New-York tribune., 1919-12-13

Doing away with many exemptions
and imposing taxation on all classes
O. the commupity who have the ability
to pay, and placing a high tariff upon
imported luxuries, would, believe,
cause little hardship and consderabl
ease strained financial situation, be-
sides giving all persons in Canada
more immediate interest in the eco
nomical administration of our public
affairs.
Canada can and will meet all her
obligations, and of her ability to do so
no more conclusive evidence need be
given than the immense subscription
to the recent Victory Loan.
With regard to the subject of for
eign trade, it is only q matter of time
before increased production will over
take domestic demands, and unless
preparations are made in advance or
finding markets overseas for eur ex-
portable surplus of raw materials and
manufactured goods, our uninterrupted
prosperity may be checked. The needs
OF foreign countries are great and
pressing and profitable business awaits
the Canadian exporter, but it cannot be
acquired unless long term credits are
provided
Sir Frederick Williams-Taylor. in
his review of the business year. said
in part:
No Profiteering by Banks
1t seems to me of sufficient impor-
tance to bear repeating that there has
been no protiteering whatever by the
banks of Canada. for the price Of money
has not been raised. Alone of all com
modities the cost to the borrower of
loanable funds of the banking institu-
tlons of this country remains un-
changed. Not only is this the case,
out, speaking for ourselves, it seems
only proper for the shareholders to
know that in handling business entrust-
ed to US by the several governments
during the war and since our policy
of commissions and minimum interest
rates. In many instances, where the
services were of war character, we
have acted free of charge.
Problems of Exchange
the increase in our national debt and
in our Canadian currency circulation
are matters of deep interest and should
be studied by all.
The purchasing power of the Cana
dian dollar in the United States has de-
creased. as reflected in the premium on
New York funds. A year ago it cost
two dollars to send one hundred dol
lars to the United States of America;
to-day the cost is four dollars and
twenty-five cents.
1t is true the balance of trade was
in favor of Canada to the extent Of
s340,000000 for the year ended 31st
October last, but whereas we paid for
all our purchases abroad we have, in
~he same period, shipped goods on
credit to England and Continental
countries to the extent Of many mill
ions not easy to estimate besides
sending out of Canada annually about
5000 900 900 interest on our recorded
indebtedness abroad mainly to Great
Britain and the United States. These
facts alone would not create an ad-
verse exchange to the extent that eX-
lists, but in addition there are the in
visible earnings in the Dominion of
foreign business corporations, chiefly
American, seeking return to propri
etors abroad. The disadvantage Can
ada is under in respect to the premium
on New York funds will last until the
ebb and flow of such funds are equal.
Repayment to Canada of the moneys,
aggre eating $42O,000,000, owed us by
Great Britain and the Allies, would
quickly cause the premium in question
to disappear. We naturally shall be
repaid In the fullness of time, but it is
we'll to bear in mind that an allevia-
ton of the penalty can as surely be
found by dminution of imported lux
uries as it is certain that the penalty
in part is caused by such importa-
tions. Also, the situation could be re-
ieved by borrowing in the United
States, but this course is to be depre-
Gated and would not be cure, but
merely postponement of payments.
The true remedy lies in increased pro-
duction and the ecohomy that would
be reflected in resumption of those
personal sacrifices OF pleasure made
during the war. 1t is here in place to
remark that in the eyes Of Europeans
the people of North America are ex-
travagant and wasteiu.