CANADA HAS BIG BUDGET SURPLUS

Chronicle (Levin), 1 May 1947, Page 5

CANADA HAS BIG BUDGET SURPLUS

^ v Received Wednesdav, 7.45 p.m. OTTAWA, April 29. Tlie fiscal year 1940-47 ended with a surplus of 332,01)1), (H)U dollars, an-liiiiiiif-cd tlie Minister oi 1-iiia.nee, Hi. 1). ('. Abbott, in a Budget speech in the Coiniiions. This is t ht? lirst surplus since 1930 and greutvr tlian the total oi all surpluses in Canada 's history. It would l>e applied to t'anada s 1:5,U(){),Vk)(i,(H)0 dollars net dobt. Mr. Abbott warned the llouse tliat although the surplus was a tribute to the health and strength of Canada's econoinv, there were abnornial aspects of bolli the reveuue and expenditure. Tlie I'evenue eontained eredits of a 1 f.iiporary character sueh as the pro ci-vds of saies of surplus war assets. 1 1 * added: "Our present prosperity is bascd iiii eonsumer and business ex j.oiiditure as well as the high level oi' exports and prosperity can be expccted to coul inue. ' ' Mr. Abbott defended the Governmi'ii! 's action last summer in adjusting the Canadian dollar to paritv with nit'ul Rtates dollar, thereby endiug rc-urr«Mit runiours that the Uovernment intoided reversing this step. Mr. Abbott aseribed the enrrent drain on Canada's reserve of United Rtates dollars to the faet that, in periods of hiuh proiluct ion and high eonsumer incotiivs, t'anada 's imports from United S'atcs heavily inereased. Mr. Abbott dispeied the contention that exchange ■ li'j'i1 c.-iution would restriet imports or iie-rcase exports. He declared that Canada's judymvnt on this matter had coiilinned by the action. of other oo\ crjnitents, and averred that the possibility of a country improving its •:\ha iine position by curreney de }>!♦-•• I:i ! i« > u is ext rentely- Jimit-ed. M r. Abbott- pointed out that c-Miada 's policy of extending loans to r,d!cd Kingdom and Kuropean comi triis. disl.H-uted bv the yrar, was ono of th- ti : i i i i sujiports of the present high pro'lm-tion and ineome. He eapliasis,.,! that it was in Canada's in teic t to niake snch loans but warneo tha! siodi a nolicy could not be. eon tiirn-d indefinitely. Mr. Abbott said that despit--C;i iiadn M adverse trade bahmce wit''1 l -iic.l Stutcs of 6' •.•>,.())() ,000 dollars. Crucida had a favourabl-e internat iona tru.lc l.alancc oi" 15^,000.000 dollars.