The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-24
CANADA WHEAT CROP.
IS BELOW ESTIMATE.
Deterioration In Western Belt
of Dominion Caused
by Weather.
oNE-FOURTH. UNDER 1917
Exchange Market Not Ma
tcrially Affected by Har-
vest Season.

spesai DespstcA 70 I'VE Son.
TORONTO, Canada. Sept. 23.--The
financial community In Canada has now
pretty well reconciled Itself to the re-
duced estimates Of the western wheat
Weld. Alberta. Saskatchewan and
Manitoba. like the States Immediately
south Of them. suffered considerably
from tho adverse climatic conditions pre-
vsilns in the spring and summer. In
case Of the Canadian provinces the dam
age 10 most severe In the southerly por-
tons-between the main line Of the
Canadian Pacific and the United States
boundary. In the northern parts Of sas-
katchewan and Manitoba. It is said,
there are very large tracts in which the
results have been excellent These
served, especially in Manitoba. to help
out the average. According to the esti-
mate Of the Free Press of Winnipeg,
Manitoba's seeded area OF 2.616.000 acres
will give 100000 bushels. or an aver
sse Of eighteen bushels to the acre.
There Is great disappointment among
Saskatchewan farmers that the 1900, 900
acres seeded to wheat In that province
this spring will give, according to the
estimates, only 100000 bushels, the
average being only ten bushels to the
acre. AlbertA's wheat area u a. yet
comparatively small: ana this year the
province 10 credited with q crop Of only
10000 900 bushels
Altogether the three provinces arc
expected to have around 100000
bushels Of wheat and ls3, 900. 900 bushels
Of oats. In the banner year. 1915, they
IN 1915 and 1917 although climatic con-
ditions were unfavorable on both oc-
rasons. they had crops OF 100000, 900
bushels or more. It will be remem-
bered that the extremely high grain
prices incidental to the war date prin.
C!pally from 1916. In none OF tho three
seasons In which wheat has been around
the So level have the western Canadian
provinces been favored with a bumper
crop In view OF the rapidity with
which events are now developing on the
battlefelds Of France there are good
grounds for anticipating that the war
will be over before autumn OF 1919.
Many OF the farmers, therefore, believe
their crop Of this year will be the last
one harvested under war conditions
They recognize that the cessation of
war would probably cause q decline in
prices. but they believe. nevertheless.
that they are likely to get fairly good
prices for what they can raise in 1919.
The state Of mind prevailing among as-
r!culturists on this point will have an
important bearing on the wheat acreage
seeded In the United States and Canada
this autumn and next spring.
Irrespective Exchange Market.
So far the exchange market In Mon
xal nnA -.
rally affected BY the arrival Of the har-
vest season. From the fact that the
premium on New York funds still hangs
at or above 2 per cent. It is clear that
bills Of exchange on New York cover
Ing grain exports are not yet being
freely offered. One would think that
even II few bills had yet come forward
large offerings Of exchange Immediately
in prospect would cause the market to
react. That 1t has not vet done % may
conceivably be due to delay In arrang-
ing the credits. &c. in connection with
drafts on the British funds In New York.
IL these arrangements are not yet COM
pleted the Canadian shippers cannot A.
yet perhaps draw freely on the Ameri-
can centre. In that event they would
apparently either carry the grain tenn
porarily by means Of bank loans or turn
Il over to the Dominion Government, re-
Thus the relief to the exchange market
would come little later.
II is believed. however. that the wheat
crop this year will have only tempo
rary effect In cutting down the premium
on American exchange. The Indicated
yield being so small, tho surplus avail
able for export is likely to be consid-
erably less than in any Of the three pre-
cedng years. While the grain bills are
- "a ha a..
urally will buy them at declining rates.
but II the movement Is short lived ex-
change rates may recover quickly as soon
as exports begin to decline. The season
In which low rates are most likely to
be in evidence comprises October Nand
November.
British Credits In New York.
The information given out the other
day by Treasury officials at Washington
to the effect that Great Britain spent in
Canada for wheat and munitions ap-
proximately $500, 100000 OF the funds
eminent during the hssal year ended
June. 1918, gave considerable satisfac-
tion to bankers here. To such an extent
az Washington allows England to use
American credits in paying for supplies
purchased In the Dominion. Canada Is
relieved OF the necessity Of selling her
cash products on long time TO the mother
country. In that way the utilization by
England OF the American credits for the
purpose OF paying for supplies bought IN
the Dominion in some respects has the
tame effect as II the United States had
loaned Canada direct and left her to
finance a part of mo British purchases
herself. However. II In much less COM
phcated for the United States to lend the
money to England. thus permitting Eng.
and TO pay Canada In New York funds.
canada has already expanded her incon-
,srdbIe paper money issues and her
nome issues Of war bonds to very large
ngnres In the effort to finance the Brit
sh purchases, and anything the United
states Is able to do in the direction Of
enabling the Dominion to avoid further
stetchlng OF her internal credit ma
ssnihery will rebound to the benefit OF
yolh countries. II will help to keep the
poninion's finances on fairly stable
PASS and prevent any serious weaker
'Hs OF the general credit structure