Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-19

come and of actual investment are
merely an incident in the foreign ven
lures Of the Dominion and affect only
individuals and companies. but never
theless the Dominion as a whole felt
this situation when it came to doing
her part as a section of the British en-
pire.
1t is of some significance that in her
came from the United States. Much
American capital had been invested In
the Dominion in the form of branch
factories, but as these branch factories
became Canadian national industries
and hardly could be considered an
American investment.
Canada, on her part, also had invest
ments in the United States; A large
volume Of these were in public utilities.
such as light and power companies. At
one time a leading Canadian insurance
company financed the trolley systems
of several western states. This process
was about over before the outbreak OF
the war.
The first aid from the Omitted States
was by the transfer of capital in the
form Of hard cash. In the beginning this
happened because Of the he emergency Ha.;ns :y
American securities by the New York
banks.
The Bank of England, by an arrange
ment with the Dominion government.
where gold could be received without
the risk of ocean shipment, the Cana
dian minister of finance acting as trus-
tee, to hold gold for account OF the
Bank of England.
Everybody remembers the situation
q wear ago when the New York bank
ers were shipping gold to Ottawa, and
Inv this means obviating the actual ship
ment across the Atlantic to make pay
ments in London. Exchange rates were
thus stabilized and the exports from
the United States and Canada which
later went forward helped to restore
the financial balance. 1t was currently
reported that $s0.o00.0o0 was shipped to
Ottawa from the United States before
the emergency ceased
This American gold in Ottawa was
of as much service to the Dominion
as if was to the United States. IL
made the capital city of Canada one
of the financial outposts of defense Tor
the empire.
measures for the Dominion, did not
stop here 1t began to supply the
funds which Canadian borrowers even
before the outbreak of the war had
been unable to obtain in London. me
bonds of the provinces ana munlclpdii-
ties. in the form of loans, were alb
sorbed by the New York money
market. i,
Funds also were supplied, though In
a much more sparing degree. for some
of the railway and industrial corpora
lions. 1t is estimated that during the
first wear of hostilities Canadian
provincial, municipal and other loans,
to the amount of $100.00O,0Oo, were
fioated in the United States
A Dominion war loan to the amount
of S45,OO0,000. in the form OF snort
term notes likewise was taken by the
New York bankers. Since these short
terms notes when they become due un-
oubtedly will be funded into long
term loan, this investment of American
capital may be considered permanent
one.
The industries of the United States
Indirectly also are serving Canada In
meeting the war expenses. The Do
minion government, as means OF pro-
viding additional revenue, increased
the tariff The increase on what IS
known as the general tariff was ~
per cent, and on the intermediate and
British preferential schedules per
cent. Since the United States is the
chief source of supply for Canada OF
all sorts of manufactured commodities,
and since the general tariff is levied on
these products, the American indus
tries which have a canadian market
are thus contributing to the war bill
of the Canadian people-that is, as