The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-07-10
CANADA PLANS
$15O,OOO,oOO LOAN
Dominion Banks to Put New
Series of Credit in
Operation
NON Essential LOANS
TO BE REGULATED
Freight Rates on Canadian Lines to be
Raised to Conform to u. s. Schedules
Wages Also Likely to Be Advanced
Within Short Time.

ages ALSO Likely TO be advanced |
Within Short Time.
TORONTO, July 10.-The Canadian |
banks this month commence to put in
operation the new series of credits for |
the Dominion government, arrange
ments for which were made a short |
time ago. Each month the finance min |
lister receives a loan from the banks
| of certain amount, the loans being
based on the government 8 short term
notes. It is generally believed that the
notes resemble the United States gov
eminent s short term certificates of in
patton Of the war loan fiotation and re
payable out of the proceeds of the
same. The amount to be advanced by
the banks has not been officially stated,
but the current impression is that the
loans will reach s150,00o,000.
Although the bank statement for
May 81, issued in the last week of June,
showed the mercantile loans and dis
counts in Canada to have increased
$3S, 100000 in the preceding three
months-the increase for May being
nearly $4,000 00o-present indications
are that during the remainder of the
/ year discounts and advances to Gus
toners engaged in non-essential indus
tries will be carefully regulated, and
that credits to other customers will be
kept down to what they absolutely
must have. This policy is necessitated
by the prospective increase of all the
banks loans to the Government. Al
though the Canadian banking insti-
buttons have well maintained their
strength in liquid assets they cannot
thus place SO large sum as $4,000,
600 at the disposal of the public treas
ury without. cutting down to some ex-
tent the volume of their loans to or
binary customers.
A circular letter despatched a few
days ago to all bank branches in Can
ada by E. l.. pease, president of the
Canadian Bankers Association, affords
an illustration of the growing intimacy
of the American and Canadian finan-
cial systems. In order to impress upon
the bankers the Importance of the
points referred to in the preceding par
agraph Mr. pease made use of the state
. / II
Reserve Board at Washington regard
, ing the necessity for eurtailment and
conservation of banking credits due to
the exigencies of the war. 1t is point
; ed out that s.the Canadian banks, in
cooperation with the Minister of FL
nance, have been for some time endeav-
! oring to bring about the results aimed
at by the Federal Reserve Board, but
IS rI &c.
sued SO clearly and eomprehensively
and on such practical lines sets out the
Idutv of bankers in the present emer-
gcncv, that a fresh consideration and
j, a careful observance by Canadian bank
= ers of these directions viii materially
aid in meeting the imperative obliga
= tions which the war has thrust upon
L. us -
d After adapting them where neces
It sary. to Canadian conditions, the argu
1t ments and recommendations of the Fed
eral Board are commended to the ear
d nest consideration of the Canadian
n branch managers.
ir A partial reflection of the recent 2
per cent all around increase in UnIte'
States freight rates is seen IN las
: week s order of the Dominion Board 0
Railway Commissioners, permitting tn
D. Canadian railways to increase thel
westbound transcontinental commodit
7 rates from Eastern Canada SO as t
= make them at least equal with the rate
. now in effect from the neighborina
= States of the Union. The new rate
:. are to be effective August |.
- Discussing this increase vice-pres
A. dent of the Canadian Pacific Railroa
- said in a newspaper interview that
r. has no bearing on the general qnestlo
o. of freight tariff increases being simpl
10 made .to harmonic Canadian rate
for transeontinental traffic with TIL
charges in the United States so as
put them on a parity and prevent an
undue competition that might lead
,l- rerouting of freight
The general traffic manager of Il
company stated that the increase woul
u not have much effect upon the earnin
at- capacity of the Canadian Pacific Raj
mt road As the Pacific slope is not boon
mt ing from a business point of view tt
OF shipments from Eastern Canada to I'll
std Pacific ports are light at presen
.st Grand Trunk Pacific officials also sta
10 ed that their company would not
iaa importantly affected by the new ruin
III owing to the small amount of throug
= traffic. Later the earnings of Canada
transeontinentals may be favorab
AFFECTED.
1t is becoming clear that the Cam
dian Railway Board will eventually
obliged to take some action in regal
to the inequalities created by Direeto
IGeneral McAdoo's general increase
% per cent. The railway employees
the Dominion do not appear to fav'
the plan of increased pay put III for
in the United States. Increase of pa
on that or some other plan they w
likely get; and then must follow t
tgeneral freight rate increase wheth
1.-THE West likes it or not. If a gener
Iall round increase of rates is allows
on this basis it will perhaps neccs'
1 itate the abandonment or modification