The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-01
DOMINION BANKS !
| SHOW PROSPERITY
Great Increase In Savings De-
posits Feature Of Report
for May.
NEW YORK EXCHANGE UP
Rate Continues to Move
Against Canada Despite
Good Business Outlook.
specia, corespond.rc, 10 tn, SUN

Special Correspondence to THs Sun.
| MONTREAL, June 30.-The significant
features In news bearing on the flnan
cial position in Canada last week were
on the one hand, the publication of tn,
bank statement for May. showing the
fine Increase OF s3s,se7,ss2 in savings
deposits. and. on the other. a further
advance In New York exchange a,
Montreal, the premium rising to a new
nigh level at 3 lag per cent.
AS to the first, deductions with re.
spect TO the general state Of national
prosperity are obvious. Despite the
elimination Of munition and other wal
business, profits on which entered &c
largely into the rising deposits OF the
war years. the savings of the people
as represented In notice deposits with
the chartered banks touched a new high
mark at $1.107.sss.o72 The gain for the
nrst fve months of the current calendar
year is just under $4,000, 900. a
monthly average OF about S30,00O,0OO.
All the loss occasioned by Withdrawals
10 meet payments on the $3.50, 900, 00O
victory Loan OF last autumn has been
made good. and something more. In
october, 1918, Just as the Government
was calling subscriptions to the loan
savings deposits had established a new
record at sl.076.514,00O. This total
cropped to 1899. 329, 900 by the end OF
november. owing to payments on the
loan. The decline of about 1877 millions
has been followed In six months by q
rise Of 1913 millions.
expectations that the May statement
OF the banks would be marked by a SUBJ
stantial liquidation in current loans and
discounts are verified in the showing
that this item of the statement Is down
about $36.000,000. AS intimated in
previous dispatches dealing with the
position In this respect. the opening OF
spring navigation on the st. Lawrence
would release for shipment a large ton
mage of goods held in storage over the
winter months. AS the goods were
shipped and paid for, the customers OF
the banks were able to pay of advances
from the banks, and, as is usually the
case In these circumstances, part Of the
profits made on this business went to the
swelling of savings deposits.
Rise in Saving. Deposits.
The pronounced rise in savings de-
posts on the one hand, and the pro-
nounced decline in current loans on
the other. represent the most favor
able combination of tendencies shown
In any bank statement for many months.
Savings deposits are the chief resource
Of the banks for the financing Of COM
mercisl business and no great ease in
money for commercial purposes is to be
looked for in Canada when current
loans exceed savings deposits. Such an
excess was established earlier in the
year. when loans were growing faster
than deposits. but this tendency has now
been reversed in the May statement.
While the bank statement In this and
other ways gives unmistakable evidence
OF Canadian prosperity. the exchange
rate continues to move against Canada
The many factors entering into the
depreciation of the Canadian dollar
abroad have been discussed frequently
and at some length In this correspond
ence. and there Is little to be added "a
what has already been said. 1t remains
that the patriotic-also businesslike-
policy OF Canada in advancing credits
to European allies for the purchase OF
Canadian supplies has materially re-
duced cash balances OF the country
available for settlement Of foreign obli-
cations. The penalty imposed on foreign
settlements by the high rate OF New
York funds has been voluntarily assumed
by Canada in order that, on the one
hand. allied requirements in the way OF
wheat and other supplies might be filled
and on the other that industry at home
might be kept active by providing a
market for what Canadians produce. II
Is a matter of elementary knowledge that
this market would have been narrow and
uncertain but for the policy of accepting
the securities OF Great Britain and other
countries abroad in payment of goods
bought here.
1t is more than probable that the ex-
change situation is at its worst. For one
thing. 1t is not likely that Canada will
be called on to finance It's great exports
on anything like the scale OF the past
two years. For another. II Is believed
that the United States will be a fairly
heavy buyer Of Canadina securities in
the remaining months of the year.
The recent rise to a new maximum In
the exchange premium is also to be ex-
planned in part by the fact that to-
morrow (July - Is always one OF Can
ada's big interest dates. The making
of provision for the payments due to
holders Of Canadian securities abroad
has placed. temporarily, an unusual
strain on the exchange market and a
reaction may be looked for in July.
The New Canadian Loan.
THE SUN would appear to have scored
a beat" in announcing on Saturday
that a new Canadian loan OF 100000
900 was being underwritten In New
York. In part to provide for the 375,-
100000 note maturity of August /. A
despatch giving The SUMS statement
OF the loan negotiations was given front
page space I'm the morning newspapers
at Montreal, Ottawa and other centres.
Ames-Holden-McCre Ltd, the
largest shoe manufacturer in the Domin-
lon, submitted a satisfactory statemen.
to shareholders during the week Net
earnings of s632,764, compared with
s624-s01 in 1913 and surplus after
charges and depreciation, amounted to
,323.922. against ss04.0e4. Earnings on
the preferred stock were therefore at the
rate Of 1874 per cent, against 1872 per
cent.
Profits from operation were slightly
below the level reached in 1917, when
the company benefited by the sharp ad-
vance in prices OF raw materials How
ever. the final surplus was larger as,
owing to the stronger financial position
of'the concern. writing on on the heavy
scale OF 1917 was not necessary.
Until this summer dividend payments
had been suspended from July, 1914.
The conservation OF earnings thus ef-
fected has rectified faults in the work.
Ing capital position Of the company and