The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

The cabinet was faced with being forced to act and act at once to permit some apprecia- tion of the market rate of ex- change in order to prevent the situation getting completely out of hand. The government could have decided to revise the value of the Canadian dollar upward three or four cents from its pegged price of 92.5 cents in terms of US. currency. That was considered by the cabinet at the Saturday meeting May 30, and rejected as no solution. If the trend had been allowed to continue Canada’s official re- serves would hare risen rapidly to levels far in excess of Can- ada‘s needs. Large-scale specu- lative buying of Canadian dol- lars would have been encour- aged with disruptive effects upon the international payments system and with large windfall profits for speculators. The New Democratic Party has for many months been urg- ing the government to place *he Canadian dollar on a "floating" basis. that is to loose-n it from its peg and allow it to float to find its own rate of value in terms of US. Each time the NDP spokesmen have put for- STOUFFVILLE: If no formula to reduce the financial burden on residential property owners due to reassessment is worked out by June 25, village council intends 'to extend the due date (now July I) for the first instal- ment of 1970 taxes. ward this idea, Finance Minister Benson or some other federal government member has batted it down as an unworkable and unthinkable suggestion. One of the great arguments against the floating rate of ex- change is that it means export ers and importers really do not know for certain what prices they can expect to receive or have to pay because the value of the Canadian dollar could be fluctuating. It also means :hat Canadian exports go up in price. because the Canadian dollar is bound to increase be- yond its former pegged price of 92.5 cents US. That means Canadian exports increase in cost and are much less compe- The accumulation of these large reserves in 1970 has great- ly increased the cash require- ments of the government of Canada. Its cash balances haVe been substantially reduced and an additional $250 million has been acquired by the sale of a special issue of treasury bills in order to provide additional re- sources to the exchange fund. In the first quarter the re- serves rose by U.S. $367 million excluding the allocation of $124.3 million of special draw- ing rights on January 1, 1970. In April they rose by $225 mil- lion. In May the official re- serves rose by $262 million and in addition, as a result of swaps and forward transactions. $360 million had been acquired for future delivery for a total in- crease 01 $622 million in one month. He found Canada was facing a crisis. The Canadian dollar has extremely strong in the ex- change market since the start of 1970. The overall official serve position rose during the past five months by more than US. $1,200 million, not includ- Lug the allocation of special drawing rights. The reserves have been increasing at an ac- celerating rate. PINDER BROS. [TD Prime Minister Pierre Tru- deau returned to Ottawa from his Pacific tour late May 29. He summoned his cabinet into special session Saturday after being briefed on devolepments that had taken place during his absence from the country. tour- ing Asiatic countries. STEEL LINTELS l BEAMS It appears to be lurching from crisis to crisis. The sudden. surprise dis- closure Sunday May 31, by Fin- ance Minister Edgar Benson that the government had deci- ded to free the Canadian dollar and let it float. finding its own level in the international mar- kets, was reminiscent of the manner in which the former Liberal government acted or re- acted. More than once members of Pearson’s Cabinet had to summon the press and make an- nouncements that f o l 1 o w e (1 quick emergency decisions by his cabinet. The Trudeau Government is beginning to take on more and more asppcts of the former Pearson Administration. ' Kept in Stock Portable Crane Service STEEL FABRICATING To Custom Specifications 2 Otonobee BA. 1-3344 MacDUFF OTTAWA REPORT £15 'to extend tl JULY 1) for the of 1970 taxes. [arching From Crisis To Crisis titive on world markets. dian economy has strengthenedi Canada is a trading nation Exports have steadily increased‘ and must keep its exports com- and exporters and importers petitive on the world markets. have had a stable dollar with Since the Canadian dollar was which to do business. pegged low in 1962 the Cana- Setting the Canadian dollar E. am pr; mm at em 05 nd um Ir. ,;0 0..» 0A . Sex Spear and Jackson. A cut above the rest in price and value! Teflon®-S coated blade with hand set fleam teeth. Quality terry-cloth in vibrant colors â€"â€" go great for swimming and sun- ning at the beach or pool-side. 30 x 60”; fringed top and bottom. Assorted patterns. Save! HARD POINT 22" Saw SPECIAL thLlAl. PURCHASE! Beach Towels A versatile tool for the handyman! 1 slot, 1 Phil- lips-type, 2 Robertson-type bits, 1 awI. Hollow plastic handle for storage. SPECIAL! 5-in-1 Screwdriver The cabinet also recognized that in freeing the dollar it was breaking it International Moneâ€" free to bounce around in value until it finds its proper value in terms of US. could have severe consequences for the economy. The government was aware of this and consequently promised that this was only a temporary move. EACH Self-adhesive vinyl in rich, wood-grain pattern. 3" 3f. Re;.84t¢ ‘66 3"x 6 ft. .99 6”x 6V2 ft. L77 REDUCED! PRESS-ON Walnut Trim Special! 45" Wading Poul Wonderful splash~about spot for kiddies on hot summer days. Strong, molded plastic with attractive ripple design â€" can be sunk into the ground as a permanent pool. Doubles as a sandbox too! CANADIAN TIRE Apply for a Credit Card Today HOWever Mr. Benson refused to indicate when the govern- ment would return a “pegged” rate for the Canadian dollar. Nor would he hazard a guess tary Fund agreement. I‘tnotifie-difor reporters at What rate he the IMF of its intentions a few;expected the dollar would reach hours in advance of the anâ€"land remain fairly settled after nouncement. The IMF nations the initial fluctuations after it were not happy with Canada’siwas set free to “float”. decision. 1 Two days after the announce- Cash BONUS COUPONS Stamped chrome-plated steel in elegant and modern styling. At Sun Fun Sale specially reduced prices! A. 3/8” INSET DOOR HINGES â€" Pair Reg. 326' .27 B. 4" PLAIN DRAWER PULLâ€"Each Reg. 23c .19 C. 11/2” CONCAVE DOOR KNOB â€"â€" Reg. 211; J7 2” CONCAVE DOOR KNOB -â€"- Reg. 24¢ .19 D. HEAVY-DUTY MAGNET CATCH Reg. 191* .l5 Save! Cabinet Hardware EXTRA! Canadlan officxals breathed a little easier. They had been Two days after the announce- ment it had moved up on inner- national exchange markets to 97.5 cents in US. funds. .69 fearful that it might reach par asked in the commons if he wasris sup with the Yankee dollar. That considering setting the dollar as the would create an awkward situa- to float on the international (ion 51 non. markets. He replied embhaticalâ€" "hm It was clear the cabinet had ly in the negative. Later he ex- been pushed into the “floating” plained that cabinet had made decision by developments. It no decision at that time, only was not a “planned-in-advance" reaching the decision after Mr. decision. As a matter of fact Trudeau returned to Canada. three days before it was taken So much for the much pub- in. the cabinet Mr. Benson was licized long~range planning that THE LIBERAL, Richmond Hill, Ontario, Thursday. Here's a Sun Fun Buy for light-as-air lazing on the lake, or basking on the beach. Rugged vinyl construction, 5-tube design. 30 x 72” long; colorful design. Limited quantity only. .27 .l9 .17 I9 .15 Special! Air Mattress White hi-impact plastic. (Glue and screws included). A. SOAP DISH -â€" Easy to mount, Reg. 75¢ ......... .59 B. TISSUE HOLDER â€" Reg. 75¢ ........................ .59 C. TOWEL BAR SETâ€"Includes brackets, 12” bar .59 18".. .Reg. 85¢ ....... .69 24"....Reg. 95¢ ..... .79 D. TUMBLER/TOOTHBRUSH HOLDER â€"â€" Holds 6 brushes ............. , .................................. .5 9 E. ROBE HOOK â€"- Card of 2. Reg. 55¢ ............. .49 70 Yonge Street North, Richmond Hill 884-1196 Modern Bathroom Fittings Fl 5 5 ’U E I,an T E f 35560 in the commons If he wasfis supposed to be taking place considering setting the dollar as the new Trudeau administra- to float on the international tion steers its course toward the markets. He replied emphatical- “just society". The decision to ly in the negative. Later be ex- set the dollar free could have plained that cabinet had made strong and unforeseen effects on no decision at that time, only the economy. The government’s reaching the decision after Mr. experts were “flying by the seat Trudeau returned to Canada. of their pants“ scoffed Opposi- So much for the much pub- tion Leader Robert Stanfield licized long~range planning that and he was right. ,y, June 13, 1970 9'