AbstractsEconomics

Canada is still a young country with a comparatively small population of about eleven millions scattered over a very large territory of 3,690,043 square miles. This is approximately three persons per square mile. Spread over this large area, natural resources of many different kinds are to be found and it is upon this abundant wealth that Canada's economy is based. For, the exploitation of these resources has led to the output of commodities of many kinds and far in excess of the consuming power of the existing population. This excess production has to be disposed of, and therefore, Canada has had to find markets abroad for a considerable proportion of her production. This is a condition common to all young and growing countries which are in the process of development. Peoples engaged in the exploitation of natural resources must concentrate on the production of foodstuffs and raw materials and only the early stages of manufacture. The production of highly manufactured goods is of necessity postponed for a later period of development. Hence, during a country's youth these latter must be imported and their cost, as well as the interest and dividend charges on foreign borrowing, must be met largely by an export trade which necessarily must be in quite a large proportion. [...]