The latest sufferer is Canada. It is true that she
has brought on most of her troubles herself by pursuing a foolish financial and economic policy for many years. She over-borrowed from the United States to speed up the development of her rich minerals and oil, most of which are now owned by Americans and in over-supply!. Her balance of payments deficit is far bigger than any sane government should ever have allowed. Her currency, already 11 per cent. de- valued, is still suspect. So Mr. Diefenbaker an- nounces an austerity programme—a 6 per cent. Bank rate, higher tariffs, cuts in government spending (to save about $450 million in a full year) and overseas borrowings of $1,050 million (almost doubling her inadequate reserves of $1,100 million). The new tariffs comprise a graduated surcharge on classes of goods which will hit British exporters; for example, the 15 per cent. surcharge on whisky and spirits, guns and rifles, jewellery, silver, luxury foods, fancy
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