The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-19
MONTREAL EXPECTS
FURTHER DECLINES
Strain on Canada by the Forth
coming Loan Given as the
Chief Reason.
FOLLOWING TREND HERE
Farmers at Sea Regarding
Price Of Present Wheat
Crop.
FOLLOWING TREND HERE

SOfVCHD0WOHWCG
Section Of THE SUN.
MONTREAL, Aug. 1S.-The chief topic
OF discussion among stock market fol-
lowers here as in New York, is whether
the present depression Of prices from
their recent high levels Ia a mere tenn
porary reaction or the beginning Of a
major downward swing. Even II Il is
only minor movement, however, there
Ia a widespread feeling that depression
may 60 a little further before recovery
sets In. The strain that will be put on
the county by the forthcoming loan Is
the chief local reason for the belief that
real renewal of buying activity Is
likely to be deferred for several weeks
The expectation that British buying of
Canadian securities will be permitted
at an early date 10 similarly a strong
local reason for the belief that activity
VIII return after few weeks; for all
Information from London is to the effect
that there is an immense amount of
new capital there awaiting the first op-
portupity to embark In enterprises yield
ing somewhat more than the prevailing
British rate Of return. and Canadians
are confident that this capital can be
directed to Canada with very little
trouble.
But both Of these are local factors,
and II IL recognised here that the main
trend of the Canadian market 10 likely
to follow very closely upon that OF New
York In the coming months, so that
the situation In the United States is
watched more carefully than our own.
There is a feeling here that the labor
problem and possibly also the, credit
problem are getting into United States
politics to an extent which will cause
them to be factors for uneasiness until
the next Presidential election. or at least
until the party nominations. For the
long run this Is reassuring for Canadians
have immense confidence In the common
sense of the American people when 1t
gets a chance to declare itself on
national scale but for Immediate stock
market purposes II would be more salts
factory to get such questions as the
syndicalizing of the railways out of the
way a trifie more rapidly.
Uncertainty in wheat Market.
The lack Of wheat market IL another
factor making for uncertainty. Nobody
has the slightest notion how much the
Canadian farmer will realize upon his
present crop. and that Is vital element
in the calculation OF the amount of
money there will be In the country for
general business purposes next winter.
The Government has not committed it,
self to anything except the belief that
Canadian wheat could not look after it.
self In an open market against the
United States grain control. and that 1t
must be sold through a centralized
agency. 1t promises to pay the farmer
something on account and eventually
the full price that the centralized agency
can get for his wheat. but 1t has not
named either the amount to be paid on
account or the eventual price.
A large element among the farmers Is
deeply suspicious of the whole scheme
and convinced that the grain board will
sell their wheat to Europe cheaper than
they could have sold II themselves. The
rest OF the country, on the other hand.
is equally alarmed lest the Government
through the wheat board should pay the
farmers a price not justified by the final
market price to Europe and charge up
the deficit to the taxpayers. The only
consoling feature is the exchange rate
the Canadian farmer could be paid $2.26
in Canadian money and thus led to sup
pose that he was getting the equivalent
of the American price. and he would
still be getting only about S2.15 in Amer
lean money. The Canadian Government
would probably like to see the exchange
rate remain as II Is or New York funds
20 even HigHcT until the CIOp lrdHsdC-
ton Is over and a good block Of the
new bond issue has been sold to Ameri-
cans.
Events of the week in financial cir
Giles were small but on the whole ia
vorable. The destruction of the Port
Colberne elevator. which greatly adds
to the difficulty OF getting the Canadian
wheat crop out through the present re-
stricted outlets, was the only serious
drawback. Chairman Smithers Of the
Grand Trunk Railway arrived on Mon
day a plain ordinary citizen. but his
knighthood came after him on Tuesday,
and Sir Alfred Smithers proceeded to
Ottawa to negotiate upon socially equal
terms with Sir Robert Borden. The con-
viction is now strong that the Grand
Trunk will either be purchased on terms
satisfactory to the stockholders or not
purchased at all.
Big Strikes Come to End.
Labor troubles were Strengthened out
in>several quarters: The protracted
Dfdmheller (Alta.) mine strike is re-
ported to have ended with the driving
from town of the o. b. u. organizers
the Dominion Textile strikes In various
mills have all come to an end wholly
favorable to the company: the metal
trades strike at Kingston, Ont, IL said
to be practically at an end eight lead
ers of the Winnipeg strike have been
committed for trial on sedition charges
and refused bail because they used their
freedom before the preliminary hearing
to stir up strife and dsaffection all owe.
Canada. The anti-profiteering operations