The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-22

war standard would be a slow process
The alternative would be to retire the
notes in fair sized blocks out of the
proceeds of either a sale of securities
to the public or sale OF securities
to the banks. which. in turn, could
reimburse themselves by reselllng the
securities to the public.
The consideration that may delay the
carrying out OF the redemption of the
excess issue is the large demands that
are still entailed by the. expenses OF
demobilzing the army and by the plans
for granting credits on large scale to
the Governments of Europe In the
meantime, conservative enough as mas
been the imitation OF currency in the
Dominion by comparison with the In
filtion In Europe. the economist holds
that 1t is partly to blame for the high
cost OF living.
General business continues active
throughout the Dominion, with reports
bearing on labor conditions showing i'm
provement from the condition in mid
winter. which was never what might
be called bad. Last week bank clear
ings at Montreal established a new high
record of sl25,27s.b29. which compares
with sS9,2951 1928 for the corresponding
week n year ago-an increase of about
20 per cent. Railroad earnings are run
For the second week of April the three
principal systems reported aggregate
gross of $5.4S4.941, an increase of s49,-
Gas, or slightly less than / per cent,
az compared with the corresponding
week in 1918.
bond Market Less Active.
Less active conditions prevail in the
Canadian bond market just now. The
a . ~
bonds of the Dominion Government,
which are now selling ON per cent
basis, against n $50 per cent. basis
at the time OF the Second Victory Loan
of last autumn, is felt to have dis
counted fairly completely the change In
financial conditions since the armistice.
With a new loan In prospect for the
autumn buyers are not disposed TO bid
UP prices from the present level. At the
sane time offerings of the bonds have
been so moderate In volume that prices
continue very firm: the demand is good
enough to absorb current selling. IL lack
ing the aggressivenes5 that character
lied the buying of n month or two ago.
Provincial Government and municipal
bonds having followed the advance in
the Dominion Governments bonds until
the former had established 6.25 to
535 per cent. selling basis. and
the latter a basis OF about $40 to
575 per cent. in the case OF the higher
grace issues. there has also been some
slowing down in the demand for bonds
OF this description The general char
acterist:cs of the market have become
dulness and frmness. in tho case OF
Government and municipal bonds. while
Industrial ISSUES are receiving greater
attention.
one influence in. the halt In the recent
advance in prices Is the fact that Anlerl
can selling Is making an appearance in
the market, Your investors bought
heavily in the early p2rt Of tie winter
a. much lower prices than prevail to-
day. Even with the discount on Mont
real funds nj New York somewhat larger
than at that time. resales Of such pur-
chases can be made at a good profit
The bond market reasons that with your
Victory Loan impending the Canadian
market must expect a certain amount
OF this selling from your larger institu
tons and private investors who are get
ting ready to subscribe generously TO
your coming loan.
An interesting feature in the invest
ment news OF the week was successful
offering OF 100000 twenty year 8 II
per cent. bonds of the United Kingdom
OF Great Britain ana Ireland This
offering, made by the National City
Company, Ltd, the Canadian subsidiary
of enc OF your large bond houses. on
5as per cent. basis, was readily alb
sol bed by Canadian investors. institu-
tional buying being the chief factor in
the success Of the Offering.
Several annual statements issued dun
ing the week by Canadian corporations
showed continuance OF the satisfactory
trend OF their predecessors.
Price Bros. & 60. Ltd. one OF the
largest pulp and paper concerns of the
Dominion. reported profits OF sl,+93,96l,
a new high record. these figures com
pairing with sl,374,7S2 in 1917 and
Sl.2iO,4s5 in 1915. surplus available
for dividends on the company's $1,000
600 capital stock represented earnings
at the rate OF Els per cent, against the
per cent. paid out in dividends.
The Steel company of Canada. well in
the forefront Of Canadian steel con-
Germs. shows slight recession IN earn
inss from the high record established In
1917, but gross profits Of S5,36I,l20 were
with that exception the largest in the
compauys history. In 1917 the total
was s6O4o.3lS, in 1915 s6,o2l. 39l, in
1915 sS230.4J2 and in 1914 to S539,Sll
Writing off was on a generous scale,
the company appropriating for that pur-
pose Sl.i34,i5O as excess cost OF plant
improvements due to war conditions
and S2O,6S7 as ordinary depreciation.
The balance earned on the common stock
was equal to 15.7 per cent, with the
dividend distribution per cent. Total
assets OF the company arc placed at
S45,6j2, S3l, more than Sl4 1000, 900 higher
than in 1914 while net working capital
has risen from s4976.S11 TO S12.222, zoe
in the same period.