New-York tribune., 1918-02-04
Canada Spending
$700,O00,000 a
Year on War
High Wages Enable People to
Subscribe to Govern
ment Loans
Especial Correspondence

Especial Correspondence
TORONTO, Feb. 2.-Thc admins
tration of the Dominion of Canada is
spending money at the rate of ap-
proximatey s7OO.O0O,00O per annum
That amount takes care of war and
ordinary expenditure. The Victory
Loan foated in Canada in December
will provide 100000, 900 OF this
amount and another SlO0,0 900 may
be counted on from the surplus Of
ordinary revenues over ordinary eX-
penditures. During the last few weeks
the government paid back to the banks
Sl00000000 hitherto advanced. That
leaves S4C0,00O,00o for the government
70 go and come on during the current
calendar year. Indications are that it
will last until some time in August,
1918. Then, the Minister of Finance
has intimated, calls for further ad-
vances will again be made on the
banks. 1t is likely, therefore, that
almost year will pass before the
Canadian people will be asked to sub
scribe to tfth war loan.
Up until this war opened Canadians
had not been an investing people They
. worked for their money; they had not
reached the stage where their money
worked for them. The masses did not
understand much about stocks and
bonds. That is why Canada borrowed
almost entirely from abroad from
Britain FIRST and then from the United
! States-in order that the country
might equip itself to exploit adequate
ly its enormous resources. Some 3d.
600 100000 Of British capital had been
invested in Canadian enterprises up to
> 1912. Close to half a billion United
States capital, including purchases OF
Dominion notes. has been invested in
this country. The pinnacle Of Can
j, ada's period of construction was at
tanned in 1912 and 1918. Considerable
construction has been done since 1914,
but it was strictly for war purposes.
t Trade Shows Big Gain
, The wondc, has been that Canada
was able so readily to respond to
. The demand for war materials. In 1912
| and during the three years following
S Canadas foreign trade amounted to
\ close to a billion dollars per annum.
In 1917 the excess Of imports over ex-
: ports WAS S293,000.000. The next year
: the uIfavorablc balance was $685.
k 100000: the following year the un-
$ favorable balance was Sl02.000,o00
e The excess of imports was for con-
0 structlon, and the nation was CON
e solcd that t was getting ready for big
d things in the future. No one dreamed
s that .he big thing" would come Sc
J. soon The turn in events came in 1915
: Canada ceased to be AN importing ma
$ lion; It became an exporting nation
0 perhaps for all time. With an aggre.
I gate foreign trade of 81 O64 900 900, ex-
ports in 1915 exceeded imports By
>, Sl62 100000. During 1876 with tota
] trade of 81 $50. 1000, 600. exports exceed
! ed imports by 1924 .0OO.O 900. During the
! calendar year just closed the country's
! total trade was S2,552 0OO0 900 and enc
excess of exports over imports aggre
$ gated S5d2,000.000. The transformation
: in the nations trade in six years
c amounted to sa36ooo.ooo, while it:
Y total trade increased s1,5OO 90. 900
e which is equal to 250 per cent
j $7oO.000,00O In War Loans
Il The explanation for this remarkabl,
c performance is the aggressive campaign
q OF construction by the nations bushes
{ men and iinanciers during the pas
y decade.
C Domestic issues Of the Dominion gov
: crnment for war purposes since va
o opened have amounted to $500, 900 600
IS Moreover, since 1914 Canadian bushes
e has furnished its own working capita
l. In considerable proportions Such ,
n performance would have been deeme,
e incredible four years ago. The OK
r planation for this is that the peopl
are prosperous as never before. Th
increase in trade figures is not al
profit, because it is figured on a pric
'e basis, and prices have advanced 33 t,
ID 100 per cent. Nevertheless, measure,
; IN pounds the growth in the nation
- outside. sales has been enormous. l
'e prices have Increased Is per cent ex
az ports have increased 500 per cent. Elk
te ports in 1912 were $342.00O,0OO and Il
l, 1917 they were 81 SAT 100000.
N Wages Are Doubled
se The cost of living in Canada has ad
at vanced, but the increase in wages ha
c. outstripped the advance in the cost O
o. llving. While commodities cost Is ne
e: cent moro than in 1912. skilled work
Of men are making, including overtim,
ed double what they made in 1912. Car
" penters. for instance, are making S
IN 10 81 per day, and they are representa-
IN tive OF the ratio of increase in wage
la IN the country. Prevailing high price
Is are enforcing economies in househol
expenses, and the result is that tn
ar people are able to respond in cash whe
Id the government calls for money. Thi
MS Is why one person in every nine c
an population subscribed to the last W;
W loan. and are apparently we'll able I
st meet instalments on the loan as the
:. fall due.
~ A study Of the chartered bank state
s. ment of the Dominion for Decembf
III indicates the current prosperity Of II
W. W. nation. The figures are compiled fro
~ the records of twenty-five chartere
banks: Total deposits in Canada on II
~ ~ last day Of 1917 were 1882 900 90
~. This was $44,00O,o00 more than in n
on sr vember, $2s5 100000 more than in o.
,n u cemner' no =, 1916. and about seoO,O0o, OF
o. expansion savings deposits renresent.