As time goes on the full scope of the National Socialist movement in Germany becomes apparent to the outside world. The abolition of democratic institutions and the assumption of supreme power by the Führer were not surprising in principle to observers in foreign countries, though they were startling to many in their completeness and ferocity. Similarly, we were more or less prepared for the withdrawal from the League of Nations, and the changes in foreign policy associated with it. But I do not think it was generally expected that the movement would include a reform of education, not in such matters as methods of teaching but in regard to the content of the subjects taught. To those who are accustomed to regard the truth or falsity of the subject-matter of education as independent of the political character of the government this comes as something of a shock. A remarkable series of pamphlets under the general title Der Deutsche Staat der Gegenwart deals with some of these “reforms”, particularly as applied to the subjects of law and economics. Volume XV of the series is entitled Das Studium der Wirtschaftswissenschaft and describes the new curriculum of economic studies. It gives the new curriculum itself, in some detail, and contains, as well, addresses by Professors Dr. Eckhart, Gottl-Ottlilienfeld, and Wiskemann which reveal, sometimes as through a glass darkly, the ideas underlying the “reform”.

The purpose of observation is to discover laws. The word “law” I use in Hegel's sense of a generalization, a determination of categories, which enables experience to be classified and rationally interpreted. We can never arrive at a complete knowledge of laws in this sense. If we could, the future would be known to us with as much certainty as the past. Hegel said that forecasting is not the province of the philosopher, and some of his own attempts in that direction, such as the subjugation of Asia by Europe and a monarchy for the United States, do not appear fortunate. The difficulties, however, are two: that laws are not truly or completely known; and that experience is not assigned to the proper categories. These conceptions, however, point the way. It would seem that economics has as much need as any other branch of knowledge for seeking laws in this sense. Although its steps may be faltering, they will be in the right direction if truth is sought by observation conceived as a quest for the laws which experience obeys.

I propose in this paper to present a short attempt along these lines, my data being taken from Canadian and United States economic statistics since the War. The following, therefore, is intended primarily as an illustration of method. It is hoped, however, that the conceptions which will emerge are also worth notice for their own sakes.

In this article an attempt is made to present in summary form a description of the impact of drought and depression on Saskatchewan. Important problems of public policy and difficult problems of economic analysis arise in the course of the description, but a full treatment of these problems has been postponed. It seemed that the intelligent discussion of national problems could best be promoted at the present time by making available an account of the facts relating to this one province.

The slowness of the industrial recovery is gradually disclosing unmanageable situations in public finance. From the standpoint of public debt, countries engaged in the export of staples fall into three classes: (1) those where widespread default occurred in 1931 or 1932 on both public and private debt and where little or no resumption of debt service has occurred, such as most of the South American republics; (2) those where a critical position appeared early in the depression, followed by collective adjustment of internal debts and measures designed to maintain the level of prices, such as Australia and New Zealand; and (3) those where little or no public default or manipulation of debts, foreign exchange, or price levels has hitherto occurred, such as the Union of South Africa and Canada. Newfoundland occupies a curious position, more like that of European countries, having undergone a political as well as a financial reorganization. The Argentine occupies a position intermediate between groups (1) and (2).

It is the purpose of this article to do for the evidence presented to the Royal Commission to Inquire into Railways and Transportation in Canada, 1931-32, what Mr. Plumptre did in a preceding number for the Canadian Macmillan Commission. In this case the need is even greater. To the writer's knowledge the only copy of these Proceedings which is available to the general public is the one in the Parliamentary Library in Ottawa. The current press affords only a fitful light upon the evidence; and from some of the hearings it was excluded altogether. If, therefore, any part of this material is to be made generally available, it must be through some such report as is here attempted. The difficulties in the way of condensation are clear to anyone who has attempted it; and in this case some 2136 pages, a large part of it closely argued, must be reduced to some 12 to 15 pages.