The sun., 1919-05-20
BASIC FINANCIAL
STRENGTH Is GREAT
Rcport Of Bank Of Montreal
Shows Total Assets Of
S489, 100000! d.
WHEAT EXPORTS GROW
High Premium in New York
Exchange Aids Canadian
Borrowers.
sr,ciai DespafcA 10 Tnn Soy.

Special Dcspatch TO THn Sun.
MONTREAL, May 1s.--while the Bank
q, Montreal has had TO face increasing
easily in the forefront OF Canadian
banking institutions With the Bank of
commerce and the Royal Bank pressing
II closely for time, on the score OF size
alone, II again drew away into a fairly
easy lead by the absorption of the Bank
OF British North America last autumn
With assets of 100000, 900 In round
numbers. 1t ranks not only as the larg-
est bank in Canada. with a farflung in
ternational connection as well, but It
also ranks up among tho large banks Of
the world.
Something more than size counts in
estimating banning values, however, and
this Bank Of Montreal-at its inception
n moro or less local institution-stands
out In prestige to-day in much the same
relation to the banking business of Can
ada as the Bank OF England does TO the
banking business of Great Britain. It
is the chief depositary of Government
funds, acts as fiscal agent for the Do
minion in important borrowing oper-
atoms and for a number OF the provinces
as well.
without the role OF n bank of redis-
count like the Bank of England. the pos
ture OF the banks affairs il studied as
an index to general conditions within
Canada IN much the way as the affairs
Of the Bank OF England or the Bank OF
France or the Reichsbank are studied
by students of affairs In the countries
indicated.
This being so the statements issued
by the Bank Of Montreal take on more
than usual interest at home and abroad
a.. Nl,,N t., h.
statement for the half year ended April
80 the bank presented the other day an
array OF figures convincing as to the
basic strength Of the financial structure
OF the country as we'll as OF the bank
itself Total assets. as already noted.
are roundly $500. 600. 00o-actually $4Ss-
teO. 000---on April 80. OF that substantial
total the bank was carrying no less
than S293,sSo,7 0S in cash and liquid as
sets such as balances due. International
securities. call oans. &C.. this repre-
serting no less than 65.S per cent. OF the
banks total liabilities to the public.
Actual cash on hand in specie and
Dominion notes amounted to S7S.s5l,11S,
equal TO about IS per cent. of public
liabilities, without taking into count a
deposit OF s24.700,O00 in the Central
Gold Reserve at Ottawa against excess
note circulation.
As usual the hank Is maintaining a
very strong foreign reserve. the I'M
changing policy of the board for many
years back having been to hold large
sums Of readily available funds at New
York and London against the possibility
Of some financial crisis within the coun-
Try Call loans at London and New
York, chiefly at the latter centre no
doubt amounted onn April 80 last to
s7s,s53.440, representing about 1871 per
cent. Of the total assets of the institu-
lion. vhile balances owing by foreign
banking institutions amounted TO about
$4,000 900 against Sl,20l,oO0 due TO
banking correspondents abroad.
While maintaining this position OF
great strength, the bank continued
large lender to business, commercial
loans in Canada approximating sloS,-
100000, in addition to loans of sl4.l42,-
900 TO municipalities, &c. Total deposits
were s3e3. 900, 900. of which $26S, 0oO'-
600 fell within the classification q IN
tersst bearing or savings deposits.
The opening OF spring navigation on
the 81. Lawrence has stimulated cuisines IS
in Canada in many directions. For IN
stance, in the past week some twenty
Eve steamships sailed for Europe with
grain cargoes totalling 100000 bushels
ci neat alone. Exports OF flour Tor
the week were about 100000 bags. and
the milling companies are presently OPP
Grating, after an irregular schedule
through the winter, on fun capacity
basis with some promise that operations
T.,, continue active for some weeks
ahead.
As noted a number OF times in these
dispatches, the carryover OK wheat from
he 1918 crop is fairly large-at the
md Of April about 100000 bushels
against less than 4. 000, 900 a year before,
when the country had been drained OF
Is surplus stock TO meet the pressing
needs OF Europe. The substantial car
'ryover OF grain inevitably means a
good deal of commercial activity in the
spring as railroad traffic and the many
allied branches of transportation SER
yioe benefit and wholesale trade IS
simulated by buying from country
points
As matters stand, wholesale trade Is
very active in practically all lines. and
he returns OF the summer season should
b. excellent. The trend in the autumn
months will depend on the results OF the
aew harvest
BBIldInE Activity Grows.
In Canada as in the United States
here has been nothing as yet TO APP
proach some wartime conceptions OF the
activity that would develop in bullolns
once the war was over. The returns Tor
ne first four months OF the year in the
dominion show an encouraging tendency.
but the encouragement Is derived chieny
from the fact that there is perceptiole
Improvement over the new record level
touched in the corresponding period OF
1913
Thus building permits issued by thlr-
N-SN canadian cities in April totaled
'..s5'S97, against s3,065,s73 in 1913,
H.2-0.2ll in 1917. S3.256.2s4 in 1916
ana - i0S.ls0 in 1915. But In April
I'l% when the last building boom was
eliminating. these permits fell Just
snort Of S2O.O00,0 900, and even year
later, when Industrial reaction had set
W. the total was In excess OF $l45OO,-
700 Allowing for the greatly increased
cosy OF labor and supplies between 1913
ana 1919, IL is plain enough that the
actual volume OF new building repre-
Sented In these estimates of costs is
Ou'g seventh to one-tenth the vol
'ne OF the years just before the war.
Competent opinion IL still divided as
whether active building operations
must await a definite change for Ihe
"er IN the capital COST * construc-
ION or "hethA- :se very urgency OF the
--S'ls situation will force new con-
sNuctlon on large scale. The scarcity
AHeetng business az well as residence
poperty In city like Montreal.
lH.Hl