The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-08

Good! But where did that leave Can
adaf Before she could borrow on the
American market, but now she couldn't.
As a matter Of fact Canadian securities
are still sent down to big American
houses, but they are not sold by the big
American houses in the American market.
They are sent back to be sold by branches
of those American houses in Canada. 1t
need hardly be guessed they are not all
sold to Canadians in Canada. There are
lot of rich American corporations in
Canada and there is a lot Of American
capital in Canada; and it takes moro than
"a horse high, mule strong, pig tight six
foot wire fence" Of regulations to keep in
vestors seeking good securities from Sc
curities seeking good investors; but the
fact is, Canadian securities are ruled off
the American market during the war.
Canada technically is Of the British
Empire. Canada geographically and
financially is first blood brother to Uncle
Sam. To the British Empire our Treas
ury can extend credits and loans as one
Of the allies; but what Canada wants as
to credits and loans she must get through
England.
Now England at the present moment is
practically borrowing from Canada. To
be meticulously accurate, England is buy
ing enormous aggregates of war supplies
from Canada on long time credits. In
1918 she bought $500, 000, 900 of goods
from Canada and sold back only $780,
10000 worth; but England is not parting
with any coin to iquidate those credits
just now. She is keeping all her coin in
the realm against the day of settlement
after the war. She is now financing the
armies Canada sends across; but she is
not paying cash for her war purchases.
Meanwhile Canada is buying enor-
mously in the United States-for 1917
she bought 100000, 900; and though she
is one of the biggest sellers to the United
States, her sales here totalled only $40,
600, 900. To settle the difference Of $780,
100000, she had-whatf Abundant cred
its in England, yes-but those credits
don't pay Canada's bills; and discount has
been running against her per cent.
Going to Affect All Hands,
And Canada's OK is not the only one
gored. AS one of the very biggest bank
ers in Wall Street, or in the world for that
matter, said, 1--WE are really biting off our
nose to spite ear face on a purely foolish
technicality. The state of affairs is really
going to hurt us as much as it does Can
ada, for if a Canadian buyer has to pa,
$l.02 for every 81 worth he buys here
or $1,000 for every 81 900 he buys here
he is either going to tax the consumer thu
difference and so decrease the sale of oul
goods or else he is going to buy proper
tionately less to make up the difference il
exchange. Either way it is bad for us
Canada is one of our best customers il
the world. Per capita of her population
she is our biggest buyer in the world, ant
as her population increases she is going t.
be bigger and bigger buyer. She is to
day one of the biggest sellers to us; pc
capita for her population, the bigges
seller
'rBut that is not the worst of the colossa
stupidity of this technically keeping Can
ada from financing in the United States
1t is going to hurt us harder right in on
acute pocket nerve, and / wish every firm
that makes big sales To or through Canad
would take it up with our Treasury De
partment. I'll put it in general term
first. Heretofore when Canadian bank
- S-v .