and industries around Sault Ste. Marie. The coal industry of Nova Scotia and the great steel works of Sydney have been built through American enterprise. American promoters have obtained franchises to develop the Canadian side of the Niagara Falls. It was American effort that accomplished the greater part of the development of the Klondike. Half of the great mining industry of British Columbia may be said to belong to United States capital. Two of Canada's leading industries-timber and lumberare considered to be pre-eminently the development of United States capital. A considerable number of agricultural plants and warehouses have been established by American capital throughout the agricultural areas of Canada. Generally it may be said that as investors the people of the United States have had a great deal to do with the remarkable development of natural resources, agricultural production and production of minerals which has taken place in Canada.

Mr. H. P. Willis, formerly secretary of the Federal Reserve Board, is authority for the statement that the total American investments in Canada prior to the war amounted to more than $600,000,000. The war greatly stimulated American investments in Canada which, according to the best estimates, have nearly doubled during the last four years, reaching the prodigious sum of $1,272,850,000, and distributed as follows:

There are five hundred branch firms of American industries located in Canada. These branches are usually well provided with working capital and will undoubtedly continue to contribute much to the development and strengthening of industry in Canada.

One of the most effective ways in which the United States has contributed to the economic development of Canada has been through the movement to western and northwestern Canada of agricultural settlers who have been very influential in the development of the great wheat growing section of the Dominion. During the fifteen years before the war the total number of persons entering Canada from the United States was 1,014,000, while the number of people entering the United States from Canada was 431,000, indicating a net gain to Canada of 583,000 immigrants. Besides being an economic asset to the country as producers of wealth, these immigrants brought with them a considerable amount of wealth, amounting to $192 per immigrant, or a total of $195,000,000 for this fifteen-year period.

CANADA'S INVESTMENTS IN THE UNITED STATES

United States investment in Canada brought as a natural consequence some Canadian investment in the United States; but this never grew to any great proportions, as Canadian capital was lured away from foreign fields by the attractive opportunities naturally offered by a country so young and undeveloped. For the most part, Canadians showed interest in private corporation holdings, as, for instance, United States Steel Corporation stock, of which the total Canadian holdings in 1914 were $7,892,000. It seems hardly likely that there has been any marked accumulation of American securities in Canada of late, for the need of conserving capital in that country has compelled the Minister of Finance to discourage foreign investment.

After the declaration of war by the United States, and the Government's entrance upon a policy to conserve capital for war purposes, it was not so easy for other countries to borrow in our open market. This naturally had its bearing on the financial situation in Canada and it seemed as if the United States market was practically closed to Canadian offerings. It appears, however, that the United States Government had placed contracts amounting to $125,000,000 with Canadian munition concerns, and that Great Britain has utilized $400,000,000 of the credit advanced by the United States Government to Great Britain since April, 1917, for the payment of goods that Great Britain has purchased from Canada.

It will be seen that these sums have practically approximated the annual borrowings of Canada from other countries, except for the abnormal year 1917.

INCREASE IN FINANCIAL RELATIONS

As has been indicated, the increase in financial relations between Canada and the United States has been an outgrowth of conditions concomitant with the war, and the question may be raised whether in the future there will be a tendency for these financial relations to become permanent. In this connection there are certain considerations which would indicate that after the declaration of peace the financial relations between the two countries should become more important than they were before the outbreak of the present war.

As has been pointed out, one of the important factors in the relations between Canada and the United States has been the movement of peoples between the two countries. Such movements always tend to bring nations closer together in trade and financial relationship. One of the important economic results of the present world war will probably be an increase in the movement of peoples between countries, and it is not unlikely that the great Canadian northwest will be further developed by the sturdy men of our great Middle West who have had their spirit of adventure quickened, and naturally the opportunities of this region will make an appeal to them.

THE SPIRIT OF ADVENTURE

In 1914 the combination of economic forces of the world was preparing for the development of new areas. With the world war quickening the spirit of adventure in man and tending to break down the barriers that had tended to prevent the free movement of peoples between countries, and with the pressure to increase the world's supply of foodstuffs and raw materials, it is probable that in the long term swing, after the declaration of peace, the undeveloped areas of the world will experience a development the magnitude of which we are not able today to gauge. Canada, with her abundance of raw materials, her large forest wealth, her large areas of agricultural land awaiting development, will undoubtedly attract men and capital.