New-York tribune., 1919-08-21
canada Plans
s25v,OOO, 900 Bond
Issue i'm October
r~,ects to Put Out Internal
loan OH 5H Per Gent
Rasis: Exchange Rates
Again Slump Heavily

~. nom;nion Of Canada is planning
i". ;.,arnal loan of approximately
an an, nno 400. it was learned yesterday.
sseo'vvs '.,,,,nrement Of the terms OF tho
An q. am" ,r;ll be one of the first highly
ereui. ..rt acts of Sir Henry Drayton.
impol oh chairman of the Railway Com
l"i" a, in Canada, who recently sue
missy msIs Sir Thomas White as Minister
Oh .s.nordjng to the preliminary infor-
-, that has reached bankers here
ma''u ne .,, honds will be offered to the
anhTc sa in October, at 5h per
pao. hasis. without tax exempt
.rrss CEN This rate, which has
haar mentioned in authoritative Cana
ass s.sr circles, is, IN the opinion of
anntors asan far less than Canada would
saao S"no to nav for loan in this coun-
nav In the recent $4,000, 900 loan,
n.i;eb .S was offered here by syndicate
""i " hankers headed by J. T, Morgan &
r. the Weld to investors was $50
~ w. cont. and conditions of the invest
rt p.' market at that time were re-
~arded e", as more favorable to borrowers
.Ssn at uresent. Chicago and Canadian
hantsrs underwrote SS00O.000 of Prov
;rcs Of Ontario bonds q short time
aro sr1s and offered them TO investors on a
81 per cent basis.
Rate OFF Per Cent
Although the exchange rate IS more
.ban GER cent against Canada, the
norinion Finance Ministry, 1t is said.
fsels that it would Ae inadvisable to
borrow more in this country in the
near future. The Canadian authc critles
share the British view that an adverse
sxrhange situation viii act as bar
rier to extensive pure bases of mer-
cbandjse in this country and thus Ore
vent the unlimited plllng up Of IN
debtedness. But Canada. bankers say,
especially objects to paying the high
interest rate which the American in
vestment market would demand.
The Dominion needs funds, however,
as its estimated expenditures, Cana
dian fnanciers believe, Will exceed the
probable income of the government by
s500,000000 this year. The net in
debtedness OF the Dominion has been
placed at 100000 OO0 Bankers here
expressed confidence that the Dominion
would be able TO raise large sum of
money through an internal loan.
Discuss Foreign Financing
The banking community continues
to discuss other foreign financing, but
the consensus Of opinion Is that i'm
pending European and South American
loans will be delayed until the fall,
when, it is expected, the investment
market will reveal more aosorptive
power The market is still described
as soggy.
Reports Of the consummation Of a
5000 100000 loan to France to halt the
last depreciation of francs failed of
confirmation yesterday. although bank
ers frankly said French credits were
under discussion. Financiers who have
made 8 close study Of French condi-
lions expressed the view that at least
a s30oO00,00 to S400O0000O loan
would be needed 20 stabilize rates on
Paris at the present low level.
Rates on London, Paris, and Rome
again slumped to new low levels yes
terday. The pound was quoted as low
as s412A cents for cables, and closed
at s416A. The low constituted a fall
Of 6A cents in one day. Of ii cents in
& week. At the close the dollar would
buy s.15 francs and it took 9.57 lire
10 make dollar