Whatever may be regarded as the immediate motives which impelled the Price Spreads investigation it will be generally agreed that a careful examination of the Canadian economy as a whole is long overdue, and that present conditions and current trends require the formulation of intelligent and co-ordinated economic policies. We are now in the sixth year of a major industrial depression and, while there has been a substantial measure of recovery from the low points of 1933, there is no clear indication of continued improvement and there is at least a possibility of the crumbling of the statistical ledge to which we have been rather precariously and nervously clinging for the past twelve months. Canada, with its large measure of dependence on the exports of two or three staple products, has always been in a vulnerable position, but this has been greatly accentuated by the widespread trend towards economic nationalism and self-sufficiency. Our professional optimists to the contrary, Canada has been one of the heaviest sufferers during the past five years and the outlook for the future is still uncertain and still threatening.

It is not necessary to elaborate the familiar problems of the Canadian economy: an income that fluctuates violently with the volume and value of our exports, and expenses that are made highly rigid by the dominating factors of heavy overhead costs; the wide differences in the technological problems of the several major industries; the concentration of staple industries in specialized geographical areas and the growing political and cultural domination of metropolitan centres which accentuate political and economic sectionalism, and at the same time a high degree of concentration of the control of finance, commerce, and manufacturing on a national scale—a concentration to which it is difficult to apply social regulation and control within the present framework of the British North America Act.