The sun., 1918-12-24
CANADA STABILIZES
HER VICTORY BONDS
,,sus of 1917 Included in Plan
Which Comprehends a
slightly Higher Price.
HOLDERS CAN PROFIT
nominion Banks to Open Paris
Branches to Care for
New Trade.
HOLDERS CAN PROFIT
s,.e.a, Despatch 10 The sur.

.-.oxro. Dec. 23.-Canades bond sta-
,,r,,rr plsn came into the foreground
lac, week when the Market Conn
-. raised the price of Victory bones
- ~, ,o,nt all around. The Victory bonds
:. ,o,7 participate in this increase az
y, =. thu bonds just issued. Accord
:, n thu new scale OF prices q sehef
= ma Ave year bonds OF the 1917 loan
IN 70, 1914, while buyer must pay
,,O,I the seller of a ten year 1917 bond
.,n,a get ss%. while the buyer pays
AN. and the seller of twenty year
,.nd =, that issue would get 1o1. against
"a, ,,,d by the buyer. Notwithstanding
a. ABDUCTION Of 1 per cent original sub
,.,Ihers 20 last years issues can thus
-rn a profit providing their offerings
~ me case OF the new Victorys
..na- NJ the five year bonds gets 9SAa
.,s,nst 1904 paid by the buyer, ana
.sn,r. ~ the fifteen year bonds get 100.
...inst 1Ol paid by buyers. A small
-.hsc-iher 20 the new fifteen year bonds,
,ba needs his money. can recover there
AVA without loss through the Market
cnr-,i,tee. but subscribers to the new
80. year bonds selling at these prices
vould experience a loss of one-har OF
ar cent az the price OF the bonds WAS
10 and interest. As regards large mold
s-, whose circumstances require them 10
ali ,be pr,ces referred 10 do not apply.
no committee takes the ground that TX
h,ra was an open market and large
Alr IN AACnnQA hOld-
.rg the prices would probably fall I'M
az his sales. Such sales therefore when
'r-anged are on special terms below the
,ayrrtised prices In all probability
are holders who can induce the COM
nlt,ee TO sell their bonds get better
nro4s than IL the market had been un-
rrstricted from the beginning. Judging
rom the course OF the market for Lib
er,y bonds in the United States free
market for Vlctorys in Canada from the
beginning would probably have resulted
in d scount quotations all around and
occasional large sales would likely force
quotations temporarily lower.
Small Savers Purchases.
II must be conceded that this plan
a. the Canadian committee TO regulate
Arbitrarily the prices OF outstanding
Victory bonds exceeding 81 100. 000,0 900 is
4 remarkable undertaking. In large in
,ernational markets, such as New York
and London. the restriction OF trading
could not be carried out as well as in
Canada but in the Dominion, with many
0! the large holders of the bonds in close
sympathy with the committees work the
,hene has better chance of success.
Last weeks rise in prices, like those
o. the preceding similar periods, was
explained as being due to excess or de-
nand over supply. Ii is said that the
demand for smaller bonds-s50, 500
and $500 is exceptionally keen. and
that large Investment corporations VIII
Ippcar as purchasers of substantial
amounts from time TO time. Even at
tie enhanced prices the bonds give an
Icellent rate Of return for Insurance
and trust companies with prospects in
sase OF the long term issues OF apprecia-
ton in market value.
Apparently there is being built up a
great market for the lower denomina-
tons among smaller savers. Many wage
saners and income producers are get
ting the habit OF buying a $50 or a 500
bond every little while, as savings accu-
mulate The rate of intereSt-at . II
per CENTS much more than Is paid by
savings departments This is undoubt-
ely good thing for the country. as
when the bonds are distributed they
probably will remain out OF the market
FOR long time. perhaps until maturity.
And the practice of thrift by an in
cress!ngly large body OF Canadians must
Dun. Importantly in the long run in de-
veoping Csnada's financial strength.
Notwithstanding the active buying of
wa bonds by savers the deposits OF the
banks continue to show steady and
satisfactory increases.
International Banking.
Following the announcement at the
Hank OF MontreaHs annual meeting early
December that the bank proposed 70
take steps Immediately to open q branch
Paris the Royal Bank of Canada the
ether day also stated its intention OF
establishing itself in the French capital
"A Banque Rationale, one OF the leading
french Canadian banks, has had a Paris
oanrh IN operation for several years
and Il has met with consistent success
>.nce the outbreak OF the war its opera
aons necessarily have enlarged consid-
eTaoly. When the Montreal and Royal
:et their Paris offices in WORKING order
canada will then have three branch
banks in France. in addition to the six
N London and the branch recently es-
Ab.lshed by the Royal in Spain.
Nh'e eNpeditionary forces are over
seas there will be much business done in
ne way Of travellers checks, letters OF
qedit remittance for personal expendi-
Nre' &c, but even now there are new
ttoe openings between France and Can
sOa appearing in connection with the
Huorauon work TO be done in the
northern denartments OF the rennhlic