New-York tribune., 1922-10-08
Canadian Business
Still Evinces Fear
OF Eastern Crisis
Chief Attention, However, is
on Harvesting Of One of
Biggest Grain Crops Ever
Produced; Loan a aSuccess
(specsai Fina.eta1 oorreapondencs)


MONTREAL, Oct. 6.---While conf
dence is again being restored In Cana
dian business and industrial circles
there is still some fear evinced regard
ing the situation in southeastern
Europe. The effect Of resumption OF
hostilities upon Canada might be very
pronounced. inasmuch as the country
is now heavily burdened with debt and
is making valiant efforts to tighten the
load. What another war might meaa
would be hard to say, but 1t would
be anything but favorable in
fuence.
just now, Of course, all attention is
turned to the West, where harvesting
OF one Of the biggest grain crops ever
produced in this country is now near
ing an end. This is releasing a great
deal Of money which has been with
drawn from the East and where it is
now badly needed. The farmer seems
to have disposed Of his wheat in un-
usually quick order this year, the war
scare having furnished him with a
market of some temporary strength,
of which he was keen to take advan-
tage. The Canadian farmer has also
had preference over the American
farmer In the matter Of price, and thiB
has helped him great deal. The re-
suit is quick cash return. end this
rapid liquidation Of the crop will go
far toward Strengthening the financial
position Of the country as a whole.
The heavy seasonal demand for
money has been we'll handled by tho
Canadian banks, and while the stock
and investment markets have, quite
naturally, suffered to some extent on
this account the ultimate result of the
situation cannot be otherwise than
constructive
During this month nearly $4,000, 600
is being distributed in the form Of in
terest and dividend payments, and the
greater part Of this Is expected to be
available for reYnvestment.
Canada's conversion loan has been a
success and Ottawa is much elated.
Moreover, there have been a. number
OF improvements in the general condi-
t1on or government finances of late
which have added considerably to the
Joy at the capital. Revenues have
peen mounting steadily, the National
Railways have produced larger net
earnings and, all in all, something like
hscal revolution seems to be in
FAN~So'' octtleINenC or the govern
ment upon the new head FOR the Ma
tlonal Railways, Sir Henry Thornton.
ma, mas also been step toward clearing
the atmosphere.
The Canadian stock markets have re-
covered partially from their war
scare slump, while greater activity ia
being noticed in the bond market. Pre-
yailing steadiness of this market has
been noteworthy feature of late. al
though the market has been anythin,~
but active. Definite decision on the
part of the government repardine.
the new Federal loan, however. viii
tend to improve sentiment all along
the line. "io"h
lndustrially the outlook is hopeful
Coal production is on the increase. en-
scouraging reports are being heard
from the iron and steel section. al.
though there is still room for improve
ment In that field. with the steel rail
position still rather discourapinr. al
though railway equipment orders seem
imminent. Throughout the countru
distribution of commodities is showinr
good. A"iiiy