Evening star., 1941-10-26
Canada's 'Guns>or>Butter' Step
REGARDED as POrtent for L. S.
Two Nations Differ, But Nevertheless the Moral
Is Nazs Can't Be Beaten Under
Business as Usual
BY Felix Morley.

of wages and prices is arousing keen in
terest in Washington. 1t is made public
as the lengthy hearings of the House
Banking and Currency Committee on
this general subject draw to close.
Nearly three critical months have passed
since President Roosevelt, in his message
of July 30, urgently requested price
control legislation. Now, before bill to
that end is even drafted, comes the swift
and energetic Canadian action in this
field.
Some Differences Noted.
Dr. Isador Lubin, the Commissioner OF
Labor Statistics, has told this House
committee that there are reasons for the
action of the Canadian government
which have no applicability in the
United States. One of these is that in
voluntary unemployment is now elimi-
mated in Canada. The inference is that
without full employment ceiling on
wages does not have so much advantage
in discouraging competitive bidding for
workers and therefore would not be so
effective in reducing turnover in war
industries.
In other respects, however, differences
between the Canadian and American
situations would seem to favor dupHca-
ton of the Canadian experiment here.
Canada has had no experience of the
epidemic of wage strikes in war indus
tries which has so materially impeded
defense production here. And even be-
fore PRONUNCIATION of the new controls
the risk of a runaway price level in
Canada seemed less than in the United
States.
Mr.. Mackenzie Kings bold program is
Endorsed in Canada both as preventive
of strikes and as an anti-inf1ationary
measure. Particularly in the latter re-
spect the results of the Canadian expert
ment are likely to prove influential in
American thinking For every one is
now beginning to realize that present
restrictive measures are not preventing
a rapid price rise in the United States.
This is now affecting living costs in
way which can no longer be concealed
from the ultimate consumer.
At Least Two Years More of War.
The timing of the Canadian action is
not without significance. 1t is announced
by the Prime Minister, who recently
returned from conferences with the
British war cabinet, coincident with
the accumulation Of bad news from
Russia. The successive disasters sus-
| tanned by the Russians are taken to
! zf
require at least two more years of war.
1t is with a view to that eventuality,
and all implied thereby, that Canada is
imposing rigorous Federal controls over
! prices, rentals. wages and farm incomes.
Canada is an active belligerent, sus-
! tanning g. substantial expeditionary force
overseas. Theoretically, the United
| States is still at peace. Our people are
only just beginning to think of this
country as a reservoir of manpoWer as
well as an arsenal of democracy. But
as We move nearer large-scale hostilities.
the necessity of Government controls
never before anticipated for this coun-
try will become evident. Germany will
never be defeated on program of busi-
ness as usual.
| That is the real moral for this country
in the drastic measures now being ap-
piled in Canada. And that is why Wash
ington, which is usually rather indiffer-
ent to Canadian occurrences. has in this
instance sent officials of o. P. A. flying
posthaSte to Ottawa. They have noted,
| incidentally, that the program an
nounced by Mr.. Mackenzie King IS not
merely q wartime measure but is to be
continued after the war Ito facilitate
recovery and reconstruction"
There is no comment from Berlin on
this evidence that Canada, at least, re-
CARDS the war as being still in its OPEN
ing stages. But if imitation is the sim
cerest form of fattery there must be
some qualification mingled with what
ever anxiety the Nazis feel.
When they put price and wage con-
trols into effect, the move was denounced
on this side of the Atlantic as sign of
economic weakness and dictatorial
prediction. Now Mr.. Mackenzie King
adopts even the gums versus butter
justification in applying to Canada the
same controls which Marshal Goering
ordered for Germany five years ago.