The New York herald., 1920-01-11

r" YdlLG prosperity sheds it's rays
..s.. "a: Vs's ss d. States: s,s:. s:s' he; j;
the North American continent.
Canada is enjoying a prosperity almost
equal to that OF It's ne!ghbor
When the Dominion Minister of Finance
made up his budget for 1919 he made an
optimistic estimate OF the revenue to be
Ireceived from customs duties. lie knew
that these had been high under war con-
ditions and he felt that it was matter OF
prudence to expect decline. Tho unex-
pected has happened. The PURCHASING Z
power of the community was given full
rein for the first time in five years and
instead of declining the purchases abroad
Increased. Instead of facing a decline in
customs duties of sl4,o00.oo0 there is an in
Icrease for the calendar year OF $l6, 10000.
In brief Sir Henry Drayton has $4,000, ono
more revenue from this source than was
expected.
The foreign trade returns have similar
story to tell Canada-s exports were swol
len during 1917 and 1918 by huge shipments
OF shells and other munitions. Canada
made e5 ,OOo, 900 shells for the British army,
though before the war not single shell
had ever been produced, even for the con
sumption Of the Canadian army. When
this export stopped and while factories
we're changing over to peace production
Il was natural to expect a decline. 1t
came. but 1t was smaller than was ex-
pected. During the twelve months ending
November 80, 1919. the exports amounted
10 s125l, ,Osi, $40, as compared with 81 ,30),-
7e1, ,OS5 in the last twelve months Of war.
The small decline in exports did not offset
the pair in imports and Canada's total
foreign trade showed slight increase.
Indeed. in foreign trade Canada stands at
the moment seventh or eighth among the
nations of the world.
Exports Pnss Imports.
A short review OF Canadas position be-
foro the war and its progress during the
war will be found interesting. Canada be-
to-e the war imported much moro than she
l.~,orted. OR as one financial writer has
expressed it,
"Tha salient features OF the economic
nosition of Canada shortly before the war
were the enormous predominance OF i'm
nor,s over exports, the failure of the ex-
norts of the country to expand in propor-
tion to the immense amount of external
capital which was being borrowed ard
upon which interest had to be paid and
tho consequent shortage Of cash and liquid
assets in the treasures Of corporations.
in the vaults of banks and the purses OF
the public.
This tendency the banks had set out
with some success 10 combat some time
prior to the war. Canadian imports for
the fiscal year 19l3-l4 amounted tn $6ls.-
,57174 and exports ca me TO $455. .<37,2s4 A
similar proportion had existed some years
before. Canada was borrowing heavily
| from Great Britain for federal, provincial,
municipal and railway purposes. and iIil-
mense sums OF British money were being
invested in Canadian enterprises. British
financial experts had called halt in that
respect. little dreaming that Canada was
soon not only to send her sons to help the
Motherland but to lend her credit as well.
In so far as the balance of trade is con-
] cerned at the end of the fiscal year lsl7-ls
imports amounted to $962.543,746 and ex-
lports ST. $40 or, ,7SS. or course. the war Is
responsible very largely for this remarka-
lble reversal. For the calendar year 1919
Canada's favorable balance of trade will
be over $3oo0oo.0oo Moreover, Canada as
a nation has ceased to borrow money from
abroad. or practically so.
i The Dominion still gets money from New
York and for industrial purposes much
American money finds It's way into Cam
ada. In fact. financial relations are rather
intimate and money flows both ways
4 freely. However. in the main, Canada ha S
been financing herself. or the total OF
81, $50. .000o 900 debt of last June. seventy-fsve
per cent was debt to Canadians and the
balance had been incurred prior to the
war.
oversubscribed Inst Loan.
Canada has SUCCESSFULLY floated rer
! sixth loan of $o0ooOo.0'0. which was over
subscribed by about s400.o0o0o0. s were all
1.-The preceding loans. Debt. however. is
only relative after all. About thirty years
ago the debt OF Canada, compared with
revenue represented six years pur-
chase. The year before the war. although
the debt had Increased by over 1000 OO',
Il represented only two years purchase.
Last year. with the sudden augmentation
of war debt Ii went up to five years
purchase, and after this present loan has
been completed Canada will be where X
was thirty years ago. back to DEBT
repre- nting a six years purchase.
Although a difficult thing to arrive at
even approximately careful survey OF
Canada's wealth-what might be termed
productive value of reaiizable assets, in
dependent Of undeveloped natural re-
sources-gives a total of $4,000 10000
Placing the prospective debt at $4,000 600. .ooo
Canada has assets nine times greater.
Figuring the population at 100000. the
average wealth per citizen Ia about $1,000
or quite equal TO the estimated average
wealth per head in the United States.
One of the best indications OF prosperity
and substantially in Canada Is tho saw
lings deposits of tho country. Notwith-
standing tho large sums raised In war
| = L.. oh. knr
hanks on May 81 were 81. 107. $685. .07o. as COM
pored with sS63.9i5,750 on the Same date in
isI4. AS large number OF depositors are
OF the class who subscribed 10 tho loans,
lthis result Is really remarkable. There