The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-08
Financing Canada a Hard Job
Our Neghbo the North Finds Difficulties Increased Because
United States Has Entered the War

had big surpluses instead of transferring
them TO European markets to earn interest
there they sent them down to our banks
here. Those SURPRISES helped us. We
needed them and could use them both to
Canada's advantage and to ours
snow if the war goes on, or even after
the war, surplus funds are going TO be
very good things to have in reserve. Say
when England begins to pay those credits
to Canada. If we on a stupid teehnicality
discriminate against Canada now, We
aren't going to get those surplus funds on
deposit here. We are going to force Can
ada's surplus funds to European markets.
That viii hurt us as much as we do Can
ada.
"Let me explain in specific terms what
mean and how it will work In normal
times we may raise. twice as much wheat
in the aggregate as Canada, say 700, 000,-
600 or 100000 bushels, compared to
her $4,000, 900 bushels; but we are big
population and consume an enormous
proportion of our own wheat, easily
GOO, 100000 bushels; and Canada has a
small population and consumes, say, only
100000 Of her own crop.
Wheat to Afford Great Surplus.
when the war is over and Canada gets
in her real wheat stride she will easily
produce half as much wheat as we do,
say 400, 100000 bushels. And under nor
NAL conditions Canada will have bigger
surplus to export than we have; for our
population has grown SO much faster than
our production that up to the time of the
war our surplus was shrinking total.
And under normal conditions much
Canadian wheat has gone out and must
always 60 out via American ports either
as -four or grain. The drafts and ac-
ceptances against foreign firms for this
wheat passed through our banks and
helped to create the very surplus of
which / have told you; but will they pass
through our hands if we force Canadian
financing from our banksi
II am for treating Canada, purely
from selfish motives, exactly as we treat
Texas or California. The remedy, of
course, would be for England to assign
some of the loans and credits we give her
to our account or balance against Canada.
She might as we'll pay her debt to Can
ada in that way
One of the big Wall Street houses that
formerly financed many of Canada's
wheat exports to Hamburg gave precisely
the same views. 1t considered that Amer
lean ports might lose much of Canada
reexport trade by any discrimination
against Canadian finance just at present.
Now consider what kind of Gus
toner Canada is in trade markets! She
has a population not SO large as New
York State, between 100000 and 5000,
900. In 1914 her foreign trade was over
billion. Then came the burdens of war
In four years her 100000 or 100000
people sent to the war third as many
soldiers as the United States Joe, 900, 0Ol
have sent. That is, if Uncle Sam send
as many fighters across in proportion Il
his population he will place 100000,
fighting men on the firing line.
Yet in the period when that burden fel
on Canada, her foreign trade increased t.
two billions and half. Her exports in
creased 256 per cent. Her savings de
posts increased from $50 per head t.
. $l2O per head, which explains why he
people have been able to finance the war
In fact, for purely war spendings, Cana
dams have loaned to their Government