But soon after taking office, Mr. Sharp said in January the deficit would be less than $100,- 000,000. And the authoritative Canadian Tax Foundation said last month the deficit would be "not much over $50,000,000." The reason for the change is Balanced Budget Due? April 1 To Tell Story By JAMES NELSON present his first' budget to the that government revenues have OTTAWA (CP)-This may be|Commons next Tuesday night, |peen running ahead of expec- the year Canada returns to a) Former finance minister) tations because of the buoyancy balanced budget. And in the|walter Gordon drew up his/of the economy, Expenditures new fiscal year starting April 1,|pudget last April with a $300,-/are up too, but to a lesser ex- there may even be a surplus inj990,000 deficit in mind. He esti-| tent, ing on new government pro- grams and partly as an en- couragement to a lagging econ- omy in the late 1950s and early 1960s, deficits running as high as $791,000,000 in 1961-62 were incurred. TAKE OTHER TACK? Deficit financing is a means of encouraging the economy by haying the government pour more money into it than it takes out in taxes, Now, Mr, Sharp the treasury, the first since/mated revenues at $7,350,000,000) There was a budgetary sur- 1957. land expenditures at $7,690,000,-|pius of $257,500,000 in 1956-57. Finance Minister Sharp is to!000, | Partly because of heavy apead- HEINZ SWEET PEATURE PRICE! MIXED PICKLES «=... 33: IN TOMATO SAUCE Reg. Price 2 tine 47e -- SAVE Oe [spending power -- by is being urged to adopt the other tack By drawing off some excess xing more than the government spends in the new fiscal year-- some braking pressure would be put on the economy. The finance minister said in the Commons Monday that in- flationary pressures are becom- ing worrisome, The Economic Council of Can- ada has recommended tax poli- cies to encourage production, rather than dampen demand for goods and services, The Bank of Canada, on the otherhand, has said some dampening effect may he needed--bhut not ton much. As Mr. Sharp put it; "Our problem now is not to put a brake on the economy. The problem is to see that we do not press too hard on the ac- celerator and throw the car off the road, Our problem in the future is going to be to keep the expansion going without in- flation," Whether this means higher taxes, maintaining present tax rates, or lowering taxes in some special categories is a decision Mr. Sharp must make with the advice of his departmental ex- Mickey Cohen Wins Suit For $110,000 ATLANTA, Ga. (AP) -- For: mer gambler Mickey Cohen has won a $110,000 suit against the federal government, Upheld Monday was his con- tention the government was neg- THE OSHAWA TIMES, Wednesdey, Merch 23, 1966 ]] tiary who clubbed Cohen with a length of pipe in 1963, Cohen, 51, is serving a 15-year term for income tax evasion. U.S. District Judge Sidney 0. Smith Jr. made the award, Legal sources said it appar- ently was the first case of this, | damages assessed. ligent in supervising the convict in ine AiianliG isderai peniicn ae -aeve eee @ KETCHUP sion making it possible for a prisoner to sue the government, Cohen, eligible for parole this summer, had sought to collect $10,000,000 from the govern- ment, charging that he suffered paralysis of the left side, a skull fracture and brain damage. The judge, who heard testi. \type in which the government) mony without a jury Jan. 31 has been found negligent and) and Feb, 1, ruled that the peni- tentiary was negligent in its sue pervision of Berl Estes McDon- ald, the convict who attacked Cohen the night of Aug. 14, 1963, in the prison electrical shop, ESCAPED SEGREGATION Smith said the prisoner should not have been allowed to escape maximum segregation. Smith said penitentiary au- thorities placed MeDonald in maximum security after he wag involved in other assaults. Me- Donald, then 35, was serving two 10 year terms for forgery and assault with intent to mur- der, He was adjudged incapa- ble of standing trial for attack> ing Cohen, The judge said Cohen, stil) in the medical centre at Springs field, Mo., has reached optimum recovery and his disability has been placed at 50 per cent min- imum by specialists, Cohen wil} be crippled for life, Smith said, The ex-gambler was convicted HEINZ BEANS 2:37: BREAD 4 BUTTER FEATURE PRICE! 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Indonesia 'Truce End Foreseen By JOHN CANTWELL SINGAPORE (AP) --Diplo- mats in Singapore predicted to. dicted Tuesday that Indonesia's new military regime will gradu. ally call off President Sukarno's three-year-old undeclared war against. Maiaysia. Diplomatic sources said they jexpect Indonesian armed. raidy jagainst Malaysia will end but ithe propaganda ca mpaign against the federation of former |British territories probably will continue for some time. 'Lt.-Gen. Suharto's new re. gime realizes it must improve Indonesia's economy if it is to 3 void widespread opposition jfrom the people, one diplomat jsaid, and one of the quickest ways of ae this would be to pen trade with $i d Malaysia. ~-- President Sukarno's 'confron- tation" with Malaysia disrupted his country's shipment of tin and rubber through Singapore and Malaysia, the main source jof Indonesian foreign exchange. LED TO TROUBLE One of the main reasons for the student demonstrations that led to the downfall of Sukarno and his aides Subandrio and Chaerul Saleh was said to be vat economic chaos in the coun- ry. Until they were fired by the army last week, Subandrio wag first deputy premier and for. elgn minister and Saleh wag third deputy premier, Both were regarded as pro-Peking. The. diplomats' predictions of a softer line against Malaysia also were based on a statement Monday by the new foreign minister, Adam Malik, that Ine donesia's foreign policy under the previous government was undignified. The diplomats said peace feel- ers were sent to Malaysia early \this year when anti-Communist armed forces led by Gen. Abdul Haris Nasution were in charge |of the country, Sukarno fired ag jdefence minister in February |but Suharto's regime is exe | pected to give him a prominent jpost in the new government. |Meanwhile, Radio Jakarta said merchants in Indonesia jwere completing with Suharto's jorder to lower prices on some | goods, | The official radio said Su- |harto also ordered government jaid for thousands of flood vic- jtims in central Java lan | BAN DARTS PLAYERS NETTLESTONEF, Isle of Wight (CP)--A darts team has been banned from its home, the Roadside Inn, because the pub- lican says the seven players don't drink enough beer. Team captain Harry Jacobs says all matches will be played away now, and the inn is looking for thirstier sportsmen. BOIL WORLD BANGER SCUNTHORPE, England (CP)--Butchers in this Lineoln- shire town are making "one hell of a sausage" for the summer carnival The mammoth 'banger' will measure 3,000 feet from end to end. Bach of the town's 40 butchers is mak- ing a section and the pieces will he sewn together for the show, then cut apart to be cooked and sold to the crowd { QUEEN CARRIES GHOST CLYDEBANK, Scotland (CP) iWhen the Cunard Queen class luxury liner known only as 1Q4 is launched next year ste |will embody one of her prede- cessors. The new vessel is being built from scrap steel from the 26-year-old Mauretania, being broken up nearby, now