The sun., 1919-03-04
BONDS ABSORBED EASILY
United States Exporters Get
Advantage Over Dominion
Men in British Trade.


lions in November. were up to $50 mil
lions by the end Of January. A recov-
cry Of about 10 millions in December
was followed by one Of about 81 mil
lions In January.
Inasmuch as intalments arc still
being met on the s66o.ooo.ooo accepted
by the Government from subscriptions
to the loan this Is an encouraging and
In many respects n remarkable show
ing. Adding together savings deposits
and deposits subject to withdrawal on
demand, the total to the credit Of the
Canadian public at the end OF January
was 1913 millions. against .720 mill
ions on the eve OF the loan. 1t may be
said. too. that the portion of the loan
remaining unpaid Is very small, most
subscribers having elected to pay in
full at the time of the subscription.
Only a very small proportion of these
subscriptions was financed by advances
Il ON the banks II the call loan item
Of the bank statement 10 studied 1t will
be noted that the extreme rise IN the
figures over the period of the loan no
tation was less than 16 millions, and
the January statement now shows
downward tendency.
Banks Not Loaded with War Paper
While comparisons are odious 1t is
pertinent to draw attention to the fact
that the banks themselves in contrast
with your banks are carrying no load OF
war loans. Their direct subscriptions
to all the internal loans fioated in the
war period amounted to only sbo.oO0,0O0.
That subscription was made to the hrst
loan of 1915, and the bonds then taken
were sold out on rising market in a
few months time.
roughly to about $3.50. 900. all Of II
short dated treasury bills, OF which
about s20o,000,000 represents British
Government obligations and about $780,
O0o,eO0 Canadian Government Treasury
bills. The January figures as to the
latter are not presently available. but
the estimate is close enough for practi-
cal purposes. Before the Government
brought out its Victory Loan OF last No
vember temporary advances by the
banks had risen to 27S millions. but
liquidation is now in progress out OF the
proceeds OF the loan. In December the
Government paid off about seventy-one
millions and the Anal figures OF the
bank statement for January may be ex-
pccted to show a further sharp decline In
this floating debt
In any event. instead of tho long
| term Liberty Loans which are tyins
up so considerable a proportion OF the
funds OF the American banks, the Cana
dian banks are carrying in war securi-
ties only short dated paper. with two
years to run at the most. and good
deal OF it now nearing maturity. This
makes a very comfortable and healthy
position. the resources of the banks be-
| ing freely available for the financing OF
the ordinary commercial business Of the
country.
Bond Sales I'm War Period.
An interesting summary OF the finan-
| cial activities of the Dominion during
the war period has just been compiled
| by E. r. Wood, president of the Domin-
ion Securities Corporation, and an &C
copied authority on the Canadian bond
market. Mr.. Wood estimates sales OF
Canadian bonds for the five years 1910
to 1914 at S1,417,4sl.922. of which total
Canada absorbed 1895 per cent. the
| United States 1850 per cent. and Great
| Britain 1910 per cent.
| The total sales for the war years
1915 TO 1918 inclusive, are placed al
S2,207,140.715, OF which Canada alb,
sorbed 61.74 per cent. the United State.
3i.06 per cent. and Great Britain 4.2(
| per cent
The shifting of the proportions cred.
| tied to the three countries Is striking
| The ability of tine Canadian people tc
| finance a large part of the war costs
has completely upset all competent bank
| ing opinion OF four years ago. In a further
| analysis of the figures, for instance. Mr.
Wood points out that OF all moneys
borrowed by the Canadian Government
during the war S0.2i per cent. was fur
nished by Canadians.
! Your own money market supplanteC
London as the chief source of new CAPT
tai from outside OF Canada. and tn,
placing of "a per cent. as the Ameri
can pN-centage Of purchases OF Canadian
bonds in tho war period does not TAX,
Into consideration the very considerable,
amount of bonds bought in the opeI
market after subscriptions to new issue
had closed.
Advantage for American Exporter
Reconstruction orders from Europe ar
developing very slowly and there has beel
little or no change in the situation a
compared with recent weeks. The Cana
I dian Trade - 1,mis6toEers abroad con
tinue to express the opinion that on
best market in the immediate future will
| be in the Balkan States.
There is some complaint that the Brit
ish restrictions on imports are operating
unfavorably to Canada as against tn
United States The system by which i'm
ports are regulated on the basis OF i'm
ports in the earlier part of the war. 70
instance, gives the American exporter
distinct advantage over the Canadian
The concentration OF effort on the wa
had necessarily restricted the actlvitie
/ OF Canadian exporters in many line.
while yours were free to go after an
obtain British orders.
Now that the Canadian exporter
getting back to peace business he find
that his market in Great Britain
largely In your hands, and. because G
the British regulations limiting imports
he Ia unable TO expand his business TIL
argument that in effect Canada is bein
penalized for her early entrance into tn
war Is being used in bringing pressur
pm London to have the present restric
lions modified.
The outlook In respect TO exports G
Canadian foodstuffs Is becoming NOR
: favorable. Great Britain, IL Is oficlalI
announced. will be back In the markt
for such Canadian products as bacon /