Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-20
III. S. INDUSTRY DUPLICATED
ACROSS CANADIAN BORDER
Investment in Plants and Developments
as Well as Securities of Northern
Neighbor Exceed $3,5OO,OOO,OOO.

Canada receive a lower scale OF duties
than those coming In direct from the
United States. The automobile and
accessory industries are examples of
| industries which especially benefit from
these treaties, not only with the other
parts of the empire, but also with some
of the other 43 countries with which the
Dominion has preferential tariffs.
The need for large quantities Of raw
materials has resulted in the establish
ment by American capital Of huge pulp
and paper, waterpower and mining con-
Germs in the more remote parts of the
Dominion. Asbestos, aluminium, cop
per, nickel, pulpwood are the main re-
sources which are being developed by
huge American concerns In the Cana
dian hinterland.
Canadian government statistics show
that the pulp. paper and lumber in
terests controlled by American capital
amount to $485 $780, 900. Similarly it
shows that S5l5, 000, 900 is invested in
figures include the vast timber hold
ings of the newsprint industry, and big
mines In the hinterland where the raw
material Is mined, for shipment to re-
fineries and factories in the United
States and Canada. But the figures do
not include the tens of millions sunk
into hydroelectric developments at the
which make the natural resources de-
velopment so economically feasible.
The pulp paper and newsprint In
dustry Is the most important manufac-
turing industry in Canada. The Do
minion leads the world as producer
of newsprint and an exporter of that
commodity. Eighty-four per cent Of
her exports In this line go annually to
the United States. Department Of Com
merce estimates show that at least half
the newsprint used in the presses
of American publishers comes from
Canada, while probably half the In
dustry is controlled by American cap
ital. This huge industry is due to the
rapidly dwindling supply in the United
States, the lower cost Of production in
Canada, as well as the abundance Of
forbidding the expectation of pulp
wood and the free importation of news
print into the United States.
Similarly, mining development has
meant the establishment of entire
towns in the remote parts of the coun-
try Railways have been built and
millions of horsepower In electricity
developed. Practically the entire sup
ply of asbestos and nickel used in the
United States comes from American
owned mines In Canada. Aluminium.
copper and gypsum are other minerals
largely controlled by American COM
panies operating subsidiaries In Canada.
During the past few years nearly
so per cent Of government, provincial
and other Canadian bonds have been
bought In New York. During the war
years, when Canada needed money and
turned for the first time TO the United
States, rather than to Great Britain,
American financiers began to see the
possibilities of buying Canadian bond
issues This buying has continued
steadily since that time, the United
States participating in all issues to
only comparatively smaller degree
than Canadians.
Bond Purchases Large.
Figures of a leading Canadian bond
house show that since 1925 there have
been bond sales totaling $3,543, BOT ,813
up to the end Of 1890. OF this amount
Canada took $1,790, 158,676, the United
sr.>~~ Bought 1852 ,144,304 and Great
Britain took the remainder of $101,-
504,833. That goes to show that the
investment territory for American
money.
Canadian government figures show
that the United States has invested
In Canadian government securities, in
GLIDING provincial and municipal. the
huge sum Of $758.o75 900, while Cana
dian railways are subscribed to by a
little less American capital. amounting
to $685., 1884, 900. Other public utilities,
including traction, light, heat, power,
telephone and other utilities, have an
American investment Of 1926, ITO, 900.
Lands, mortgages, insurance and sim
| liar investments in Canada total more
| than S160,000,000.
This movement Of American capital
to build up industries in Canada is q
logical development of an industrial
nation. To use the words of Secretary
| Of Commerce r. P. LAMONT in his re-
| port on branch factories abroad, pre-
sented to the United States Senate
/ early In 1881, this movement is init
! mately connected with the general in
| dustrial development Of the United
| States"