The Ottawa Journal from Ottawa, Ontario, Canada • Page 25

I By R. U. HAHAFFT Stabilization (3) IN FRAMING THE federal budget for 1966-67. one of the most crucial issues will be assessment of inflationary pressures in the economy. Should it be decided that there is evidence of inflationary patches spreading, this could jeopardize the targets for economic growth set by the Economic Council of Canada, and the country's ability to hold its competitive edge in export markets.

But whatever Is decided, it is certain that the bludgeon of heavy-handed fiscal action will not be used again to influence aggregate demand. For John Deutsch, chairman pf the Economic Council, has pointed out that a good performance of the economy places a heavy reliance on a complex of policies. While monetary and fiscal policy have been downgraded as effective stabilization instruments in short-term fluctuations in total demand, they have taken on an enhanced role in helping achieve longer-term objectives. Dr: Deutsch told the Carleton University lecture series last fall. Restraint Already Indeed, a moderate degree of fiscal restraint has already been introduced with payroll deductions for the Canada Pension Plan.

And rate of increase in the money supply, on a seasonally adjusted basis, has levelled off since last October. What, are the facts on inflationary pressures in the economy? In January, the consumer price index was up 3.1 per cent over a year earlier. The big push came from food, up 6.1 per cent largely due to the U.S. demand for beef and pork and services were up 4 per cent. In fact, while the general wholesale price index was up 3.8 per cent last year, the non-farm wholesale index rose only 2.3 per cent.

The best overall measure of price changes given by the price factor used in valuation of gross national product This rose about 3 per cent in 163 comparedwith 2.3 per cent in 1964. The Economic Council's "guidelines" for increases in GNP and consumer prices are 2 per cent and 1.5 per cent respectively. The Bank of Nova Scotia monthly review also notes that there was a renewed uptrend last year in unit labor costs in manufacturing and construction. At year ed, the bank said, this was having a restraining eflect on certain sectors of demand such as residential construction. 5.2 Per Cent Climb The non-residential building materials index rose 5.2 per cent in the 12 months to December, 1965.

Plumbing and heating supplies rose 6.2 per cent, steel and metal work. 8.2 per cent. Industry selling prices rose 7.3 per cent for hardwood 4.6 per cent for lumber, 4.9 per cent for hardware, 5.7 per cent for concrete products. Higher non-ferrous metal prices also boosted industry -selling prices for brass and copper by 11.7 per cent; faucets by 8.5 per cent; wires and cables by 7.7 per cent. and magnet wire by 8.8 get- cent But it is not enough to look only on the quantitative aspects of inflationary pressures.

The cause of these pressures, and how the "overheating' can be alleviated, must also be considered. The Economic Council says that while there was no clear evidence of excessive over-all demand growth resulting in general overheating in the economy last year, certain symptoms of strain appeared. It concluded that the economy was still operating at 3 per cent under its potential. However, the Bank of Nova Scotia review observes that the economy was operating sufficiently dose to capacity to exert noticeable pressures both of a physical and financial type. For example, the pulp and paper industry as a whole operated at per cent of capacity and a VS.

authority has suggested 95 per cent as a capacity level for manufacturing. Another measure of the degree of slack in the economy often used is the unemployment rate. In Canada, this has been running at. 3.5 per cent of the labor force compared with the ideal level of 3 per cent. Originate Outside Canada Those who oppose the view that "demand-pull" inflation is a threat point out that both' food and base metal prices in Canada are influenced largely by North American demand and not primarily by domestic influences.

The consumer price index has also been under steady upward pressure from increasing costs of services. Climbing material costs in the construction industry, on the other hand, may be due basically to a mismatching of supply and demand. New capacity in steel, for example, has not 'fome in quickly enough to keep pace with demand. In such cases. Dr.

John Deutsch said at Carleton University last fall, it may be necessary to focus on measures which affect the supply side of the economy. These Include not only policies to enlarge the supply of skilled and technical personnel, but such Incentive programs as accelerated depreciation, tax exemptions, subsidies, resource development, and research assistance. It is likely that such supply-increasing policies will be fully exploited before major tax changes are contemplated to influence aggregate demand and perhaps retard economic growth, in any case, no drastic overhaul of the tax structure can be expected until the royal commission's report has been received and studied. Economists argue, moreover, that using ah overall unemployment rate to measure the degree of slack in the Canadian economy is misleading, especially when the rate in the Atlantic region continues at 7 per cent. Nor is it clear that the economy has reached the peak of its sustainable expansion.

New capacity now being built will ease bottlenecks and strengthen the base for major ex-pott expansion. Marshall A. Crowe, economist for the Canadian Imperial Bank of Commerce, wrote recently that there "appears to exist considerable potential for continued growth." Bolton-Tremblay's View "IT APPEARS THAT the monetary environment is moving close to the breaking point. The problem facing us is now in the last month or two clearly out in the open and it can be summed up in one word. Inflation." This is the conclusion reached in the Botton-Ttemblay Bank Credit Analyst for March on the course of money and credit trends in the U.S.

The investment service adds: "Unfortunately, the kind of inflation we now are seeing is not good for stock prices It appears to us, therefore, that the traditional response to inflation load up with stocks, real estate will not work at this juncture Capsule Comment FURNITURE SALES in department stores now account for more than 35 per cent of such sales, the Canadian Council of Furniture Manufacturers was told at Montreal by Stanley N. Conder. of Ottawa, general manager of CCFM Quebec Province now produces more zinc than all but five countries in the world, the provincial bureau of statistics says New bond financing in the first two months of 1966 totalled $753,145,627 against $600.103300 in the same period last year. Wood. Gundy Company reports.

Of the two-month 1966 total. $172380.000 was in US. pay issues, compared with $15,000,000 last year Ontario gold mines report 1965 output worth $70,660,521 down $8,665,929 from 1964. Gold production was down 23221 ounces and silver output off 21,674 ounces. Heart Fund Has Raised $55,851 John D.

Richard, chairman of the Ottawa chapter of the Ontario Heart Foundation an nounced Friday that so far S55.851 has been collected in the 1966 fund-raising campaign in the greater Ottawa area and, N'epean Twonship. "This figure represents the amount we have in the bank he said, "and more money is coming in each day." Three Blood Donor Clinics Next Week Three blood donor clinics will be held in Ottawa next seek, the Red Cross announced today. Two- of the clinics will be on Monday. The permanent week-; ly chnic will be at blood nor i headquarters. (34 Bronson Avenue, from 1.30 to 4.30 p.m.

and (.30 to 8.30 p.m. while the: mobile clinic will, visit the City' Social Service Building. 495 Richmond Road, from 10 a.m.! to 12 noon. On Tuesday the mobile clmic will be at dgemont High' School from a.m. to 12 noon and I to 3 p.m.

Lavt year the rais-! increase over last ear." -she1 ed a total of $47,000 sjid "This ear we had" 3.000 money UI be used to nnn wnrktna i th defer 'he of grants given to doctors in the Ottawa area: to carry rn heart These grants, given each year by the Ontario Heart Foundation, amount to $73,665 for 1966 The majority of funds were! ra.sedbv a door-to-door cam-! paigh organized by Mrs. Elea- nor Ryan. 3S5 Ravenhill Aven-1 ue. Ottawa. "The total brought in by Jhe canvassers is $45,440 a large MORTGAGE FUNDS AVAILABLE AT ffRIDEAU TttBT COMPANY Collegiate Institute Board of Ottawa Ml Iraa Street.

Ottawa I. Pallia -Tel 234-VN1. Ext. St 234501 OFFICE SPACE The new Canada Permanent Building at Metcalfe and Queen Streets is near completion. There is a limited amount of space on the upper floors which can now be seen.

Ideal location and accommodation for firms requiring a prestige offiqe. MR. FRASER Canada Permanent Trust Co. 232-3791 Carliagwood Stopping Centre Ltd. PRIME RETAIL SPACE AVAILABLE FOR LEASE Approximately Aug, IMC 1.7S5 sq.

ft, ft frontage tuggnl im tallowing reaoil oatvtv Jrmiier Pom, Woilpoptr ono Accmorin Scans loo' wor Ewctncoi f'-fum and Aaplianca Soaks and sw I wax and Floor COVOTtnoS. SDKionv OUftafS UK Oft mML hfr. rttmmLm ovncocits. rr ruin nil mm 271 Lockhart, Apt. 109, Ottawa 13 725-2720 725-1546 MARKETING FOR UARUFACTURERS Division fho Fcdtraf Dvoorttracnt of Li of due of eon not rvtsuttod sn gn own-wily twwa mnM ttoMV" Board flf OngM mm aOswr and Ontario OoporMnor a tjoowoi of mm am nil Wo oro ptooscd to offer at snort coorw In Morftcfina Jr Manufactjrors.

Markrting doftnrd as tno on' tor iwawco of Ms activities wtttrJi or rospomnHH tor wng product mn producar la ftto csnsavnor. Teaks CM Kr want, wank Tarr im Hi si at oaaaaiae aae sffMoe aaaana tmtfw oat ft cii nt Pridai Hr Pliant Tlii'l OjMUMNii Tmm lie PnHni ymmaii annua, tar ttmmu nm ii run niiin aiofanoe MaaaoaoMBt Mai Be AdBBMasivnm PCMft StarHaa TeasaVf. March 2. 1M-7-M Sua. la am Dualisa.

10 anil, aat aiaat par ana face: Ottawa 0iiri liiaiaii IM Ireasaa Ottawa SENIOR ARCHITECTURAL DRAFTSMAN JUNIOR ARCHITECT Required by progressive South Western Ontario employer. Relocation allowance and competitive salary available and open for negotiation. Reply to Executive and Professional Division National Employment Service 385 Slater Street Quote CO EP 48 COMMERCIAL ARTIST Experienced in Assembly and Working Art Thorough Knowledge of Production Necessary Airbrush Experience Would Be an Asset Write in confidence to Box E-83 Journal stating qualifications and salary expected. I Hn mm Walt ana ana aaasat at campa.gn. an; of more than 350 over last vear's total Soturdoy, Morch 12, lft66 1 HELSINKI (AP) Upland- I ers are io or tnree times more i than other inhabi tants of Fin and.

a study has found. Thoufh the level is well beiow danger, nuclear fallout has contaminated the lichen ahich feeds reindeer which feed the Lapps. COST ACCOUNTANT We require a cost accountant for a leading position in our accounting department. Must be a responsible person capable of working with-, minimum of supervision. Experience in cost accounting and a knowledge of standard costs would be an asset.

v. i 1 Submit complete resume to: MK. A. R. RICHARDSON PLAYTEX LIMITED, ARN PRIOR, ONTARIO SALES OPPORTUNITY Do you enjoy meeting the public? Do you have any experience in Do you enjoy challenging work where efforts are rewarded by one of the fairest remuneration and car demonstrator plans? Your enquiries are invited and a confidential interview can be arranged bv calling A.

M. CRONSBERRV or S. SMITH SURGENOR MOTORS LIMITED Sparks and Lyon Sts. aaraHj mat arta TeL 235-3321 WEAVERS Experienced Weavers Wanted Now Excellent working conditions in new plant in Cornwall. Fringe benefits include shift and overtime premiums, bonus opportunity, group life and hospital insurance modern canteen and parking facilities, statutory holidays and annual vacations with pay.

For information contact your local National Employment Service Office or Apply aWect to Personnel Manager LQXG SAULT FABRICS LUSHED P.O. Box 314 Long Sooh, Ont. TeL (613) 534-2201 The Debates Division Translation Bureau Secretary of State Department REQUIRES iiplijui te uaasrrlae Debate i aUKT tjain( aaUex QCAUnC-STlOVS At least tnree years of related experience: demonstrated abStr to transcribe dJIicuit dictation both the French and Butnh lantnarrs nth speed and accuracy. Completion of secondary school education or higher may be substituted lor some experience. Prospective applicants must be prepared to work trrefular boors, very often until' one or tao o'clock in the morxunc.

Hoaever. special benefits, such as additional leave which may be up to 10 weeks, are (ranted. Starting Salary: $330.16 a month Apply 1 Ike CM Serrwe fiaMi iniia. Ottawa 4. aa i rrm CSC HO net bier than MAKCH It.

ISOt. For farther please Gill 992-5926 IVase eamte Oe refereace ft SHI oa applicaina forms. MEDICAL DOCTORS A number of interesting and satisfying career opportunities are immediately available to Medical Doctors, licensed to practise in any Canadian province, with the MEDICAL SERVICES DIRECTORATE FEDEtAL DEPARTMENT OF NATIONAL HEALTH AND WELFARE Medical Services provide treatment and public health services to Indians. Eskimos and all residents of Canada's Northern Territories; quarantine control services at ports of entry, both air and sea: medical examinations of immigrants to Canada, and candidates for government employment. Opportunities exist at major Canadian centres and in isolated Arctic areas.

Later postings may be made to Western Europe and Asia. Educational leave with pay is provided for specialist training as required. For details and applications write to the CTVI. SERVICE COMMISSION OF CANADA OTTAWA 4, ONTARIO Ovate Ffe CC-1CS41 The Oftca Journal SALESMAN Nationally advertised manufacturer of oundat on garments and lingerie has an opening for an salesman for Ottawa and Salary, commiss.on and expenses. Send details of qualifications including previous experience, age- and marital status to: i BoxrD-998, JOURNAL INDUSTRIAL SALES REPRESENTATIVE for Abitibi Containers Ltd.

Our recent expansion creates an opening for an energetic Ottawa based representative. Applicants must have a success background. Product knowledge training will be given. Forward resume to: Abitibi Containers Ltd. Pembroke, Ontario I fCANADAIR LIMITED I MONTREAL 3 3 Dp you qualify for any of these challenging AIRCRAFT and VEHll career vacancies? Structures Design Mechanical I Design, I Electrical Design Avionics Design Equipment and Installations 1 Design Functional Test I Reliability I Quality Assurance IE Stress Weights Dynamics and Loads Aerodynamic Hydrodynamics Thermodynamics Operations Research Preliminary Design New long term AIRCRAFT and VEHICLE contracts at Canadair haye established new openings for well-trained, energetic personnel in our Engineering Department.

IT you are looking for a rewarding career in the Aerospace industry, have an engineering education and are experienced in one of the above categories let's talk it over. CANADAIR OFFERS: 3raonuocfjwj pro9 owmi offering cttoitcnQint, intvCsfafaf owymw rdatM to f-gfttv and STOL o-rxrort. surwUarc ovorkn. trackctf and o-r cwanian vinicin Miatrial antl rcM- Kfiirol prottv. a High oOrn Comrncnwro wrfh quoltficotions and xpartcne.

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