The literature on the relationship between Keynesian and classical economics lays almost exclusive emphasis on monetary phenomena; relatively little attention is paid to technological relationships, although an understanding of the precise nature of the production function assumed in each system is clearly of relevance. In particular, the assumption of variable proportions between inputs is crucial to Keynes' approach, and it is usually taken to be an assumption of classical writers too. At times, it is recognized that the classics denied the possibility of obtaining additional output by increasing the quantity of labour used with other (given) inputs, but rarely is this seen as important. The customary interpretation possibly derives, in part, from the fact that the classics made use of the wages fund theory whereby full employment of labour is assured; attention is diverted, by this theory, from technological capital to wage-goods capital, and it becomes easy to jump to the conclusion that output in the classical system can be regarded as a simple function of the quantity of labour employed.

In this paper I shall argue that in fact considerable attention was given to the assumption of fixed coefficients of production in classical economic literature (Section I). It will be necessary to show how this assumption could reasonably be maintained by writers who, at the same time, advocated the wages fund theory (Section II). In concluding the paper, I shall suggest a possible implication of the classical authors' approach to technology for their macro-economic policy, in particular for their tendency to minimize the significance of aggregate demand as a determinant of aggregate output (Section III).

The Polish left-wing Catholics, who are to be dealt with in this paper, are not the confessed fellow-travellers, who were at the height of their influence during the Stalinist period. They are rather the members of the “Znak” parliamentary group and others associated with the Catholic weekly, Tygodnik Powszechny, which comes close to being the mouthpiece of the Polish Primate, Cardinal Wyszyński. The left-wing Catholics to be considered, therefore, have been dependent for their activities on the comparatively tolerant attitude of Polish Communist leadership. So it will be logical and convenient to deal with the liberal Marxists first.

Rosa Luxemburg, the greatest intellectual leader that the Polish Marxist movement has so far produced, was murdered in 1919. Yet she was so typical of Polish Communism, and she exerted so great an influence on the character that it has assumed, that a brief reference to her will be made by way of introduction. She was an outstanding revolutionary and a great woman, combining such varied qualities as physical and mental courage, great energy and powers of endurance, and unusual oratorical gifts, with more characteristically feminine attributes, such as a deep sensitivity and love of beauty in all its forms. She could stand up to Lenin when she differed from him, but she commanded his respect. However, what concerns us most here is that her deep Marxist convictions were tempered by liberal elements characteristic of what would now be called Western democracy.

It is generally known that John Stuart Mill spent his working career in the service of the East India Company, but very little has been written about him in this capacity. As an administrative official of the company, the home government of India, John Mill's activities have been greatly overshadowed by the influence exerted upon Indian policies by his father, James Mill, historian of British India and a member of the Examiner's Office of the Company from 1819 until his death in 1836. Like his father, John Stuart recognized the company's government of India for what it actually was—a despotism of an alien race, which, despite the good accomplished by it in the last decades of its existence, was established by conquest, treaty, and annexation. And yet, he spent almost half of his life as an official of this establishment, drafting dispatches to the India government, and, in defence of the company's rule against extinction by Parliament, wrote what Lord Grey described as the ablest state paper he had ever read.

How did John Mill, the great exponent of nineteenth century liberalism, reconcile his employment as an official of a despotic government with his espousal of the principles of civil and political freedom? How, in other words, did he reconcile this freedom with colonialism? What conceptions did he entertain concerning: (1) the place of India in the history of civilization; and (2) its eventual emergence from British rule as an industrially transformed self-governing nation? These questions, arising out of Mill's career with the East India Company, have not been discussed in any of the numerous treatises on the great man. In considering them here we hope to fill this gap in the literature. Other questions, such as Mill's administrative skills and his influence upon the company's policies, cannot be taken up in this paper. The author does not share the view that Mill's influence at India House was insignificant. He is inclined to a moderate version of Henry Fawcett's opinion that all the important principles for governing the great dependency of India were laid down by Mill in the documents he drafted for the East India Company.

The external value of the Canadian dollar was remarkably stable during most of the recently ended regime of the flexible exchange rate. Short-term capital movements which tended to offset net shortages or surpluses of foreign currency arising from other transactions made an important contribution to this stability. This paper is an investigation of the causes of those generally stabilizing short-term capital movements.

Each of seven categories of short-term capital movements is considered, some categories being components of others. The seven categories, taken from the international accounts published by the Dominion Bureau of Statistics, are as follows. An arbitrary short name for each is given in brackets.

1. 1. (Total private). The sum of the three following items, consisting of capital movements of a short-term nature not carried out by the Canadian government or central bank.

2. 2. (Bonds). Net trade between Canada and other countries in outstanding Canadian bonds and debentures.

3. 3. (Canadian dollars). The change in foreigners' holdings of Canadian dollars.

4. 4. (Other). Other capital movements, adjusted. This is the balancing item D17 in the official Canadian international accounts, adjusted to remove a variety of irrelevant transactions.

5. 5. (US dollars). The change in Canadian holdings of bank balances and other short-term funds abroad, excluding the official reserves. It consists largely of US dollar assets. It is one component of “Other” above.

6. 6. (Commercial credits). This is the remainder of “Other” above, and consists of all other non-government transactions including changes in loans and accounts receivable and payable.

7. 7. (Official). The change in the official reserves of gold and foreign exchange.

“Political science,” as the term is understood in Canada and the United States, is still not recognized in the USSR as a distinct academic discipline. Although the phrase “Soviet political sciences(s)” has been occasionally used in Soviet literature of recent years, and though in 1960 a “Soviet Association of Political (State) Sciences” was formed, the Academy of Sciences and the institutions of higher learning in the USSR continue to view “political science” as a somewhat alien concept, ideologically ambiguous and academically suspect.

The Ontario election of June 4, 1945, will likely be remembered by historians as the “Gestapo election.” For it was in that election that Edward B. Jolliffe, leader of the official CCF opposition in the legislature, made the remarkable accusation that Premier George Drew was “maintaining in Ontario … a secret political police, a paid government spy organization, a Gestapo to try and keep himself in power.” A provincial Royal Commission was named to investigate Jolliffe's charges. Unfortunately, however, it has been impossible to locate a complete transcript of the Commission's proceedings. It is the purpose of this paper to assess, using the material that is available, the validity of the CCF leader's spectacular accusations.

Most observers agreed that Drew's minority Conservative administration would be re-elected in 1945. Yet the CCF was still considered a serious contender. The CCF's opponents certainly did not discount its challenge. Anti-socialist politicians and professional propagandists alike played heavily on the theme that a CCF government would impose a dictatorship on the citizens of Ontario. The CCF's campaign, in contrast, was relatively undramatic initially. Its propaganda centred primarily upon its uncomplicated “Five Star Programme For Ontario,” the five stars representing security on the job, for the farm, the home, health, and nation.