The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1921-03-17

. FuEkVeF INNN NOsVtUaI pFtNt9n
ACKNOWLEDGEMENTS Tariff Ees-
ters American Branch Faetoriss-
Hundreds Have sprung UP Since
Customs Duties chansed--Ameri-
cans Already Have a Billion Dollars
Invested In Canada.
recent feature OF Canadian Amer
lean relations which has not aroused
much comment. but which may have
far-reaching influence. Is the readiness
Of American Investors to tnke mort
gage on Canada aud the completeness
OF Canadians in giving the mortgage
More than two-thirds of the bond
borrowings by Canadians last year
were placed In the United States.
says a Toronto dispatch to the New
York World. The remainder OF the
capital was supplied by Canadians
themselves.
Not the Whole story.
The amounta are substantial. Total
bond issues for railway improvements.
public service corporations. private
industry and municipal and provincial
governments were s3lS.332,O0O. OF
which United States investors took
s214.i77,000. These hgureS. impress
slve though they are, fail to tell the
whole story OF the movement OF Amer
lean capital into Canada.
The situation that Is being crea ed
Is entirely new and Is result to
large extent of postwar conditions.
As recently as 1910 the United States
took only n per cent Of Canadn's bond
issues, and before 1914 never bought
more than 20 per cent In those pre-
war days Great Britain was the great
source OF Canadian capital. As the
war progressed outside capital was
shut of and for time Canada be.
came almost self.contnined. Now that
borrowing has been resumed II Is to
New York and not to London that pill
grimages are being made.
Exchange rates have much to do
with this new development. When the
British pound Is worth only 81 In
Canada. and an American dollar is
worth $1.l5 we get In round figures
the following results: $500 In New
York money will buy Canadian bonds
with a face value OF S575. but El00 In
London money viii buy Canadian
bonds OF a face value Of little more
than $500. II by the time the bonds
mature exchange returns TO normal
| the New York investor would gain $50
and the London investor would lose a
like amount on the $500 investment.
Therefore II Is not surprising that the
supply OF British capital Is being cut
OF.
British Capital Vanishing.
What Is happening In fresh issues
In the bond market where pledges are
Of a public or semi.public character
Is happening also in renewals and in
more private transactions. There has
been In the last year or two tire.
mendOus withdrawal Of British cap
Ital from Canada.
Here is q case IN point: 4 Scottish
loan company holds mortgage for
100000 on a manufacturers ware
house In Montreal. II happens to fall
due this month. Under ordinary cir
cumstances Il would have been re.
newed with an adjustment, II neces-
sary. Of the rate of Interest. But by
demanding that the mortgage he paid
on now, the Scottish company obtains
premium OF 10 or ~ per cent In
British money. And such n demand
is therefore naturally made. II the
Montreal manufacturer cannot raise
the 100000 locally, he goes to New
York for Ii.
The same kind of thing Is happen
Ing all over the country. One OF the
reasons given for the collapse or nj
least postponcment In Grant Mordens
big steel and ship merger was that
the British Investors In the enter.
prise would have lost $5.000.OO0 In TX,
change by sending money TO Canada
Mt the present time.
Another factor that Is helping the
movement along is the familiarity OF
American investors with Canadian
conditions and their obvious conf
dence In them.
The Daughters OF the Empire are
waging an energetic warfare agalns,
the showing OF American picture films
In Canada and in favor Of the import
ing OF the British product. They are
touching only one of the most super
fcial OF the manifestations OF Amer!
can influence In canada If they want
to get at the real problem they will
tackle the inhltration of American
capital into Canadian industry as seen
In the purchasing OF Canadian secur
tiles outlined In the foregoing, ami IN
the establishing OF branch factories oi
American industries
Protection EVaded.
Proteclionist politicians for 10 year,
In Canada have urged. the Necessity
OF keeping out American imports
Canadian industry for the copadhr
people,. sCanada for Cahadhps,'
"Under Which Flag1" have been som,
VARIANTS OF tie baitlec CTS 60 which the
II,rs-,,a,g.fafs I'm - {fsnlf Gpruatftnag pr,