AMERICAN FINANCE.

Sun (Christchurch), Volume III, Issue 861, 13 November 1916, Page 8

AMERICAN FINANCE.

POSITION REVIEWED. STATEMENT BY MR H. BEAUCHAMP. PROSPERITY OF CANADA. Press Association. AUCKLAND, November 13. Mr Harold Bcauchamp (chairman of directors of the Bank of New Zealand was a passenger by the Vancouver mail liner Niagara, having returned from a comprehensive tour of America. He says:—"With a view to keeping down the rate of exchange against London, very large quantities of gold were recently transferred from Canada to New York. Canada has been the channel through which has come nearly half of the gold imports to the United States since the close of 1914. Since then the net imports of gold into the United Slates have amounted to over £103,000,000. "The gold which has lately been coming to Canada is understood to be the output of the South African mines. It has been shipped to Canada, and thence sent to the United States. These mines are said to be producing about £BOO,OOO worth of gold per week. They are turning out enough, in other words, to provide a reserve in the United States against credits at the rate of something over £200,000,000 a year. Investments in England.

"Owing to Ihc way in which gold is accumulating in New York, bankers in that city have been unable to find profitable employment for their funds in the United States, and have recently been looking to London for temporary investments. No doubt, British Treasury Bills, yielding 54 per cent, to 6 per cent, per annum, according to the term, would prove tempting when the rate for call money to-day in New York is round about 2* per cent, per annum, with small demand. World's Money Centre.

"Temporarily at least, New York, as the money centre of the world, has taken the place of London, but as the result of observations and conversations I had with leading bankers, I incline to the opinion that London will regain her principal supremacy within measurable distance from the close of the/ war. Meanwhile, having regard to the wonderful expansion in exports from the United States to Great Britain, and to other countries, one does not wonder at the amazing growth in wealth of America, and of New York in particular."

Windfall for Canada. The particularly healthy financial, industrial and economic position of the Dominion of Canada was the subject of interesting comment by Mr Beauchamp. He said:—"Owing to enormous orders placed in Canada by the British Government for munitions of war, added to the high prices of all descriptions of produce, the country, especially on the eastern side of the continent, is in a condition of amazing prosperity. For the 12 months ended May, 1916, Canada's trade grew by £100,000,000. This expansion was due to the increase in volume and in value of exports, for imports for the period under review exhibited a marked decline in value. . The total value of exports and imports amounted to £312,446,000. The value of exports aggregated £164,000,000 as against £86,400,000 in 1915, and £71,600,000 in 1913. Of the exports, £103,600,000 worth went to Great Britain, as compared with £36,000,000 for 1915, whilst the purchases of the United Stales increased from £33,400,000 in 1915 to £67,400,000 in 1916. There was also an increase in France's buying from £600,000 to £7,400,000 Imports dropped from £89,400,000 for the year before the war to £64,200,000 —the chief decrease being in imports from England, which fell from £28,600,000 before the war to £17,200,000. Financial Institutions. "Further evidence of Canada's prosperity is reflected in the Julystatement of the chartered banks. Savings deposits, notwithstanding the drain of a domestic war, last autumn were £23,620,000 higher than at the end of July, 1914, and the demand for deposits was £17,020,000 greater. The aggregate deposits with banks were £214,262,200, an increase of £40,625,000, while in the same period commercial loans contracted by £20,030,000." The Recruiting Outlook. Dealing with Canada's active participation in the war, Mr Beauchamp said: —"1 think I am right in suggesting thai when I left Canada last month, Ihe limit of recruiting under the voluntary system had been practically reached. The Prime Minister was at that lime making strong appeals for more men to fill the gaps caused by recent heavy casualties, lie urged the Leader of the Opposition (Sir Wilfrid Laurier) to sink all parly differences" and to agree to Ihc selling up of a General Parliamentary Committee to consider whal steps should be taken to enable Canada to continue regular contributions of men. To Ihe surprise and disappointment .of British Canada Sir Wilfrid Laurier declined this invitation, so that now the whole responsibility in connection with Ihe mailer will rest with Ihe Government. The necessity for compulsory i military service is gravely apparent, but if an attempt were made lo pass an Act lo give effect to it, it would he strenuously—and I fear successfully—opposed by the French Canadians."