Evening star., 1941-10-26

From Ottawa Mr.. Mackenzie King has
broadcast to his people warning that
Canada, like Germany before it, must
now choose between guns and butter.
The Canadian Prime Minister'S repe-
tition of Marshal Goering's once much
derided phrase falls like shadow OF
coming events across the border between
the Dominion and the United States. II
there Is need in Canada for the au-
thoritarian measures scheduled to take
effect November Is. the probability of
their eventual adoption here is strong.
Indeed, in some respects there seems
less urgency in Canada than in the
United States for the drastic steps in
price and wage control which Mr.. Mac
kenzie King envisages Since the out
break OF war the price level in Canada
has been surprisingly stable. There
have been relatively few strikes for wage
increases. Canadian farmers have not
received the legislative favoritism &C
corded that element here. So 1t is not
surprising that the Dominion has been
severely startled by the radio address
of its chief executive on October 18.
1t is true that Canada Is devoting
nearly half it's national income to war
production, whereas the comparable
figure for this country is still only about
20 per cent. But the victory program"
now being evolved in Washington calls
for an even greater percentage concen-
tration on defense than is now being
made by Canada. And it would therefore
seem to call for the same sort OF con-
trolls which Mr.. Mackenzie King an
nounces.
Normal Processes Changing.
In any event, the new Canadian ex-
pertinent when it goes into effect next
month, will be closely watched. 1t is
described by Tom Moore, president of
the Labor Congress of Canada, as the
longest step yet taken by any democracy
toward the establishment of a totali-
tartan state" The criticism is subject
to some discount. But there is no doubt
that the program goes far to fulfill warn
ings that the war will not be won with
out fundamental alteration of the nor
NAL processes Of capitalistic society.
The Canadian program. as outlined by
Prime Minister Mackenzie King. calls for
a ceiling on all prices except for goods
going into the export trade. Rentals and
public utility charges will be subject to
the same definite limitations as food and
clothing. The maximum price set for
every commodity is to be that prevailing
during the period between September
IS and October H. In the words Of the
Canadian Prime Minister .prices are to
be halted at the level they have already
reached"
Following the German model, price
control in Canada will be balanced by
complete governmental control of wages
and agricultural income. "Hencefor-
ward" says Mr.. Mackenzie King, mo en-
ployer in Canadian industry or COM
merce may. without permission, increase
his present basic wage rates" Prices for
farm products are also stabilized at cur
rent levels, under the jurisdiction OF
the Wartime Prices and Trade Board.
There Is a varied Canadian reaction
to these drastic regulations. which ap-
parently are to be put into effect by
executive order.
Collective Bargaining Out.
The press reaction and that Of Big
Business Is on the whole favorable. In
| reference with profits, already sharply
| curtailed by taxation, is held to be less
| unfortunate than the advantages seen
in the stabilization of wages. Agricul-
| tural criticism is tempered by assurance
| that subsidies will be employed to keep
| prices up to the maximum levels allowed.
Labor criticism is predominantly hostile
which is scarcely surprising in view OF
the virtual elimination of collective bar
| gaining. That step obviously threatens
| the entire trade union structure.
Politically, the program seems safe,
since it is sponsored by liberal admin
istration- and in general favored by the
| conservative opposition. Enthusiastic
support is given by Malcolm Macdonald,
the British High Commissioner to Can
ada, who calls the program "a grand
| experiment" But there is room for
more than one Interpretation of Mr..
MacDonalds remark that This is
carrying things even farther than the
measures taken in Britain"
The Canadian program for the control