April 6, 1937

SEED GRAIN

GUARANTEE OF LOANS FOR PURCHASE OF SEED- REPRESENTATION OF SASKATCHEWAN FARMERS


On the orders of the day:


?

Thomas Miller Bell

Mr. M. J. COLD WELL (Rosetown-Biggar):

I wish to direct the attention of the house to a telegram, typical of several, received from Mr. H. F. Hughes, secretary of the Farmers' Protective Association of Shaunavon. The message reads:

Officially informed seeding requirements cut nearly in half. Large representation farmers' meeting yesterday passed unanimous resolution that farmers of district refuse to seed an acre of crop until government agrees to give sufficient to every farmer to put in his crop.

Topic:   SEED GRAIN
Subtopic:   GUARANTEE OF LOANS FOR PURCHASE OF SEED- REPRESENTATION OF SASKATCHEWAN FARMERS
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?

Some hon. MEMBERS:

Order.

Topic:   SEED GRAIN
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LIB

Walter Edward Foster (Speaker of the Senate)

Liberal

Mr. SPEAKER:

I think the hon. gentleman should present his question immediately, without reading the telegram.

Topic:   SEED GRAIN
Subtopic:   GUARANTEE OF LOANS FOR PURCHASE OF SEED- REPRESENTATION OF SASKATCHEWAN FARMERS
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?

Thomas Miller Bell

Mr. COLD WELL:

I wanted to ask if the government would reconsider the matter.

Topic:   SEED GRAIN
Subtopic:   GUARANTEE OF LOANS FOR PURCHASE OF SEED- REPRESENTATION OF SASKATCHEWAN FARMERS
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LIB

William Lyon Mackenzie King (Prime Minister; Secretary of State for External Affairs; President of the Privy Council)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

We shall consider the hon. gentleman's question.

Topic:   SEED GRAIN
Subtopic:   GUARANTEE OF LOANS FOR PURCHASE OF SEED- REPRESENTATION OF SASKATCHEWAN FARMERS
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UNEMPLOYMENT

PROVISION FOR ALLEVIATION OF UNEMPLOYMENT AND AGRICULTURAL DISTRESS


The house resumed from Wednesday, March 31, consideration in committee of Bill No. 80, to assist in the alleviation of unemployment and agricultural distress-Mr. Rogers-Mr. Sanderson in the chair. On section 1-Short title. Mr. JEAN-FRANQOIS POULIOT (Temis-couata): Mr. Chairman, I should like to give the committee some information based on returns that I have received with regard to an investigation into the situation of settlers in some new parishes of Temiscouata county. I desire to make but very few comments in this connection, but it is important that hon. members should be informed as to the distress of these settlers, because the government is paying a share of the cost of direct relief, which is not given to all who need it and which many times is granted only for political considerations. At St. Jean de la Lande, there is Madame Mastai Allaire, who has four children, three of whom are boys, the oldest thirty-two and the youngest thirteen. She has no more construction timber on her lot, and only a little fuel wood. She had eighteen animals, but she was obliged to sell them because she had no money and no cedar on her lot to build fences. She has one cow and no horse, no pigs, and no sheep, because they were sold. She has eight hens. I shall not read all her remarks but she does state that in that community one woman died of hunger and cold. She was sick and had to sleep on boards placed on nail kegs, because she had no bed. There is Louis Bard of St. Jean de la Lande. He has nine children, five of whom are boys. The oldest is fifty-one and the youngest twenty-nine. He is an old gentleman. He has no construction timber, no fuel wood and no animals. There is Auguste Belanger, who has six children, three of whom are boys. The eldest is nineteen and the youngest eight. He has no construction timber, and only ten acres of fuel wood. He has two animals, one cow and one horse, and eight hens. Usually he receives direct relief, but has not had it for three months. Then, there is Cleophas Balduc of Lac Thibeault, who has two children, both of whom are boys. The older is one and a half years and the younger eight months. He has two thousand feet of construction timber and seven acres of fuel wood. He has two animals, one cow, one horse and eleven hens. He received direct relief. Then there is Frank Boutin, a veteran of the great war. He has three children, two of whom are boys aged sixteen and fourteen. He has no construction timber and forty acres of fuel wood. He has two animals, a cow and a horse, and ten hens. He does not receive direct relief. There is Alexandre Caron, of St. Jean de la Lande. He has four children, two of whom are boys. The older is aged ten and the younger two. He has no construction timber and twenty cords of fuel wood. He has one cow and six hens. He has neither ox nor horse to work his lot, and stated that he had not received direct relief for two months. His statement was that the settlers are in distress. They have no roads, no shelter for the winter and receive no assistance in that respect. There is Emile Caron, of St. Jean de la Lande. He has six children, he has no construction timber and no fuel wood. He has one cow and receives direct relief. There is Leon Durepos, of Lac Thibeault. He has four children, two of whom are boys, the older thirteen and the younger eight years. He has no construction timber and no fuel wood. He has no lot and no animals. He states that he is dying of hunger. Just imagine, here is a family of six people without any animals or timber. He does not receive any relief. Unemployment and Agricultural Distress Then there is Josephat Fecteau, St. Jean de la Lande. This man has ten children, seven of whom are boys, the oldest nineteen years and the youngest eighteen months. He has no construction timber and fifteen or twenty cords of fuel wood. He has two animals, one cow and one horse. He has no hens, no sheep or no pigs, and receives direct relief. His statement is that he lives on a lot not suitable for farming purposes, and does not see how he can live any longer with his family. He has to sow his seed on the rocks. There is Maxime Garneau, of St. Jean de la Lande. This man has eight children, three of whom are boys, the oldest being seventeen years and the youngest seven. He has no construction timber and only a little fuel wood. He has seven animals, two cows and two oxen. In addition he has one pig and two sheep. He has twenty hens. Compared with some of the others, this man is rich, but he needs the relief that he receives. Then, there is Joseph Gravel of St. Jean de la Lande. This man has five children, three of whom are boys, the oldest twenty-nine and the youngest twenty-three. He has no construction timber and only a little fuel wood. He has no animals and receives direct relief irregularly. There is Madame Leon Leclerc, of Lac Thibeault. She has five children, the oldest ten years and the youngest eleven months. There is only one boy. She has no construction timber and no fuel wood. She has only one cow. Her statement is, " I am alone with my five children. We are very poor, and have not sufficient money to look after the family." She receives $16 per month. There is Felix Morin, of Lac Thibeault. He has one child aged fifteen years. He has two thousand feet of construction timber and fifty cords of fuel wood. He has fifteen hens, and receives direct relief. Joseph Pelletier, of St. Jean de la Lande, has two boys aged nine and seven years. He has no timber of any kind and only two animals, one cow and one pig. He has fourteen hens. Although ordinarily he receives direct relief, he did not get the last payment because he had received a cheque of $28.82 as a settler's premium. He owed that premium on the cow he had purchased. His statement is, " I need my relief for my family." These are sad cases. As settlers some of these farmers receive a small amount of relief. They have to live on it, and can make no money in addition. If they make $4, $5 or $10 on the road they must lose their relief. If a settler buys a horse he has to transfer his colonization premiums, and the money he gets for working on the roads, or from any other source. If he sells some timber he gets no more direct relief and then he cannot pay for bis animals. Suppose a farmer purchases a horse for $150, the current price. He transfers his settler's premium and anything he can get for his timber to the one who sells him the horse. Suppose that amounts to $100; that is given as a guarantee. Just because he has that money due to him he does not receive direct relief. When he cannot pay the balance of $50, the horse dealer comes and takes the horse away and the settler has nothing and is still unable to get direct relief. This is an absurd situation. I understand that they have tried to make some improvement but I do not see how it can be done. The whole responsibility rests with the provincial government and especially with Mr. Laforce. This man has been loaned by the Canadian National Railways to the Quebec department of colonization.


CCF

Abraham Albert Heaps

Co-operative Commonwealth Federation (C.C.F.)

Mr. HEAPS:

What position does he occupy in the Quebec government?

Topic:   UNEMPLOYMENT
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LIB

Jean-François Pouliot

Liberal

Mr. POULIOT:

Deputy head of the

department of colonization. He is now the man in charge of the whole thing. Since he has been in charge there have been many more complaints from the settlers. I do not want to take up too much time so near to the end of the session, but I must say that when men, women and children are facing starvation and when we have the documents to prove these things, there should always be time to direct the attention of this country to the needs of these poor settlers.

Here is what I want to explain in order that I may not be misunderstood. Laforce is an ignorant settler from the back parishes of the county of Rimouski. He was appointed by Mr. Boulay, the former Conservative member for Rimouski, to a position in the immigration department of the Canadian National Railways. When it was decided that there would be less done in connection with immigration, he started a colonization branch. Both really go together and the first purpose was to make settlers of the immigrants. However, it did not work out, because most of the immigrants crossed the border or were deported or engaged in trade in the cities. Very few of them engaged in farming, especially in late years. Laforce secured an office in Montreal and he started to give lectures over the radio. He did not write these himself as he cannot write French correctly. His lectures were prepared for him by some highly paid scribes, but they were very badly delivered by himself over the radio. He had them transcribed and mailed copies to members of parliament and other people, all at great expense to the Canadian National Railways.

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All this was done, no-t to improve the condition of the settlers or to make any progress in a back to the land movement, but simply to justify the existence of Laforce's job. This man was in a position which was absolutely needless, and he had to justify his continuing in that position. He attempted to do this by giving lectures on how agriculture was conducted three thousand years ago and other things just as stupid. He was borrowed finally by the government of Quebec and now he is the deputy head of the department of colonization.

This man is largely responsible for the mistakes which have been made in the past by the Quebec government in placing these settlers on a bunch of rocks in the parish of St. Jean de la Lande which I have mentioned. I called this place the eternal city because it is built on seven hills. On each of these hills there are just a few shacks. On the main hill there are three or four buildings consisting of a small chapel, a small house for (he parish priest and a small building for a school. If a man wants to visit his neigh' our he has to go down a steep hill and then up another for a distance of at least a mile. The post office is located in the ravine. Mr. Hungerford, the president of the Canadian National Railways, admitted the other day in the railway and shipping committee that Laforce had " cooperated " with the Quebec government in connection with such colonization. Therefore he is one of those responsible for the misery and distress of these men.

I denounce him most bitterly. I asked for some information about him from the former government but I did not receive it. I was told that the Canadian National Railways considered that it was not in the public interest to give this information. I have no grudge against Laforce, but he is the man responsible for the misery of these men and women in my constituency who are dying of hunger. There is no excuse for that. If some man in an aeroplane is reported lost because of a fog the country goes to considerable expense to try to locate him. That is done to help just one man, but there are hundreds of people in the parishes of St. Jean de la Lande. and also at St. Elzear, Lejeune, Lac Thibeault and Auclair who are starving. There are others at many of the other new settlements which have been located in Temiscouata, Gaspe, Bonaventure and Rimouski.

It is a shame that these men should be made to suffer in order that this soft job for Laforce may be more or less justified. When he left the Canadian National Railways his

work was praised highly by his successor, Mr. Lanctot, who wanted to keep this soft job so he said that everything that Laforce had done was right and that he was a great Canadian. The federal government has no responsibility with regard to the establishment of these settlers; that rests entirely upon the colonization branch of the Canadian National Railways, but Laforce cooperated with the Quebec government in establishing these settlers on lands which were absolutely no good for farming. I am thankful to the minister for several reasons.

Topic:   UNEMPLOYMENT
Subtopic:   PROVISION FOR ALLEVIATION OF UNEMPLOYMENT AND AGRICULTURAL DISTRESS
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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

That is mutual, doubtless.

Topic:   UNEMPLOYMENT
Subtopic:   PROVISION FOR ALLEVIATION OF UNEMPLOYMENT AND AGRICULTURAL DISTRESS
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LIB

Jean-François Pouliot

Liberal

Mr. POULIOT:

I have received more

satisfactory answers from the present Minister of Labour than I did from the last one, who if not dumb was very silent when I asked him about these matters. The present minister at least gives a polite reply and does his best to consider the distress of these settlers. He does not sidestep the issue at all. The minister is familiar with all I have said. After I have exposed to the committee the plight of these settlers I shall give the particulars of my investigation to the minister in order that he may take the matter up further. I thank the minister also for the kindness which he and his officers have shown in communicating with the Quebec government with regard to the distribution of relief to settlers. I thank him also for having sent Mr. Lafortune there to make a thorough investigation of the distribution of relief to those men and women; I am very anxious to see Mr. Lafortune's report. What I speak about are things with which I am thoroughly familiar.

Here is another case, that of Maxime Pelletier, St. Jean de la Lande. There are three children, two of them boys, the oldest child three years old, the youngest eleven months; two hundred cords of fuel wood, no construction wood. He has ten animals

he is rich; one cow, two sheep, seven hens. Think of that! He has asked relief for his baby. There is the case of Alcime Soucy, Lac Thibeault, Temiscouata county, eleven children, seven of them boys; the oldest child twenty-nine years, the youngest six years; no construction timber; fuel wood, two or three hundred cords. He has fifteen animals: two cows, two oxen, one horse, two pigs, eight sheep, twelve hens. This is a much better case than the others, but may I ask hon. members from any province whether they would regard men in their constituencies with that amount of live stock as being rich farmers?

Most of the settlers in the parishes which I have already mentioned have large families

Unemployment and Agricultural Distress

and have no animals. The other day I referred to cases where babies were being fed, not with milk, but with the juice of pork and beans, or of beans only. Not only that, but in some cases the farmers have had to make soup with roots which they found in the woods. Is it surprising under such circumstances that game is destroyed? These men must live. They are suffering from hunger. Can we blame them for killing a deer or a moose or fishing during the closed season?

May I make it clear to the committee that I have not hand-picked these cases; I took them all from one parish. Others are just as bad. I am putting the whole docket before the minister, but before doing so I will keep it for two or three days, and I shall be pleased to show these returns to any hon. member in order to prove that nothing has been exaggerated.

In conclusion I ask the minister to take all possible means of checking abuses in the distribution of relief. Personally I am not in favour of direct relief, but in conditions of emergency, to prevent men, women and children from dying of hunger, the only thing to do is to assist them until better times arrive.

The suggestion made the other day by the hon. member for Grey-Bruce (Miss Mac-phail) was a timely one, namely, to put farmers on good lands. A proper policy of colonization is very simple. First, the settler shall be selected, the land shall be selected, and people shall be put only on good farming lands, and also there should be good roads to reach their farms. Where a settler has no experience in farming he should be located between two experienced farmers, who will serve like two crutches to help him to stand up and face his country life and profit by their knowledge.

I thank all members of the committee for their kind attention, which is appreciated. I hope that action will be taken to the end that if we pay money to the Quebec government for distribution of relief the money shall reach the settler first. Also, the attention of the Quebec government should be drawn to the fact that Laforce is responsible for all the miseries of these good people and that he should not remain any longer as deputy head of the provincial department of colonization. Then, if possible, settlers who have been placed on rocky soil should be transferred to good lands, lands with good timber on them. Everyone must remember the experience of the old pioneers, who had no direct relief but who had timber on their lots and therefore did not need any relief; they had timber with which to build a house, a little stable, a shed

and so forth, and in winter they could make a little money by selling wood off their lot. At the present time many farmers are handicapped not only by rocky soil but by a total absence of merchantable timber. That is an absurd condition, for, as the hon. member for Grey-Bruce has said, there are plenty of suitable unoccupied lands throughout the country, and the right policy is to bring those settlers from their unfertile lands to good lands where they can live properly and bring up their families in the comfort which they have the right to enjoy.

Topic:   UNEMPLOYMENT
Subtopic:   PROVISION FOR ALLEVIATION OF UNEMPLOYMENT AND AGRICULTURAL DISTRESS
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SC

John Horne Blackmore

Social Credit

Mr. J. H. BLACKMORE (Lethbridge):

I have listened with great attention ito the remarks of the hon. member for Temiscouata (Mr. Pouliot), and I trust that during the few moments which I shall occupy I may enjoy the same measure of attention of hon. members that was given to him. I am going to offer once more what I consider to be a solution of the difficulties in which we are placed. I wish to talk very earnestly to the minister, and if only he and I talk this over I shall be quite satisfied.

There is a great danger that people will get to think that our troubles are clearing up. I believe that every member of this committee must realize that our troubles are not going to clear up. They will be improved, perhaps, by higher prices, but we are faced with a condition in which unemployment is here to stay. The hon. member for Temiscouata has been telling us of difficulties. Within the next few years there will be numbers of members who will rise in this house and tell of terrible difficulties which they can find no way of explaining.

May I draw to the minister's attention what has been taking place across the line, and which, I think, is fairly good evidence of what is going on here in a smaller way. He probably is fully aware of these things, but perhaps because of the anxieties of his office he has not had them drawn to his attention; for I know the minister is an exceedingly busy man, and very conscientious, and the commendation he received a few moments ago was not undeserved.

I noticed, in an article which appeared in the Saturday Evening Post on April 3. 1937, a statement to the effect that the United States will have during 1937 unemployed to the number of six and a half to seven and a half millions, even if the 1929 levels should return. I do not believe that very many members of this committee anticipate the return of prosperity greater than that which obtained in this land in 1929; consequently we can expect in Canada a condition somewhat similar to that which will exist during

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Unemployment and Agricultural Distress

1937 in the United States, even though conditions improve to the 1929 level; and, according to this article, there will be eating the bread of unemployment in the United States twenty-five million people. That means one-fifth of the total population of the United States. Now, this is an exceedingly sobering consideration for every member of this committee.

Again, we find in the Saturday Evening Post of February 6, at page 22, evidence that goes to show that despite the extraordinary business recovery in the United States the employment of workers in private industry improved between October, 1935, and October, 1936, only 6-3 per cent, which indicates that not only in the agricultural areas will there be distress but in the industrial centres even when people are employed to the highest degree possible and where recovery is established. This I consider an extremely serious matter, for it probably shows what is happening in Canada as well. The Christian Science Monitor of March 29, at page 1, gives some interesting information. In the United States there is what is known as a works progress administration which is investigating conditions there. This organization has been working for fifteen months investigating 650 manufacturing plants as well as agriculture, mining, construction and transportation. At the end of that time it has reported to the United States that since 1929 so many people have been thrown out of employment by the development of machines -that is to say, they have become technologically unemployed-that in order to get back to work as many people proportionately as there were at work in 1929 it will be necessary for the United States to increase production twenty per cent. The question immediately arises: If that country does increase production twenty per cent where will it sell the goods? A similar condition also faces us.

In other words. Mr. Chairman, we are facing a situation the like of which has .never faced any people on this earth in all its history. To argue therefore from what has taken place in previous depressions that the same thing will happen in this depression is, I believe, simply to delude ourselves. It gives me great alarm for fear we shall spend too much time hoping that things will work out when I feel confident that they will not do so without a change of system. We are something like an army living in a land which once was fertile but has now fallen upon bad times. There is a tendency to dry up, so to speak. This army is standing at crossroads. Two roads branch off. One of these roads has three branches, one of which leads

into an ocean, one into a morass, and one to a cliff over which we can be precipitated into a roaring torrent. The other road leads up over mountainous country to a plateau. It is difficult to travel but it offers a way out. Along the other road there is no way out, and that other road, that road from which there is no way out, is the road along which we are now travelling, when we try to make a system work that cannot work. The path up the hill to the higher plateau is the system of the newer economics.

There are many people who may laugh at the new economics to-day, but there will be very few ten years from now. I am going to [DOT]suggest once more, that the solution, the way out up the hill to the higher plateau, is the system of social credit. It is not a panacea, not an easy way out, but it is a way out, while no other system offers a way out at all.

Since coming here we have not talked very much about social credit, mainly because people have been so much prejudiced against it that, they will not listen long enough to realize what it is. Consequently we have advocated here and there only certain principles of it. I propose to set before this committee now, briefly, an outline of what social credit is, and how it will solve the difficulties if we adopt it as a perhaps difficult but a possible way out.

Social credit proposes first of all that there shall be national purchasing power which will work as money. This purchasing power is based directly upon the goods and services which the country is producing, which it now has and which it can produce with the equipment it now possesses. Many people and many newspapers throughout the country have said that we have advocated the making of tickets without reference to goods and services. That is a major fallacy; we do not propose that. What we say is this: You have the goods and services now in superabundance; you have industrial equipment such as no other nation on earth has to-day; you can produce faster [DOT] per capita in America-and I propose to bring evidence to prove this- than any other nation, and you are therefore justified in creating a great many tickets before you will have enough tickets to correspond to the goods and services that can be produced at your present productive capacity. We say, therefore, that you must create purchasing power nationally, and you will do this to finance public works and new industries, to increase production, to take care of policing and defence expenses, to take care of social services such as state medicine, pensions for the blind and the aged, motherhood, relief from drought and so on.

Unemployment and Agricultural Distress

Every member of this committee realizes, I know, that these things must be done; yet every member recognizes that we do not know where to find the money to finance them. There is not a heart in this chamber that was not touched by the stories which the hon. member for Temiscouata told us, and there is hardly a member who could not match them with stories just as sad. But you say, What can we do? I say, yes, that is the question. What can we do under the present system where every dollar we spend we must either borrow or secure from the people in taxation? We can do nothing. That is the pathetic part of it. A country as rich as this can do nothing. It is monstrous; it is unthinkable.

We social creditors say, therefore, that we must create purchasing power based upon the goods and services which we have and which we can produce, and then the more goods and services we can produce the more purchasing power we can have. After creating that purchasing power, social credit says that there must be a national dividend guaranteeing to every man, woman and child in the country food, clothing and shelter. This device will take care of the unemployed who are unavoidably unemployed. It will supplement the low incomes which at present the vast majority of the people receive and with which it is impossible for them to maintain a family at a decent standard of living. Besides that it will develop markets so that the industries we have will be able to sell their products. If you could put S40 a month into the hands of the families to whom the hon. member for Temiscouata was referring they would be of interest immediately to the manufacturers throughout this land; they would be potential buyers. They are not so now. And the industries lack markets while those people suffer want. Social credit says that the first thing the governments of any country to-day must do is to take care of their needy and develop their home markets; then their foreign markets will take care of themselves. Now that, I grant, is an utterly new conception. But have we not had sufficient proof here that we must have a new conception to deal with the situation which confronts us?

The third principle of social credit is what is called the just price.

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LIB

Norman McLeod Rogers (Minister of Labour)

Liberal

Mr. ROGERS:

Will my hon. friend permit one question on the last point? Does he contend that if you increase the issue of paper purchasing power indefinitely you will at the same time get an indefinite increase or a proportionate increase in the goods and services produced in the community?

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SC

John Horne Blackmore

Social Credit

Mr. BLACKMORE:

The question is a very sound and wise one. The answer is yes, to a surprising degree, as I shall show as I go on. I shall show that great authorities such as Professor G. D. H. Cole are of that opinion. Of course I would not say that the word " indefinite " should be used.

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LIB

Norman McLeod Rogers (Minister of Labour)

Liberal

Mr. ROGERS:

Well, I would not press that word.

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SC

John Horne Blackmore

Social Credit

Mr. BLACKMORE:

But they will increase within reason. Money must be issued scientifically with an eye strictly on the facts of the situation. But granting that, a tremendous increase of purchasing power can be made and will result in additional production. I trust I have answered the minister's question satisfactorily. I shall be delighted to answer any question which any hon. member desires to ask me, for if this thing is false I want to know it and we all want to know it, but if it is true and sound then it is a matter which should engage our serious attention.

The just price, scientifically designed, not based on a hit or miss system, has two main applications. The first is a mechanism to allow the producer his cost of production plus a reasonable profit. Granted that the cost of production in various parts of the country is different, there would have to be an average struck. But certain it is that it is possible to arrive at the average cost of production, say for wheat, or for shoes or textiles or virtually anything. It is possible then to arrive at what should be a reasonable profit. Shall it be four per cent? A reasonable profit. The social credit principle of the just price allows for the cost of production plus a reasonable profit. Manifestly if a

man is trying to produce under conditions which prevent his producing so that he can sell in competition with others who can do it much more cheaply, then that man will go out of business, as he does now. But there should be a price which will guarantee the average cost of production plus a profit, otherwise business cannot carry on. Everyone knows that.

The second application of the just price is one which people do not ordinarily understand. It is called the compensated price. It is a device whereby the government will lower the price to the consumer by paying a percentage of the retail price of an article as the retailer receives that price over the counter. It is another device by which the purchasing power of the people is increased. I have not time to go into this matter in detail.

These two aspects of the just price will prevent inflation. There are several reasons for

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that. You cannot have inflation without a rise in price. If you have determined a just price there will be no rise in the price. Furthermore you cannot have inflation unless money in circulation increases beyond the amount of goods and services available. Consequently if money is allowed as a compensation of the price, clearly that money is directly in proportion to the goods and services as they appear and go into consumption. The two devices together will prevent inflation, notwithstanding the increase in purchasing power.

May I earnestly bring to the minister's attention the fact that some very eminent men are coming to believe in the principles of social credit. I mention first Professor R. F. Irvine, for twenty-five years an orthodox professor of economies at Sydney university. Professor Irvine has recently published an article called Afterthoughts. In that article he uses these words, astonishing from an orthodox professor of economics, words to which every hon. member of this committee must give close attention if he is going to be other than reckless:

I believe that the principles put forward by C. H. Douglas are not only sound, but that they provide the only practical way of escape from the tragic fate which otherwise awaits the whole of western civilization. The reason that most economists have scouted the Douglas diagnosis is that it calls in question the most fundamental doctrines of the classical school, and the later schools which have grown out of it. The doctrine asserts that "supply creates its own demand."

Topic:   UNEMPLOYMENT
Subtopic:   PROVISION FOR ALLEVIATION OF UNEMPLOYMENT AND AGRICULTURAL DISTRESS
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April 6, 1937