New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-26
Canada to Borrow
slO0,0OO,OOO from
N. Y. Bankers
McAdoo Announces Gov,
eminent Approval of Pri-
vate Syndicate Loan

Washington, July 25.-Canada is to
borrow 100000, 900 in the United States
to Offset in part the heavy trade bal
ance against her IN this country. the
loan will run for two years, bear in
terest at the rate of approximately o
PER cent and will be made by syndi-
cate of New York bankers.
Negotiations for the loan have been
proceeding for some time. The final
step-approval by the American gov
ernment-was announced to-day by Sec
rotary McAdoo in a statement saying
that he had so notified Sir Thomas
White, Canadian Minister of Finance,
at a recent conference.
One reason why the Treasury itself
q not making the loan is that such
credit would have TO be made indi-
rectly through Great Britain. Another
reason is that heavy demands already
Rave been made and are in prospect
ppon the s3,0OO,0OOO00 authorized by
Congress as a loan to the Allies. A
third reason is said TO be that the in
lection at this time of a Sl00,000.000
bond issue into the domestic financial
situation would not in any way disturb
the Canadian governments plans for
lte war financing, in which there is, for
the moment, lull.
Old Policy Abandoned
Approval by Secretary McAdoo of the
Canadian loan marks departure from
the previous policy of keeping the
American money markets free from the
bond offerings of other belligerents.
Secretary McAdoo issued the follow
ing statement:
"Sir Thomas White, Minister OF
| Finance of the Dominion of Canada
! called on me recently to ascertain il
| there would be anv objection on the
| part of our government to Canada's
| seeking a short time credit Of 100000.
| coo in the American market.
81 stated to Sir Thomas that, in view
Of the fact that the balance Of trade
between the United States and Canadt
was running strongly in favor of the
United States, | realized that it wa,
desirable for Canada to establish cred
its in our markets TO meet these ad
verse balances. Therefore, there woulc
be no objection on the part of this gov.
eminent to the proposed offering, but
| that we should, of course, have to keel
/ control over our own situation by de-
| termining each foreign offering on it;
own merits and with reference to the
/ financial condition prevailing at the
| time.
ut is important that our commercial
and financial relations with Canada
/ shall be conserved in every reasonable
way. The proposed transaction is in
/ tended for that purpose"
! Former Application Discouraged
Prospect of Canada's seeking a pri-
vate loan in this country recalls some
/ what similar negotiations, pending
/ shortly before the United States en-
/ tered the war. between Great Britain
; and J. p. Morgan & Co. for the estab-
1 lishment of a 5000, 100000 credit in this
/ country, secured by Canadian Pacific
/ Railway securities.
At that time the subject was dropped
on intimations from the United States
that it would prefer TO do the financing
itself. About the same time private
loan to Cuba was discouraged on the
ground that the government might do
it if necessary. Apparently that stu
alton no longer prevails.