The New York herald., 1921-05-17
CANADIAN BUSINESS
CONDITIONS BETTER
.sH,I
Credit Restrictions Relaxed as
Business Initiation Is Prac-
sg9cs
sarrr tically Over.
NEW TRADE LAWS PLEASE
Beer Expected TO Make Mon
fa treal More Famous-Bud-
get for 1921 Issued.

c'sy>esol Despatch 10 THE New YORK HERALD.
MONTREAL, May 16.-There has been
Hrecently an apparent betterment in Ca
! nada's general industrial and trade posi-
ton. but, naturally. one more basic than
actual. Nevertheless. il has been well
acome and Is notable in several direc-
( lions There has been relaxing of credit
restrictions by leading banking inter-
ests owing to the fact that initiation In
general business has been pretty well
squeezed out and money is needed oy
large corporations and others intent on
developing business along more normal
Tines
TT Is notable that Canada has wealth
cred the storm well, although industry
I has been brought practically to stand
! still through necessities OF the times. but
those most heavily affected may pos
sibly be those who will derive the great
! est benefit from a normally expanding
business from now on.
A situation being followed with a
4 great deal OF interest Is that at the coal
mines in the maritime provinces. Re-
ports emanating from them indicate that
change for the better was effected
recently, and present operations are on
! q fairly generous scale and show signs
ot expanding. Already several ship
1rents OF Canadian coal are on the water
eia,route to British ports to relieve con-
ditions in them. and before long that
. business may take on very active ap-
pearance.
Railway equipment people here are
: Iaking a more optimistic view OF the
Z outlook. The placing of an order for
1000 tons of steel rails for the cana
dian National Railways with the Al
St
taken to indicate that more orders Will
follow and that before long the rail-
Ways will be definitely in the market
for their equipment needs. The roads
have delayed purchases as long as the
,sphysical condition Of their services can
stand. and they cannot withhold their
lSbusiness much longer. The order VIII
assure the Algoma plant OF the Cana
;Aian 500 full capacity operations for the
.2Aext two months and give employment
TO upward Of 1000 men,
s8 Paper situation Mixed.
Nj The situation in the pulp and paper
SEdustry is much mixed one. On
MAY II the men at the Abitibi Power
&nd Paper and st. Maurice paper
tlants walked out, bringing the num-
her of mills closed down on account OF
1abor difficulties to five major COM
panies They include besides the two
Mentioned, Price Brothers Co.. the
Fort Francis Company and the Spanish
River Pulp and Paper Mills, Ltd. The
situation at all mills OF the Riordon
sCompany, Ltd. is much unsettled, but
not for the same reasons. The financial
.oy orries of the latter company are acute
and it's pulp business has fallen away
Very markedly.
Che lumber business at the moment
Is most unsettled and no one Will Ven
ture a definite opinion on the present
situation or the outlook. Certain Brit
ish Columbia companies are said to be
busy, one organization reporting large
order for railway ties from China and
another a large Oriental order for
shingles.
The steel companies are passing
through a period of considerable un-
certainty and depression. Structural
Organizations report Improvement in the
outlook for their business. but other
still are waiting for defi-
mite turn in conditions.
: In the textile industry the outlook
~eems more than promising. After the
sig slump last fall textile companies
promptly took their losses and wrote
down their inventories without mercy,
which resulted in their ability to accept
&iI, new business offered as soon as
n was available. Their operations are
on fairly satisfactory scale, varying
from between 40 and 10 per cent. Of
their total capacity.
Montreal probably will assume soon
the leading position as a brewing COM
Juunity. and. in the opinion OF many.
will become as important a factor in
the industry as Milwaukee was In the
old days before prohibition in the United
states. The fact that the Minister Of
Finance in his budget for 1927 definitely y
removed the luxury tax OF thirty cents
q gallon against beer has done much
10 accelerate the business, and this
week the demand for the product has
exceeded all expectations In the event
Of the tax abolition. Officials of brew
ing companies here are more than
pleased with the turn of events, and
1t is understood that some large de-
Hvefopments in the industry are planned.
They do not fear prohibition in Quebec
for few years at least.
a. budget for 1921 Handed Down.
BY far the most important develop
pnent of last week in Canada was the
handing down of the 1921 budget in
Ottawa. Most business interests have
taken a favorable view OF the new trade
laws, especially the abolition of the
much dsliked business profits tax
which has been a deterring force ever
since Il was enacted. The manner in
which IL is proposed to raise necessary
yevenue, however. Is criticised. as 4,