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. SATURDAY, DECEMBER 18, 1948 THE DAILY TIMES-GAZETTE FEY Pare, PAGE NINETEEN | Potatoes And P And Protection ¥ (By wiltrid Begleston in Satur- day Night) Recent government action over the potato surplus of New Bruns- wick and Prince Edward Island may appear at first sight to be of limited concern to the average urban reader in Canada, but it raises a series of questions of wide and deep rt. vr , an embargo has been slapped on to our sales of table-stock potatoes to the United | dian States, and this has occurred at a time when Canada is banking heavily upon the hopes of expand- ing exports to the United States, and is talking of new negotiations for a trade treaty, possibly a ten- ear agreement, this time, like the Listorte one of 1854. Does this latest incident mean that while one branch of government in both- countries is moving toward freer trade, another section is driven toward greater restrictions? Are agriculturals price-support pro- grams a typg' of production sub- sidy which necessitate high protec- tion for gHeir successful operation? Ma Sov like the United States attempts to support both multila- teral freer trace and such domestic price-support programs, how will the clash be reconciled? The incompatibility of free im- ports of commodities with price- support programs came out jn the potato incident. The official, re- lease of the Canadian Department of Trade and Commerce reported that: "The United States govern- ment has contended that the large volume of Canadian potatoes arriv- ing in their principal markets tender to render their price sup- port program ineffective." A Fantastic Price? What was happening was this: the United States government was supporting the price of potatoes at a formula called "90% of parity." This turned out to be a fantastic hit ox 1 be $210 4 hulluired Toe. eally a fantastic price for a com- ty which is 80% water! Natu- Tally enough there was alarge acre- age in the Uuited States, and there happened also to be a good harvest. The result was troubleenough in the United States without any im- ports the U, 8S. government was-- and is--stuck with mjllions of sur- plus potatoés which it is com- mitted to pick up although it will , have endless trouble in disposing of them. Added to these domestic problems was the spectacle of heavy inflow of Canadian potatoes from New Brunswick and. Prince Edward island. Under the latest trade agreement with the U. 8S, Canada enjoyed a quota of 1 mil- lion bushels table stock and 2% million bushels of seed potatoes at one-half of the old tariff, i.e. 87%. cents per hundred pounds. The US. price was so attractive, how- ver, that even then the quota was exhausted and Canadian potatoes had to pay the full 75 cents a hun- dred pounds plus freight, the US wag still a better market than any- where else in the world and the "movement, continued to be very heavy, The alarming prospect was that the United States treasury would have to pick up almost the entire Canadian potato surplus at a fancy price and thus have an extra eigh- teen or twenty million bushels of potatoes to give away, destroy, or utilise in some uneconomic man- ner. The US. accordingly debated drastic action; Canada beat them to it by clapping on export con- trols here. That is the essence of that part of the story. In a sense the whole thing is only a temporary incident arising out of an abnormally high and in a way indefensibly high price-sup- port for potatoes in the United States, but it is interesting for its implications. The old patterns of trade between countries obviously break down when domestic price support or are thereby threaten Sones. of the US. potato mar- ki now driven Canada to a price-support program of its own, and this raises further questions. Just what has the Canadian gov- ernment undertaken to do about the potato surplus of New Bruns- wick and Prince Edward Island? And does this start Canada off on anothe. expensive and troublesome program such as we got into with wheat in the 1930's, or Brazil, for example, with coffee in the same era? What will price-support of Maritime. potatoes cost the treas- ury? In the long run wouldnt some other method of relief be cheaper What will the Maritime farmers do with the surplus pota- toes they will, in effect, be paid for and then allowed to keep Isn't there some better use that the po- tatoes could be put to than to be allowed to rot on the .ground in PEI or the St. John Valley? What about dehyration? . What about starch, Or. industrial alcohol, What 'about the starving. Europeans, Chinese?" mand consideration, although they cannot be 'extensively discussed in a short article. Some of them can- not be answered yét in any event. Potatoes are' grown right across Canada, but the two main surplus areas are Prince Edward Island and a section of New Brunswick. Of Canada's total acreage of scy 50,000, PEI. plants a tenth, or 80,000 acres, while New Brunswick has about 656,000. In most of Can- ada, potato-growing is either an incidental activity with small bear- ing on the total economy, or the market is adequate and close oi band. In the two Maritime potatoes are the vital cash in Just as & are in the Okanagan. The wh economy of the PEL and the New potato areas is built on the specialized production and sale of high grade table 'and seed potatoes, a large investment ds involved, the soil is not suited other kinds of agri- culture: any time there is no market for potatoes, the region faces destitution. Another parallel is the exclusiysly wheat country of | tchewan, where it is | wheat or | The Mari potato region has : been doing pretty weil.lately, but this year it faces trouble. Canada as a Nile i Roadie an _exs ceptiona ¢rop, 18 million bushels above the. five year average. The ceéntral-Canada markets on which the Maritimes normally rely are pretty well glut- po- a large $19, and the whole a States has x The "hm surplus. Had" it not been for 'American prioé-sup- port policy" wilish enabled Cana- for a time to sur- Han the tariff barrier, would have béen closed of taking care of Canada's 1948 surplus, Adding it all up the surplus or export areas of the Maritimes were faced, as soon 2s it became appar- being | ent that either we or the U.S. were going to close the door on massive shipments across the border, with the . virtual certainty that they were going to be unable to dispose of their entire crop, that next spring would find them holding millions of bushels of a perishable 'commodity without any market at any price in sight. ..Otthwa decided under the cir- cumstances to use the power still held by it under the Bill for the Support of Prices of Agricultural Products during the transition from War to Peace to build a price-floor under the P.EI and New Brunswick potato farmer. It should be noted that the relief is localized to "growers in the con- centrated carlot shipping sections." It does not apply to the farmer up and down the Maritimes who raises a few potatoes on the side: it is meant for those who rely on rpotatoes mainly or exclusively for 4 living. From eight to ten thou- sand farmers are affeéted, it is estimated. - ' The Farmer Keeps Them The price promised is $1.15 per hundred pounds of Canada No. 1 grade potatoes. 'Farmers in the designated areas who have 'not been able to sell their potatoes this winter will be able to call in. gov- ernment inspectors from April 1 on, and after allowing for deduc- tions for planting, the government will then pay for the remainder » the price cited. Any private sales by the farmer will ne deducted from the sums to be paid him. What the farmer does with the rest of the potatoes is up to him: he can feed them to cattle or hogs, if he wants, or he can plough them back in for fertiliser, let them rot or do whatever he likes. The government does not take. physical possession of them at any stage. Why not apply the old Liberal doctrine of laissez faire, and per- mit the market to correct itself by the well-known automatoc process? The government is acting, it would seem, under the same philosophy as when it attempted to bolster wheat prices. To abandon the potato grower to the current situa- tion would- expose a complex and highly developed agricultura! in- dustry to quick ruin. There is 'a heavy capital investment in storage facilities, the potato growers have no alternative sources of income, the present situation is abnormal and temporary. Those are the ar- guments put forward. It is frank- ly protection, of course, whatever + THE RIGHT PITCH By Alan Maver a) EDWIN. 4 ain 5 CHS, STVOEN 0 Saar MAY a ak iz THE BONYS THE by" Y YANKEES AD the justification may be. Is there any humane alternative? A price of $815 a hundred pounds looks modest enough, es- pecially in contmast with the old US price of $2.70 snd even against the current US price of $1.80. Poy tato growers will naturally dis- pose of all théy gan before next April if prices befter than $1.15 prevail in the open market. Santa Claus To Visit Shirley Shirley, Dec 18--8Santa Claus is coming to Shirley School on Tues- day, 'Déc. 21. A gaod concert is ex- pected also a dance, after which there will be refre ents for sale. Mrs. Earl Tumméfds wishes to thank her many #rjénds and neigh bors and the W.I.ifor their kind- ness to her in her fecent illness. ' Mr. and Mrs: Harold Hodkin called on Mr. and Mrs. Earl Tum- monds onl Sunday. | Mr. and Mrs. Rusell Coats spent a very: enjoyable evening playing 2 PRESCRIPTIONS Quickly and Accurately Filled --- at --- MITCHELL'S DRUG STORE 9 Simoee N. Phone 48 cards at Mr. and Mrs. Henry Ma- haffy's, Mrs. Ella Lyons had a very suc- cessful sale. Some prices were high. One grade Holstein cow went as high as $200. The W.I. ladies sold pie and coffee. Mr. and Mrs. Ray Medd and Elane spent Wednesday afternoon with their aunt, Mps. Tummonds, who has been very sick. Mrs. Allan Moore is home again after spending some time with her sister, who is not very well. "Newport, Essex, England--.._%?)-- Rev. C. 8. Cain, vicar of Newport, holds a Sunday night harvest festi- val service a tthe White Horse Inn, near his church. Harvest hymns are sung. Flowers, fruit and vegetables are put on the tables beside the customers' drinks in the crowded bar, THE FIXIT SHOP 156 Gibbon Street Electric & -Oxy-Acetylene Welding Gunsmiths, Locksmiths, Keys Made. Motor Bikes and Outboard Motors overhauled. Skates sharpened. "If It Needs Fixing, We Fix It" ORNAMENTAL RAILINGS CUSTOM MADE Phone 4698R THERE IS N For PAID Circulation When you want to reach the Public with your advertising THE OSHAWA | SHAVE WIT "has a Net Paid Circulation for Nov. 9,138 The Times-Gazette is a Merioer of the Audit Bureau isa : SUBSTITUTE FOR BUTT Metage! ! of Cirlulations! ! H SUBSTITUTE ES-GAZETTE Europe Makes - Good Progress 41 - The Bank of Nova in the ment has heen geared to European requirements, Canada needs Euro- pean markets. As a country whose prosperity depends on the ability to buy and sell freely in the mar- kets of the world, she has a still broader interest in the recovery of first of two articles on "Recovery in Western Europe," states that considering the staggering difficul- ties and losses resulting from the war, European recovery in the past three years represents a remark- able achievement. The initial article, in the bank's Monthly Review, issued today, states that on the whole, recovery has been more rapid than after World War I despite much greater destruction and dislocation. Pro- duction this year has practically regained pre-war proportions; after World War I it was 1924, or more than five years, before the same stage was reached, the bank ger clares. _ Considerable progress has also been made in building up exports. Britain's is the most siriking (record in 'this regard but some such as Holland have also made other countries, and Sweden, notable gains. Nevertheless, the Review points out, Europe has obviously a long way to go before it can pay its way and re-establish satisfactory economic conditions. 'Though it has been fairly well controlled in some countries, inflation is still impeding the effective working of the economic system. The big problem is to build up production so as to increase exports further and to add to productive capacity while at the same time providing tolerable living conditions. As the persistence of inflation demon- strates, output at present is c.early insufficient to achieve these ends. The European Recovery Program, with which the next Review wiil deal, is essentially an effort to give Europe some latitude to &c ahead with much-needed reconstruction and to make progress in reducing its large trade deficit. There are few subjects of greater importance to Canadians than the recovery of western BEur- ope, says the Review. As a trading nation, much of whose develop- | what has been and still is the key area 1 nany international system | of trade', Her interest goes even deeper, for it has become increas- ingly clear that prospects for peace depend heavily on establish- ing healthy economic conditions and greater unity among the west- ern European democracies. The Review discusses briefly the gigantic task of European recon- struction--a task which, it main- tains, has been consistenly under- estimated on this continent. In addition to its immense toll in human life and suffering, the war caused heavy destruction of phys- ical capital--of homes, farms, fac- tories, railway and port facilities, Such losses were the direct and visible results of the war. ((weuschoLo APPLIANCES SALES AND SERVICE GENUINE BEATTY PARTS AUTHORIZED DEALER (sELOW) Qi! Change call us for inspection if you have TROUBLE we come on the pouUsBLE Phone 3800W BIDDULPH Asreonries JRSTY onaren 68 SIMCOE 8T. N. "Look for the Store with the Yellow Front" ! | I © AUTOMOBILE UNDERCOATING ® STEAM JENNY CLEANING POWELL sx" SALES North Oshawa Phone 4694) y, 1! , / GC 0) ' "Oshawa's Smartest Children's Shoppe" 42% Simcoe N. Phone 1571 FOR RENT RADIOS WASHERS REFRIGERATORS SUN LAMPS ELECTRIC FANS RANGETTES ELECTRIC HEATERS VACUUM CLEANERS FLOOR POLISHERS 24 A 10] 40 J od WER 4 24 230 MEAGHERS ELECTRIC PHONE 4600 There are bargains galore -- on The Times-Gazette classified page. 'Brantford Roofing and Builders' Supplies McLAUGHLIN COAL & SUPPLIES LIMITED Phone 1246 STAFFORD BROS. Monumental Works Open Every Day And Evenings Phone Whitby 552 318 DUNDAS ST. E. WHITBY Estimates given for installa- tion and servicing of THE WASHER 'NOW AVAILABLE AT RADIO and ELECTRIC -- Expert repairs carried oud by experienced, factory traine ed men, : ~ Just give us a call 736-J 78 Simcoe N. = SUPERMAN Roundabout \ By Wayne Boring SUPERMAN! 1 CAN uid Avi THE NIGHT A BLINDING, SWIRLING BLANKET OF SNOW SLENTLY PELTS THE HILL6= WOLF-PUP, TAM INA PICKLE! JEST BECAUSE I GIVE THE SCALPS ©' THE TWO KICKAPOOS T KIT, TO CAMPER, I THOUGHT You WELL-ANYTHING MIGHT BE INTERESTED IN " 8R=DID HE? WELL=)\ N | THAT NATURALLY I'M FOR QUESTIONING KENT ABOUT HIS \ CURIOUS, BUT~ i», cs MOTIVE FOR KIDNAPING YOU. 7 Re" HE SURRENDERED TO THE SHERIFF TODAY. Mz Sit 1 So H Er on You CT HERE \ at \\ LUS Al A TAKIN Re AN Nil ME ¢ THIS ore | THE WAY TO gan THE JAIL! bE" ny \} VI ims By Mel Graft FOREST HAYE DIFFICULTY IN MOVING ABOUT BY MORNING, GVEN THE CREATURES OF THE LUCKY I SNOWED IN TILL SPRING! GOT THE PROVISIONS IN AND THE FIREWOOD CUT! NOW, IF ONLY T DON'T 687 BORED WITH MY OWN COMPANY .... Cape. 1948, King Fostires Syndicate, tac. Wasbd rights reserved - o-oo NE MAKES ME A PRESENT © AN INJUN GALT" MARRY AN' IF I DON'T GO THROUGH ATH IT, ATLL BE A DEADLY INSULT TO TH WHOLE TRBE- Y -=AN'MY SCALP'LL HANG FROM TH' TRIBE'S VICTORY POLE ALONG 0' THOSE OF TH' SLAIN KICKAROOS ~~ JEST WHAT CAN I DO. "By Norman Marsh ALLO/-T AM RIPPLING WATERS GREAT CHIEF SEND ME FOR MARRY YOU--ME BE YOUR SOUAW- onayes THE CHILDREN ARE ALL SAFE, THANK GOODNESS + BUT THE BUILDINGS ARE GONE. " NO. IT WAS MY LIFE'S WORK. To BUILD THESE. WE HAVEN'T ENOUGH INSURANCE ~THIS ISA POOR COUNTRY « THOSE KIDS NEED SO MUCH «AND NOW ve A FORTUNE, A HALF-MILLION AT LEAST~~ HOW MUCH WOULD YoU NEED To BUILDF COPE 1998, KING PRATUKES *YNDICATE. for. MAYBE 1 CAN Your By Alex Sayan THE SINISTER DOING HERE® BY JOVE! MRS, VAN DOON'S PLAYMATE ! WHAT ARE YOU DOING HERE® . 0 ebay PS om ND, He A