The Canadian War Effort

Press, Volume LXXVII, Issue 23262, 24 February 1941, Page 6

The Canadian War Effort

The political situation in Canada is neither happier nor nearer national unity than that in any other Dominion. In spite of the record majority with which Mr Mackenzie King and the Liberal party were returned at an election fought primarily on the division of State and Federal Government powers, the Federal system is functioning no more' efficiently than before. Now that Canada's war effort has parsed- through its preliminary stage, the unequal distribution of financial burdens'between the Central Government and the Provinces has become a major problem, interfering with plans for industrial expansion. The shortage of labour now emerging as the strength of territorial units and of the. expeditionary force is built up is expected to force the Government to an early decision on wage policy. Wages have been rising steadily and there has been an insistent demand for their stabilisation. Moreover; as the full employment of Canada's resources is approaching, the Government has ' now to decide what kind of war effort must have prior claims on manpower, industrial resources, and raw materials. The question for 'Canada is 'whether she should repeat her industrial policy of the last war by specialising in the production of enormous quantities,of a few products, or whether she should spread her. ! industries by curtailing volume, so that they lean produce as many different types of equipment as are required for a self-sufficient home defence force. Canada's war effort is, therefore, in its critical phase. The difference between the two types of war effort open to Canada has an historical as well as a political significance. Since the fall of France, Canada has been asked to manufacture aeroplanes, tanks, guns, and mechanised equip- \ ment—all requiring specialised . capacity and skilled workmen. In the last war the cry was for men, foodstuffs, and munitions. The war of 1914 came at a moment when Canada was uniquely fitted to meet British demands. In the previous 20 years trans-continental railroads had been built, the prairies had been made available for settlement, and floods of immigrants had poured into the country. The era 6f expansion was just ending and a long process of occupational change, ftorn railway builders to farmers, had begun. Ordinarily the adjustment would have been long and painful. But war demands for wheat eased the problem of readjustment. Canada was also able to put i 800,000 men in khaki, and developed her muni-

tions industry to such an extent that by 1918 it was estimated that one-third of all the shells fired by the British armies were made in Canada, To-day the Canadian economy is not so well geared to meet Britain’s war demands. There has been a . considerable expansion of industry during the last 20 years; but should Canada aim at diversity rather than specialisation in her war production, she can spread her efforts only thinly over the whole field. Nor can Canada repeat in the present war the donothing economic policy of the last one. A nation may get away, with inflation when war costs do not exceed 10 per cent, of the national income, as was the case in Canada between 1914 and 1918. But the Canadian war Budget has now risen to more than. 30 per cent, of the nation’s income, and may rise to 50 per cent. Although the Government that is charged with making these decisions and implementing the war effort has tlie largest majority in the history of the Canadian House of Commons, it has been subjected to a continuous stream of criticism. The Opposition, small as it is, has been shrewdly led and has preferred to voice the popular desire for a more vigorous war effort than to form a National Government on Mr Mackenzie King’s own termsl To satisfy the 45 per cent, of all Canadian voters who refused to endorse the Liberal programme, Mr King made one attempt to form an “ all-party ” Administration. Disregarding the Parliamentary leaders of the Conservative Party, he approached several prominent businessmen of Conservative faith. For various reasons they were unwilling to accept his invitations. Mr King then fell back on the resources of his own party and reconstructed his Cabinet by bringing»in new men. Whether the new Parliament will be an improvement on its predecessor, described as the most subservient House in Canadian history, seems to depend, therefore, on the development of a vigorous independence in the Liberal ranks. As Canadian war policy is now meeting its first crucial test, the Liberal Whips may regard the stifling rather than encouragement of such independence their most urgent task.