The sun., 1918-10-01
Dominion Plants Turning Out
Munitions for Both Amer
y lea and Britain.
USE OUR RAW MATERIAL
Banks Across Border Continue
to Provide Necessary
War Funds.
Special Despntch to Tar srx.

TORONTO. Canada, Sept. So--A recent
official statement at Ottawa placed tha
value of munition contracts given 10
Canadian manufacturers by the British
Government through the Imperial Num-
lions Board at $1,000. 10000 The same
authority gave the amount Of orders al
ready executed as 81 200, 900. 00O--this
figure representing the actual amount o..
cash disbursements Thus the presump-
ton IL that the British contracts in Can
ada, as yet uncompleted or unsettled
for. amount to approximately 100000
900. Add to that the Outstanding CON
tracts in Canada of the United States
War and Navy Observation-Disclosures at
S125, 100000 by Treasury officials at
Washington-and ii would appear tina,
Canada is working on British and Amer
lean contracts with value in excess Of
S300. 200, 900. 1t Is understood that the
British contracts are gradually decreas-
ing in amount. while the orders from
Washington show tendency to increase
As the munition plants in Britain and
France are now able to supply a much
larger proportion of the requirements Of
the British and French armies the de
mand from that source for Canadian
shells has declined. Canada finds that
the American orders are easier to
finance. According to the figures given
out at Ottawa, the British Government
provided the $1,000. 5000 of cash which
was disbursed in Canada in connection
with munition contracts In the following
manner: Amount furnished from sources
outside Canada, $500. 900, 900: amount
loaned to the British Government by ths
Dominion Government and by Canadian
banks, 3600.000,00o.
The amounts provided from sources
outside Canada were probably supplied
In large measure from the credits
granted to England by the United states
Government Thus it will be seen that
in case Of munitions shipped to Eng
land or France, Canada received, say
two-fifths in cash and extended long
credit for three-fifths of the purchase
money. 1t appears that roundly 1900,
600 tons OF steel were used in producing
this war material-about rs per cent.
thereof being Canadian product For
the balance Of the steel product. and for
considerable part of the new ma
chinery, fuel, &C, used in executing the
orders. Canada was required to pay
cash to the United States-this constI-
tuting one OF the causes Of her ex-
change difficulties.
The American Contracts.
IN case OF the American cTueTS, on
the other hand, the Canadian manutac-
turer can supply his bankers with eX-
change on New York for the balance
that is due him soon after the compile
ton Of the contract. Like the I'm
perial Munitions Board the United States
Government. in some cases, advances
funds for the erection of new plants.
From the munition makers point OF
view there would be practically no DIFF
ference whether this capital advance
were made by the Munitions Board or hv
the United States Treasury-in either
case the funds are placed at his disposal
as required for building purposes. But,
taking these advances from the point
of view OF the foreign exchange mar
ket. there is a considerable difference
to be noted. The advance from WASH
ington represents an acquisition by Can
ada of new money. or its equivalent /"
materials. machinery, &c. to the full
amount: whereas the advance by the
Munitions Board. to the extent Of say,
three ffths. would represent merely new
credits created within the Dominion to
be carried by the banks or the Domin-
ion Treasury for an indefinite time.
In view of the fact that the Govern
ment Departments at Washington in ma
merous instances supply a portion Of the
raw materials used in the Canadian con-
tracts. the exchange transactions be-
tween Canada and the States are not -
large as they otherwise would he. II
probably transpires that the money pay
| ments from Washington to Canada would
be limited in many cases to the profit
| earned by the Canadian manufacture
| plus his outlay in Canada on wages and
other items,
Bank Position Strong.
The bank return Just published at o.
tawa shows that the banking nstitu-
lions are continuing to provide the nee
essary funds for the Dominion Govern
ment's war purposes and for the rrodu'-
tive operations Of their customers, In
| August the second instalment of the soc-
| cial credit in the form OF temporal!
loans was placed at the disposal OF III"
Finance Minister. and the bankers also
expanded their commercial loans and dis
counts by 3l5.000,0Oo. These two move
n1eptg of course canse1 flIrt her T.