The sun., 1919-04-29
CANADA SAYINGS
GAIN $19,OOO,OOO
Increase Indicates Little I'm
employment and CONTINUE
ance of Profits.
BOOM IN BUSINESS SEEN
Interests and Dividends Will
Distribute $25,OO0,O0O
on May 1.
Special Despdtch 20 The SUI.

Special Despdtch 20 TIE SUI.
MONTREAL, April 2s.-An increase OF
upwards Of sle.ooo.ooo in the saving,
deposits Of the Canadian chartered
March statement to the Government
just published. 1t reflects most encour-
agingly the continuance OF habits OF
thrift formed in the war years. and
despite the closing down OF munition
factories. it is evident that there has
been little distress from Unemployment
and that profts in business have con-
tinued to hold well.
While the post Office and other fg-
ures from special savings banks have
to be reckoned with in estimating the
savings OF the Canadian people, the &C.
cepted barometer Of the situation is the
return OF the chartered banks. which
conduct an overwhelming proportion OF
the banking business of the country.
Taking the March return, the combined
| figures OF the chartered banks show an
aggregate OF S1,037.S51.766 as the total
In the savings deposit account. This
compares with Ss3s,329.271 at the end
of last November. the month in which
| Canadians had rolled up the record break
ing subscription OF s660,00o.o0o to the
Second Victory Loan, and s1.076,5l4. 000
at the end of last October. when a new
high mark had been established. OF
the decline OF s137,1S4,0o0 in savings
deposits. directly attributable 10 the loan
operation OF November. just a little less
/ fl,at, haa IL
\ the steady monthly gains through De-
cember. January. February and March
BY the early summer the figures should
break into new high ground.
Other items OF the March statement
| show a continuance OF active business
conditions Circulation. for instance
after declining in the early part OF the
year. increased upwards Of $500, 900
or close to per cent, as compared
! with the end OF February. Current
loans and discounts in Canada rose up.
wards of s2l,o0O.o0o to ;1,117,ls7,446
a new high record. while total assets OF
the combined banks at S2,612.163,711
were S36,s72.2o0 higher than at the enc
of February.
Big Gain in Credit.
The large demands for credit entailet
by high commodity prices are indicated
in the fact that the current loans ant
discounts of the banks are now $230,
600, 900. or about 26 per cent. higher thar
at the corresponding date a year ago
Your own situation is more or less paral
leled in this showing. 1t cannot b,
claimed that business in either Canads
or the United States Is as active as a
this time q year ago. when both countrie.
were straining every nerve to increas,
| nTndIlCtiOn IN,
None the less. 1t is taking more none,
to finance what business IL going. chiefly
because OF the four years advance II
commodity prices to the end Of 1911;
and the comparatively slight recession
since then.
1t may safely be assumed that tn,
current loan item Of the Canadian bank
will be llqu dated fairly rapidly when til,
spring movement OF goods sets In from tn,
Port OF Montreal. Accumulat on OF ship
ments for overseas pending the opening o
St Lawrence navigation is normal con
dtion to be reckoned with as the wlnte
wears on. Bankers. however. will fee
more at ease when this liquidation set
in. for while there Is no evidence o
strain In the situation II remains tha
the Increase In current loans in the yea
has been Just about double the increas
in savings deposits, which form tn
basis of the banks lend ng power.
Notwithstanding tho indications OF
strong demand for money for Commercial
purposes, the call money market a
Montreal is a good deal easier than
has been for many months. The BAN
J rate for loans to the stock exchange re
mains unchanged at 6 per cent. but pri
vate money Is offering freely at materia
concessions from that rate. The bank
themselves would appear to have bee
lending more freely to the Street. 70
J in March call loans of the banks in
creas ed upward OF Ss.0oo.o00 TO $s7.
6o1.337. Only part OF that increase
ascribed to market operations. however
the larger part being due to municipa
and corporation financing, necessitatin
temporary advances to investment house
pending the distribution OF securitie
: bought by them
Continued strength in New York eX
change at Montreal remains an unset
Ting influence on trade between Canad
and the United States The premium o
New York funds continues firmly estab
lished above the 2 per cent. level. wit
only minor reactions from time to time
Toward the end OF last week the hIghes
quotation on record was reached whe
New York remittances cost as much a
23-32 per cent. above par.
Deficiency in Exchange.
Nothing new has been added to IN
discussion OF the reasons for the hig
rate. As explained number OF time
in these dispatches It is due largely I
the fact that Canada Is making cas-
settlements for the debit In her trad
with the United States. while her credi
in her trade with Great Britain Is TEN
, porarily ineffective as an exchange facto
because OF the arrangement whereby
considerable part OF the credit is finance
by mutual arrangement between Lon
don and Ottawa. In other words there is
deficiency of Canadian bills OF exchang
available for settlements In New York.
Banking authorities attach some i'm
portance to the cessation or virtual ces
satlon OF American buying OF CANADIAN
securities as n factor In the renewe
strength OF New York funds in the pas
week. Reference was made in thes
dispatches last week TO the fact that tn
approach of your Victory Loan cam
paign was being reflected in a slowiu
down of American buying. while som
American selling had set in. Condition
In that respect were even more pro
nounced in the past week when you
campo ign actually got under way
:, EiaWq n Whathar ba nno,,;no -