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THURSDAY, MARCH 26, 1942 PAGE FIVE THE CANADIAN STATESMAN, BOWMANVILLE, ONTARIO Dangers of Inflation and Methods' 0f Control Revealed in Address (Continued from page 1) Inflation can be accomplished in Money vs Services several ways. Indeed, the word is used iooscly with many varieties À Money, in ils strict sense, does o! meanings. We speak o! an in- not carry on a war. Ils function in flated stock market or we say that time of war is 10 act as a medium real estate values are inflated or o! cxchange rather Iban as a that certain commodity values are standard 0f value. We are con- high and expanded much beyond fused when we say that abun- taeir truc level. These occur from dant momies arc the sincws Of lime 10 lime for short periods ýv ar. wthout causing nseiu dam- Y are ail awarc 0f tac funda- age or maladjustmenîs o! the Jeî~ principles 0f war finance. country's economny. Inflationary The real costs o! the war are the endencies 0f tais type, however, goods and services witadrawn ouI are mot included in our thoughtsJ of current production 10 meet the or discussions when we mention needs o! war. The function o! war inflation in war lime. finance is thrce fold: 1. To pro- PIIII rs oe duce the maximum amount o! rnigPrs oe goods and services for war pur- One of the commomesl methods poses. 2. To divert, where neces- of inflation adopted quibe freely in sary, goods and services from other wars, such as the Napoleomic civilian 10 war purposes. 3.* To dis- Wars and the Civil War o! the trîbute the burden o! the sacri- United States, is the printing o! fices for war as evenîy, as justîy promises 10 pay, which the Gov- and as equitabiy as possible over crmimenî trades for the goods and the entire population wibhouî dis- services il takes from ils citizens. turbing the country's productive We, in Canada, used this method effort or ils morale. quite extensively in the lasI war, This is done on the financial aithough mot so extensively as the next method I shahl describe. side by one o! several ways or a However, today every citizen o! combination o! taem; taxation, every country, knows the danger borrowimg and credit expansion, o! letting the printimg presses run commonly calied inflation. In ad-felan Ido otbiv t dition, war finance, in the cours-eely amd dolot eieve ild o! ils operations, calîs upon the nouydbe posrysibe 0areettod aid o! what might be called me- f in ay demoherascr amt chamical devices such as rationin - o!Canadac ig the wr.cutis e curtailment 10 the point o! coin- lidCanlieotro count ri te plebe cessation o! the production ledpason orroithmajdoredirt o! non-essentials and, finaily, o e c~sotofmlthe m ar pfart placing a ceiling upon prices , lion, through ceib expI arnla- wages and salaries. mosî insidious. There is the pleas- Taxation is the most equitable - amI sensation o! quickening busi- o! tbe three methods but, for sev- mess and rising prices and then, eral reasons, ils exclusive use is before we arc aware o! il, in- impossible. Indeed, taxation be- hlation is upon us, just as il was yond a definibe point is cumber- begimning 10, do last summer, al- some and quite impractical. With thougb aI Ihat lime is was mot tac lime aI my disposai, I do ot caused by credit expansion. believe you would wish me 10 cn- large upon the advantages and Credit Expansion disadvantagcs o! the taxing pro- Inflation, tbrough credit expan- cedure. sion, begins in the form o! bor- Loans and Taxation rowing but mot borroîgoIo Borrowing aI home is equitabie, current savings. The oermn taougb since il is voîuntary, il selis ils bonds ta tac bamks who permits tac tboughtless and tac thereupon place tac necessary selfish ta escape. For this reason, credît aI the disposai o! the Gov il is not s0 desirable as taxation. crnmemt in tac form o! depos. Nevcrtheiess, borrowing from the T h u s additional supplies o f nation's own citizens is both de- money are created ancd used to sirable and neccssary. The ouI- purchase what tac country necds. standing reason is thaaîil permits meyttas procedugre tacGoern.t the individual t10 conribute 10 themetaksnhngfo tcci- war effort by increasing his sav- zen, ither by taxation or borrow- ings ta tac maximum and making ing; il merely enters mbt comn- taemn available 10 himself in the petition .with him, using ils new futre or he ain da afer hemoney against bis old 10 force watr Ilr ebi hl 10 psîperheprices up against hlm and thus bis presen ay cs ivilian require- take bbc goods and services from hines untl afler the ar. From him. This can be donc aI ever ment untl ater he ar. romshorter and shorter intervals. the point o! vicw o! the state it Furthcr, tac borrowing does mot will reduce considerably the postned1beocdrcty ibth war robemso! nemloycmtbanks. It may be donc by arrang- and other maladjusîments and atIngta rvt niiul u tac samne lime reduce the strain igIa rvt niiul u upon bhc current supply of civil- bbc bonds by borrowimg money ian goods and services. The Gov- from tac banks and payng the ernmnî usîencurag il cii- an in instalments. To the cx- zrnen 1msaecrgeposs i o- lent that tac individual borrows zarend ae em avaosible 1ol fromn the bamk and docs mot pay bbcrvary maximum 10 albbc Go- is inslalments on lime and in fuli ment. The magnificent response bfr h etGvrmn a o! tac Canadian people in sub- appears tac result o! borrowing srkg a4,ew days ago practical- dircctly from the bank or from ly 'll1om dllas t bbcDomn-the individual is the saine. Thus ion îlt ur n date, theloiv e ile inflation b as b eg un, ibei i ee apprecation o! eee _should tac Govcrnment be umable facîs. aprcato o heeto posîpone bhc next lban for a Th thid t sufficient tirne ta permit the pre- Yi Iflaionvious loan ob completely ab- .y Te tirdmetbod o! financing sorbcd by bbc public and 10 per- thc war is the cvii, vicious one o! mit the banks 10 dispose o! their inflation, that is neyer adopted if holdings. This metaod o! inflation il can be avoided. The first re- depends therefore upon a lime lag. sponsibility o! tac govcrrinmnt is 10 mobilize and direct the nation's Pay as You Go maximum effort 10 winning the I behieve a taird metaod exists. war. Accordingly, il must always Il was bccoming apparent in Can- be rcmcmbercd thal, if a people aI ada lasI Autumn. Il was not tac war do ot support bbc war effort resulî o! amy direct action on tac promptly and sufficienlly tbrougb part o! tac Governmcnt. Il was taxation and voluntary lcndimg o! purely an indirect reaction 10, our tacir maximum possible savings cgaging in war but was, in fact, and, further, if bbcy do not ca- a legitimate part o! the price sys- operate ta make aIl ratioming and 1cmn as il operates in a peacetime curtailment effective, then their economy. I propose 10 discuss this governmcnt must and will resart in some debail in a f ew moments. to inflaionary measures. Inflation In seeking 10 undersband bow is a vcry efficient and quick mctb- Ibis inflaionary movemnent of od o! divcrling civilian goods and 1941 devcloped in Canada, icI us services 10 tac Govrnmcnt for go back 10 bbce oubbrcak o! war. bbc purposes o! war. Il is, neyer- On tac 121h o! September 1939, theicss, tac most unjusb and un- the Canadian Govcrnment an- equilable o! ail mctbods o! war nounced ils policy o! war finance. finance. It is a system o! taxation, Il was called a "pay-as-you-go" plcasantly and attractivcly dis- policy witb bbc maximum possible guiscd, wbich vialabes bbc prin- taxation. The Government gave ciple o! taxation that taxes should bbc !urtacr unequivocal promise be lcvicd in accordance wibb bbc that "wbat we cannot mccl by ability 10 pay. Insbead, it sels up taxation, we shail finance by bbc principles that taxes shahl means o! borrowîng !ramn the be collecced in accordance with Canadian public aI rates as low as tac amaunt o! goods and services possible." That promise bas beer bought. The individual wita no kept and deviation from tbis surplus income pays igbcr rates policy o! warimne finance has ycl o! tax Ihan bbc individual with a ta occur. From bbc beginning, the large incarne and ample surplus Govrnmenî and ils advisors bave over bis cosî o! living-bbc exact set tbeir faces firmly against in- gome, tac country is ripe for cras- economy. cconomic and social upheavals. At tais point, may I draw your dSuch was the resuit o! the Ger- attention 10 tac facI Ihat the con- m an iflationamy movements ceptian o! our wartimc finances wben the Govcmnmenb in power was set forth in great detail an losI control o! ils fiscal policy and tac 121h o! September, 1939, and made possible bbc advent o! Nazi that bbc first great control meus- control. S0. 100, can il be said tbat ure over our economic h! e wcnt tac downfall o! France and ber mbt full operation tarce days fol- present tragie fate as a slave iowing, on bbc 151h o! September, stabe can be laid 10 that inflation 1939, whcn tac Foreign Exchange whicb wiped out 80 percent of Control Board began ils oper- tac prewar value of tac franc. -allons with ils formas available the same day in every bank through- out Canada. I oflen speculate on how many hours of hard work must have gone mbt these two pieces of legislation long before war actuaily began. Unempioyment Ceases The decisions relating 10 For- eign Exchange were taken at the end of a period of failing business activity. The year 1938 had seen steadily increasing activity 10 a peak in November. The high hopes of 1938 were not realized in the early months of 1939 and the high point of 1938 was mot rcach- ed until August, 1939. In August 1939 there were 839,000 people in receipt of aid and il is probable that the total unemployment was much higher. On the lst of Sep- tember 1940, at which date the Government discontinued publi- cation of these statistics, there were siil 262,000 in receipt of aid. In the first six months of war, our war expenditure was $118,000,000. Now we are spending for Ibis pur- pose more than that in one month. We were umdertaking the estab- lishment of a tremendous war in- dustry, something entirely new. Our difficulties were many, but large numbers of mem were not required in the eariy months. We required plans and specifications, new machine tools. We had 10 be- gin the training of mcm skilied in new activities. We had 10 over- corne the scarcity of many mater- ils and 10 adjust ourseives 10 war conditions. All this took lime. By August 1940, the index of employ- 1 ment had risen by ten points only. The Canadian people were im- patient with progress being made. There was but slight realization 0f the tremendous amount o! planning and preparation that had 10 be dome before production in quantity could begin. During 1940 there was ample labour and plant capacity 10 produce for civilian needs. Thus the year 1940 did not pro- duce any undue strain on Can- adian economy. We were busy placing our unempioyed in acfive employment and putting existing plants int full operation and as- sembling new ones. In addition- and this is a signifîcant fact 10 re- member-during 19401 the United States was still, in the main, play- ing the part of the intcrested spec- tator on the side limes. There was somewhat o! a slump in that country in business activity, much unemployment and much idle ma- chinery. Canada was able to ob- tain ail the essential imports she required, both for war and civil- ian purposes from the United States, limited only by her capac- ity to obtain the necessary ex- change. The oly bottleneck in Canadian production in 1940 was forcign exchange and that was solved by the Hyde Park Agree- ment in April, 1941. U. S. A. AwakensE In 1941 the situation cbangcd. The United States was no longer mereiy an inbrested spectator. She had begun 10 prepare for war, ta build an army and ta equip hersel! for ber own defence. Soon Canada was unable 10, obtain prompt delivcry o! many articles for civilian use from the United States, goods o! whicb she badan insufficient supply or o! wbich her production was inadequate. AIl o! Ibis occurrcd when Can- ada's own production o! war goods was rapidly icrcasing. The cbangcd position in tac United States had an immediate and di- rect effecI in Canada. The manu- facture o! many articles was sevcrcly cutailcd. The supply o! civilian goods deceased-motor cars, radios, rcfrigcratrs-to men- tion lwo or tarce taings maimly in bbc public cyc. Bottlcnecks up- peared in the production o! many commodities in spite o! tac seting up o! controls. At the same lime bhc national income was increas- ing, giving tac individual bbc abil- ity to, bid for bis prcvious share o! tac prcscnbly dccrcascd amount o! civilian goods. This latter situ- ation bas been put very clcariy by the Minister o! Finance. On Sep- ember 18ta lasI be said: "The basic facbor is the tremen- dous increase in private spending power in relation 10 bbc dwindling supply o! commodities wbich can be baugbt for civilian use witb- out conflicting wita tac war pro- gramme. If wc taimk o! aur total national effort as being an 8-boum day, wc are spcndimg now perhaps about 3 bours o! il in producing goods for wam or doing war work o! variaus kinds, and wc are spcnding, say, only 5 boums pro- ducing bings ta be sald on the market. Yet wc arc stili gcting pajd for 8 boums' labour. If wc ahi Iry ta spend 8 boums' pay on 5 boums' product, obviously prices will go up. Tbis is a mathemabical tmuism. Il is bbc fundamembal fac- tor in tac situation. Il poses what is for us bbc fundamembal problcm o! dawing off bbc surplus pur- cbasing power o! private consum- crs, in order (1) Ibat il may mot compete wiîb and therefore retard the war effort; (2) that il may mot give ise 10 aIl the evils o! infla- tion whicb became s0 familiar ta us during tac lasI war; and (3) tbat il may be de! etrcd in order o10 provide a support against deflabion1 and a stimulus ta production andJ cmploymcmb in bbc posî-war per-1 iod when present conditions arc likely 10 be mcvcrscd. Let us face the issue ciearly. Wc have two al- ternatives. Elîber wc must have an effecîively planncd and oper- ated set o! controls whicb will be dcibcrately designed ta restrict civilian consumption and prevent1 inflation whilc attaining tac ob-i jective o! bbc war programme. Or altcrnativcly, wc must aliow a sub stantial inflationary risc in prices1 la take place wbicb will auto- mabically restrict civilian con- sumption and bbcreby enable tac rcquired materials and labour to be uscd for war work. I believe wdarc ail agmeed on the evils o! inflation and the absalute neces- sity o! prcvcnting il."1 Evidence Quiekens In addition, tac BaIlle o! the Atlantic during 1942 scrvcd ta, curlail stili further civilian. sup- plies by rcducing sbipping space and retarding deliveries. Wc arc having furîber evidence o! Ibis today witb tac simking o! ail tank- ers on tac Atlantic coast and sbortiy wc may be able ta obtain even less gasoline than wc cxpcct. Furtaer, tac salesman was quick ta take advamtagc o! the dwind- limg supply o! goods be had 10 seli, urging greater buying and greater stockimg up against the in- ecrease in p(rices next wcck or mcxl monta. The familiar car- marks o! inflation Ibat I mention- cd carllcm-slow deliveries, con- gcsted transportation, duplicatcd orders, buying abead, stocking o! ,supplis-appearcd. Sucb was the situation in Can- ada in tac summer and carly auîumn o! 1941. The Government took decisive action and maved 10 control tac prices o! practically al goods and wages. Thus bbc ncxt step in tac furtacr regimentatian o! Canadian life appcared. Scarcity of Goods This is bbc third metbod o! in- flation o! whicb I spoke. No dir- ect action was necdcd on bbc part o! the Govcrnmnt ta produce lb. AUl tbat was neccssary for the Gavernmcnîtat do was ta stand idby by and progressive inflation was in full fligbt. Imdced, infla- tion o! Ibis type 15 mot jusb some- tbing 10 be avoidcd but somctbimg against wlic an aggressivc of- fensive must be undertaken. Wbcn bbc country bas ail-ouI cm- playmcnt (and the cmploymcnb index in Augusb o! 1941 stood 30 points above tbat o! August 1940) bbc mobilizing o! idie deposits- bbc greater specd wilb whicb moncy circulates in limes o! great economic activity-Ibc easy ex- tension o! credit because the bar- rowers bave gaod prospecls-wili vcry rcadily dcvclop inflation. Under sucb conditions, bbc inf la- tion will be extensive and cx- treme. Tbus, lbrougbout 1941, migbty farces werc ail convcrging upon the same point in our cconomy- an increasing proportion o! aur productive effort devoted la war purposs-a dwindling supply and production o! civilian goods-an incrcasing inabiliîy ta obtain ci- vilian goods from abroad and a steadily rising national income free ta compete for sucb civilian goods as wcrc available. In addi- tion, bbc move began 10 gel rid o! the dcpmeciating tokens o! money and 10 hoard and stock up as quickly as possible as much o! bbc lesscmimg supply o! consumers' goods as il was possible 10 obtain. Taxing Non-Essentlals The Governmcnb bad prcparcd for sucb a situation from bbc very outbreak o! war. The firsb de- fence againsb inflation is a sound fiscal palicy o! taxation and bar- rowing aI home. Camadians are paying in the present fiscal year about tbree limes as much in taxes as tbcy did in 1939-40 and will pay sîill more. The signifi- cant feabure o! tac imposition o! taxes is that the direct taxes bave incrcased five limes whilc in- direct taxes have but doublcd. Taxation bas been impascd ta slimulabc the production o! es- - sembials and 10 retard that o! mon- YO0U R E STATE If yau want a prompt, economica , business- litre administration of your estate, nome as your EXECUTOR- THE STERLING TRUSTS CORPORATION 372 BAY ST., TORONTO .~OVER 28 VEARS EXPERIENCE CHOICE MEATY PRUNÏES708' AYLMER CHOICE e QUALITY MEATS. TASTY SKINLESS WEINERS ILb.23C MILD SEASONED BOLOGNA ILb.199 MACARONI CHESELOAF l.25 C SMOKED BACON SQURS ib. 25C. essentials. Thus taxation has been increasingly restrictive as the na- tional income increased. In addition, a system of direct tax at the source on ail incomes over S660 a year has been orgarniz- ed under the name of the National Defence Tax in such a way as to provide as easy method of ob- taining increased revenue from gross incomes, at the source. It is collected monthly and provides a steady streama of revenue for the Governrnent. Peopie Put Up Cash I think it can be said with much pride that over 75% of the total Federal expenditure both for war and otherwise is being paid out of current taxation. Borrowing has been done on an equally sound basis. Except for the early bank loans of $450,000,- 000, borrowing has been done at home and, in the main, directly out of current savîngs of the Canadian people. You will note that in ail Victory Loan cam- paigns the intimation is always given to the banks that they are not expected to subscrîbe. The Govcrnment has also pressed the continuous sale of war savings certificates and has stressed the advisability of their purchase by the method of deduction frorn the weekly or monthiy wage or sal- ary. Sales of war savings certi- ficates will be organized stili more intensely and efficiently within the next few months. These two steps, taxation and borrowing, were designed to re- duce the amount of money avail- able in the hands of the public for the purchase of civilian goods and services. However, heavy though the taxation may be and extensive as is the borrowing, no Government can divert by these mneans alone ail the increase in the national income mbt the war effort. Divert Millions For example, Dr. Mackintosh, economic advisor to the Deputy Minister of Finance, stated a few months ago that in 1940 the in- crease in the national income was estimated to be 500 millions, of which the Government expected to divert 400 millions into the war effort. 0f this amount, 210 mil- lions were to be raised by taxa- tion and the balance by borrow- ing. Early in 1941 il was antici- pated the national income wouid increase by a further billion dol- lars, of which $600,000,000 was to be diverted 10 the Government by taxation. I fancy the final figures when released, will be somewhat greater than these. Thus it will be seen that a very large increase in money income was left in the hands of the pub- Ib.19C 5Ibs. 1OC lic to spend as it would. It is this large reservoir of money in- come in the hands of the public that constituted sa great an in- centive towards inflation and higher prices. Part, but not aIl, can be diverted by making large public issues of Government securities. Suggestions have been made that the Government should resort to forced boans. I arn glad ta say that, so far, the Govern- ment has refused to do so. Il is not an equitable way of raising revenue due to the different ob- ligations of men earning the samne wage or salary and, in addition, it is doubtful whether compulsion would obtain substantially great- er amounts than the voluntary system. Further, it may become a dangerous method, an instru- ment of great inflationary power, as indeed it is proving in New Zealand. Controls Tighten The third defense agaînst in- flation is a system of controls- regimentation, if you like. Quite early the Government began ta set up controls of various kinds, organizing them, perfecting them and having them ready for still greater and broader responsibili- ties. The subject of controls is extensive enough for an evening's discussion; suffice it now to say they cover foreign exchange, ma- chine bools, metals, fuels, power, electricity, food, new construc- tion, the use o! silk and rubber and instaiment buying, including charge accounts. The list is not complete. Further, a system o! priorities has been set up design- ed to supply ail the necessary de- mands of essential industries while curtailing ail others. Quite eariy the Government set up the Wartime Prices and Trade Board ta control prices of selected commodities but, when the inflabîonary movement began to gather speed in the summer o! 1941, the Government was forced to consider the next step in con- trol. They could have extended the powers of the Wartime Prices and Trade Board, giving il con- brol over a greater number of selected commodities or they could give it an over-all control over practically ail goods and ser- vices, at the saine time exercising control over any increase in wages and salaries. The Govern- ment decideci upon the latter. AI- ready the effect has been felt; the cost of living has remained sta- tionary, the public is not exerting the saine pressure to buy in ex- cess of its needs and the sales- man is no longer able to appeai for larger orders to avoid a comn- ing increase in prices. In addi- - tion, a very definite psychological 0 FRESH FRUI' CALIFO"NI BUNKIST ORANGES INAVLS TXAS MAESU SEEDLESS GRAPEFRIT i'IRM tIBISP HEAD LETTURE TE»ER SWEET NEW CARROTS cnISP FREBJI CELERY STALKS TS 0 23 doz. 5 fo- 21c 2 heads 15c 2bu15 2 b.n. 13e result follows from the changed approach to the problern of con- trol. In the past, the Prices Board went ta the producer of the "select" commodity afler hie had increased his prices. Now each producer of practically any commodity must go to the Board before he increases prices. This also makes for easier and simpler administration. Cooperation Essentiai That a control over ail prices and wages wili be difficult 10 admimister is evident ta every- one. Il can only be done with the umderstanding cooperation o! the people of Canada. Il can only operate if 'the Boards responsible for ils adminstration have a f lex- ible poiicy and a willingness ta adjust each man's problem to the national interest. I arn quite sure we shahl have business of one kind or another severeiy restrict- ed and, if the war procceds long enough, perhaps disconlinued for the duration. On the other hamd, producers of essential goods, either civilian or miiitary, will be given assistance. The Govern- ment has many weapons stili at, its command. We have begun subsidies for essential imports. We have Governmemt corpora- tions engaged in handling imports of essenlial goods and in control- ling, supervising and perhaps en- gaging in the export trade of Canada, 10 the exclusion of al others. I believe we shaîl have more and more rationing ta give 10 the man of modest means his equilable share of diminshed sup- ply of essential civilian goods and ta prevent the man with the means !rom obtaiming more than his share. Lesson of Last War The machinery is complicated, but 1 believe with the support of the Canadian people il can be made ta work, with such adjust- ments as experience will require. The alternative is inflation, a dis- aster of great magnitude. We, in Canada, have had sufficient cx- perience with the maladjustments and the bitterness that arise with inflation not 10 make the greatest effort 10 prevent il. Ail anyone need do is study the work of the Rowell-Sirois Commission 10 un- derstamd how great a strain in- flation placed upon Canadian economy in the last war. Even in twety-five years of peace we haven't removed ail the malad- jusîments created in 1914-18. The effect of the steadily in- creasing concentration upon the war effort is ta increase employ- ment, ta encourage men and wo- men ta enter war industries and ta discontinue work upon the production of civilian goods. Pro- DOMINION FRESH WHOLESOME PEANUT BUoTr2,,,. 25c TOMATOES 2 Tin 23C READY CU M&ACARONI QUAKER XXXX SHORTENING - fl 98-1b. nag I't 4-1b. I- 1-1b. FLOU hnI.kd233.9 JWIcn 7Ccn 9 BLUE ROSE ALE FANCY lICE 2b 1cPEACHES 2-«-- ab 25 DOMINO DOMINION DAKING POWDER BREAD 2-oe 5 Free delivery on orders over $1 .00 in compliance with Government regulations THURSDAY, MARCH 26,1942 PAGE FIVE vided price controls and syslems of rationing are effective, we shaîl have the strange phenome- non of workers with substantiai money incomes and no way of spending them, except upon the purchase o! Government bonds. if this complicated machinery functions, we shaîl avoid infla- tion. But if, for some reason the citizens do not cooperate and it fails, then the Government will accept the evils of inflation ra- ther than risk losing the war. We have not yet used ail the controls Ihat might be used, neither have .we as yet inslituted any complete syslem o! rationing. Inflation is stili, therefore, in the future. Selective Service Near My comments on the subject of war finance and inflation have run 10 too great length, but I have done nothing more than en- deavour to cover some of the highlights. If I have succeeded in sketchiing the tremendous eco- nomic forces proceeding in their own inexorable way, under the domination of the will o! a peo- pie to survive as free people, you -wili realize that a continuously progressive but withal temporary regimentation 10 which we are and will be subject, is the only way of life open to us for the duration of the war and perhaps for some lime afterwards. Whe- ther we like it or not, we must submit 10 a large measure of com- puisory selective service, if we are to win Ihis war. In fact, I would not be surprised 10 open my morning paper any day and learn that a large measure of selective service has been impos- ed upon us, that we, both men and womem, will be hiable to work wherever we can best help the war effort. We are a long way from the complete regimentation of our life if w7e are 10 win this war and survive as a free people. You will recaîl my earlier questions: What substitute for regimentation after the war have we in the field of economics and whither does our present accep- tance of controls lead us? Il can- not be 100 strongiy emphasîzed that we run a risk of losing both our political and economic liber- lies, even though we win the war, if we do not know where we are going nor realize the possible ili consequences of our ready qe- ceptance of controls. Can Freedom Survive? That Ihis is a real danger, no one who reads the press and cur- rent magazines can doubt. The danger comes both from those who have been given control and think they can improve existing (Continued on page 11)