THE WAR AND FINANCE 



11 The Economic aspects of the War are those on which the outcome 

 largely hinges." 



FROM THE BUDGET 



SIR THOMAS WHITE, Minister of Finance. 



Canada's Trade — We have been blessed with a most bountiful harvest, the 

 greatest by far in the history of the Dominion, and this, coupled with the demand 

 for war material, supplies and munitions, has given such stimulation and impetus to 

 trade and industry that, notwithstanding the war, we are experiencing a high degree 

 of prosperity. 



Probably the outstanding feature of our national economy during the year has 

 been the extraordinary change that has taken place in our international trade balance. 

 For the fiscal year 1912-13, it was adverse to the extent of over $300,000,000; in 1913-14 

 of $180,000,000; and in 1914-15 of $36,000,000. For the present fiscal year it seems 

 certain that we shall have a favourable trade balance in the neighbourhood of $200,- 

 000,000. That so great a change should have been effected in one year is a striking 

 tribute to the marvellous productivity of the Dominion, and to the capability, industry, 

 and thrift of our people. Our total trade for the year will aggregate approximately 

 $1,200,000,000, an increase of nearly $200,000,000 in exports, and a slight reduction in 

 imports. This is the largest aggregate trade in the history of the Dominion. 



Production — From this viewpoint it is our true policy to augment our financial 

 strength by multiplying our productive exertions, and by exercising a rigid economy 

 that will reduce to the minimum all expenditures upon luxuries and non-essentials. 

 Only in this way shall we be able to make good the loss caused by the withdrawal of so 

 many of our workers from industrial activities, repair the wastage of the war, and find 

 the funds for its continuance. It cannot be too frequently or too earnestly impressed 

 upon our people that the heaviest burdens of the conflict still lie before us, and that 

 industry and thrift are, for those who remain at home, supreme patriotic duties. 

 Upon their faithful fulfilment our success and consequently our national safety may 

 ultimately depend. Apart altogether from these higher grounds, it should be pointed 

 out that, in-so-far as our present prosperity is based upon abnormal prices for our 

 produce and upon the production of war material, it is precarious and transient, and 

 dependent upon the continuance of the war and its conditions. On ordinary business 

 grounds alone, the prudent husbanding of resources, and the wise conservation of 

 profits, are dictated by the plainest considerations of practical wisdom and good sense. 



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