The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-03
CANADIAN LOAN TO.
Be $SOO,OOO,OOO
Bonds to Run Five and Fiji
teen Years at 5 1-2 Per
Cent. Interest.
PROSPECTUS OUT IN WEEK
Minister of Finance, However,
Hopes to Get $5OO,OOO,OOO
in Campaign. =
~ a star oore.poadent Of rn, sur.

BIZ stag Correspondent Of Tar Sun.
MONTREAL. Sept. 2.-The prospectus Of
fne new Canadian Government loan will
ne issued within the week and will call
for ssOo,OOO,OOo fve and fifteen year
bonds bearing 51s per cent. interest and
rubject TO taxation.s The Minister Of
Finance really wants $500, 000.0 900 and
hopes to get that amount, but there
Is decided difference OF opinion among
ananciers on the probable sum that
can be obtained, and the Minister will
keep on the safe side. The deficit for
the current fiscal year is estimated at
s350O00, 900 to $780, 100000. The
amount will be determined by the capi-
tal expenditure and outlay on the SOL
ders' settlement, pensions, good roads
and the housing betterment scheme. the
latter being carried out in cooperation
With the provinces. The 1919 grain crop
must be financed.
The Government has cQmmandeered
sn the bond houses and their stats from
September s to about November 20 to
carry on the campaign as has been done
for the last two years. The financial
men have consented loyalty, worked their
hest and made success possible. The let
r ter oil Iue hllibhtE ctNb that iGh-
sonable compensation will be allowed
which in past days has meant payment
10 cover operating expenses with a
slight surplus. The previous loans were
noated for about IA per cent 1t is be-
peved the coming issue will cost more,
but 1t will be under per cent.
Canvassers to BE Paid.
Canvassers are to be paid half of
per cent for all subscriptions, but the
large subscribers to former loans are
kept on a preferred list not open to can
vassers. 1t is estimated that there is
perhaps $4,000, 900 balances in banks
10 the credit of insurance companies,
railways and banks and drawing per
cent. that might be available for Gov
eminent bonds at 8 y per cent
The bond market in Canada is very
quiet at present, due in part to the COM
ing loan and to the fact that the bond
houses have been cleaning up in antici-
patton of this event. But II is a notable
fact that provincial bonds have been
taken up recently at less attractive rates
than will be offered in the new Domin-
ion loan. Provincial loans for British
Columbia at 535 to $40; Saskatchewan.
$50 to $685. Manitoba, 525' to $40: City
Of Toronto. 525, and City of Hamilton,
go. recently were fioated. The bond
Varket in Canada promises to remain
ialm for the next four months, and thus
Il Is possible that the Treasury will get
what is wanted out OF the offering.
Appeal Is to Large Incomes.
Former loans issued in war time were
absorbed to by many men. who had
TO finance their purchases through banks
for patriotic reasons. There is sound
basis for the patriotic argument this
time but 1t will be In relation to ma
uonal finance and trade. which may not
appeal to the average man SO strongly
as it did under war stress. The present
loan is not as attractive. being taxable.
For a man with an income of $4,000
yearly the non-taxable bonds at 8 per
cent are attractive and they are being
bought up steadily and quietly by men
OF large incomes. The taxable bonds at
III are worth only S.75 per cent.
The outlook for a Canadian loan In
New York within the next six months
will be cleared up by the outcome of
the domestic loan campaign in Canada.
1t is believed here, that such a loan could
be sold on the 5 II rate, at which it would
net its buyers $50 to Q.