New-York tribune., 1918-06-03
Speculation at
A Standstill i'm
Canada's Markets
But Demand for High
Grade Bonds Is Ex-
panding Rapidly
Especial Correspoudence)

TORONTO, June 2.-Speculation of
every kind is practically non existent in
Canada. This is particularly notice
able in connection with the stock mar
kets Even investment buying of the
higher class industrial securities is
lacking. No buying movement of any
size has occurred since December, 1916,
nearly eighteen months ago. Ncverthe-
less, conditions are decidedly different
in regard to the market for pure in
vestments at the present time. A keen
ly active market has developed. This
is due to two things. The Canadian
people have funds available for invest
ment, and will have more funds short
ly. The fifth domestic war loan will
not be launched until late in the
autumn, and therefore the public feel
at liberty to invest in other first class
bonds
Municipals Go Well
An example of the strong condition
of the bond market is found in the
recent sale by the government of the
Province of Ontario to a Canadian syn
dicate of bond houses Of S3,OOOOOO 6
per cent 10-year bonds. Bidding was
keen and close, half dozen syndicates
making tenders. The selling price was
9949 The manner in which these
bonds were absorbed may be indicated
by the fact that within week the
same syndicate purchased an additional
S1000,O00 on the same terms. About
the same time the City of Hamilton
issued $346,040 serial per cent bonds,
for which a dozen bond houses bid,
selling them at 9S.921 AS both issues
were sold to the public at par, the mar
row margin of profit indicates the
ready market available for them. The
City of Toronto has just issued
$835,000 S per cent bonds, and another
issue of s7as,ooo per cent bonds at
a good price, and a host of smaller
municipal issues have been successfully
foated.
Before the war Canada sold most of
its bonds in Great Britain. After the
war began and until the United States
entered the war your country provided
a ready market for Canadian bond
issues, of which this country took full
advantage. During the past year, how
ever, Canadians have had to depend on
the home market for it's bond issues.
and up until a few weeks ago provinces
and municipalities have withheld issues
from the market Meanwhile, the Do
minion government made a provision
by which the provinces could borrow
certain amounts where necessary from
the Federal government This week
the Premier and Provincial Treasurer
of British Columbia came to Toronto
in an effort to float S2,00O,o0O per
cent, 10year bond issue. The highest
tender was OATS for $5OO,OOO, including
an option for the rest at the same
price. The ministers refused the ten
ders and returned home. 1t is under
stood that the province will secure
loan from the Dominion government.
Selling "at Home"
The new departure in Canadian
financing has been the sale of a num-
Der of bond issues "at home" A num-
Der of municipalities have succeeded
in floating bonds among the people of
their own communities. Previous to
the war the Canadian people were not
given to buying bonds, but they are
awakening to the fact that it is
thrifty and beneficial habit. Eight hum
dred thousand Canadians participated
in the fourth Victory loan, and the
hope is entertained that Canadians are
on the road to becoming a nation of
bondholders.
The fundamental reason why Cana
dians are in a position to buy bonds is
that they are prosperous and are saw
ing money. This fact is indicated by
the government covering the operations
of Canadian chartered banks for April.
Official figures show that since August.
1914, the month the war opened, saw