The Wilmington morning star., 1947-08-08
Postwar Canada
By WILLIAM H. CHAMBERLAIN

Canada as learned during a recent brief
visit to that country, is experiencing a post
war economic phase very similar to our own.
Business is booming; exports are at very
high level; there is shortage Of labor, rather
ton is almost double the average for the years
1s35-1s3s
Canada also shares some OF the less favor
able aspects OF the United States situation.
High prices have accompanied high wages.
The cost of living is officially estimated at
SO per cent above the pre-war figure and is
steadily rising as government subsidies which
were used TO hold down the prices OF some
foodstuffs during the war are being with
drawn. Housing is the same sad story on both
sides Of the border. AS The Financial Times,
a leading Canadian economic journal, resign
edly observes:
''The plain fact is that housing has become
a luxury, and are developing slum con-
ditons from Sydney to Skeena, because no
one can handle this problem
There seems to be an unbridgeable zap
between the swollen costs Of building labor
and building materials and the purchasing
power of the vast numbers OF Canadians who
would like to get new houses.
Like the United States Canada finds no
lack of customers for its surplus produce Last
Nav its foreign trade passed the half billion
dollar mark for the first time in peace.
Canada's staple exports, wheat timber, news
print. mineral ores are in tremendous de-
mand.
But there is a drawback in this fourishing
foreign trade. Few countries today possess
hard currencies that are freely convertible
into foreign exchange. Canada looks to the
ohpr NJ 1rnH
coal oil. iron cotton steel and machine
tools being among the most important. The
Canadian-U United States balance of trade and
balance OF payments are normally unfavorable
to Canada The annual interest payment on
more than 81 billion worth OF American IN
vestments in Canada far exceeds tie income
which Canadians derive from investments
south of the border.
Before the war Canada was able to offset
an unfavorable balance Of trade with the
United States by maintaining a favorable
balance of trade with Britain. Now the m
poverishment of Britain and the financial re-
strictions in that country are forcing Canaoa
to husband its diminishing supply OF Amerl-
can dollars very carefully. Restrlcuons on
holding Of American cur 'ency by Canaolah
private citizens and on spending by Canadians
on trips south of the border. relaxed after
the end of the war, have recently been severe
ly frightened.
A curious and paradoxical situation has de-
veloped with the exchange value OF the Cana
dian dollar. This currency will buy more IN
terms Of food and most commodltes thah the
American dollar, because the rise in the cost
of living has not yet been as steep IN Cahaoa
as in the United States. But. although the
Canadian dollar was officially restored to parl-
tv with the American dollar last year, II is
at discount of about per cent in the free
market.
Normally much more dependent than the
United States on foreign trade, Canada has
a very considerable stake in the restoration
OF freedom Of trade and financial staolllty
over as much OF the worlds area as may
be possible.
The Liberal government headed by that
veteran master Of Canadian politics, william
Lyon Mackenzie King, seems well entrencned
in Ottawa. King seems likely to establish
record for length Of service as Prime Munster.
He has been in office since 1921, with one
brief interruption in 1925 and longer break
between 1880 and 1885.
It is unusual for a single party to remain
in power so long under a free election sys
tenn. But the Canadian Liberals have prof
tied from the weakness and division Oh their
opponents. The Conservatives who have not
especially improved their political fortunes by
adopting the somewhat contradictory name
Progressive IOUSeIVdllVeS, SLOW ilelC oei Gig III
outside of Ontario. During the war the C.C.F.
(Co-operative Commonwealth Federation), a
farmer-labor party with a program Of grad
ualist socialism, won some striking successes
in local elections. But it came out a rather
poor third in the last national election held
in the summer OF 1945.
The Liberals maintain pretty solid grip
on French speaking Quebec in national cleo
tions and this gives them a fairly long start
~, a,,, n,o, Mi,,ir{ KIn6
elderly man and one begins to hear specu-
lation about candidates for the succession In
the Liberal Party leadership. Among the
names most frequently mentioned are those
Of three members Of the present Cabinet,
Louis Laurent, minister of justice, and
an influential figure among the French Cana
dians Douglas Abbott, minister OF finance,
and Brooke Claxton minister Of defense.
In contrast to the United States, Canada
recently cut its income tax, which, to be sure
had been levied on higher scale than in the
United States during the war. immigration is
subject Of lively discussion north OF the
border although the federal government is
moving slowly and cautiously. There seems
to be preponderance OF sentiment IN favor
of limited amount of selective immigration.
Some three thousand Polish war veterans have
been admitted as farmers and the energetic
Conservative Prime Minister of Ontario Col
onel George Drew is bringing in some seven
thousand British immigrants. Quebec indus
trialist, Ludger Dionne, aroused storm of
protest in trade union circles, by contracting
for the employment of 100 Polish DIP girls
in of his textile mills.
There is growing sense of Canadian
nationhood since the war, and growing con-
sciousess that Canada and the United States
in the Arctic, possess an important common
frontier. During a recent by-election in Hall
fax the C. c. F. leader NJ j. Coldwell ex
pressed the wish that there were thousand
miles of distance between Canada and the
United States and criticized American policy
somewhat in the style of the British Labor
Party rebels But most Canadians are less
inclined to quarrel with the facts OF geography
or to suspect United States motives and in