The Washington herald., 1908-05-31
CAPITAL FLOWS TO CANADA
American Money Assists in Building
Up New Country.
Ninety Per Cent of Great Business
Enterprises I'm Northwest Said to
De Backed by Yankees.

In presenting the following report upon
the subject Of American capital in Vest
ern Canada. Consul John L. Jones. Of
Winnipeg. says that fully 80 per cent Of
all the great business enterprises Of that
section have American capitalists interest
ed I'm them:
Financial history, as related TO the flow
Of capital between the United States and
Canada, is repeating itself inversely at
the present time in the financial relations
that prevail between the new country OF
the Canadian west and capital from south
of the international boundary.
Twenty-Five years ago there was a
dearth OF capital to develop the agricul-
tural industries upon which the cities OF
St Paul and Minneapolis have grown to
their present Importance in the grain
trade Of the world. The capital necessary
for their development. It is said. came
largely from Canadian banks. the man
agement OF which. appreciating the situa-
ton as one which would yield profitable
return. stepped in and supplied the hnan-
cial assistance which enabled the Twin
Cities" to win their grain supremacy. To-
day these cities are IN a position 10 come
forward with money for investment I'm
the various enterprises In Western Cana
da, where the present conditions as to
the inadequacy Of available money TO the
needs of the country are analogous to
those which obtained in and about ST.
Paul and Minneapolis a quarter Of a cen
tury ago.
At that time. as is always the case in a
grain-growing section. the time OF acute
demand was at that period OF the year
when the crop was 70 be moved. IL re-
quires a great deal OF money to finance a
wheat crop. and the banks Of Duluth. St
Paul. and Minneapolis were not able to
meet the demands made upon them for
ready cash. The situation was relieved
by Canadian banks loaning money on
warehouse receipts-that is. upon grain
In store and yet TO be sold to final pur-
chasers. Now these cities are not only
able TO take care OF their own financial
affairs. but they are also lending very
substantial aid to the city OF Winnipeg.
which is In much the same situation as
the American cities were then.
Located at the gateway Of a vast and
immensely productive country. Winnipeg
offers opportunities for investment which
the banks Of the section lying directly
south Of the Manitoba trade center fully
appreciate. Individual capitalists are not
slow in taking advantage OF opportunities
that promise so much IN immediate re-
turns. That these opportunities viii enor-
mously increase cannot be doubted. New
settlers from all over the world. many Of
them from the United States pour in
steady stream into Western Canada. and
the wheat crops. which has been hover
ing around the 10O.0 000-bushel mark.
VIII soon reach 150O0O.OC0 and in a few
years double itself. To this yield of wheat
must be added other millions OF bushels
OF cOarser grains. all Of which make UP
no inconsiderable factor In the sum total
Of those things which call for the pres
ence Of money in large amounts for the
purpose Of financing their transportation
and sale.
Internally Canada is unable to supply
the financial needs demanded by the rapid
development that is going on in the
Western part of the country Eastern
Canada is fast becoming a great com
mercial and Industrial section. and so
much Of local capital is absorbed in the
growth that is developing along these
lines that there is little 10 spare for the
great and growing needs Of Western
Canada. There is I'm fact. a real short
age Of capital for use in furthering
and commercial enter
prises, and this shortage American capital
must supply.