarge its sales by captur- ing the trade of its local competitors or it will have to find markets abroad. 'Duping the nineteenth century these two conditions were fully realized. Free competition ,enabled the best equi'p'ped manufacturer to eliminate his rivals by redu'c'ing prices, and the menaced concerns could defend them- selves only by modernizing their plants—whence the ever -accelerating development ,of machin e'production. In this way 'the, domestic market was quickly Oversupplied, but the ex- cess could be exported to countries not yet indu'strialized, +Glre'at Britain, pioneer in machine production, soon 'began to sell its surplus on the Con- 'tinen:t; and when' the Continent also became industr'ialized, both set about exploiting the markets of ,America, A's'i'a and Australia, Under .these c'ircttmstannes if' was possible for the industrial engineer and the banker to 'build almost at will, installing ever• more numerous and powerful machines, w'ithou't needing to worry about., the ipasaiibility of a jam in the channels of trade. ; IS'otnetinaes ;the expansion of pro- duction ran ahead of consumption. There,resutted ,a drop in' prices, which, through 'bankruptcy, •wi'ped out 'sur- plus enterprises. Mean'w'hi'le the ex- ploitation of new countries went on, and after ' a 'few months, or a year or two' at ,nos•t, accumulated stocks of goods 'were agbsorb:ed once more' and machine industry continued on its way. Production was roulghly adjusted to con'sum'ption by the double action "cyclical" crises, whioh checked• out- put, and the dewellap'ment of, new. lands, which stimulated it. +Thus''it' was thatt fhro'ughout the nineteenth century machine, prodluc- tion managed to make the magnificent progresis ;that it ',did'. IConabant de- , ve'lopment' olf in'dusbry l'a'nd trans- porta•tion,attracted to titre cities more and more'workensi as the r,elabive pro portion 'of labor charged against the ;:cost of production' decreased, it was possible to pay the workers, at an in ,creasing geode, while the, to veered prices of the articles produced'causedl their wages stea'di'ly to 'increase in i.'puncihiasi:ng power.. Is it ' s sur rii'n !then,' that forSurprising; the generations machine -,was regarded ' as the • ,es sential. factor in ' well -(being, . social pgiogres's.and civ'ihaJation'?' ei. tlte'o'rbits of the white "nations,--w'ho cotn'prise altogether little aver one quttu'ter of the world's ,population. !The foreign trade of India, with its 348 million in'h'abitants, is not as 'much as that of Canada, with' 10 million in- dialbitants. In the east of Europe ;and in the Mediterranean petunsulai machine civ 'iz'ariion has hardly reached' be- yond the tolwns•. Among '100,000,000 people living ' between . Finlland and iG'recce there are 60 million in rural areas who stilt wear handawoven gar- ments arments and have about as little con- tact with modern industry as though they dwelt in the Deccan or Kam- chatka. _What is the reason for this 'curious isolation ? 'Until .recenit,yearsthe railway was almost the only .mean's of economic penetration into new areas. • _As the 'cost of construction ,was high, the railway could offer cheap transport only if each loconeotive• drew a long train of loaded cars. So the railways went to the towns. 01 was much too expensive to build Lines to the small rural centres of poor countries. This is why our' progress so far has been almost exclusively urban. ' (But for several years we have had a new, less costly and moire adaptable means of transport; the automobile in various shapes and sizes, which can go almost anywhere and can reach the most remote villages. Suppose the countryside were covered with a network,of hard -.surfaced roads, ,which American industry could build profit- ably at the rate of ha'l'f a mile a day. The traffic would soon be so great that the taxes on gasoline would surf lfice to pay the service of .the debt in cttcred in building the road's. From the great arteries of com- merce, the railways and rivers, would branch out thousands of contributory 'ones in the form of motor roads. 'alit - lions of rural settlements now cut off from the world would be brought each year within the sphere of inter- national trade. If complementary ag- ricultural regions were linked togeth- er by rail'wa'ys or canals they would exchange with each other wheat for timber, tobacco for live stock, phos- phates for sugar or fodder,' and with the ,profits thus gained they would buy the products .of our factories. Above all, there should be organized in these countries a sound' internal market and no attempt sholkld be m'ad'e to maintain the sort of one! way traffic which for too long was the great mistake of our colonial ,method's. The purchasing power of these pea- sants is doubtless very small. The principal reason is that they lack cap- ita( and must 'borro'w from local usurers at an average of 24 per cent in'teres't. But if they could avail themselves of a system of credit based upon their harvests,' they would 'buy more, without increasing their production, even if world prices for farm produce did not rise. 'On this basis I have drawn up e five-year plan for the development of Eastern Europe w'h'ich could open up Inc German, French, Ltalian and Aus- trian in•dmstty a new market consist- ing of 6%000,000 consumers. ,Similar schemes could be devised for the Near ,East and for India (which would par- ticularly interest B'ri'tain), for South America and eastern Asia (of great interest to the United States) without giving monopolies to anybody. If the billions o.f dollars now hoard- ed or unused in America, France, S'witzerl'and and Holland, could be utilized in realizing such a plan, the factories soon would have plenty of orders, the unemployed would go to work again, and with confidence re- established, the expansion of machine industry would once :more enhance the productivity of the world. But to accom'plis'h this we must give top the out-of-date methods of eco noanic natio'natisuin; haphazard lend- ing for the equipment of production. must b'e replaced by marketing cred- its for these who will be new 'con- nanlers. In the nineteenth century economic' expansion operated by meaes'o'f the railway and the mort- gage battle; in the twentieth century it will depend upon the automobile and the credit warrant, To return to the simile with which we began, it is not the autom'obi'le anotor that wants changing, 'but the state of mind of ,the driver. Only a new and more rational development of machine in'dhtstry ,can save us from the crisis. (Nights of Agony come in the train of asthma. The ,victim cannot lie drown, and sleep is (driven from his brain. 'What grateful relief is t'he im- mediate effect of Dr. J. D. Kellogg's Asthma 'Remedy. It banishes the feightf tile cond'ition's, clears the pass- ages, and enables the afflicted cue to 'again sleep as soundly and restfully las a child. IIn'sist on the genuine at your nearby druggist. ".The thing for you to do," said the friend, '"is "to stop thinkintg 'about 'yourself—to bury you'rsellf in , your work." ' '"And me a concrete mixerl" •MATTFJRN,,'SAIFE AS USUAL ",Saife at Anadyr, C'hulco'tka, .Siberia," Jimmie Mattern!' Significant, that first word of the message that told a. " waiting civilization of the arrival of the American flier,; missing since Jane 115, at a remote trading post in the far northeas't corner of :Siberia, "Safe;" Not "saved' or "rescued," 'but a statement of a continuous condition of well-being, of good work in the past and more good work to come. And certainly "Jiimimie" Mattern flies with that thought, in all his work. His calmness after .the crack-up in 'Russia" last year, his continued efforts to fin- ish this flight despite a series of dis couralging conditions which would have made most aviators give up and turn back, have all been carried out, not with bravado, not with a dogged determination to go .through at, all cost, but rather with an assurance that discourageihents are just a part of the game, that they really can't hold him back and that he will calmly "carry'' on." There naturally wild arise the ques- tion of the value of the flight, as to what benefit aviation can gain from his effort, His 'objectives were two: First, to 'break the round -the -world solo flight around the world. The sec- ond appears the more worthy and the only one possiblle now. Its value is the itI agination-capituring possibilities of a solo flight over ,what will prob- ably be a great aeriel trade route in the future. While Italy's Balbb and America's Lindberg are exploring the north At- lantic route, the far less explored commercial field of the Orient opens to North American tnade, and the route of "Jimmie" Mattern appears as the ,logical course of future Paciific commercial air travel. As the . Lind- bergh solo flight focused attention on Atlantic possibilities, Mattern's flight should put the spotlight on the north- ern Pacific. "Jimmie" Mattern in the very fail- ure to make his first objective prom- ises to make 'his second one really worth while. While a successful solo flight would have caused a public stir, his overco'm'ing of obstacles and his° canning through safe after being miss- ing for twenty-two days place a uni- que emphasis on his work and on op- portunities in the P'aci;flc area. Send us the names of your visitors. A total of 544,129 radio receiv- ing licenses have been issued by the Canadian 'Government Radio Branch from April 1 to September 30, 1932, or approximately one to every eighteen persons of the population of the Dominion. A movie theatre has been in- stalled un R. 11. S. Aorangi on its Australasianrun and passengers had the first entertainment in that line an a recent voyage. This is the first ship to reach Vancou- ver carrying, sound movie equip- ment. china's fl-st -woman barrister, Mrs, 1,o Soon hint '15,0. was among the passengers aboard the Em- press of Russia, recently sailing from Vancouver. Mrs. Soon ob- tained her leen! training in Eng- land and is attached to the Hong Kong bar;. The Canadian people seem to haves• devet"prrl a ccosictorable taste tut • tacaroni, vermicelli, spaghetti and the like Italian food preparations. Output of 14 Can- adian factories in 19331 was 20,- 011,423 ponnds as compared with 16,812.625 lbs. in 3930. 'With. Remembrance Day in our minds, it is tlinety to recall the brief epitome of Canada's part in the war nisei -Med on a tablet fn _. the House of Parliament at Ot- tawa : — "Six hundred twenty eight•thousau'O, six hundred forty- two bore the na.dge or Canada In Ilse Great W'ar :sixty thousand six bundled sixty-one wet dearth and , passed on." Good hunting is reported from the Bales Camp, near blatagauta. ' Ontario, on the main line of the Canadian Pacific Railway, seventy`. miles east of Sudbury. Moose and deer are very numerous close to the cause and in ono morning; a couple of U. S. limiters secured a fine bull moose and a deer. They killed, to the limit of their licenses within a few clays. A free scholarship to be held at L'Eeole Polyteehnique of the Uni- versttyof Montreal, offered by tho Canadian Pacific Railway to minor sons of employees of the railway, was awarded to J. P. Lecavalier, 1S -year-old son of Ephrem Leca- valier, chief clerk at the Mile End Station. The award entitles to five years study proceeding to the degree of Bachelor ofCivil Engfn- eering. Canadian' Pacific Railway low rate return bargain excursions, a highly popular feature of the rail- way's operation since February last, have been and will be well maintained up to the end of tee year. Outstanding recently have been the `trip to Chicago from Montreal and the sborter Wee Into and out of the major cities from•'and to the strtounding pre- vinces. , The rate and a quart, e • fare for return trips during tee Remembrance 'nay botiday w'a well patronized and this cotat•rs sign is again to be offered for the Christmas and New Year boli- dan. (S'76+)