The article which follows below is the major portion of an editorial which appeared in the February 10th, 1960 issue of the The Fundy Fisherman. This paper is noted for its hard-hitting editorials about the government's financial policies.
On page 20 of the copy of Mr. James Coyne's Winnipeg speech, "Living Within Our Means" is the statement "Relative to other countries, the choices that face Canada, the second wealthiest country in the world, should not be too hard". What is Mr. Coyne's definition of "wealthiest"? Is Canada, for example, less wealthy than the United States, but more wealthy than Russia? What yardstick is he using to reach his definition?
And, if Canada is, in fact, the second wealthiest nation in the world, why are Canada's monetary affairs in such deplorable condition so confused that Mr. Coyne now admits publicly we are in a sorry mess. If we are in fact, in the sad financial situation on earth, and we are also, in fact, in the sad financial situation the governor describes, does it not follow that monetary management has been deplorably bad? Does it not follow logically that a change in management may improve the handling of our monetary system and improve our situation to a level in line with our wealth?
Are such questions inappropriate?
If the second wealthiest nation on earth cannot find the money for schools, roads, dams, and the other amenities of living what prospect can there be that the 80-odd less wealthy nations will ever surmount their problems?
Unless, of course, the answer is that the monetary management of the second wealthiest nation on earth is hopelessly inept.
Many foreign countries by Mr. Coyne's rating much less wealthy than Canada are doing splendidly. And their monetary authorities have been looking askance at the methods adopted in Canada.
Is it at all possible that everyone is out of step but the governor of the Bank of Canada? The more one reads the speech of Mr. Coyne the more apparent it becomes that he is either unable to comprehend his task, or is unable to explain himself clearly.
If Canada is, as Mr. Coyne states very definitely the "second wealthiest country in the world" why is it that:
1. The proportion of Canadian taxes going to pay interest on debt is rising at a spectacular rate?
2. The mortgaging of Canadian assets to foreign creditors is soaring ever higher?
3. The foreign trade imbalance of Canada is increasingly adverse.
4. The standard of living of Canadians is dropping and the cost of living is rising?
5. The provinces, crown corporations and municipalities are being warned not to provide the ordinary services of living because we cannot afford them?
6. National growth has slowed to a stagnation rate because the Bank of Canada says we cannot afford the investments necessary for sustained growth?
7. Unemployment is very high and increasingly a drain on the nation because the Bank of Canada claims it is necessary to hold back on investment for growth because it is beyond our capacity to afford?
The list of such questions could be lengthened. Most readers will quickly think of others.
For example, in the Maritimes, we cannot have the Chignecto Canal, the Corridor Road to improve transport to the Montreal market, or the Prince Edward Island-New Brunswick Causeway. We, according to Mr. Coyne the "second wealthiest nation on earth", find it impossible to finance such desirable projects.
We can, however, afford new buildings for the Bank of Canada! In these buildings the monetary managers can, on the one hand, contemplate with satisfaction our position as the "second wealthiest nation on earth" and, on the other, weep with Mr. Coyne over our lack of ability to pay for the ordinary requirements of life.
Why do the people of the "second wealthiest nation on earth" have to tighten their belts, suffer the restrictions of tight money and high interest rates, put up with a fantastic unemployment rate, bend beneath a gigantic adverse foreign trade burden and be ground beneath declining living standards?
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