The New York herald., 1921-03-01
LOWER INTEREST IN
CANADA PREDICTED
Bankers Say Trade Liquidation
Will Bring ABOUT Decrease
81 Raics.

Specia' Dcspatch ~ TBE Nrw YoRK HERALD,
MONTREAL. Feb. 2S.--Leading Cana
dian Bankers take the view that trade
liquidation which has been il progress
for several months win make for lower
interest rates in the Dominion. which
VIM be cident mostly through reduction
81 yields 81 high grade securities rather
than through the cost of money bor-
rowed from banks. which always has
been on reasonable basis. IN the mean
time the countrys commercial institu-
tions and industries arc meeting diff
culties in making IN worEing capital IN
Wow OF heavy capital expenditures OF the
last few years. Most concerns especially
those doing the largest volume OF busi-
ness. find themselves in need ~ work
ing capital. but are receiving little IN
couragement 70 make UP their needs by
financing and cannot obtain money in
any other way. They src property poor
and lack funds TO finance their current
contracts, which applies 10 practically
All industry but more particularly 70
pulp and paper companies.
Municipalities. however find littlc
trouble in filling their needs. During tho
last week the city Of Toronto sold to 2
Toronto syndicate an issue of S5.037000
Of 8 per cent. bonds maturing in thirty
annual tnstalmeuts. for 9S,9f to yield
sl0 per cent The proceeds Of tho issue
will be applied to street railway and
school purposes. tho former ALLEGATION
taking UP s2500, 900.
The Canadian bond and investment
market continues 10 reflect an improved
tone and shortage Of high grade issues
Is evident more particularly TO Victory
ard other Government issues. The stock
markets. however. arc in 4 transitory
and highly unsettled state, papers slump
ing heavily and tending to disorganize
the balance Of the market, which was
making toward greater stability.
The paper companies. however. arc
gradually completing their fipancal ie-
direments. Spanish River Pub and
Paper. Riordon Pulp and Paper Howard
Smith Pulp and Paper and Abittbi Pow
er and Paper have issued bonds. Bromp-
ton Pulp and Paper is expected to make
an announcement of new financing soon,
Abitihi financing was announced dur
Ing the last week. the company having
sold an issue Of s4.0o0.000 Of bonds 10
Peabody. Houghteling & Co.. but has
rot announced the form OF the issue or
the price for which ii was sold. Tho
Howard Smith Company has sold
si,000.00o Of I per cent twenty-five
year refunding mortsa e sinking fund
gold bonds TO Aldred & 60. for a price
not vet known. The issue is part OF
$1,000 600 OF new bonds authorized. OF
which s3.500.o00 arc to be issued,
f2.500.000 remaining in escrow against
other issues and new timber limits.
Shareholders OF Anes-Holden. Ltd.
which manufactures shoes. will be
asked To ratify on March 10 an issue OF
s2.0eo.o00 OF : per cent. ten year sec
ond refundng mortgage bonds 10 pro-
vide for retirement Of outstanding Dc
beptures and recoup the company with
working capital
u is stated that Of tho authorized (
s10.0o0000 OF city of Paris bonds for
sale in Canada $4,000 900 have been die
posed OF. The balance OF $4,000. 900 viii
not be offered for six months, when they
will be placed on tho market for price
to yield per cent. Tho first offering
was for price 10 yield 6ia per cent.
II Is conceded here that some new
financing may be done in New York by
the Dominion for refunding purposes
Whether such an issue will be made inn
medatcly is not certain. II is proba bic
that s25. 100000 win be raised. Tho pos
sibility OF new financing TO be carried
on by the Canadian Pacific Railway is
interesting but II will depend largely
on general conditions and will reduire
necessary authority from Parliament.
80 statement concerning that proposed
issue is obtainable hero at the moment
and it is still unknown whether the issue
viii be made in New York or London.
The component companies entering
into the British Empire Steel Corpora
tion have simmered down TO tho Do
n1inon Steel. the Nova Scotia steel and
Coal and the Halifax Shipyards. Tile
plan is viewed now with more favor by
investors here. The Canada Steamship
Lines has been dropped definitely from
the scheme. During the last week the
latter. which Is in need Of additional
working funds. passed tho dividend On
its common stock, which was raised from,
I per cent to per cent. about a year
ago.