'We'll Get By'

Canadians must get along with fewer U.S. automobiles, washing machines, radios, refrigerators and Florida vacations. To bring its dollar trade into balance, the Dominion Government is going to cut imports from the U.S., even though it means lowering the Canadian standard of living. In seven months (January-July) Canada bought $573 million more from the U.S. than she sold there. At that rate the deficit would be almost $1 billion by year's end.

The Government had studied every alternative before concluding that import restrictions were inescapable. British Foreign Secretary Bevin's idea of an Empire customs union was quickly rejected, for it would force Canada into the sterling bloc. Some Canadians suggested economic union with the U.S.--razing tariff walls and eventually tearing down the customs houses. This was politically impossible; in 1911 Sir Wilfrid Laurier's government was tossed out for proposing a milder trade reciprocity. Besides, economic union would almost certainly lead to political union.

There was still plenty of unofficial talk last week about devaluing Canada's dollar to boost exports and curb imports, but it seemed to be only talk. Few in the Government saw devaluation as a cure for the disease. A $500 million "psychological" loan from the U.S. (TIME, Aug. 25) also seemed less attractive now; it would be hard to justify, hard to get.

Privately, top-flight officials admitted that restricting imports would be a form of economic nationalism and a bar to the freer, multilateral trade that Canada seeks for the long haul. "It's shocking--horrible," said one, "but we're doing it only as a last resort and we're going to make it as temporary as we can. Meanwhile, we aren't headed for anything like British austerity. We'll cut down, but we'll still get by and have a good time."

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