The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-17

Further-and not the least valuable OF
the services rendered-were the tenn
porary advances made from time to time
to the Dominion Government pending
the fiotation of the various domestic
loans, while all possible assistance was
Afforded in making a success Of each is
sue. The early offerings were partly
underwritten by the banks: but since
these were always heavily oversub-
scribed by the public. the banks were
not called upon to take any portion OF
the bonds.
1t was the policy Of the banks from
the beginning. supported and approved
by the Government, that they should not
invest directly in these public loans
The last and greatest service OF the
banks In connection with these Domin-
ion issues was rendered when. at the
request of the Minister of Finance, they
assumed the burden OF receiving and re-
cording through their more than 1900
branches subscriptions to the Second
Victory Loan and undertook the respon-
sibility of delivering the bonds when
paid for.
Another activity Of the Bankers AS
ISOLATION was the correction Of the alb
normal adverse rate OF exchange for
New York funds which prevailed at the
end OF 1917, caused by the American
embargo on the export Of gold. A mis-
sion composed of memhsrs of the asso-
citation visited Washington and succeeded
in procuring a license to import gold
into Canada to the extent OF SIS, 100000.
No gold was actually shipped, the mere
fact that It was available II needed serv-
ing to stabilize exchange.
Volume Nearly Doubled.
Notwithstanding the national and i'm
perial drains on their resources. the or
binary operations of the banks were ex-
tended TO meet the growing needs of
trade. and every legitimate industry was
able to obtain the funds needed for its
operation at favorable rates. Business
almost doubled In volume, and the banks
wv:~ seriously handicapped by the en-
listment OF thousands OF their trained
men. Their STATS at the outbreak of
hostilities numbered 1854. and when
the armistice was signed more than 5000
had Joined the colors. 1t was a striking
demonstration of the spirit in which
young Canada responded to the great
call
The vacancies were flled in large
measure by women with no previous
banking experience, to whom the ways
| of business were new. Despite this ham
dicap. the routine work was carried on
efficiently, and at the close OF the war
although only usual rates OF interest
had been charged. all the banks OF Can
ada were stronger than ever before. In
| the five-year period of 1914-19lS bank
clearings had increased from $S,073,-
461 900 to $13.77e,332,o0o; deposits from
| S1,03S,377,525 to S1,939.191,S29 and cur
rent loans from $sl9,577.SS7 to s1,23S.-
44l.292. Some Of the banks had raised
their dividends and all of them had
| strengthened their reserves.
| Suddenly thrown upon its own flnan-
! cial resources Canada proved equal to a
| great emergency, but new problems now
arise. Impoverished Europe is the nat
ural market for our exports and II our
trade with that continent Is to be main
tanned in full volume we must continue
for some years. in cooperation with the
Government. to afford credit for the
commodities supplied. For the goods
we import our principal source Of sup
| ply is the United States whose best Gus
toner, next to Great Britain. We have
become. Each succeeding year sees an
increased balance of trade in its favor
until this has become enormous
Canada in the past has leaned heavily
| upon Great Britain, and II was mainly
through tho sums received from abroad
| for development and investment pur.
poses that we were able to adjust the
annual trade balance due TO the United
States This source of revenue Is now
closed, and II the republic hopes tC
maintain her growing trade with us two
conditions are vital: exchange must be
stabilized and facilities must be afforded
to enable us TO pay for our purchases
Both these ends may be attained by in
vestments in our public loans and mu-
nicipal and other debentures. which are
among the safest and best securities In
the world. In this way the United
States will md a remunerative outlet
for the surplus capital which It has &C,
cumulated and at the same time improve
| it's trade with Canada. Moreover, the
community OF interest which has 80 long
| existed between the two countries will
be fostered and increased, to the advan.
| tage of both.