What's behind drop
in Canadian dollar?

Financial experts seem to be divided as to the reasons

‘why the Canadian dollar has dropped down almost to par
with the United States dollar.

Many say it is the result of
the action by Donald Fleming
in his supplementary budget in
withdrawing certain conces-
sions to foreign investors. But
Ottawa correspondents report
that the government itself is
somewhat surprised at the sud-
den drop in the dollar.

Others suggest that the drop
is due to what they consider to
be temporary factors — a big
year-end outflow of money to
the United States in the form
of dividends and pYofits.

REFLECTION OF CONTROL

agreement as to the basic rea-
sons why the Canadian dollar
has for several years been
Worth more than the U.S. dol-
lar. It is because of the large
flow of United States capital
into this country. This U.S.
money has had to bé converted
into Canadian dollars, and as
a result the price of the Cana-
dian dollar had been bid’ up.
Far from being a sign that our
economy is in a healthy state,
the premium on the Canadian
dollar has been one of the
Symptoms of the growing con-
trol being exerted over our
economy by the United States.

But the drop in the Cana-
dian dollar now does not mean
that this problem is lessening.
More and more U.S. control isi
being extended in Canada, by
the capital which is being
formed by U.S. investors in
this country out of the exploit-
ation of Canadian workers.
This process does not show up
in the foreign exchange pic-
ture.

If the Canadian dollar falls'

—

|

to par or below the U.S. dol-
lar it will have these results:

Exporters will benefit. The
foreign exporters exchange
they get in payment for their
goods will be worth more
when converted into Canadian
currency.

A good deal of this benefit
will actually go to the U.S.
owned companies . which’ ex-
port raw materials south of
the border. But all Canadian
exporters will be to one degree
or another in a more favorable

| position, This includes, for ex-
In any case, there is no ode ample, our wheat producers,

although the actual increases
in return as a result of these
shifts in exchange rates will do
very little to oOvereome the
very unfavorable cost-price re-
lationship undér which they
are operating.

CONSUMER WILL PAY

Importers stand to lose as a
result of the drop in the Cana-
dian dollars, and will strive to
pass on_ these losses to the
consumer in the form of high-
er prices. Thus we .can’ expect
new pressures on the cost of
living index, already at record
levels.

It will cost municipalities
and provinces moré to meet
intérest: and principal pay-
ments on bonds they have sold
in the -New York market.
Again, there will be pressures
tO raise taxes even higher.

We can safely say that the
dollar miay go tip or down, but
there will be no solution to our
fundaménial econdOémic prob-
lemis as long as our economy
is dominated by the United
States as it is today.

Photo shows a demonstration in London’s Hyde Park on |}
Dee. 11 to protest intervention in the Congo and to demand |

immediate release of Premier Lumumba, still held prisoner

by the Mobutu pro-U.S. gang.

Laos, Cuba Crisis

An urgent ‘call to “all pe

to make their voices known

statement. issued on Jan.
nora’ of the Communit

Mona Morgan hits
Alsbury tax. plan

“Mayor Alsbury’s

what was expected of the new-
ly elected NPA mayor,” said

on the
speech.
“His method is not new,

mayor’s
it

not be effective,’ she said.

amount spent equals the
come. But imagine any bread-
winner willingly letting

aH the income he had.

ling to balance a budget in-
stead of estimating what is re-
quired to run the city’s busi-
néss in the interests of its
‘people and then finding the
money to do it.

“Money could be found by
taxing business and industry
on the same basis aS the home-
owner; and by Securing ade-
quate grants from _ provincial
and federal governments.

“Every candidate in the re-
eent civic election cited the
need for increased grants from
senior governmenis.to avert a
financial crisis. People are
eager to see some of the money
now wasted on armaments
used to build the much need-
ed schools, hospitals and hous-
ing which would ease the tax
burden and also provide em-
ployment.

_ “Tt is obvious the people of
Vancouver will’ have to be
alert to such danger signs as
the determination of council to
sell the airport, to again at-

on False Creek FEES to cut
wages and services.’

‘revolu-
tionary’ method of curbing the

increasing city budget is about) ; :
: 8 y & P ©) of a right-wing government |}

Mona Morgan in commenting |
inaugural |
is not revolutionary and it will
“He likened city budgeting to}
that of the home where the|
in-
family suffer because $50 was}

“Tt. is the old story of jugg-

tempt to place the works yard |

ace-loving Canadians to voice

their opposition to imperialist intrigues in Laos and Cuba,
to the government of Canada |
by wires, resolutions and letters, and to be vigilant in|
their guardianship of world peace”

is contained
3 by
y Party.

| the statement:
The New Year,

; OUS Situations, Lads and Cuba.
In Laos, United States inter-
vention and the establishment
with the help of U.S. funds
and arms, has
)pcountry into a civil war.
US.
this conflict through its mili-
tary machine; the South East
Asia Treaty
(SEATO).
Canada, a

member

| to assist the people of Laos to

his| peacefully establish their in- |

dependent government, refus-
les to take part in -continuéd

so.bows to U.S. policy.-
TELEGRAM TO P.M.

The Communist Party

Prime Minister Diefénbaker

and Hazen Argue: -

ian government to fulfill
responsibilities as a
of the International Supervis-
ory Commission has contribut-
ed to the «present crisis in
Laos. This: pérmitted the Un-
ited States; in defiance of the
1954 . agreement
Laos, and against the’ wishes

with arms: and: money a right-

Soviet Pianist
Here January 23

The Soviet Union’s brilli-
ant youhg pianist, Dmitri
Bashkirov, will perform at
Vancouver’s Queen = Eliza-
beth Theatre, Mon., January
23 at 8:30. Tickets are avail-
able at Kelly’s at Seymour
and Georgia Sis.

of thé Laotian people, to back Pt

jand all

ii gee
the national- executive!

Following is the full-text of |

which Can |
adians hope will bring peace, |
| has opened with two danger- |

plunged the |
The |
is planning to extend |

Organization |

of the |
| commission sét up in Geneva |

work of the commission and }

has |
sent the following telegram to |

and. a copy to Lester Pearson |
“The failure of the Canad- |

its |
member |

Stop U.S. double war threat
urges Communist Party call

wing puppet government
which has plunged the tetin-
try into civil war.

The USA must not be per-

mitted to extend interven-
thereby creating another
Korea and endangermg werld
The Communist Party
calls on your government-to
; take steps to call together at
once the International €om-
| mission and restore and guar-
antee the peace, independence
and neutrality of Laos.
“India and - Peland,; the
| Other members of the comfiis-
sion, are ready to meet. €an-
ada has been Reker out. It
is your duty, Mr. Prime Min-
ister, to change this a inte
one of taking the initiative in
calling the commission togeth-
er and so contributing to the
democratic settlement ef the
| crisis in Laos.”
| THREAT TO CUBA
Across the world, and near
|Our country, the Cuban. peo-
| ple, while they are celebrat-
ing the second anniversary of
| their democratic nationak rev-
olution, are confronted with
la new crisis: Cuba has called
; for a special meeting 6f the
‘ Security Council to hear
; denee of new plans fer imper-

| tion,

| peace.

| ialast aggression.

| The Communist Party of
| Canada has received from the
Popular Socialist Party of
Cuba. a telegram which in-
}forms us “of an imperiekst
; plan to attack. our country on
|the pretext of non-existent
|launching sites’ and appéal-

fing to the Communists. of

| Canada to arouse the people of

es. & ROUT
neutralizing |

country against sueh a
plot.

The Communist Pariy calls
its members, supperiers,

peace-loving Canad-

jians to voice their. opposition

| to
)

imperialist intrigues in

| Laos and Cuba, to make tmeir

| voice known

to the govern-

| ment of Canada by wires, res-
'olutions and letters, and io be
| vigilant in their guardianship
| of worid peace.

}
la year of war;

The New Year must not be
it musi be a
| year of the strengthening of
fi peacel-

BANQUET—7 p.m.

Tickets Shier at People’s
307 W. Pender.or 503 Ford Bidg.

im honor of

TIM BUCK

ENTERTAINMENT -

EVERYONE WELCOME.

- 70TH BIRTHDAY CELEBRATION

National: Leader, Gommuinist Party of Canada
Russian People’s Home: -
SATURDAY, JAN UARY 14

600 Campbell Ave.

Co- Op Bookstoré

REFRESHMENTS

January: 13, 1961—PACIFIC TRIBUNE—Page 3