New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-26
Canada to Get
100000 900 Here
Bankers Surprised by An
nouncement of Governments
Money Requirements


With the sanction of the Treasury
Department at Washington a syndicate
of bankers headed by j. P. Morgan &
Co. has arranged to purchase $780,
100000 of two-year notes from the
Dominion of Canada upon approximate
ly 6 per cent basis. No collateral, 1t
is understood, will be required of the
Canadian government as security for
the notes.
The placing of this loan makes the
amount borrowed in this country by
the Dominion government since the
war started s22O,OOO,OOO, of which
s25,OOO,OOO has already been paid Off,
while arrangements have been made to
take care of another S20,OOO,00O OF
notes maturing August l.
Sir Thomas White, the Canadian
Finance Minister, through whose ef-
forts the present loan has been Sc
cured, is reported TO have explained
to Secretary McAdoo that the balance
of trade is running so strongly against
Canada in favor of this country that
unless some relief could be secured the
Dominion would suffer.
The notes will be offered to the
public shortly, but no details were
given out yesterday as to the terms on
which they will be sold.
Meantime, sl5,OOO,OOO of one-year
per cent notes purchased from the Chi
cago g. Western Indiana Railroad by
j. y. Morgan & Co. are being offered
TO the public on the basis of s9A and
interests.
One effect Of the unexpected an
nouncement made by Secretary McAdoo
that the government would need S5,-
100000 Of additional funds 10 meet
war expenditures has been to stimu-
late the efforts of bankers to accom-
plish such short term as is in sight
with as much sreed as the market will
permit. As one banker expressed it:
I'VE must get in all the hay we can
while the sun still shines. There is a
good demand for short term notes at
the moment. but with so much govern
ment financing coming along within a
few weeks. the present activity can be
expected TO continue for only a COM
paratively brief period"
Bankers interviewed yesterday said
that they were not only surprised, but
somewhat shocked to learn that the
governments war programme would
necesstate financing TO the extent of
$5,0OO,0 100000 IN excess of that already
arranged. They agreed, however, that
the government could get all the money
II needs. The opinion was unanimous
ly expressed that: eve are in this
war with both feet and must see it
through at any cost"
To raise an additional $4,000 900 900
the government. so bankers say, will
find it more eXpedient to resort to
further issues Of bonds rather than
increased taxation.
THE taxation method" said one
banker, must be used as far as pos
Sible. but it should be constantly kept
in mind that in times such as these
the first necessity is to foster industry
20 the utmost. IL will not do to spread
taxes IN such way as to discourage
production by plants operated at the
least profit. Our chief aim must be
to keep up the volume of output.
Rather than to take the chance of
driving great many useful industrial
units into idleness by putting too
heavy a tax on profits it will be better
TO sell more government bonds. The
pttlic will take them. 1t may be ne
cessary for the government to pay
little more for money in the future
than it has so far, but have no doubt
the next instalment of the Liberty
Loan will go well. even if offered on a
~ Nor cant hag..