The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-10-31
CANADAs MONEY MARKET.
Eve Important Matters Discussed in
financial CireIes-The Dominion Gov
ernsaent Guarantees the Canadian Pa
ellie Dividend-The A Per Cent Loan.

MONTREAL, Oct 30.-The chief topics of in
terest IN the financial world today are the ac-
tion Oh the Government in guaranteeing the
canadian Pacific Railway dividend and the
aliotment OF portion of the Dominion new
psr cent loan. The railway guarantee has Civ
| en- rise to good deal of comment, and, from
the fact that the conditions have not been
rgn,l3 understood, has been somewhat unfav
ofaois criticised, mainly, of course, among
suppo' ters of the Liberal Party. But as the
suaI antee is given on terms which relieve the
government from all risk of loss it will un-
dountsdly meet with approval The announc-
mens mas had good effect on the stock mark
et Wh'ch today shows general improvement.
l. IL Is understood that $40 600 -three-fourths
odn ~ se No IN cash and the balance OF So
UO0OOO within four months-has been obtained
in New York. This will make the money
market easy and will also relieve the foreign
exchange market, which was becoming some
what low, and, as the exports for the next six
months will probably be small. owing to the
deficiency in the harvest there was Possibility
that the supply would fail. The Government,
which has been in the market for about Sc. .OOO-
000 annually for the payment of interest remit
tanees, will now be relieved of that necessity.
In dealing with the matter editorially the
Gazette says: "For some time past an appar-
emily concerted attempt has been made to in
Jure the stock, not only OF the Canadian Pacific
Railway, but of the Northern Pacific as we'll
1t would, under the circumstances, have been
madness to attempt to put any more of the
stock upon the market, and without doing
this the determination of the company to press
the railway on to speedy completion must have
been sadly interfered with. The subsidies
which lava been described by the opposition
as extra agant have apparently not been safe
ciens to encourage the investing public to pur-
chase ghe stock, and under the circumstances
the guarantee Of the government was sought
Tor ana has been granted. 1t is proper, how
- . At~kk III.
this guarantee has been given render it entirely
unobjectionablc. It is at per cent for q peri
cd Of ten years, and involves there
fore sum OF $30,000,000, but de-
post now Of little over $24 100000, at per
cent, will enable the government to make the
payments semi-annually, of 81 100000 for the
next ten years. This the company undertake
to deposit with the government in cash and ap-
proved securities. Fifteen millions of dollars
in cash is to be deposited on the execution of
the deed of grantee, $1,000, 900 more within
the next four months, and the most undoubted
security for the balance will be deposited. The
terms Of the original contract with the compa-
ny are not changed in any particular, except
that it is understood that the entire railway
from Calendar to the Pacific Ocean viii be
completed by the 1st Of May 1886, probably by
the fall of 1885. The government get loan OF
large sum at per cent, which is the interest
necessary, to bring the deposit up to the aggre-
gate of $50 100000 It is impossible that there
kind, which in no way changing the condition
OF the contract approved by Parliament and
the country, yet enables the company to over
come the influences of the bear movement, OF
which they have been the objects, and insures
the speedy completion of the railway, which is
SO NECESSARY to the consolidation Of the confed
eration''
The Herald, which is understood to speak.
Tor the Canadian Pacific Company says: The
object OF the arrangement is perfectly clear.
The proceeds of the stock remaining to be
issued must go into the construction OF the
work If the capitalists who are interested in
other Pacific railroads join to bear Canadian
Pacific stock" Without this guarantee thew
can so reduce its value as to lessen the re-
sources of the company very considerably and
thus throw doubt upon the company's fnan-
ciai ability to build and maintain this great
undertaking, in the success of which the Do
mlnaun is SO largely interested With the
guarantee the market value of the stock will
pc sKeadIed, and the exchecquer will be the
fulisa, financing for the great work will be
renaered easier, and the success of the great
worS assured. It was foreseen when the con-
tract was entered into with the government
that The hostility of the United States Pacific
railways would be revealed in the fashion
which we have seen in the United States stock
markets, and the provision for guarantee of |
interest was made in order to guard against |
Tue injurious influence of such combinations |
Regarding the rev government per cent,
loan, principal and interest payable in Canada |
it Is announced that the tenders have been |
deAit with by the finance department, and the |
resrlt is that portion Of the loan RENAME un-
allotted. The minimum rate fixed by the gov
erRsneut was par, and the total amount tender |
ed 40r was 81. .l77, COO. OF this, $977, 900 was |
accepted at and above par and $500, 900 was |
unaccepted. The government, believing that |
Il s desirable to asFord Canadian Investors an
opportunity to purchase Dominion securities, I
has decided TO leave the balance Of the loan |
open for the present at IL per cent. premi- |
um.''
The Gazette, in reference to the failure to |
place the whole of the loan at once, concludes |
that the fact shows that the value of money in |
Canada has not yet reached SO low basis as 4 |
por cent, and says: SIT is apparent from the |
comparatively small amount rendered for, that
on account of the renewed prosperity of the |
country, incident on the adoption of the ma
tional policy, Canadian investors can find en-
ployment for their capital at better rates than |
4 per cent, and the failure to place the whole
of the loan at once is to be looked at rather as |
an evidence of increasing prosperity than of
paucity of capital to invest
LONDON, Oct. 29.-On the Stock Exchange |
today, Canadian Pacific railway stock advanc- |
ed 10 per cent. upon the report that the Cana. |
dian government had guaranteed 3 per cent. |
interest thereon for ten years.