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Lethbridge Herald, The (Newspaper) - September 21, 1973, Lethbridge, Alberta 4 THE LETHBRIDOB HERALD Friday, Saptamber 21. 1973 Perilously poised on a knife-edge By Maurice Western, Herald Ottawa commentator Constitutional question When the federal provincial oil dis- agreements are resolved, the con- stitutional experts may wish to consider another interesting statement in Premier Peter Lougheed's Tuesday night speech: "Confederation is an agreement between provinces." Mr. Lougheed's legal background notwithstanding, this statement is not necessarily so. At least the inferences from it are highly debatable and indeed have been debated by the experts for most of Canada's life. The "agreement" theory of Confederation, usually called the "compact" theory, is difficult to sustain. The compact theory holds that the provinces created the country, that it continues to exist by their consent, that they can abolish it. that any province can withdraw from it. The contrary theory contends that while Confederation was inspired by the four original provinces and created at their request. Canada is bigger than and different from the provinces collectively and its existence is not dependent upon their continued concurrence. There is no continuing compact, no continuing agree- ment subject to periodic ratification. The compact theory is more applicable in many ways to the United States than to Canada, yet the Civil War was fought because the nation, as represented by President Abraham Lincoln and Congress, refused to concede the right of any state to withdraw from the union. In spite of the hot words exchanged by the federal and Alberta governments, the chief threat to Canadian confederation continues to come from Quebec. Canada might have every right to prevent Quebec's withdrawal. But to use force to do so is politically unthinkable. Even the separation of the West, however un- desirable, would doubtless not be resisted. But the constitutional right to separate, implicit in the word is another matter. On with the chunnel OTTAWA: On a casual reading, the emergency debate on inflation was a chaotic, incoherent, sprawl- ing affair; political sound and fury signifying nothing. In fact, the few good speeches were important and revealing. Plainly, there has been a partial shift in the Conservative attack, which now focuses much more on monetary policy. In addition, and for the first time, Parliament's attention has been directed forcefully to the long-term perils of the inflationary spiral. If what goes up comes down, what then? There has been a semantic argument for some time about "tight money." In reality, this term is political shorthand, a convenient description of something quite different. Whatever the confusion of the opposition back benches, Jim Gillies, the Conservative financial critic, has a clear enough view of his target an overabundance of expensive money. Even Mr. Gillies, however, keeps slipping into a shorthand plainly unsuited to his own argument. "A major reason for the inflation facing this nation at the present time may be found in our monetary policy. The rate of increase in the money supply in this country between 1970 and 1973 has been roughly in the neighborhood of 50 per cent, whereas the real increase in our Gross National Product over the same period of time is probably somewhere between nine and 11 per cent. Now, Mr. Speaker, to increase the supp- ly by that dimension will cause its value to go down. Of course the purchasing power of the Canadian dollar has gone down. It is because we have practised no restraint whatever on the money supply. The minister of finance, now, I grant, has recognized this, but he is afraid to lower the boom on it. He says instead, 'We'll put interest rates up but we won't reduce the money supply.' The only thing that happens in such a situation is that you get expensive money. What we find, therefore, in the Cana- dian economy today is not only the beginning of a tight money policy, but an'expen- sive money policy." _ A persuasive analysis. The alarm is being sounded, however, when the horse is out of the stable and out of sight. The Conservatives, un- til now, have seemed much more concerned about a too restrictive than an overly ex- panionist Bank of Canada policy. Mr. Turner now has doubts of his own on this subject. he said at one point "the money supply may well be expanding too rapidly." But the minister is un- shaken in his view that the problem is one of excessive world demand. In contrast, Mr. Gillies maintains that "the cost-push inflationary element in the economy has not gone away." Thus he con- siders it "blindness to the point of tragedy not to support a monetary, fiscal and ex- change rate policy with an in- comes policy." Food, obviously, is the best Liberal exhibit supporting the demand case. But it is a fact, as noted by Ed Broadbent of the NDP, that shelter is a heavier cost than food in the family budget. There is little doubt that many people are now incurring very heavy interest obligations on the basis not of present incomes but of inflationary expec- tations, including anticipated subsidies in the form, for ex- ample, of higher family allowances. This is not solely a problem of desperate young couples, since mortgage rates are being constantly renegotiated and move in one direction upwards. Mr. Gillies is also critical of exchange rate policy; the acceptance, as he sees it, of a continental North American exchange rate. His answer to the Bank of Canada's problem, the threat The British government has taken the first step in the building of a tunnel to the continent. Effective opposition seems to be lacking so it is difficult to conceive of anything now preventing the realization of a dream that has been around since the early 1800s. Misgivings about this project cannot be entirely eliminated. Fear of invasion is not now the reason for hesitancy in en- dorsing the tunnel; a much more in- timidating prospect is the devastation mad bombers could cause. The economic advantage of the tunnel, as set out in a white paper, doesn't con- vince The London Economist. There are too many uncertainties such as a slower growth than predicted in the economies of Europe or stiffer competi- tion from the ferries than anticipated. Even if there is a question of the tunnel bringing in the kind of revenue the white paper envisages it is hard to understand why this should be a telling point against it. The British government has invested huge sums of money in developing the Concorde, the supersonic aircraft that seems destined to be a white elephant. It is hard to conceive of the tunnel ever be- ing written off as an obsolescence. Unquestionably the future of Britain is tied up with Europe. The assurance of steady traffic, unaffected by the vagaries of weather, is of great impor- tance in forging a firm relationship with the continent. An achievement in education The situation in which the University of South Africa celebrates its centenary is hardly one that could have been fore- seen by the men who founded it, away back in 1873, as the University of the Cape of Good Hope. Nor could they have guessed at the phenomenal growth it would experience after the Second World War, or how this would come about. It was in 1946 that the regents of Unisa, as it is popularly known, decided to ex- periment seriously with something they called which is really just a fancy word for the familiar business of correspondence courses. At that time Un- isa had 1250 or so students, working in 18 departments. Teletuition really caught on, and this year Unisa's enrolment is approaching with courses offered by no less than 50 departments. Unisa's students aren't only in South Africa; they are anywhere in the world that can be reached by ordinary mail. Scattered around the globe there are 700 centres at which examinations are held, and there are tutorial classes at any of these at which a group can assemble regularly. Studies go beyond the bachelor's degree in many disciplines; last year there were 7000 students work- ing at the post-graduate level. In addition to this quite remarkable growth in its teletuition venture it still carries on with an orthodox intra-mural program Unisa has produced a notable array of sister institutions. Eight of South Africa's other universities were at one time colleges operating under the aegis of Unisa, and five more were founded and nurtured to autonomy under its supervision. To some, of course, there can be no worthwhile achievement within a country that practices apartheid. There is much to be said for this point of view and doubtless it will be said. It must be remembered, however, that mathematics, economics, chemistry and the other academic disciplines have generally withstood political tampering very well in the past, and it is likely they still can. Also, it should be pointed out that most of the world considers educa- tion to be enlightening. So however one may view South Africa's political stance, it would seem the University of South Africa is doing what a university exists to do, and doing it with noteworthy success. "Get me Dial-a-Prayer ART BUCHWALD A chance for everyone The recent decision to eliminate the TV blackout in cities where professional football is played was a crippling blow to those of us who believe in the class system in America. This country has very few status symbols. The one that meant the most to of us in Washington, D.C., was that we could see the home games of the Redskins, while everyone else was shut out. Those of us who managed to buy, steal or beg tickets to the home games were an elite group of people admired and envied by neighbors and friends. On Monday mornings we would come to work and join the poor peasants around the drinking fountain who were discussing the game they had either heard on radio or read about in the newspapers. Casually we would mention we had been at the game, then in that patronizing way most season ticket holders have developed, we would give them the highlights filling them in on the touchdowns, the disputed plays "and, if time permitted, a description of the half-time show. In the evenings we would call up relatives who were blacked out and give them a play- by-play description of the previous after- noon's contest. What better way to get back at a brother-in-law you didn't like or a father- in-law who thought you weren't good enough to marry his daughter? The beauty of being in this upper strata of American society was that you could pass on the status to your children and their children. Since season seats are held in perpetuaity, you were assured that your family would always be among football's chosen people. When taxi drivers, maitre d'hotels and waiters found out that you had entree to the home games, they treated you with respect. Since this country does not bestow knighthood on its favored citizens, the only way anyone had of knowing who rated in our society was through the annual printed lists of those who were season ticket holders. The TV blackout engendered pride in local neighborhoods. People used to point out the houses of those who got to see the home games. In school, children of season ticket holders were given favored treatment by the teachers (in hopes that someday a father might invite the teacher to a There was no problem with credit if you could show that you were one of the honored ticket holders. Obviously anyone who had the-clout to see a professional football game at home was a good risk for any bank or department store. Don't get the idea it was all peaches and cream, though. As a season ticket holder you were obligated to contribute heavily to charity, usually to a nun who stood at one of the main gates of the stadium. And you were expected to appear in all sorts of weather. As part of the elite ciass, you had been an exam- ple to the less fortunate people in the country who were afraid of going out in the rain and the snow. Season ticket holders were noted for their chivalry, good deeds and compassion for their blacked-out fellow men. But now, thanks to a cantankerous Congress, the ball game is over. With one stroke of the pen the president of the United States has wiped out the last vestige of status in this country. He has destroyed our finest privileged class and now made it possible for any Tom, Dick and Harry with a TV set to see football that heretofore was played only for those few of us who really understood the game. Who says socialism hasn't come to America? Is America content to do nothing? By Graham Hovey, New York Times commentator NEW YORK How hollow the rhetoric that ushered in the Alliance for Progress in 1961 sounds in the wake of Chile's tragedy. "This declared the statesman at Pu a Del Este, "is established on the basic principle that free men working through the institu- tion of representative democracy can best satisfy man's aspirations First on their list of alliance goals: "to improve and strengthen democratic in- stitutions through application of the principle of self- determination by the people." And now, 12 years later? Well, now we have a military junta ruling Chile with an iron fist after delivering the coup de- grace to South America's most durable democracy. And over the Andes, in the country where the alliance was born, the armed forces of Uruguay (nobody knew they, existed in 1961) govern by decree through a puppet presi- dent after helping to collapse the purest democracy in the Americas. And across the Rio de la Plata estuary, the "applica- tion of the principle of self- determination by the people" seems certain on Sunday to restore the trappings of power the substance having been returned months ago to Juan Domingo Peron, the an- cient, Ersatz Mussolini who leii Argentina from prosperity to bankruptcy before the army booted him out 18 years ago. And up north, in the giant country whose elected presi- dent in 1958 paved the way for the Alliance for Progress with his inspired operation Pan- America idea, Brazil's anr.y presides over a spectacular, if highly uneven, economic development, barely giving lip service to democracy and stamping hard on dissent. One of those stamped on is that ex- president, Juscelino Kubitschek. One could go on, ad nauseam, but the point is clear: twelve years after the launching with high hopes of an alliance aimed first of all at underpinning freedom and democracy, there is much less freedom in the Americas. There is more oppression, more torture and terror, more censorship and rule by fiat. Why have things gone so terribly wrong? Why have there been more coups since the beginning of the alliance than in any comparable period in the modern history of the hemisphere? And most per- tinently, in light of worldwide accusations of American com- plicity in the downfall of presi- dent Allende in Chile, is the United States primarily to Letter Offended Regarding the picture in The Lethbridge Herald, page 18, September 10: I felt offended by the sight of a young child branding a calf. I feel, that this practice brutalizes children at such an early age. In addition there is a strong possibility that un-, necessary suffering is caused to a living creature. A searing hot branding iron is in- congruous in a child's hands. INGEBORG TOPE Coaldale Nnusenting It was too bad that the first issue of The Herald on the fine new offset press had to con- tain the pic' ure on 18. We realize that bran- ding is a necessary part of the stock raising business but sur- ely a branding iron should not be considered a toy for small children to play with. It is a despicable situation indeed when parents encourage their children to look upon tlJis pain- ful ordeal for a small calf as being, in the words of the current cliche, a "fun thing." A.F.SMITH Lethbridge. blame for this situation? The image of this country as ruthless, pervasive prac- titioner of neo-imperialism simply won't wash. If Washington had indeed turned the Monroe doctrine into the Breshnev variety there would be no Castro regime in Cuba and a Marxist government would never have come to power in Chile (not even Lyndon Johnson's invasion of the Dominican republic in 1965 can be compared to the Soviet occupation of Hungary in 1956 or Czechoslovakia in Of course Washington would not help Dr. Allende clamp on Chile a draconian socialism fiercely opposed by a majority of Chileans. Nor would Washington influence inter- national lending agencies to continue accepting Chile as a good credit risk once it became evident that Dr. Allende could not shore up the economy "or curb inflation, and that his firebrands would not let him make good his pledge of fair compensation for expropriated enterprises. But the ingredients for the Chilean tragedy were homegrown, not imported; here, as elsewhere, United States' influence for better or worse, was marginal. As Covey T. Oliver, a former assistant secretary of state for Latin America, has written: "we have the power, at one extreme, to remofe almost any country from the map but we could not, even if we wished, translate this into control over the country's routine actions." The valid charge against the Nixon administration on Latin America is more one of neglect than of imperialist ex- ploitation. After the extravant rhetoric and feverish activity of the Alliance for Progress heyday, the low-key approach charted by the president was widely welcomed. It soon became evident, however, mat behind the lower profile was no hemisphere policy at all. Mr. Nixon may have dis- closed more of his thinking about the political crisis of the Americas than he intended in welcoming President Emilio G. Medici to Washington in 1971: "we know that as Brazil goes, so will go the rest of the Latin American continent." Is that it, then? Is dramatic economic development achievable only under military rule in a climate of repression and censorship? Many American businessmen involved in Latin America devoutly believe so. Or, at the other end of the spectrum, is a redistribution of wealth, 'a better deal for the poorest Latins, possible only under a Marxist dictatorship? After the collapse of the Allende ex- periment, even many American liberals say so. But can the American government accept such things? Even in disillusion- ment with the Alliance for Progress and recognizing that American influence will be only marginal, can Washington be comfortable with a nothing policy for a continent largely out of control but clearly lurching toward revolution? Henry A. Kissinger said that his recent call on President Echeverria in Mexico City his first diplomatic mission since President Nixon nominated him to be secretary of state "underlines the importance we shall attach to relations with Latin America." How fine it would be if he really meant it. of an outflow of Canad funds, is a short-term intei equalization tax. Whatever its merits, argument illuminates utter disarray that n characterizes all the part For Donald Macdonald, minister of energy, attempting in the energy fi< against fierce Conservat resistance, what Mr. Tur finds unthinkable in i monetary field. Mr. M donald is in head-on collis with Premier Loughe because he is trying separate the Canadian fr the continental price str ture. Traditionally the party controls, the NDP, hi become determined enem of controls. Some are a doubtful about the swit "Selective controls" is compromise formula of moment. It is of intere though, that Andrew Brewii for a nation wide plan of r regulation. For a variety reasons rents are particula difficult to control pecially, one would think, an otherwise unregula economy. Although he is not member of the Conservat financial Al' Hamilton delivered a spe< considered by some Liber the best of the debate. Thi was little partisanship in 'Mr. Hamilton does not h Mr. Turner primarily blame for the present me he thinks instead that succession of ministers hi been getting very bad adv from entrenched oficiald< on the department of finan Mr. Hamilton al concentrated on cost-pi inflation, not failing to n the contribution of enormo ly increased costs government, which ha quadrupled in a decade. His concern was not sol< with the present. In his view the great i mentionable of the pres? Parliament is the knife ed m which the whole wot trading system is perilous ooised. "What more" concern me is that we have never be closer than we were in 1924 to a breakdown in woi monetary affairs. The govei ment knows this, the NI know it and we certainly km it. The meeting in Nairol referred to by the honorat member for Don Valley (K will deal with tt problem. In essence, it is th trade between nations increasing at such a rate th we do not have the moneta media to handle it. Just as 1924-29 gold and English stei ing would not do it, so in 19 neither American dollars n SDKs are sufficient, yet v cannot get out of this gover ment any indication tro their philosophy or policy th this is the problem. "If the world machinery trade breaks down, wh; country will suffer the wors We will." On the issue of controls, M Hamilton does not profess be very happy. He put it th way: "It is not any accident thi the Conservative party, sure, the last party that would ev( go for controls, should con- out and say we see n recourse but for a 90 da freeze, then one and a half c two years for controls to ei sure stability so we can mov forward with out long-an short-range policies Whenever the Conservstiv party accepts that positioi great is the danger to the n; tion because, in the long rui controls are inflationary. Yo have to get out of them as fa; as you can. However, you cat not put in these policies an make these changes unles there is that economi stability. That is what I ar asking this House to cor sider." As the Liberal conventio showed, this view now extend to some in the governing pai ty. In the face of rising infla tion the government is findin it more and more difficult t hold its ground. There is eve, some danger in a too vigprou defence of its present policies for this would merely increasi the difficulties of changini course if and when it become necessary to implement thi government's own con tingency plans. Fhe Herald 504 7th St. S. Lethbridge, Alberta LETHBRIDGE HERALD CO. LTD., Proprietors and Publishers Published 1905-1954, by Hon. W.A. BUCHANAN Second Class Mail Registration No. 0012 Member of The Canadian Press and the Canadian Daily Newspaper Publishers' Association and the Audit Bureau of Circulations CLEO W. MOWERS, Editor and Publisher THOMAS H. ADAMS, General Manager DON PILLING Managing Editor ROY MILES Advertising Manager WILLIAM HAY Associate Editor DOUGLAS K.WALKER Editorial Page Editor "THE HERALD SERVES THE SOUTH" ;