The sun., 1919-10-14
MENACE TO TRADE SEEN
IN CANADIAN EXCHANGE
Buyers From the Dominion Forced to Turn From
American to English Market-Expert
Suggests Remedies

40 " soeN kneson, tho erchdn0e sftr-
ottow bettceen Canddu aud the United
States 10 haping the eject Of drivino
Condition buyers from the American to
the English market; and, " u Is dHotced
to continue as II " at present, 10 may
seriously affect Canddtan trade relations
soith this country. Mr.. r. L. Appleby,
second agent Of the UWion Bank of Can
add IN thts city and head Of ltS yorsSgn
sr,ha1Ds department, has been a student
Of Canadtan-Amertcan trade relations
for q number Of years and has wrftten
for tbs CanddiGn Section of THE SUN
the foltotc|BG article, discussing the Can
adam eZchan0e situation, pointing out
ITS possible effect on trade and suggest
ing O remedy.
by +. l.. APPLEBY,
Agent Union Bank Of Canada.
New York City.
Written Especially for the Ounadton SEQ
ton of TIE SUN.
Fundamentally the fluctuations in the
market rate for Canadian exchange, like
all other foreign exchanges are affected
to the greatest extent by the import and
, export Of merchandise. exaggerated or
modified by the Rotation of loans. II
both importers and exporters of mer-
chandise could offset coincidentally their
payments, fluctuations would be reduced
| to a minimum: and according TO whether
on balance. total imports (including cap
| itaD from all foreign countries were
greater or less than total exports, SO
| would the exchange value OF the cur
| rency crate of exchange) of any coun-
try depreciate or appreciate in the
money markets of foreign countries
Speaking specifically OF Canadian ex-
change, for generations past 1t has been
and still Is a well known condition that
the value OF the Canadian dollar in for
eign countries Is highest during the fall
| of each year and lowest during the
/ spring or summer.
| The reason for this Is that Canada is
! what 10 known as a seasonal country
that il to say, the bulk of its exports are
effected during a well defined season.
why tho Rate FIuctuates.
As the main export commodity is
grain, which is harvested and trans
ported through the great lakes during
the fall (lake navigation usually ceases
not later than December 10 and does
not reopen until April or May) and rust
of exports during a short season ac-
counts for the Canadian dollar being
quoted at Its highest price during this
period of the year.
Now. II only Canadian importers coulo
time when the exporters were receiv-
ing payment for theirs. and II all Gov
jernment> and other borrowings abToa1
could be 80 arranged as to bridge over
the interval. there would be no fiuctua.
lions whatever. but, unfortunately. eacf
trade has Its own fixed customs con
corning date of payment for goods sold
and. worse still. does not concern itseli
in any way with the different dates Of
payment existing In other trades. Con.
sequently, instead Of pooling their in
terests In an effort to effect a more OF
less steady rate OF exchange, the Cana
dian exporting interests are pulling fol
a greater discount on the Canadian dol
lar, while the importing interests are
pulling for a smaller one. In Other
words It Is each for himself and the
devil take the hindmost. This. of course
does not apply to Canada alone.
II is obvious that a remedy proposed
for the benefit of the exporter might mo-
be well received by the importer, ant
viewers also that, to those Amer
lean business concerns which are so wei
organized as to be able to take ad
vantage of these conditions no remedy
is required. In consequence, this article
is meant to appeal, first of all, to thos'
business interests that have suffered