Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-14
CANADIAN PREMIER
PUSHING PROGRAM
OF PUBLIC WORKS
Bennett Acts to Cut Down
List of Unemployed
in Dominion.
CURTAILED PURCHASING
DELAYS TRADE RECOVERY
Railroad Head Points to Surplus
Goods as Chief Business
Problem.
BY JOHN F. SINCLAIR.

new Prlme Minister OF Canada, II. b.
Bennett, has lost no time in asking the
House of Commons for 100000 to
spend on public works and construction
to aid the unemployed. He proposes to
build wharves, bridges and roads, as
we'll as to help the provinces in local
work. And he wants the money right
away.
In addition, his government is intro
ducing amendments to stop foreign sur
pluses being dumped in the Dominion,
and thus give employment to another
$4,000 men,
ThOrntOn's Views.
A day or two ago I asked Sir Henry
Thornton, president of the Canadian
National Railroad, for his views of the
business situation.
During the war, production in prac-
tically all countries was excited to its
military operations and the destruc-
ton caused thereby said Sir Henry
Enormous numbers of motor lorries
were built, large tonnage of iron and
steel was necessary for arms, projec-
tiles, war vessels and the replacement
of mercantile ships sunk by submarines.
Food stuffS, fabrics, rubber supplies,
medicines, chemicals and, in fact, all
forms of production were in great de-
mand. In many countries private in
dividuals were encouraged to estab-
lish manufacturing plants. In some
cases these plants were subsidized by
the state.
After the war production con-
tinued to be maintained for the re-
Mobilization of devastated areas and
the replacement of various things
which the results of the war neces-
STATED. 1t is true that some so-called
asW1r ahincN uyaT1t nf avicfnTna
many individuals, who had put their
brains and money into plants, turned
these plants into the production of
articles required in times of peace.
This meant continuance of employ
ment, with good wages to workers and
dividends to proprietors. The mass Of
the people being thereby prosperous,
bought largely, which also contributed
to production, and this situation con-
tinued for several years. Individuals
having plenty of money not only pur-
chased generously. but were attracted
to the stock market, the result being
the progressive increase in the stock
market value of shares and securities.
Eventually, however, production ex-
ceeded consumption, prices commenced
to soften, and one fine day, under
pressure, the stock market blew up.
This revealed the true state of affairs
and production Immediately began to
liquldate. In short, the present Situ-
alton was caused fundamentally by
production exceeding consumption, and
we shall not have a restoration to
normal business conditions until a bal
ance is struck. How long this will be
hardly any one can predict with any
degree of certainty, but I should think
it would be rather shorter than longer
now.
"As far as Canada is concerned. there
is nothing organically wrong with this
country. We have the same produce
tive soil, the same water powers, the
same mineral resources, the same
manufacturing plants and the same
courageous people that we had ID
months ago.
I'm Canada our dificulty largely
arises from the inability of our
customers to purchase on a generous
scale. Canada is, and must be, es-
sentially selling and marketing
country. If we relied upon the home
consumption provided by 100000
people. our economic position would
be very difficult. The prosperity of
this country depends very largely on
how much of our production can be
sold abroad. So that whatever the
business condition may be at the
moment in Cknada, it is caused by the
where. 1 think our situation is
generally better than in most countries,
but we are so involved with our
customers abroad that we are not likely
TO have complete return to normal
conditions until our markets are
restored
Sir Henry estimates that the gross
revenues of the Canadian National
Railroad for the last quarter of 1880 will
be 4 per cent less than for the same
period of 1929. He believes this also
represents fairly we'll the general trans
portation situation in Canada.
German Election.
Today the German people are busy
more than 10000, 900 of them-select-
ing new members of the Reichstag in
what is probably their most critical
national election since the close of the
great war
A confused political situation exists.
Not one of the more than 20 parties is
expected to have a majority A COM
promise government Is in prospect. So
it's difficult to say which one will con-
troll the new Reichstag, although a So
cialist- Bourgeois looks to be the most
likely outcome, led by DIR. Joseph With,
former chancellor, and Chancellor
Bruening, at present German dictator.
Should the makeup of the new
ENClC1AsIdBS Dc OI a moderate blIlge, Ger
man credit throughout the world will
naturally be looked upon with more
favor by the banking groups.
Germany-her banks and corpora
tions-owe to the United States citizens
and corporations about $4,000, 00O. GOO in
short-time loans. Many of these loans
will soon mature. Some already have.
Should the political outcome today be
considered favorable to the business in
terests, the next step will be to re-
fund the short-term obligations into
longtime obligations.
Should the more radical groups,
either of Hitler or Hugenberg, gain con-
troll, the tendency, undoubtedly, will
be to delay such refunding and make
Germany's financial and business DO
iition more difficult and confusing.
It's an election charged with very
consequences. And the
outcome will be watched in every ma
ion in the world, but particularly in
Great Britain and the United States.
F. Edison White, president of Armour
Z Co., believes that the last quarter of
$50 in the meat industry win exceed
he last quarter of 1929, lower COM
modify prices being largely responsible,
In the general business outlook Mr..
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