The sun., 1919-09-09
BIG FOREIGN TRADE
PROBLEM TO SOLVE
Situation of Rumania and AL
lies Causes Anxiety to
Canadian Financiers.
S25,000,000 is AT STAKE
Another Complication Comes
From Sale Of Dominion
Pulp in Europe. \
s25,O0O,OOO is AT STAKE

Special Correspondence to the Cdnadion
Section OF THE Sun.
TORONTO, Sept. S.-while domestic
business and financial conditions con-
tinue favorable, interest is veering to
the question of foreign trade for Canada.
which is becoming Of more Importance
and is steadily becoming more involved.
Like the business people on your side,
Canadians have much to learn in regard
to foreign trade and finance. and they
are now in one Of their early lesson
periods
What 1s to become of Canada's sur
plus foodstuffs and manufactures? This
Is An issue affecting many citizeng. A
few days ago 1t was announced Britain
had bought 100000 bushels CT wheat.
Now we learn that Gree@>has taken H.
O00,0 but that still leaves two-thirds
of the surplus to be disposed of. Bel
GUM is understood to want a consid-
cradle quantity under the $4,000, 900
credit granted that country. but. as
Greece will pay cash, it is probable that
other cash customers will be sought.
France and Italy also may secure some
OF the crop through the Royal Wheat
Commission.
The situation at the present, however
is complicated by the case of Rumania,
for it Is stated that the Canadian Gov
ernment is now most anxious to secure
that country's bond for the S2E, 200, 900
credit advanced by Canada and which
was largely if not wholly expended in
woollen goods and other manufactures
Anxiety is heightened by the tension
now S!st:ng between thu Allies and Ru-
mania over Hungary, amounting al
most to a state OF war. Il complica-
tons like this with countries of which
little Is known here are to follow the
ambitious extensions OF foreign trade
then there is bound to be Some resent
ment here.
Another Mixup Seen.
Another complication comes from the
sale OF Canadian pulp in Europe. It
Is announced from London the removal
OF restrictions ON German trade In Brit
ain means that Canada will have to face
the competition Of German pulp and pa
per at prices which, owing to low ex-
change rates, may be difficult to meet
AT the same time the immediate surplus
OF Canadian pulp and paper products, 1t
Is understood, has been disposed of in
Great Britain. Thus, while this is not
an immediate cause for anxiety, It may
portend competition in the future in
products which are basic In importance
in Canada.
Announcement of a direct line OF
steamships between Canada and Nor
way doubtless means the opening of
new channels " trade with Europe. and
to that extent may have considerable
bearing on future currents OF comrzerce.
"A short time ago there was discussion
of the part that banks might play in
financing foreign trade in place of the
Dominion Government. This was strong
ly urged by Lloyd Harris. chairman of
the Canadian Trade Mission, but in
quiry among the banks reveals no indi-
cation that action has yet been taken
in this direction.
Another announcement that causes
some concern Is that the British au-
thorities will purchase only 10000 tons
of Canadian cheese this year, instead of
$4,000 or more last year. Inasmuch as
the British market has been the back
bone of this industry in Canada. the
news is received with some disappoint-
ment. Lower prices have prevailed for
some weeks past, owing TO the lessening
demand from Britain.
There is as yet little evidence of
lowering prices of commodities in gen
eral, but few straws may be significant.
Live stock prices declined during the
week. hogs by 81. calves BY 81. and
young stockers and feeders by 81 per
hundredweight There is every expecta-
ton that there will be further reduc-
tions. These changes are in sympathy
he L., ~
United States, and are only to be ex-
pected in view of the exorbitant heights
of the past few weeks.
Canadian Farmer Hit.
A more important side of II will be
what effect the reduction will have on
production by Canadian farmers. News
that the Board of Commerce plans an
aggressive campaign to reduce prices is
bringing some comfort to city popula-
tons 1t IL stated on behalf OF the
Board that 1t will fix profits on every
thing. This, II will be easily seen.
will be a difficult task in a country
like Canada, wide of area and sparse
Of population, and with varying condi- /
lions in different zones. The financial
world is inclined to he cynical II not
critical of any big scheme TO fix prices.
but the consumers are clamoring for
some measure Of relief 1t is thought by
many that, to use a street expression.
the Board may be able 10 put the fear
Of God into the profiteers."
Possible effects to be achieved In low
ering prices in the United States are
being watched here with the keenest in
terest, and will probably have a bearing
OH the labor situation. At present. labor
conditions are more settled. and of
course the termination of the Cobalt
strike removes a large cause for anxiety.
Agitation is being continued in var'-
Gus centres by representatives OF the
One Big Union, whose sway in the West
is waning. Joseph Knight, the o. B. U.
organizer addressed the Canadian Fed
Grafton Of Labor convention here last
week, and the incident was cause fol
comment Anxiety, however. was ap.
shown to be baseless by the
Of the federation, who said that the
hearing given to knight was lone OF the
strongest evidences Of the vitality of the
Canadian Federation. Where the Ameri-
can Federation shut the door to Mr..
Knight. owing to the effect 1t feared he
would have on its membership, the c. II.
Of L. had confidence in it's membership
and welcomed tho Exposition of the
Ideals of the o. b. u, knowing that the
and principles of the fed
grafton would not suffer by comparison"