The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-15
seems to DO little dinicuity in dlsposins

--.rss.---------
seems to DO little dificulty In disposinr
| Of them.
i The Victory bonds. which were &c
extensively spread among the entire
population during the last two years
are passing rapidly into the hands OF
| the wealthiest classes at a very hand
some profit to their original purchasers
and the latter are looking for reinvest-
ment opportunities and are willing to
4 take n chance" The Dominion bonds
are the only security exempt from the
Federal Income tax, and the long term
bonds would be considerably higher than
their present price of 105 to 10C but
Tor the expectation that the final war
loan, due this autumn. may also have
to be offered free of income tax.
| New York funds continue very high
being over three points premium through
out the week. There seems no reason "a
expect any important drop in them for
good many weeks to come, unless
| interest rates in New York fall OF or
Canada is assured of speedy export
| transportation for bumper crop.
| There Is still too much uncertainty about
the size OF the crop, the facilities for
moving 1t to the European market, the
| extent to which Canada will have to
finance the European purchasers of It,
and the prospect of selling securities to
the United States during the rest OF the
year, to suggest any good reason for
exchange coming down. The recent sale
OF Canadian Government bonds in New
YORK was a refunding operation only
and did not affect the exchange rate at
all but the cost of the operation to
canada was high enough to make 1t
very unlikely that any part of the
autumn loan Will be offered in the New
York market.
Embargo Causes Annoyance
Canadians are hoping that the EN-
oarRo upon the expectation OF British
capital. which now applies equally to
investments In British overseas domin-
Ions and in Hungary or Honolulu, will
shortly be lifted in favor OF the former
countries before 1t is repealed as con-
Germs non-Brittsh areas. There Is a
very large amount OF capital in Great
Britain awaiting investment on more
favorable terms than II can secure there,
and the restriction is causing much an
noyance, which could be alleviated with
out any bad effect on sterling exchange
and with great benefit to the outlying
portions of the Empire by making the
embargo apply to non-British countries
only.
iHo tenuefbCy or tne montreal STOCK
market, while generally upward, is now
spotty. and is largely Influenced by talh
OF prospective mergers There Is talk OF
this kind in regard to steamships mill
ing companies. steel companies. power
companies and equipment companies.
and there would be talk about paper
companies II they were not so strong
marketwise as not to need it All
such talk is at present very vague.
but nobody doubts hat there will
be several large industrial combinations
in the near future. One reason is that
very prosperous companies see a means
of diminishing their heavy taxation
under the excess profits tax by combining
with concerns OF less brilliant earning
capacity and thus spreading their income
over a larger capitalization. Quotations
on the present market seem to be in
fiuenced largely by man1uvring Of diff
ferent companies to establish better
terms for themselves in these prospective
combinations the current stock market
price being naturally q large factor In
negotiations.
The boom for the Hon. W. s. Fielding
for leadership OF the Liberal party Ia
favorably viewed by financial interests
His appointment would put a check on
the aggressive anti-capitalist element In
the present opposition and put the Liberal
party strongly on the side OF n moderate
policy. At the same time he is trusted
by the common people, being himself a
poor man and having never had close
associations with any OF the great cor
porations
The following table gives the total
sales. high. low and last prices and net
changes of all stocks and bonds traded
in on the Montreal Stock Exchange for
the week ended July IL, 1919: