Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-15
TOURIST TRADE UP
IN CANADA IN JULY.
Bank Manager Also Says
Construction Work Better
During Last Month.
apecial pispateh g rne star.

Special Dispatch TO The Star.
OTTAWA, August 15.--"Tourist trade
IN Canada showed marked increase in
July over the preceding months. which,
together with the slight rise in con-
struction work, Offset, at least in part,
the continued decline in industrial
operations, mining and foreign trade
during the month. These develop
ments are mainly seasonal, although
the influence Of international events
and Of crop. damage In the prairie
provinces can also be recognized. The
prospect of comparatively small grain
crops in the West seems to have
screened some favorable elements" &C
cording 20 s. H. Logan, general man
ager Of the Canadian Bank Of Com
merce.
"The industrial decline has now ex-
tended to the point where factory and
mill production is at the lowest level
since 1926. A sharp drop in the out
put of steel and automobiles and OF
automobile materials is in contrast with
a small reduction in newsprtnt and
with comparative steadiness in certain
secondary industries, such as footwear
and textiles; there are as well In
creases in the production OF those
manufacturers whose greatest activity
Is IGeAh
OF that group which. with advantages
in the way of location and low costs,
is able to- satisfy the needs OF the
buying public at prices commensurate
with It's present purchasing power.
June Exports Drop.
~while exports Of Canadian products
IN June were somewhat less than those
Of May and preliminary reports indi-
In 1ft1u there
was a still greater contraction in i'm
ports" continued Mr.. Logan. with
the result that for the first time since
December, 1880, and on one of the
few occasions since the beginning OF
the present depression, there was a
favorable visible balance. In view of
the large external debt Of Canada and
of the corresponding large interest pay
meilts that have to be made on foreign
investments IN Canada, some further
remarks on foreign trade may be Of
interest Allowing for price fuctua-
tons there las been decline OF IL
per cent in exports and Of % per cent
In imports during the first six months
of 1881, as compared with the corre-
spending period of 1880, and the un-
favorable visible balance Is much less
than 1t was year ago, 1900, 600 In
comparison with Sill 100000.
Inefe are Important ulYlSiDle lteIflS
IN a country's foreign trade balance
sheet, the two most important in the
case OF Canada being, on one side, the
service on the external debt, amounting
to about $310,000,000, but partly offset
hy interest etc, on Canadian invest
meYats abroad estimated at SOC, 100000
and, on the other, the net balance on
tourist trade, which in 1880 was about
$166, 900 900. the expenditures Of visi-
tors to Canada being reported as S27e,-
000, 900 and those of Canadian visitors
to other countries as $4,000, 900. It
will be seen, therefore, that tourist ex-
penditures contribute substantially to
the fund for external debt service.
Reports Encouraging.
at is too early to come to any def
mite conclusion as to the results of
tourist trade this year, but some en-
ccuraging reports have been received,
from both of1cial quarters and the
banks branches, as TO the number of
visitors increases are recorded at sew
eral points,, although there is, as was
the case IN 1880, the qualifying factor
that individual expenditures are on
smaller scale The external debt serv-
ice also depends largely upon grain
exports. While this years grain crops
will be short, they will, with the adolf
ton Of abnormally heavy carry-overs
from the crops of previous years, pro-
vide for practically normal exportable
gurpllses