New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-11-13
CANADA GIVES
OF HER TRADE
FOR CAPITAL
American Investments in
That Country Show
Big Increase

British capital invested in Canada to-
tailed s2,914,OOO,OOO on October /, ac-
cording to a compilation made by The
Monetary Times" American capital in
vestments on the same date amounted
to S97s. O54952, OF which s34l 1000
has been placed since 1913.
The decreasing totals Of British in
vestments in Canada in the last three
wears have been due TO the closing OF
the London money market to practl-
cally all loans except those for war
purposes. Canadian loans brought out
in London in 1913 aggregated s236ol9'-
600. In 1914 the figures dropped to
s1ss. s65 900. in 1915 to s41,l75,0OO and
in the current year to date to $1,000
600.
American investments, on the con-
trary. have been rapidly rising. In
1909 the United States took only 3.sO
per cent OF all Canadian government,
railroad, municipal and industrial Sc
curities issued and Great Britain "a
per cent. The figures now are re-
versed, and so far this year we have
taken 10 per cent Of new Canadian cap
ital issues and the English only 2 per
cent.
Investments Of countries other than
Crea. Britain and the United States IN
Canada were estimated in 1913 as FOL
lows: France, 99,25O,OOO; Germany
s31. 725. 900; Belgium, sl1,675,OOO; Hol-
land. s1s,OO0,0OO; Russia, s2,OoO,oOo'
and Turkey, 100000. The greater
mart of French investments are repre-
sented by loans on mortgages and the
purchase of Canadian securities. Bel
gian and Dutch investments are largely
in the form of mortgage loans ana
land purchases. ,
German capital has been interested
in acquiring shares Of the Canadian
Pacific Railway. From figures supplied
by Lord Shaughnessy, president Of the
Canadian Pacific, it is stated that the
percentage of common stock holders OF
that enterprise In Germany and Franco
was IS per cent in January, 1911; 10
nor cent in June. 1918, and 1926 per
cent in August last. Germany's hold
inqs on the latest date were put at 5.33
per cent. or s17,s55 900; those of France
at 5.s3 per cent, or approximately sls'-
100000.
A statement issued in connection
with the compilation says in part:
Generally speaking. it may be stated
that no great effort seems TO have been
made nv British manufacturers and bank
orc 70 further Canadian trade specifically
through the medium of British investments
IN Canada. although there have been ex-
ceptions. The matters Of trade and loans
apparently have been allowed to take their
natural courses without an attempt beng
made TO obtain new business as a result OF
new loans. The British investor hitherto
has been largely content to invest IN Cana
dian securities which bring him fair in
come, give him little risk. but do not
secure for him control OF the enterprise IN
which his funds have been placed. The
case OF the United States is different.
The bankers and manufacturers OF that
country have in many instances combined
their efforts so that when the banker has
arranged a loan TO a Canadian borrower
and the funds are TO be used. say, for the
installation OF plant or machinery. there Is
an excellent prospect. or even a dennite
arrangement. that the plant or machinery
in question shall be purchased In the
United States and probably from certain
manufacturing firm. This practice has
been in evidence even when the share Of
Canadian securities purchased by United
States banking houses has been small COM
pared with the share purchased by British
houses.