AbstractsEconomics

The crux is that hitherto there has been neither plan nor policy in Canadian international trade and transactions. A consideration of thedomestic scene and long-term views have been signally lacking. If anything is being pointed out, it is that not just an adjustment of thebalance-of-payments is desired, but one that is accomplished without strain or hindrance on economic prosperity and progress. The story of thebalance-of-payments shows that in the early period a heavy foreign debt was piled up. It was assumed that the automatic functioning of theeconomic system would enable this to be borne without strain, (or the matter was neglected altogether). Such has not been the case. Thefluctuating nature of the Canadian economy and the vulnerability of the Canadian export trade to external price and market disturbancesmake this debt and its service charges singularly burdensome. Flexibility and easy adjustment are prime objectives in balance-of paymentsoperations. Obviously, a simple solution cannot be expected. A planning authority can hope to mitigate this by seeking to introduce a measureof stability and internal economic adjustment.