Civic financing costs
mounting drastically

There is an old adage that
you never look a gift horse
in the mouth. Unfortunately,
as municipalities across Cana-
da are beginning to discover

the adage doesn’t always hold *

true.

This fact was recently un-
derlined by the Diefenbaker
government’s austerity prs-
gram and devaluation of the
Canadian dollar.

The “gift horse” in the case

is easy money raised by, the
municipalities in the United
States during the 1950’s. At-
tracted by interest rates a
point or so cheaper in the
U.S. than in Canada, the
municipalities borrowed hun-
dreds of millions of dollars on
the U.S. market.
’ The more the results of
the Tory austerity program
make themselves felt, how-
ever, the more “gift horse”
begins to look like a Trojan
Horse.

While the Trojan Horse of
Greek mythology concealed
within it Spartans who laid
waste with fire and sword
the city of Troy, the 20th
century Trojan horse conceals
New York bankers armed
with Canadian bond pur-
chases. Their growing bond
purchases give them a more
and more decisive say about
every aspect of life in these
Canadian municplities.

Their decision to buy or not
to buy the debentures of the
municipalities, for example,
can be quite influential in
determining the welfare poli-

Enjoy good home-cooked
meals at :
JENNIE’S.
COFFEE SHOP

Ford Bldg.
East Hastings St.

PENDER

LUGGAGE

541 West Pender St.
MU 2-1017

We buy and sell
Used Furniture
Sporting Goeds
We are reasonable.

We are at
573 E. HASTINGS ST.

Beaver Transfer
MU 38-3942 —

PRIOR GARAGE
& SERVICE

2i2 Paiar 3)
MU 3 2926
COMPLETE. AUTO
SERVICE & REPAIRS

Auto Body Work

We

Proprietor

ROOFING

& SHEET METAL

REPAIRS
Reasonable

Gutters and Downpipes
Duroid, Tar and Gravel

NICK BITZ BR 17-6722

‘

cies and civic winter-works
projects of the given munici-
palities.

(An example of this type of
influence was the wide-spread
speculation in various quar:
ters in Canada that the feder-
al government’s recent loan
of more than $1 billion in the
U.S. to bolster foreign re-
serves, could mean a veto by

U:S. bankers on public works
programs in Canada. There is
no reason to doubt that the
-same thing holds true for the

municipailties).
Devaluation of the Cana

dian dollar has actually in-
creased the grip of U.S. bond-

holders.
During the 1950’s for each
U.S. dollar borrowed _ the

Canadian borrower got

as

little as 94 cents in his own
currency because of the pre-

mium on the Canadian dol-
lar.

Today, however, the Cana-
dian borrower has to pay
interest and repay the prin-
cipal in U.S. dollars which
are worth $1.08 or more. in
Canadian. funds.

What this means to the
average taxpayer can be
measured by taking one city
as an example — Metropoli-
tan Toronto.

At the beginning of 1962,
the total Metro debt to U.S.
bondholders was some $267
million. Since these are main-
ly long-term debentures, it
is fairly safe to assume that
the bulk of this amount was
borrowed during the 1950’s.
(The last bond sale by Metro
in the U.S. was in 1960).

At 95 cents Canadian on the
U.S. dollar, the actual Cana-
dian currency received on
this amount during the 1950’s
would be just under $251 mil-
lion.

Today’s debt of $267 U.S.
would measure more than
$288 million in Canadian cur-
rency.

On this basis, the cost of
devaluation to the citizens of
Metro Toronto alone can be
put at some $37 million.

And this isn’t the whole

‘Nationalize electricity’
says united Quebec labor

The organized workers of

Quebec, 345,000 strong

>

reached a new level of unity
when on Aug. 31 the presi-
dents of both the Quebec Fe-

deration of Labor and
Confederation of

the
National

Farewell Party
Send Off Marchers to
Berlin
‘The Milestones’ and other
folk singing groups
Good Food—Refreshments:
Dancing
DREAMLAND HALL
Church St.
Opp. -Eatons in New
Westminster
Admission $1.00

TED HARRIS

757 East Hastings Si
Vancouver 4, B.C.
Painters’ and Paperhangers
Supplies
» Sunworthy Wallpaper
Reg. 45c - Now 19c a roll

‘Everything in Flowers’

FROM
EARL SYKES

56 E. Hastings MU 1-3855
Vancouver, B.C.

OVALTINE
CAFE

251 EAST HASTINGS
Vancouver, B.C. ~

~ QUALITY SERVICE

‘

Gy) A. SMITH

J exper Watch &
Jewelery Repairs

a" e Special Discount to
Tribune Readers

1179 Denman St.

MU 2-1948 or MU 5-8969

Trade Unions sent Premier
Lesage a telegram declaring
their organizations’ united
support for the nationaliza-
tion of electricity and their
firm opposition to the Que-
bec provincial chamber of
commerce proposal for a so-
called impartial commission
to study the problem.

The telegram stated: “The
problem of nationalization
cannot be the object of an in-
quiry. It is a matter of gen-
eral policy falling within the
excusive jurisdiction of the
government. We demand a
definite statement with the
briefest delay.”

Burnaby Council chamber was packed a week last Me
when the shops-closing by-law which would lift all
tions on store hours was discussed. The chamber, ;
above, was packed by citizens and shopkeepers who oF
wide open store hours. Council tabled decision until 2

meeting.

as shi

story, since corresponding
changes have also taken place
on principal.

Two years ago, the federal
government introduced g 15
percent tax on interest paid
on foreign borrowings. This
has to some extent reduced
the rate of borrowing in the
U.S. by Canadian municipali
ties.

With Canadian interest
rates up as a result of de-
valuation, however, the muni-
cipalities are once again eye
ing the U.S. market.

— CHINAWARE
— LINENS

Open 9 -5:30 Daily
9-9:00 Friday

could have an immediate |
fect, is the establibsment

the federal government ®
municival development
of $500 million to $1
Municipalities could
the money the need

development from

fund, at lower interest
than those obtainabl
U.S. or from private 50"
in Canada.

fund has been advocated
thie Communist Party:

“LOOKING FOR UNUSUAL BUYS ”
AT POPULAR PRICES?

We have an interesting choice of goods from)
U.S.S.R., Czechoslovakia, China and Poland.

TEA AND CONFECTIONARY ~
FROM U.S.S.R. - ;

— EMBROIDERED GOODS
— SOVIET WRIST WATCHES
— CERAMIC FIGURINES
We specialize in arranging tourist visits
to the Soviet Union ~

UKRAINSKA KNYHA
2643 East ek ity ae 3-8642

A more decisve steP. whi

b

such |
rat

e in

Establishment of such

th

Vancouver 6, Be

Closed Wednes™

Classified Advertisin “J

: NOTICES
DEADLINE FOR COMING
EVENTS COLUMN — All
copy must be in the Pacific,
Tribune office no later than’
Monday, 12 noon.

THE PACIFIC TRIBUNE

OFFICE WILL REMAIN
OPEN ON SATURDAYS
FROM 10 A.M. to 2 P.M.
until further notice.
COMING EVENTS

Sept. 15 — :
SMORGASBORD SUPPER
& DANCE will be held at
HADVICK’S, 13707 - 105
Ave., North Surrey, SAT.
SEPT. 15, from 8 p.m. to ?
Dancing, refreshments,
good food. Admission $1.
Draw for Desk, which was
to be held at Labor Picnic
will also be held. Surrey
Social Committee. Every-
one welcome.

Come to the HARVEST SUP-
PER at SYLVIA & DONS’
SUNDAY, SEPT. 16 from
4:30 to 8 p.m. Feast on the
fruits of the fields and hear
the latest on CUBA for a
recent visitor. Follow the
arrows from IOCO. Adults
$1.00, children 50c. Re-
freshments.

SEPT. 29 — 13th ANNIVER-
SARY CELEBRATIONS of
the PEOPLE’S REPUBLIC
OF CHINA, SAT., SEPT.
29th. 10 course Chinese
Banquet at Marco Polo, 90
E. Pender St. at 6 p.m.
Tickets $3.50 per person
available at People’s Co-op
Bookstore, 307 W. Pender
Sit) iGHENCE SE PTEM
SHOWING — SUN. SEPT.
30 at 1 p.m. Ukrainian Hall
805 East Pender St. Every-
one welcome.

BUSINESS PERSONALS

: REGENT TAILORS LTD. —

_Custom. Tailors & Ready-
to-wear. For personal ser-;
vice see Henry Rankin at
324 W. Hastings St., Van-
_couver 3. MU 1-8456.

WEST END RADIO—Special-
izing in TV Repairs. Latest
precision equipment used.
(Formerly OK Radio Ser-
vice). Now at 1721 Robson
-St. MU 3-2618.

SASAMAT SHOES & RE-
PAIRS — 4463 West 10th
Ave. Phone CA 4-1017.

34 TRANSFER — 1424 Com-
mercial Drive. Call Nick
EEN ben hale ly]s

,

Sept. 14, 1962—PACIFIC TRIBUNE

SPECTACULAR VU

spacious suites (a
or unfurnished). 240
ity (cor. of Nanaim?
AL 4-1519. eae
FOR RENT — 3 1007),
contained suite. Gal
and fridge. Heat au 000
water. Private a nis
$60. Adults only. © ¢y
5-2102 mornings 4
ings. 1837 Francis Wo
' HALLS FOR
CLINTON HALL,

Pender. Available ee
quets, weddings, 68"

etc. Phone AL 33°

RUSSIAN PEOPLES

— Available for ™,
weddings & band¥
reasonable ‘4 49

Campbell Ave. -
PENDER |

AUDITORIUM

13

Large & Small
for Ren