New-York tribune., 1917-07-25
Bankers Discuss
Plans for Big
Loan to Canada
Demand for Investment Sc.
curities Continues
Active

Sir Frederick Willians-Taylor, head
of the Bank Of Montreal, was in Wall
Street yesterday in conference with
leading bankers relative to important
Dominion of Canada financing which is
now under negotiation in this market.
1t is understood that the bankers are
awaiting word from Washington before
proceeding.
Since Sir Thomas White, Canadian
Finance Minister, paid a visit to Secre-
tary of the Treasury McAdoo at Wash
ington a week ago, reports have been
current in the financial district that
the United States government would
advance the Dominion government a
credit Of s1OO,OOOOOO, or perhaps more.
Recent developments have indicated
the possibility of a change in the pro-
gramme. An early announcement Is
expected. Canada has s2O,000,0O0 Of
notes coming due on August /, which
will be paid off.
The Canadian View
Discussing the question Of what mar
ket would be selected by Canada for its
next war loan operation, "The None
tary Times" Of Toronto. says that it
would be desirable TO float the next
issue in the United States or to make
a simultaneous issue in both countries.
1t continues:
"a certain amount of borrowing by
Canada in the United States is neces-
sarv in order that the balance Of trade
between the two countries may be re-
dressed and exchange on New York
reduced to normal. Canada is the Sec
ond best customer Of the United States.
Durinc the last fiscal year. which ended
on March 81 last, Canada purchased
from the United States for domestic
goods to the value Oh
1864 100000, as against only S29O,OOO,-
coo purchased by the United States from
Canada. During April, May and June
of the present year the balance in favor
Of the United States has become stiIl
more greatly accentuated.
after subscribing three war loans
aggregating S350,000000 many finan-
cial men think that this market should
be given a rest They feel that large
war loan every six months is big task
for a comparatively small population
without any great accumulation of funds
for investment
"Undoubtedly the Canadian and Unit
ed States government officials will en-
deayor to arrange their war financing
- tcf N
loans of both countries. The second
instalment $4,000, ,000,000) of the Lib
erty Loan is expected early in Septem-
Der, and this fact will have some bear
ing on the date Of issue, the terms and
the market for the fourth Canadian
loan"
Active Demand
Inquiry in investment banking cir
cles indicates that the demand for
short-term notes continues active
enough to absorb the recent new issues
and to suggest fresh offerings Of this
character Arrangements have been
practically completed by syndicate
headed by J. p. Morgan e. Co. for the
purchase of sl5,O00,000 Of one-year s
per cent notes of the Chicago & West
ern Indiana Railway. The. proceeds of
the issue will be employed in taking up
an issue of two-year notes coming due
on September /. Other important cor
porations are understood TO be nego-
tiating with bankers with a view to
raising much needed capital through
the sale of short-term securities. The
market is in q receptive mood for such
offerings, but the high rate which has
to be paid is causing some hesitancy on
the part of borrowers.