Internet Payments

Secure & Reliable

Your data is encrypted and secure with us.
VeraSafe Security Seal

Lethbridge Herald Newspaper Archives

- Page 5

Join us for 7 days to view your results

Enter your details to get started

or Login

What will you discover?

  • 108,666,265 Obituaries
  • 86,129,063 Archives
  • Birth & Marriages
  • Arrests & legal notices
  • And so much more
Issue Date:
Pages Available: 38

Search All United States newspapers

Research your ancestors and family tree, historical events, famous people and so much more!

Browse U.S. Newspaper Archives

Select the state you are looking for from the map or the list below

OCR Text

Lethbridge Herald, The (Newspaper) - June 14, 1973, Lethbridge, Alberta 4 THI LETHBRIDGE HERALD Thursday, Junt 14, 1973 LIHIOIKIAIS The government's Olympic games By Maurice Western. Herald Ottawa commentator Financing the Olympics Reports from Ottawa say the way is now clear for the deal whereby the government will acquiesce in var- ious arrangements for financing the Olympic Games that are scheduled for Montreal in 1976. A key clause in the deal, in fact the sine qua non as far as the government is con- cerned, is an unqualified guarantee from the Olympic Organizing Com- mittee, the mayor of Montreal, and the premier of Quebec, that Ottawa will never, never be asked to make up a single dime of deficit. That is an impressive undertaking and one that quite probably is given in all sincerity. One suspects, how- ever, that someone may be dream- ing. It is within the range of possibili- ties (just barely) that there will not be a deficit when the Games are concluded, though that cannot possi- bly be known for sure until 1976 or later. In the meantime all that any- one including the guarantors men- tioned above can do is hope that their various fund-raising schemes will work. There are schemes aplenty. One calls for ths minting of special coins, v ith the profits going to the Olympic fund. The promoters are also seeking the revenue from special issues of stamps, medals and various other commemorative items. There are to be lotteries. All manner of govern- mental and other agencies, businesses and individuals both hi Canada and abroad are expected to contribute. And remarkable ingenuity has been exercised to discover plausible ways of diverting government funds from such mundane objectives as housing, parks, recreation, employment, etc. to uses that will enable Games pro- moters to present books that at least appear to balance. But neither schemes nor promises can completely exorcise the suspicion that a deficit may materialize after all. In fact, the great majority of those who know about such matters -insist that it isn't a suspicion, it's a cer- tainty. If they're right, it won't mat- ter much who promised what; the bills will have to be paid, and we all know who "will pay them. It will be the good old Canadian taxpay- er. This is not to imply that the or- ganizers of the Games are less than honest, or to suggest that Premier Bourassa and Mayor Drapeau are trying to put something over on the federal government. No such impli- cation or accusation is intended. But with the best intentions in the world no planners can possibly be certain two or three years in advance that all things, including the weather, the labor unions, the international situation, transportation systems, Quebec politics and so on, will all be co-operative. (For that matter, it isn't even certain that three years from now anyone will be greatly concerned with Olympic sports.) One thing is certain however. To the average foreigner, the 1976 Olym- pics are to be staged in Canada, and he couldn't care less about Montreal or Quebec. Relationships between civic, provincial and federal govern- ments may interest students, but to people with bills to collect these mat- ers are of no concern. Creditors go where the money is, and if and when Montreal and Quebec can't pay, they'll go to Ottawa. And no matter how much grumbling precedes the decision, Ottawa will finally decide it doesn't want Canada known as the place that bid for the Olympics and then wouldn't pay for them. Putting brakes on borrowing One good reason for the latest boost in interest rates by the Bank of Canada may be indicated by an emergency resolution passed recent- ly at the annual meeting of the Con- sumers' Association of Canada. The resolution urged lenders of personal credit to "contribute one per cent of their profits for the funding of in- dependent credit counselling offices." Lying behind that resolution is the fact that in the last two decades out- standing consumer debts have in- creased from million to about billion. Many people are being swamped by their num- ber of personal bankruptcies is in- creasing at an annual rate of about 20 per cent. The resolution's real value prob- ably lies in the attention it focuses on the problems of excessive credit. Lenders are not apt to put up money to fund a counselling service which they ought to be providing them- selves. Lending money to people who are over-extended' and thus poor risk prospects doesn't seem to make much sense. But banks and credit companies are in the business of making money by lending money and apparently feel the losses they take are more than compensated for by the gains made in volume of busi- ness. The vigorous promotion of credit, even to the extent of inducing customers to borrow for trips and playthings, bears this out. If the Bank of Canada's increase ii: its interest rate has the effect of making money scarce to the lending institutions, it could serve to put a brake on the borrowing spree. But if money is still available, only at higher rates, much unnecessary and perhaps irresponsible borrowing will continue. Unfortunately, the effect of the higher interest rate could be to make it tougher for prospective new home owners to acquire dwelling-place. A bill waiting in the wings of the House may be the government's an- swer, however. This bill is designed to increase the flow of mortgage money available for home purchases. By draining off some of the money supply for this purpose less could be available for other things like those trips and playthings and the policy of higher interest rates could be of some benefit after all. The casserole That 49th parellel does more than just divide up the geography; it has an odd ef- fect on economics, too. The U.S. government wants to increase excise taxes on gasoline "as a means of reducing demand and as an anti-inflation- ary eccording to the Wall Street Journal. In Canada, while demand for gaso- line isn't much of a problem (so there is real concern about inflation. But on this side of the border, instead of adding taxes to curb inflation, the government wants to reduce For corporations, that is. With all Northern Ireland's troubles, bus- iness goes on; in fact, it seems to be get- ting better. A ship-building firm in Belfast has just started work on the biggest or- der ever given a ship-builder in the United Kingdom, and one of the largest ever plac- ed anywhere. It is for six crude oil car- riers each of tons dead weight, at a total price that will exceed a hundred pounds per man, woman and child in the entire country. Educational jurisdictions in various plac- es are being pressed to have the Biblical account of the Creation given at laait equal attention in school to that accorded Darwin's ideas of evolution. All very well, perhaps, but those who favor the Adam and Eve version should be careful ot pushing the 'equal time' position too hard, lest they find their opponents demanding there be a biology text or worse, a girl- ie magazine! in every hotcl'room along with the Gideon Bible. From Harding, Montana, comes the in- formation that the history of the Battle of Little Big Horn is changing. The superin- tendent of the Custer Battlefield National Monument says that many changes have had to be made in the interpretation of the battle that is presented to visitors, the ob- ject being to ensure that "both sides" of the famous story are told. No bets ara being taken as to how long it will take before it turns out that the U.S. cavalry, and not the Indians, really won the battle. Everything may be up to date in Kan- sas City, but Alberta is dus to be away ahead of that. When everyone in this prov- ince has been fixed up with one of those assinine pretty-picture type drivers' licenc- es, with the mug-shot, the ID number, Bertillion measurements, specimen signa- ture if you're wondering why no finger- prints, just wait awhile Albertans will be a whole decade into the future. Else- where 1984 won't start for another 10 years. The buggy-whip is often cited as the epitome of obsolescence. One would have thought that the buggy itself, or any form of farm wagon for that matter, would also be a thing of the past. Not entirely, it seams. In Silver Dollar City, Missouri, there is a wagon works that is still going strong, with so many orders that it cannot keep up with the demand. It has a back- log of orders for pony wagons, chuck wag- ons and assorted horse drawn vehicles that will keep it going ijill blast until at least the end of 1974. OTTAWA: The government had now unveiled the Olympic subsidy legislation which casts very little light on the amount of public money to be commit- ted for toe Games. As was perhaps to be expected, the postmaster general is to play a notable role in the ex- ploitation of domestic and in- ternational markets. Within the past year, postmasters general have gone into retailing with an enthusiasm dismaying to some retailers. The reasons for this were not altogether clear when the first flood of cuff links and knic-knacks appeared in federal buildings. In retrospect the operations may presumab- ly be regarded as pre-Olympie training. The notion that the Olympic Corporation is making off with some part of the coinage has been criticized by Games pro- ponents who argue that no citi- zen in his right mind would use commemorative coins for nor- mal commercial purposes. Ac- cording to the bill, they are, however, to be legal tender in an amount not exceeding But there is then a curious cau- tionary clause stating that: "Where more than one amount is payable by one person to other on the same day, wheth- er under one or more obliga- tions, subsection (1) applies as though the total of the amounts were one amount due and pay- able on that day." If citizens will not spend their Olympic coins, in any event, the reason for this restriction is not clear. It will be of great interest to learn from the spon- soring ministers how they pro- pose to enforce such an aston- ishing provision. In addition to dispensing coins, the postmaster gener- al will distribute special relat- ed products." Experience has shown that the number of such "related products" is remark- able. The term is not strictly defined in the legislation; it is to have "such meaning as may be given thereto by regulation of the postmaster general with the approval of the governor-in- council." Depending on the "in- spiration of ministers, it could thus include everything includ- ing groceries. There has been criticsm that the issue of Olympic stamps (without restriction as to the number of such issues over a four-year period) amounts to a raid on the post office. Here again the provisions are decid- edly peculiar. The bill stipulates that Are floating currencies the answer? By Brace Whitestone, syndicated commentator The confused debate over U.S. trade policy in recent weeks was settled tempor- arily by a second dollar deval- uation and letting the European and Japanese currencies "float" that is letting the exchange rate between the dol- lar and foreign (in- cluding the Canadian doiiar) be determined by shifts in the sup- ply and demand for foreign ex- change. The arguments for floating rates and concurrently deval- uations, if necessary, as made by academic economists, can be summarized briefly: with floating rates, balance of pay- mens adjustments for a nation in deficit or surplus would be automatic. As a currency in excess supply depreciated in value, that nation's exports would be cheaper and grow: its imports would become dear- er and shrink. The reverse ef- fects would curb balance of payments surpluses. The automatic adjustment, it is claimed, would cut the ties between nation's balance of payments and its domestic cur- rency. In fighting a recession, a nation would not have to fear deterioration of its balance of payments; even if it chose to run an inflation, it still would not get into external trouble. Falling exchange rates would absorb the shock. Hence, few reserves would be needed and the external value of the cur- rency would not have any pow- er to dictate natioal economic policy. All of this sounds most ap- pealing, but is the case a real- istic one? Businessmen, bank- ers and most economists with operating experience in inter- national finance have long dis- liked floating exchange rates because of their fear that they would lead to greater risks and uncertainties and so damage trade and foreign investment. Historical experience includ- ing the dreary episode of the 1930's gives little reason to expect floating exchange rates to be stabilizing rather than de- stabilizing. Defenders of floating rates in- sist that past experience proves nothing because they were al- ways periods of extreme stress. Today, it seems that would again be true. The most likely result of a worldwide decision to let all currencies float freely would be a further de facto de- valuation of the U.S. currency. Why would the U.S. dollar decline further, even if costs there appear to be in line with those prevailing elsewhere? Primarily because the massive costs of U.S. defence, eotial welfare and full employment policies make it impossible for Washington to keep its interna- tional finances in any sort of order. It is now conventional wis- dom, among academic econo- mists that countries should ov- ercome their inhibitions about devaluation and that the U.S. should not sacrifice domestic growth to preserve the level of the U.S. dollar. The problem, as so often in the past, is that too many econ- omists suffer from a herd in- stinct and are over-eager to embrace uncritically the latest fashionable view. In this case, a floating exchange rate which would permit the U.S. to treat the external value of its cur- rency with "benign neglect" will not provide an easy path to a new economic Eldorado. Quite apart from anything else, if the level of a national currency is ignored, devalua- tions inevitably will take place. Politicians need external pres- sure to supplement internal dis- cipline to keep a nation's dom- estic house in order. Chronic devaluations, and the U.S. now resembles Britain in this re- gard, inevitably have a bad ef- fect on national morale be- cause 110 one is going to per- Letters Will history repeat? I am glad we still have peo- ple like L. K. Walker of Milk River to bring us down to earth occasionally such as he did in his letter (June I was an elevator agent for a farmers organization in north central Alberta at the tune of which Mr. Walker writes, 1938, and I shipped some of the seed grain he mentions to southeast- ern Alberta, but not any coal was left in cars that I loaded! During those days of the depression and crop failures we worked for low wages, but made the best of things, even took cuts in low salaries so that elevators would be kept open, thankful to hold a job. We also collected carloads of vegetables to ship to the dried-out areas, and people tried to help each other and somehow we came through and it taught us to be careful and save a bit when we could. Now we see our small savings being rapidly eaten up by in- flation, and we see people carry- ing "On Strike" signs for wage increases in pay five dollars an hour for unskilled labor! No wonder we have inflation! Perhaps history will repeat itself, and something like the 1930's will return to straighten things out. It could happen you know! G. K. WATTS Letbbridge. Correct the source No doubt many were aston- ished at the recent report con- cerning the behavior of a large number of people at Waterton Park on Victoria Day. Those observing the current history of alcohol use are not surprised at this evolvement. It has been obvious in recent years there is continued pres- sure for an increased use of al- coholic drinks in more public places. I believe rather than pay so much attention to the behavior of these people during this re- cent event, we should concen- trate on the fact that alcohol, when permitted in public parks, is responsible for so much im- moral and destructive be- havior. It seems that those at- tempting to expand drinking regulations have only financial interests in mind and are not very concerned about the suit- ability of the environment in- volved. If we can't abolish alcohol in our present culture or even re- strict it adequately, then we might as well prepare for the ruination of our culture as we know it, for civilizations can be and have been destroyed by rampant alcoholism. I am certain that as long as alcohol is allowed in public parks there will be continuing abuse and controlling behavior which could affect the public adversely will be a continuing chore. The use of alcohol, as we have witnessed, often ac- companies or leads to immoral behavior. Such is not approp- riate to a place of God and beauty. LLOYD B. WEIGHTMAN Letbbridge. suade the average citizen throughout the world that de- valuations are a kind of nation- al triumph. Of greater significance, de- valuations are obviously infla- tionary. They raise the price of imported goods ranging from luxuries to necessities like heating oils. They also raise the general competitive ceilings im- posed by imports and so permit domestic producers to raise their prices. There is a growing tendency for governments to see float- ing currencies and, therefore, ultimately devaluations, as a way out of making the hard de- cisions which are necessary to hold down inflation. This is par- ticularly true in the United States where the Nixon Admin- istration pursued atypical measures in its post devalua- tion period. When currency val- ues were fixed and exchange rates were not allowed to float, devaluing countries have adopt- ed strong defensive measures including a tightening of fiscal and monetary policies or both. This was the case of the aus- terity program in Canada in 1962 after our exchange crisis. Now the United States has avoided any belt tightening pro- gram. Therefore, there is an urgent need for reliance on the rules of proper internal and external financial and economic con- duct. Otherwise, the world will be faced with continuing mone- tary Nations will resort to competitive devalua- tions, high tariffs, special im- port quotas and export sub- sidies, as well as other instru- ments of economic warfare. The world would split into cur- rency blocs and the long exper- iment in economic integration and liberal trade would come to an end. It has been absurdly easy to adopt the view of the propon- ents of floating rates. It is now obvious, however, that most countries would then be engag- ed in a round of competitive devaluations and speculative furore would result, all too re- miniscent of the 1930's, "Olympic stamps are to be sold at a price equal to the amount of the postage indicat- ed on their face and may bt fixed by regulation of the post- master general... for the pur- pose of providing financial as- sistance to the Olympics." It then states that the net pro- ceeds are to go to the Olympic account. In what appears to be a restriction, net proceeds, as determined by the postmaster general, are described as "feat part of the sale price of the stamps that is an additional amount (as fixed by the regu- From this, It appears that an eight-cent stamp selling for ten cents will yield two cents for the Games; a prudent precau- tion against the much discussed raid. But a second definition provides an interesting loop- hole. "If, in the opinion of the post- master general, the sale was made for the purpose of stamp collecting and not for the pay- ment of postage, the net pro- ceeds, as determined by him derived from the sale of the will got to the Olym- pic corporation. How is the postmaster gen- eral to check the intentions of the people lined up at the stamp wickets In fact, since many stamps which pass through the mails end up in collections, there is no conceivable way of making a determination. He can pay whatever he likes .of the gross proceeds to the Olym- pic account and he can do the same thing, under the terms of the bill, with "postal related whatever these may be. In the financing of the Games, much reliance is placed on the proceeds of a national lottery (more precisely on lot- teries conducted in the several consenting provinces.) The bill is intended to set aside for this special purpose various provis- ions of fne Criminal Code. Lotteries have always been controversial. In this case, there has been an obvious at- tempt to secure wider support with a provision that proceeds are to go for a double purpose; to provide funds for the Olym- pics and to assist in the devel- opment of amateur sport in the province. How much is to go to each cause is not slated; per- haps the breakdown is a matter for the province concerned. The effect, however, is once again to make calculation im- possible. Parliament is to vote a series of subsidies and relat- ed aids but in no case is it clear how much is being made avail- able by passage of the legisla- tion. It is unquestionably true, as noted in the preamble to the bill, that there is a domestic and international market for commemorative stamps and coins. As it happens, however, competition is extrenlely keen and is bound to be affected by the fact that the United States is even now making lavish plans to enlist the aid of col- lectors in its celebration of the 200th anniversary of the Declar- ation of Independence. Even with his recent experience in the sales field, the postmaster general may have some diffi- culty in appraising the poten- tial impact of American inter- lopers on his various markets. Beyond these considerations is the continuing doubt that tho total assistance, which can only be roughly estimated, will lend realism to Mayor Drapeau budgeting and thus avert post- Olympic demands on the trea- sury analogous to those which had to be met in the aftermath of Expo '67. 'Crazy Capers' Well done, Mrs. Jones! Come out from behind the and take a bowl The Lcthbridgc Herald _____ Sw 7th St. S., Alberta LETHBRIDGE HERALD LTD., Proprietors and Publianen Published 1905-1954, by Hon. W. A. BUCHANAN Second CUM MID Registration No. 0012 ber The Canadian Prtu and the Canidian Dally Newtpaptr ummf Association and the Audit Bureau of CtEO W MOWERS, Editor and Publisher THOMAS H. ADAMS, General Manager DON PILLING WILLIAM HAY Managing Editor Associate Editor F. MILES DOUOLAi K. Advertising Manager Iditorlai Page Editor THE H0UID SltVEfi THE ;