CANADA TO-DAY

Evening Post, Volume CIX, Issue 51, 1 March 1930, Page 8

CANADA TO-DAY

AN ECONOMIC EEVIEW

INDUSTRIAL GROWTH

(From "The Post's" Representative.) VANCOUVER, sth February.

Continuing the change-over from an agricultural to a manufacturing country, Canada in 1929 witnessed industrial production 14 per cent, higher than the previous year, which also was a record. What is known as the dollar volume of general business, as measured by banking transactions, was S per cent, higher; tho general level of employment was higher in every month than in the preceding year. Even allowing for the readjustments necessary aftor. the stock market debacle of October, no previous period in Canada has seen tho economic activities expand more rapidly. Tho decline in the crop yield from half a billion bushels in 1928 to less than 300,000,000 bushels in 1929 has many compensating attendant circumstances. Tho crop was higher than the 1010-20 cyclo, the quality of the yield was the best in many years, and prices have shown a firmer tendency, which,'with higher quality "and more "orderly" marketing, will enable it to bo marketed on a botter basis than for some time. Tho considered judgment of export observers of tho stock relapse, ■in which a bull market. of years standing subsided, is that prices will remain higher than when the movement began, and that deflation has released capital for use in nonspeculative fields to a very ameliorating degree . During tho past four years, iron and steel industries have boon producing in greater volume than in any preceding period. Notwithstanding the high level of 1928, tho output, in 1929 was 10 por cent, higher. Imports of raw material in iron and steel showed a gain of 28 por cent. These gains wero passed down to subsidiary industries, which wero more actively cm■ployed than in any ' other peace-timo period of similar duration. HYDRO-ELECTRIC POWER. The Beauharnois project ou the St. Lawrence, contemplating an expenditure of £16,000,000, was the chief new hydro-electric development of tho year. The output of electric energy was 11 per pent..higher than in the previous year. Its value is best seen in tho fact that, every dollar expondod on tho development and transmission of olectric energy involves the expenditure of six dollars in applying the power to its ultimate uses. Though tho Canadian mining industry attained new progressive records in each of the years 1926, 1927, and 1928, still heavier yields were reported in 1929. For the first tima the value of output was oVer £60,000,000, new records' being established for thirteen minerals. Copper, nickel, lead, zinc, petroleum, asbestos, and structural materials showed big gains. Of even greater promise- was the activity in prospecting' and: in tho opening up of now oro bodies. In the last nine yoars, the pulp and paper industry has acquired first rank among the manufactures of Canada, heading the list also for distribution of salaries and wages. Nowsprint output,, which was 800,000 tons in 1921, was "2,000,000 tons in 1023. The value of building contracts was & 110,000,000, two and a half times greater than in 1921. Current loans in chartered banks wore £50,000,000 greater than in. 1928. Owing to tho strong banking position, there was no currency panic in tho stock crash, and no marked difficulty has ensued since in obtaining credit for industrial or, business operations, and interest rates have showed a decline in the principal money markets. There has been no inflation of commodity prices. Tho wages of labour and the cost of living have remained steadily firm. • ' There was a set-back in tho trade balance Imports were up by £20,----000,000, exports down by £14,000,000. A favourable balance of £64,000,000 in tho end of 1926 became an unfavourable) one in 1929 of £12,000,000. Movements of capital into Canada under expansion conditions explained much of the import side of this equaf tion. The declino in exports accumulated in the last half-year with tho falling-off in the movement of grain— partly attributable to. lower yields, but reflecting, as well, the policy of the Canadian .Wheat Pool, fully endorsed by its 140,000 members,' of withholding shipments for a more equitable price. There was, on the other hand, an increase in revenue from taxation higher than in 1928, in spite of reductions in taxation in the last Budgot.