New-York tribune., 1922-04-02
Canadian Trade Balance FaIlino
Returns for March Are Expected to Wipe Out
Surplus of Exports for the
Fiscal Year

sharp dImInutlon III values for almost
all groups. Pulp and paper exports are
showing considerable strength and the
wood, wood products paper and paper
manufacturers group" is q close second
III value TO agricultural and vegetable
products, mainly foods One years cx-
ports of ''fibers, textiles and textile
products" now represent a lesser value
than did exports in the group for the
! single months of December 1919. or
January. 1920.
( Statistics Of the Dominion's trade are
Of special interest when considered in
relation 10 exchange and Canadian
financing abroad The capital amount
of Canada's known obligations abroad
is no" approximate $4,000 900 600
Interest on public and private debts.
| together with dividends to sident
stocAh olders Of various commercial
undertakings in Canada. amount 10
something like S21o 900 900 annually
| Payments to non Canadian transporta-
! tion, insurance and similar companies,
expenditures Of Canadian tourists
abroad, remittances abroad by imm!
! grants, etc, add probably 100000. .o00
to the total of the so-called invisible
items which must be reckoned with in
cndeaYorng to set out true statement
Of the Dominion's "foreign account
On the other side of the ledger are to
be listed expenditures of United States
tourists in Canada, earnings of Cana
diar transportation companies on
through traffic originating in the
| United States. and money brought IN
by immigrants, which with the other
lesser items aggregate about $50,000,-
OO0 annually. This leaves approximate
ly $275, 100000 which has TO be offset
/ !, g IN,
vestmcnts ct money from abroad in
various other forms. Approximately
one-half Of the Canadian bond issues
last year were placed in the United
, States and the amount so placed prob
ably was not short of $175.000. 600. The
remaining S100,C00,000 is accounted for
by other investments from abroad. pri-
vatc loans, reinvestment in Canada OF
the profits of undertakings controlled
By non-Canadian stockholders, and
various other items. The premium on
United States funds in the main repre-
scnts the added nducement which has
, to De offered TO attract sufficient in
vestment in Canadian securities un
dertaking to balance the international
account.
The Improvement in the relation be
/ tween exports and imports has been
factor Of considerable Importance in
keeping Canadian funds within a few
points of parity during recent weeks.
Forecasts are dangerous, inasmuch as
they may be falsified by developmen
which have not been reckoned with, but
few Of the factors which will have q
bearing on exchange between the
! United States and Canada during the
next few months can be analyzed. The
larger items among Canadian exports,
I excluding pulp and paper, are seasonal
in character, and if trade follows the
usual course imports into Canada will
more than balance exports to a con-
siderable extent until next October.
Such excess Of imports may be offset,
however, by the expectation of Ca
madam securities, and there is no in
dication that as yet the saturation
point has been reached in the aosorp-
ton Of Canadian securities by United
States investors. On the other hand,
large amounts Of money are likely to
be "imported" into Canada to assist in
the development of the natural re-
sources, particularly the mineral de
posits. of the Dominion. No official
announcement has yet been made as to
the new loan which will have to be is
sued by the Canadian government this
year. and details probably have no.
been decided upon even tentatively, but
financial men here expect that por-
ton OF the money required Will be
raised in the United States