The sun., 1919-03-04
NEW CANADIAN LOAN
TO Be MADE IN N. Y.
Exchange Shows Firmness
With Delivery of Bonds
Debt S2,0OO,OOO,OOO.

The condition OF Canadian exchange
in New York in the recent past is a
matter which has given no little con-
Germ to Canadian bankers and business
men, and efforts have been made from
time to time to take steps which would.
to some extent at least, bolster up this
exchange. In the past week or ten
days Canadian exchange has shown
notable flrmness.
This lettering of the situation was
explained by one local banker as the
natural result OF bond deliveries in New
York. The occasion for this hrmuess.'
he said, ais the delivery of approxi-
mately $500. 900 worth OF bonds by the
Canadian Northern Railways in New
York, together with the anticipated TO-
tation of 100000 worth of bonds each
by the Provinces OF British Columbia
and Ontario. and $3.50, 900 by the city OF
Toronto. Canadian prices for their own
securities are SO much higher than New
York that it is questionable whether the
three last issues referred to will be
placed TO any appreciable extent in
this country. in which event Canada n
exchange would again weaken 10 its old
price. which was between = per cent.
and 21-l6 per cent. discount"
No great surprise was expressed in
the financial district when II was learned
day or two ago that new Canadian
loan Is to be made In New York some
time this spring. 1t has been known for
some time that the Canadian authori-
ties were contemplating some such step
in order that exchange rates might be
stiffened TO the advantage OF business in
the Dominion. The amount, terms, &c.
of this loan are still a matter of guess
work only, as is the probable date which
it will be announced. The only thing
New York bankers consider virtually
certain is that the loan Is to be made in
| the near future.
In addition to this another domestic
loan will be required during the year, 1t
| Is declared, in order that heavy eNpendl-
lures 10 be made by the Dominion Gov
eminent may be met. These expendi-
900 and ss00.o0o.00o, and it is probable
! this new loan will be fixed at the higher
figure. This loan, however, will in all
| likelihood be confined entirely 10 Cam
| ada and will not be sold in any part in
New York.
Since the beginning OF the war the
Canadian Government has contracted
| four loans, the first three OF which
| We're characterized as "war loans and
the fourth Is the Victory loan. The to-
tai OF these four loans was $500 100. 600.
and added to the new domestic war loan
which Is now contemplated will bring
the total bonded Indebtedness OF the
Dominion caused by the war up TO
! 81 300, 00O.O 900.
! Al OF the Canadian war bonds are
tax exempt and all bear interest at the
rate OF per cent. per annum with the
exception OF the last or Victory loan,
! which was noated at 5i7 per cent. The
four loans made during the war were as
! follows:
First War I.oan.-s1oO.0O 900. 900, 3 per
cent, ts~< year. isssssN 1t 97ls. Thesr
bonds are dated December. 1913.
Second War Loan.-sl 90. 900. 600,
per cent. gold, issued at 97ia.- These
bonds mature October !. 1891.
Third War Loan.-s1 30, 900. 900. 81
year. gold, issued at &c, mature March
l, 1887.
Victory Loan.-sl5O,oO o, 600 5ia pei
cent gold. issued at 100. These bond,
are divided into three classes as respect
maturity. The first class natures IN
five years. December I, 1922, the second
| In ten years, December I 1927. and the
third in twenty years, December !
1887.
The revenue OF the, Dominion OF Can
ada for the year 1919 is estimated Al
$500, 100000 and the net debt probably
will reach $4,000, 100000 at the end oil
the year as compared with a net deb
OF sSs7,o0o,ooo at the beginning OF tht
! war IN 1914