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Page THE HERALD Wednesday Februarys 1989 Bankings boldest Ottawa Vic Parsons Central bankers are a breed apart The tumult may be rising all around but they stay the course with a sangfroid that begs admire tioo even if you dont like their policy both the Bank of Canada governor John Crow and his US colleague Alan Greenspan chair man of the Federal Reserve have recently been feeling the heat for their highinterest rate policy Public criticism of Crow is mounting as exporters complain a strong Canadian dollar is slashing sales abroad provincial premiers call for lower regional interest rates and bankruptcies and tgage ratesrise As for Greenspan hes come in for a thrashing from no less a figure than US President George Bush The aim of both bankers is to thwart what they see as dangerous inflation They argue this in the longer term would be a more serious blow to the economy than high interest rates today In Canada Crows policy has the apparent blessing of the federal government but Greenspans tioo is more precarious Theres good reasons for that Bush promised American voters there would be no new taxes His biggest financial problem is the na tional deficit Without new taxes he must find money elsewhere to trim ihe debt The logical source is increased tax revenues from an expanding economy The trouble is that m the short term Greenspans interest rates will choke off economic growth as businesses and in dividuals cut their investment and spending TOUGH MESSAGE So the new president had a message for Greenspan I dont want to see us move so strongly against fear of inflation that we im pede growth Bush said bluntly Its hard to imagine a Canadian government disagreeing so pro and publicly with the course set by the central bank Even if the government had misgivings over Crows policy these would be expressed quietly Finance Minister Michael Wilson by law consults with the Bank of Canada regularly But whatever is said at these sessions is not made public What Cana dians see is muted endorsement by the government of Crows policy Thats been the pattern ever since the infamous Coyne affair in the early 1960s When John Diefen baker s government didnt like what the banks governor James Coyne was saying and doing it tried to fire him Coyne refused at first to resign He finally quit but not until he felt vindicated by lengthy debate in both the Commons and Senate The Coyne affair has had a sobering effect on government relations with the central bankers ever since Mind- you the bank is still used as a whipping boy In Coynes day and in Crows governments have taken credit for interest rates when they fall and pinned them on the bank when they rise SALES TRIMMED But what are the critics and there are more each day saying Higher interest rates especially relative to those in the US bump up the dollar That makes our goods more expensive to foreigners Higher rates in the US also eat into our sales by dampening business investment and tion in our export market Bigger interest charges increase the number of bankruptcies already up markedly in over as companies cant cope with their debts These things mean more unemployment And theBank of Canada has already issued a study that says a jobless rate of less than eight per cent adds inflation With current unemployment at 7 per cent and the banks preoc cupation with inflation that does not augur well for Mortgage burdens for have risen One banker says each onepercent nse in mortgages cuts 200000 prospec tive buyers out of the market Despite this Crow remains ada mant that rates must stay up to combat what he sees as broadly based inflationary pressures Will the government follow Bushs lead on the interest rate issue Or will it use the customary Canadian caution John Crows preference would be business as usual tints entitfes to a estimate tk iafoe oft home by REMAX SUBURBAN REALTY INC REALTOR 360 gueJph street SWBTSiT CONTACT JIM TO ARRANGE AN APPOINTMENT toronto Rim It is not our intention listings from other real estate brokers Please disregard this offer if your home is currently listed akers associate broker RES 8777551 Pager 1 552 REALTY ALTON LIMITED DEMAND THE BEST 8532074 MORGAN Res 8732662 EDUCATION 18611866 S S No 8 Dublin hired Robert to teach in the school which had a frame addition made in 1860 The grounds were enlarged in 1862 McDonald taught here from 1861 1866 SS No 13 Bannockburn hired Alexander Campbell in 1856 He remained the sole teacher here until 1 862 In 1 863 Angus JCampbell took the teachers rod until 1 865 Agnes M Adams took over in 1 866 Many thanks to Mark President Esquesmg Htstoncal Society who wrote this article Next meeting Wednesday Feb at Knox Presbyterian Church Georgetown 30 p m John McDonald Slide Tour of All Welcome 229000 Buys a bedroom boo on a with your mtawa or tatty to a on family noma Manyn Morgan Nap at DONT MISS THIS BRAMPTON COUNTRY ACRE CONVENIENCE with Una and cara hat a with walk out garden main floor laundry dan Mparata dining and 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