The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-26
SUCCESS OF LOAN
DOMINION'S HOPE
Government Relies Upon Peo-
pie. to Bridge the Gap in
Finances.
BIG EXPENSES CONTINUE
Machinery to Check Profiteer-
ing Slow in Producing Ex-
pected Results.
BIG EXPENSES CONTINUE

Special Correspondence to the Canddidn
Section OF THE SUN.
OTTAWA, Aug. 25.-Canada Is prepar-
ing to absorb her sixth domestic loan
within a period Of four years. It has
been semi-officially announced that the
new fiotation will be launched by the
end OF October and that while terms and
conditions have not been definitely deter
mined, the interest rate will probably be
~ per cent. and the total $300, 900.
Success Of the loan Is the Govern
ment's main hope of bridging wide gap
between public expenditures and de-
ficient revenues Some idea OF the sit
uation may be gathered from the fact
that, while the aggregate OUTLAWS OF the
current fiscal year will be $500, 600, 900,
the estimated revenue from ordinary
sources Is but $3.50, 100000. Figures
just issued show that while revenues for
the first four months Of the fiscal year
(from April l to August ~ totalled
500, 900, 900. expenditures on consolidated
fund totalled $76,000,000 and on capital
words, expenditure for the four months
exceeded revenue by almost 100000
600.
For matters concerned with or aris-
Ing out of the war, the country Is still
spending a million a day, while on pub
lie works and other domestic services
Il outlay has increased since peace
came. For the first four months of tho
fiscal year expenditure of the latter class
totalled $4,000. 900. as against $32,
600 during the same period in 1918
Decline in Trade.
The situation Is made more difficult
! by a decline in trade. For the first four
months of the fiscal year the total trade
for the Dominion was s65S,000,0 900. Tnis
| represents a falling away of approx
mately S42,000.000. as compared with
| the same period last year; and II the
same record be maintained until the end
of the year. the decline will be consider
able.
Trade with the United States con-
| tinues to show a decidedly adverse bal
ance. In May, for example, imports
from the United States totalled S5S,000,-
900 and exports only $35,000,0 900, while
in June imports were S61,000,000 and
exports but $29,000,000. 1t is this fac
| tor-persisting in spite of the best eff
| forts of the Government to discourage
| it--that accounts for unfavorable eX-
change, a situation that makes improb-
able the placing Of a portion of the new
loan in the United States, although It
| Is fully expected that considerable
| american money Will De sent 10 Canaua
and invested in the bonds payable here.
Those most closely connected with the
launching of the new loan are not with
out apprehension With the effects of
strikes still felt throughout the coun-
try, with the Western wheat crop not
entirely a success, with the'cost of living
soaring, the impulse of war patriotism
gone and the Government not overly
popular it is felt that it may require
a long and hard pull to make the flota-
| ton success.
Mr.. Meighen and Mr.. Calder. who have
been in the West surveying the damage
brought about by drought. are expected
! back in Ottawa this week and will prob
ably announce a policy of Government
assistance. Meanwhile the Government
has dealt with the problem Of marketing
the wheat crop by guaranteeing the
farmers s2.14 a bushel, which is IL cents
a bushel less than the price fixed by
! the Government of the United States.
The Governments guarantee does not
I necessarily mean that the Canadian
| farmer will receive less than the Amer
| lean farmer for his wheat. 1t simply
means that no matter what happens he
is certain Of getting $2.14 a bushel, and
that in the event of market quotations
exceeding that figure the Government
will see to it that he receives the diff
| ference
Political Unrest General