CANADA REVIVES

Evening Post, Issue 20, 24 January 1935, Page 10

CANADA REVIVES

A BALANCED BUDGET

IMPROVEMENT IN TRADE

IHOEE PEOPLE EMPLOYED

(From "The Post's" Rtprncntativt.) . VANCOUVER, January 4.

In a New Year mossago, tho Minister of Finance, Mr, Rhodes, declared that the Canadian Budget would be balanced this year, for tho first time shice 1932, which he regarded as an indication that Canada had successfully weathered the depression, two year? ago there was-a deficit of £8,600,000; last year it was £4,400,000.

The capital loss on tho Canadian National fiailway, which last year was nearly £10,000,000, has been reduced this year by £2,000,000. This, together with the cost of unemployment relief and Fedora} financing of Southern Saskatchewan, as a result of severe, continued drought, mndo a serious problem for Canada. These three items accounted for 06 per cent, in tho increase of the Public Debt, There was a saving of controllablo. expenditure, during the year, of £10,500,000. Conversion-loans reduced by £3,000,000 the cost of carrying the Public Debt,

In almost all branches of production there were, during 1934, material advances over tbo previous year. Thcr» was an increase of 43 per cent, in the physical volume of business". The external trade of Canada duvelopcd during tho year to such an extent that the favourable balance of trade was £28,000,000, compared with an unfavourable balanco.'of. £30,000,000 in tho first year of. depression. The aggregate external trade exceeded £ 203,000,000, with imports up 29 per cent., and exports up 23 per cent. The i'avourablo trade balance is exclusive of almost £20,000,000 obtained from the export of the current gold production of Canadian mines. Credits from trade in commodities, and. the export of gold being thus available for tho payment of external interest and similar obligations, pressure has been lifted from the Canadian dollar .in world exchange market,*. During tho past year, the value of the dollar has been more stable, and has been quoted more nearly to parity with the pound sterling and tho United States dollar than in tho previous year. Ensuing benefit hag beea twofold; it has removed an obstacle to tho conduct of trade abroad, and has afforded a very veal Tolief to harassed public bodies, as well as private debtors, who were previously obliged to pay very large sums when making interest and capital payments in tho currencies of other countries. 810 STEPS UPWARD. Tho value of field crops in.Canada is estimated at £107,000,000,, qr SO per cent, higher than in-tho previous year. Exports of lumber grew by 41 per cent., duo mainly to Empire trade agreements. Newsprint production increased by 28 per cent. "Pish products exported were £600,000 above 1933. Mining production for the 'first half of the year was valued at £27,000,000, compared with £18,000,01)0 for the same period of 1933. The latest preliminary ,.. figures indicate that this, rat? of improvement continued to tho end of tho year. Production of electric power passed all previous records, being 21 per cent, in advance of 4he year 1933. The physical volume of manufacturing production was greater by ,one-fifth. Iron and stool production moro titan doubled, whilo tho output of motor vehicles increased by S0 per cent. Practically all other branched of "production, recorded, healthy gains. Manufacturers employed.'nine persons for every eight employed in 1933. Construction contracts showed a.gain of 34 per cent. Employment advanced, by 16 per cent.

Banks maintained, savings deposits at a high level, in spite of tJl<) reduction in interest rates. Current loans advanced after a long, continuous decline over a period of five years. T.ho gross earnings of the two groat'railways increased by U per cent. Tho aggregate tonnage of cargo in' the five main ports increased by 8-per cent. Wholesale prices wore 3 per cent, botter. Tho price of money fell, and .produced a revival of productive enterprise. The realisation of Empire preferencel is still progressively proceeding, and furnishing-Canada with a sure market in the Mother Country, the largest importing nation in the world, and in the other Dominions, It is to be anticipated that the peace and relative prosperity prevailing among British, countries will constitute a modol and a basis on which an enlarged League o£ Nations may rest, and that the growth of intraEmpiro trade will bo followed by a general improvement in international commerce, based on increasing confidence in tho maintenance of world peace and good will,