The sun., 1919-05-20
MAPLE LEAF MONEY
DISCOUNT TO STAND
Present Position of New York
Funds Not Likely to
Change Soon.
CASH DEALS A HANDICAP
Purchases Made From e. S.
Paid For, While Exports
Are Credit.
ASH DEALS A HANDICAP
Special Despatch TO THE Sun.

cpcCSof DcclutcsA W AhE CUN.
TORONTO, May 1s.-There is a growing
feeling that the present position Of New
York funds which puts Canadian money
at o discount OF almost 3 per cent In the
| United States Is not likely TO be rene
died for some time to come. The price
of exchange has been high for almost a
year, running between and 3 per
cent, and for the last fortnight has been
only a fraction below the higher figure
At first, superficial observers were f..
clined to think Il was just the result OF
heavy payments due in New York al
the end OF a month, or something like
that, but as the weeks pass and there is
| no sign Of appreciable reduction It would
seem that the causes lie considerably
deeper.
| There Is, of course. tho obvious eT-
PLANTATION that the balance OF trade b.
tween the two countries is heavily ad-
verse to Canada. That condition. how
ever, has been in existence since early
in the war. In fact, long before that I'm
ports OF manufacturers formed great
part OF the trade between the two coun
| tries. For munitions making many
scores of millions Of dollars worth OF
steel was imported, and that trade has
only now slackened Off. AS yet there IN
nothing to take Its place In volume. and
imports from the United states are be
ginning to fall off. while last month ex-
ports from here to your side actually
showed an increase.
| Canada Faces Problem.
Meantime, the premium on exchange
stays high, and the explanation seems 10
lie here: although Canada's export blss
ness is still in an extremely health
| state the nroducfS Co rnaiulx, IN ENirg-
pean countries, and for them this country
has In most cases to give credit Instead
OF receiving cash. On the other ham.
the purchases from the United States
are for cash. It will readily b.
seen. therefore. the handicap under which
Canadian finance lies when Scll.,-
mainly for credit ard buying mainly To-
cash. If credit could be transferred fro1
ICanada's buyers in Europe to the sellers
In tho United States the position Of eN,
change might be stabilized, but a. III
is impossible 1t would appear. I" H.
opinion of bankers here, that there $ 7.
early remedy in sight.
Canada has already n large ha,ano.
OWING from Great Britain, and has "a.
Gently advanced credits to France, B.
GUM, Greece and Rumania for goods -
be furnished by manufactures AMI c.
porters here. Already Rumania Is as
l h'b Aoi anu cLIiNo llSI N4tA'F '''
been exhausted Is making private az
proaches to manufacturers Offering tIrH
Rumanian securities redeemable in 1927
without interest. The prospects of q r'.
Spouse to such a proposal do not s OF
bright, unless the Canadian Government
upon whom so much dependence IS placed
nowadays in international matters, s.eQ'
in and backs the Rumanian notes
What will be the effect OF the heav
discount on Canadian money h '.
United States? 1t would be hard 20 s9'
to what degree II would retard trade IT,
pass through the streets and witness tn
large quantities OF Southern fruits now
In our stores does not suggest tHat re"-
pie are tired of Injuries or inclined ''
save money on these non-esseUt.a'7
the same time, the 8 per cent. premium
is equivalent TO an addition az 1-.
cent. to the customs duties. ''-"nfNs
that is too small To startle any ape ~
these days OF the larger view IL e>itaa'
New steel Plant Planned.
Meantime the movement OF American
industries to Canada progress a.
, seems to indicate days OF smaller imp b
tations, at least OF articles that arc rt'
materials in industry. Announ1,me'' b
: Just made of n new steel plant {" .'
structed ut Goderich. Ont, hy H.. --A"'
Huron Steel Corporation. capital s.1 70
Sl5.0O0,000. II will be "a sort %. ana
gamation Of four or five comPaH,'s ''
Guiding Detroit automobile con'ar',
, ST. Paul tractor manufacturer and '"o
or three companies on the olh''
> making steel products. They N'.
: sue the process completely from 'T'
the steel product stage, aud % '-
tended by this means to supply lI.
To the value of many millions q ~
which are now imported. J. T. Ma.
: of Newark. y. j.. late steel tN1.''
the Imperial Munitions Board here
: be vice-president OF the concern
The location OF the plant Will have Nr,
l siderable value strategically, because ''
I good water and rail facilities.
: Ore will be brought from Lake sly
= rior and coal from Lake Erie, VINE
railroads are there to facilitate d.-
5 button. The new project recalls
Y plans for the Canadian Steel Co-2'.
a ton. subsidiary of the United sra
Steel Corporation, for a grea' ''.n' =,
the Canadian side of the Douo' l'E
\ just south OF Windsor. SOM
been done on this. but action N'-
pended during the war pendH- 20 ''
I