The New York herald., 1921-02-22
CANADIAN BUSINESS
Is MORE CHEERFUL
Better Feeling Accentuated by
Progression Of Events and
Springs Approach.
NEW FINANCING PLANNED
Investors in Fairly Liquid
Position and Prepared for
Conservative Purchases.
NEW FINANCING PLANNED

Special Despatch to THH New YoRK HERALD.
| MONTREAL. Feb. 21.--A feeling of
greater cheerfulness pervades Canadian
business and financial circles. That
feeling is somewhat accentuated with
the progression of events and spring S
| approach. General business is adopting
a more confident attitude and is becom-
ing less pessimistic as to the immediate
future. Commercial business is practi-
cally at standstill, shelves have been
pretty well cleared out and more activ-
| ity is being noted by jobbers and whole
salers. That backward adjustment of
\ demand soon will, 1t is expected perco-
late to the manufacturer and the basic
producer. when the real Improvement
probably will set in.
Financially, the last week has been
one Of uncertainty, but making in a
general way to a Qualification OF the
! situation. 1t has been felt that further
liquidation in pulp and paper stocks was
imminent and that such liquidation
probably would place such issues on a
better footing marketwise. To some
extent that selling of the papers has
naterialized and prices have declined
sharply in the last few days Accumu-
lation of industrial stocks continues and
demand for public utilities Is fairly con-
stant. Good bonds and other high grade
securities continue in fairly steady de-
mand
The cut in the price Of export news
print paper to S110 a ton, or 515 cents
pound. for the second quarter of 1921.
announced on last Thursday by the
Canadian Export Paper Company, was
easily the predominating topic OF inter-
est in financial circles. That price is
IN marked contrast to the export price
OF $3.50 ton, or ~ cents a pound, for
the current quarter Last years aver
age price was 3 cents, and certain mills
averaged less on their years business.
Paper stocks have undergone further
depression, therefore. and also because
or the fact that in Abitibi heavy selling
which took place was reported as on in
side account for realizing purposes.
Some weak margin accounts also went
under The stock rebounded fairly Well
from the low OF 41% to around As.
1t is understood here that financing
by several leading pulp and paper COM
panies is in contemplation and will be
undertaken just as soon as market con
ditions warrant. The reason for much
OF such new financing is said to be to
cover up on construction in hand or
completed-as well as to bolster UP
working capital.
An offering of S4.000,000 of Mount
Royal Hotel Company, Ltd, per cent.
convertible debentures for 100 and in
terest with bonus of 40 per cent OF
common stock. is being made here. The
Mount Royal Hotel when completed Will
be under the United Hotels Company OF
Americas management
A small block of Sac Paulo Tramway
Light and Power Company. Ltd.--S250,-
000--5 per cent. first mortgage bonds,
due in 1929. is being offered here for a
price 10 yield per cent
Announcement OF an Offering OF
so, 000, 600 francs OF Paris Orleans Rail-
road Company in 6 per cent. bonds, re-
deefnable at par in drawings not late.
than 1855. has just been made. The
price is 1920 in Canadian currency a
100 francs bond. Principal and interest
are secured by the French Governments
guarantee.