Evening star., 1928-06-05
CANADA ASKSU.S.
FOR MONEY
Requests Dominion Currency
Be Accepted at Par With
sf American Dollar.
NJ FREDERIC WILLIAM VILE.


President Cooli6ges impending arrival
n part of the United States only a
few miles from the Canadian border
In northwestern comedies
With movement to introduce Canadian
money into this country on basis of
fun equality With our own coin and
currency.
The project has assumed official form
II was recently presented to the State
Department by William PhillnS Amer
tcan Minister 10 Canada The State
DEPARTMENT being, of course, without
authority to take any sort of attitude
on ths proposition. 1t was "unofficially'
brought to the attention of the United
States Chamber Of Commerce.
Secretary Kellogg's position appears
t. Be that If American Business men as
n matter Of courtesy toward the Do
In their 6ay~by-day transactions II
would be matter entirely for them To
decide.
Proposed by L. s. Business Men.
The proposal emanates. it is under
stood. from American business men resi-
dent in Canada II springs from the
belief that il would be the finest kind
oi an inter- American gesture Of friend
snip" between the two countries If
Canadian money we're 70 be accepted in
the United States as freely as American
money has long been accepted III the
Dominion.
In some of the regions adjacent TO
the border there has never been much
objection to traffic in Canadian cCin
end currency. but the United States al
large has always looked q bit askance
at the idea of taking them freely in all
parts of the country The Treasury
Department is opposed On principle to
any use of foreign money, adhering
strictly to the theory that the only
medium Of exchange that should be
recognized on American soil is the dol
lar and its constituent parts To le-
galize the recognition of non-American
money would call for an act Of Con-
greSs. II is exceedingly doubtful wlleth-
er the Government would ever favor
such legislation or Congress pass it.
Conditions Contras.ed-
The Canadian dollar is nowadays
frequently quoted above par in the
United states. while the American dol
lar on the other side of the border is
often quoted below par These condi-
Of American cash that finds its way In
an incesSant stream into Canada
There is not only the item of our big
import trade with the Dominion. large
II made up of wood pulp for our paper
Industry. but there is also the con-
sfantly rising tide of American tourist
frafrc. The latter. especially in -
Summer and Autumn months. reaches
q point which represents a very con-
siderable source Of revenue for Canada.
Less IS said about another Canadian
gold mine of American origin - the
sims spent for liquor IN the Dominion
especially Quebec-bUt ii is an open
secret that it IS RESPONSIBLE for q IA
entry in Canada's balance of trade"
with its thirsty neighb0r TO the south
Tourist Traffic a Factor.
The Department Of Commences re-
cent publication. entitled The Balance
o. International Payments Of the United
States in 1927" devoted conspicuous
space to American tourist traffic over
The Canadian border. In 1925 Cana
dian Official figures showed tf1at p
0Is.255 American cars crossed into
Canada
Other official statistics revealed that
American motor tourists are estimated
70 have spent in Canada In 1926 si05.-
TT GOO. or an average per car Of about
s5I. The Canadian provinces. III which
huszor IS sold under more or IeSs re-
s.Tacteo cugloitions-Tlasre!y. Ontario
and Quebec-were the regions In which
fi1e overwhelming amount Of Yankee
Tourist dollars vas spent.
In addition to the sI05 900 900 round
n left behind hT motor travellers. our
Department of Commerce Tcckors that
an extra $40 ono 900 r0undly was spent
ber visitors who vent 10 Canada bv rail
cr steamer In other words the Ameri-
car tourist trade Is worth close TO
$500 0oo 600 year 70 the Dominion.
Plea 10 T.. s. Commerce Chamber.
The finance division Of the United
Etates Chamber 0f Commerce. according
10 a9rd sent 10 Can2aa. viii b. asked
To hold sonae B04t of referendum
su1cng its constituent b3dtes and MEM
bers. and sound tnem oilt on the pro-
posaI 70 p0palarize Canadian money in
this country.
The assent Of American banks would
primarily be necessary. Some business
faeuses and banking concerns I'm citics
ike New York and Detroit are already
syshe habit Of accepting Canadian cur
reDcw IN large transactions without
Ggsbble But there is no precedent
whatever for any wholesale Use Of for
ekgr money on level Of equality with
os5Y 0wn. A practical difficulty would
bs the unfanail!arIty Of the bank or
business man sn the smaller interior
places with Canadian cash ard cor
responding reluctance 20 take it as Free
taken.
f(sess,qesysas 1ans