The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Cochrane Tory Critical of Relief Methods in | _ North PROGRAM ADVANGKD TO SAVE MLLON IN ONT ARIO FUNDS AUSTRALIA PLAN CITED _ Advocating the conversion bf high--interest--bearing Pro-- Wwincial bonds; the non--pay-- ment of exchange rates to Canadian holders of those bonds which require payment in New York funds; and the purchase of all relief supplies direct from the farmer, manu-- facturer and wholesaler, S. C. Tweed -- (Liberal, Waterloo North) in the Legislature yesterday made a -- series of constructive suggestions which, in his opinion, would save the Province millions of dollars. He also favored a "charity tax" on hard liquor And meals. 'The Government came in for criti-- cism from its own ranks during the rddress of A. V. Waters (Conserva-- tive, Cochrane North). He declared the direct relief policy was wrong and that people would rather work for their money. He then levelled criti-- ciem at the direct relicf administra-- tion in the North, particularly re-- ferring to doctors' fees. Mr. Waters felt that Hydro in the North would bring about gold production in many mines that had been abandoned. Extravagance Charged. Bond Conversion and Direct Relief Purchases Urged in Legislature 'T. P. Murray (Liberal, South Ren-- frew) charged the Government with extravagance in the operation of road camps in Eastern Ontario, and J. F. Strickland (Conservative, Peterboro') declared that the Government in bringing down the moratorium amend-- ments should not lose sight of the fact that many mortgagees were in a worse position than mortgagors. Participating in the debate on the motion to adopt the Speech from the 'Throne, Mr. Tweed gave figures to show how the City of Los Angeles had cut relief expenditures by the method he advocated. He then de-- clared Australia had reduced its ex-- penditures by converting almost three billion dollars; and, finally, declaring that 75 per cent. of the bonds calling for New York payment were held in Canada, he asserted that the time Ihad arrived when the Government should consider the discontinuing of New York payments to such holders. Epeaking on the latter proposal, Mr. Wweed said: "During the past two years this Province, the Hydro Com-- mission, and many of the municipali-- ties have paid several million dollars for the purpose of providing for pay-- ment in New York of interest and maturing bonds. Today the premium on New York funds is approximately 20 per cent. This imposes an impos-- sible burden in addition to the reg-- ular interest. Fortunately, at least 75 per cent. of the bonds calling for New York payment are owned in Canada, and I think the time has ar-- rived when this Government should seriously consider discontinuing New York payment to Canadian holders of these bonds. "However, where the bonds are held by non--residents of Canada, payment should continue to be made in New York funds. It is a fact that the holdcrs of these bonds, calling for New York payment, who are resi-- dent in Canada paid for them in lawiul money of the Dominion, ard in these timecs they should be pre-- pared to accept payment in the same lawful money of Canada. If they refuse, the Government can romedy the situation by legislation," he said. Australia's Action, Referring to the conversion loan, Mr. Tweed remarked: "A short time ago the Australian people found themselves with a national debt of $5,000,000,000, bearing interest at an average rate of 5 3--4 per cent., an impossible burd&sn under present con-- ditions for 6,500,000 people." _ _ . He then told of the "All for Aus-- tralia League," which was formed by two men, and which cbtained ail but nine seats in ths sistor--Dominion's Parliament. "The new Govern nent, which was free from party politics, put into operation a progratri whnich has had far--reaching effects," said the speaker. He then told Hon. March 1. Harry Nixon not to be discouraged, even if he had only five members, and some Liberals applauded. _ _ _ First of all, the speaker explained, tne Australians who owned $3,000,-- 000,000 worth of national bonds, bearing 5 3--4 per cent. interest, were asked to turn their bonds back to the Government for new hbonds of 4 1--2 per cent., the reduction in the total of moneys paid out in interest being 22 1--2 per cent. This appeal was so successful that all the $3,000,000,-- 000 bonds were converted, with the exception of $90,000,000. ThLe next step was a cut of 20 per cent. in the salaries of all civil servants, including railway employees. .Every cther em-- ployed person in the country took a cut of 15 per cent. in salary. Reductions Effected. This was followed by a reduction | of 22 1--2 per cent. in interest totals: outstanding charged by the banks on loans. The amount due in interest to depositors also was reguced 22 1--2 per cent., as was the interest on all mortgages. The reduction in _injterest on the national debt resuited in a saving of $32,000,000 a year. Part of this money was used to give the farmer a bonus on wheat of 9 cents a bushel, which, when taken into con-- sideration with the 25 per cent. dis-- count on Australian money, gives the farmer 72 cents a bushel. The Govern-- ment considered it better to meet its obligations in London by exporting wheat rather than to ship gold. "We have come to the point," said Mr. Tweed, "where members of Gov-- ernments like the sound of the phrase, '"The depression is due to world con-- ditions beyond our control, and we should not be held responsible.' This is true to a certain extent, but mem-- bers of any Government in office to-- day will not be held blameless for their failure to do something to start their country on the way to normal conditions. What is needed is Gov-- etnment leaders with courage to for-- mulate a program and carry it out. Members of the House will be inter-- ested to know what has been done in Australia this last eighteen months, and it is the first country to get its head out of the fog of depression." Purchase of Supplies. Regarding the policy of buying re-- lief supplies direct from the farmer, manufacturer and wholesaler, Mr. Tweed estimated that this plan would save approximately 35 per cent. of relief costs. While municipalities were striving to meet their obligations, and reduce costs, retail merchants were demanding a greater distribution of orders among various stores, he said. Cochrane Member Speaks. A. V. Waters (Conservative, Coch-- rane North), in turn, replied to the Progressive Opposition attacks and criticized the work of the Government | in relief problems of the North. j He referred to the Nixon demand for reduction of Cabinet Ministers' salaries and members' indemnities, and said: "He (Mr. Nixon) must have known that there would be another reduction this year, but did not give the Government a chance to speak." Mr. Waters termed Liberal Leader Hepburn "the extramural Leader," and chastised him for his criticism of a recent appointment of a Supreme Court Judge to the Tariff Board. "If there is one thing in our coun-- try which is above reproach, it is our judiciary," declared Mr. Waters. "And it was left to the most ignorant and bitter partisan, and the only Leader of a political party that I know of to get up and besmirch the Bench." _ Dvi{c--; 'd;oi;réci'_fhat "Hepburn would wreck the whole Hydro organization in order to obtain his own political ends." Gold Mining and Hydro. Mr. Waters then reviewed the gold mining and Hydro relationship in the North. He declared that the previous high price of power had been respon-- sible for shutting down many of the low--grade ore mines, but with Hydro coming in many would be reopened and the gold production increased. He asserted that the entire cost of Abitibi might be paid in one year by the rencwed operation of these low--grade ore mines. us 0 'The member then told of the great relief problem in the Northland, and criticized the Government's policy in paying out direct relief instead of pro-- viding work for the unemployed. He chided the officials who had cut down the fees of the doctors on re-- lief cases, and cynically referred to the regulation which will not allow a fee for an operation. "There is no moratorium in the North in so far as the stork is concerned," he said. Says Whole System Is Wrong. There were some merchants in the' North who had not besn paid by the | Governmont since last October, Mr.} Waters stated, in criticizing the',rule! which forbids the assignment of relief vcuchers to banks. ks 0_ "The whole system of direct relief is wrong; people prefer to work," he declared, stating that it was costing more under the direct relisf plan in his country than under the indirect relief system. & In conclusion Mr. Waters told the Government pointedly that it should consider holding a complete investi-- gation into the colonization work, "to bring it back to the healthy position of a few years ago." Mr. Murray Speaks. "There have been some things said about co--opcerating with the Govern-- ment," remarked T. P. Murray (Lib-- eral, South Renfrew). "I would like to co--operate, but cwing to the ways ard habits of the present Govern-- ment I find it is impossible for me to The speaker then took up the ques-- tion of the expenditures on the trans-- Canada highway last winter, and spoke of the extravagance. "I am a lumberman by profession, and have put in some camps. I constructed one with six stoves for sixty--five men, and later took two out. I went up to see cne camp on the trans--Canada high-- way, and found twenty--one stoves for sixty--five men, and it took 80 cents a day to board the men. td hoi in P Avidllh it ts mia liintr ntoPat y aiatad "The Prime Minister said that the| contractors for the food and equipment | bought the stoves No mattrr who| bought them, the people of Ontario, had to pay for them," he said, declaring | that had a"shantyman"taken charge of ; the work he could have saved $2,500,-- 000. He estimated that the contract-- ing firm made a profit of 30 cents a day for every man they fed. Interchanges With Minister. | Mr