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U.S. , Canada Try To Check Inflation In War Material Costs Canada's Economy Will Become More To International Events Canada's economy will become more, rather than less, sensitive to international events says the cur- rent issue of The Canadian Bank of Commerce monthly Commercial Letter. It would be unrealistic to assume that, although the tension has eased, the Western nations can relax and neglect the defence econ- omy we have chosen. Industrial production, in the ag- te, is at a level above that of Restrictions on the use of steel, copper, aluminum, etc. and shortages of certain materials, do not yet seem to have had a very depressing effect on consumer pro- duction in general. Defence pro- duction has not yet moved into high gear and, so far, has caused only te diversion of plant, ma- ls and labour, The mid-year estimate of cap- ital investment projects for 1951 is $4561 million, the largest on record. It is significant that it coincides with a defence program that is expected to absorb 8 to 10 per cent of this year's Gross Nat- ional Product. Compared with last year there have been considerable changes in the proportions allotted to various classes of investment. In the first six months of 1951 con- struction contracts awarded were Just slightly more than twice those for the same period last year. In- dustrial and engineering. awards were, percentage-wise, up sharply at the expense of residential and commercial contracts. Defence projects and resource development were to the fore. The past six months have seen fundaméntal changes in the Cana- dian financial world. Checking the monetary expansion of the past five years was a major development. Its effects have not yet been felt by large sections of the community. Unless a very delicate balance can be achieved between the re- strictive effects of monetary and fiscal policy and the inflationary forces arising out.of a protracted defence program, inflationary pres- sures will continue fo complicate the economic progress of the West~ ern World, If the total of government spend- ing and of capital investment ex- ceeds the total of taxes and savings, only an expanding money can bridge the gap. This would pro- vide the community with purchas- ing power but would not increase the supply of goods. In this sit- uation economy of expenditure by all levels of government, credit resthaint, taxation and savings could assist in the achievement or economic stability. World News In Brief RACETRACK BARBECUE . Darwin, Australia (CP) -- At a special race meeting here, Aus- tralians drank 4700 bottles and 16 kegs of beer and ate 300 pounds of buffalo steak. SAVED BY A LEG Theunissen, South Africa (CP) --When lightning struck farmer Helm Venter here, his artificial leg conducted the flash into the ground and saved his life. Two Alcan working with him were ed. HANDY THEATRE BED London (CP) -- Actor Markey Robinson of Belfast arrived in Lon- don but dn't find a place to stay and other actors offered him the used in their play at the Ambassador's theatre. So Robinson slept on stage in an empty theatre. DANGEROUS SEEDS Nottingham, England (CP) Doctors were puzzled when two eight-year-old girls were found staggering along a street in a dazed condition,' Then one mut- tered something about trees and seeds and it was discovered they had been eating laburnum seeds which are poisonous. NEWSPRINT CASUALTY Guernsey, Channel Islands (CP) -- The Guernsey Star, a daily newspaper established .in' 1813 which carried reports of the battle of Waterloo, has ceased publi- cation. The reason: Rising cost of newsprint. AIR-RAID PRECAUTIONS London (CP) -- Air-raid sirens are to be put ihto commission again. Geoffrey de Freitas, home office under-secretary, making the announcement, said the world situ- ation has reached a point where such precautions are advisable. JUTE IN DEMAND Karachi (CP) -- Foreign buyers are queueing up for Pakistan's jute. Already, orders have been received for 4,500,000 bales out of a total quota of 5,100,000 bales ear- marked for foreign buyers (ex- cluding India) from next year's crop. OSHAWA 'THE DAI Combining The Oshawa Times and Whitby Gazeste -9 LY TIMES-GAZETTE VOL. 10--No. 174 * OSHAWA-WHITBY, THURSDAY, JULY 26, 1951 PAGE THIRTEEN Ontario Spotlight REMOVE OLDEST BUILDING St. Thomas (CP) -- Wrecking crews yesterday began tearing down the oldest building in St. Thomas to make way for a car lot. The building -- about 125 years old -- attracted the attention of the On- tario Architects Association several years ago because of its pioneer construction. LS SE FIND ROYAL GIFT Hamilton (CP) -- A gold brooch given by King Edward VII to his nurse was found on a city street Tuesday. The cen- trepiece contains two inter- twined locks of hair which are believed from King Edward, then Prince of Wales, and his princess. 'Police will release the brooch when the owner is iden- tified, * bb HEADS CLINIC Hamilton (OP) -- Dr. Lloyd S. Green has-been named director of the Hamilton clinic of the Ontario Cancer Treatment and Research Foundation. He succeeds Dr. A. E. Walkey who retired recently after serving 32 years as director of ra- diological work, LT HARVEST BEFORE JAIL Dundas. (CP)--Reginald Re- gan, Ancaster township farmer, will be permitted to harvest his crops before going to jail for drunk driving. "The country needs food," said Magistrate John E. Robinson, granting the delay of sentence. , * + SHIP ON LAST VOYAGE Kingston. (CP) -- The Rapids Prince of Canada Steamships Lines left here Tuesday on its last voy- age. The proud and gay ship, which plied the treacherous waters of the St. Lawrence river for the past 41 years, is being towed to Hamilton for scrap. $ +B SEEK SAFETY C-J NOT FINES Caledon, Ont. (CP)--A speed trap in this quiet village 28 miles north of Toronto has nab- bed 391 motorists since June 1. But it isn't a hick town trick to fatten its bank roll on outside motorists. "The council is not interested in the money from 'Quebec Village. Is Site of Reported "Miracles" Crowds of crippled, sick and just plain curious people are thronging the Quebec village of Ste. Marguerite, anxious to experience the reported miracles accomplished by Sister Ann Felecite, a Gray nun. Many persons afflicted with arthritis and nervous disorders claim to have been miracu- ously cured by Sister Ann after medical doct s had pr d them beyond hope of recovery. This view: shows one day's crowd assembled to be cured and to see cures at Sister Ann's residence. New Currency May Be Tried By Airlines Montreal (CP) -- Western world currencies--such as the general- ly-accepted dollar or pound --may be supplanted by a new, over-all currency known as a kilometig when it comes to settling accounts between trans-Atlantic airlines, the International Air Transport As- sociation announced yesterday. The idea was first given a work- out, in an effort to overcome de- lays in settling accounts in these days of a general dollar shortage, during the first five months of this year when intra-European flights tried the scheme. Its success caus- ed TATA to approve a "trial run" of the system on the North At- lantic as well, Arthur J, Quinn-Harkin, manager fines," Reeve Jack Scott told Wednesday. "We are only inter- ested in making the village safe." o -9 of the TATA clearing house which is conducting the experiment, said that Air France, British Overseas Airways Corporation and Pan Am- erican Airways are expected to try the new system. Training of Doctors Is Hit By U.N. Group Geneva (AP) -- A virtual revo- lution in the training of doctors is suggested by the World Health Or- ganization of the United Nations. A report published by WHO sharply criticized present medical and nursing education methods throughout the world and urged that doctors should learn to pay as much heed to the welfare of the community as to that of the indivi- dual. The report was prepared by a committee of experts meeting here under WHO auspices to examine present medical training methods in the light of modern needs. Extend Time Limit On Seamen's Cards Ottawa (CP) -- The Labor De- partment announced an extension sil --Central Press Canadian Photos. Romeo Le Fevre is one of many persons who have left their crutches behind at Ste. Marguerite after see- ing Sister Ann. Doctors offer no explanation of the "miracles," say the cures are most common among those affected with nervous dis- orders and their consequences. of the time given Canadian sea- men to obtain a "regular sea- man's card" under the Great Lakes security regulations. Under the regulations, seamen serving on the Great Lakes are screened for security purposes. No seaman without a card issued by a National Employment office is to be allowed to work on a lake vessel. Regulations previously required that seamen have cards by Aug. 1 but Wednesday's extension gives thet until next Dec, 31 to obtain em, fence production. conferenoe, attended by C. D. Howe, Canada's defence production minister, and four of his advisers, is understood to be a direct out- growth of United States concern over recent price increases of Can- adian essential materials. A U. 8S. economic stabilization authority told the Canadian Press in an interview that the U. 8. "holds no suspicion" of Canadian pricing tactics. Nevertheless, he said, there is growing concern over the way the price of Canadian aluminum, nic- kel, copper, zinc and newsprint has recently jumped. '"We in the United States are try- ing to hold the price line on sul- phur and cotton and other items," he said. "It is only fair to expect that Canada does the same." He felt certain some way would be found to forge a closer working relationship on prices between the two countries. The meeting was called by Charles Wilson, U. S. defence mo- bilizer. Howe has contended that though Canada, through its huge produc- tion, can set the world price on such items as newsprint and nickel it does not set the world price on a host of other defence items pro- duced by the U, S., British colonies and other areas. Nevertheless, he declined to meet the request of the U. 8. to suspend the 310-a-ton price boost in', Can- adian newsprint which became ef- fective July 1. Sharpest criticism of that price jump came from Michael V. DiSalle, U. 8. prices stabilizer. « It is understood DiSalle suggest- ed to Johnston and Wilson that de- velopment of 'some new agency should be studied so that there would be closer liaison between the considers allowing increases in the price of defence or other essential materials. One way the U. 8. has suggested this could be done is through the possible expansion and revitaliza- tion of the Canada-U. 8. joint in- Confer On Plan To | Set Up Machinery To Hold Price Line Washington (CP)--Canada and the United States will seek new ways today of holding back price climbs in esgen- tial materials which threaten the vast rearmament programs of both countries. High-ranking officials will confer on the possibility of creating new administrative machinery to bind the two countries to a common anti-inflation policy on de- This latest industrial mobilization ¢ two countries, whenever either one dustrial mobilization committee. - Today's discussions actually mark the first meeting of this com- mittee since it was used to develop the famed Canada-U. S. economies pact to pool resources for defence against aggression. The pact was signed here last Oct. 26. One hope behind the pact was that it could be used successfully to fight inflation affecting defence production, as well as to «control allocations and priorities of essen- tial defence materials and to divide them "'equitably" between the two countries. Joint allocation and priority con- trols actually now are in effect, But there still is no smooth-work- ing international machinery to con- trol prices. 4 Protest Hike In Rent Hike Toronto (EP) -- The provincial executive of the Ontario Civil Ser vice Association yesterday wrote chairman Louis Cecile of the One tario rent committee, protesting against any "across-the-board" ine crease in rents, The executive said that any flat increase would "be the straw that broke the camel's back" as far as the civil service was concerned, Increased cost of living and the upped income tax were cited as difficulties facing the service on their present wage scale. FAST RUNNER The English foxhound, specially trained for fox-hunting, has been carefully bred and reared for more than three centuries. HISTORIC GROUP The Franciscan monks, a ree ligious order of the Roman Cathoe lic church, were established by St. Francis in 1208. 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