CANADIAN BUSINESS

Wairarapa Times-Age, 29 May 1940, Page 2

CANADIAN BUSINESS

CONTINUED EXPANSION SHOWN. SURVEY OF THE POSITION. MONTREAL. “The winter season now closing can show a more satisfactory record for the physical volume of Canadian business than any of its recent predecessors, and there is evidence of continued expansion as spring activities swing into their stride,” says the Bank of Montreal in its latest monthly summary of Canadian business. The purchasing power of the public remains good. The large demand for spring clothing and heavy orders for military purposes resulted in garment-making plants operating at a level 25 per cent higher than a year ago, the report continues. The primary textile plants, which are all operating at a high capacity, are benefiting from curtailment of foreign competition. In the industrial field generally, the progressive enlargement of activity under the stimulus of war contracts continues, and it is forecast that before the end of this year the total war orders placed in Canada by the different governments will easily exceed 500,000,000 dollars. The iron and steel industries are busy; the aircraft factories are all operating at full capacity, <and in some cases are enlarging their plants; and the aluminium industry is assured of prosperity for a long period as the result of the conclusion of an agreement whereby the British Government has undertaken to buy, for the rest of 1940 and the whole of 1941, all the Canadian output of aluminium which is not required for domestic needs or the meeting of prewar commitments. Canadian shipbuilding yards and the industries which supply ’ them with materials are making plans for their greatest activity in 20 years as the result of the receipt of orders for a variety of war vessels. The returns pi the two railways are showing improvement.

The extensive work on the numerous establishments required for the British Commonwealth Air Training Plan should keep the building trades in many places well occupied throughout the summer, says the review. Good gains were registered in the exports of wheat flour, lumber, woodpulp and newsprint.

The recent general election in Canada does not seem to have had any disturbing effect of serious extent upon business. the report says in conclusion. “The war continues to be the dominating factor in national activity, and as long as it continues Canada’s economic life will be organised for the purpose of making the largest possible contribution to the Allied cause."