The sun., 1919-07-15
MONEY PRICE HERE
SURPRISES TORONTO
Bond Men, HoWeUer, Vie.D
Situation CheerfulIy.

Special Correspondence to tho Canadian
Section OF THE Sun.
TORONTO, July 14.-There is no doubt
that the price paid by Canada for money
In the New York market last week was a
surprise TO financial circles here. For
two OF three days before the details were
announced there we're hints that we
should be prepared for high figure, ana
friends OF the Finance Minister were
discussing the conditions which had TO be
faced with view to lessenlng the shock.
The fact that provincial and municipal
loans have been hoated on the Canadian
market for some weeks past on a basis
OF to $40 per cent. made 1t hard TO be-
lieve that The Dominion of Canada would
have to pay per cent or over. including
commission. In addition. there was the
fact that Canadian war bonds have been
at a price which sent the yield down TO
below 8 per cent.
The fist impulse was TO believe that
the Finance Minister had been worsted
through the necessities OF the case. for.
the money being required to liquidate a
debt in New York, II was highly desirable
that the funds should be secured there.
especially in view OF the high adverse
rate Of exchange should the money be
sent over from here Further. there will
be a large domestic loan here in the fall.
by taking s75,000.0o0 out of 1t now and
spelling the effect o. the next appeal.
Some of the fnanciers were inclined
10 say that Sir Thomas White always
seemed to strike bad luck when he vent
to New York for money. In this case
he had to face keen competition In the
bond offerings OF other countries and a
multitude of Industrial issues. on which
the yield is per cent. or more. with
NJ en-
When. however, the loan was oyersub-
scribed after the books had been open
only three hours. there was return to
cheerfulness on the part of a section OF
the local bond men, for they saw In Its
success its justification. 1t was taken
for granted that the quick realization of
the money would have a keen tonic ef-
feet on Canadian credit in the United
States and pave the way for future
loans Of various kinds. 1t IL no secret
that the Dominion loan OF two years ago
was not the success II should have been,
as about s25, 100000 out OF the $780,
OO0, 900 offered on your side ultimately
came to Canada 1t may be some time
before the Canadian Government will
float another loan in New York, having
developed a big home demand for
bonds but provincial and municipal
issues will be frequently offered.
The net effect OF the new price level
for bonds, compared with prevailing
prices here, is expected to mean a
higher yield on Canadian issues on your
side. and THIS may have an effect here.
AZ present there is large accumula-
ton Of money for bond investment
here and, with a relatively small num-
Der OF issues, prices have been high and
the yield correspondingly low. An inn
| mediate effect OF the loan price last
week was to send down the price OF
war bonds here until the yield went up
| above per cent. II Is possible that
a considerable volume OF war bonds was
sold here 20 enable the holders to In
vest in the Canadian loan in New York,
for II is estimated that at least Sl0,-
100000 of Canadian money was sub
scribed for the New York loan, despite
the handicap Of exchange and the Inn
piled request that the home folks desIst