The Washington herald., 1918-02-02
CANADA GOOD
US. CUSTOMER
Holland Says Dominion Is
Creditor to Extent Of
Billion Dollars.


dent Of the Standard OH Company OF
New Jersey, was chosen president in
1914 OF the Imperial oil Company, Of
; Canada. which then was and still Is
subsidiary Of the Standard OH Com
pany Of New Jersey, he made up his
mind, that In order to be well prepared
for his new duties. he should become
familiar with Canada. He knew that
great empire to the, north of us
somewhat vaguely and was familiar
with ats boundaries because he had
occasion TO look at the maps now and
then. Yet he felt sure he had no
broad. comprehensive knowledge Of
the Dominion.
He therefore made an excursion
throughout practically the length and
breadth of Canada, at least from
Manitoba eastward as far as Quebec.
All that he saw and heard caused him
10 speak upon his return with enthu-
siasm of that great Dominion and
enabled him to look forward to a day
when Its resources would be magnifi-
Gently developed and the international
trade established between this coun-
try and Canada would be very large.
That excursion throughout Canada
mas made five years ago. Three of
those five years Mr.. Teagle lived in
Toronto. from which city he was
transferred to the presidency Of the
Standard Oil Company of New Jer-
sey. He saw something of the won
derful growth of Canada in the three
years since 1914 when he was direct
Ing the affairs of the Imperial Ctl
Company. He perceived that the
forecast Of Canada's growth and of
her trade with the United States
which he made some years earlier
and which he presumed would not be
E realized until ten or fifteen. perhaps
twenty. years had passed-is now
fully justified by the event.
Thomas W. Lamont, partner of
the house of ]. p. Morgan & Com
- Rauy. who has made a careful study
Of conditions in Canada, set forth
In an address to the members of
the Canadian Society of New York
in few impressive figures the
growth of Canada since war began
and especially the magnitude of her
Increased relations with the United
States. As recently as 1910. Canada
borrowed in the United States only
s3,6oe.00o. That loan was for a spe-
ciai purpose. Presumably it was
related to the establishment of
Canadian internal improvements.
six years later Canada approached
our markets successfully for a loan
in the aggregate of s220.000. 900 and
the average of her loans for each
yecr since the war began has been
SlSS.00o,0 That Is almost as much
as the average yearly borrowing
canada used to secure in London
bHfore the war began
Financing Canada.
There was curious change itself
One OF the remarkable phenomena as
tcr'ctCd with the early days of the
worJ from the days in late August
id carly September. 1911. when we
.ent through the agcn-v Of J. =. .ier-
Geh & Company, $500. .0OO. .0O0 in gold
ID Ottawa, Cdnada. ard the time a
months later when substantially
Gll OF that gold was returned to us
End i'm addition, Canada began to
hyT=Ow heavily in the United S-ateI
ottawa, so far as this American gold
Was conc SIned. was to all intents and
purposes the Bank Of England. Great
~FSritain treated that deposit of gold
in Ottawa substantially as though it
had been deposited in the Bank of
England.
Nstcni hing as .hesc figures that tell
Of CanGd2is financial relations with
the United States are. Mr.. Lamont re-
garGed them as OF less Importance
than the Official figures which tell of
our trade with Canada. There is the
great outlook for future development
of International trade upon the Amer
iraH hemisphere in which the United
States will secure SO grCat 4 share
70 Ia.
with south America should after the
war is ended increase so greatly as
10 surplss the aggregate of our trade
with all the other nations of tho
world Five years before the Flu
ropean war began We had established
an excellent trade with Canada, ac-
cOrding to Mr.. Lamont. In 1903 the
money value of the commodities Can
ada bought in the United States was
$3.50, coo coo. whereas. on the other hand.
we bought i'm the same year Cana
dian commodities of the money val
ue Of So CO0.OOO Therefore the trade
balance of the United States in that
year was about SsO.OoO.tOO. That bal
ancc was presumably liquidated
through London.
But il is an astonishing jump from
the figures of 1903 to those which Slr.
Lamont reports for the year 1917. In
that year. Canada bought United
states commodities Of the money value
of sssI.GOO.OcO and we bought Canadian
commodities OF the money value of
a little under $500 OOO, 900. Therefore the
total of the International trade in
which Canada and the United states
took part in 1917 was almost exactly
s.. 600 yooo. 600.
Owes q. 9. One BllliOn-
A favorable trade balance for the
United States OF nearly S375, 1000. 900
was created by our Canadian
trade for 1917. This balance. in ad-
dition to the loans which Canada
secured in this country, makes the
United States a creditor of Canada
for a little under $1,000. .000.o 900.
When IL Is remembered that the
entire Dominion of Canada contains
a population approximately the
district of New York Il wiz be all
the easier 70 realize the magnitude
OF Canadian fiscal and trade opera
tfons since the beginning of the
war. Great as these are Mr.. La
mont, President Teagle of the Stan
dard Oil Company and others who
are qualified to speak believe that
the impulses to vast development of
Canadian resources which have been
.oceasioned by her war activities
will remain and. in fact. be acceler-
ated after the war is ended.
American capital is already heav-
lily invested in manufacture and in
dnstries in Canada and presumably
much more viii be invested when
the war is ended because Canada