bluuebunny/crossref_metadata_2025 huggingface dataset:
Some Problems of War Finance in Canada
Authors: Parkinson J. F.
Published: June 2006

While the war lasts most decisions and policies can only be provisional. It has now become apparent that the view that the conflict had settled down into siege warfare, supported by the Allied blockade of Germany, has been belied by events. In the last war the long military stalemate in France gave the Allies time to organize their superior economic strength, and in the end this superiority tipped the scales. The economic strategy so far would seem to have been based upon the assumption of much the same kind of military development. If, however, the military situation is as critical as it appears to be, the economic strategy will have to alter. Our economic and financial measures are then likely to undergo a series of improvisations which will defy all attempts at precise calculations. Germany's blitzkrieg will certainly warrant new forms of economic mobilization in the United Kingdom, and probably in Canada too. In this situation careful attempts to minimize costs, involving a widespread reliance on private-initiative and the free pricing system, must and will be thrown overboard. And with them will go the framework and modes of thought of much of our traditional economic theory.

Discussion of the finance of war is also complicated by the fact that public finance—or the larger problem of war economics—is as much a problem of politics as it is of economics. And it is the political aspect of the subject which surrounds war finance with most of the controversy which it possesses. Whether a particular form of taxation, or the decision to do by government decree what is normally done by taxation, is desirable or not, turns more and more on the state of political sentiment, and less and less on questions of economic analysis. In this domain of politics the economist has no particular jurisdiction; and for the politician himself the condition of public opinion changes so rapidly during war that measures deemed impolitic today may be universally demanded tomorrow.
Taxation Problems of Life Insurance
Authors: Tousaw A. A.
Published: June 2006

The basic principle on which life insurance is founded is that of mutual co-operation. Many persons co-operate to assume and to share risks which the individual could not afford to bear alone. This cooperation takes the form of contributions to a common fund, from which claims are paid as they occur. In the modern form of life insurance the contributions are “level” and dependent chiefly on the age of the contributor at entry to the fund. Since the life insurance risk increases with increasing age it will be obvious that level contributions sufficient to meet all risks will more than suffice to meet the lighter risks of the early years and will be insufficient to meet the heavier risks of the later years. Accordingly, the early excess contributions must be accumulated in the fund to make good the later deficiencies. It is these excess contributions accumulated to meet the future risks that are invested and form the assets of the life companies. These assets are not the property of the companies in the commonly accepted sense of the word, but instead represent the accumulated savings of the individual policy-holders, to whom they are ultimately to be returned. The companies are simply acting as trustees or custodians of these savings, and, in common with other trustees, the assets in which these savings may be invested are prescribed and limited by law. There exists, of course, in most of our Canadian companies a shareholders' interest which, however, is small and of little account, while in the large American companies the shareholders' interest is entirely negligible or non-existent. Since the life insurance business is of a quasi-public nature there has developed a close government supervision over its affairs, with the result that the companies are subjected to regular extensive examinations and also are required to prepare and file periodically complete detailed reports of their business.
Post-War Reconstruction in Great Britain
Authors: Finer H.
Published: June 2006

There is an almost universal expectation of considerable social reconstruction in Great Britain as soon as the United Nations have achieved victory, and even of instalments in the course of the war itself. This expectation rests upon keen disapproval of certain British social and economie institutions, but also upon confidence in and respect for a national character, which, in the centuries of its development, has achieved mighty and noble works in the building of its political and economic habitation.

In the following observations on the subject of reconstruction we shall be chiefly concerned with four factors: the influences that have produced the manifestly strong impetus to reconstruct; the cardinal reforms that are in mind; the agencies which have been established to collate, ponder, and implement the proposals; and finally, it will be well to find an answer to the question, what are the prospects of substantial advance?

Britain entered the war in a deliberate, not a romantic frame of mind. There was a job to be done, a terrible problem to be solved, not an adventure to be enjoyed. This sobriety led to the immediate raising of the question, “How can this shocking event be prevented from recurring, and to what extent are we as a nation responsible for it?” The result was a widespread canvassing of war aims and peace aims—the newspapers were at once full of the discussion. Generally, the first phase of attention was to international arrangements, and, in the course of time, this produced a spate of suggestions revolving around the conception of federalism. We need not do more than point to the establishment of Federal Union, and the series of papers written on the subject of World Order under the auspices of the Royal Institute of International Affairs.
Walras and Pareto: Their Approach to Applied Economics and Social Economics
Authors: Clerc J. O.
Published: June 2006

Recent publications have once more drawn the attention of the scientific world to the School of Lausanne. While economists emphasize chiefly the originality of the conception of economic equilibrium in Walras, sociologists and mathematicians pay homage to Pareto's versatile genius. Contemporary authors are mainly interested in the mathematical method and the conception of pure economics advanced by these two men. But the same authors forget too easily that Walras and Pareto dealt with numerous political and social questions, and that their opinions in these matters are important from the point of view of both applied economics and methodology. The object of this paper is to discuss these opinions. We shall first state the great philosophical antithesis which marks the division between the ideas expressed by Walras and Pareto, and secondly, consider the ideas themselves.

Although the works of Walras and Pareto on the subject of pure economics are complementary, their methods in dealing with practical economics are completely different. According to Walras, the duty of a politician is to apply the principles and data deduced by the pure economist. The pure economist must scientifically deduce laws from the “good old Natural Law.” Walras believes in scientific ideals and in the permanence of political laws; in philosophy, he is a Realist, in the sense given to this word by the quarrel of the Universals. In contrast with this, the conception of Pareto is much more flexible, much more pragmatic. His doctrine is that certain principles, rationally erroneous, can in practical reality be excellent, because people are usually governed by their feelings and not by their intelligence. To the great Italian, scientific laws were only “experimental uniformities.” This is the conception of the nominalist philosophy, which Pareto stresses when he writes: “Io sono il piu nominalista dei nominalisti.”
The Equalitarian Family as a Fundamental Invention
Authors: Topping C. W.
Published: June 2006

There is a popular impression that the contemporary family has lost that position of dominance which it held in the days of our forefathers. Many have come to regard the family as an institution with a great and historic past but with a dark and uncertain future. Meyer F. Nimkoff has assembled some of the evidence in support of this position. “Some students,” he writes, “think they see the eventual demise of the family in the growing restlessness of large numbers of people over the limitations of conventional family life.” He draws attention to the trend towards unconventional sex arrangements as revealed in recent studies of sexual phenomena, to changing public opinion as shown in the changed attitudes towards the family of representative modern novelists, to statements concerning the evolutionary supersession of the family made by scholars such as Müller-Lyer, to increase of childlessness, and to the possibilities of ectogenesis. Though of qualified significance, he might have cited statistics on divorce.
American Economic Preparations for War, 1914-1917 and 1939-1941
Authors: Wright Chester W.
Published: June 2006

My purpose in this paper is to indicate the extent to which the United States seems to have learned something from history as regards the economic problems incident to the preparation for war by comparing the preparations made during the period of neutrality in 1914-17 with those of the corresponding period of 1939-41, though I shall at points go beyond the neutrality period. The topic is a wide-ranging one and in the time available I can only hope to touch rather sketchily upon the more important aspects of the problem. I shall not attempt any analysis of the factors which explain the greater results secured during the last two years than in the earlier period of neutrality, involving such things as the attitude of the administration, of Congress, and of the public, as well as the fact that so many of the generation that faced the problems of the last war are still alive, in marked contrast to the situation in 1861 or 1914, for to do this would carry me too far afield. I shall treat the subject topically under the headings of the chief economic problems of war.

These chief problems are: first, getting the goods and services required for fighting; second, providing for the essential needs of the civilian population; third, devising means to enable the government to pay for these goods and services, the problem of war finance. Sometimes a fourth problem is added to this list, that of preparing to meet and to minimize the inevitable post-war readjustments. While I think this last should be classed as a peace-time problem still it is one which should properly be held in mind in shaping war-time policy, but it must be kept strictly subordinated to the problems involved in the effort to win the war.
Price Ceilings and International Trade Theory
Authors: Elliott G. A.
Published: June 2006

In one of his many famous speeches, Mr. Churchill predicted “the English-speaking democracies, the British Empire and the United States, will have to be somewhat mixed up together in some of their affairs for mutual and general advantage.” Mr. Churchill was thinking presumably of the fields of public finance, administration, and war strategy—of quasi-political affairs. This paper is concerned with some of the ways in which the economic affairs of nations are “mixed up together.” Now the economic structures of trading nations are intertwined both in war and peace, and whether trade is administered by public officials or planned by a multitude of private individuals. The importance of the entanglement corresponds to the importance of trading relations in the economic structure of each country. However, when trade is not administered its importance is less direct and obvious to governments and government officials. As controls are extended in the domestic realm, international trading relationships tend more and more to become subjects of administrative and even diplomatic interest. Administrators in the domestic fields are always tempted to simplify their problems by insulating the domestic economy from unexpected or unpredictable changes elsewhere, without considering the total effects of their regulations on the domestic and foreign economies as a whole. Accordingly, international administrative co-ordination in war time must increase very rapidly if it is to keep pace with the increase in domestic regulation and prevent a rapid diminution in the extent and quality of international economic co-operation.
The Cabinet Minister and Administration
Authors: Dawson R. Macgregor
Published: June 2006

The generalization of Walter Bagehot that successful administration “depends on a due mixture of special and non-special minds” has lost none of its importance with the passage of time, for the problem of combining competent administration with democratic control is more urgent today than ever before. Bagehot contended that the Cabinet Minister, the “non-special mind,” served a double purpose: he not only enabled a democracy to control the civil service, but he also made a genuine contribution to its administrative efficiency. The specialized civil servant, if left to his own devices, tended to become narrow in outlook, careless of the public convenience, and restricted by departmental routine; and the important secondary function of the Minister was to correct these failings by supplying a fresh mind and a different point of view.

The government of Great Britain still furnishes, as in Bagehot's time, the best practical application of this principle, and the high standards maintained by many of the departments bear testimony as to its essential truth. The need for this interplay of “special and non-special minds” is perhaps best seen in the history of the War Office, a department which by its very uniqueness in several respects presents in exaggerated form both the difficulty of the problem and the virtue of the remedy. The War Office is thus considered not merely as a sample department, but one which places, as it were, a magnifying glass over the general problem of departmental administration elsewhere.
Some Implications of Prospective Population Changes in Canada
Authors: Hurd W. Burton
Published: June 2006

The purpose of this article is to make available in somewhat more detailed form than has heretofore appeared, the results of a population projection recently made by Mr. M. C. MacLean and the present writer and to discuss some of the more important implications of the indicated changes in the Canadian population structure.

The Basis of Projection. In making the projection specific, birthrates were computed by relating the average number of births over the six years 1931-6 to the estimated number of survivors of the 1931 adult female population at the mid-point of that period. The projection was carried forward by five-year intervals for the two sexes separately using birth-rates so computed and mortality rates derived from the official all-Canada life tables for 1931. These rates were held constant throughout and no account was taken of the possible future effects of immigration and emigration or of war.

The reason tor this procedure as well as tor the selection oi the above-mentioned birth- and death-rates may be stated briefly. During the post-war decade (1921-31) the crude birth-rate in Canada as reflected by the ratio of children 0-4 to women 15-44 experienced a quite unusual and drastic decline. It fell by as much as 14.4 per cent in the ten-year period as compared with an average drop of approximately 5 per cent per decade in the preceding fifty years. About half of the decline in the last intercensal decade may be attributed to postponed marriages. A further drastic decline was registered during the depression years which undoubtedly resulted in many more postponed marriages. It seemed reasonable, therefore, to regard the existing low rates as somewhat abnormal and cyclical in character, and to anticipate at least a moderate though perhaps temporary revival as soon as economic conditions permitted the resumption of marriages on anything approaching a normal level. At the same time experience in Canada, as well as in other countries, suggests that the underlying trend in Canadian birthrates is likely to be downward for some time to come. Instead of attempting corrections for trend and cyclical movements which at best would involve a good deal of guess-work, it was decided to use throughout the low rates prevailing during the first part of the present decade (1931-6) on the assumption that their use would offset in some measure the neglect of the long-term downward trend.
The Independence of Municipal Councils in Ontario
Authors: Crawford K. Grant
Published: June 2006

The purpose of this paper is to survey the trends in the history of local government in Ontario which are gradually eliminating independence or self-government from municipal councils in Ontario. We are not here as much concerned with considering the desirability or otherwise of these trends as with recording the facts of the situation. Whether for better or for worse, the municipal councils in Ontario, as local self-governing units, have been, and are continuing to be, more and more restricted and circumscribed. They are becoming merely agents for other local units of government and for the central provincial government. The various aspects of this situation will be considered under the following headings, namely: (1) the establishment of subsidiary or auxiliary boards of varying degrees of independence; (2) imposition of obligatory and uncontrollable expenditure and the elimination of sources of revenue; (3) imposition of restrictions on control of municipal officials and employees; (4) the development of the Ontario Municipal Board; (5) establishment of the Department of Municipal Affairs; (6) municipal subsidies.

In general, the activities of a modern municipal government fall into two main classes-legislative and administrative. Of these, the first is of relatively minor importance. The second is essential to the everyday life of the individual, particularly of the urban dweller. As it is not possible, in the space available, to deal with all types of municipal government in the Province, this paper will be limited to a survey of the situation as it applies to the larger urban municipalities where the problem is most acute.
Rural Municipal Difficulties in Alberta
Authors: Abell A. S.
Published: June 2006

In Alberta, the Municipal Districts are the centre, or at least the most important units, of rural, local government. They possess a greater diversity of function than either school or hospital districts and, for the most part, they assume the task of collecting all local and provincial taxes on real property within their borders. An attempt will be made in the following pages to analyse their present position and to determine what adjustments are necessary to enable them to survive.

Historically, the Municipal Districts mark a comparatively recent stage in the evolution of Alberta's municipal units. They are the lineal descendants of the Statute Labor and Local Improvement Districts which were created while Alberta was a part of the North West Territories. There seems to have been no long struggle for local government, comparable to that which the people of Ontario waged for similar privileges at a much earlier date. The theory and practice of popular municipal government had been well established and accepted by senior governments before Alberta was settled. Hence the territorial, and later the provincial, government took the initiative in the formation of municipal institutions, and the comparative instability and sparseness of the population made possible a fairly strong central control.

The year 1912, seven years after the formation of the Province, is a landmark in Alberta's municipal history. A Department of Municipal Affairs was created to administer the various municipal acts and to furnish guidance and supervision to the local authorities. An arbitrary unit, a square of nine townships (324 square miles), was adopted as the physical basis of rural municipal organization. Provision was made for the establishment of Rural Municipalities with corporate powers. In addition to this “permanent” form of municipal government, provision was made for the formation of “small” and “large” Local Improvement Districts. The former were to possess elected councils with more restricted powers than those of the Rural Municipalities; the latter were to be directly administered by the Provincial Department of Municipal Affairs.
Basic Problems of the Canadian Constitution
Authors: Clokie H. McD.
Published: June 2006

Canadian constitutional lore is full of the most amazing paradoxes. The Dominion has a written constitution; but, if the function of a written constitution is to introduce certainty and finality into a polity, this is precisely what Canada's written constitution fails to accomplish. Preposterous as it may seem, no one knows where the constitution begins or ends. The usual answer to a question about the “document” is that the constitution consists of the British North America Act of 1867 and its amendments. The superficiality of this answer is immediately revealed when one asks, Which amendments? The Rowell-Sirois Commission, which made elaborate studies of the background and functioning of the constitutional system, accepts and prints six amendments, the last one of which is dated 1916. Yet this is patently mistaken, for the Statute of Westminster, 1931, placed by the Commission immediately after its “last” amendment, definitely implies at least one later change by its citation of the “British North America Acts, 1867 to 1930.” There is little doubt, too, that the British North America Acts referred to in the Statute of Westminster did not include two of the amendments printed by the Commission (those of 1907 and 1916) and possibly even a third (that of 1875). After meditating on the apparent inaccuracy of the Royal Commission, no one should be surprised to recall that in 1930 the Premier of Ontario (Mr. Ferguson) advanced the view that the number of constitutional “modifications” at that date totalled thirty-three instead of the three about which there is evidently no doubt. Indeed, even the Mother of Parliaments has been misled by one of her Daughter-Parliaments into an erroneous citation of these Acts in her most solemn constitutional enactment, the Statute of Westminster. This is clearly revealed by the belated and surreptitious attempt made in the constitutional amendment of 1940 to tack on one of the earlier amendments omitted from the British North America Acts as defined in the Statute.
The Cabinet Minister and Administration: A. J. Balfour and Sir Edward Carson at the Admiralty, 1915–17
Authors: Dawson R. MacGregor
Published: June 2006

When the Asquith Coalition Government took office in May, 1915, the new First Lord of the Admiralty was Mr. Arthur James Balfour. His appointment to that particular position at that time was due to a number of influences, among which political exigency was by no means the least important. In the Cabinet reconstruction, Asquith had insisted that Grey at the Foreign Office and Kitchener at the War Office were not to be changed, and these reservations materially lessened the higher Cabinet posts which were available for prominent Conservatives. As a result of this delicate weighing of leaders and offices, Balfour became the most obvious choice for the Admiralty, a position for which he was well qualified on at least two other grounds. He not only held a seat in the Commons, but his experience as an unofficial consultant and member of the War Council during the previous seven months had given him a more comprehensive knowledge of the problems of the fighting services than any of his Conservative colleagues. The suitability of his appointment, moreover, was endorsed by his predecessor, Mr. Churchill, who suggested that inasmuch as Balfour had recently been in unusually close touch with events at the Admiralty, he could take over its duties with very little break in the continuity of the administration.
Canadian Problems of Government
Authors: Dafoe J. W.
Published: June 2006

I am going to speak on the Canadian aspects of the largest and most difficult problem with which the countries of the world are faced—that is, the method and characteristics of government and the ends it ought to serve. The world is in a state of anarchy today because there is universal demand that the scope and purpose of government shall be widened without any common agreement, either within individual countries or between countries, as to precisely the ends to be served or the techniques by which they are to be reached.

Much is heard of a reversion by some nations to ancient types of tyranny, but this is to misinterpret the points of resemblance. The new dictatorships rest upon the consent of their people who still feel that it is their approval that gives validity to the acts of their leaders; this is a condition far removed from the old tyrannies where the mass bowed their necks to the yoke of slavery. What will happen when these leaders lose the consent of the ruled remains to be seen; the demonstration, whatever form it may take, may be nearer than we think.

But considerations of this nature do not enter into a discussion of the question of government in Canada. This is a country in which no question arises of the right and the power of the people to direct and change national policies if they can make up their minds about what they want. The machinery by which they can give effect to their decisions is available. In theory, then, if popular government is the answer to all problems and difficulties, we should be the happiest of people. But perhaps there never was a time when there was such a general feeling that our machinery of government is inadequate to our needs, that it is unable to deliver to the people those benefits and alleviations which they desire and which they think should be within the competence of government if they could only devise the right machinery. This address is an attempt at a brief study of these discontents, difficulties, and dangers in the light of an acquaintance with political affairs which covers more than half a century.
The Recent History of Professionalism in Relation to Social Structure and Social Policy
Authors: Marshall T. H.
Published: June 2006

The professions, conceived as a select body of superior occupations, have existed from time immemorial, although their identity has often been in dispute. The ancients wrote and argued about them, while Herbert Spencer traced their origin among primitive peoples. The earliest view to which we need here pay attention was that occupations should be judged and valued according to their compatibility with the good life. They were to be tested by their effect on the giver of the service rather than on the recipient. The professions were, in English parlance, the occupations suitable for a gentleman. This idea naturally flourished in societies which distinguished sharply between life lived as an end in itself, and life passed in pursuit of the means which enable others to live as free civilized men should. The professions in such a society were those means to living which were most innocuous, in that they did not dull the brain, like manual labour, nor corrupt the soul, like commerce. They even contained within themselves qualities and virtues which might well find a place among the ends of the good life itself. Leisure, based on the ownership of land or of slaves, was the chief mark of aristocracy, and here too the professions were but slightly inferior. For leisure does not mean idleness. It means the freedom to choose your activities according to your own preferences and your own standards of what is best. The professions, it was said, enjoyed this kind of freedom, not so much because they were free from the control of an employer—that was assumed—but rather because, for them, choice was not restricted and confined by economic pressure. The professional man, it has been said, does not work in order to be paid: he is paid in order that he may work. Every decision he takes in the course of his career is based on his sense of what is right, not on his estimate of what is profitable. That, at least, is the impression he would like to create when defending his claim to superior status.
Family Budgets and the So-Called Multiplier
Authors: Marschak J.
Published: June 2006

If for any national income and its given distribution we could estimate the amount of annual savings, we should be able to tell how much investment is necessary to make the aggregate receipts of entrepreneurs (plus the value of any additions to the inventories) equal to their outlay and thus avoid entrepreneurs' losses and shrinkage of output, and keep national income at a given level.

The relationship between national income and savings has been estimated in three ways: (1) by studying the relationship between incomes and savings of families, leaving the undistributed corporation incomes out of the picture; (2) by studying separately savings of wage-earners and of profit-receivers out of their respective incomes (distributed or not); (3) by confronting, through time, national income and investment. Only the first method will be discussed here.

If people adjusted their behaviour to changes in their income more quickly than they actually do, the family budget statistics could give an answer as to how a change in the total national income affects the national savings, apart from the undistributed profits of corporations. Actually, there is probably a time lag between income changes and changes in consumption and savings, which should be studied separately.
The Recent History of the Australian Loan Council
Authors: Maxwell J. A.
Published: June 2006

The Australian Loan Council is a unique body. Established in 1928-9 as a part of the Financial Agreement, after the opinion had become widespread that the credit of the whole of Australia, under existing conditions, could never be much higher than that of its weakest state, the Loan Council was given full legislative and constitutional status as the body which was to handle all borrowing by Commonwealth and state governments, except borrowing for temporary purposes or by the Commonwealth for purposes of defence. Against its decisions there is no appeal because the Council is not directly responsible to any one Parliament or electorate. “If,” as Mr. Forgan Smith of Queensland has complained, “any Premier agrees [at a meeting of the Loan Council] to a line of policy from which his State Parliament dissents, all that this Parliament can do is, by means of a vote of no confidence, to remove him from office. Nevertheless the decision of the Loan Council would stand.” It is more than probable that nobody foresaw the extent to which, in the depression, the Loan Council might “be made the instrument of forcing upon the Commonwealth and the States a common policy involving the very details of their internal administration.”

Reduction of deficits. The first evidence of the powers of the Loan Council came in April, 1931, when Australia was fumbling for a proper policy to stem depression. On the initiative of the Council the so-called Copland Committee was appointed and on the basis of the report of this Committee the “Premiers' plan” was drawn up, which aimed, through a variety of measures, at a prompt balancing of budgets. These were long steps forward, but the question as to what could be done to keep governments in line still had to be answered, and here again the Loan Council had an important role. Early in 1932 New South Wales defaulted on its debt, and then approached the Loan Council for additional authority to borrow.
Monetary Reconstruction
Authors: Michell H.
Published: June 2006

To those of us who can remember the first world war and the high hopes that followed upon its successful conclusion for the Allies, there must come at times the most anxious apprehensions as to the peace which will follow upon the present one. The saying that we won the first war and lost the peace, annoying though it may be, is yet only too true. And even now, while the second struggle still rages, we may feel uncertainty, not that we shall not win in this war, for that is certain, but that once more the fruits of victory may turn to ashes and again we may lose the peace. We do not quail before the foe in the field; but we may well tremble at the thought of what may lie before us when the struggle is over, when we are faced with the awful task of reconstruction.

It is, I apprehend, by no means true to blame everything upon the Peace of Versailles. That settlement was framed with all the wisdom and ingenuity of which the statesmen of that time were capable, and we need not underrate their ability nor doubt their wisdom. It is so easy for anyone to be wise after the event; to find fault and point out the mistakes that were made. Wisdom lies in profiting by the mistakes of the past and determining not to commit similar ones a second time. I have nothing to say of the territorial provisions of the Treaty, because I do not think that they were the cause of the subsequent breakdown. Probably they were as good as the ingenuity of their authors could devise. But rather I would say the real mistake lay in an utter failure to grasp the one essential fact that the monetary set-up of the world was in complete chaos, a chaos more complete and devastating because bankers and finance ministers were still bemused with the preoccupation of the pre-war monetary theory.
The Price System and the Procurement of Essential Supplies
Authors: Mackintosh W. A.
Published: June 2006

Professor bates's paper has set the whole background for a discussion of the price system in war-time, and has raised important theoretical problems. I propose to deal rather with specific measures, of policy and organization which have been undertaken in the present war period, and lead up to some indications of the serious problems which loom ahead.

I shall have little to say here on the broad problems of controlling inflation. These have been attacked mainly by fiscal measures, though the co-ordination of such fiscal measures with other policies of control is of the most vital importance. The foundation of price control has been since September, 1939, and must in large measure continue to be, a fiscal policy which has endeavoured to channel the increase in purchasing power through the Treasury into the procurement of essential supplies. Such specific measures as the Excess Profits Tax have had a very important influence in reducing the incentive of the business, seller to raise prices, though the Excess Profits Tax doubtless has an opposite effect on the business firm as a purchaser.

By luck and good management, fiscal policy has been so far reasonably successful, but it has up to the present not encountered really serious inflationary problems. It is sufficient, however, to say here that without an appropriate fiscal policy no measures for the control of prices or supplies can be fully successful.

For my own purposes I suggest three elements of background for a discussion of this subject.
Excess Profits Taxation. I. The Canadian Act and Its Administration
Authors: Tolmie J. Ross
Published: June 2006

The basic principles and purposes of the Excess Profits Tax Act 1940 might be said to be twofold. (1) The Moral Aim of Taxing Excess Business Profits, excess being defined as the difference between your war-time profits and your pre-war profits. This aim, in the opinion of some, springs from political soil. Dr. Harley L. Lutz of Princeton University has said of the American Act: “There is only one case for the excess profits tax and that is the political case. There is no real danger of creating war millionaires this time.” Possibly some Canadian economists may agree with him, but I suggest that advance statistics of 1940 profits and taxes from a considerable sample of Canadian companies might indicate striking evidence to the contrary. (2) To Secure Revenue from Business Profits to Finance the War Effort. As indicated in the last budget, the Excess Profits Tax Act is expected to produce $220 million in a full year. The revenue is to be produced only partly out of excess profits since there is a minimum tax now of 22 per cent on total profits if the 75 per cent tax on excess profits does not exceed the 22 per cent tax on total profits. Thus even the business which was highly prosperous during the pre-war period and has not increased (but may even have decreased) its profits since the war began, will pay a very substantial tax under the Excess Profits Tax Act.
The War and North American Agriculture
Authors: Patton Harald S.
Published: June 2006

War-time Agricultural Exports. The first world war and the present world war were preceded by periods marked by fundamentally opposite trends in international agricultural trade. The period extending roughly from about 1840 to the outbreak of war in 1914 was characterized by a continuous expansion in the volume and range of importation of foodstuffs and agricultural raw materials into the British Isles and later into industrialized continental Europe from overseas countries. While the dominant position in this expanding overseas agricultural export trade was held by the United States, a definitely rising participation developed after the turn of the century by the British Dominions, Latin American countries, British and Netherlands India, and the African possessions of European powers. Despite the rise after 1880 of agricultural protectionism in such European countries as France and Germany, growth of population and industrialization in Europe was reflected in a steadily increasing volume of agricultural imports into that continent, and after 1896 by a gradually rising trend in world prices of most agricultural staples. This was the great era of the international gold standard, of the free export of private capital, and of free world markets.

Although the first world war disrupted this competitive pattern of world agricultural specialization and trade, it greatly stimulated the agricultural export trade of overseas countries, especially of North America, to the allied countries, and this movement to Europe was substantially maintained during the twenties through the twofold influence of American and British foreign lending and investment and of the virtual disappearance of Russia as a significant and dependable agricultural exporter. Between 1925 and 1930 world agricultural trade rose to record levels, but in the later years mounting world stocks and gradually falling gold prices of most staples gave statistical warning of a developing disequilibrium.
The War and Canadian Wheat
Authors: Britnell G. E.
Published: June 2006

A Canadian wheat problem had existed, in one form or another, for ten years prior to the outbreak of war in September, 1939. Economic nationalism and world depression had brought shrinking export markets and ruinously low prices to the wheat economy of the Prairie Provinces; drought and soil drifting had brought complete destitution over wide areas; and crop failures in Western Canada had placed a heavy relief burden on the federal Treasury and redacted sharply on the economic life of every province in the Dominion. Surplus world wheat stocks had accumulated rapidly after 1928 (see Table I) but were reduced between 1934 and 1938 by lower average yields so that by the end of the 1937-8 crop-marketing season both world and Canadian carry-overs were back to normal levels or even lower. As a result, both world and Canadian wheat prices began to rise in 1936 and, although subject to fairly wide swings, were maintained for nearly two years at the highest levels since the fall of 1929. However, in 1938 world wheat production reached an all-time peak with good yields harvested from a record world wheat acreage; the Winnipeg cash price of No. 1 Manitoba Northern wheat, basis in store Fort William-Port Arthur, fell from $1.49 a bushel in January, to an average of 59 cents in November, and governments intervened to support prices paid to growers in each of the four major wheat-exporting countries of Canada, the United States, Argentina, and Australia. A t the end of the 1938-9 crop year, despite a moderate increase in international trade in wheat, the world wheat carry-over was approaching the 1934 peak; world wheat production in 1939 was second only to the large crop of 1938; and world supplies of wheat were the largest on record.
War-Time Labour Problems and Policies in Canada
Authors: Stewart Bryce M.
Published: June 2006

The comment is often made that Canada has no war labour policy. Before dealing with this question, it may be well to consider some of the difficulties that attend any effort to determine and administer a national labour policy, especially in time of war. The problems of geography, uneven distribution of population, depressed areas, concentration of industry, and varying standards of living, together with the many revisions of policy necessitated by an ever-changing war need, can only be mentioned, but they constantly intrude on plan and practice. Inertia, easy assumptions that the ways of peace need not be changed materially and that the methods of the last war are good enough in this crisis, put a brake on the formulation of plans and their prompt execution.

There are Canadians who still do not realize, as Mr. Menzies, the Prime Minister of Australia, said, that the British people are engaged in the deadliest war of their history. Some employers and workers do not appreciate the proportions of the war programme or the necessity for many departures from peace-time procedures. Certain firms still feel that they will be able to secure all the labour they require and respond but slowly to appeals to train more workers, to thin out their skilled staffs, and to up-grade labour. Although the Minister of Labour has received a number of voluntary offers from trade unions to work longer than the usual hours at straight time, there are those who hold that the forty-hour week, urged in depression years as a device for spreading work rather than increasing earnings through higher overtime rates, should be maintained.
Some Economic Aspects of Air Transport
Authors: Currie A. W.
Published: June 2006

Aviation changes so rapidly that one is virtually compelled to acquire wings oneself in order to keep up with it. Moreover, there is a scarcity of accurate information on many matters in which the economist is particularly interested. Nevertheless it is worth while to outline some of the economic aspects first of air transport in general and, secondly, of airplane transportation in Canada. The analysis is necessarily incomplete but it is hoped that it will serve as a basis for further discussion.

Air transport can best be dealt with under its most important characteristics—speed, reliability, safety, cost, scheduling, completeness, and comfort. Speed, of course, is the greatest single advantage of airplanes over competing forms of transportation. The characteristic of speed arises both from high speeds per hour while in motion and the fact that the planes can fly in a direct line without much regard to the underlying terrain. Scheduled aviation maintains an average of 180 miles per hour in the United States. On the San Francisco-New York fast sleeper service, however, the average speed is 165 miles per hour compared with 161 miles per hour on Trans-Canada's Vancouver-Montreal service. As these figures include stops, flying speeds are more than 200 miles per hour. Because air resistance increases as the square of the speed there would seem to be definite limits to still higher regular speeds except, as in military service, where costs can be ignored. On the other hand, past experience with prophecy in aviation indicates the dangers of prediction. Moreover, sub-stratosphere flights at upwards of 400 miles per hour are an immediate possibility. Speed is significant mainly in the longer hauls for in the shorter distances the time involved in going between the terminal airports, which are usually on the outskirts of the city and downtown business sections, offsets any reduction in travelling time in the line haul. The terminal difficulty may be overcome by taxicab services to and from the fields or by higher line speeds or by the expensive process of locating terminals near down-town areas.
Sociology as a Specialized Science
Authors: Dawson C. A.
Published: June 2006

Comte, writing a century ago, claimed that in human affairs we were just entering the scientific stage. Already the physical sciences had made an auspicious beginning. They have made spectacular advances since Comte's pronouncement. Nevertheless, extensive areas in the physical sciences remain to be explored. Still wider areas in the domain of the social sciences await systematic investigation and precise analysis. The need for scientific advances as a means of meeting recurring crises in human affairs seems more necessary than in the days of Comte. It is quite evident today that we have greater sophistication, more extensive questioning, and a more marked social self-consciousness. The word scientific, widely and loosely used, seems to symbolize the temper of our age.
Decentralization and Democracy
Authors: Innis H. A.
Published: June 2006

This paper is concerned with the changes in types of power in the Atlantic basin following the discovery of America. Direct control from Europe under the French, Dutch, Spanish, and British Empires has gradually changed with emergence of independent states in North and South America and of the British Commonwealth of Nations. In Canada European institutions were more strongly entrenched and feudalism continued to exercise a powerful influence, latterly, for example, in the control of natural resources by the provinces. The provinces have become land-lords with great disparity of wealth varying with federal policy, technological change, and provincial policy. The changing disparity enhances the complexity of democracy in Canada.

The advantages of the British Empire in its struggle with the French Empire were in part a result of the implications of imperfect competition between drainage basins in the interior as contrasted with more effective competition between the maritime regions of the Atlantic seaboard. In the latter region, imperfect competition was reflected in the slowness with which adjustments were made between the West Country in England, Newfoundland, Nova Scotia and New England. In the interior of the continent competition was less effective in the struggle between traders of various nationalities or of the same nationality as it was carried on between drainage basins. Trunk rivers and tributaries with low heights of land between drainage basins facilitated the tapping of vast regions. The relative effectiveness of competition on the seaboard and in the interior of the continent had implications for the struggle of empire.