Gold stages comeback

The price of gold has staged a strong comeback in this still-young year, rising from a brief dip under the US$130-per-oz. mark in mid-January to an afternoon fix of US$139.15 per oz. early in the month of February.

This is just a shade under the previous high of US$138.85 per oz. in mid-November 1976. Beyond that, we have to go back to the first few days of 1976 for higher price levels.

As usual, the reasons for the current strength are many and varied. Overriding everything else, President Carter himself has admitted that the U.S. economy is stagnating, with both inflation and unemployment too high while economic activity is too low.

Enough work for all

One of the most serious problems plaguing this country in the mid-1970s is unemployment at a time when the emergence of the new nations and the increasing affluence of the old ones could provide a rich-enough market to employ everybody.

Another serious problem is the increasing proliferation of strikes, and the damage they are known to cause.

Amazingly, while one worker is unemployed, another refuses to work unless certain financial or other conditions are met by his employer.

There seems to be no relation between lack of employment opportunities and the number of strikes, for, in the unionized economy, apparently each little economic unit — be it one worker or a group belonging to a union local — fends for itself separately.

Lvesque election raises questions

With the election of the Parti Qubcois in Quebec and Ren Lvesque as premier, the battle is joined between those who are determined to split Canada by making Quebec an independent sovereign state and those who favour keeping the country united, i.e. maintaining the confederation, which has been known and enjoyed for more than 100 years.

The battle is joined because Mr. Lvesque has never disguised his aspiration to secede from Canada. He is an intelligent, eloquent and passionate man. His doctrine of secession of the province of Quebec from the rest of Canada has fallen on many willing and receptive ears, especially among the young French-speaking activists of rural and urban Quebec.

In principle (though not in detail), he made clear his aspirations and determination when he spoke to the Economic Club of New York, an influential and elite society of financial Americans. Mr. Lvesque made no attempt to disguise his intentions. He wished to assure U.S. financial sources that Quebec, after separation from Canada, would be a safe a profitable place for American investment.

Inco reaches $2b in sales

In a preliminary report, Inco shows estimated earnings of US$196.8 million (or $2.64 per share) on sales of US$2 billion for the year ended Dec. 31, 1976, versus a net of US$186.9 million (US$2.51 per share) on sales of US$1.7 billion in the previous year.

Unaudited net earnings for the fourth quarter of 1976 were US$60.9 million (US82 per share) on sales of US$578 million, versus US$35.7 million (US48 per share) on sales of US$444 million for the fourth quarter of 1975.

ESB Inc., the giant battery subsidiary, contributed US$598 million to sales for the past 12 months, compared with US$497 million in 1975.