The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-12
CANADA MAY OFFER
BIGGER LOAN HERE
Success Of Last in New York
Market May Bring New
One in Fall.
EXCHANGE rs INVOLVED
Heavy Buying in America
Might Set Serious Con-
dition Right.
by a ssas corsspS.dsn, o, Tns sus.

MONTREAL, Quebec, July 11.--Suecees
market this month leads responsible
Montreal financial leaders TO predict that
the Federal Government will negotiate
. larger loan there in the autumn. The
sum Of o.ooo, 900 will be required to
meet the obligations voted by Pariia-
ment over and above estimated revenue,
In connection with rehabilitation and
capital account Exchange remains
above three per cent against Canada in
New York. which entails burden on
Canadian trade estimated at more than
two hundred million annually. Canadian
imports from the United States show .
decrease for April and May, ana are
likely to continue to fall unless the ex-
change improves The recent $4,000, 600
loan In to meet obligations due August
1 and has not affected exchange.
II 10 believed that loan in excess Of
the adverse trade balance would set ex-
change right for q year. Meantime
Canadians would give attention to main
tanning the trade balance As things are
going advocates Of imperial preference
have a strong argument which they are
arises. The cost to Canada 10 not only
an exchange percentage on the annual
trade balance Of Ss74. 900 in 1913 and
1898 200, 900 in 1919. flsoal years ending
March 81, for private bills are paid d.
rect and the exchange IL not on the In
ternational balance only.
Canadian exports TO Great Britain last
fiscal year were S531.920,s77 and $S4b,-
4so.oss for the previous year. Canadian
imports for those two years only
amounted to S154,8a1,61s from the
United Kingdom. Now that shipping is
available imports from Great Britain
should jump. 1t is therefore important
that the exchange handicap on American
trade with Canada should be removed as
soon as possible.
It Is pointed out here that the Ameri-
can Government and fnanciers declined
to help Canada finance sale Of the crops
of the last two years in Britain by a
loan to the United Kingdom to cover.
Since Canada buys more than she sells
to the United States there was standing
| reason. 1t 10 asserted, why generous
policy should have been followed. So
far Canada has not put an embargo or
sharp restrictions of any kind against
American imports. 1t IL important to
preserve TIN friendly relations in trade
as In war and promote trade between
tho two countries. both imports and ca
ports
The entire amount of the proposed
loan could be sold In Canada. Bank re-
serves and savings are at A record level.
, and investors are not lacking for new
! enterprises, but exemption from taxation
Of all war bonds and tho adverse ex-
change are factors to be considered.
With the exchange at a premium In
New York. Americans have an excep-
ticnal opportunity to buy foreign securi.
ties. Competitors are at q disadvantage.
II the policy of buying securities and
selling goods, but not buying. should be
followed. the debtor nations would ulti-
mately be compelled In self-protection 20
adopt artificial tactics. Certainly. 20 far
as Canada Ia concerned. a broad gauge
trade policy will not only yield the best
return from the second best customer
but promote n large Pan-Americanism
with Canada, now recognized as a ma
| tional entity by the Peace Conferences
and a stalwart for the North American
idea In democracy.