CANADA'S BUDGET

Evening Post, Volume CXXIII, Issue 112, 13 May 1937, Page 12

CANADA'S BUDGET

•TAXATIONUNCHANGED

TRADE AGREEMENT. WITH BRITAIN

Exceptional interest attached to the last Canadian Budget because of (1) its Rearing on taxation and (2) the terms, pf 'the trade agreement between the Dominion and the United Kingdom. In . its business summary the Bank of Montreal remark's that the Minister of Finance could offer no re- . Uef for the taxpayers; on-.the other1 hand,-no new taxatkm was T-roposea, the only change in'existing - levies be-, ing. some minor additions to sales tax exemptions. . . ■ . With respect to the trade agreement,, extensive downward revisions of the tariff affecting a. wide variety of interests, in particular the textile indus-j try, were announced. ' On the whole, the Budget was well received throughout Canada and abroad. .The Minister could give only provisional totals, but he had a much more cheerful tale to tell" than a year ago. The total revenues- from taxation and other sources, estimated at 452,123,000 dols., showed a sain of 80,000,000 dols. over.the figure for 1935-36. 372,596,000 .dols.. and was 60.263,000 dols. in excess of the oiainary expenditures estimated at 391,860,000 dols.; last year the revenues -fell -just -short of meeting, the ordinary expenditure. Special and capital expenditures and outlays on Government-owned enterprises, ryaced at 147,658,000 dols., were down by 12,388,000 dols., and the total deficit was 87,395,000 dols., which was a notable improvement upon the deficit of 160,000,000 dols. recorded for 1935-36 and was 12,500,000 dols. better than the sum .forecast for the, deficit by .the Minister in his previous Budget speech. During- the year the direct debt of Dominion was increased approximately by the amount of the deficit, and the provisional estimate of its total on March 31, 1937, after active assets were deducted, was 3,093,495,000 dols. UNEMPLOYMENT RELIEF. The disclosure that unemployment . relief would' cost the Treasury 80,500,000 'dols. this year, or a million, more than in the previous year, was disappointing. •" ,"■ ' ■ . ■ The sum required for the deficit of the Canadian National Railways system. 43,303.000 dols., was down-by some 4,000,000 dols. " "• ■•',,„,_' In regard to the fiscal year-1937-38, the Minister confidently predicted a further improvement in the national finances. He forecast'that the overall deficit would not exceed 35,000,000 dollars, and he held out hope that the Government, in tUe following _ year, would attains its avowed objective of a balanced Budget. The Minister declared that the past twelve months had witnessed clear and gratifying evidence of expanding business activity and more.widely distributed economic betterment, and said that the immediate outlook pointed to a continuation of the present encouraging trends in economic activity.. But he was careful also to point out that certain special problems inherited from the war or. arising out of the country's', economic and political structure ; still'awaited' solution. . '-.';. .:':,' . :': CANADIAN FARM EXPORTS. The terms of the revised trade agreej ment between Canada and the .United Kingdom showed that, except with regard to a limited number of commodities, the right of free entry for Canadian products into Great Britain is retained and Canada is given guaranteed preference margins on 21 commodities, including wheat, butter, cheese, apples, timber, copper, canned ■ salmon, zinc, lead, and patent leather. The Dominion is also accorded a reduced rate .on silk stockings and a guarantee against increased duties on motor vehicles. . ■„ The maximum quota of 280,000,0001b of bacon and. ham exports to the United Kingdom is- retained and exports of cattle and meat up to 50,000 head of cattle annually are safeguarded. ' The concessions granted by the Dominion include tariff reductions on 179 items and guarantees against increases on 246 items. The number of tariff items on which margins of preference were guaranteed against decrease under the old agreement has been reduced from 215 to 91. Reductions in'the Canadian tariff apply, amorlg < other commodities, to textiles, glass, iron- and -steel, machinery, leather, boots ani shoes, paper products, paints and. varnishes, soaps, brushes,'and silverware. A CHECK ON DUMPING. There, is a'mutual undertaking not to require a higher British content than 50 per cent, in goods for export, .and each country holds itself free to suspend preferences if advantage is taken of them for the purpose of monopolistic control. , As a check on the pos-,. sible dumping of goods in. the United Kingdom by Canadian exporters, the Canadian Government agrees to exempt particular classes oi United Kingdom goods from dumping duty in Canada. This meets a complaint that Canadians could dump in the United Kingdom while British exporters were prevented from retaliating because of the ordinary. duty plus special duty applied by the Dominion. The new agreement will-be in operation for three., years from February 25, as against five, which was the duration of its predecessor. Trade and industry throughout the Dominion continue in a healthy condition, the distinguishing feature being a reflection in the price of manufactured articles of the sharp rise in the price of raw materials which began some months ago and is still proceeding. .