WASHINGTON, Jan. 8: apanese pian ior suojecuon n nrevent or delay juncture . a m . s. io una enu, pan oi . I .III' m.Ai ii.i n l. l l ti-tr II 11- llll 'llltlllfl Li V I 14 IV I I I I VI f WORKLESS INSURANCE I!-..- M AAA f Now to Be Included. OTTAWA, Jan. 8: 0 Cana- lai: earning aim icas ac- bam will come under provisions I cae Unemployment Insurance ifcci by virtue 01 a government or der soon to be issued, 11 was learn- or high authority today. Up '.me present only those earning 2,000 or less have come under employment Insurance provl- ttons. EFENDING AIRDROMES Itritish to Prevent Bases Fall ing: Into Hands of Enemy LONDON, Jan. 8: P An off!-. cnrtVnm!)n annAiinrpri rnilav hat a corps of airdrome defence tuops under control of the Air iouncl) will be formed to defend rdromes against invaders of zh territory to prevent repi- r.T. or the Crete invasion. e decision is understood to been reached in response to I I U. 1 I 1 t! niaiiii lit 1 i A. - U IVUJ m bases in Norway, France, British spokesman said today . I Irll I II a f L III lLa 111 linil 1U) U Ionian Caught Workers Napping M V IN IHIP irili I .UIUIIIUIIS Ui 11 CI Tour In Disguise Through Airplane Plant inihin .inn r : hpj uresspa as vorker Mrs. Mavis Tate, Conser- tlvn TJ frr Ii'pnmn cllnrwrt an aircraft factory to check I she "put on some shabby . . , , . . : 1 1 1 J I J L i luiew li i went hi us an .. I would not get a true picture I dressed up, passed six sentries fine n rinhnfa nn mannrnrpr "First of all I saw men sleeping a shed. They went to work in f mnrn nff onn nan t n wnpp iiir. few airplanes. They wheeled I'm in niram or nnrni in inp ria vii innv. run, ann hp v niii.rimir. saw large luxury coaches which i' i rum i - mime auruv i ri r mri drove the .coaches were carn- orning and drove them back: at t'ht Tn 4nn tnlrlnMo rf tHn Ho v v i nnv i nnmcfl vpc in t no rna n n t-- me canicen, nan a mne away. W e i m s arrived yesterday ii i ii rr nn inn nrinrn i iPririri' m innnniiirAH rr ciipnnoi i inn Mclvor, resigned, as a member the staff of Booth Memorial Philippine War Report WASHINGTON, Jan. 8: 0)- . 1 1 i U III I 11 - JtHiifV . today to be still fighting dog- null :i 1 1 ncpn i r IT WASHINGTON VIEW V Tomorrow sT ides OF JAPANESE PLM& we High .. .. 18:07 5:54 ajn. p.m. 17.1 19.2 ft. ft. (AP)-The nattern of th. oi tne rar East has become of the comhinprf-flanfc f " Wk v. VI IV meir operations, aim at n-p. III .XI iiuw in T I nnr ma i. ; cation while their major thrusts seek the capture of the enemy shore establishments at Singapore and Manila. The sortie that established a beach head at Miri in Sarawak adjoining British north Eorneo 13 typical. The line from Indo-China -held by Japan to Borneo constitutes the walsf of the South China Sea. Control of both sides of the waltt, gives Japan bases for a shuttle relay of planes and submarines over waters which are the most direct route to effect a Juncture tnd strengthening of the British, American and Dutch Asiatic fleets. In effect, it erects a toll-gate between the two great bases of Manila and Singapore, an J the Allied commanders can expect to pay a heavier price in lost craft because of the thrust at Borneo. There is some evidence also that Japan contemplates erecting another plane-sub fence from North Borneo across the 1,200-mile stretch to the Japanese base on Patau, thus harassing an attempt at Juncture via the more circuitous route. Land Attacks. At the same time, the Japanese arc smashing at the shore points on which Allied fleets depend. The two major bases, of course, are Manila and Singapore, and both are objects of great Japanese offensives, The land attacks that nullified Penang and Hon? Kong are examples of the attacks against subsidiary' strong points. Manila and Singapore are primary objectives for dlffernt reasons. Manila menaces the long; supply line Japan must keep open to supply her forces in the southern theatre. Squarely athwart the flank of that lifeline, Manila can send out sub-seas, surface and air raiders to bedevil Japanese convoya. United States subs al-ready have taken toll of the line. Until Manila is completely knocked' out,1 no Japanese commander can 'Test easily with his communications under constant threat. So far, General MacAr- thur's Philippine, command has brilliantly resisted complete domination of the Manila area. So long as that holds, the rest of the Philippines can be lost but the flank, threat to Japan's southern ambitions will remain. Strategic Singapore Singapore guards against Japan's ultimate goal seizure of the rich Netherlands Indies and Malaya. If it falls, there's little to preyed Japan from Investing Sumatra and other fat islands of the group. So the picture takes shape, wlih Japan thrusting for bases to anchor fences to impede Juncture of the Allied fleet units. Then, without exposing her grand fleet, it's obviousj she hopes to whittle down the separated and weaker fleets with planes and subs, while her land armies Invest the strong points. Seizure of the key bases would put the Allies at a grave disadvantage, Their main battle fleets would find it almost impossibb to operate in the area, without either Singapore or Manila. Happily, the defenders have given evidence that they have a better than even chance of keeping the Japs out ci the vital zones. Must Be Fast If the bases hold, it's only a question of time until the heavy Allied fleet units come up. With the backing of the bases, they can ultimately raise hob with tne Jap anese supply line. When that time comes, Japan must risk her grand fleet to keep the line open and that's me rrlomcnt some grim-faced sailor-men are living their lives for right now in the Pacific. Japan has got to laice iwe. bases quickly, Keep me ini"-" Asiatic fleets separated and consolidate the area before her grand fleet can be outgunned by Allied reinforcements coming up, or her South Seas gamble is a bust. The odds were all against it irom tne start, despite Its careful planning and surprise offensive. Tliey grow greater day by day. CHINA IN U.S. There's a China in Maine and another town of that namD In Texas. . HL'Xi I VOL. XXXI, NO. 6. ATLANTIC ICE ON CANADIAN t Germany &VLOUV.OO i a9PW- - Jnfor- rriatlon received here tells of Internal discontent and up- risings against the Hitler re- gime in Germany. Machine guns have been mounted by the Nazi authorities In Berlin and elsewhere for the express purpose of dealing with such trouble. MANY AT FUNERAL Large Gathering This Afternoon at Cathedral for Final Kites Over Late Shef Thompson. A large congregation gathered tills afternoon at the chapel of the B. C. Undertakers to attend the funeral rites for the late Shef Thompson, for years caretaker at the Prince Rupert Rowing & Yacht Club and one of the pioneer figures along the waterfronts not only of Prince Rupert but of other Pacific Coast ports. Very Rev. James B. Gibson, D.D., Dean of the Cathedral, officiated and Peter Lien presided at the organ to accompany the hymns. Interment followed in the soldiers' plot at Falrvlew Cemetery. Bugler Wil liam Ranee sounded "The Last Post." Pallbearers were Jack Prcece, J. M. Walker, G. J. Dawes, R. K. Benson, Alex McRae and H. E. Alton. Two Infants Die Suddenly Two Indian Infants about six months old one the child of Mr. and Mrs. Charles Alex- cee and the other the child of Mr. and Mrs. John Faithful were brought to the city late last night from Port Ed- ward where they had died suddenly yesterday, supposed- ly from intestinal trouble. An inquiry is being conduct- ed by Deputy Coroner A. J. Lancaster. CORVETTE Ali 1-. .- : the stormy Au, X'yTii one of Canada's corveUes turn to the job of stripping ice after a hard bout with .:.i.ir These little vessels are doings grand Job for Canada and the Empire. GERMANS RETREAT Enemy Forces Still railing Hack in Libya Under Cover of Afield. CAIRO, Jan. 8: 0' Chancellor Adolf Hitler's tattered North Af rican armies have started a new retreat on the westbound road to Tripoli, the British command an nounced today, apd British spearheads now arc operating six hundred miles from the starting point of the drive into Libya. A bulletin from British Middle East headquarters said that Axis forces which had failed to give battle at Agedabia, ninety miles south of Bengasi, are falling back under cover of a sandstorm, harried by British mobile columns. Procession For Dead Airman Is Very Impressive An Impressive procession of about fifty officers and men of the Royal Canadian Air Force last evening escorted the body of Flying Officer R. E. McLeod, who lost his life In a crash near here on Sunday afternoon, when it was removed from the chapel of the B. C. Undertakers to the railway station for shipment to deceased's home at Niagara Falls. The flag-draped casket was borne on a military truck, on it was placed accoutrement of the dead officer. A single drum beat solemnly for the slow march. Tonight the body of Sgt. H. E. Cormier will be forwarded aboard the steamer Prince Oeorge to New Westminster and there will be similar military honors. NORWAY'S rilOUD PART LONDON, Jan. 8: The Norwegian Seamen's Union reveals that there are 33,000 Norse seamen sailing under allied colors; their 700 merchant ships represent 3,500,000 tons and about 500,000 tons have been lost In the war". WAR WEARY ITALIANS LISBON, Jan. 8: Depressed by the number of men they have lost in the African and Russian campaigns, the people of Italy are becoming weary of the war, ac cording to reports reaching here, and many arrests have been made In Naples and Genoa. NORTHERN AND CENTRAL BRITISH COLUMBIA'S NEWSPAPER PRINCE "RUPERT, B.C., THURSDAY. JANUARY 8, NOT READY IN PACIFIC Although Japan Has Strongest Fleet in This Area, Churchill's Aide Is Optimistic LONDON, Jan. 8: Clement Atlee, Lord Privy Seal, .speaking; as Prime Minister Winston Churchill's deputy, told the House of Commons fiankly today that Great Britain did not have sufficient resources for complete preparation against the Japanese who, he declared, at present have the most powerful fleet in the Pacific. He said the fact that Britain's Pacific positions were less strongly garrisoned and equipped than might have been wished was not due to lack of foresight but lather because it was beyond Britain's resources to be strong; everywhere. Mr. Atlee then drew a sharp picture of Britain's utilization of her strength where it was concentrated and gave an optimistic broad view of the war. TODAY'S STOCKS (Oourtewy S. D. JohnnUm Co.) Vancouver Grand view I6V2 Bralorne 9.00 Cariboo Quartz 1.60 Hedley Mascot 33 Pend Oreille l.50 Pioneer .- 2.05 Premier .57 Privateer. - 46 Reno .13 Sheep Creek , '. 2 Oils Calmont .16 C. & E - 1.14 Home 2.53 Royal Canadian .04 Toronto Beattie 89 Central Patricia . 1.25 Consolidated Smelters 38.50 Hardrock -50 Kerr Addison ...3 .95 Little Long Lac 1.30 McLeod Cockshutt 1.62 Madsen Red Lake .". 48 McKenzie Rd Lake 96 Moneta 25 Pickle Crow - 2.26 Preston East Dome 2.86 San Antonio - 1.90 Sherritt Gordon - .90 COLD ON SKEENA RIVER KITSELAS, Jan. 8: Weather has been cold at Kltselas1 of late and the Skeena River has been covered with ice. 3942. Low MORE BORROWING ON LARGE SCALE FOR GREAT BRITAIN Review of Past Year Talks in Billions of Dollars Financial Machinery Is Standing Strain Weekly War Cost $450,000,000. LONDON, Jan. 8: (CP) Concentration of economic resources on the war effort in Great Britain reached the point in 1941 where large-scale transfers from civilian to essential trades became necessary. Extension of rationing to more foodstuffs and to clothing, "telescoping" of industry, dilution of labor, special regulations for essential factories and most re- cently the conscription of women all serve to aid war production. Total government expenditure, before the war around $90,000,000 a week, now approaches about $450,000,000; last April when the current fiscal year began it was still below $382,500,000. Between April and November more than $13,500,000,000 was spent, of which ordinary revenue covered $4,815,-000,000. In the circumstances it seems likely that the treasury will have to revise its original estimate of $18,900,000,000 total expenditure Li 1941-42 by a substantial margin a tribute to the rapid progress of defence work but revenue also is expected to yield more than the $8,100,000,000 budgeted for. 1942 Prospects There remains a need for bor rowing on a vast scale. During the second year of the war savings campaign which ended in Novem ber the "small saver" provided $2,857,000,000 for war finance. Receipts from ordinary long and medium-term loans naturally fluctuated a great deal. All loans, big and small, direct from investors and indirect from financial institutes, insurance companies, building societies, etc. together yielded more than $5,850,' 000,000 In April-November." :Twd- thirds of all expenditure not cov ered by revenue was thus not cur rently by funded issues. The floating debt increased in April-November by $2,961,000,000, mostly in the form of Treasury bills and deposit receipts placed with the banks. The Exchequer thus was able to profit from the banks' liquidity. Deposits with the nine clearing banks increased by a monthly average of approxi mately $225,000,000, and since private customers did not require larger discounts and advances, all this could be reloaned to the government. The steady expansion In bank deposits and not circulation, while reflecting the speed-up in economic activity, has caused some concern. The note circulation, be fore the war slightly above $2,- 250,000,000, was $2,700,000,000 at the end of 1940 and now is about $3,240,000,000. Increased employment, changed banking habits, larger reserve needs and higher wages and prices all contributed to the rise, but with the major part of national production directly serving the war effort, increased income and purchasing power in the face of the limited supply of civilian goods, create and "Inflationary gap" unless the surplus Is absorbed by taxation and savings. Price Advances Fortunately, prices have advanced only slightly In 1941, and the cost Is kept stable by government subsidies, mostly for food, amounting to $450,000,000 a year. Wage Increase were limited to :orrections for farm laborers, miners and others. Cheap Money Policy Further progress was made dur-1941 In the "cheap money" policy. With $22,500,000,000 new government debt since the outbreak of the war, maintenance of low Interest rates is essential and leading economists hope in this way to keep the post-war burden of war loans bearable. The cost of medium-term jjpajis remains at Wz percent, but the'. Exchequer, has been able to change oyer to' a somewhat longer type. Lower Interest expectations for long-term issues are reflected by higher Stock Exchange quotations for fixed-Interest and more recently also for industrial securities. No major change in financial policy occurred during 1941, but the machinery stood up well to the' Increasing strain. Prices have 12:09p.m. 7.8 ft, PRICE: FIVE CENTS But R.A.F. OVER THAILAND Bandkok Effectively Bomlie d Japs "All-Out" For Singapore. RANGOON, Burma, Jan. 8: tP The Royal Air Force attacked mil- ltary objectives yesterday in Bangkok, Thailand, and left huge fires burning, it was announced today. Japanese Invasion hordes are reported striking with peak fury down Malay Peninsula, attacking the defenders in a critical test of strength. Military Quarters said that Brit ish forces had executed a new withdrawal to about sixty miles north of Kuala Lumpur, while the German radio claimed that the Japanese had opened a large-scale offensive aimed at Singapore. MORE GOOD RUSjvNEWS Freshly Reinforced Red Army Continuing Westward Drive Against Nazis.. LONDON, Jan. 8: IB More good news came from the Soviet front today with Russia's -armies officially reported to have advanced within forty miles of the Vyasma-Bryansk line on which the Germans had expected to attempt to dig In for the winter. London reports say that the Red Army has poured powerful reserves of newly trained troops into ,he westward drive. Home Economics Teacher Quits Resignation of Miss KatherineVan Der Mark Is Announced at City Hall. Miss Katherine Van Der Mark has resigned as home economics instructor in the local schools, it was announced today at the city hall. Her successor has not yet been named. THEY DON'T TAKE IT CAPETOWN, Jan. 8: W Yes their nation is under the thumb of Nazi Germany but Norwegian sea men, or many of them, are free. The seamen's union here is new but strong and they have five sim ilar branches In Britain, five in the United States and one in Canada. DRIVEN TO FIFTH COLUMN LONDON, Jan. 8: tf) The French people, aggravated by Nazi methods of occupation, are described by a 21 -year-old Englishman Just escaped from France as a potential Fifth Column on the continent for the British. been stabilized as far as practicable, yields from taxes and savings fulfil all expectations, deft funding operations proceed satisfactorily and surplus money though potentially dangerous, also serves as war fniance. The success in Internal finance, however, was and remains conditional upon Lease-Lend help front the United States and the generous assistance from the Dominions.