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PAGE EIGHT THE DAILY TIMES-GAZETTE MONDAY, JULY 5, 1948 E.R.P. Big Help As Canada Bids For World Trade By FORBES RHUDE Canadian Press' Business Editor The story of Canadian business in the first six months of the year is the story of international af- fairs. Coming out of a prosperous 1947, business faced a year in which world demand was as high as ever, but with its effectiveness threaten- ed. Britain and Western Europe were unable to regain their feet in the ruins left by war and needed a hand, else they could not continue to buy; and thus Canada, in the very midst of prosperity, was in peril of losing a major part of her export markets. The gloom that might have exist- ed was relieved by the fact that the United States Congress was con- sidering the European Recovery Program and there was good indi- action that it would pass. It final- ly was signed into law Apri] 3, and Europe, for the time being at least, is able to buy and Canada to sell. ERP. however, is no cure-all; it just allows things to continue to operate instead of -breaking down. European countries and sterling areas in general still have to hold down on what they buy from dollar countries and Canada's sales to sterling areas have suffered to some degree. The crash that threatened has been delayed and may be put off indefinitely if ER.P.. amd other measures adopted by various coun- tries are able to set trade revolving of its own momentum. Perhaps the greatest danger lies in any loss of faith among the countries now co-operating. Three Big Factors Canada's business this year, as in 1947, has three main factors: 1. ex- ports; 2. domestic production to catch up with things Canadians weren't able to buy during the war and post-war shortages; 3, expan- sion of industry to produce more goods for both exports and home use. This expansion to produce more goods is perhaps the most striking factor in the immediate Canadian economy. More than $2,000,000,000 was spent on it in 1947 and still more 'will be spent this year. It il- lustrntes the value of the export 'trade from which Canadians, di- rectly or indirectly, draw one-third of their incomes, for capital expan- sion can't be continued unless ex- port trade is maintained--because exports in large part pay for the expansion. Also, Canada is ex- panding production more than her population can use and the export market is needed to absorb it. Actually Canada has been taking in nearly as much of the world's production as she has been sending out. This ran her into difficulty because she was selling agricultural and raw materials to Europe and buying goods for her capital expan- sion from the United States. Final- ly she had to make restrictions, but nothing like what would have been necessary if ER.P. had not enabled a fair amount of dollar revenue from Britain and western Europe. Canada continues in the process of putting herself into a position to become a tremendous world trader. Whether or not she fulfills her hopes depends upon the selling job her industries now do and how firmly they establish -markets for the future, and also, of course, on world recovery. Considerable optim- ism may be found in the amounts of goods, from caviar to locomotives, which she is sending out to all parts of the world. Traditionally A Buyer Corollary to being a seller is be- ing a buyer, and this Canada tradi- tionally has been; for to raise her standard of living she needs the goods of other countries in ex- change for her own. : Her objectives seem to be a near- er balance of trade with the United States, so as to lessen her economic dependence on that country, and a widening trade with the rest of the world. To balance her trade with the United States she plans to try to sell more there and make things herself which -she formerly got from across the border. These re- directions of trade can have wide-~ spread effects throughout business and in individual cases may cause disturbances. A factor in current prosperity of- ten overlooked is that the Canadian population has fad a relatively large percentage increase in the last decade or so and has been estab- lished on a higher standard of liv- ing, with a consequent growing home market. There still is a long way to go and a steady flow of se- lected immigrants is widely advo- rated. As part of her capital expansion program Canada continues to push back her frontiers and further open perous, operating at virtual capa- city, and earnings in 1948 continue high. Early-year forecasts of a re- cession have receded. Nevertheless, costs of operating business and in- dustry are rising and many business men wonder how long present pro- fits can stand up. The cost-of- living index is at an all-time high and there are many factors that can cause further inflation; but there are also considerable defla- tionary influences to temper them. Failures Increase Individua] casualties occur as shown by an increase this year in business failures, many of them relatively new concerns which for one reason or another found treacherous currents in the present buoyancy. High taxes are a grievous point with businesses and indidivuals; business seeing them as unduly pen- aliing the rewards of enterprise and threatening the supply of ven- ture capital needed in a young country and individuals seeing them as one of the contributors to the high cost of living. On the other hand the government regards taxes as necessary to the reduction of debt in order to keep the total money supply within bounds and so prevent inflation and further high prices. It further argues that only with debt reduction is capital expansion possible. Power shortages last winter caused upset and spring floods have brought tragic loss to British Col- umbia and the Prairies. Some developments of the year: The Bank of Canada Jan. 5 and again Feb. 27 reduced the price at which it would buy government bonds, thus increasing interest rates slightly. Freight rate granted March 30. The Canadian International Trade Fair, first of its kind in North North America, was held in Toron- to May 29-June 12. Thirty-two countries exhibited and Canada showed her goods to thousands of buyers from all over the world. increases were Sanctuary In Eastern Ontario Is Established Belleville, Ont.--(CP) When Herb McKnight was a boy he saw the results of indiscriminate timber slashing in the headwater regions of his home 35 miles northeast of Belleville in Hastings county. Wildlife disappeared as marshes which had supported beaver and muskrat were flooded in spring and dried up. in summer. Vegetation also died and near wilderness re- sulted. McKnight watched this and re- solved to do something about it. By the time he was able, he had reached the age when most men think of retirement. In the interim he had moved with his parents to Northern On- tario tnd farmed. He then tried successively prospecting, lumber- ing, selling, acting and, when war broke out, he left a Toronto lumber company to inspect R.C.AF. equip- ment. When he left this job in 1945 he felt the time had come to put his plan into operation. He returned to Hastings county, . bought 4,000 acres of wasteland and set to work to turn it into a sanctuary for birds, animals and fish. McKnight has had remarkable success. Dams built by him across tiny creek beds have formed mine permanent lagoons, where beaver, muskrat, ducks and Canadian geese have reappeared in great numbers. McKnight's work has been lent unexpected aid by the beavers, five of which he obtained from the On- tario government and liberated shortly after beginning his sanc- tuary.* They have started to build dams of their own which impound spring flood waters and prevent fa- tal drying in midsummer, Not an unimportant part of the sanctuary plan is reforestation. So far, McKnight has put in 6,000 young pine. He has also restocked the rivers and lagoons with fish. Deer in the area have become quite tame and bird life has in- creased rapidly. Many species are to be found nesting within a few yards of McKnight's old frame BACKACHE er Enters Alaskan Service New Lin Canada's latest cruise liner, the S.S. wd "Prince George" built for the Canadian National Railways Vancouver- Alaskan service, which left on her maiden voyage to Skagway yesterday. The largest ger ship ever built on Canada's west coast, the "Prince George" will operate in a series of ten-day cruises in Canadian National Steamships' service from Vancouver to Skagway every ten days throughout the y and in months will make its northern terminus at Ketchikan, Alaska, It is 350 feet in length, has a gross tonnage of 5,800 tons, with a speed of 18 knots. farmhouse which he acquired with the land. The project has attracted , the favorable attention of the Ontario department of planning and de- velopmet which has sent experts to | raise cattle next year and possibly survey the results. ; sell some frogs' legs. One thing, McKnight is uncertain where he | however, he is sure of--there will will secure the revenue mecessary!be no hunting in the area. He to continue his project. He will | says it will always be a sanctuary. I British Program For Coal Export In The Balance By STUART UNDERHILL Canadian Press Staff Writer LONDON.-- (CP)-- Britain's coal production program is in difficulties again and houeholders are being asked to help eke out supplies. Appeals have beén made for sav- ings in electricity, which is almost entirely generated by coal. Elec- tricity consumption is up sharply compared with last year, and Fuel Minister Gaitskell recently warned this "really must not go on." His words came as a shock to con- sumers, who had been cheered by large stocks carried over f- Tag year's mild winter, There were ene ough supplies to permit eig.... vo ough supplies to permit exports to be resumed, but recently production has sagged, and there has been an increase in the consumption of "large coal," which is the kind that the export market wants. Savings had to be made and pro- duction increased, Gaitskell said, if the coal export program of 16,- 000,000 tons for 1948 was to be reached. He expressed concern about the output of ~ deep-mined coal, which had been expected to yield 200,000,000 tons of the year's 211,000,000-ton target. "There have been ome disturbing tendencies in the figures both for coal production and consumption in the last few weeks," he told a press conference. "The whole outlook is not o good as it was." It had been hoped that production in the five weeks following May 1 would be 19,200,000 tons, but it had been only 18,600,000. Manpower in the mines had not increased, out- put per manshift had declined and attendance--which always drops in winter because of illness--had not improved. The only bright spot had been an increase in the production of open- cast coal, mined from shallow work- ings near the surface. The 948 tar- get of 11,000,000 tons might be ex- | ceeded by as much as 2,000,000 tons. Gaitkell said that if the target of 16,000,000 tons for export and bunk- ers was to be reached, weekly ship- ments would have to average 350,- 00 tons. They were running about that now, but had to be maintained to make up for' low level shipments earlier in the year. "Achievement of the coal export program is in the balance and nothing but a sustained effort on the part of all concerned can bring us through," he said. The Financial Times underlined the seriousness of the situation in a editorial in which it said: "The main impact of any failu. to attain the 1948 target of 211, 000,000 tons is likely to be on the export program. This program is one of the pivots on which the struggle to balance our overseas payments turns. If we fail with coal, we may well fail altogether." CHARGES OVER-SPENDING - Warwick, Egland, July 5--(Reu- ters) -- -Anthony Eden, deputy leader of the Conservative Opposi= tion, said Saturday the government was seriously over-spending. "If | we are still falling short of the su- | preme national effort required, the | fault lies with the government who | hamper, confine and distort our national economy," he told an ope | en meeting. Beautiful, ®isn't L) WK new cae ...6its the LOW PRICE FIELDS it? Long, sweeping lines. A solid, substantial look. Only 63 inches from road to roof line. The new Meteor is the very picture of surg Of life gwonps awa brisk a rocket! y up any hill. ing power, and elegant grace. Lots of room everywhere. Ex- ceptionally low floor; wide doors. Rear seat 60 inches wide. Rich upholstery. Dis- tinctive trim and fittings. The new Meteor y from a dead start, breezes A grand car to drive, to ride in. See it now--this sen- sational new car in the low price field. The Meteor offers wonder- ful ease of control. ""Touch- control" steering, "Tip- toe" braking. A pleasure to drive. Beautiful instrument anel, illu- minated with "black light", has instrument cluster directly in front of driver. New 100-hp. V-type, 8-cylinder engine gives smooth power with economy. Riding in Meteor is smooth, restful, vibra- tionless. Independent front wheel suspen- sion with aero-type shock absorbers. Coil springs in front. . . long, longitudinal rear springs. Fresh air at the touch of your finger with Meteor's For wide-open visibil- ity, Meteor has an al- most unbroken sweep of safety fjase=mfroni, sides and rear. dual-duct, built-in ventilation systems Trunk has 19 cu. ft; of usable luggage space. Spare tire can .» be reached without 'disturbing luggage. up her raw materials. Oil com- | panies are pouring millions into | vestern Canada; newsprint, Cana- | fa's greatest producer of United | Btates dollars, is making produc- | lion records; the search for and de- | velopment of mineral wealth goes on from Labrador to the Northwest | Territoties; and new power sources | ire being harnessed. Altogether fhe economy is in a virtual state of explosion. 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