LOOKING AHEAD

Evening Post, Volume CXXI, Issue 3, 4 January 1936, Page 14

LOOKING AHEAD

PLANNING FOR CANADA

WORK RELIEF AND TRADE

LIBERALS' COURSE

"With opposition in the House reduced to a small "o" by the overpowering Liberal majority of October 14, the Mackenzie King Government surveys 'from a position of unique authority a field of administrative endeavour marked by many encouraging signs, while consolidating forces for the promised drive against the remaining areas of depression, writes Henry Edison Williams in the "Christian Science Monitor." The proverbial "luck of the Liberals" which, according to popular superstition, operates to place the old Laurier parly in power on the recurrent flow-tide of the economic cycle, is apparently fulfilling expectations. Almost coincidentally with the announcement of a new Cabinet—a Cabinet, by the way, distinguished for the soundness and sagacity of its members —came the report of the Dominion Bureau of Statistics on a 32,000 increase | in employment during the month of September, the largest increase for that month in any of the fourteen years since statistics have been available. While Bennett supporters quite naturally assume that this indication of returning prosperity is merely the sign that the Conservative Party's set of new-deal teeth is just beginning to bite into the depression, other observers —looking, perhaps, through optimistic lenses—declare that the assured defeat of a third-party threat and the further assurance of a temperate regime encouraged business to put out fresh blooms. In many quarters—especially those radiating from St. James's Street—several factors, coincident to the return of Liberal policies, promise to brighten the business outlook ahead. These include a seasonal stimulus to trade, prospects for improved foreign trade, rising employment trends, increasing freight haulage, encouraging electric power outlook, building improvement and automotive expansion. THE NEXT STEP. Thus on a background of auspicious circumstances, plans for the conference of provincial representatives go forward. This conference—referred to in Mr. King's campaign talks as an aid to end confusion and needless conflicts and a promise of democratic social adjustments—is the next important step to follow the selection of a Cabinet. Out of it is expected to emerge the keystone of the new Liberal structure. Like the Conference of Governors, which in 1928 sounded the pitch of President-elect Hoover's stabilisation theme for the United States, the gathering of Provincial Premiers is expected to evolve a planned prosperity for Canada. Mr. King is convinced, he has said, that Canada's problems can only be settled by co-operation between the provinces and the Dominion. In the forefront of these problems are the diabolical twins: debt and overtaxation. The new Premier believes that a nation-wide plan to reduce interest and principal on the Public Debt is an immediate need. He proposes likewise to work out a uniform method of dealing with mortgage and other private debts to supplant the various, and sometimes conflicting, methods now used in the several provinces. The interprovincial conference is expected to review, in fact, the whole field of taxation in the light of provincialDominion interests. With unemployment figures in Canada reaching close to the half-million mark, the Liberal Party considers measures of relief, and stimulation of public and private employment, among! the most urgent national problems. The present proposal is to employ a representative national commission to co-operate with the provinces and municipalities in the administration of a rehabilitation programme. Hence the parly pledge—to introduce policies which will function to provide employment by reviving industry and trade and to introduce a national system of unemployment insurance—is likely to present another theme for conference discussions. That imminent social readjustments will follow no insipid course is indicated by Mr. King's campaign assertions. While the Prime Minister is an advocate of the evolutionary method of reform, a firm believer in the institutions of self-government, he is likewise keenly awake lo the need of social adjustments to match the march of technological advances. j "FULL OF INJUSTICES." I As long ago as 1919. speaking before the Empire Club of Toronto, he declared: "The shock of war, stirring the world's soul to its very depths, has brought before our eyes the shattered image of an industrial civilisation which is full of injustices. . Let us be assured of this: the unrest in the world of industry today is no ephemeral and transitory affair; no mere aftermath of the hideous convulsion which has shaken existing society to its very foundations. It is the voice of a grief-stricken humanity crying for justice in the relations of industry." In view of this and similar utterances, and despite the anti new-deal vote which placed Liberal Premiers in eight of the nine provinces and then gave the National Government the largest Liberal majority in history, it logically may be assumed that a social security programme of a progressive nature will be forthcoming. It is not without significance that Mr. King consistently refused ,to combat the belated new-deal policies introduced in the last year of the Bennett t regime. ( j But the problem which Canada andj the rest of the world eye with greatest interest, perhaps, is that of trade. I Both without and within the Dominion there is general expectancy of tariff revisions which will operate lo stimulate two-way commercial intercourse. The reaction of the election on the money markets of the world was al-| most immediate. Two days after the Liberal landslide Canadian loans on British exchanges were fractionally I higher, while Vancouver slocks which had been suspended were again being quoted. In London trade circles an almosl-too-oplimistic hope for a radical revision of the Ottawa Agreements was made vocal. NEW PROPOSALS. It is confidently forecast, therefore, that before the period elapses at the end of which the United States has empowered President Roosevelt to im-j; pose discriminatory tariffs against;: countries failing to conclude trade] treaties. Canadian representatives \vi 1 1 j - visit Washington armed with newh trade proposals. The resignation of j: Major W. D. Hcrridge, Canadian Mm- • isfer to Washington, clears the way for i a King appointee to that position who i is in sympathy with the reciprocal i policy, although negotiations may proceed without the appointment being consummated.

• Although Canada's alittude towards the Jtalo-Elhiopinn situation played a very minor part in the campaign, the action of the new Prime Minister towards supporting the League of Nations in the application of economic penalties meets with general approval-

Mr. King announced that the Government was taking steps at once towards the prohibition of arms exportation and financial aid to Italy, and that it was likewise prepared to restrict, along with other League members, imports to and from Italy.

But he made clear that the Canadian Government recognised no commitment binding Canada to adopt military sanctions, and that, indeed, no such commitment was possible without the approval of Parliament. Sentiment in trading centres is that Canada will not suffer from upholding the sanctions. The export trade with Italy will not be greatly affected, since the influence of the war on Italian credit leaves that country little gold for other than war materials.

Financial circles in Canada are only mildly concerned, therefore, with Italian embargoes, their greater concern being fastened on the possible realignment of the credit structure of Canadian banks. It is anticipated that Mr. King presently will implement his campaign promises to give Canada a "properly constituted national bank to perform the functions of rediscount, and the control of currency issues in terms of public need."

Further party policies on which action is expected in the early days of the new Parliament is the safeguarding of investors through an investment control board, industrial regulations for the welfare of both workers and consumers, a more equitable distribution of wealth, and other adjustments affecting internal trade, development of natural resources and control of Government expenses.