The New York herald., 1921-04-26
CANADIAN BUSINESS
SITUATION Is GOOD
Industrial Activity is Develop
ing Slightly-Conditions in
Europe Are Crux.

Special Despatch to THE New YORK HERALD.
MONTREAL, April 25.-The Canadian
financial and business situation con-
tinues good Domestic conditions are
sound but European developments have
financial basis undergoing sever meta
morphosis Industrial activity Is devel-
oping slightly and bankers look for more
normal domestic conditions within few
months. probably by autumn. unless
further severe world unsettlement is
brought about in the meantime. Fac
tories are being urged to resume work
with all possible speed and placing or
ders is being encouraged in all trades.
Stocks available 10 the ultimate con-
sumer are at low ebb in most lines.
Comparatively little new financing has
been announced in the last week. Such
a letup is to be expected, as considerable
financing has been launched recently
and more is held in allegiance until the
market is cleared up somewhat. Over
loading tactics are being avoided in the
bond market and in that connection
larger banks and financial institutions
are takig a leading part. A saturated
market would mean extreme difficulty
for Canadian Industrial enterprise at
this time.
The Government of Manitoba is about
to issue s2,540,0 900 OF 51s per cent.
Treasury bills preliminary to floating
a bond Issue for a similar amount Pro-
ceeds Of the sale OF bills Is to meet capi-
tai expenditures. The $2.000.00o or
Province of Alberta 6 per cent fifteen
year bonds were sold to a Canadian cor
poration at 96.42. their sale thus costing
the Province 6.3S per cent. The town
of Sudbury. Ont. has sold 55f 900 Of
its per cent. twenty year instalment
bonds, bearing per cent to a Toronto
firm at 91.218, their proceeds costing
the town Ills per cent
There is q paucty OF good securities
payable In New York in the Canadian
bond market. The floating supply OF
such issues seems to have been fairly
cleared up and during the LAST Two
months or so such securities have ad-
vanced several points and are at a
premium. The advantage to the Cana
dian investor buying Canadian securities
repayable in New York is a big one.
especially as long as the premium on
American funds in Canada is more than
10 per cent.
The expected new financing for Ma
tional Breweries, Ltd Is definitely off,
according TO statement made by the
president of the company. 1t was de-
cded that the issue be abandoned In
view of the fact that the company was
able to obtain privately all the money
that It required.
During the last week the sudden and
drastic break In the price OF the Riordon
Pulp and Paper Companys common
stock on the Montreal Stock Exchange
has been an extremely unsettling factor
The break was one Of the most severe
ever recorded here, the price of that
stock falling from 107 to 33 within a
few days. In July, 1920, the stock sold
as high as 226. It's par is 500. The
company is the holding company for the
Riordon Company. Ltd. the securities
of which are traded in In the local un-
listed market. Its common fell from AZ
to and its per cent. preferred from 60
TO 10. 1t is understood that all divi-
dends on the company's stocks will be
abandoned for time at least The COM
pany Is In good physical shape for a pulp
company and owns and controls the
largest individual timber limits In the
world. It's real worries are purely finan-
cial ones 1T Is understood that about
Sl1.000.000 In new money and credit
Will De neeueu 10 cover It's working cap
ital needs and take care of It's accounts
payable. The issue of s4,000,000 OF it's
per cent. convertible securities, which
was about to be made. is apparently off
until interests controlling the company
and bankers interested in It have de-
cided on a definite plan for salving the
huge organization.
The break in the stock imposed an
other severe strain on the stock mar
ket, but a serious crisis was averted
on the second day of the big slump. All
market danger is said to have been re-
moved Early next week the company
will issue n definite statement.
During the week the dividend on the
Brompton Pulp and Paper Company's
common stock was cut to 81 a share,
placing II on a 81 basis instead of on
one of 81 as heretofore. Several months
ago the company's old 500 shares were
divided two for one into non-par value
shares Consequently its present divi-
dend is equal to per cent. on It's old
stock against one Of IA per cent. former
ly. At the time OF the split the old
stock bore per cent. dividends. The