The sun., 1919-05-13
GAINS SHOWN IN
IMPORTS TO U. s.
Imports Fall Off, Reducing
Net Balance Against Can
ada $82, 100000.
MUTUAL OUTLOOK BRIGHT
Industrial Financing Contin-
ues Good-Railway Control
Proves Unsatisfactory.
Special DespatcA 10 TIE anr

Special Despatch to THE Sos.
| MONTREAL, May 12.-Although the ex-
change rate continues highly unfavor-
able to Canada. the premium on New
YORK funds at Montreal rising last
week to new high record Of 2 9f-32, an
analysis OF the Dominion's trade returns
Tor the fiscal year ended March 81,
Just issued by the Bureau Of Statistics
at Ottawa, reveals the DEVELOPMENT Of
important factors in favor of Canada.
exports Of Canadian produce to the
| United States In the twelve months
| onded with March were by long odds
me largest on record, amounting to
si5<,s23,170. against the previous high
| OF $t7.S12,so7 in 1s17-1s1s and $780,
6l6,SSO In 1s16-1917. While exports
| from Canada to the United States were
| Increased about s37.0OO,O0O imports
from the United States fell of about
S45,000,000. the net balance against
Canada being thus reduced about ss2,-
100000. as compared with the year 1911
1913.
Statistically. the record Of the last
three years showing imports from the
United States, exports to the United
states and the net balance against Cam
ada-ts as follows:
1919. 1918 1917.
United States s74s ss7 500 s7s1 sos1gf ses4 2s $50
Exports to
United States t6i, ga 10 t7.sl2so7 2so,sIs. 800
Balance in fav-
or OF L. s. s2s2 Ola $50 1914 oes 80 $3.50 sos
The ratio OF Canadian imports of
American goods to total imports showed
Dut little change In the last year, stand
"a
with about SO per cent. the previous
year. but the increased volume of Cana
dian exports to the United States is OF
large Significance in view Of the coun-
try's effort to broaden its foreign trade.
Exports Of Canadian goods to the
American market increased in the la 81
year i74.000.0 900. or 81 per cent. as
compared with the year ended March
81. 1917. while In the same period Cana
dian imports from the United States in
creased only $50 200, 900, or 2 per cent.
The significance of the showing would
seem TO be that while the United States
Will continue to furnish the bulk OF the
goods required from abroad by Canada
there Will be steadily broadening de-
mand by American importers for Cana
dian goods, and trade between the two
countries will tend to greater equili-
brium.
natural resources are not ineXhaus-
tible. however generous the supply. and
In some directions the United States
will come to depend on Canada for sup
plies formerly furnished from within
her own borders. The rising ratio of
Canadian exports OF pulp and paper TO
the United States Is an indication of a
tendency that will assume larger pro-
portions. At the same time. II the popu-
Iat'on of Canada is to grow as we hope
It will grow. 81 is Inevitable that the
American exporter will find a constant
ly broadening market for his goods on
the Canadian side of the border line.
New War Loan in September.
The first official reference to the new
| Canadian loan. in prospect for the lat
! ter part OF the year. was made in the
House of Commons last week when Sir
| Thomas White made the brief announce
| ment that such loan would be offered
to the people of Canada. probably about
| September. The amount of the loan is
| conjectural. The Minister of Finance
has asked for an appropriation OF $780,
100000 for rehabilitation and other
expenses, but the proportion TO be
| raised by borrowing and the proportion
| to be furnished out OF taxes Is not
stated.
The general opinion in financial cir
cles IL that the nominal amount of the
loan will be 100000. 900. but that n
drive will be made for 800. 000, 900 to
s200.o00.000 in excess of that amount
| Any excess over the actual requirements
OF the Government would be used for
credits TO European countries.
Industrial financing continues TO re-
veal confidence in the manufacturing
outlook of Canada as well as IN the
sufficlency OF investment funds Last
week two new bond issues Of fair size
were announced. The Mettagami Pulp
and Paper Company, in which both Ca
madam and American capital IL inter-
| ested. is having an issue OF $4,000. 900
| I per cent. convertible debentures I'M
! derwritten, while the Howard Smith
| Paper Mills, Ltd, is arranging for an
issue OF 100000 first mortgage bonds.
The Mettagami company is planning to
enlarge its output of sulphite pulp from
| 10000 to $4,000 tons year, although
| the initial installation was completed
! only short time ago. The Howard
Smith mills, a manufacturer OF bond
papers. has been enlarglng its export
business and will use the proceeds of
the sale OF securities to add TO its plant
! capacity and increase its working cap
| itaL
Government Control of Roads.