The New York herald., 1920-01-11
SUN OF PROSPERITY SHINING
BRIGHTLY FOR CANADIANS,
FOREIGN TRADE RETURNS SHOW
Domnions Exports Surpass Her Imports and Her Customs
Receipts for 1910 Are Greater by Than Her
Finance Minister Estimated They Would Be.

was no advance made In the deposits tn
the Dominion government savings banka
Nevertheless. in 1917 more than sl4. 600 900
twas deposited. sum greater than In 1918
Has Cash in Abundance.
The most remarkable indication OF the
abundance Of cash and liquid assets IN
Canada is to be found In annual state
ments of the leading Canadian corpora
tions. 1t is difficult to present a state
ment showing these In the aggregate. but
in tho case Of ten OF the most prominent,
though not at all exceptional in the sue
cess achieved. the net working capital OF
these in August. 1914. was is.4is.3o5 The
latest returns show net working capital
OF 81, ,%e $50, or an increase OF $52, ,S73. .255.
1t Is modest estimate" states leading
financial authority on the subject, that
the industrial companies OF the Dominion
are as whole s10o.0oo.oO0 better off than
they were four years ago."
Now taking conditions as they affeci
industry, the labor situation cannot a.
described except as dsquieting every
where. but 1t Is remarkable at the present
time that Canada is practically free Of
strikes The Winnipeg strike in Nav
1919, threatened to be a trial of strength
In Canada OF certain labor elements II
was triumph for the better elements in
trade unionism and good citizenship
Since then. as the result of industrial con-
ferences and wise leadership In the unions.
there is much better feeling and Certainly
much more friendly relations.
Wages stin Advancing.
| AS regards wages. they are closely allied
to commodity prices and there does not
appear TO be any valid reason for antic-
I pating an immed ate downward move
ment Of any Importance In Canada or
elsewhere. AT the time the war broke out
and for some time before---also for
time after-unemploymen was manifest
in all parts OF Canada The war itself
dislocated industry and business generally
at first, but conditions soon readjusted
themselves. The manufacture of NUM-
tions, together with enlistment, brought
into requisition every available person,
including many women. and from almost
the very outset wages began to ascend
and have steadily advanced ever since
Practically every readjustment of wages
has been upward. The remarkable fact
that the increase in the savings deposits
OF the banks has been about $500. 900 900
In four years Is proof too, that very
considerable percentage OF wages saved
was put out at interest
Canada has not figured in tho past az
country exporting manufactures to
large extent. The war has materially
altered that and tho Dominion has rea-
sonable prospects of getting foreign trade
in other than natural products. Canadian
AGRICULTURAL implements will find a mar
ket not only in Australia and Great Brit
ain, but throughout Europe. a leading cot
ton company, as an example. has booked
100000 or orders for Roumania. Other
large firms have also booked very con-
siderable orders In various lines required
in the devastated areas The immense
Investment OF capital In mining and snnelt-
/ Ing In Canada In itself insures a large
export while Quebec is the sole producer
Of asbestos. a British Columbia srneiter
has discovered that there will be a large
market for zinc
Paper Prospects Strong.
Perhaps the most attractive prospect IN
the way Of export is in pulp and paper. IN
which Canada now holds an exceedingly
strong position. This industry has had
remarkable expansion in Canada In 1890
the exports amounted to $50. At the end
of March. 1919, they amounted to $ga.-
2s, 1eS. and this industry, II may be stated.
is not one which has been unduly stimu-
lated by the abnormal conditions OF war.
The demand. especially in the United
states. will continue TO increase rapidly
and substantially. Well on to $175.00o,00o
have been invested In the pulp and paper
industry of Canada. the production of
which in 1917 was valued at approximately
500. 10000
There is another question which must be
large factor In the situation. VIII the
big industries be able to carry on with un-
diminished force, now that war demands
have ceased? The following opinion given
by financial expert is probably as gcod
as could be offered on that point
| Holders OF securities of Canadian in
dustrial corporations which produce steel,
cement lumber. bricks and other bu llding
material. and holders OF real estate securi-
ties should realize that during the next few
| years the housing problem in Canada Will
be very difficult one and Will necessitate
construction OF much new building accom-
mediation, thereby creating a strong de-
mand for building materials. In common
with those OF other countries. Canadian
railway and transportation companies.
which normally are heavy buyers of steel
rails and railway equipment. will find It
necessary to purchase largely in order to
re-establish plant efficiency. which has
suffered materially during four years of
war. Many Canadian Industrial and pub
lie utility enterprises have postponed large
construction work and extension during
the war, first on patriotic grounds. and
second because tho costs of materials and
labor havo been so high. In addition to
Canadian demands, there arc the recon-
struction and food necessities Of Europe
10 be taken into account as we'll as the sub
stantial world demand for agricultural
and animal products. for nickel. asbestos.
lumber. pulp and paper and other prod
fnr ha rti nf uvbf
possesses facilities second 10 none In the
world. When the conviction once becomes
firmly grounded that present price levels
are likely TO be maintained for some time
to come. we look for a strong revival OF
Canadian business activity