_In Canadian Trade and Finance_
(From Reports of the Union Bank)
THE Canadian official record shows that the increase of wholesale
prices of all commodities reached in May, 1920, over the average
prices of the year 1913, was 163 per cent, and that, as between the
figures for May and December, a decline of almost fifteen per cent.
was recorded. The decline was especially noticeable in the prices for
grains, fresh vegetables, breadstuffs, tea, coffee and sugar; certain
items in the textile group--cotton, silks and jutes, also show declines.
_Canada's Volume of Trade Increases Half Billion_
Notwithstanding the fact that an adverse balance will be shown for the
first time since the outbreak of the war, the year 1920 was a record
one so far as the total trade of Canada is concerned. Statistics for
the twelve months ending October, 1920 (the latest figures available),
show that the total volume of trade amounted to $2,603,423,987, an
increase of $500,000,000 as compared with the previous twelve months'
period. The unfortunate feature, however, is the excess of imports
amounting to more than seventy-five million dollars, which compares
with a favorable balance of about three hundred and fifty millions for
the twelve months ending October, 1919. Practically the whole of the
half billion dollar increase in the total volume of trade is due to the
growth of our imports for our export increase amounted to approximately
only eleven million dollars. The important feature of the statistics is
the record of our buying and selling with the United Kingdom and the
United States. Compared with last year, our imports from the United
Kingdom have increased to the extent of nearly one hundred fifty
millions.
_Canadian Banking System Demonstrates Merit_
On account of the fact that practically all the business of Canada
is transacted through its banks, the Canadian Banking System enjoys
a unique position compared with the systems of other countries, and
accordingly the statement of the Chartered Banks of Canada for the year
ending October, 1920, reflects better than any other medium, the actual
business condition of this country.
[Illustration: _LOADING the boats at an H.B.C. inland post. The start
of a long journey to the great auction market in London._]
_Banks Curtailed Credit to Stabilize Business_
Much has been said and written in criticism of the policy of the banks
in curtailing credit, but there is not the least doubt that the present
comparatively favorable condition of Canada is due in good part to the
continuous pressure that has been exercised by the banks, throughout
the year, to restrict advances.
Notwithstanding this effort on the part of the banks, current loans are
higher by three hundred million dollars than they were a year ago. If a
conservative policy had not been adopted, the increase in loans would
have been considerably greater; as it stands, the increase is balanced
by a corresponding decrease in holdings of Government securities,
acquired originally in connection with the Dominion and Imperial
Governments' war financing, and now redeemed.
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