Canadian Balance Disturbed

Throughout Canada some thousands of citizens learned with a twinge of fear last week how delicate is the economic balance of a modern state. During most of one night, early in the week, jubilant employes of the vast General Motors plant at Oshawa, Ontario, danced at a ball to celebrate the record production of 201 Chevrolet cars in one day. As dawn glimmered, the dancers trooped home for a dozen winks--rose sleepy-eyed to hurry 2,500 strong to their work. They found all doors locked at the plant. With hearts pounding, they scanned a curt notice: "On account of tariff changes the entire plant is closed indefinitely until the company is able to arrive at an intelligent conclusion as to what future course may be considered advisable."

Simultaneously employes of the Dodge and Durant works at Toronto found themselves locked out. Ford and Willys-Overland employes trembled at rumors that these plants would shut down in a few days. While thousands of laborers and their families wondered where the next pay check would come from, hundreds of investors .saw Ford of Canada stock drop 105 points, with other Canadian automotive issues still more adversely affected. All this havoc had been wrought by a few well-intentioned gentlemen at Ottawa.

New Budget. On the previous day Mr. James A. Robb, Canadian Minister of Finance, had stood up in the Canadian House of Commons and droned out a long speech. He presented the new budget, which reflected so much prosperity throughout Canada that the Government proposed to slash $25,000,000 off the taxes to be paid by Canadians.

Bills were introduced to slash the postal letter rate from 3-c- to 2-c- to lop off a large slice of the income tax; to reduce the duty upon numerous articles -- among them automobiles. On motor cars costing less than $1,200, a tariff reduction of 15% was proposed. On more expensive models a cut of from 27% to 35% was envisioned. Said Mr. Robb, in defending this section of the bill: "There is a pronounced sentiment that the automobile industry has more protection than is needed, and in deference to that sentiment we propose a downward revision of tariff."

The thousands of employes thrown out of work sufficiently testified to the "pronounced sentiment" among Canadian automotive pundits which cries aloud for protection. At a meeting of the pundit's Motor League, the following sulphurous resolution was drafted: "It is the unanimous view of those present that the budget is disastrous to the industry and threatens both its domestic and export trade. . . .

"The operation of the new tariff will result immediately in certain cars and models which have heretofore been manufactured in Canada being forthwith imported. . . . "Automobile dealers will take losses of millions of dollars on their stocks of used cars. . . .

"The unemployment which will result cannot be accurately forecast at the present time."