The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Of all the problems facing Canada‘s small business sector, none is as serious as the problem of succession: who will fill the shoes of the ownerâ€"manager when that ownerâ€"manager dies? Large firms are Harry‘s personal inconvenience aside, there was only one problem with Harry‘s death: no one was left to run the company when he was gone. None of the employees knew enough about the operation to fill Harry‘s shoes. The family had never been deeply involved in Harry‘s work. and then the government tax collectors came by to pick the corporate bones. Another small company closed its doors forever. Although I don‘t get a chance to hobâ€"nob much with professional economists or captains of finance, I do occasionally read or hear some of their forecasts in the newspapers and on radio or TV . The trouble is that each time I am exposed to one of these economic preâ€" dictions, I am a little more confused. Harry worked hard â€" perhaps he workâ€" ed too hard â€" to build his own business. Over the years, everything, including his family, took a back seat to Harry‘s work. When Harry died, he left a flourishing company behind. One individual or group will tell me one day that the country is in for a recession. Next day I learn from some other prophets that things are not really so bad as they seem and our economy is due for an upward trend in the next quarter, or at least the one after that. All of which inspires me to gaze at a dollar bill with all the trepidation of a suspicious gambler watching a faro dealer flip out the cards in a Las Vegas casino. Of one thing, however, I am fairly certain. The averâ€" By Bruce West By Jim Smith Comment _ A calm cove for our nervous dollar? The provincial governments, in large part, have been made to understand the difficulities that death taxes create. Most provinces have abandonned these taxes after receiving a push in that direction from the Canadian Federation of Indeâ€" pendent Business. _ Sometimes the ownerâ€"manager does train a replacement. The government, howâ€" ever, then throws up another hurdle in the firm‘s path: capital gains taxes and succession duties. The capital gains taxes are assessed by the federal government on the estate at death and succession dutâ€" ies are imposed by a handful of provincial governments. Often these taxes are so heavy that the heirs have no option except to sell the company to pay the tax colâ€" lector. Yet, there does still appear to be at least one sheltâ€" ered cove in these presently troubled waters where we can rest our oars a bit and rely with some confidâ€" ence upon a reasonable amount of security and growth for our beleaguered buck. Canada Savings Bonds are protected and guaranteed by the country itself, and if we can‘t take assurance from that, what else can we depend upon in these uncertain times? ° structured so that replacements are conâ€" stantly being groomed to take over from the top executives. But small entreprenâ€" eurs are much more independent and forâ€" mal structures often terrify them. age person who wants to make an investment of some kind which will give a fair degres of protection to his nervous dollar seems to be somewhat lost as to just how he or she should go about it. Even soâ€"called ‘"bluechip‘" stocks appear to be havâ€" ing their troubles from time to time. The always risky seas of finance seem to have become more rough and murky than ever. If you don‘t thin} these bonds give your dollar a Your business is our business Phone your news in at 886â€"2830 Waterioo Chronicie, Wednesday, November 2, 1977 â€" Page 4 Recently, the federal government has also begun to make comforting noises about the plight facing the small businessâ€" man because of capital gains taxes at death. Tony Abbott, the new Minister of State for Small Business lost little time in assuring small business that his deâ€" partment sympathizes with the problems of succession. Some form of governâ€" ment cooperation can be expected soon, overdue perhaps but welcome nonetheless. Small business is the heart of the comâ€" munity. The importance of succession for small business is the importance of community survival. This assistance is important to all Canadians, even those who have no direct ties with smaller business. When small business sells out, it normally becomes part of a conglomerate. Decisions which were made locally by the ownerâ€"manager are then made at the foreign head office. And the profits flow out of Canada. fair chance to grow, in spite of inflation, consider this : A $100 Canada Savings Bond purchased this fall and left until maturity to gather compound interest â€" at an average annual rate of 8.06% â€" will slightly more than double its value, in nine years, to $200.97. So in effect, your bonds may continue to work for you for as long as you wish or until maturity. They can become a handy source of ready cash if the need should arise. No investment could be more flexible than that, particularly at such a favorable rate of interest. Canada Savings Bonds, which may be purchased only by bona fide residents and estates of decreased persons, come in denominations of $100, $300, $500, $1,000 and $5,000 in the compound interest type but begin at $300 instead of $100 in the regular interest type. Total individual purchases are limited to $15,â€" 000. Compound interest bonds can be exchanged at any time for regular interest bonds of the same series; conversely, regular interest bonds may be exchanged for compound interest bonds of the same series at any time between the date of purchase and September 1, One of the more interesting features of these "new look"" bonds is that they replace the former kind in which interest coupons had to be clipped and cashed at regular intervals. Under the new system, you may choose between two kinds of bonds. With the regular interest bond you may have regular interest cheques directly mailâ€" ed to you or deposited in your bank account. Or, with the compound interest bond you forego these regular interest payments and allow your bonds to accrue compound interest from year to year until maturity, at which time they will have doubled in value. At any time, of course, you can cash them in and receive at this point whatever interest is due upon them. NOTE: Bruce West is one of Canada‘s bestknown newspapermen and a prolific columnist. His columns, usually with a light and warm approach, have appearâ€" ed in Toronto‘s Globe and Mail for many years. He contributes to other periodicals, with his articles and comments written in an easy and highlyâ€"readable style â€" the ‘Bruce West touch .‘ One other thing: The Bank of Canada‘s new registâ€" ering system comes out as one of the most advanced and automated securitiesâ€"handling methods in North America. & The system makes possible better and faster serâ€" vice to investors when handling inquiries, will eventuâ€" ally eliminate multiple cheques and it will ensure a prompt, single annual payment to the investor coverâ€" ing all his holdings of regular interest bonds.