Evening star., 1935-03-10
BY II. CARL GOLDENBERG,


@HE New Deal marches on. 1t
passes the confines Of the
United States. It finds an eX-
L ponent in England in the per-
son of Lloyd George and is the
model of new industrial legislation in
France. 1t now comes to Canada. Its
broad outlines there have been for
mulated in a series of radio broad
casts. 1t is built on the following
premises:
Capitalism must change to meet
the changed conditions of the New
World, if it is longer adequately to
serve yoS"
THE profit motive has served the
people these many years and 1t Will
continue. But could you leave it un-
restrained, uncontrolled. free to do as
it pleases? That is license"
I'VE must now have a social ideal
as distinguished from what we con-
ceived to be individual right"
II am for reform. and reform means
government intervention. 1t means
government control and regulation. 1t
means the end of laisseZ-faire. There
can be no permanent recovery without
reform"
Benefits Views.
The speaker is not the leader Of
Canada's small Socialist group, nor
is it a brain truster" delivering an
academic lecture. 1t is r. B. Bennett,
Conservative prime minister of Can
ada, mailing the New Deal plank into
the election platform of his party. 1t
is Mr.. Bennett throwing a bomb
shell into Dominion politics.
This is an election year in Canada.
The terms of Office of the Bennett
government is now expiring. 1t must
seek a renewal of the mandate which
it received at the polls in 1880. when
it defeated the Liberal administration
of Mackenzie King. 1t attained power
on the crest of the wave which in de-
pressions upsets governments indis-
criminately. It's platform contained
nothing unusual, nothing radical.
It was elected on the traditional
Conservative policy of higher tariffs.
It summoned a special session OF
Parliament Immediately after the elec-
ton in order to put this policy into
effect. It raised Canada's tariff to
the highest point in its history, and
then negotiated an empire trade
agreement. Beyond this it relied on
natural processes of recovery. But
as the depression became more serious,
the natural" forces did not seem to
assert themselves. High tariffs did not
Danish unemployment. In fact, the
situation grew constantly worse.
Forced in Modification.
Mr.. Bennett was compelled to mod
ify some of his principles: he began
to administer direct relief to the un-
employed; he came to the rescue OF
the credit of the bankrupt west
ern provinces. The small Socialist
group in Parliament urged drastic re-
form measures, but they were re-
ceived with contempt. State inter-
vention and regulation were heretical
to the Conservative party.
Then came Mr. Roosevelt and the
New Deal. The facts of geography
had created close economic relation
ships between Canada and the United
States; it was inevitable that the
new program would affect the Do
minion. At the outset Mr.. Bennett
declared that there was no room Tor
an N. r. A. in Canada; that CANADA
was recovering without state inter-
vention. His theme was seized upon
in anti-Roosevelt circles in the United
States; financial journals pointed to
recovery" In Canada as an example
of the operation. of natural forces, un-
hindered by state interference. But
a change was soon to come; the facts
of economics and politics are all-pow-
erful.
The distress of the producers Of pri-
mary products in Canada, deprived OF
their foreign markets and the defeat
of the Conservative governments IN
two of the provinces led to partial
of Mr. Bennett in 1884. The
legislation enacted by Parliament last
year manifested the first influences OF
Mr.. RooSevelt's policies in Canada.
The provisions Of the Dominion COM
panies' act were made more stringent.
Monetary legislation was modified by
reducing the required gold reserve
against notes, with consequent ex-
pansion of the currency. A moderate
public works program was initiated.
The farmers debt burden was reduced
by the enactment of farmer-creditor
debt adjustment acts. The natural
products marketing act was passed.
with extensive powers Of government
control and regulation; it was the
most radical and the most bitterly de-
bated measure of the session.
Such was Canada's first installment
Of the New Deal. It was not ushered
In with the enthusiasm displayed by