Canada Recognizing Source of Its Boom
MONTREAL ÛÓ The more CanadaÛªs trade deficit with the United States is considered, the more it seems probable that the new Conservative government will have to leave it just where its predecessors. the Liberals, left it ÛÓin the hands of the gods I and at the mercy of strong natural forces.</br></br>I The substantial visible deficit is now being more than 1 made up by the inflow of . capital investment. The Ca-[ nauian dollar stands at a pre-, mium in New York. If the inward flow of capital stops , or even slackens substantial-> ly, the dollar will right itself and other natural forces will reduce the deficit.</br></br>åÈ The loose talk in which cer-' tain Canadian publications and public men have in-j dulged. all of it based on r some assumption that natural t economic forces can be vio-. lenily deflected by government action, is more and . more being seen as merely I loose talk.</br></br>1 A GREAT PART of the present United States invest-* meat is based on the need of ' big American producers for . raw materials. They invest in this country because it suits titeir overall pattern of production and distribution, 1 not because they want con-1 sciously to dominate Canada, t This was well brought out i by the recent report on Can-I adaÛªs economic prospects. An i analysis of that report by Prof. Jacob Viner of Prince-s ton. a Canadian-born econo-3 mist of international repute, t points out that if Canadians \f had been financially able to develop their own resources, s United States companies r would have been glad to buy the product.</br></br>It is now dawning on some 1 of the critics of the resulting r situation that the postwar e boom in Canaria was founded c on these investments and on