Evening star., 1942-08-11
Ry 7. H. FISHER.

Foreign Correspondent Of The Star and
North American Newspaper Alliance.
OTTAWA. Ontario, Aug. 11-Fully
launched on a wartime managed
economy program, Canada is keep
ing within sight of the governments
avowed pay for the-war- as We go
target and, through the medium OF
other direct controls, is beating back
the imitation wave which year ago
threatened to engulf the country.
The Canadian people are today
trated impact of drastic taxes, wage
control and strictly enforced overall
price ceilings on a scale unparalleled
in any other democratic country up
to the present. They are bearing up
under these burdens because they
feel they are the price which must
be paid In order that the entire re-
sources of the nation may be mobi-
lized for a supreme war effort.
There is regimentation aplenty al
ready. The workman's wages are
frozen and he must first earn pro-
motion before he can get a pay IN
crease. He cannot move from one
job to another without the permis-
sion of the Office Of National Se-
lective Service The manufactures
not engaged on war work is finding
it well-nigh impossible to replenish
his inventories if essential war ma
terials are involved, and the mer-
chant operating under the price
ceiling daily discovers that addi-
tional lines are no longer obtainable
while others come only in few
standard brands. His net profit de-
clines with his volume and markup.
Sugar Consumption Cut.
Canadian housewives, like their
American neighbors, have cut sugar
consumption to one-half pound per
individual per week. Tea and coffee
drinkers are now coupon-rationed to
one ounce of tea or four ounces of
coffee a week The can't have
both.
But where the Canadian Civilian
feels the impact of war most of all
is in his pocketbook, which suffered
a staggering blow when Finance
Minister James L. Ilsley delivered
his budget. The new taxes hit poor
and rich alike and drain off 100 per
cent of corporation profits in ex-
cess OF the earnings in a standard
peacetime period.
Beginning in September every pay
day will serve as a reminder to
Canadian workers that there Is a
war. Into each envelope the tax
gatherer will dip and take a sub
stantial sum to meet the new in
come taxes, which hereafter are to
be collected by employers in weekly,
monthly or quarterly installments
for the government.
Another innovation for Canadians
is the newly adopted system of COM
pulsory minimum savings Tefund
able after the war; which has been
made an integral part Of the in
come tax. Mr.. Ilsley has adopted
the compulsory savings policy of
the British economist, John May
nard Keynes, as a means Of raising
additional revenue badly needed now
and also of fighting imitation by re-
ducing consumer purchasing power.
Income $4,000, ,ooo, 900.
Canada's national income this
year will in round figures amount
to SO 900. 100000. of which $3,900,-
100000 will be required to finance
the nations own war and civil gov
eminent costs and provide Great
Britain with a billion dollar gift in
the shape of munitions and food
stuffs.
To meet this expenditure, which
is eightfold larger than the nation S
largest peacetime budget. Mr. Ilsley
proposes to raise S2,l45 .000, 600
equal to 50 per cent of the total
bill-by taxation and compulsory
savings. The balance. l,755 600, 900,
must be found through the sale to
the public OF War bonds and War
savings certificates The Finance
Minister is asking that this amount
be subscribed by individuals and
companies and insurance institu-
tlons out OF current earnings and
accumulated savings. He turns his
face sternly against financing the
deficit through the banks or by
the issue of new bank of Canada
currency.
The new levels of taxation are in
keeping with the Governments plan
of paying as large proportion of
the war out of current income as
possible and are also part of grand
strategy to defeat imitation. Wage
and price controls are the other
pieces in the plan Integrated, as
they all are, their purpose is to pre-
vent runaway prices at this time
when there is shortage of civilian
goods.
Certainly the taxes which have
been imposed and the controls
which are being enforced will mean