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THRSDAY, MAY 2nd, 1946 PAGE TIN *THEflUA14A~IMML>L Jd .. ~ ... ~ - DRIVING TOWARD INFLATION AND ANOTHER DEM1ESSION (Orillia Packet-Times) The co'ntention that the way to avoid inflation is to raise wages and keep down prices is so illogi- cal as to be ludicrous. On the one hand the in@rease in wage costs without any corresponding ad- vance in prices will tend to dis- courage production of many ar- ticles which it will no longer be profitable to manufacture. On the other hand there will be more money in the hands o! those who are in employment. Herein we have precisely the conditions that tend to inflation. Further, the ground will thus be prepared for another depres- sion.y For if inflation cornes, inev- itabl it wrill be followed by de- flation. Meantime the unfortun- ates whose wages or salaries or income from investment are flxed will be the chie! sufferers. And the fact that they have to spend their whole income on a bare liv- ing, will prevent them from pur- chasing what are sometimes called luxuries, and thus further compli- cate the situation in some direc- tion. Altogether the unions seem dçtermined that we shaîl have another depression. Everybody believes in continu- ing controls, as long as the gov- ernment permits an increase-in his own wages, or in the price o! his products, as the case may be. THE DEFENCE 0F DEMOCRACY (Montreal Gazette) Democracy to some countries and to some people is a fine son- orous word with splendid sooth- ing qualities, especially designed for public oratorical purposes. To others democracy is a state of 1mind, a philosophy of life and a form of government without which organized life is impossible. For the latter sort of people, dem- ocracy is not soporific or static, but a living reality and a way of if e. But democracy is not an export- able commodity. It cannot be bought, it cannot be given as a gift and it cannot be arbitrarily appropriated. As Capt. Eddie rRickenbacker phrased it in speak- 1ing recently at the Montreal Ad- rvertising and Sales Executives rluncheon, "You cannot establish *democracy by a dictatorial decree. Nor can you establish democracy by a legislative act." r Democracy is a state of mind ir 1 . * * * CANADA has set an example to ail nations of the world in its control of wartime prices. This great record was made possible by the wholeliearted co-operation of the Canadian people with their Government's anti-inflation measures. Now that the war is over, Canada's fine record should bc maintaiined ... by moderating our pleasures, by controlling unessential spending, we continue to serve our nation and ourselves best. Thle staple necessities of life have priority catis on our money and our efforts. Unnecessary spending at this time will bid up prices on everytliing that is stili searce ai-d wiIl serve only to devalue ail our personal wealtli and that of the nation. The House of Seagram for many years lias advocated moderation and now suggests its continued careful observance in these times. Let moderation in ail we do be the keynote for lasting stability. TH1E HOUSE U SEACRAM g w, e <ca i ,(-e ,qyM;Pi ie &ete Be xa3rtIfe Oiéez(wl.1 ~~ry You'll enjoy our Orange Pekoe Blend TEA i 1 . the liberty-loving which implet ments itself i.n an agreed method of government. And generally the system, when it is successful, cornes as the resuit of a long his- tory of trial, struggle, education and evolution. But democracy exists on conditions. To develop and flourish, the democratic sys- tem requires peace flot war. For the concentration of authority es- sential to successful war is the antithesis of the democratic pro- cess. Democracies however, are prone to forget that the peace that is essential to their existence re- Iquires the power to establish, to protect and to maintain that peaceful state. Capt. Rickenbaçk- the sentence, "the bayonet, the bomber and the battleship form the best kind of peace insurance."1 And again, "kind hearted, opti- mistic but misguided people are being made to believe that it is- undemocratic to be prepared to, defend the principles they live by." That last represents a point o! view. It is art opinion of which democracy alone permits the pub- liý expression. But that way lies waig and more wars. Democracy an(f "national security stili depe-TMI ' upon, weapons that will enfr' peace and provide defence"f liberty. Else liberty peÉhes a* democracy dies. P