The sun., 1919-07-10
CANADIAN CABINET
SHAKEUP COMING
White Pressing Resignation
e. From Finance Portfolio,
Now the Most Crucial.
UNIONIsT PARTY TO STAY
Foster and Doherty Likely to
Retire-Heavy Spending
,. Still Inevitable.
~ q stsn cerrsspon6ent Of Tn sus.


OTTAWA, July e.-sir Thomas White.
Minister OF Finance in the Government
Of Sir Robert Borden. IL pressing his
resignation on the head of the Cabinet.
and while neither the Premier nor the
Minister OF Finance will give definite
confirmation. IL is believed the change is
imminent. Reorganization Of the Cabinet
to give Quebec better representation and
for other reasons of political strategy
was promised Parliament by Sir Robert
Borden. The National Liberal Conven-
ton will meet here August to z In
the meantime the Prime Minister will
not put his cards on the table.
1t is agreed that the Opionist party
is to be a permanent factor in. politics.
Men like N. w. Roweli, ]. A. Calder. A
l. Sifton, A X Maclean. all Liberals
will be retained. They are all Wig
orous, strong factors in the Gov
eminent The retirement of Sir Thomas
White, Sir George Foster and C.
]. Doherty, all Conservatives, 10 prob
able. Sir George Foster is no longer
young. He will retire with honor and
will always be regarded rs q reserve
counsellor. Mr.. Doherty. as Minister Of
Justice. upheld the sacred and honorable
name Of his department Service on the
Peace Conference delegation was credit
ably performed by these veterans.
Discretion In Retirement.
Sir Thomas White is at the zenith Of
his career as Minister OF Finance. To
remain in office would be TO invite In
heritance of responsibility, from which
he may escape on the assumption that
discretion is the better part OF valor. He
knows from experience with the Cana
dian Bankers Association that It is much
easier to manruvre dubious members OF
Parliament than to manage generals OF
finance. When It comes about that re-
iected advice of those bankers rises up
in Judgment, the self-willed but not far
seeing Sir Thomas decides II Is best to
retire.
The bankers, brokers' insurance and
loan company leaders advised against
exemption Of Canadian Government war
Nonds from taxation. They urged that
that policy would put investors at a
great disadvantage and that 1t was safe
TO rely on the patriotic war spirit; that
the public with savings and pronts
would prefer Government securities ana
that other enterprises would suffer. II
was not sound public finance, he was
advised, to exempt so large a portion
OF taxable securities.
In one respect the bankers were In
errort they underestimate the financial
strength Of Canada'e savings, which are
greater than ever before. having
amounted to 3l,So4,64s,o3+ last March
81. Sales OF securities on the Montreal
and Toronto exchanges have been large
for some time, just as in New York.
Government bonds are steadily moving
into the hands OF fewer holders and
becoming the property OF those whose
income 10 hardest hit by the income
suYtax in it's high demands on tho larger
incomes. Many war bonds were bought
up. by people who were able to finance
the temporary aid to their country, but
who never were counted in the class OF
savers. They are now disposing OF
their bonds Every week from half a
million to a million dollars In bonds
goes through the Toronto and Montrea
exchanges: IN addition many transac'
tons proceed in other circles. The long
tsrm bonds which are least Desirable
| to the small spender, are most attrac'
tive TO the income tax evadsr. Those