Evening star., 1929-12-13
CANADIAN TRADE
WITH u. S. GROWS
Former Finance Minister Be-
IieVeS Present Volume
Will Be Enlarged.
BY JOHN F. SINCLAIR.
cial Dispatch to The Star,

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, December 13-Sir
Thomas White Of Toronto, vice presi-
dent Of the Canadian Bank Of Com
merce and former finance minister of
the Canadian government, speaking
before the Association of Life Insur-
| ance Presidents yesterday, made this
| statement.
'It is a remarkable fact that Canada
with its 10 millions of population
| buys more from the United States than
| any of the great nations of the world.
| Last year we bought from you goods
to the value of $900,000,000. On the
| other hand, the United States bought
| from Canada commodities to the value
of $500, 100000"
Sir Thomas was optimistic about
| Canada9s future relationship with the
United States, as all Canadian business
men are. Fifteen years ago'he advised
Americans to play more, sleep more and
| eat less, but he advised along other
| lines yesterday.
American life insurance companies
10 years ago had only $100,000,00o in
vested in Canada. Today they have
more than three times that amount
Canadian life insurance companies, on
the other hand, have more than $780,
000, 900 invested in the United States.
Life insurance in force in the United
States, issued by Canadian companies,
aggregates more than $1,000,0o0, 900.
The plea of this business leader was
for closer social, business and finan-
cial relationship between the United
States and Canada-more frequent con-
ferences, more social intercourse, more
travel in both directions, less restric-
finY1-0pd 1ffc ctr tn
ternational peace and prosperity for
both nations.
1t was an address which every Amer
lean should read.
Two central banks of Europe reduced
their discount rates yesterday. The
Bank of England rate was cut from
512 to per cent and the same reduc-
| ton took place in the Bank Of Sweden.
The British credit situation has eased
off considerably since the recent ship
ments of gold from South Africa and
| Australia to Great Britain. France,
too, has lightened up on its demand
for gold from England.
The reduction in the Bank OF Eng
land rate Is the third cut made within
the last two months. The first reduc-
ton was on october 81, following the
| stock market break in New York, when
the rate was reduced from 6Iz to
per cent. On November 81 another cut
from 6 per cent to 51s took place.
These cuts reflect worldwide I'M
provement in credit conditions, for the
money rates are showing declines in
| all places. The European central banks
| which have already lowered their rates
since the stock market drop in New
York to date are those of Holland,
Belgium, Hungary, Rumania, Germany,
Ireland, Poland, Sweden, Norway and
Great Britain.
1t takes time to correct the world
situation, but conditions In the held
of world credit have greatly improved
in the last two months.
Prof. Gustav CaSSel of Sweden has
come out as champion Of the credit
policy of the Federal Reserve SYSTEM
which has proved to be correct"
Prof. CasSel is one of the great eco
nomists of Europe. He advised the
Soviet government, after the old Rus
sian ruble had gone to pieces, just what
to do to stabilize its currency
And so the cherwonetz (ten gold
rubles) came into existence. From that
day to this (seven years ago) the Rus
sian currency has been one of the most
stable in Europe.
While this Swedish economist believes
the attempt Of the Federal Reserve Ito
regulate the Stock Exchange has failed
in the most manifest manner" the Fed
eral Reserve did the big job which had
to be done.
1t succeeded in restricting its supply
of means Of payment that an enhance
ment of the general level Of prices has
been avoided"
1t is the greatest achievement in the
fiscal history OF nations, Prof. CaSSel
believes. In fact, it is the first time in
economic history that central bank
has means of payment so completely
under its control that 1t is perfectly
able to prevent rising tide of industrial
prosperity from causing any imitation Of
the currency"
Coming from one of the worlds great
economists. this opinion will be appre-
ciated by those who have endorsed the
credit policy Of the Federal Reserve.
BENJAMIN M. Anderson, economist,
Chase National Bank of New York, sums
up the present situation in picturesque
way when he says:
I'VE have fallen down a hill, and we
find ourselves bruised and scratched
and with our nerves unstrung. But no
bones are broken and there are no in
ternal injuries. We are perfectly able
to get up and walk"
But he does say that we shouldn't
try to run very fast Immediately, but
should quiet down bit, study the sign
posts and pick out safe roads to follow.
Everybody now asks the question
what was the immediate cause Of the
stock market crash?
This economist replies: ID Foreign
selling in. New York stocks induced
largely by the HAIRY failure in London;
90 the long overdue increase in the
Bank Of England's rediScount rate; 90
Massachusetts, Supreme Court decision
against the split-up of public utility
shares.
These are sufficient, he thinks. There
are plenty of others that could be
named. But he does not think there
is any point to assigning any particular
cause to a break "long overdue"
But the stock market slaughter Is
over and Mr.. Anderson believes that
the market is now in fighting range. "
And fighting market and two-sided
market is an "immeasurably SAFER
market" than it was two months ago.
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