The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

She Oshawa Sines 86 King St. E., Oshawa, Ontarie T. L. Wilson, Publisher SATURDAY, JANUARY 11, 1964--PAGE 6 More Economists Point To Danger Of Deficits Finance Minister Walter Gordon, as we observed in this space yes- terday, seems to have changed his mind about the desirability of budget deficits. Two years ago, éven a year ago, he saw recurring deficits as steps on the road to disaster, but now he claims to see merit in them. We wonder what Khas made him change his mind. . The idea that government spend- ing can generate prosperity is a plausible theory, but more and more economists are attacking it as pure illusion. One such U.S. ex- pert -- Dr. Harley Lutz, professor emeritus of Public Finance at Prin- éeton University -- contends in a recent study that planned deficits ruin money values and really pro- mote government growth at the éxpense of economic growth. » Deficit spending is part of a fiscal doctrine known as cyclical budget balance. The idea, in brief, is that there should be budget deficits during the cyclical down-swing, then the use of surplus revenues in the upswing to retire the reces- gion-incurred debt, which results in @ budget balance over the period Of the whole cycle. The theory looks fine on paper, writes Dr. Lutz, because it has an appearance of scientific completeness. But its practical defect is that the time never comes when the recovery movement reaches the point at which deficit spending automatically stops. "Spending programs introduced as a recession curative are continued into the recovery period," he states. "There is more political advantage in additional spending than in governmental self-denial to retire debt." Prosperity was once a well un- derstood term, he continues, but statisticians have redefined it to mean an increase of gross national product. Admittedly, lavish deficit spending will raise the gross na- tional product, or appear to, but a better course is to promote such growth by increased capital forma- tion through saving and invest- ment. "Production must precede consumption and capita) invest- ment must precede production," he writes. "Deficit financing is not needed, either to increase produc- _ tion or to increase income for spending. The employment provided as capital is increased will yield additional: income for consumption and investment.". It must be granted that circum- stances may occasionally compel spending in excess of revenues, but the unbalance should be as moder- ate and as brief as possible. "The principal effect of an ever-expand- ing federal budget," concludes Dr. Lutz, 'is to promote government growth at the expense of economic growth; and the principal effect of a prolonged series of deficits to support such a budget policy is to impair the value of the cur- rency and to create an_ illusion of prosperity by measuring our gains, not in real output, but 'in a larger number of cheaper dollars." To Pray Or Not To Pray By REV. WES HERBERT King Street United Church What do you do when you get in a jam? Clam up -- bluff your way through -- or try to get down to the bottom of things and ask God for guidance? This was Daniel's method. If anybody was ever in a jam Daniel was that man. What did he do? He prayed -- the Bible reads, "And his windows being open in his chamber towards Jeru- ealem, he kneeled three times a day, and prayed." We too should keep our windows open toward God if we would have His Power -- no, 'not just to get us out of a jam, but to live the life victorious that Jesus tells us of. What about our religion? Have you ever felt that your religion was a burden to you? Keeping you from enjoying life? And that you would like to throw it overboard? When we feel that way, it means just this, that we have a high set of ideals and little or no power to see. them through; a high sense of duty with a low level of power. Now that's one sure way to be miserable -- to have a high sense of duty and a low level of power. The high ideals are good. All of us need to dedicate ourselves anew to lofty modes of living. But the low level of power -- No! Inner resources of power, that's what we need, to see us through. Ideals without motivating power are like automobile without gas- oline, like light fixtures without electricity. That's it. A high level of power, that's what we need. We need a high level of power to see 425 University Street Thomson , Toronte, Ontorie: 10 Cathcart . PQ SUBSCRIPTION RATES Oelivered carriers in Oshewo, Whitby Ajox. MO Sacln Greckin, Pert Garey Prince Hampton, F moll tin Province of Ontario) livery ereas 12.00 per year Other Commonweelth Countries 15.00 'end foreign 24.00, life through and it comes only as we keep our windows open to God. Don't leave God out of the picture. Remember, He is sovereign Ruler of this old universe. He is not only Creator but is Sustainer as well. We have tried to run our lives and the affairs of the world with- out His help, and it won't work. We must keep our windows open toward Him. The old caretaker of John Knox's house had a visitor linger at the famous preacher's little study, a room which juts out over the street. One window opens towards St. Giles Cathedral and the other toward Holyrood Castle, The caretaker commented, "It is a very amall room, you see, but it has a great outlook." Ours may be a small room. We may have few talents. Out needs can be many, but we; too, can have a great out- look, when we open our windows to God in prayer. "When we pray we open windows And we see a wider view, Flooded with the light of heaven Life takes on a different hue. Unseen hands reach out to help us And in manner wonderful Peace steals on the restless spirit Peace profound, unspeakable." Other Editors' Views (Ottawa Journal) But the Dominion Bureau of Sta- tistics recently put out some sta- tistics which blow some frigid air on any lingering hopes that this civil service city and agricultural valley is soon to be a manufactur- ing centre. The bureau's list of new manu- facturing establishments in all Can- ada contains some 5,000 names. Ontario received just over 2,000 of the new businesses. Our count of eastern Ontario's share, including Ottawa, is only 45. It is the case of the rich getting richer. The great majority of new firms are opening where the old firms are -- in Toronto, Montreal and Vancouver. Not one textile plant, no knit- ting mills, no clothing manufac- turers have settled in this district. Metal fabricating industries have expanded enormously in Canada re- cently. But of the 350 new such manufacturers in Ontario alone, only two are listed as starting up in the Ottawa area, eece . * ate ese © Oe, OTTAWA REPORT Questions Raised & Lag ZX -\ \S By Salary Boosts By PATRICK NICHULSUN OTTAWA--The lavish Liberal government played Santa Claus to all the top men on the totem pole of government employment. On Dec. 20 substantial pay in- creases were recomimended by the treasury board for every deputy minister, the chiefs of staff of the forces, the members of government boards and com- missions, the senior staff of Par- liament and for the president of the publicly . owned Canadian Broadcasting Corporation. These increases were all with- in the $5,000-$2,000 range, with one glaring exception. 'They were granted in reaction to the widespread discontent caused by MPs voting to double their own take-home pay, while leaving the salaries of top government employees unchanged at levels below those paid to comparable executives in private industry NEW JOB--SAME FACE The outstanding exception to the $5,000-$2,000 raises applied to the position of the president of the CBC, for which the sa.ary was boosted by a hefty $20,000 a@ year to double the previous figure. This increase was 'our times the total of the increases granted to the three permanent mei tbers of the Board of Broad- cast Governors. It will probably set off a chain reaction of raises for all senior employees of the CBC, Taxpayers can look for- ward to paying higher taxes to meet the increased cost of the CBC, which now runs at nearly $100,000,009 per year. But second thoughts about the increases, which the Pearson government has been lavishing around, now are being voiced in non - government circles here. Some of the increases were cer- tainly justified and were of a size which marked them as mere increases, But many went far beyond being Increases, and were rather steps which could attract much higher talent into the job. Pearson does not understand this basic principle in pricing, so well known to every housewife, he should have consulted his wife. Mrs. Pearson's cook is paid about $3,000 a year. But if $6,000 a year were to be allo- cated for a cook, would she keep the same cook and double the pay, or would she consider that the job was upgraded and shou:d in future be filled by a more skilled cook COMPETITIVE JUNGLE On behalf of the government it was said that the higher pay of the president of the CBC nuw places that job in line with the pay offered to top executives in private broadcasting. This misses the point. Had the 20,- 000-a-year president been able to obtain and hold down a 40,- 000-a-year job in the fiercely YOUR HEALTH competitive ang competent pri- vate field, he would presumably have quit the CBC and gone after the plums, as his vice- president Ernie Bushnell did. ' But if $40,000 is to be paid by the CBC, then the job should have been thrown open for ap- plications, and the best man ap- pointed. That might have been the president; but it might have been a brilliant outsider who would improve the CBC. Similarly it has been argued here with sound reason that, if the job of an MP was to be up- graded to double the take-home pay, the intent should have been advertised in advance, so that 22,000-a-year men could have applied for it, instead of having $11,000-a-year men paid double. The same applies to that $40,- 000-a-year job running the CBC, In other words, the taxpayer should have been protected so that he obtained full value for his already unduly high taxes. Rheumatic Heart Infection Sequel By J. G. MOLNER, MD Dear Dr. Moiner: What is a rheumatic heart? How does it differ from other heart trouble? --F.S8. Rheumatic heart, belying its name, hasn't much if anything to do with rheumatism or arth- ritis. There are two major categor- ies of heart trouble, plus a num- ber of others which aren't as frequent, The two are: 1. Blood circulation to the heart muscle is impaired, so the organ can't work as vigorously as it should. This is what causes the "heart attack" type of case. 2. The heart muscle may be essentially ail right, but there is trouble in the heart itself, The valves may not be functioning properly. Rheumatic heart is in the sec- ond category. The patient gets a streptococcus infection. The germ, before it is thrown off, may (not always does) inflame one or more of the valves in the © heart. It may affect the muscle as well, at times. Then, as the inflamed areas heal, scar tissue forms, This, in turn, prevents the valves from ~ BY-GONE DAYS #@ YEARS AGO Jan. 11, 1924 Three hundred people attend: ed the opening of the new 40,- = five-room school at Picker- ing. Postmaster Tamblyn an- nounced that Cedardale would have mail delivery in the near future George W. McLaughlin paid the freight expense for the ship- ping of three buffalo for Lake- view Park. The federal govern- "ment gave animals to any com- munity which would pay their expenses District Deputy Grand Pat- riarch W. Gordon Bunker of Dis- trict 17, IOOF, paid his official visit to Port Hope where he in- stalled the newly-elected offic- ers. The Parks C de. Paving operations on Simcoe street north were suspended until Spring. The Ontario Regimental Band presented a fine sacred concert at the Regent Theatre under the leadership of Bandmaster S. Trew. Since this was the last concert ynder his direction he was honored by the presentation of a gift before his departure for the south. Robert Sterling was elected president and Albert Cox sec- retary of the General Motors Male Chorus Ed Bradley, proprietor. of the local rink, favored the building of a new rink financed by a stock company The Ontario Ladies' College bated the type of grandstand to build in Alexandra Park since all 'the tenders for the type re- quired were higher than the $25,000 voted by the citizens of Oshawa. Mrs: R. S. McLaughtin was re-elected president of the Home and School Council, reopened sfter the Christmas holidays during which time it underwent extensive alterations and improvements in preyara- tion for the forthcoming Jubilee Celebration of the college. J. L. Whattam was elected tirst president of the newly- formed vont Club in Bow- manvilie. opening and closing as precisely as they should. In order to pump as much blood as is needed, the heart has to work harder. In time the heart tires because of this extra load. The damage may be smail or great, The consequences of rheu- matic heart may be trifling, or may be fatal. Or anything in be- tween. Rheumatic heart usually be- gins in childhood or in early life, possibly because some people are sensitive to that type of in- fection. But most certainly re- peated attacks by the germ, re- peated cases of rheumatic fever, multiply the damage. The other main type of heart disease, involving circulation to the heart muscle through the coronary arteries (hence the term "coronary" for a sudden heart attack) is usually con- fined to older people. I'll add this simile. Compare the heart to a pump supplying water to a farmhouse in the country. If valves or washers are defective, the motor of the pump has to work overtime to push enough water through the laky system. That's rheumatic heart disease. On the other hand, the pump itself may be good, but the elec- tric motor which runs it has a @ective winding or some faulty contacts, and can't run strongly enough. That is the second type. If the pump part is faulty, and the motor is overloaded too much, in time the motor over- heats and has trouble, too. Dear Dr. Molner: I have what is called Tietze's disease, but have been unable to find out much about it. What causes it? --MRS. R. F. Tt is a disorder of one of the upper joints where the rib at- taches to the breast bone. The cause is not known, and it fre- quently subsides spontaneously in a short time. If not, injection of hydrocortisone eases the dis- comfort. It is not serious. _ UNITED KINGDOM OPINION Tory Leader Undertakes Heavy Campaign Program By M. McINTYRE HOOD Special London (Eng.) Correspondent to The Oshawa Times LONDON -- A further sign that the election machines of the political parties are slipping into high gear is seen in the an- nouncement from Conseryative headquarters of the list of plat- form appearances which Prime Minister Sir Alec Douglas-Home will make in major towns and cities of Britain within the next four months. ; Since the prime minister will at the same time be carrying on the duties of his office and taking part in House of Com- mons debates, the program ar- ranged-forhim takes on stag- gering proportions, It is a much heavier itinerary than has been announced for either Harold Wilson or Joseph Grimond, the other two party leaders. The Prime Minister will start his public engagements 'on Jan- uary 20, They will take him to Swansea, Bury, Glasgow, New- castle, Belfast, Coventry, through Cornwall' and Devon wiht whistle-stop speeches, and to Bristol, Hornchurch, Nor- wich, Aberdeen and Southamp- ton. He will also speak at three major party rallies in London ELECTION DATE This itinerary arranged for the prime minister rules out all thought of an early election, At .the very earliest, in view of this barn-storming tour, it might come in late May or early June, The Socialist chiefs, however, are still covering themselves against a snap election being called in March or even ear- Mer, Mr, Wilson has arranged his speaking campaign so that it ends by the middie of March. Coincident with announcing his election tour plans, the prime minister made some pre- dictions for 1964 designed to boost the election hopes of rank- and-file Conservatives, "Seize the opportunity," he said, "and we shall see our country embarked on a further five years of exciting progress in which the face and life of PARAGRAPHICAL WISDOM There are two reliable ways to get a person to do something he'd rather not: Pay him, or scane him. Note to the reckless driver: Bear in mind that although your skull is unusually thick, it can be fractured. : If you laugh at yourself often, you have a keen sense of humor --also the propensity for. doing foolish and ridiculous things. "Construction Worker Escapes Sérious Death." Headline. Most people believe that there isn't any other kind of death. QUEEN'S PARK Britain will be transformed. If the effort is made, we can look forward to a great victory. Let us start today." 'ENDING COLD WAR Hopes for ending the cold war between East and West in 1964 find a prominent place in the New Year messages of me Minister. Douglas-Home and Mr. Khrushchev, There is a remark- able similarity in the thoughts expressed by these two leaders in what they had to say on the world situation as the new year began.. Mr. Khrushchev expressed the conviction that an agreement between East and West can be reached in 1964 on a broad range of issues, Sir Alec Douglas-Home said that the cold war may end dur- ing the year 1064, because the Russians are convinced that the West would not allow itself to be overrun, The next step, he said, was to try to work out a really genuine co-existence with Russia, "'f in the disarmament con- ference the Soviet representa- ties could only agree to some form of inspection, however limited, it would show us that the cold war is probably at an end," added Sir Alec. Now back to Mr, Khrushchev. Referring directly to relations between his country and the United States, he said: "If the efforts of our two countries and of the other states are united in the interest of peace, this coming year of 1964 can undoubtedly become a year of decisive change for the better in the entire internation- al situation." VIEWS ARE NOTED The similarity in the views expressed by the heads of the British and Russian govern- ments has not passed unnoticed in this country. There is a grow- ing feeling that the tensions and misunderstandings which have bedsvilled international rela- tions for years are now coming much closer to being resolved, GALLUP POLL and that there is some real peaceful iny specific which could be taken to cold war without national security, INDUSTRIAL PEACE The year 1963 has been best year for industrial that Britain has enj ars, The ministry latest issue ' of Gazette, announces the end of November 000 man days of Labor through industrial dispu' would work out at a the "a year of 1,714, days lost. That figure is being co very favorably with the record of 5,800,000 man days lost in 1962, with an average of over four million days lost annually over the last 10 years, and a peak of 8,400,000 days in the year 1957, Three reasons are given by the ministry for this i industria! relations picture, One is that the cost of living has risen by only one per cent. At the same time earnings for the most productive workers have gone up by nearly three per cent. Thirdly, the psychological effect of the unemployment peak of 878,000 last February was as immense as the fail to 474,000 in November was comforting. This comparative era of in- dustrial peace has not been bought by easily conceded wage increases. In fact, aggregate wages went up by only $10,800,- 000 a week in the first lI months, compared with $14,875,- 000 a week in the same period of 1962. The bigger pay packets which kept the vast majority of industrial workers satisfied and happy were mostly a reflection of increased production in in- dustry. =a =f f 5 g : ge zs = 25 32 53 i Labor Paxiy Still Tops British Vote Intention By THE BRITISH INSTITUTE OF PUBLIC. OPINION (World Copyright Reserved) There has been no marked change in the British electors' voting intentions since Sir Alec Douglas-Home took over as prime minister in the Uni Kingdom. The Labor part: - tinues to command favor 50 per cent. of the voters; the Conservatives from 36 per cent. The question put to British voters was: "It there were a general election tomorrow, which party would you support?" Members Expect Increase In Pay BY DON O'HEARN TORONTO -- What will the members get? While you are worrying about taxes they, naturally, have something a bit more pertinent on their minds. It is entirely safe to say that as the elected representatives gather for the session they are mainly concerned about one point Will they get a raise in pay, and how much? They will get a raise. This is pretty well taken for granted. Last year Ottawa raised its indemnities to $18,000. And Que- bec boos' its reward from $10,000 to $15,000. ' If we didn't follow along wi = trend there would be a re- t. However. there won't be any $15,000 here. Premier Robarts' conserva- tism extends to money. The guess now is that the in- crease will be to $10,000--or at the most $12,000. MAILED FINES: It's still questionable whether legally you can clean up a traf- fic offence by mail. You will remember that a while ago a magistrate threw out a routine case on the grounds that it hadn't been fully processed. That is the police hadn't pro- duced any formal evidence, and there was no formal plea of guilty. The summons sent to the © RESIDENT PARTNERS Burt R. Waters, C.A. Hon, J. Gordon obert Monteith, P.C.A., MP. Richi, CA, R.A w. w. F. Lightfest, ¢.A. Monteith, Monteith, Riehl & Co. Chartered Accountants OSHAWA SHOPPING CENTRE Gordon W. Riehl, C.A., R.1.A. OSHAWA, ONTARIO © TELEPHONE: 728-7527 A. Brock Monteith, 8. Comm., €.A. George &. Trethewey, C.A. Gurt R. Waters, C.A. driver concerned had noted he could plead guilty and pay his fine by mail--a practice gen- erall, followed today. And he had sent in the amount noted on the summons. POINTS ANYWAY Nothing has been done as yet to tighten up this: procedure. Tt has been under study and there is a possibility of legisla- tion on it this winter. But the Department of Trans- port has cleaned up its part of the picture, the assessing of de- merit points. It has put through a regula: tion which says that once a per- son has paid a fine by mail points can be recorded. In other words, though the courts may or may not agree that a conviction stands, once @ man has sent in a fine by mail so far as the Highway Traffic Act is concerned he is guilty. The department has such powers under the act it can nake this change by reg- sey it changes in the principle itself of paying fines by mail would probably have to be done by general legislation. Pet, Conservatives ...cccccces 36 Labor 5o Other .crcscscvescccccvcec Poeceeeceecoecoss : - 100 It is clear from the climate of public opinion in Britain that Sir Alec has not made any ; ub- stantial impact on the people as rime minister. This is shown the answers given to the question: "Do you feel more inclined or less inclined to vote for the Conservatives now that there is a new Prime Minister?" More inclined to vote Conservative .......... 16. Less inclined to vote Conservative ....e00.. 19 No difference ...:ccccce. 65 100 - 'TODAY IN HISTORY By THE CANADIAN PRESS Jan. 11, 1964... Canada and the United States, following three years of negotiations, signed Boundary Waters Treaty 55 years ago today --in 1909, The treaty led to the establishment of the In- ternational Joint Commis- sion, authorized to make fi- nal decisions on all cases involving the use or diver. sion of boundary waters or of rivers crossing the boundary, 1923 Belgian and French troops began their occupa- tion of the Ruhr to enforce German First World War reparations. 1945--German troops re- treated from the shattered Belgian Bulge in the Second World War. Ronald W. Biisky, D.¢. CHIROPRAC Multi million dollar Canadian Wholesale Mail Order Company, department dealing in a complete of requires Exclusive County ler. store merchandise, The Company sells over 10,000 items by Wholesale Mail Order basis to consumers. Due to sales on exclusive Dealership will be granted for this COUNTY OF ONTARIO x ful in this interesting supplied, EVEN THE CUSTOMERS Te getty fee w. thie valuable appointment you must: sufficient Have Have 2. 2. A Te copitel REFUNDABLE FEE OF $5000.00 IS REQUIRED interview, phone or write: Dealer Division - Conadian Gift Soles $7 Bloor pea Ae pagent ears, Telephone: 927-3051.