Evening star., 1941-07-06
Canada to Assume Large Role
In World Affairs After War
u. S. Moves for Collaboration Receive 100 Per
Cent Approval; Dominion Doing Its Bit
to Help Great Britain
By Felix Morley.

current year. All told. the armed forces
of Canada shortly will number close to
half a million men, out of a total popu-
lation of about II 500 900. 1t is true that
Canadian casualties to date have been
less than 1000 but this is wholly due to
the fact that the eXpeditionary force
has been held in reserve against a pos
sible invasion of Great Britain.
Canada's financial contribution has
been as striking. Out of total budget
of S2,650,0O00OO for the current fiscal
year March 81, l941. to April !, 1922
war expenditures will be over So 100000
600. This is huge proportion of ma
tional income estimated at slightly less
than S6000,000000. OF the current out
lay. s732 900, 900 is to be raised by direct
and s637 900 900 by indirect taxation, in
volving burden far in excess of that
to which American taxpayers are as yet
accustomed.
High Income Taxes.
The theoretical policy of the Canadian
government is to pay for the war "as it
goes" and to make this policy effective,
tax rates have been sharply increased
and exemptions lowered. A married
Canadian with no dependents and an
income of $1,000 will pay federal income
tax Of 81 900, as against S555 in 194C and
S144 in 1899. 1t is not surprising to
learn that many in the professional
classes are in consequence giving up
servants, who are wanted for war in
dustries, and automobiles, which involve
heavy indirect taxes, both for purchase
and operation.
NonethelesS it is proving impossible to
cover Canadas mounting war costs out
Of current revenue. In consequence.
loans are adding to the already heavy
load of Dominion debt. Up to June
about S645,000000 had been borrowed
from the public in two war loans. A
third loan of s600,O 900, the largest
hotation ever made in Canada, has
within the past fortnight been triumph
antly overSubscribed, with cash sub
scrlptions of over S700 900 900 from al
most 100000 individual purchasers.
If Canada were thickly populate
and economically highly developed, ttc
tremendous expansion involved in tha
present spending program would arouee
reasonable alarm. But huge sections OF
the country are so sparsely settled. and
lndustrlalization has been so backward
by American standards. that there may
be no serious postwar reaction from the
present boom
New Canadian industries are spring
ing up under the stimulus of war condi-
tlons and in many cases they seem Ger
tain to continue in operation after the
close of hostilities. One illustration is
the rapid growth of the chemical indus
try. Another is shipbuilding, which en-
ployed only 1900 men in the entire Do
minion at the outbreak of war.
Shipbuilding Industry.
Now the Canadian shipbuilding pro-
gram calls for the construction of over
100 freighters of 10000 tons. While this
is primarily to maintain the supply line
to Britain there will in all likelihood be
an important postwar Canadian mer-
chant marine, Well-manned by able Ca
madam sailors.
More efficient government is also being
forced by present pressures. 1t is true
that consideration of the important con-
Stitutional changes of the Rowel- -Sirois
report, recommending enlarging Do
minion authority at the expense of the
provinces, has been temporarily post
poned.
Whatever ruin the war brings else
where, it is not unlikely to prove the
making of Canada as a great nation.
That country is no longer to be regarded
as merely an overgrown British colony.
1t is decidedly not to be viewed as an i'm
mature ward of the United States.
The Dominion stands on its own feet
now, and will do so with even greater as
surance and more definite purpose after
the war Heretofore overshadowed by
Great Britain on the one hand and by
the United States on the other, Canada
will, by all portents. play no mean role
in the chapters Of world history to be
written when the war is over.