New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-05
Big Canadian
Crops Expected
To Aid Business
Sentiment Gradually I'm.
proving i'm Dominion With
More Signs of Stability
Apparent in Many Lines
Special Dispatch 60 The Tribune


MONTREAL, July q. There ARE
three potent forces which are militat-
ing against more speedy trade adj
justment for the Dominion. The first
is the chaotic conditions of finance and
trade throughout the world: the second
is the lack of credit which is effecting
a marked decrease in trade overseas,
and the third is that pessimism is still
rife.
1t is probable that the country could
bear up pretty we'll under the two for
mer conditions, but the last named is
troublesome. The natural inclination
of the business men and workers
throughout the country is along ag
gressive lines. Stable business and
trade is the point striven for, but un-
less the action is a uniform one it
cannot be completely effective.
There is less gloomy sentiment noted
at the present moment, however, than
at any time since the depression set in.
The fact that industry is not producing
and that the countries of the world
who need Canadian produce and need
it badly, but are unable to pay for 1T,
is disconcerting. At the same time
there seems to be little unrest in the
country. There is not a very heavy
dustrv is SO to 60 per cent active, and
money is available to sound borrowers.
Sound Judges of Canadian economies
hold to the opinion that by the autumn
the outlook will have bettered ma
| terially.
settlement of the British coal
miners strike has tended to cheer
sentiment to some extent, although 1T
was never thought here that the result
would be any different than as it
turned out.
A point which has created consider
able hopefulness during the recent dull
Canadian banking institutions and
their ability to take sound grip upon
the situation at a time when such was
most needed The last bank statement
issued by the government showed that
call loans in Canada, as at the end OF
May, rose in a month to 11,251.l0",
while call loans outside Canada at
1857, 1865, were also very much
higher. Total call loans increased IN
the month over $4,600,000 1t was not
generally realized that the banks were
adopting such free policy in respect
of loans at this time. Most OF the
money loaned on call has been, it is
said, for commercial purposes. This
would seem to indicate that the hqui-
dation of inventories has not yet pro.
ceeded to the point Of extinction of
high priced goods. On the other hand,
the situation is being offset somewhat
by the lessened demands from financial
and stock market firm in view of the
lower range of prices and the COM
paratively small public participation in
the stock market.
What Canadians are looking forward
to now is the coming wheat crop. If
forecasts are fulfilled and the crop is
bumper one, there will probably be
distinctly better turn taken in bust
ness. Meantime preparations for the
clearing out of the old crop are pro-
ceeding and it is not thought that there
will be any serious overlapping at ter
minal points.
The steel industry is still tagging be-
hind AS matter of fact, production
in May was the lowest of any month
of this year. The June figures will
probably be somewhat better, however
In the paper industry the lettering
forces are gradually being cleared
away with the result that before long
it is thought that the mills will be
operating under steady pressure at a
fairly high rate of capacity.