CANADA

Hokitika Guardian, 25 February 1929, Page 8

CANADA

oiusis ;l\ PArKK-rujji*

IN DUS I .'ill

OUTPUT TO BE PECULATED

The Canadian paper manufacturing inuusiry is m a uisuirued cumlitioi. (writes the I’oroiuo correspondent 01 the Ate I hour lie Argus). L.w,essi.e production, resulting irom a too-rapiu nuilnplicauon ol pulp and paper nulls has led to excessive coinpetinon and wasteful “cutting ' of prices. The Hearst press of tlie United States brought the crisis to a head when it procured a three years contract through the International Paper Company for all the newsprint which it requires at 50 dollars (CIO) a ton. The result is that many mills in Ontario, Quebec, and other provinces have been running on a 50 per cent., or GO per cent, capacity. Many agi icultural settlers in the backwoods of (Ontario and Quebec have lost the market for pulpwood upon which they largely, depended for a. living while they cleared their lands for farming purposes, More serious is the daiigci incurred by Canada’s second largest industry and by the G 00,00.1.000 dollais (£120,000.000) invested' in that industry. The provincial Governments ha\\ doubtless been to ulaine in encouraging the establishment of too many mills and in making too extensive grants of lands for their use. At the present rate of consumption Canada’s wood pulp forests will be exhausted in a few years. One essential reform is Govermental inistence on a more ecomuuimie use of the forests alienated. Every mill should be compelled to cut only the lareger trees on its land, ihis policy will allow the smaller trees to grow to their full size. If such a course be followed the forests will yield a poipetual annual harvest instead of being destroyed within two decades. To tins end it may be possible to revise the wasteful contract entered into by one company with the Hearst press, a < ontract which tends to set a price for all Canadian paper. One? they were seized of the situation the Premiers of Ontario and Quebec joined hands with a view to bringing order out of chaos. In Ontario the Premier (Mr Ferguson) issued an ultimatum to the companies, which stated: “The Government finds it necessary to direct your attention to tin fact that your contract contains a number of important covenants, that many of the companies are in arrear and default lias occurred with respect to a number of the conditions and obligations provided in the contracts. Unless the people interested in the op’oration of this industry take some immediate step to put the industry on a more satisfactory basis and improve the present situation, the Government will be compelled to give serious and immediate consideration to what action it should take to protect the interests of this province, its investors, its settlers, its wage earners, and its people generally.” As a consequence of tlii - communication and of a similar ultimatum issued by the Premier of Quebec, leading paper makers met the two Premiers with a plan to stabilise the industry by rationing their output. The opinion of the conference was in the main that newsprint should be sold at a fixed price of 55 dollars (fill) or 57 dollars (£ll 10s) a ton. The manufacturers seem to have agreed to limit their production to 80 per cent, of their capacity. If this plan be carried out the result will be that some of the mills which have been producing considerably less than 80 per cent.of Llieir capacity will increase their production, while other mills that have been running practically at capacity will have to relinquish a proportion of their market. Tn order to ensure the protection of the pulpwood forests from destruction there may have to be r. radical curtailment of the export of pulpwood to mills in the United Statebut such a curtailment would involve international problems not easy of solution.

THE AMERICAN TARIFF. While the provincial Premiers were dealing with the paper manufacturers Mr It. E. Bennett, leader of the federal Conservative Party, made an important speech in Toronto, in which he deplored the sacriiice of the country’s raw material to the maintenance of an ephemeral prosperity. The cure which Mr Bennett would apply were he to win the next general election would be the elaboration of such tariff as would encourage the manufacture of raw materials in Canada. Conservatives point to Mr Hoover’s election to the American Presidency supported h.v a strongly Republican Congress as u further reason for alarm. Never before has a national policy in the United States been so directly aimed at Canada as the tar iff policy on which Mr Hoover was returned, and which he put into force as soon as possible after his inauguration. The New York Times commenting on this situation observes:—“By retaliatory duties on American muniifaciured goods Canada has it in her power to injure us perhaps more than wo can injure her.” However unnoiglibourly such a though might be, it is not use attempting to disguise, the fact that Canadians are not satisfied with the way in which new bricks arc added from time to time to the United States tariff wall in order to shut out commodities from Canada. They have not demonstrated thoir feeling yet. either by retaliatory measures or by seeking elsewhere such goods as must he imported. The Washington authorities could have little fault to find if .'they did. Imperial consciousness in

trade affairs is asserting itself gradually and when-Canadians are fully roused to tlie desirability of giving first, preference to countries within the Em piro, the American tariff will help them to transfer llieir patronage without serious heart-burnings. Meanwhile tlie Federal Government has announced that after February 1 British good entering Canada must be 50 per cent., instead of only 25 per cent. British made (to enjoy the Canadian tarifi preference.

INDUSTRY AND AGRICULTURE A significant conference was held in Toronto last week between representatives of agriculture and other industries throughout the Dominion. Every province of Canada was represented, i by their .Ministers of Agriculture. Officials of tlie Canadian Chamber of Commerce were represented from as far east as St. John and as far west a:Regina. The object of the conference was to demonstrate the sympathy of industry with the agricultural viewpoint- and its willingness to co-opera to to promote the prosperity of the farm I he conference did little beyond the endorsement of research as a means of increasing productivity and reducing farm costs. However, it was credited by .Mr Mortherell, the Federal Minister of Agriculture, with having inaugurated a movement which would substitute mutual confidence between farmer and bsiness man for the tendency of suspicion which had prevailed hitherto. Several questions of nation al import affecting the better relations of agriculture and the other economic interests of Canada were discussed, particularly how boards of trade and Chambers of Commerce might assist in co-ordinating rural with urban interests. Among suggestions made were the organising of seed growing competitions and sheep and calf raising contests through boys and girls’ clubs. It was further . indicated that one of the problems of agriculure in. Canada was the cost- of distribution and the reduction of the costs of production. The need of greater support for agricultural colleges in Canada by business men and tlie provision of scholarships for students taking up agriculture as ail occupation was urged by evoral delegates. The need for attention to agricultural education was particularly emphasised. It was further pointed out that the processing of ag ricultural products could be carried further, particularly the poduction of potato starch and of evaporated fruits and vegeables. The question of co operation between agriculture and-oth-er economic, interests will he considered with the agricultural organisations and associations and the commercial organisations of the Dominion in a larger conference, which it is proposed to call together under tinauspicos of the Canadian Chamber of Commerce, probably in the spring of next vear.