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The Oshawa Sines Published by Canadian Newspapers Limited, 86 King St. E., Oshawa, Ont. Page 6 Friday, July 21, 1961 Unemployment Insurance Or Welfare Legislation? Prime Minister Diefenbaker has an- nounced that a fourman committee with the powers of a royal commission, will study and report on the suitability of "the scope, basic principles and provi- sions" of the Unemployment Insurance Act and its relation to other social security programs. The committee is also asked to recommend whatever new provisions it considers necessary to deal with seasonal unemployment and to correct any abuses or deficiencies it finds in the insurance system. The committee is made up of two insurance company presidents and two economists. Its composition almost inevitably will influence its study, and the actuarial problems will probably receive a great deal of attention. A better balance in the study might be achieved if one of the members were neither an insurance man nor an eco- nomist. This balance is advisable, be- cause one of the questions which must be answered by the committee is whether unemployment "insurance" should now be considered as a contributory scheme of insurance or as a welfare handout paid from the contributions of all tax- payers instead of the lower-wage earn- ers subscribing to the scheme. As originally conceived, the Unem- ployment Insurance Act was exactly what its title implied, an insurance against unemployment for those in the lower-wage brackets. Contributions were calculated to balance payments. But first the Liberal and then the Conser- vative governments changed the Act, weakening the insurance principle and extending the provisions so that now the Act is not an insurance measure at all but rather welfare legislation. Onc2 such tampering started, it was inevitabl= that the Fund that was meant to cover pay- ments would dwindle to and past the danger point. Mr. Diefenbaker does need a committee to tell him all this, but it may be politically easier to use a committee report as a support for new legislation. Government's Big Role In recent years it has been customary to attribute the remarkable economic progress of West Germany to the dili- gence of workers combined with the energy of private initiative. Now North American economists, seeking answers to some North American problems, are digging below the superficial explana- tions of the German "miracle." Private initiative has certainly played its part in the way defeated and shat- tered West Germany took advantage of U.S. and British financial help and the absence of a heavy spending on defence and foreign aid to rebuild its economic structure. But not usually recognized -- and here is a lesson for U.S. and Cana- dian governments -- is the role played by government in providing much of the investment that underwrote the recovery. Karl W. Roskamp, assistant professor of economics at Wayne State university, analyzes that role in the current issue of Challenge, a magazine devoted to economic affairs. To provide investment funds and to make sure they flowed into the sectors of the economy where they were needed --gectors vital to sustained growth but in some cases temporarily unprofitable --the government intervened directly and substantially. Roskamp estimates that between 1948 and 1957, 43.5% of net West German investment was Oil Industry After a period of reduced growth and of pressing marketing problems, the Canadian oil industry has regaired a good deal of vigor during ths past few months. The current monthly re- view of the Bank of Nova Sco'ia notes that thé riew watistial oil policy has had an encouraging response and the in- dustry is enjoying an appreciable quick- ening of growth. Oil exports have shown a marked increase during the first half of 1961 and, based on nominations from refiners in the United States, a further gain is indicated for the third quarter. There is also evidence of some shift towards greater use of domestic cruds in the Fhe Oshawa Times T. L. WILSON, P h €. GWYN KINSEY, Editor The Oshowe Times combining The Oshawa Times {established 1871) ond the Whitby ond Chronicle (established 1863), Is published daily end statutory holidays excepted). Mem Canadian Daily Newspapers Publishers og Canad bres it Bureau of Association. The ian Audi Circulation and the Ontario Provincial Dailies Asso- C oh ~ Offices: Thomson Building, 425 Univenity Avenue Toronto, Ontarie; 640 Cathcart Strest, Montresl, P.Q. SUBSCRIPTION RATES Delivered carriers Bd ove, in Oshawa, Whitby, Ajax, rooklin, lort Perry, Princes enchman' ] Saftvide 15.00 per Circulation for the issue of March 30, 1961 17,363 supplied directly by the government. Another 12.5% was "influenced" by the government through tax incentives. The government could become an im- portant supplier of investment funds be- cause of huge surpluses in the public account, the result of the Allies' refusal to allow a general tax cut on the ground that high tax revenues were necessary to prevent inflation. The tax exemption program, when monetary policy was tight and tax rates high, was a very effective means of directing private investments into areas preferred by public authorities. Tax concessions also were used to promote savings and export industries. Roskamp thinks the West German experience could be useful to the United States. The most interesting lesson was the use of selective economic policy measures, he feels. To the extent that many of our present economic troubles are of a structural nature which cannot be successfully tackled through general economic policy measures," he says, this lesson has particular relevance for us." He thinks that selective government expenditures or tax measures may be the most effective means of speedily eliminating severe bottlenecks that either do or could exist -- for instance, in education, research, housing, specific industries and urban redevelopment. Advances Ontario market. Oil production during the past few weeks, accordingly, has been running at a level not far from 20 per cent above 1960 average. Going back over the remarkable post- war development of the Canadian oil industry, the review obgaryes that in the years since 1956 there have been important changes both in world oil markets and on the Canadian scene. The long-run effects of the Suez crisis (late 1956 and early 1957) were to strengthen the buildup of world oil supplies and to stimulate the introduct- ion of alternative and lower-cost means of transportation. These developments in turn, were reflected in lower shipping rates and reduced world oil prices. In the meantime the growth in Cana- dian demand for oil, which was very rapid up to 1956, became more mode- rate. The export flow of oil to tre United States fell off sharply in 1958, and though recovering in 1959 and 1960 was still well below the 1957 level. There are three main areas where expansion can be achieved: the normal growth of demand in domestic markets; displacement in the Ontario marke: of most of the oil products now supplied from Montreal refineries usiag foreign crude; increased exports to the United States. This year there has been an increased flow of oil to U.S. refineries in the Puget Sound area. Ontario refinery capacity is being increased. The prospects are encouraging. Bible Thought A day in thy courts is better than a thousand. --- Psalms 84:10. Life on a sensual plane at last de- stroys itself. Lasting joy is found only eon the highest plane, Co Ali [7 NE ) Li % ALICE IN DRUGLAND OTTAWA REPORT Thoughts About Party Discipline Patrick Nicholson is on vacation, His guest column ist today is Hubert Badanai, Liberal MP for Fort Wil liam, Ont. OTTAWA--One would think it a bit risky for Patrick Nicholson to allow an MP to write in this space while he is on vacation. On almost every subject con- cerning the nation's business on which he writes, there is a vari- ance of opinion between us. He told me that I can write about any subject and he agree to my tion that I should tell his readers how I feel about the disciplinary practice of vo- ting in Parliament on questions in which the life of the govern- ment is not at stake. You have often heard about government members voting solidly for any and all govern- ment measures, regardless of individual preference. The de- bate on the oil pipeline bill of 1956 was a case in point, during which the supporters of the gov- ernment of the day were named "trained seals" by the Opposi- tion. While it is true that a good measure of loyalty to the party is essential for the orderly con- duct of parliamentary procedure nevertheless, it seems to me that partisanship is carried to the extreme, often seen in lav- ish adulation for the leader and blind obedience to party discip- line, which is not at all essential for good government, on the con- trary, I believe that a more in- dependent expression of opinion by all members of Parliament would result in better legislation for Canada. WEALTH OF EXPERIENCE Between these members there is a wealth of experience and --. BYGONE DAYS 35 YEARS AGO The Oshawa Railway company called tenders for the construc. tion of a new freight shed and office building. A. W. Jackson, of Whitby, was appointed returning officer for the constituency of Ontario in the approaching Dominion elec- tion. C. J. Thornton of Orono was appointed returning officer for Durham. A farewell party was held at the home of Mr. and Mrs. J. Bickles in honor of Mrs. A. F. Mitchell, Bella and Winnie who were leaving for England on an extended visit. Dr. T. E. Kaiser was nomin- ated the candidate of the Con- servative party in the Dominion election. Albert E. O'Neill was appoint. ed principal of the Oshawa High School. At the time, there were 20 teachers and 500 students. The T. Eaton Company inau- gurated a daily delivery in Osh- awa. Miss Olive B. French, a pupil of Miss L. K. Bambridge, pass- ed the ATCM pjano exams held in Bowmanville. "The Untamed Lady", star- ring Gloria Swanson, was play- ing at the Regent. S. Wood, S. Young, C. H. Peacock and C. C. Stenhouse were chosen as skips of the rinks entering the competition to see which one should repre- sent Oshawa in the Dominion Lawn Bowling championships. an illustration of an indirect ! thrust of party discipline. Different Ideas Govern German Army's Training By DAVID OANCIA Canadian Press Staff Writer BONN (CP)~The herd con- cept is a thing of the past fformed mass to be drilled disciplined and taught to obey without question. "There is not much need any more for soldiers who are just cogs in a machine," said Gen- eral Helmuth von Grolman, a veteran of both world wars. He's the parliamentary com- mussioner appointed with all- party support to see that the democratic character of the armed forces is preserved. The present-day soldier is be- ing taught to think on his own and to see for himself the ne- cessity for service in an era of atomic weapons and militant communism. UP-TO-DATE TRAINING The latest methods of man management and human guid- ance are given the greatest em- phasis in training programs for commanders and non-commis- sioned officers. A school for "Innere-Fuh- rung" or man management has been set up at Koblenz to pro- vide intensive training in these fields for those assuming com- mands. Both the parliamentary com- missioner and the school are without parallel in any of the other NATO countries. The new regime no longer tol- erates tyrants of the parade grounds and observers say that the psychological and spiritual transformation of the armed forces is more profound than in any other traditional Ger- man institution. The c¢ issi 's office is Rarely, members are rel d * to vote as they pleased, but it . does happen occasionally, The | debate on capital punishment is i an example of what, I think, i should be a pattern for major ; debates, In this instance, there § were members of both the gov- knowledge, which could be bet- ter exploited by giving each member greater freedom to ex- press ideas which may well be in opposition to their leader's viewpoint. Theoretically, a ber is al- ernment and Oposition who spoke for and against the abo- lition--many favoring a modifi- cation of the penal code without abolition. The government-spon- sored bill provided the compro- mise which the majority agreed upon. In the final vote, we of the official opposition split, 16 ways free to speak and vote as he piecases but, on the other hand, he does so on the peril of inviting disapproval from his leader. It is also true that quite often a member does advance suggestions without consulting with his leader or members with many years of experience. To illustrate my point, I wish to recall an experience I had in connection with a debate on the flag issue; I had decided to speak against certain features of the bill which was introduced by a private member. It just happened that I saw the fellow shortly before he was to intro- duce the measure in the House, and I told him that frankly I didn't think much of his bill and that I was going to speak against it because, while Canada needs a flag I was not in favor of just any flag. He immediately suggested that I talk the matter over with one of the senior members of the party. I did so, and to my sur- prise he took exception to my intention, because he felt that a great majority of the people were in favor of the proposal contained in the bill. REFRAINED FROM DEBATE There was nothing to stop me from speaking anyway, but in the interest of peace in the fam- ily I refrained from entering into the debate, opposing the views of the party which ac- cording to accepted practice and customs should only be done in the 'privacy' of the' cducts. This does not mean that as a private member I am not al- lowed to say what I think, in the House, which members of all parties often do; it is simply pporting the 1 lation and 17 voting against it. REVISED NOTIONS In the light of the experience I gained in four sessions of Par- liament I had to revise some pre - conceived notions I held about the function of political parties other than the one which forms the government of the day. A strong Opposition is essen tial to the efficient conduct of government business, which de- molishes the idea that some peo- ple still believe, that it is use- less to have an MP in Opposi- tion. If this were so, then we would have to change the whole concept of democratic govern- ment. Private MP's in Opposition do not necessarily suffer any dis- tinct disadvantage by not being supporters of the party in power. But on the other hand, if our party system were to evolve to free MPs from strict party dis- cipline, and to permit each to speak and vote according to his own conscience or to his con- stituency's interest -- except on motions expressing want of con- fidence in the government--our parliamentary sy ste m would achieve a democratic form free of the shackles which party politics impose. In other words, not every vote should be regarded as one on which the government should be forced to resign if outvoted. It seems to me that, once a general election is over, party politics Should not be allowed to overshadow the business of the nation, in the interest of which MPs of all parties should work together as a team for the com- mon good of all Canadians. INSIDE YOU Lying Generally Rings An Alarm By BURTON H. FERN, MD The lie detector lied! Otto hadn't stolen that $20! And so he agreed to the lie detector test. But some second- rate technician translated the test wrong and labeled Otto guilty. The ancient Chinese used rice as lie detectors. Tension dries mouths that spit lies. Ancient suspects were required to hold rice in their mouths for a few minutes. Moist rice proclaimed inno- cence; dry rice, guilt. Unfortu- nately, weak - salivary glands sent many ancient innocents to the chopping block. Both ancient and rocket-age lie detectors merely record your reaction. Lying generally rings an alarm. Your heart beats faster. Blood pressure soars momentarily. You hold your breath or take in extra air. CONTINUOUS RECORD Your skin breaks out in a cold sweat and you fidget and squirm nervously. None of this is sup- posed to happen unless you're lying. The continuous record in the lie detector shows which an- swers ring your liar's alarm. The technician asks about nine Yes or No questions but only two or three concern the crime. Are you John Smith? Do you live at 1600 Pennsylvania Ave- nue? Did you steal the $20? Is Napoleon Bonaparte your father? Everything should remain calm when you admit your name, deny living at the White House and refuse to be linked to Napoleon. But your alarm should start needles jumping if you lie about your innocence. TRUE INNOCENCE Of course if you're really in- nocent the needle shouldn't jump when you deny the crime. Lie detector tests become worthless when even ordinary questions alarm terrified sus- pects. Occasionally, these timid souls panic only at the emotion- loaded key questions even though they're telling the truth. Topnotch technicians can usu- ally tell which tests are valid. But until all doubt is erased, lie detector tests won't count in court. Still, Otto's test has al- ready been entered as evidence. He's suing that second - rate technician who tagged him a liar simply because he panicked at all nine questions, an illustration of parliamentar- ians' determination to see that the transformation is made per- manent. "In the Nazi armies, the in- dividual's rights and freedoms were not protected adequately," said General von Grolman. Now any trooper has the right to write directly to him about any complaint or problem he may have. Now, out of a total of 300,000 German troops, the commis- sioner gets between 400 and 500 letters a month. They deal with discipline and promotion prob- lems, family and social affairs. Each is investigated and ac- tion is taken on roughly 50 per cent of them. In his latest annual report-- made directly to Parliament and not to the government--the General noted that the Bundes- wehr had become '"harmoni- ously integrated in the free so- ciety based on the law of our democratic way of life." "When the office of commis- sioner was established about two years ago the old soldiers were worried about having someone poking around their kitchens," von Grolman said with a smile. "Now they accept that it helps them do the job." CODDLED SAY CRITICS The critics of the new army worry about what happens to morale and discipline if men are coddled and encouraged to complain over the heads of their superiors. The general has none of these worries. He said emphatically that the "citizen in uniform" must know what freedom is, otherwise he can't defend it. The Koblenz school for "In- nere-Fuhrung" has a big part to play in the new army. "This school has been pre- sented with tasks mere for- midable than a military com- severed into a Communist and capitalist West. RED PROPAGANDA . Germans face Germans . World War to regain territories. "Even if there fools in the German in politics who wanted to this, an attack on would be impossible because our NATO tie-in," Muller: kow said. The highest of the military - commander's arts is to break an enemy's resistance without resorting to war. This, he said, the Communists are trying to do by using psychological mander has ever had to face f before," said Col. Heinz Muller- Lankow, the institute's deputy commander. "It strives for a heretofore unknown toughness and disci- pline in the individual fighters. It's a task we simply must carry out." MENTAL PREPARATION The task basically is to train commanders at all levels in the use of psychological and other methods of preparing troops to meet the dangers posed by mili- tant communism. "This doesn't mean that we prepare mentally against com- munism alone, but against all totalitarian regimes," he added. Muller-Lankow, - who gained some knowledge of Canada through spending a couple of years in prisoner-of-war camps there, recalled the Nazi days when he mentioned this. "We have learned our lesson. We know something about to- talitarianism." The problems posed in train- ing the new German army are immense. Their own nation is troops. Its aim, said Muller Lankow, is to influence system- atically the army's internal structure with the final aim of softening and breaking it up. A comprehensive program has been mapped out to counter these methods. Soldiers are taught about the moral and ethical principles of Western life, the underground and propaganda techniques used by the Communists and their meaning of co-existence. "Every soldier must know that co - existence is a Com- munist tactic and that their ob- jective of world revolution re- ° mains unchanged," he said. "To us the most important thing now is the defence of the free world. Every one of our military commanders must never tire of asking himself whether his soldiers know the difference between East and West, why they are serving and where the real foe to defeat actually is." REPORT FROM U.K. Council Provides Easy Mortgages By M. McINTYRE HOOD Special London (Eng.) Correspondent For The Oshawa Times regarding home-purchase loans have been received at the town READING, BERKS, -- The hall. At any one time, there are municipal council of the Berk- from 50 to 60 applications be- shire town of Reading ports remarkable success with re- ing studied and considered by the housing officers. Some are a plan to help its citizens to from single women earning as own their own homes, even little as $16.80 a week. Others those who are in what might be aré from laborers in the $32 to termed the low income group. The plan was started a year ago. It provides mortgages at well below the general average of interest rates. And the mortg- ages can cover as much as 100 per cent of the cost of the house. is double the: number yecorda That means that young mairie couples can start right in to buy their own home without having to make a down payment. Since the plan was launched a year ago, close to 2500 inquiries QUEEN'S PARK Opposition Holds Important Place By DON O'HEARN TORONTO -- Another weak- ness in our rapidly developing machinery of government today is lack of appreciation of the function of the opposition in our system, and of the necessity for it to be as strong as possible if the system itself is to be as strong as can be, The saying that government is only as strong as its opposition is one of our old truisms of de- mocracy. At one time it probably meant quite a bit in the minds of men shaping our path. But today it is li a saying. Politically we have been drift- ing--and we have drifted to the point a lot of our strengths are becoming dim. OPPOSITION BACKBONE There should be no question that a strong opposition is the backbone of our form of de- mocracy. The whole system is based on two sides of view contesting with each other: Out of this, in the ideal, comes progress--for continual opposi- tion pressure means there must be progress--under restriction-- for a vigilant opposition also is a curb on irresponsible govern- ment. To appreciate this properly and to put it in practice, how- ever, calls for some degree of statesmanship. more than It means our political leaders must look beyond their personal advantage to the greater good. And unfortunately we do not have any very strong measure of statesmanship evident today. Let us take the single instance of research. For intelligent government to- day research is a vital tool. And it is equally important to the opposition as to the govern- ment. The government must find oul what are the best steps to take. The opposition must find out if it is taking these best steps. EXPERT HELP NEEDED To do this both must have expert assistance. This is available to the gov- ernment in ample quantities. But here in the Legislature-- as in other parliaments in Can- ada--there are only the stingiest of research resources at the dis- posal of the opposition. And in the long run perhaps even more important, whatever concessions that are made b the government in this line are given essentially in the spirit of patrimony--as sops to quieten complaints. This is a great handicap not only to the legislators opposing the government but to the health of our system itself. And unfortunately it reflects a general situation. $35 a week wage group. OVER 500 APPROVED In the 12 months since this scheme was inaugurated, over 500 mortgage loans have been approved by the council. This in the previous year, before the no down payment plan was put into effect. 3 Council members expect that this increase will continue and will be progressive. A corpora.' tion official pointed out that the council has not set any limit on the total amount which will be advanced for home purchase, This cut-rate housing plan was launched by a Labor-controlled council. 'Since then, the balance of power has changed, and the Conservatives are now in con- trol. They, however, have wel- comed and supported the scheme, and there is no inten- tion on their part of changing it. LOW INTEREST RATE Under. the plan, the interest rate is 54 percent, as compared with 614 percent now being charged by the housing societ- ies. Although it may be sub- ject to fluctuation, it is not tied to the bank rate. It is based on the short-term money market on which the council borrows and where average intearest rates are low. Mortgages of either 90 percent or 100 percent are offered. The council spokesman said that the scheme was available to help people earning from $16.80 a week upwards. He said: "The average person who ap- plies is the $35 a week artisan. We do, however, receive appli- cations from people earning from $8000 to $11,000 a year. There are no restrictions. "All that is necessary is that the person needs housing. It is the little man in a regular job but with no savings whom we can really help. We have appli- cations from many people earn- ing from $22.50 to $26.00 a week. Obviously they do not have much chance to save." The council offers loans spread over periods of up to 40 years, "Ideal for the young man of from 21 to 25 just getting mar- ried. 4 BY! DONEVAN HIGH SCHOOL so SL] 3 and 4 bedroom homes with attached garage. All londscdped lots. - Beoutiful tri-level ond bungalows. Featuring large living and dining area. 2 ceramic tile baths, thermopane, clay brick and stone construction. PRICES FROM $14,995 AND UP -- CASH -- Plus many other extras. Ask for MR. SWARBRICK, 725-6544 JOHN A. J. BOLAHOOD LTD. (exclusive agents) VILLAGE See them now. HARMONY OPEN DAILY HARMONY RD. SOUTH OPPOSITE RADE -- TERMS