Salt Lake Tribune | 1919-12-14 | Page 26 | Canada Affected

CANADA AFFECTED. The English pound, the German mark and tho French franc are not the only money units to suffer from the demoralization de-moralization of exchange. The ex-tnemely ex-tnemely unstable condition of the market mar-ket and the rapid fluctuations of discount dis-count rates have seriously affected the Canadian dollar. So deeply concerned aro Canadian government and business interests at tho unfavorable exchange rates with the United States that extraordinary ex-traordinary measures are being adopted adop-ted by Ottawa to meet the situation. To reduce the -exchange rate to more nearly normal the Dominion government govern-ment has shipped to New York $20,-000,000 $20,-000,000 in gold and is preparing to send double that amount. The government hopes with the lifting of the embargo on Canadian wheat on December 15 to sell to the United States hard wheat to the value of $50,000,000, which, with the gold shipments, will equalize trade between Canada and its neighbor for nearly six months, at the end of which tine something like stability iu the money market is expected. In the meantime, Canadian importers are being be-ing urged to reduce purchases in the United States of everything except essential es-sential raw materials. Many contracts for American goods, Ottawa and Montreal Mon-treal dispatches say, aro being canceled. can-celed. Another and unusual step is the stoppage of money orders to tho United States. The Dominion postoffice department de-partment officials authorized this action ac-tion following a conference with the heads of the ministry of finance. The cancellation of money orders is the direct di-rect outcome of tho present, rates of exchange for the Canadian, dollar. It is an unprecedented action. And it is not to be confused with the order made some months ago that no more postal notes were to be issued on tho United States. It means that there aro no means of sending money from Canada to this country except by bills in registered reg-istered Letters, which entails a heavier discount on this side of the international interna-tional boundary.