The sun., 1919-10-09
CANADIANS FEAR
! Big SOLDIER BONUS
Sir Thomas White, Ex-Minis-
/ ter Of Finance, Says Gifts
s Would Impair Credit.
TO INCREASE LIVING COST
Close Retrenchment and Econ
omy Policy Is Needed at
Once, He Declares.
BY a ster Correspondent o, TIE Sun.

Z. ~ a ste6 Correspondent Of The Sun.
OTTAWA, Oct. s.-Sir Thomas White,
former Minister Of Finance. gave the
Parliamentary Committee on Soldiers
Civil Reestabiishment some hardheaded
advice this afternoon, calculated to call
them back to face the problems of
finance in connection with any large
scheme of gratuities or further money
for soldiers. Sir Thomas told the COM
mittee quite frankly that to issue any
large sum OF Government bonds to SOL
diers. as Is proposed by one OF their
leaders. would greatly influence the
credit of Canada. still further initiate
prices and AFFECT the cost OF living.
"If any such issue OF bonds were
made how could Canada noat another
1oan?" Sir Thomas asked. THE effect
would at once be felt in the United
States, where our credit and financial
standing are always important There is
only one country In the world that Is on
n better basis than Canada that In the
United States, the only country now on
= gold basis
Canada has 40 per cent. Of gold
exAinbt All ncT currency anu large buulb
to her credit abroad. and this country
should aim to get back on the safe basis
Of gold without any needless delay. Once
on a gold basis there would be no ques-
ton Of exchange discount. and the cost
of living would be directly affected. for
prices would come down. At present
there Is imitation OF prices and OF cur
rency. The sooner the country 10 run on
a close economy and retrenchment policy
the safer It will be-
Britain Needs Credit.
Speaking OF an Issue Of Government
bonds Sir Thomas said It would be
necessary for two years at least to
extend credit to Great Britain.
by such credit our farmers were able
to market their goods and get cash."
ne said. AT this date there are some
t170 100000 outstanding against Great
Britain over and above contra-war
claims: and SIS oo0.0oo each against
France, Belgium. Greece and Rumania,
besides 3s.ooo.ooO against Italy. To
continue to extend credit would test the
financial power Of Canada, without re-
sort to special grant
The Canadian customs tariff was
chic fly levied on an ad valorem basis.
Sir Thomas said. He foresaw the COM
ing OF lower prices by gradual process,
which meant less revenue for Canada
The income tax Of the country IL now
on the level Of the United States and
the business profits tax higher than the
American, he raid. He hoped for *zo'-
600, 900 from the income tax in the cur
rent fiscal year.
But there Is a limit in income tax
possibility for Canada" he said. I'm
Great Britain there is large accumulated
wealth, and large business and financial
resources to draw upon. but they are
limited in Canada"
]. A Calder. chairman of the COM
snittee. takes a serious view OF the SOL
diers demands. He estimates II VIII
cost from $500, ooo. 900 to $500, 100000 to
pay the soldiers plan.
Iuaatfon IL Blamed.
"Now from my reading OF the situa-
sion az Il exists, not only in Canada but
the world round, economists hold the
view that the high cost OF living In prac-
tically all countries, ana particularly In
the recently belligerent countries. is due
largely to the imitation OF currency and
the reduction OF the credit OF these
Countries reduction OF the actual
value of the dollar as a result OF debts
created"
The Deputy Minister of Finance gave
some complete figures on AFFAIRS. The
total revenue OF Canada for the last
nscal year was s312.s4S TAI; customs
made I'D s1471Ss.1s7: excise. $30.342.'
O34; income tax. S1o.9s2 1873: most Of
, fee and railways account for S70.s54.'
r Al, and other sources and taxes foi
the balance The regular experdM"re
on war last fiscal year was s446.b1s.'
3ss and for the current year Is esti'
mated at $3.50 900. 900. The net debt Of
Canada March 81, 1920. would bt
q $50. 100000. But this years consoli
, dated revenue receipts were estimated a.
$3.50. 0oO, 900.
a Income tax had been levied on 61,5S'
people In 1917. and the amount Of as
easement was s12 221 66s. Only 47.Osl
people paid and the amount coiiectet
-. was lust over $40 100000. Only S26
persons paid on incomes between 81 500
ana Sc ono ana 81 .4s9, 900 was collected
from them. ONLY forty persons paid OF
irccres over 100000. total OF 81.
100000.
Fa,,ure Of the Government to do tn
logical thing. adjourn this session o
Parliament and let the temperance cues
ton alone. has c.u~ed trouble In tn
political camp. Twenty-Five coneerva
tive JJn,onists from Ontario waited o.
the Government to-day and asked 10
a party caucus to deal with the prohibl
ton bills introduced yesterday. TIL
o. carc1rs meets on Thursday.
The bills are objected to on the groun
that by throwing responsibility on tn
provinces new obstacles are thrown
the way OF Premier Sir William Hears
q. in the Ontario elections. Had Parlia
ment gone on its way home and waite
until the Ontario referendum had toll
tn. rorrt-v what Ontario wanted a
would have been we'll But the temper
aroA -trateR'-ts at Ottawa. IKE those g
Washington last year. have overreache
them ewes and the thing Is done. Tax
ticai victory Is with Rowell and III
advanced temperance element. but sus
picion and antagonism have bee
aroused.
MECHANICs' LIENS.
Manhattan.