The Ottawa Journal from Ottawa, Ontario, Canada • Page 9

The Ottawa Journal Special Features tr Saturday, February. 8, 1969 TV By IjHortgageCash Aplenty Wt Can "So far there doer not ap-i pear to be any shortage of I. conventional mortgage fund Ottawa at per cent id' fact one trust company had. money at per cent up until the. last week in January but the shape of things to come remains clouded.

''or one thing this is a'tlacjc period in the housing Indus-- try, toe bite of the new 9X per cent NHA maximum has yrto be determined (higher carrying charges and down' payments price some homes beyond the reach of many), and the future stance' of ap-proved lenders offers some uncertainty. "Construction companies are not in a ruth right now," said one trust company mort- gage department officer. rThey can't buili People who do have money got; i This spokesman said there were, adequate funds able at the conventional rate pf 9'4 per cent. But there NHA money at pros- int." He that there ere: too many single housing; developments; most Of the money was going into multiple and high rise, con-, The mortgage officer of an- itither-, trust company, how ever, said "Quite a' bit of business coming in' for single dwelling conf 1" itructlon, evert with- conyen- tional rates at 94 per cent His company has a special guaranteed mortgage fund in whlcl- investors can buy shares; and this is expected to provide flow of money 'place in individual mort- gages, mis nrm nas neen ai- ibsk tore report' ana uie im-tocated $2.9. million for mart' -pact vf the pew taxes before 11 -gage Investment 'in 1969.

'themselves. The federal cabinet is soon expected to make a final whether. Canada should adopt the metric sys tem, according to Heavy Con- structkm News. The system is now used by over 90 per cent of the world's population. it not used ex- tensively in United States yet A.

report on the pro- is now in its final stages of preparation and should be submitted to the cabinet soon. K. U. MAHAFFY This trust company offers to combine first and second mortgages in one package that the home Buyer would 'pay Pr cent on the total loan. A poll of life company lending agencies showed no lack of availability of 'conventional funds as yet 1 J.

K. Macdonald, president of Confederation Life Asso-' ciation, told the Toronto an-' nual meeting new taxes proposed in the Oct 22 bud-1 get "has led to changes in our Investment planning with a decrease In the proportion of our investments in mortgages' and bonds coincident with an increase in investment in stocks and in real estate' developments where we. bold a substantial part of -'the equity.1?: '-A spokesman for one life insurance mortgage lending office in Ottawa said, far as we're" concerned we're steadily in funds. Our biggest demand is for single family units." While the per cent rate for conventional funds was having some effect, It was not stopping people from buying bomesi It just meant It was harder to qualify 25 to 27 per cent of annual income being the limit- supposed te go for mortgage principal, taterest and taxes. But NHA lending is another" story.

Chartered banks accounted for all of. the increase in loan applications by approved lenders in and the life insurance companies appear to be awaiting to see what happens' to Paul Hellyers housing 1 If cabinet approval is obtained, the government's proposed Standards Council of which is expected to be established later this, ses- sion, will probably be asked to plan a conversion schedule for the private sector. The Canadian; Construction Association, reports HCN. sup- ports the move to metric and has asked for an "orderly to the system for the pact and medium-sized cars in contrast with big centres such as Metre Toronto where the emphasis; is expected to be on bigger mbre expensive models. In the Capital in the words of one, dealers are "wearing grins as wide as the grilles on the 1969 models." Ponders Relocating 1963.

Since then employment has risen from 110 to 180. Bowmar Canada manufactures tiny mechanical servomotors, an essential part of aircraft Instrumentation, counters, speed reducers, and gear, hesds. It is an offlcal termed "a component house." A large part of the business Is "Is that different people look too exclusively at different indicators." Some focus their attention the' overall Increase In "money others on interest rate levels. On the narrower -definition of money supply as currency and demand deposits money supply increased by 0111 CV4 per cent I 1968. By the end of, 1968 the total of more, liquid asset of the banks -were ne higher than In early September, and the ratio of the.

banks' more' liquid assets to total assets had been signifi cantly reduced. Caoital Car Dealers All Smiles Ottawa car dealers look for Jump of up, to- 20 per, cent In new car sales over-las -Var: A Cross-Canada Survey by the Canadian Press indi-. 'Sated a gain; of four, to five fte cent'tiationallyrf ae' But in Ottawa the increase mainly in com1- iir -a -i Bowmar Canada the past two years Bow- Wmar Canada Limited on the JRlver Road has doubled iu business and has been giving serious thought to whether it. htmld re; locate in larger i quarters. The company is a Mibsldlary of Bowmar Instru-'J jnent COrp Fort Wayne, In-, liana.

Tbe OtUwa: subsidiary be- done government operatIng.hr. Ottawa In tract Is Money Getting Looser? Well Yes Then Again; No! i'y Total money 'supply 'e as total currency and char- tered bank Canadian dollar deposits) Is up 12 per cent a year Cut does that mean Canada iiis in, "easy" money policy? top economist of the Bank 'S''Canaxbi says ha- K. Bouey told the Certl-. ifled; Genera! Accountant JOf Ontario at Toron-v Jo? that aster sorn relaxation monetary poUiJy. last sum-rulMiy It tiihieneo-'ocon-.

'iJlslHerabljr; J- Ifoting that Canada Ut do holdings of currency hv a money-supply policy 'an demand deposits showed tfiat to, directed Hula growth from September tt xrtdit condition a wholei (to year end, and the broader Mr-SjBouey said that of 'series of public holdings of "the mala, of onJ currency and Canadian dollar u-fu'V. tf trying id deposiu slowed after the rathe trend of monetary policy pid summer rise. i 'I I I i This giant carrier lifts one-half of an Alcan Universal Home in the marshalling yard outside the plant at Woodstock! Ont. It is one of the largest such machines in Canada and has a lifting capacity of 30,000 pounds. These homes are manufactured using assembly line techniques and are then transported by highway to more than 30 franchised builders in Ontario and Quebec where they are erected on prepared foundations.

The homes are sold equipped with major appliances and are furnished ready for occupancy. Sees Canada Exporti ng 75 Per Cent to Soon The writer of this article is dean of the faculty "of administrative studies, York University. By JAMES GILLIES Special Correspondence The recently'released re porta of the Department of Trade and Commerce on the volume of Canada', interna- tional trade in 1968 are enormously encouraging and enormously -They- are encouraging be-. cause they 'know that: during 1968 Canadian producers of aB types -of goods exported more i ever before hnd prob- recMdMl- than -wily recorded ione greatest increases' in the volume of exports; in tHis cen- tury." Moreover. while exports were growing at such, a pfiSnomenal irttttif Aase In While large, was Jnot 8reaf Wd therefore Canada had an ceptionally favorable trade balance in 1968.

There are various reasons for IncreasS in exports-r- the-general high level of pros-; perity In most' trading nai; tions, the acceptance of some of the recently negotiated trade agreements and a gen-: era! positive attitude, in most about the benefits of world trade. Against these favorable points, however, was the some important nations had foreign-exchange difficulties which affeoted their capacity to buy in national But the real reason for the; record setting volume of activity in Canada was' the 'phenomenal increase in trade! with the United In fact, in 1968 Canadian- pro-, ducers turned what is usually, a deficit in trade between the! two countries- into a surplus; i they in fact sold more to the! United States than Canadian- firms j. The reason for this is twro-j fold the high level of pros-' perity In the. United' and the automatlve free-trade agreement -There -can nq longer, be any doubt that, this agreement in economic, terms Jiasbeen a smashing cess. It has led to capital in vestment.

In the Canadian economy, and is certainly the .1 HOISTS HALF A HOUSE single most important factor in the current favorable trade position, of Canada vis-a-vis vthe United In fact in the. first 10 months of 1968, more than 40 per' cent of; the increase in sales- by Canadians to the United States could be attri buted to. motor vehicles and Part? exrrte doW lar terras ine increase, the same period of 1967 was more than $500 The challenging aspect of the record-setting. volume of. world trade lies, in fact that so much, of is attribut-' iv i llnvei' chanee.

with the United Sutesi If the current trends continue, as much as 75. per cent of all Canada's export trade may within two or three years be with that one country, and regardless of whatever' country it may be, it is -not healthy to have so-little' diversification in mar-! ketsJ i -s i From past experience we know that modest economic changes in the U.S. -have large influence on their volume of imporfsVTo the ex- tent that Canadian producers are more and; more -dependent on' this one market the Canadian economy is linked ieveri: closer to, economic events in thai country. It Imperative for Cana-, dian- producers effectively to develop -new. and diversified Obviously, these' will not be found in the United kingdom, which- is Canada's- second largest customer althoueh it accounts f0r only about llper cent bf all.

exports simply because the United Kingdom will sooner or later be joining the European Common Market and will evolve new, trade Large markets are not like ly to be, found hi the truly under-developed nations be- cause, without a minimum standard of" economic relatively little major trade takes place. This leaves, it seems to me, Latin America, as perhaps the most likely place for Canadian exporters tp make large gains. Regardless of the area of potential development, how ever, it Is important to re member that whether or not I -GoldP0w 19551 I I 1 19601 I I 1 19651 1 1968 1 11 1 1 i 1 1 11 I i i EIGHT-YEAR DECLINE Canadian gold production finished 1968 with a drop of 250,000 ounces, almost $10,000,000 lower than In 1967, Figures released by the Dominion Bureau of Statistics show the production to be decline for the eighth consecutive year. ft i 'J trade expands depends -to a considerable extent upon the aggressiveness and ability of Canadian business firms, When' one reads the total of Canada's export trade there; a tendency to think of them as a unit rather than as the sum of what a great: number of individual, enterprises by.1 themselves. Canada's trade' is' carried an, by and large, by Canadian business' firms and whether or not it be in-creased and developed really depends not on any mono- lithjc goyemment policy, but effecuye the managers ot, winaoian -enter- are at; going after, busi- ness in new markets.

I do not suggest that the Department of Trade and Commerce and other agen- have no role to play. In-. the tremendous" sales euort ot Robert Winters, he was minister of trade and commerce, both at home and abroad, did much to. make people conscious of the. significant ot foreign trade to Canadian firms.

But in the last analysis it is the1 spirit drive and cap'a-' biihy of Canadian management which will determine whether- not we can continue to increase' the demand abroad. This is a' challenge' which Canadian management can and should accept because there is no doubt that the degree of prosperity of Canada in the future will depend, to some extent, on how. well they' perform in world market. a' k.l ,5 Cqmpeau Confident' Of'Okayf- f. "I haven't-any doubt that the Toronto Harbor Commission, the City of Toronto and ourselvds will, come up with some within the next two or three months," Robert Campeau, president of Campeau Corporation Limited said Friday in connection with the $-50 million Toronto waterfront develop-'.

ment Campeau said his company "was "not married to every detail of the plan," and that zoning bylaw changes were -a common factor in large; construction projects. The company was negotiating with city hall to allow "flex-: ibility in arrangmement of the', building and arrangement'' of the public space" in case' of Changes in the plan during the 10 years proposed for the building. He denied that the. Toronto Harbor Commission stood Jn the way of the project "Although there are some ques- tiohs to be resolved, and per- haps some changes, the' harbor commission is anxious to havf their planners get together with our planners as soon as possible." Mr. Campeau said, 1 1 to "a report that Metro approval was required lor reloaction within the complex of the Toronto Island ferry terminal and agreement for new fire boat docks, that both were "now agreed Bigger Slice of U.S.

Market? Canadian aerospace companies should be capable of capturing a larger share of the U.S. aerpspace market particularly' from prime-contractors an article in Foreign Trade says. D. Keddie, vice consul and assistant trade commissioner A. XT 1.

t' vanced by 34.6 per cent in iT.t SiL 1 mdu SDendlnc; on caoital eouin-: ment- has rocketed and the. same level of spending is. expected to extend through 1969. Products' of this industry and straight research and development contracts em-; brace such diverse fields as aircraft missile oceanography, communications, medicine, water desalination, air and water pollution control, waste- management, and surface transportation systems for both land and water. The degree of emphasis in any particular area depends on expenditures by the De- partment of Defence, the National Aeronautics and Space Administration, and the Atomic Energy Com-.

mission. Vietnam has been a factor in the climb in sales to DOD! and to NASA and (AEC, but it is estimated less man la per ceni or uie in-'. dustry's present sales can be attributed to 1 -V-t' "-Iv Cvs5-U i --H "i NEW OIL DISPERSANT Imperial Oil ha equipped Its fleet of tankers' and barges with a recently developed chemical to disperse oil spills. Called Corexit the dispersant is being demonstrated here at The chemical is a spray that disperse oil slicks and promotes the natural disintegration of the oil without harming marine life. -J MIRROR' BUILDING FOR VANCOUVER Work, is expected to start in May on the Pacific Centre development in downtown Van- couver.

The 30-storey Toronto Dominion Bank tower shown above in this artist's drawing will be the first mirror-like building in the city. It will have walls of solar bronze glass. (CP-journal Wtrphota) The Financial VeHnutnumiuiNnwiiiiBuiiHiHininai Guidelines NxiiiuiniHnMiniiHiBi Can anything be done in Canada to check the growth of inflation, while inflationary pressures continue in the United States and. while governments in Canada keep their demands for goods and A good many Canadians would say that Canada cannot isolate itself from U.S. fi it can limit inflation's nc -i' As for government spending, it grows in response to expectation i of an.

ever greater degree of social services. The task of finding ways to cope with the problem of in- flation in Canada '(where 'wholesale prices and manufacturing wages since 1958 have risen VA per cent more than in the Unite States; and I consumer prices three per wm by the federal government to a prices and Incomes commission, and a standing par-, liamentary committee oil price stability, Income and -employment u. 'i if Announcement of the plan! to create the two, bodies, u.uuw oia cut met. with some scepticism. -For one thing, the Economic Oilim.ll nf CanaAa onnliaA itseu fairly intensively to the Question of inflation, anions problems, jn its annual reviews.

But Professor E. P. Nue. feld, of the University of To- ronto's department of politi cal, economy, does not see any redundancy. The prices and Incomes commission could fulfil its tasks properly only if it deliberated within! the context of a detailed an- -alysis of short-term economic conditions, he says' in an article in the January-February issue, of The Canadian i Economic Council is" precluded from engaging In such short-term analysis, and I believe chooses to be pre-eluded from it rrT Prof.

1 Nuefeld expresses vuiiwiii iiiai oil commission on price and in- comes xai too removed from policy decision-making processes to be effective in having its recommendations implemented. "Th'S is a danger that should explicitly be recognised at the beginning so that it can to some extent be overcome by the commission's developing appropriate line of communication. In time such lines might Include rendering independent opinion to conciliation to rate-fixing bodies, and to governments, as well as to labor and management groups and the public." He concede that the prospect is that, business, labor and professional economist will extend at best a lukewarm tolerance to. the commission's developing with heavy emphasis on waiting and seeing. i Vincent fganniwun But Prof.

Nuefeld notes that there js little reason to be content with the achieve-- ments of those responsible for maintaining healthy eco-, -nomic conditions. Consumer i i. prices rose by four per cent last year, -and unemployment averaged about five per cent of the labor force. Suspicion is therefore grow- ing that old ways of dealing with, economic problems are not There is no-eon- sensus. among policy makers, -ecdnomists, businessmen and union leaders as to why Can- ada has had xcessive inflationary pressures ara time i i when it been -able to sus- tain 'only a lacklustre unemployment record." His Give the 'Commission responsibility for analyzing details of price and SnglasXiave ft uS information to cost development on a.

con- make fmthrlriit nolirv recommendations includ ng some frankly experimental i approaches the commission is timid In 'its policy "recommendations It will com promise its Dis- seminate its, and rpMmmMuliilinn, mtiAtAi mnA should' now be re- -membered -is, simply, that-Canada' does have an' oHinemployment''. problem; 1 uuiimuio: iu uns area is a measure of the -failure so far of professional, economists' and policy- makers to, chart acceptable MilircitQ1 thnf -it i VUUI5C3, -OI1U U1HI IS Ull-- thinkable that Such performances will be regarded as: adequate in the future." 35 Per Cent Use Electric Razors NEW YORK (UPI) More' than 35 percent of the 60 'million American males oyer IS years of age use tiectdc; havers regularly, industry spokesman reports. This represent a gain of Ave per cent In the past three years. -Richard Q. Kress, viceresi- dent of North American Phil- 'P Company, Inc, marketer of shavers (Norelco), says electric shaver industry tales In 1967, totaled more than $165 miHion.

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