The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-23
Create Feeling Of Confidence
in Financial and Bust
ness Circles.
TAX PROBLEM UNSOLvED
Decreasing Import Revenues
May Require Longer Period
of Lcvies Than Expected.
SprcinI DrsnnfcA 10 TIE SuN.

batuefeIds, Here as In tho Jni'eu
States the important successes won by
the Allies have created new feeling OF
confidence which necessarily has a ten
dency to strengthen materially the IMAM
cial structure. There Is manifested here
not only by bankers and business men
but also by all other classes OF the peo-
pie the greatest pride and pleasure over
the glorious achievements OF the Amer
lean forces in conjunction with the
French. The Kaiser's Generals now
have had a practical demonstration on
. rather largo scale OF the quality Of the
men from the western world who will
shortly be fronting them In millions.
The successes 90 far won by the Allies
IN this last great series Of battles have
reacted favorably on the financial situa-
ton here in that they have raised strong
very distant date In view OF the pros
psctive large increase in numbers Of
American troops in France It 10 thought
hat the point will soon be reached at
which the Allies can either deal the de-
cisive blow to the enemy in France or
hold there all his available forces while
the decisive stroke II delivered else
where These conJectures and reason.
ings have already had an effect through
creating the belief that many OF the
special burdens and restrictions recently
placed upon finance and industry may
DO removed before very long. Also
some cherish expectations that certain
burdensome special taxes may be abol-
ished within year or two II the war
ends 80 soon.
On the question OF taxation generally.
however. 1t is not yet clear whether
there would be in Canada substantial
remissions Immediately after the con-
olusion Of the war. This will depend
largely on the amount of revenue de-
rived from the income tax and from the
state Of the Dominion's foreign trade In
the posi- -bellum period. At present the
revenue sufiices to cover all ordinary or
current expenditures of the Government,
interest on the expanded public debt.
pensions, &C., with q fair balance over
to apply on Canada's war expenses.
But partly as q result of embargoes.
prohibitions and other artificial restric-
tons. the imports into Canada are show
ing a tendency to fall and this neces-
sarily means a declining customs reve-
nue. II at the end of the war the for
eign trade Of the country. particularly
the import trade. has been materially
reduced, the customs revenue at that
TINA may not be large enough to permit
OF abolshing any Of the important spe-
sial taxes.
McAdoo Wage Scale.
It was foreseen when the Director
General of the United States railways
recently granted the wage increase to
railway employees, at tho same time
granting the transportation companies
supplementary increase Of rs per cent.
in freight and passenger rates, that
Canada would then be obliged to reopen
the whole question Of railway rates, as
Canada railway workmen would be sure
TO demand a wage Increase equalling
that received by railway men In the
United States. AZ anticipated the de-
mands for higher wages were promptly
formulated. and the matter has been
since engaging the attention OF Canada
Railway War Board. The Railway Fed
Grated Trades have been pressing their
demands very earnestly and thrcstened
to strike II they were not complied with.
The Government at Ottawa. in view
OF the strong opposition of western
Canada to the Is per cent. rate increase
gran ted in March, has naturally been re-
luctant TO ecQuiesce In such a sweeping
wage increase as would necessitate an
other very large increase In railway
rates: but in this case there was APP
no way OF avoiding the wage
increase, and It was dangerous to tenn
porize. Hence last weeks announce
ment from ottawa to the effect that the
War Board, on the Recommendation OF
the Government, would offer all railway
employees in Canada the terms OF Nc
Adoo's award as II stands now and as 1t
may be amended at a later date. This
offer was made In the belief that 1t
would be accepted and the threatened
strike averted. The representatives OF
the Canadian railway men In the discus
sion OF the wage question objected to
some OF the provisions OF the McAdoo |
award and appeared to BIO unwilling to
accept them, but II rs thought these OBJ |
jections will be waived and that the
matter may be considered as virtually |
settled.
The Rate Question.
At any rate. the War Board issued an
order increasing wages as follows:
THAT not later than the LIST OF August, |
1918. and so much earlier as the various
wage schedules have expired, dating |
back in many instances to the LIST of
May. 1918. the so-called McAdoo award |
affecting the wages and hours OF service
OF railway employees in the United
States shall be put in force In Canada"
This is to apply to all railway en-
ployees. whether organized or not or
ganized. male or female. earning In De-
cember 81. 1915. less than $4,000 per
year.
Tho estimates are that this wage in
crease will represent an additional sum |
Of between $4,000. 900 and $S0,000,o00 |
per annum. which the railways must |
provide In connection with their wage |
sheets. The War Board concluded Its |
statement by remarking that the action |
Is only possible and that the Increased !
wages can only be maintained II the |
are permitted to increase |
freight rates as in American territory. |
the Increase to railway workers being |
made to prevent industrial unrest and In |
the hope OF an increase in freight rates. |
1t remains to be seen how promptly |
and to what extent rates will be raised.
Tho Railway War Board. OF course, has
no authority to grant increases of rates.
itR functions covering the control and |
regulation OF railway operations in war
time. The Board of Railway Commits
siorers will require to award the in
crease, and there Is the question of
political pressure from the west upon
the Dominion Cabinet. In this case the |
Cabinet was In full conference with the |
War Board before the wage increase