Lethbridge Herald, The (Newspaper) - January 19, 1921, Lethbridge, Alberta
WEDNESDAY. JANUAJIY 1U, IWft THE IJSTHBRIDGE DAILY HEKALB PAflE NTNK bat tor wouW here been reooni yetr. tke war the Immlcratlott was nominal. only to aanoallr, but In reached W.OOO, with Jhe promiie of a much more active ifcjvemem u soon ai raUl are lower uN postages more easily obtained. In IMS immigrants cama from the fol- lowlni sources: Great Britain 1W.OOO, States 131.000. and all other other countries lu 1920 the were 69, 49 and 8. In both years the immigrants spread themselves reasonably well over Can- ada, Ontario, however, receiving twice us many as any. other province. The proportion ol Immigrants from, the United States who are farmers IB about tke ume u before the war, and doubtless many others from that country an land seekers, but the pro- portion of farmers or firm workers (ram otker countries, Including Great Britain, to mack smaller than before the war. We mtut hope that the pres- ent readjustment gold on throughout the world wBl Imrease the number ef lanA-Mefcen. because although we nut prevent andae Immigration while our own people want work, we shall always desire as many as possible to go on the land for a. living. The Soldier Farmer In connection with land settlement and post-war work for our soldiers, a recent report of the Soldier Settle- ment Board Is encouraging, The plan provides for loaus for buying land up to J5.000, or 90 per cent, of the value, in each case, amortized over 25 years on the basts of 5 per cent, interest per annum, and for loans up to for stock or equipment, payable in six amortized payments on the same in- terest basis, and of for perman- ent improvements payable in the same manner as the land purchase. Over 57.000 soldiers have applied under the plan, over have and are already on the land, while over are lu training with farm- ers. To settle these slightly under 80 million dollars has been necessary', as againct a possible 160 millions under the Act. Soldiers have made first payments amounting to four millions, while crops have al- ready enabled.- further payments of nearly two millions to ;be made. In the prairie provinces alone, tho soldier farmers have produced about 20 mil- lion bushels of grain. The care taken In estimating the Qualifications of each applicant for successful farming, In selecting the land, In buying stock and implements, the latter at wholesale prices, In coun- selling and aiding In many -waya those wko have not yet made all suggest an admirable effort to carry out a plan OL land settlement, the importance of whlfti reaches far beyond the mere aid to the returned soldier, although that Is the prime consideration. Where there' are ap- plicants who cannot make the initial payment, the various bodies aiding distressed soldiers are appealed to, and, of course, there are failures after all precautions have' been taken. In 150 cases, Involving an investment by the Government of only about was lost. Tho report closes with suggestions regarding land settlement generally, which It Is hoped will have the consideration due to such an Important question. Pcnslani to Soldiers Perhaps no new form of national expenditure caused by the war inter- ests us so widely as the pensions paid to oar soldiers. On the one hand there Is an intense desire (hat justice be done to those who fought for us, while on the other hand there Is a grave sense of the weight of the obligation falling upon the new gen- eration to pay such a huge sum an- nually, In which-there is not, directly or indirectly, any rela- tive production of national wealth. At the end of 1919 there were pen. "slons being paid, at .a cost' of about monthly. During the year, by the payment of pensions' were commuted to the extent of 292, and the number of pensions in force at the end of 1920 was Farther commutations are expected, bringing the total to about on which will have been -paid. At the moment our monthly outlay for pensions Is about 000, but' commutations will probably reduce, this to about Taxation In speaking last year about the manner of distributing the taxation necessary to carry our debt and to administer the Government, we ex- pressed JhD opinion that If the annual payments are obtained by reasonably fair taxation, so levied that the taxes do not become a cause, of restraining our industries, we shall not fail to win through, but to accomplish this of the subject ,1s neces- sary. It must he admitted that the war has imposed upon Governments the necessity for collecting an amount of taxes beyond any past experience, and it should be evident that the total required can only be obtained by con tributious on some scale from prac- tically the whole body of the people. It Is quite true that regard must be had to the capacity of the Individual to -pay, but in levying super-taxes no folly can be greater than to overlook the effect of excessive taxation on our industrial activities, not only to future growth, but as to the pres- ont power to give employment to the wage-earner. We do not hesitate to .say, now that the war' is over, that some of the present forms of Domin- ion taxation, while justifiable during tho, war period and the period im- mediately succeeding It, are in danger of. becoming destructive of enterprise and perilous to our future if not alter- ed. As the forms of taxation to which I shall aludjL are similar to those of countries in which the r-aine evil results are apparent, and lu which tide of opposition is rising rapidly, I'trust my remarks will not be re- garded as a criticism of our Govern- ment, whose tasks during the war and since have been most difficult and onerous. We must suppose that these forms of taxation are experiments Which are subject to speedy change ,lt found to be too burdensome and unfair. Tax en Sales As against the "luxury" taxes now happily at an end, we have steadily urged u turnover tax of one per cent, on sales of commodities. Wo are aware that criticism, only however, regarding certain details, of this form ef tax have been made In tbs Teuta-j tin Report of the Tax Committee of the National Industrial Board of New York, but these ban been answered ay Chairman of Business Men's National Tax. Cam. mlttee. of tbe made In United Statm against It that any tax which bears In the same rite upon the small earner as upon the large is unfair. Bat this to' accom- panied by the belief that a turnover tax would provide suck a revenue as to displace the excess profits tax. I believe It. would only provide a sub- stratum of tu '.n which It Is true that all would Join alike, paying in precise to their expen- diture for commodities, hut tte man- ner in which those who have larger Incoraan would he. taxed through the Income tax would provide for that difference In treatment which modern taxation recognises. A small tax on the sales of commodities and real pro-' perty la Canada would hurt so little, would be ao fair, would be so easily collected, and would produce such a very large sum, that to fall to levy it seems excusable only if K can be shown to be Impracticable. Surplus Profits Tix We are levying heavy surplus pro- fits taxes, and many well-lnteutfoued people think that we are justly pun- ishing the so-called profiteer, but we are really killing the goose that lays the golden egg. When he can do so, he doubtless tax on to the consumer, and escapes' punishment himself, and the tax thus becomes boomerang UK far as the pubbllu are concerned. If. we clearly know what we mean by a profiteer and, can and him, let us punish him in such man- ner that the penalty jmposed cannot bo passed on to the ultimate buyer. But in ordinary cases, which affect by far tbe greater part of the -business community, we are taking from en- terprise the profit with which further enterprise would he created. It is from the accumulated profits of a business that growth both of plant and scope of operations mostly be- comes possible. What do we think will happen if ws steadily take such a large share of that profit away? It will be sail! that some concerns make too much mouey. But, as we argued a year ago, that should be demonstrated by the relation hot-of profits to but of profits to turnover, measured again by the pro- portion of possible turnover to capi- tal. The manufacturer who turns his capital over many times, serving the public for a trifling profit on each sale, but making a large return on his capital because of his skill and activity, should surely not be pun- ished by excessive taxation for being an excellent servant to the people. The tax Is universally admitted to be unscientific and will do Incalculable damage It continued. It was justified only by war conditions and only for the period of their duration. The Income Surtax The surtix features of the Income tax which carried to the extreme per- acntages now In effect, are little less unwise and nnfalr than the excess profits tax. Those, who are large shareholders in business enterprises should be ready to take up new share Issues" In such enterprises, as exten- sions may prove necessary. Taxation which flrat takes a large share of the profits the company, and then a large share of the dividends of the same company because they happen to be part of a large private income, may seem to be sound policy to many, but it what we seek is the general good, it is deadly in its effects upon business enterprise and industry. I believe every good citizen In Canada j wishes to pay for part of the cost of the war. He only desires that his ability to pay shall be regarded. A tax on the -turnover of all, business transactions would 'punish no one, and yet would mean the reaching of a most Important, sub-stratum of the national Income, in the creating of which everybody has joined. Upon real --luxuries an excise tax might well be placed without resulting in- jury to trade. The articles selected should manifestly be luxuries In the strict sense of the term and clearly recognized as such by the general public. Profits and Taxes We are at the moment having Il- lustrations both of the Injustice and of the unreliability, as a form of Gqv- ernment income, of the excess profits tax in Canada and the United States. Business in a time of high prims would not regard whatever value they might put upon merchan dise in stock at the close, of their financial year as anything but a pro forma method of closing their books, and who would keep large balances in Profit and Loss Account as a con- tingency against.a fall in prices, are forced ts.ftx a price for, such mer- chandise, and also to fix, to the satis faction of the Government, the re- serves to be kept against such re- valuation. As a result, in the United States at the moment, countless firms who in the great fall in commodity prices have lost a large share all that has made In several past years, look In vain for that so-culled "excess profit" which the Government exacted from and I fear that there ore at least a considerable num- ber of" business establishments In Canada In the same predicament. Thj Government is to bo a partner in the business when profits are made, but when losses are made. It is ob- vious that sucli a form of revenue must be subject to too .great contin- gencies to be reliable. In the inter- est of all we must flnd'a system of which will do the least pos- sible mischief to enterprise, Instead of making men unwilling to take new risks because the Government seizes so much of the results when thero uro any and does not share either the risk or tbe loss. Increase National Income While we must for the time being levy enough taxes In some form to pay our Interest charges, and to make as we hope, some steady if slow re- duction nt tho national debt, we should always bear in mindlnat it Is only by the growth of our national income tbat we can expect again to reach a time when taxes will not be a dragjpon our prosperity. Wo need pWipte upon the land, but wo need more Industries as well. We pay away yearly vast sums for im- many of which should be un- necessary. We have untouched stores of raw materials for many kinds of manufacturing the aon-aM of which Is more serious lo Canada from point of view at national finance than unplouthed land. export by which our foreign are partly paid, but we Import what we skoitld make ourselves and Unw cre- ate foreign debt. The present high rate of exchange on Now York Is the concrete expression of thin debt, not only of that being created today, but In the form of annual Interest pay- ments, of all the foreign debt we have created iu the past. Research Werk Imperative We hare Iron ores In we do not spend enough on research to ascertain their status tu relation to other ores in the United States on Which we steadily depend. We'have about 15 per cent, of the coal areas of the world, so far as such ireas are accurately known it may be that science cannot remove Impurities and reassemble tbe coal so as to make transportation charges possible, and thus relieve Ontario of Us great draw- back, and the nation of Its vast ex- penditure for the importation of this article, but research should be per- sistent until we are assured that such is the case. We have lately developed n.anufacturhlg processes in which chemistry is the main feature and others dependent oil cheap watcr- and thiough these the triple benefit comes to us of giving employ- ment, of enlarging the market for those who sell food and the other necessaries of lite, and of offsetting or lessening by the selling value of. the liome-crcated product, the cost of those imports which are the main causa of our present difficulties. We are very glad indeed that our Do- m'nlon and Provincial Governments all spend large .sums of money In educational and other ways, to aid agriculture. The Dominion Govern- ment and some of the Provinces also do something in the way of research for other industries, but we have come to a juncture where, along with the ordinary desire for progress, comes the heavy pressure of national debt whic.li can only be relieved by Increas- ed production. For this we need re- search in countless directions, and in addition to what is now being done, I hope liberal aid will be given to all of our universities and that the scope of our Government research work may be enlarged. Trade With Weil Indies A very interesting convention took place in May and June, at which representatives of the West Indies and British Guiana met the Canadian Government in ail effort to increase our trade with each other and Im- prove our means of Intercommunica- tion. It is said that this is the first time that representatives, of all the Islands and of the adjacent mainland have met together, and it Is gratify- ing to record that these colonies, which form In one sense a unit of the Empire, came together to discuss Imperial questions with Canada. As a result, an agreement between Can. ada and some of the West Indian group came Into force on 'June, and a further agreement, which in- cluded the remaining members, was made on 18th June, subject to ratifi- cation by all the parties thereto, and In which all of the delegates present at, the conference concurred. These agreements are based upon an in- crease oE the mutual preference now granted, an enlargement of the list of products to which the preference extends, and on co-operation In (pro- curing and maintaining better steam- ship transportation, and, if possible, better cable If we consider the adjacency of the United States to the West Indies and the special relations to the latter of the great fruit company with Its lines of steamers, we can readily understand that our hope of a large and reason- ably quick development of trade with these parts of the Empire depends on tke steamship and cable services we are able to create and maintain. Noth- ing but the best both In kind and la administration will be of much use. In addition to this West Indian Con- vention, we had the Imperial Press Conference and the Congress of tho Chambers of Commerce of the Em- pire." We cannot doubt that such meetings of men important in imper- ial affairs will both widen our'out- look and strengthen our determina- tion that the British people shall merit the leadership In the world's advancement. A Year Book Over thirty years ago this. Bank began the, at that time, quite unusunl practice of presenting at the annual meeting, in the addresses of the Pre- sident and the General Manager, n review of the industrial conditions of the area in which was in- terested. As this widened from- On- tario to other parts of Canada, then to the whole Dominion and to various parts of the United States, later to Great Britain and Newfoundland, and now to the West Indies and South America, it has been necessary change the manner of imparting the information to our shareholders and to the public. Until 1913 the effort to incorporate it directly In the addresses was continued. Then it was decided to present It in what been. called a Review of Business 'Conditions, in the extended form in which it reached us from tlie Superintendents and other officers who make these annual re- ports to Head Office, and this lias been supplied with tho annual report to the shareholders'and the public. About four years ago the bank found it desirable to establish its Monthly Commercial Letter, which lias made for itself a very extended circulation, and it has now beon concluded to publish as early as possible after the annual meeting a Year Book, in which tho Review of- Business' Conditions, now grown to larger proportions than ever, will 'appear together with ma- terial of niKicial interest gathered from the Monthly Commercial Letter and from other sources. The Sin of Extravagance Among the lights and shadows the world there are at the moment too many shadows to warrant any- thing but anxious care. You have heard from the -Manager the results of the best year the Bank has ever had, ami thus far we have much evidence of a decline In the ponding habits of our people or tbat lard times are ahead of We know, however, that here as else- where all prices, whether of commodi- ties or of MMt reduced it tiuestions as they relate to business. Sir Edmund diagnosed the condition 'of Canada. He sees the germs of sickness, but he has high hope for the patient. He looks for it to grow steadily sturdier, but only by facing tho facts' that, dangerous germs of Extravagance Sin of Canadian People Bank of Commerce Officials Welcome Steady- ing Conditions. CONFIDENCE IN FUTURE Production and Thrift Need- Has Its Year. "Our particular Bin is extravagant expenditure and willingness to incur debt." Thi3 remi-rk of Sir Edmund Wal- ker, Provident of the Canadian Bank of Commerce, made the Annual Meeting of Shareholders, came aa the Impracticable. Two hotivy tuxes iilion pronln of Industry, und upon in- comes, will, Sir Kdmunil tinted, usu up the funds otherwise avail- able for blnbMHS extensions. Thus would be checked tho development of Industry which not only gives employ- ment to present and prospective Can- adian workers, but increases the National income so that "taxes would not drag upon our income." Speaking uirectly on the bank's operations, air John Aird made very clear points Indicated by tho sheet. The past year has been the bank's best year through steadiness of the business and through the avoid- NOTHING TO DO WITH NON-PARTISAN LEAGUE WINNIPKC, Jan. Manitoba Free says: D. Lamb, of York ton, u canvasser (or tho Non-Partisan Leuxiui, has wrltton the Krco l'res% tuning exception to a statement In. a recent article in this paper that he, was representing Key. Dr. Salem Bland. F. J. Dixon, John an (I nlhurs us being some of (ha men behind tho Non-Partisan movement. In the 1-Yoo Press article this statement was contained In a report which was quoted from the Yorkton "John Kennedy also writes the Free Press as follows: "I most emphatical- ly deny having had anything to do with the Non-Partisan League at any time in its history, good, had or in- different.' CONDITIONS MUST IMPROVE BEFORE MARTIAL LAW REMOVED IN CORK LONDON, Jan. IB-- In a IctUr to tbe deputy mayor of Cork relative to the roiiuest to remove martlil Uw, Major (loneral Sir Edward Strick- land, the Hritish commander In Mun. tier, says thu present state of affairs In Cork uunnot bo allowed to continue und that ho "wilt bo compelled to tako drastic measures u may Mem necessary to make the Uvei of the crown force secure from aiflOBSins and concentrated any! the Central Nows. The letter adds, how- ever, that General Strickland will bo ready to givo all possible considera- tion to the request if he leeg that the inhabitants are wllllne (u assist him. ance of any serious 1 Kurthcr, ex- pansions have been made in Canada, ami important expansions in thu: business a remarkable review of opening up of offices abroad which conditions, and .political to asslst Ule further' development of export business for] Canadian producers. The bank, prac- j ticing tho caution it urges, has made large additions to the amount carried total of or more than a year ago. This us a safeguard against uuoxpect- public finance jnust be replaced by suuer habits. As a means to this end, Sir Edmund welcomes the present period oi readjustment, when values are being brought not only to a basis production costs but of reproduc- tion costs. Tho remarks of Sir John Alrd, tho General Manager, also were hopeful, steadying words at this time. Sir John established not only the fact that the Bank of Commerce mis con- tinued its growth, and has had the best year In its that business generally is sound and get- ting sounder. He struck one particu- lar word of the farmers, should not hold their grain for a rise, "on a market which has fallen very rapidly since thq time of harvest, and has every appearance' of continuing to da so in sympathy with the gen- eral tone of business." "Our present said Sir Edmund Walker, "have been natural and remedial even if We have passed through the period of high prices and low efficiency which was based, on 'industrial enter- prise, but on the creation of so-called wealth from the evidence of debt is- sued by Governments living beyond their means." Canada's exports and Imports for the year ending Marni 1020, Sir Ed- mund showed to be less favorable than for the previous year. The to- tal of exports was larger, but the total of Imports unfortunately was very much 150 millions, to be specific. Not only this but con- tinuing the comparison to the end of September 1920 reveals the startling fact that In months of 1919 our snrplfjs of exports was 000, whereas In 1920 we have actually Imported In these six months more than we have exported. It is found to be Imports which really bring about this unsatisfactory state of affairs. Not only were the imports for the fiscal year ending March 145 millions larger than in 1919. but this in face of the fact that articles Im- ported for the Army and Navy In 1919 amounted to 50 millions, and of course no such importations were necessary In 1920. Sir Edmund sees an Improvement coming only because of dire neces- sity. "Nothing but inability to buy will check such fatuous extravagance." There Is a bright side, fortunately, to offset this decreased margin of ex- port excess over Imports. It Is the fact of Increased value of field crops mineral production well in excess ol that of 1919, and the fact that war expenditures have virtually ceased. Sir Edmund makes it clear that Can- ada can, will, speedily get the important excess of exports over Imports more nearly to tha old ratio. Among the statistics of universal Interest given in Sir Edmund's ad- dress are those of Canadian securi- ties held abroad. These he estimates at held in Great Britain and Europe, and held iti the United States. This means annual Interest bill of som.ewhat over Referring to the need of revenue to meet this and other charges, Sir Edmund spoke very metlf- ods of Taxation, upholding the idea of a Turnover Tax, and urging care- j ful consideration before imposing I drastic supertaxes on incomes; or heavy taxes on industry. Taxes had been imposed durtug the war under the urger of huge and immediate revenue. Of necessity some of these taxes were really experiments. It is nothing against the judgment of those who levied the tax if now they are found to he against the best in- terests of the country. The Turnover Tax, of taking tile place of the "luxury-taxes now happily at an end" would form a sub-stratum of tiis revenue "a small tax on the sale of commodities and real property in Canada would hurt so little, would be so fair, would be so easily collected, and would produce such a very large sum that to fall to levy It sueiiis ex- cusable only if it can be shown to be uuu i ed contingencies. Sir John's presen j tatioli of the Bank's position gives Ijy point to the of Commerce -the current mercantile loans In Canada amounting to the large sum of or almost more than a year ago. a more reasonable basis, and the effect of the world's lower price for farm products is already plain to all. When tho readjustment has reached the retail and a new basis of values lias been generally a genuine prosperity will arise throughout the world In which we shall have a large share. We shall merit and wo shall secure that pros- perity In proportion to our good sense In rualiiing now that our particular sin Is extravagant expenditure and willingness to incur debt. The report was adopted unanimous- ly. Messrs. T. Harry WebB, C.A., and Douglas Dewar, C.A., were appointed auditors, and ,the usual votes of to the directors and staff were Tho meeting then SEEKS LIMITATION OF LIABILITY SEATTLE, Jan. on the petition of the Canadian Pacific Rail- way company for limitation of liabil- ity in connection with the wreclc of the steamship Princess Sophia on Vanderbllt Keef, m Alaskan waters on October 35, 1918, began this morning before Federal Judge Jeremiah Neter- er. The hearing will continue for at least a week, probably longer, attorn- eys estimated this morning. j The petition deals with claims re- i raiting from the death of 200 persona of the tptal number lost when the steamship foundered, aggregating ap- proximately The Canadian Pacific Railway company seeks to j hare Its liability limited under admlr-1 alty law to the amount paid in pas- senger fares and for freight carried on the trip in question, and the amount which may be realized from salvage of the wreck. SOCIAL TEA, SOCIALTEA BlSCUP FOUND EMPTY BOX MONTREAL, Jan. digging In the cellar of a private house here yesterday-for the body of Ambrose J. Small, missing theatrical magnate, found only an empty box. Relieves Dtifeew, Stiis Heai Ntiut It Is not put in ears, but is "Rubbed In Back o7 Ban" and "Inserted In the Nos- trils." Has had a Successful Sale since 1907. For ule in Lethbridge by J. D. Higinbotham Co., Ltd., Medley Drug Co., Stokes Drug Cp. Proof of success will be given you by the above druggists. ARTHUR SALES CO., Toronto, Ont. This Signature on Yellow Box and on Bottle Manufacturer 70 Fifth Ave., New York City Manufacturer 70 Fifth Ave., New York City "Oh! This Shopping" T certainly gets on my nerves. I come home all fagged out, and nearly always have a splitting headache. "Yes, they say we women always like shopping. But if everybody feels as tired out afterwards as I do, it is no joke. "I wonder if it is my nerves. I never could stand much sightseeing, anyway. The strain on the eyes seems to exhaust the whole system. "I suppose I shall not be able to sleep to-night, and that will put me in fine con- dition for to-morrow. "Why don't somebody invent a good medicine for the nerves "But what was that Mrs. Crary was telling me about I believe it was Nerve Chase's Nerve Food. I have heard so many talking about the way this Nerve Food helped them that I must give it a trial." And this is what Mrs. Crary of 515 Cedar street, Peterboro', Ont., writes about her experience with this well-known treat- ment for the nerves: "I waa Buffering from aj-midown condition of nervous dcbllltf and I a good many nights' alctp, nnd comotlniM after golni to ileep would wake up with n. start. and then He awake for nours. I also bad fiuent headaches and pains through my back. I got HO thfit I could hardiy do any work. I had taken doctors' medicine, but it did not. aeem to help HIP. Through reading in Che newspapers of vho help others had derived from the use of Dr. Chiise's N'ervu Food j started taking this medl- The first box helped me, ao I continued about five or afx boxes. I found that I was a Brcat deal better, able to sleep well and do my work without any trouble. My headache" and iiervousnesn aro gone. >ly mother lives with und she has also found great benefit from the use at the Nerve Pood. I cannot speak too highly of Dr. Chase's Nerve Food for nervous trouble of any kind." If you could only read the letters which coins to this .office from day to day telling ot what Dr. Chase's Nerve Food is doing for women, and men, too, in all parts of Canada, you would not be long in doubt as to the most satisfactory treatment for tired bodies and exhausted nerves. Ail we can do is to pass along the good words by publishing an occasional letter It remains for you to benefit by using this blood and nerve builder to restore energy and vitality to your exhausted system. You can obtain Dr. Chase's Nerve Food from a'J dealers, or Edmanson, Bates A Co., Ltd., Toronto, at 50 cents a box. On every box of the genuine you will find tha of A. W. Chase, M.U., the famous Receipt Book author.