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t - - EDITORIALS Income Tax lime1 The man who understands econom- tes is away today, and comnian sense suggests that the ignoraniuses on the editorial staff who know nothing about economic subjects should avoid them. says a tirnely editorial ini The Peter- borough Examiner. But when the cat's away, the mice wilI play. We should be happv enough to leave econornics alone if it would extend the same courtesy to us. But it won't. At this time of year economics is inescapable. It is Incarne Tax time, and however much the sun rnay shine and the birds sing in the world of Nature. it is dismal Autumn in thé pocket-book. For reasons which we do flot under- stand, some economists keep Iaoking backward toward 1939. as though that were a Golden Age, when everything Was at precisely the right price. 0f course, those of us who were born be- fore 1939 recail that our eiders used to look back with nostalgia toward the period before the First World War, when it seems that money grew on trees, mnd a workman who was getting $10 a week could afford to have a velvet col- lar on his overcoat. But for us,. in 1960. it appears that 1939 w'as a good time indeed. If vau had an incarne of M.00 ini 1939. vou paid incarne tax of $96 Economists tell us that in order to have an équivalent buying power today, you wou]d need an incarne of $11,576. upon which vour Incarne Tax would be $1,759 It is flot necessary ta be an economist to see that while the incarne has somewhat more than doubled, the Incarne Tax has been multiplied by 18 and a littie bit more. It is a great mistake., however, to build an edifice of grievance upon such an isolated piece of information. Noth- ing wiIl take us back ta the Canada of 1939. and the high taxes we pay are spent on things which we have demand- ed that our Government provide for us Present high taxes are flot the work of the present Conservative Governrnent, the path was chosen which led ta our present taxes when the Liberals were in power. It is possible ta show that the present Governrnent is extravagant, but only econarnies of a sort which no gav- ernrnent wauld dream of making could reduce aur taxes ta 1939 levels at pres- ent, or for many years in what appears ta be our future. We have asked f( welfare state ini Canada, and aur vari goverrnments are in the process ofj ing it te us. Only the most n citizens can ever have imagined tha wvouid net cost huge snms cf mone, What is a welfare state? It is in which every citizen enjoys what are pleased ta cali minimum pratecl against such misfortunes as unempl ment, sickness, poverty in old age. the effects cf paverty in childhc These are troubles which, we are agreed, should be spared the whoke the population. But we must recogi that. left ta their own devices, there hundreds cf thousands cf people 'm cauld net, or would flot. provide agai these things for theniselvýes. In addit ta these social benefits for everybo we also provide protection against nr fortunes which happen ini certain dustries and classes cf work. We determined that nobody shauld suff if it can be helped. We have registei aur determination at the poils. Su determination is praiseworthy. but, must net whimper when the bill is p- sented-as it is. every April. The Welf are state is, for suchc inocracies as ours, the trend of t times., There is no political party whi opposes the concept, and if there we: it would have littie support. Blani protection means high taxes for ever body, and if anyone in a low incai croup thinks that he is taxed tac hea ily for his means, and that the higi- incarne groups should bear a heavi burden, let him spend five minutes e ainining the tax tables; the taxes an t] larger incarnes are not a simple pr portianal increase abave his own, b are multiples cf bis own; the range from 13.5 per cent on the lowest incor te 79 per cent an the highest. Noboc is getting a special deal. If we do flot like it, there is nothir ta be done, and the mai arity cf usc like it. Does anybady seî'iously wish go back ta the Canada of 1939, even sul posing that such a thing -were possiblf Life must be lived forward, even thoug it sametirnes seerns that it caît only1 understood backwvard, and we are livir aur national existence in a world frarn work which Canada alane cannot resis 1 It is customary for representatives of farmers' organizatians ta peint ta the high prices cf what the farmer buys, tornpared with what he gets for what bie bas ta seil. They frequently pick out the nmore successful retailing companies and show, te their awn satisfactian, that the profits of such firms, express- ed as a percentage cf capital invested ln thern, are abnarmally high. What they seldom seem to consider is that when the profits are expressed as a p ercentage of the grass value cf sales, ~ey may be abnormally low, declares 'he Printed Word. Suppose a company averages a profit cf two per cent on its sales dollar, which is around the figure that the large food chains get. If, by following the inaxim cf "small profits, quick returns," It manages te turn over its capital inonthly, the profit in relation te capital will be 24 per cent, which most people would consider a satisfactory retumn on r From Ottawa cornes word that cab- Inet circles, with an eyt on a probable general election i 1961 or '62 are eye- ing with faveur plans and proposais ta expand considerably this country's system cf old-age security benefits, states the Fart Erie Letter-Review. Just what form the expanded benefits under cansideration would take remain a mnystery. There is some talk cf adopt- Ing a costly contributory employer-em- ployet scheme similar ta the old-age security programme of the United States. It is suggested, toe, that Canada mnight follow the United Kingdom system, and adopt a graduated benefit system based an employer-employeet contributions, to be super-imposed on tht existing fiat-rate system. Net a hint is te be heard as te the cast cf expanding the old-age security acheme. It is certain, hawever, that it will be substantial and constitute a new and onerous tax burden which will add seriously te production casts. Before the Government plunges in the investment. It is a method cf earn ing net open to the farmer, whose u.9 of bis capital is governed by the seamons and his envy is understandable. Even two companies operating ei the same margin cf profit and witl equal capital may vary in their percent ages cf profit ini relation to investment One may have a million dollars of il capital tied up in land and buildings The other may sell its buildings to- real estate firm for $1,000,000 and leasE them back at an annual rentai cf -.U per cent, or $100,000. It bas thus con. verted fixed capital into working capital and if it can turn over its new working capital at the same rate as the old, il will increase its return on total capital by whatever the new working capital earns above the rent paid. It seerns clear that; thte nly fair way ta compaire profit is on the basis o: earnings on the sales dollar. with election promises to expand old- age security benefits, it would be well advised ta ponder the political canse- quences, as well as the ecanomic conse- quences, cf the increased tax burden that would be involved. After all, it is upon thase who are working that the burden cf expanding the scope cf aid- age security wili fail. Nor should it be fargotten that every increase in taxation adds ta the cost cf doing business and aggravates further the problem cf keeping Canadian goods eompetitive in world markets. Other countries are not likely te willingiy assume, i terms cf higher prices for Canadian goads, the cost cf an expanded aid-age security program, especially when other and cheaper sources cf suppiy are readily availabie. Capital Hill Capsules Prime Minister Diefenbaker in a 40-minute speech i the Hanse recently reviewed what bis Government has dont for the western farmer by way cf softenig bis "Na" ta their request fer deficiency payments on grain. Tht question cf deficiency pay- mnents for wheat, cats and barley, or a suitable alternative bas reportediy cansed lengthy discussions within the cabinet. Western members sought (un- successfully te date) ta, impress upon eastern members (particularly Mr. Fleming) the need for deing something for the farmers. Having rejected de- fîciency payment3, western farmers are waiting te hear what alternative plan' if any, Mr. Diefenbaker bas ta propose. Tht private bill to abolish capital punishment has dropped out cf sight at this session. Debate on the measure was adjourned and with Goverrnment business dragging and the majority cf the public apparentiy unfavourable, there appeared to be no clear cut indica- tion as ta when debate would be resum- ed. Tht Government is anxicus ta get on with tht wark before the session, se it may not corne up agai until the next sittig of the lieuse. The long herald- ed Bill of Rights, which has recentiy caused sucb an uproar in Quebec may ahare the sane fat&. giv- Sanie people think we Can. ions adasar akngi raiin ýaive They are quite wrang. W at it have traditions we haven't I Ieven told anyane. Tis le- ýY. gend, reprinted by requesi, one tells'af the origin of one of we them. bion Once upon a tume, twao o loy- _ three million years ago, a Can- and adian couple lived in a cave ood. with their three small children. When the winter hiad begun, ail they'd had eight srnall child- cof ren, but they'd had ta keep the arze somehow, and the wolf was are very partial ta small children. inst Now, it was spring and tionthings were tough. The nîam- )dy, math they'd put in the deep freeze at the back af the cave nUS- was gnawed ta tusks and tail, in- he Mother had begun ta eye are 8< ~ ...~the three snîall children, gaunt as they were, in a rather chili- red ing manner. And every tume red the Father looked at the Mo- uchi ther, saliva leaked out the we ' corners of bis moutit She had ,.e than the three small children. SAs for the three small hl de- ,. " N dren, tlxey took a snap at. the the calves of tlieir parents' [ch verytime they crale past ýre, them. And the wolf hiad long1 since forsaken the front door. - -et He knew well that if lie whin-1 ne clubbed and end up as guest1 -Lalo of honor at, a wolf dinner. av- ler It was a tense situation and ier u just to 111-1 it unbearable. ?X_ IL the IMother _started agîtati g lie about the conditioti of the; cave. She wazi-îed ail the boues ro- picked up and dumiped outside, )utT1fl1itP re the skins on the floor sh&ken' is out, and the mammoth's skel- eton dragged outsîdc, 50 she ine could get into the corners and' f)I dean teý. UUILLIIILL 'sfC ol*i* nMaintaining an iran self- I d contrai, the Father went tai da work. He knew that if ie bit' ta My wift and I gratefully gadget started off a cliain re- arc which moved a "1doliy"l, [_acknowledge the many beau- action of memories of other shaped like a three legged milk structions than ar astronau"' P tiful card.s and messages of niahines used, in the past, ar- stool, and guaranteed to tear would require ta ta-ke~ a Sixice ,? congratulations on our fortieth qund the Youngman home, more clothes than a six months ship ta the inoon. By the time gh wedding anniversary. Thie ev- My bride started off with old pup. Next on the list was a we got ta the end o-' Ibe Žuc- be ent is of particular significance the aid reliables- boiler, tub, "1900" washer, in which a per- ond tub fuli, we were s.i' outhFla because the laws of nature and scrub board. The clothes forated board kept the clothes at each ather likýe a couplIe oi ig will hardly permit us to share vwere "boiled", then fished out in place while the tub swung bar room toughs. .F4ilalN.v the ie- a second forty years in double of the boiler with a three foot ini a half circle, and back. washin.g was finislied, every- st. harness. Sa we will try and en- length of braom handie, into Then came the "Acme", witli thing wiped spic and spDan,: joy whatever crumbs of hap- the tub, where they were rub- wooden ri'bs in the bottom of ready to le put away, and piness fate tosses our way dur- bed Up and down the scrub- a half moon shaped tub;, the Butch and me purring like a ing the balance of our sojourn board, which made them a clothes were put in then a couple of contented kittýens, in rhis vale of tears darn sight thijiner than ail the similarly shaped rocker thing when I spoiled everything b Last wee- n. ý o or scribe meni- wearing. placed on the top of the cloth- inadvertantly lifting the wrmng-, n-tioned thie faiiy presenting us WVe fell heir ta a nearly worn es, ta be manipulated back and er off it's base, and not being' with our first electric washing out wasb'iuz irQchine, that con- fo*th in the hope that the able to fit it back, properly. Se machine, which we have ai- sisted of &a ? om=:4 Wood'ef squeezing and rubbing action Wlien Butch saw her preciaus [S, ready used twice. and like tub en four legs, and you wauld do a good job. Because washer in two pieces, we went very much. Use of the new swung a waaden handje in an ail these machines were made part te shouting stage into of wo>od', they didn't last too the preliminaries af a divorce )n lonîg and had to be replaced. action. Then, everything click- bh.~ Well, finally, we acquired one ed into place,an ewr t- t e 4 0Mf those Renfrew, galvanized back on speaking term.s once In t e D *jobs, shaped like a half moon, more. We often bear of sanie- and employing the vacuum' one selling a million copies of and priîîciple. it was swun*g by a recorded song. f that epi- and arnstrong" power in a bck soçie of ours had been put on' a - and forth ma nner. This wvas a tape, and titled "Happy, tho- e u istant i-"ast flan~ittJ(, machine. and -%ve1e ugh m'arried". it would have ;e D istantwxiîc't stopitlcîa ' lio We couid have' 10 froni leakin~g. ive repiaced the saved a lot of argument if the' I - ~ The 88103fl155 WAIO' i tub wýith a nev one. About six Wreîhdise eegn 1, îîonths aiter procuring the new eer papers for washing mach- ýg49 YEARS AGO 25 VEARS AGO acatoj elt1iitvas e o u-Kingston. aniatiohjwntitlrms hels ieIwui ffMay 4, 1911) (May 2, 1935) <'hase an electric washer right il hs ano n m ev .F Eg)Amuîg awa,, m wife vetoed the idea, Erehs . lackun lf s atonad f. re.E.F Trini-xti-unitedarguing that the Renfrew wuas Young people today have a Ernet Backurn eftTue- Pator of riniy Ui'-d igreater chanuce of being saved day morning for the West, the Church, became thîe l2th Pre- ilt tO fir Lîîch an she was-'roni canceler t eratrions former gaing ta Saskatoon, sideîît af Bownîanville Rotary n'tgnl ahane. ioAs , benthn aderereerto. rand the latter ta Edmonton, Club. er-hat eeirtd tb Not anly have treatment me- Alta Legon ranc ista son-came my chore ta swing the thods iniproved, but the whole Alta. Leuion Brancil is to spon- handie of th ahran-tittiud to rstedsae Mr. Elias Greenaway bas sor Cricket in Bowmanville. the tail ohe wsher an tW s atttu etods hies greatiy improved the appear- Dr. W. H. Birks, Medical Although wthe mmer. haschaged ance of his property, corner Officer af Health for Bow- the new electric jigger twice, About 44,000 new cases af Clîurch and Scugog Sts. He is manvilie, was elected Char- hrldsi os' nedt acrwl edansdi now uilingan dditon o tr Pesient f te nwlyor.switch back ta, the old bond Canada this year. This is bas- the bouse. ganized Lions Club. machine. 1 just wish a tape- ed an an incidence rate of ap- Miss Mabel Brock, Toronto, Congratulations ta Harvey recorder hiad been handy wben proximately 250 new cases a formerly of this town, was one King, son of Mrs. John Faulk- we decided ta try out the new year for every 100,000 popu- of the successful candidates in ner, who was awarded a silver miachine. We were bath guilty lation. Canadian Cancer Sa- the recent Normal School Ex- mnedai for bis Seversky model of giving ech other more in--ciety. amnmations. airpiane at the Hobby Show at Mr. and _Mrs. James Jebson' Central Y.M.C.A. iTaranto 9and. sons Harold and Cyril and last week.' adaughter Mary, and bis sis- Capt and Mrs. C.W.E. Meath ter, Mrs. F. Wilkinson, ya. have returned fromi a motor lian Grange, Pocklington, trip ta New York, returning Yol-sirEgadarvdvia We welcomeLo ok what I get for s, i their new farm home pu1rcha- Mr. andMrs. F.-L. Rabbins weeks' absence with a heavy den vusitedrelati-veês in«Braânt- '" " cold. ford. Maple Grove: Miss Gladys Blackstock: Congratulations $ Munday is home again after ta Mr. and Mrs. Gordon ", ~ " some montbs witb ber broth- Stronj; (nee Ema Bruce) on ers in the West. the birth of a son, Saturday,i Tyrone: Messrs. A. W. Clem- April 27th. ens, Luther Haoper and W. H. Kendal: Mr. George Clark! , Moore delivered horses in while motoring from Toronto: Port Perry, Friday, sold ta early Saturday morning bad' Mr. Pierson, hanse buyer. his car burnt at Crooked Creek Enfield: Fali wheat and ai- Corner. sike claver bave neariy aIl Newcastle: Mr. Cliff Brown, been ploughed up tbrough this Brown's, and Mr. Chas. Gib- district, son, 3rd Line, are getting Sport: The following oiii- ready for barn raisings. ~>' ' cers were elected at the base- Starkville: Mr. Ross Hal- bail meeting: Hon. Pres., J. lowell has gene ta Windsor te Moriaity; Pres., Chas. H. An- get a new car. derson. lst Vice, D. C. Betts; Haydon: Rev, Harold Staln- 2nd Vice, .XA McClellan; tan and sons, Exeter, visited Sec'y-Treas., B. A. Sisier; at Mr. Wm. Trewin's. Manager, F. K. Marris; Man- agmng Com., W. Kavanagh, J. Notbing se much prevents Williams, A. Mingeaud, W. J. aur being natural as the de -____________________________ Bagneli; Official Scorer, L. sifin ef appearing no..ai BottreIl. Bohufoucuk. Unequal Comparisons OId - Age Security Benefits Entablinhed 1854 with which l icoporatod The. Iowncivli. News l'h. Newcaatle lnd.poud.at amd The Ozone Nam 1061b Yomr of Continuoug Serv'ice te the Town of Bowmcnviie Caïd Durham County - q WUBSCRIPTION RATES $4.00 a Yomr, atrlctly in advanc. 35.00 a Yomini th* United Statu Authoela.d masS.od Oam Nali Poet Oo Deptment Ofttuw Pabliah.d by M ~ JAMSPUDLISINGCOMPANT L1?UTE lowmumvil.Ontaio IOHN M. lMES EbiTS