The New York herald., 1921-06-14
CANADA'S BUSINESS
OUTLOOK IMPROVES
Operations Show Small but
Steady Gain-Money Situ-
alton Satisfactory.

Special Despatch 10 THE NEW YosK HleND.
MONTREAL, June 13.-Wlth midsum
mer practically here It is notable that
since early spring there has been very
appreciable betterment OF general condi
tons in Canada. Although industry is
still very slack, capacity ranging about
rs to 25 per cent. less than that OF last
year or the year before. the outlook has
improved greatly and operations are
showing small but consistent increases
The newsprint mills which have been
tied up by a strike OF their employees
for practically the last month are re-
sumng. The turn came with the accept
ance OF sharp wage reduction by the
men of Price Brothers and the Abitibi
Mills. In other industries, except iron
and steel, little labor trouble is being
encountered. In the steel industry, how
ever, the situation is a mixed one. In
Nova Scotia the narrow gauge railway
men who are out on strike are hamper
ing operations. Actual work on the Gov
ernment steel rail order has been begun
by the Dominion Steel Corporation and
ing employment to 2,400 mon. 1t is not
expected that any difficulty will be ex-
perienced in connection with the con-
tract.
The approach of some tangible form
of settlement of the financial d'fiicuties
OF the Riordan Company, Ltd, was
brought out at the meeting OF sharehold-
ers here on Friday. The company repre-
sentatives laid their cards on the table
and were so Utterly frank in their state
ments that shareholders could do little
else than support the organization. 1t
was shown that the need was urgent IL
the company was to be saved from
LIQUIDATION. More than S13.500.000 in
cash would be required to settle in full
all the debts, bank loans and other liza
bilities of the company.
Needs s5.OOO,OOO in New Funds.
The situation is such that 5000. 900
OF new money must be obtained almost
Immediately. following which an ar
rangement will be entered into with its
unsecured creditors Shareholders have
appointed a committee TO look after their
interests. 1t is now the general belief
that the company will weather the storm,
but the fight will be hard one before
the future can be assured.
At the convention of the Canadian
Bond DealeIs Association in Toronto
financial authorities were most urgent
in making strong case against over
borrowing In this country at present
a tendency badly in need of checking in
this country. especially among industrial
organizations.
The local money situation continues
satisfactory and no complaints are to be
heard in any quarter in which security
of the best kind is available against ad-
vances. Most Canadian banks have
adopted a constructive position. Money
Is lending freely for street md other pur-
poses at around "a per cent. Some bor-
rowers are obtaining necessary short
term funds as low as per cent. They
are, however. usually large corporations
of established earning power and stand
ing. The mortgage market is fairly
reasonable one at the moment, good
mortgages being placed between 6 and Z
per cent.
! 1t is most interesting and encour-
aging to note at this time that thrift
In the Dominion continues n pronounced
feature of the banking situation. On
April 80 savings bank deposits in Cam
ada amounted TO s3S2, ,272. of which
S313,S32,514 was in chartered banks.
These figures are exclusive OF deposits
in Post Office savings departments,
which would add about SlS,000.000 to
the total and bring II to around s400.-
600, 900. equivalent TO about $50 per
apita OF population.
Buildiuu Operations Increase