New-York tribune., 1918-06-18
Canada Seeking
$1OO,OOO,OO0 Credit
I'm United States
Dominion's Finance Min
lister in Washington to
Confer With Treasury
Lspccial Correspondence to The rrto,4ne.1

Especial Correspondence to The TrfbuncJ
TORONTO, June 17.-Sir Thomas
White, Canadian Minister of Finance,
has gone to Washington on business,
and it is understood here that his visit
to the American capital has to do with
obtaining a credit to cover Canadian
purchases in the United States.
Months ago the premium on New
York funds went to cents on the
dollar over Canadian funds, and last
week the rate went against this coun-
try as much as 5-32, thus registering
new high record. Exchange authori-
ties on this side of the border are con-
vinced that the only thing that will
correct the rate of exchange is loan
in New York of not less than $780,
100000. This amount would see Canada
through the summer, by which time the
movement of the new grain crops will
adequately take care of the situation.
Canada Must Pay Cash
If Canada's foreign trade accounts
were balanced up and liquidated
Canada would be over 100000 900 to
the good. This is because, whereas the
Dominion owes the United States some
s20O,0O0,OO0, Great Britain owes
Canada some s40O,000,0O0 Now, while
Britain is not in a position to paw cash
for the food products and war ma
terlals purchased in Canada, but must
secure credits from this country,
CANADIANS have had to pay cash in the
united States for purchases, most of
winch are raw materials which go
into making war materials for Great
Britain.
There are three ways in which
Canada's adverse trade balance with
the united States can be adjusted: l,
import less; 2, export more; 8, secure
credit. AS much of Canada's imports
ere necessary, the Dominion can re-
ouce imports only on luxuries. such as
fruits. automobiles and jewelry, which
may involve saving Of some S15.-
ooo'ooo a year. Because of the heavy
lmunltlon, textile and car orders placed
by the United States government in
canada, which have run up already into
something like 100000, 900, exports to
the United States will definitely in
TIeaSe TL wnen contracts are completed.
ne, Inc net benefit to Canada from this,
however, Will be comprehended largely
IN IN the profits that accrue, as much of
the raw materials for these orders
come from the United States. It is
evlaent, therefore, that credit of
considerable proportions is necessary
TO TO naiance Canada's account with the
Onlted States and set the exchange
rate close to par once more.
some interesting conditions have
oeyeloped as result of the loss in
Hotved ;a IN transferring Canadian money
lnto United States funds. One is the
accumulation IN Canadian banks of
I4ritsa I1a4rge sums sa of money belonging to
Canada. Rather than lose s2.ooo on On
!he transfer of every 100000, these
interests IN are keeping their money in
this country. This money forms a
considerable part of the huge denosi+s
IN Canadian banks at the present time
aggregating nearly $1,000, 900, 900. of
"hlch S658.O00,000 are savings denosits
and 1898, 100000 are current deposihs
g. instead OF leaving the Canadian
!unds IN the banks, some United States
interests an have been buying bonds,
SSn;eny Sn - Dominion Victory bonds, which
to 5.83 per cent These bonds @ cen
ie be llquidated at any time because Of
the excellent current demand for them.
s~dd dhe Victory bonds, which amount to
100000, have not been listed on On
Canadian stock exchanges vet, but the
purchase and sale of them are done
through the Victory Loan Committee.
appointed by the government. Up un,
I'll the end of last week the price had
been fixed at Q87s, but SO keen de-
mand had developed for them that
buyers outnumbered sellers. The re-
suit was that the committee advanced
the price. to 991s. These bonds made
a profitable purchase for Americans
who had Canadian money on deposit
in this country. 0''
U. S. Interests Also Affected
1t is as important for United States
interests as for Canadian interests
that the exchange rates between
Canada and the United States should
be re-established close to par. There
are between four hundred and Ave
hundred industries in this country in
which United States capital has a
heavy interest. These industries. Of
course, deal in Canadian funds.